Document:

EXHIBIT 4.5

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                                  CWHEQ, INC.
                                   Depositor

                        [COUNTRYWIDE HOME LOANS, INC.]
                          Sponsor and Master Servicer

                    CWHEQ REVOLVING HOME EQUITY LOAN TRUST,
                                 SERIES 200_-_
                                   the Trust

                        ------------------------------

                               Indenture Trustee

                       --------------------------------

                         SALE AND SERVICING AGREEMENT

                          Dated as of _________, 200_

                       --------------------------------

                 REVOLVING HOME EQUITY LOAN ASSET BACKED NOTES

                                 SERIES 200_-_

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                                           Table of Contents

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                                               ARTICLE I
                        DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

<S>           <C>                                                                             <C>
Section 1.01. Definitions...........................................................................1
Section 1.02. Other Terms...........................................................................1
Section 1.03. Rules of Construction.................................................................1
Section 1.04. Interest Calculations.................................................................1

                                              ARTICLE II
                              CONVEYANCE OF MORTGAGE LOANS; TAX TREATMENT

Section 2.01. Conveyance of Mortgage Loans; Retention of Obligation to Fund Advances Under Credit
               Line Agreements......................................................................3
Section 2.02. Acceptance by Indenture Trustee.......................................................6
Section 2.03. Representations, Warranties, and Covenants Regarding the
               Master Servicer......................................................................7
Section 2.04. Representations and Warranties of the Sponsor Regarding the Mortgage Loans;
               Retransfer of Certain Mortgage Loans.................................................8
Section 2.05. Covenants of the Depositor...........................................................11
Section 2.06. Transfers of Mortgage Loans at Election of Transferor................................12
Section 2.07. Tax Treatment........................................................................13
Section 2.08. Representations and Warranties of the Depositor......................................14

                                              ARTICLE III
                            ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

Section 3.01. The Master Servicer..................................................................14
Section 3.02. Collection of Certain Mortgage Loan Payments;
               Establishment of Accounts...........................................................18
Section 3.03. Deposits to Payment Account..........................................................19
Section 3.04. Maintenance of Hazard Insurance; Property Protection Expenses........................19
Section 3.05. Assumption and Modification Agreements...............................................20
Section 3.06. Realization Upon Defaulted Mortgage Loans; Repurchase of Certain
               Mortgage Loans......................................................................20
Section 3.07. Indenture Trustee to Cooperate.......................................................22
Section 3.08. Servicing Compensation; Payment of Certain Expenses by
               Master Servicer.....................................................................23
Section 3.09. Annual Statement as to Compliance....................................................23
Section 3.10. Annual Servicing Report..............................................................23
Section 3.11. Access to Certain Documentation and Information Regarding the
               Mortgage Loans......................................................................24

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Section 3.12. Maintenance of Certain Servicing Insurance Policies..................................24
Section 3.13. Reports to the Securities and Exchange Commission....................................24
Section 3.14. Tax Treatment........................................................................25
Section 3.15. Information Required by the Internal Revenue Service Generally and Reports of
               Foreclosures and Abandonments of Mortgaged Property.................................25

                                              ARTICLE IV
                                         SERVICING CERTIFICATE

Section 4.01. Servicing Certificate................................................................25
Section 4.02. Acknowledgement and Cooperation......................................................28
Section 4.03. Optional Advances of the Master Servicer.............................................28
Section 4.04. Statements to Noteholders............................................................28

                                               ARTICLE V
                          THE MASTER SERVICER, THE SPONSOR, AND THE DEPOSITOR

Section 5.01. Liability of the Sponsor, the Master Servicer, and the Depositor.....................30
Section 5.02. Merger or Consolidation of, or Assumption of the Obligations of, the
               Master Servicer or the Depositor....................................................31
Section 5.03. Limitation on Liability of the Master Servicer and Others............................31
Section 5.04. Master Servicer Not to Resign........................................................31
Section 5.05. Delegation of Duties.................................................................32
Section 5.06. Indemnification by the Master Servicer...............................................32

                                              ARTICLE VI
                                         SERVICING TERMINATION

Section 6.01. Events of Servicing Termination......................................................33
Section 6.02. Indenture Trustee to Act; Appointment of Successor...................................35
Section 6.03. Notification to Noteholders and the Transferor.......................................36

                                              ARTICLE VII
                                              TERMINATION

Section 7.01. Termination..........................................................................36

                                             ARTICLE VIII
                                       MISCELLANEOUS PROVISIONS

Section 8.01. Amendment............................................................................37
Section 8.02. Governing Law........................................................................38
Section 8.03. Notices  38
Section 8.04. Severability of Provisions...........................................................39
Section 8.05. Assignment...........................................................................39

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Section 8.06. Third-Party Beneficiaries............................................................40
Section 8.07. Counterparts.........................................................................40
Section 8.08. Effect of Headings and Table of Contents.............................................40

EXHIBIT A - MORTGAGE LOAN SCHEDULE................................................................A-1
EXHIBIT B - LETTER OF REPRESENTATIONS.............................................................B-1
EXHIBIT C - FORM OF REQUEST FOR RELEASE...........................................................C-1
ANNEX 1        DEFINITIONS....................................................................ANN-1-1
ANNEX 2        ADOPTION ANNEX.................................................................ANN-2-1

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         This SALE AND SERVICING AGREEMENT, dated as of ________, 200_, among
CWHEQ, Inc., as depositor, [COUNTRYWIDE HOME LOANS, INC.] as sponsor and
master servicer, CWHEQ REVOLVING HOME EQUITY LOAN TRUST, SERIES 200_-_, and
__________________, as Indenture Trustee,

                                WITNESSETH THAT

         The parties agree as follows.

                                  ARTICLE I
            DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

         Section 1.01. Definitions.

         Unless the context requires a different meaning, capitalized terms
are used in this Agreement as defined in Annex 1.

         Section 1.02. Other Terms.

         Capitalized terms used in this Agreement that are not otherwise
defined have the meanings given to them in the Indenture. Defined terms that
are used only in one section or only in another definition may be omitted from
the list of defined terms in Annex 1. Defined terms used in this Agreement are
sometimes defined after their first use without a reference such as "(as
hereinafter defined)."

         Section 1.03. Rules of Construction.

         Except as otherwise expressly provided in this Agreement or unless
the context clearly requires otherwise:

         (a) Defined terms include, as appropriate, all genders and the plural
as well as the singular.

         (b) References to designated articles, sections, subsections,
exhibits, and other subdivisions of this Agreement, such as "Section 6.12
(a)," refer to the designated article, section, subsection, exhibit, or other
subdivision of this Agreement as a whole and to all subdivisions of the
designated article, section, subsection, exhibit, or other subdivision. The
exhibits and other attachments to this Agreement are a part of this Agreement.
The words "herein," "hereof," "hereto," "hereunder," and other words of
similar import refer to this Agreement as a whole and not to any particular
article, section, exhibit, or other subdivision of this Agreement.

         (c) Any term that relates to a document or a statute, rule, or
regulation includes any amendments, modifications, supplements, or any other
changes that may have occurred since the document, statute, rule, or
regulation came into being, including changes that occur after the date of
this Agreement. References to law are not limited to statutes. References to
statutes include any rules or regulations promulgated under them by a
governmental authority charged

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with the administration of the statute. Any reference to any person includes
references to its successors and assigns.

         (d) Any party may execute any of the requirements under this
Agreement either directly or through others, and the right to cause something
to be done rather than doing it directly shall be implicit in every
requirement under this Agreement. Unless a provision is restricted as to time
or limited as to frequency, all provisions under this Agreement are implicitly
available from time to time.

         (e) The term "including" and all its variations mean "including but
not limited to." Except when used in conjunction with the word "either," the
word "or" is always used inclusively (for example, the phrase "A or B" means
"A or B or both," not "either A or B but not both").

         (f) A reference to "a [thing]" or "any [of a thing]" does not imply
the existence or occurrence of the thing referred to even though not followed
by "if any," and "any [of a thing]" is any and all of it. A reference to the
plural of anything as to which there could be either one or more than one does
not imply the existence of more than one (for instance, the phrase "the
obligors on a note" means "the obligor or obligors on a note"). "Until
[something occurs]" does not imply that it must occur, and will not be
modified by the word "unless." The word "due" and the word "payable" are each
used in the sense that the stated time for payment has passed. The word
"accrued" is used in its accounting sense, i.e., an amount paid is no longer
accrued. In the calculation of amounts of things, differences and sums may
generally result in negative numbers, but when the calculation of the excess
of one thing over another results in zero or a negative number, the
calculation is disregarded and an "excess" does not exist. Portions of things
may be expressed as fractions or percentages interchangeably. The word "shall"
is used in its imperative sense, as for instance meaning a party agrees to
something or something must occur or exist.

         (g) All accounting terms used in an accounting context and not
otherwise defined, and accounting terms partly defined in this Agreement, to
the extent not completely defined, shall be construed in accordance with
generally accepted accounting principles in the United States. To the extent
that the definitions of accounting terms in this Agreement are inconsistent
with their meanings under generally accepted accounting principles, the
definitions in this Agreement shall control. Capitalized terms used in this
Agreement without definition that are defined in the Uniform Commercial Code
of the relevant jurisdiction are used in this Agreement as defined in that
Uniform Commercial Code.

         (h) In the computation of a period of time from a specified date to a
later specified date or an open-ended period, the words "from" and "beginning"
mean "from and including," the word "after" means "from but excluding," the
words "to" and "until" mean "to but excluding," and the word "through" means
"to and including." Likewise, in setting deadlines or other periods, "by"
means "on or before." The words "preceding," "following," and words of similar
import, mean immediately preceding or following. References to a month or a
year refer to calendar months and calendar years.

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         (i) Any reference to the enforceability of any agreement against a
party means that it is enforceable against the party in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, and other
similar laws of general applicability relating to or affecting creditors'
rights and to general equity principles.

         Section 1.04. Interest Calculations.

         All calculations of interest on the Asset Balance of a Mortgage Loan
under this Agreement are on a daily basis using a 365-day year. All
calculations of interest on the Notes are on the basis of the actual number of
days in an Interest Period and a year of 360 days. The calculation of the
Servicing Fee is on the basis of a 360-day year consisting of twelve 30-day
months. All dollar amounts calculated under this Agreement are rounded to the
nearest cent with one-half of one cent being rounded down.

                                  ARTICLE II
                  CONVEYANCE OF MORTGAGE LOANS; TAX TREATMENT

         Section 2.01. Conveyance of Mortgage Loans; Retention of Obligation
to Fund Advances Under Credit Line Agreements.

         (a) Concurrently with the execution and delivery of this Agreement,
the Depositor hereby transfers to the Trust without recourse (subject to
Sections 2.02 and 2.04) all of its right, title, and interest in

                  (i) each Mortgage Loan, including its Asset Balance
         (including all Additional Balances), the related Mortgage File, all
         property that secures the Mortgage Loan, and all collections received
         on it after the Cut-off Date (excluding payments due by the Cut-off
         Date);

                  (ii) property that secured a Mortgage Loan that is acquired
         by foreclosure or deed in lieu of foreclosure;

                  (iii) the Depositor's rights under the Purchase Agreement;

                  (iv) the Depositor's rights under the hazard insurance
         policies;

                  (v) all rights under any guaranty executed in connection
         with a Mortgage Loan;

                  (vi) all other assets included or to be included in the
         Trust for the benefit of the Noteholders and the Credit Enhancer; and

                  (vii) all proceeds of the foregoing.

This transfer to the Trust is to the Owner Trustee, on behalf of the Trust,
and each reference in this Agreement to this transfer shall be construed
accordingly. In addition, by the Closing Date, the Depositor shall cause the
Credit Enhancer to deliver the Policy to the Indenture Trustee for the benefit
of the Noteholders.

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         (b) Reserved.

         (c) Additional Balances; Future Fundings. Additional Balances shall
be part of the Asset Balance and are hereby transferred to the Trust on the
Closing Date pursuant to this Section 2.01, and therefore are part of the
Trust property. Neither the Owner Trustee nor the Trust nor the Indenture
Trustee assumes the obligation under any Credit Line Agreement that provides
for the funding of future advances to the mortgagor under it, and neither the
Trust nor the Owner Trustee nor the Indenture Trustee may fund these future
advances.

         (d) Delayed Delivery. In connection with the transfer under Section
2.01(a) by the Depositor, the Depositor shall effect delivery of the Mortgage
Loan Schedule to the Trust and the Indenture Trustee by the Closing Date and
delivery of the Mortgage Files to the Trust, and the Trust shall deliver them
to the Indenture Trustee,

                  (i) no later than the Closing Date, with respect to no less
         than [50]% of the Mortgage Loans in each Loan Group,

                  (ii) no later than the [twentieth] day after the Closing
         Date, with respect to no less than [40]% of the Mortgage Loans in
         each Loan Group in addition to those delivered on the Closing Date,
         and

                  (iii) within [thirty] days following the Closing Date, with
         respect to the remaining Mortgage Loans.

         In lieu of delivery of original documentation, the Depositor may
deliver documents that have been imaged optically on delivery of an opinion of
counsel to the Indenture Trustee and the Credit Enhancer that the imaged
documents are enforceable to the same extent as the originals and do not
impair the enforceability of the transfer to the Trust of the Mortgage Loans,
if the retention of the imaged documents in the delivered format will not
result in a reduction in the then current rating of the Notes without regard
to the Policy.

         (e) Mark Records. The Sponsor hereby confirms to the Owner Trustee
and the Indenture Trustee, on behalf of itself and any other Seller, that each
Seller has caused the portions of the Electronic Ledgers relating to the
Mortgage Loans to be clearly and unambiguously marked, and has made the
appropriate entries in its general accounting records, to indicate that the
Mortgage Loans have been transferred to the Trust at the direction of the
Depositor. The Master Servicer hereby confirms to the Owner Trustee and the
Indenture Trustee that it has clearly and unambiguously made appropriate
entries in its general accounting records indicating that those Mortgage Loans
constitute part of the Trust and are serviced by it on behalf of the Trust in
accordance with this Agreement.

         (f) UCC Filings. The Depositor and the Trust agree (subject to
Section 2.01(h)) to effect any actions and execute any documents necessary to
perfect and protect the Trust's, the Indenture Trustee's, the Noteholders',
and the Credit Enhancer's interests in each Cut-off Date Asset Balance and
Additional Balances and their proceeds, including filing all necessary
Continuation Statements for the UCC1 Financing Statements filed in the State
of Delaware (which shall have been filed by the Closing Date) describing the
Cut-off Date Asset Balances and Additional Balances and naming the Depositor
as debtor and the Trust as secured party or

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naming the Trust as debtor and the Indenture Trustee as secured party and any
amendments to UCC1 Financing Statements required to reflect a change in the
UCC or in the name or organizational structure of the Depositor or the Trust
or the filing of any additional UCC1 Financing Statements due to the change in
the state of organization of the Depositor or the Trust (within 30 days of any
event necessitating the filing).

         (g) Sponsor Rating Downgrade. If the long term senior unsecured
corporate debt rating of [Countrywide Home Loans, Inc.] falls below "[BBB]" by
[Standard & Poor's] or "[Baa2]" by [Moody's] as promptly as practicable but in
any case within 90 days of the event, the Master Servicer shall, at its
expense, either

                  (x) request that the Indenture Trustee deliver to it the
         original Assignment of Mortgage previously delivered to the Indenture
         Trustee pursuant to Section 2.01(d) and then record the Assignment of
         Mortgage in favor of the Indenture Trustee (which may be a blanket
         assignment if permitted by applicable law) in the appropriate real
         property or other records,

                  (y) deliver to the Indenture Trustee an Opinion of Counsel
         addressed to the Indenture Trustee and the Credit Enhancer to the
         effect that recording is not required to protect the Indenture
         Trustee's interest in the related Mortgage Loan or, in case a court
         should recharacterize the sale of the Mortgage Loans as a financing,
         to perfect a first priority Security Interest in favor of the
         Indenture Trustee in the related Mortgage Loan, which Opinion of
         Counsel also shall be reasonably acceptable to each of the Rating
         Agencies (as evidenced in writing) and the Credit Enhancer, or

                  (z) cause the MERS(R) System to indicate (and provide
         evidence to the Indenture Trustee that it has done so) that the
         Mortgage Loans have been assigned by the Trust to the Indenture
         Trustee in accordance with this Agreement for the benefit of the
         Noteholders and the Credit Enhancer by including (or deleting, in the
         case of Mortgage Loans that are repurchased in accordance with this
         Agreement) in the MERS computer files (a) the appropriate code that
         identifies the Indenture Trustee in the field for identifying the
         assignee and (b) the appropriate code that has been assigned to
         identify the Notes to the MERS(R) System in the field "Pool Field"
         identifying the Notes issued in connection with the Mortgage Loans.

         (h) Sale Treatment. Notwithstanding the characterization of the Notes
as debt of the Transferor for federal, state, and local income and franchise
tax purposes, the transfer of the Mortgage Loans is a sale by each Seller to
the Depositor and by the Depositor to the Trust of all of each Seller's and
then all the Depositor's interest in the Mortgage Loans and other property
described above. From the time the Notes are issued until such time as all or
a portion of the Notes are sold to one or more unaffiliated parties, each
Seller will report the transfer of the Mortgage Loans and the related
Additional Balances to the Depositor as a transfer of assets in exchange for
beneficial interests in the form of asset-backed securities and servicing
rights. If the transfer were to be characterized as a transfer for security
and not as a sale, however, then the Depositor hereby grants to the Trust a
Security Interest in all of the Depositor's right, title,

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and interest in the Mortgage Loans whether existing now or in the future, all
monies due or to become due on the Mortgage Loans, and all their proceeds; and
this Agreement shall constitute a Security Agreement under applicable law.

         Section 2.02. Acceptance by Indenture Trustee.

         (a) On the Closing Date, the Custodian shall execute and deliver to
the Depositor, the Master Servicer, and the Sponsor (with a copy to the Credit
Enhancer) the Initial Certification pursuant to the Custodial Agreement. If
Mortgage Loans have been delivered after the Closing Date pursuant to Section
2.01(e), the Custodian shall execute and deliver to the Depositor, the Master
Servicer, and the Sponsor (with a copy to the Credit Enhancer) a Delay
Delivery Certification pursuant to the Custodial Agreement within the period
specified in the Custodial Agreement. Within 180 days after the Closing Date,
Custodian shall deliver to the Depositor, the Master Servicer, and the Sponsor
(with a copy to the Credit Enhancer) a Final Certification pursuant to the
Custodial Agreement. The Sponsor shall correct any defect noted in the Final
Certification within 90 days of its receipt.

         (b) Upon the satisfaction of the requirements of Section 2.07, all
interest of the Trust in a Mortgage Loan shall automatically be retransferred
without recourse, representation, or warranty to the Sponsor and the Asset
Balance of the Mortgage Loan shall be deducted from the Loan Group Balance of
the related Loan Group, if

                  (i) the Indenture Trustee does not receive the Mortgage File
         for any Mortgage Loan as required by Section 2.01(d),

                  (ii) the time to correct any defect in the Mortgage Loan
         noted on the Final Certification has expired,

                  (iii) the Trust ever incurs any loss on the Mortgage Loan
         because any document in its Mortgage File is defective, or

                  (iv) an Assignment of Mortgage to the Indenture Trustee has
         not been recorded in accordance with Section 2.01(g) and the Mortgage
         Loan is not registered on the MERS(R) System.

         Subject to the prior satisfaction of the requirements of Section
2.07, the Owner Trustee shall execute any documents of transfer presented by
the Sponsor, without recourse, representation, or warranty, and take any other
actions reasonably requested by the Sponsor to effect the transfer by the
Trust of the Defective Mortgage Loan pursuant to this Section as promptly as
practical.

         The sole remedy of the Noteholders, the Transferor, the Owner
Trustee, the Indenture Trustee, and the Credit Enhancer against the Sponsor
for the transfer of a Defective Mortgage Loan to the Trust is the Sponsor's
obligation to accept a transfer of a Defective Mortgage Loan and to convey an
Eligible Substitute Mortgage Loan or to make a deposit of any Transfer Deposit
Amount into the Collection Account in accordance with Section 2.07.

         Promptly following the transfer of any Defective Mortgage Loan from
the Trust pursuant to this Section or Section 2.07, the Master Servicer shall
amend the Mortgage Loan

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Schedule, deliver the amended Mortgage Loan Schedule to the Indenture Trustee,
and make appropriate entries in its general account records to reflect the
transfer. Following the retransfer, the Master Servicer shall appropriately
mark its records to indicate that it is no longer servicing the Mortgage Loan
on behalf of the Trust. The Sponsor shall appropriately mark its Electronic
Ledger and make appropriate entries in its general account records to reflect
the transfer promptly following the transfer.

         (c) The Sponsor shall deliver to the Indenture Trustee any documents
required to be held by the Indenture Trustee in accordance with Section 2.01
with respect to any Eligible Substitute Mortgage Loans. The Master Servicer
shall determine the Transfer Deposit Amount in any Collection Period during
which the Sponsor substitutes Eligible Substitute Mortgage Loans and the
Sponsor shall deposit that amount in the Collection Account at the time of
substitution. All amounts received on the Eligible Substitute Mortgage Loans
during the Collection Period in which the circumstances giving rise to their
transfer to the Trust occur shall not be a part of the Trust and shall not be
deposited by the Master Servicer in the Collection Account. All amounts
received on a removed Defective Mortgage Loan during the Collection Period in
which the circumstances giving rise to its transfer to the Trust occur shall
be a part of the Trust and shall be deposited by the Master Servicer in the
Collection Account. An Eligible Substitute Mortgage Loan will be subject to
the terms of this Agreement in all respects when transferred to the Trust, and
the Sponsor hereby makes the representations, warranties, and covenants in
Section 2.04 with respect to the Eligible Substitute Mortgage Loan as of the
date of substitution.

         (d) The Custodian shall retain possession of each Mortgage File on
behalf of the Indenture Trustee in accordance with the Custodial Agreement.
The Master Servicer shall promptly deliver to the Indenture Trustee the
originals of any other documents constituting the Mortgage File coming into
its possession on their execution or receipt. Any documents to be delivered to
the Indenture Trustee under this Agreement may be delivered to the Custodian
acting on behalf of the Indenture Trustee.

         Section 2.03. Representations, Warranties, and Covenants Regarding
the Master Servicer.

         The Master Servicer represents and warrants to the Indenture Trustee
and the Credit Enhancer that as of the Closing Date:

                  (i) The Master Servicer is a New York corporation, validly
         existing and in good standing under the laws of the State of New
         York, and has the corporate power to own its assets and to transact
         the business in which it is currently engaged. The Master Servicer is
         duly qualified to do business as a foreign corporation and is in good
         standing in each jurisdiction in which the character of its business
         or any properties owned or leased by it requires such qualification
         and in which the failure so to qualify would have a material adverse
         effect on the business, properties, assets, or condition (financial
         or other) of the Master Servicer.

                  (ii) The Master Servicer has the power and authority to
         make, execute, deliver, and perform this Agreement and all of the
         transactions contemplated under this

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         Agreement, and has taken all necessary corporate action to authorize
         the execution, delivery, and performance of this Agreement. When
         executed and delivered, this Agreement will constitute a valid and
         legally binding obligation of the Master Servicer enforceable in
         accordance with its terms.

                  (iii) The Master Servicer is not required to obtain the
         consent of any other party or any consent, license, approval or
         authorization from, or registration or declaration with, any
         governmental authority, bureau, or agency in connection with the
         execution, delivery, performance, validity, or enforceability of this
         Agreement, except for consents, licenses, approvals or
         authorizations, or registrations or declarations that have been
         obtained or filed, as the case may be, before the Closing Date.

                  (iv) The execution, delivery, and performance of this
         Agreement by the Master Servicer will not violate any existing law or
         regulation or any order or decree of any court applicable to the
         Master Servicer or the certificate of incorporation or bylaws of the
         Master Servicer, or constitute a material breach of any mortgage,
         indenture, contract, or other agreement to which the Master Servicer
         is a party or by which the Master Servicer may be bound.

                  (v) No litigation or administrative proceeding of or before
         any court, tribunal, or governmental body is currently pending, or to
         the knowledge of the Master Servicer threatened, against the Master
         Servicer or any of its properties or with respect to this Agreement,
         the Indenture, or the Notes that in the opinion of the Master
         Servicer has a reasonable likelihood of resulting in a material
         adverse effect on the transactions contemplated by the Transaction
         Documents.

                  (vi) If any Mortgage Loan has been registered on the MERS(R)
         System, the Master Servicer is a member of MERS in good standing.

         The Master Servicer covenants that it will fully furnish, in
accordance with the Fair Credit Reporting Act and its implementing
regulations, accurate and complete information (i.e., favorable and
unfavorable) on its credit files for the related Mortgagor for each Mortgage
Loan to Equifax, Experian, and Trans Union Credit Information Company on a
monthly basis.

         The representations, warranties, and covenants in this Section shall
survive the transfer of the Mortgage Loans to the Trust. Upon discovery of a
breach of any representation, warranty, or covenant that materially and
adversely affects the interests of the Transferor, the Noteholders, or the
Credit Enhancer, the person discovering the breach shall give prompt notice to
the other parties and to the Credit Enhancer. The Master Servicer shall cure
in all material respects any breach of any representation, warranty, or
covenant within 90 days of becoming aware of it or, with the consent of a
Responsible Officer of the Indenture Trustee, any longer period specified in
the consent.

         Section 2.04. Representations and Warranties Regarding the Mortgage
Loans; Retransfer of Certain Mortgage Loans.

         (a) The Sponsor by this reference repeats and incorporates in this
Agreement each representation and warranty made by it (as a Seller) in Section
3.02(a) of the Purchase Agreement (other than Section 3.02(a)(1) and (2)) to
the Indenture Trustee, the Trust, and the

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Credit Enhancer and, in addition, represents and warrants to the Indenture
Trustee, the Trust, and the Credit Enhancer that as of the Cut-off Date,
unless specifically stated otherwise:

                  (i) As of the Closing Date (or, with respect to any Eligible
         Substitute Mortgage Loan, the applicable date of substitution) this
         Agreement constitutes a valid and legally binding obligation of the
         Sponsor, enforceable against the Sponsor in accordance with its
         terms.

                  (ii) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), either

                           (A) the Purchase Agreement constitutes a valid
                  transfer to the Depositor of all right, title, and interest
                  of the Sellers in the Mortgage Loans, all collections
                  received from the Mortgage Loans after the Cut-off Date
                  (excluding payments due by the Cut-off Date), all proceeds
                  of the Mortgage Loans, and any funds from time to time
                  deposited in the Collection Account and in the Payment
                  Account and all other property specified in Section 2.01(a)
                  or (b), as applicable, and this Agreement constitutes a
                  valid transfer to the Trust of the foregoing property such
                  that, on execution of this Agreement, it is owned by the
                  Trust free of all liens and other encumbrances, and is part
                  of the corpus of the Trust conveyed to the Trust by the
                  Depositor, and upon payment for the Additional Balances, the
                  Purchase Agreement and this Agreement will constitute a
                  valid transfer to the Trust of all right, title, and
                  interest of the Sellers in the Additional Balances, all
                  monies due or to become due on them, all proceeds of the
                  Additional Balances, and all other property specified in
                  Section 2.01(a) relating to the Additional Balances free of
                  all liens and other encumbrances, or

                           (B) the Purchase Agreement or this Agreement, as
                  appropriate, constitutes a Grant of a Security Interest to
                  the Owner Trustee on behalf of the Trust in the property
                  described in clause (A) above and the Indenture constitutes
                  a Grant of a Security Interest to the Indenture Trustee in
                  the Collateral. The Indenture Trustee has a first priority
                  perfected Security Interest in the Collateral, subject to
                  the effect of Section 9-315 of the UCC with respect to
                  collections on the Mortgage Loans that are deposited in the
                  Collection Account in accordance with the next to last
                  paragraph of Section 3.02(b), and if this Agreement
                  constitutes the Grant of a Security Interest in the property
                  described in clause (A) above to the Trust, the Trust has a
                  first priority perfected Security Interest in the property,
                  subject to the same limitations. This Security Interest is
                  enforceable as such against creditors of and purchasers from
                  the Trust, the Depositor, and each Seller.

         (b) If the substance of any representation and warranty in this
Section made to the best of the Sponsor's knowledge or as to which the Sponsor
has no knowledge is inaccurate and the inaccuracy materially and adversely
affects the interest of the Trust, the Noteholders, or the Credit Enhancer in
the related Mortgage Loan then, notwithstanding that the Sponsor did not

                                      9
<PAGE>

know the substance of the representation and warranty was inaccurate at the
time the representation or warranty was made, the inaccuracy shall be a breach
of the applicable representation or warranty.

         (c) The representations and warranties in this Section shall survive
the transfer and assignment of the Mortgage Loans to the Issuer and the
delivery of the respective Mortgage Files to the Custodian pursuant to the
Custodial Agreement and the termination of the rights and obligations of the
Master Servicer pursuant to Section 5.04 or 6.02. If the Sponsor, the
Depositor, the Master Servicer, the Credit Enhancer, or a Responsible Officer
of the Indenture Trustee discovers a breach of any of the foregoing
representations and warranties, without regard to any limitation concerning
the knowledge of the Sponsor, that materially and adversely affects the
interests of the Trust, the Indenture Trustee under the Indenture, the
Noteholders, or the Credit Enhancer in the Mortgage Loan, the party
discovering the breach shall give prompt notice to the other parties and the
Credit Enhancer.

         (d) The Sponsor shall use all reasonable efforts to cure in all
material respects any breach (other than a breach of the representation and
warranty in Section 2.04 by virtue of the repetition of Section 3.02(a)(5) of
the Purchase Agreement) within 90 days of becoming aware of it or, not later
than the Business Day before the Payment Date in the month following the
Collection Period in which the cure period expired (or any later date that the
Indenture Trustee and the Credit Enhancer consent to), all interest of the
Trust in the Defective Mortgage Loan shall, subject to the satisfaction of the
requirements of Section 2.07, automatically be retransferred without recourse,
representation, or warranty to the Sponsor and the Asset Balance of the
Mortgage Loan shall be deducted from the Loan Balance.

         The cure for any breach of a representation and warranty relating to
the characteristics of the Mortgage Loans in the related Loan Group in the
aggregate shall be a repurchase of or substitution for only the Mortgage Loans
necessary to cause the characteristics to comply with the related
representation and warranty.

         Subject to the prior satisfaction of the requirements of Section
2.07, the Owner Trustee shall execute any documents of transfer presented by
the Sponsor, without recourse, representation, or warranty, and take any other
actions reasonably requested by the Sponsor to effect the transfer by the
Trust of the Defective Mortgage Loan pursuant to this Section as promptly as
practical.

         Promptly following the transfer of any Defective Mortgage Loan from
the Trust pursuant to this Section, the Master Servicer shall amend the
Mortgage Loan Schedule, deliver the amended Mortgage Loan Schedule to the
Indenture Trustee, and make appropriate entries in its general account records
to reflect the transfer. Following the retransfer, the Master Servicer shall
appropriately mark its records to indicate that it is no longer servicing the
Mortgage Loan on behalf of the Trust. The Sponsor shall appropriately mark its
Electronic Ledger and make appropriate entries in its general account records
to reflect the transfer promptly following the transfer.

         (e) The sole remedy of the Noteholders, the Indenture Trustee on
behalf of Noteholders, the Owner Trustee, and the Credit Enhancer against the
Sponsor for the breach of

                                      10
<PAGE>

a representation or warranty other than the representation and warranty in
Section 2.04(a) by virtue of the repetition of Section 3.02(a)(5) of the
Purchase Agreement) is the Sponsor's obligation to accept a transfer of a
Mortgage Loan as to which a breach has occurred and is continuing and to make
any required deposit in the Collection Account or to substitute an Eligible
Substitute Mortgage Loan.

         (f) If the representation and warranty in Section 2.04(a) by virtue
of the repetition of Section 3.02(a)(5) of the Purchase Agreement is breached,
the transfer of the affected Mortgage Loans to the Trust shall be void and the
Sponsor shall pay to the Trust the sum of (i) the amount of the related Asset
Balances, plus accrued interest on each Asset Balance at the applicable Loan
Rate to the date of payment and (ii) the amount of any loss or expense
incurred by the Transferor, the Noteholders, the Trust, or the Credit Enhancer
with respect to the affected Mortgage Loans. The Indenture Trustee may enforce
the Sponsor's obligations under this Section in its own right or as the owner
of the Trust's right to seek enforcement as the assignee of the Trust's rights
under this Agreement pursuant to the Indenture.

         (g) A breach of any one of the representations in Sections
3.02(a)(58) to (65) of the Purchase Agreement will be considered to materially
adversely affect the interests of the Noteholders.

         (h) The Sponsor shall defend and indemnify the Indenture Trustee, the
Owner Trustee, the Credit Enhancer, and the Noteholders against all reasonable
costs and expenses, and all losses, damages, claims, and liabilities,
including reasonable fees and expenses of counsel and the amount of any
settlement entered into with the consent of the Sponsor (this consent not to
be unreasonably withheld), that may be asserted against or incurred by any of
them as a result of any third-party action arising out of any breach of a
representation and warranty.

         Section 2.05. Covenants of the Depositor.

         The Depositor covenants that:

         (a) Security Interests. Except for the transfer under this Agreement,
the Depositor will not transfer any Mortgage Loan to any other person, or
create or suffer to exist any Lien on any Mortgage Loan or any interest in
one, whether existing now or in the future; the Depositor will notify the
Indenture Trustee of the existence of any Lien on any Mortgage Loan
immediately on its discovery; and the Depositor will defend the right, title,
and interest of the Trust in the Mortgage Loans, whether existing now or in
the future, against all claims of third parties claiming through the
Depositor. Nothing in this Section shall prohibit the Depositor from suffering
to exist on any Mortgage Loan any Liens for municipal or other local taxes and
other governmental charges if the taxes or governmental charges are not due at
the time or if the Depositor is contesting their validity in good faith by
appropriate proceedings and has set aside on its books adequate reserves with
respect to them.

         (b) Negative Pledge. The Depositor shall not transfer or grant a
Security Interest in the Transferor Certificates except in accordance with
Section 3.10 of the Trust Agreement.

         (c) Additional Indebtedness. So long as the Notes are outstanding the
Depositor will not incur any debt other than debt that (i) is non-recourse to
the assets of the Depositor

                                      11
<PAGE>

other than the mortgage loans specifically pledged as security for the debt,
(ii) is subordinated in right of payment to the rights of the Noteholders, or
(iii) is assigned a rating by each of the Rating Agencies that is the same as
the then current rating of the Notes.

         (d) Downgrading. The Depositor will not engage in any activity that
would result in a downgrading of the Notes without regard to the Policy.

         (e) Amendment to Certificate of Incorporation. The Depositor will not
amend its Certificate of Incorporation or state of incorporation without prior
notice to the Rating Agencies, the Indenture Trustee, and the Credit Enhancer.

         Section 2.06. Transfers of Mortgage Loans at Election of Transferor.

         Subject to the conditions below, the Transferor may require the
transfer of Mortgage Loans in a Loan Group from the Trust to the Transferor as
of the close of business on a Payment Date (the "Transfer Date"). In
connection with any transfer, the related Allocated Transferor Interest shall
be reduced by the aggregate Asset Balances as of their Transfer Date of the
Mortgage Loans transferred. On the fifth Business Day (the "Transfer Notice
Date") before the Transfer Date designated in the notice, the Transferor shall
give the Owner Trustee, the Indenture Trustee, the Master Servicer, and the
Credit Enhancer a notice of the proposed transfer that contains a list of the
Mortgage Loans to be transferred. These transfers of Mortgage Loans shall be
permitted if the following conditions are satisfied:

                  (i) No Rapid Amortization Event has occurred.

                  (ii) On the Transfer Date, the excess of that Adjusted Loan
         Group Balance of that Loan Group over the Note Principal Balance of
         the related Class of Notes (after giving effect to the removal of the
         Mortgage Loans proposed to be transferred) exceeds the greater of the
         related Minimum Transferor Interest and the related Required
         Transferor Subordinated Amount.

                  (iii) The transfer of any Mortgage Loans from either Loan
         Group on any Transfer Date during the Managed Amortization Period
         shall not, in the reasonable belief of the Transferor, cause a Rapid
         Amortization Event to occur or an event that with notice or lapse of
         time or both would constitute a Rapid Amortization Event.

                  (iv) By the Transfer Date, the Transferor shall have
         delivered to the Indenture Trustee a revised Mortgage Loan Schedule,
         reflecting the proposed transfer and the Transfer Date, and the
         Master Servicer shall have marked the Electronic Ledger to show that
         the Mortgage Loans transferred to the Transferor are no longer owned
         by the Trust.

                  (v) The Transferor shall represent and warrant that the
         Mortgage Loans to be removed from the Trust were selected randomly.

                  (vi) In connection with each transfer of Mortgage Loans
         pursuant to this Section, each Rating Agency and the Credit Enhancer
         shall have received by the related Transfer Notice Date notice of the
         proposed transfer of Mortgage Loans and, before the Transfer Date,
         each Rating Agency shall have notified in writing the Transferor, the
         Indenture Trustee, and the Credit Enhancer that the transfer of
         Mortgage Loans would

                                      12
<PAGE>

         not result in a reduction or withdrawal of its then current rating of
         the Notes without regard to the Policy.

                  (vii) The Transferor shall have delivered to the Owner
         Trustee, the Indenture Trustee, and the Credit Enhancer an Officer's
         Certificate certifying that the items in subparagraphs (i) through
         (vi), inclusive, have been performed or are true, as the case may be.
         The Owner Trustee and the Indenture Trustee may conclusively rely on
         the Officer's Certificate, shall have no duty to make inquiries with
         regard to the matters in it, and shall incur no liability in so
         relying.

         Upon receiving the requisite information from the Transferor, the
Master Servicer shall perform in a timely manner those acts required of it, as
specified above. Upon satisfaction of the above conditions, on the Transfer
Date the Indenture Trustee shall effect delivery to the Transferor the
Mortgage File for each Mortgage Loan being so transferred, and the Indenture
Trustee shall execute and deliver to the Transferor any other documents
prepared by the Transferor reasonably necessary to transfer the Mortgage Loans
to the Transferor. This transfer of the Trust's interest in Mortgage Loans
shall be without recourse, representation, or warranty by the Indenture
Trustee or the Trust to the Transferor.

         Section 2.07. Retransfers and Transfer Deficiencies.

         (a) The Indenture Trustee shall determine if reducing the relevant
Loan Group Balance by the Asset Balance of any retransferred Mortgage Loan
pursuant to Section 2.02(b) or 2.04(d) would cause a Transfer Deficiency for
the related Loan Group. If so, the Indenture Trustee shall notify the Sponsor
of the deficiency, and the Sponsor shall transfer to the Trust within five
Business Days Eligible Substitute Mortgage Loans or deposit into the
Collection Account an amount in immediately available funds equal to the
amount of the Transfer Deficiency reduced by the Asset Balance of any Eligible
Substitute Mortgage Loans transferred to the Trust (the "Transfer Deposit
Amount").

         (b) The Sponsor shall deliver to the Indenture Trustee any documents
required to be held by the Indenture Trustee in accordance with Section 2.01
with respect to any Eligible Substitute Mortgage Loans.

         (c) All amounts received on Eligible Substitute Mortgage Loans during
the Collection Period in which the circumstances giving rise to their transfer
to the Trust occur shall not be a part of the Trust and shall not be deposited
by the Master Servicer in the Collection Account.

         All amounts received on a removed Defective Mortgage Loan during the
Collection Period in which the circumstances giving rise to its transfer to
the Trust occur shall be a part of the Trust and shall be deposited by the
Master Servicer in the Collection Account.

         (d) An Eligible Substitute Mortgage Loan will be subject to the terms
of this Agreement in all respects when transferred to the Trust, and the
Sponsor hereby makes the representations, warranties, and covenants in Section
2.04 with respect to the Eligible Substitute Mortgage Loan as of the date of
its transfer to the Trust.

                                      13
<PAGE>

         (e) Promptly following the transfer of any Eligible Substitute
Mortgage Loan to the Trust pursuant to this Section, the Master Servicer shall
amend the Mortgage Loan Schedule, deliver the amended Mortgage Loan Schedule
to the Indenture Trustee, and make appropriate entries in its general account
records to reflect the transfer. The Sponsor shall appropriately mark its
Electronic Ledger and make appropriate entries in its general account records
to reflect the transfer promptly following the transfer.

         Section 2.08. Tax Treatment.

         The Depositor and the Transferor intend that the Notes will be
indebtedness of the Transferor for federal, state, and local income and
franchise tax purposes and for purposes of any other tax imposed on or
measured by income. The Transferor and the Depositor agree to treat the Notes
for purposes of federal, state, and local income or franchise taxes and any
other tax imposed on or measured by income, as indebtedness of the Transferor
secured by the assets of the Trust and to report the transactions contemplated
by this Agreement on all applicable tax returns in a manner consistent with
this treatment. The Administrator pursuant to the Administration Agreement
will prepare and file all tax reports required under this Agreement on behalf
of the Trust.

         Section 2.09. Representations and Warranties of the Depositor.

         The Depositor represents and warrants to the Indenture Trustee on
behalf of the Noteholders and the Credit Enhancer as follows:

                  (i) This Agreement constitutes a valid and legally binding
         obligation of the Depositor, enforceable against the Depositor in
         accordance with its terms.

                  (ii) Immediately before the sale and assignment by the
         Depositor to the Trust of each Mortgage Loan, the Depositor was the
         sole beneficial owner of each Mortgage Loan (insofar as the title was
         conveyed to it by the Sellers) subject to no prior lien, claim,
         participation interest, mortgage, Security Interest, pledge, charge,
         or other encumbrance or other interest of any nature.

                  (iii) As of the Closing Date, the Depositor has transferred
         all right, title, and interest in the Mortgage Loans to the Trust
         and, as of each applicable date of substitution, the Depositor has
         transferred all right, title, and interest in the Eligible Substitute
         Mortgage Loan to the Trust.

                  (iv) The Depositor has not transferred the Mortgage Loans to
         the Trust with any intent to hinder, delay, or defraud any of its
         creditors.

                                 ARTICLE III
                ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

         Section 3.01. The Master Servicer.

         The Master Servicer shall service and administer the Mortgage Loans
in a manner consistent with the terms of this Agreement and with general
industry practice and shall have full power and authority, acting alone or
through a subservicer, (i) to execute and deliver, on

                                      14
<PAGE>

behalf of the Noteholders, the Trust, and the Indenture Trustee, customary
consents or waivers and other instruments and documents, (ii) to consent to
transfers of any Mortgaged Property and assumptions of the Mortgage Notes and
related Mortgages (but only in the manner provided in this Agreement), (iii)
to collect any Insurance Proceeds and other Liquidation Proceeds, and (iv) to
effectuate foreclosure or other conversion of the ownership of the Mortgaged
Property securing any Mortgage Loan. The Master Servicer shall remain
responsible to the parties to this Agreement and the Credit Enhancer for its
obligations under this Agreement. Any amounts received by any subservicer on a
Mortgage Loan shall be considered to have been received by the Master Servicer
whether or not actually received by it. Without limiting the generality of the
foregoing, the Master Servicer may execute and deliver, on behalf of itself,
the Noteholders, and the Indenture Trustee, or any of them, any instruments of
satisfaction or cancellation, or of partial or full release or discharge, and
all other comparable instruments, with respect to the Mortgage Loans and with
respect to the Mortgaged Properties, in each case to the extent not
inconsistent with this Agreement.

         At the request of a Servicing Officer, the Indenture Trustee shall
furnish the Master Servicer with any powers of attorney and other documents
appropriate to enable the Master Servicer to carry out its servicing and
administrative duties under this Agreement. The Master Servicer in this
capacity may also consent to the placing of a lien senior to that of any
mortgage on the related Mortgaged Property, if

                  (i) the new senior lien secures a mortgage loan that
         refinances an existing first mortgage loan and

                  (ii) either

                           (a) the Loan-to-Value Ratio of the new mortgage
                  loan (without taking into account any closing costs that may
                  be financed by the new mortgage loan) is equal to or less
                  than the Loan-to-Value Ratio of the first mortgage loan to
                  be replaced (for purposes of calculating the Loan-to-Value
                  Ratio, the Valuation of the Mortgaged Property will be
                  measured by the lesser of (A) the Valuation of the Mortgaged
                  Property as of the Cut-off Date and (B) the Valuation of the
                  Mortgaged Property as of the date of the refinancing
                  referenced in clause (i)) or

                           (b) the Combined Loan-to-Value Ratio of the new
                  mortgage loan (without taking into account any closing costs
                  that may be financed by the new mortgage loan) and the
                  existing Mortgage Loan is equal to less than 70% (for
                  purposes of calculating the Combined Loan-to-Value Ratio,
                  the Valuation of the Mortgaged Property will be measured as
                  the lesser of (A) the Valuation of the Mortgage Loan as of
                  the Cut-off Date and (B) the Valuation of the Mortgage Loan
                  as of the date of the refinancing referenced in clause (i)).

The aggregate Asset Balance of all the Mortgage Loans with respect to which
the senior lien may be so modified may not exceed 50% of the Original Note
Principal Balance.

         The Master Servicer may also, without approval from the Rating
Agencies or the Credit Enhancer, increase the Credit Limits on Mortgage Loans
if

                                      15
<PAGE>

                  (i) new appraisals are obtained and the weighted average
         Combined Loan-to-Value Ratios of the Mortgage Loans after giving
         effect to the increase are less than or equal to the weighted average
         Combined Loan-to-Value Ratios of the Mortgage Loans as of the Cut-off
         Date and

                  (ii) the increases are consistent with the Master Servicer's
         underwriting policies.

In addition, the Master Servicer may increase the Credit Limits on Mortgage
Loans having aggregate Asset Balances of up to an additional 5.0% of the
Original Note Principal Balance, if

                           (w) the increase does not cause the Combined
                  Loan-to-Value Ratio of the Mortgage Loans in the related
                  Loan Group to exceed 80%,

                           (x) the increase in the Credit Limit of a Mortgage
                  Loan does not cause the Combined Loan-to-Value Ratio of the
                  Mortgage Loan to exceed 100%,

                           (y) the increase in the Credit Limit of a Mortgage
                  Loan does not cause the Combined Loan-to-Value Ratio of the
                  Mortgage Loan to increase by more than 25% (for example, a
                  Combined Loan-to-Value Ratio of 50% can be increased to 75%,
                  a Combined Loan-to-Value Ratio of 60% can be increased to
                  85%, and so forth), and

                           (z) the increase is consistent with the Master
                  Servicer's underwriting policies.

         Furthermore, the Sponsor, without prior approval from the Rating
Agencies or the Credit Enhancer, may solicit mortgagors for a reduction in
Loan Rates. The Loan Rates of Mortgage Loans in a Loan Group having Asset
Balances at the time of the proposed modification that aggregate over time not
more than 5.0% of the related Original Note Principal Balance may be subject
to reduction. If a mortgagor notifies the Sponsor or the Master Servicer that
it wants a reduction in Loan Rate, the Sponsor shall purchase the Mortgage
Loan from the Trust as described below. Effective immediately on the same
Business Day on which the Sponsor delivers the Purchase Price for the relevant
Mortgage Loan to the Master Servicer, all interest of the Trust in the
relevant Mortgage Loan shall automatically be transferred and assigned to the
Sponsor and all benefits and burdens of ownership of the relevant Mortgage
Loan, including the right to accrued interest on it from the date of purchase
and the risk of default on the Mortgage Loan, shall pass to the Sponsor.

         The Master Servicer shall promptly deliver to the Indenture Trustee a
certification signed by a Servicing Officer to the effect that all of the
requirements for a purchase of a Mortgage Loan in connection with a request by
a mortgagor for a reduction in Loan Rate have been satisfied with respect to
the relevant Mortgage Loan. The Sponsor shall deliver the Purchase Price for
the relevant Mortgage Loan to the Master Servicer promptly after a mortgagor
notifies the Sponsor or the Master Servicer that it wants a reduction in Loan
Rate, and the Master Servicer shall deposit the Purchase Price for the
modified Mortgage Loan in the Collection Account pursuant to Section 3.02
within one Business Day after its receipt of the Purchase Price for the
modified Mortgage Loan. Upon receipt by the Indenture Trustee of

                                      16
<PAGE>

written notification of the deposit signed by a Servicing Officer, the
Indenture Trustee shall release to the Sponsor the related Mortgage File and
shall execute and deliver any instruments of transfer or assignment delivered
to it for execution and reasonably acceptable to it, in each case without
recourse, representation, or warranty, necessary to release the Mortgage Loan
from the lien of the Indenture and vest in the Sponsor the Mortgage Loan
previously transferred and assigned pursuant to this provision. The
certification and written notification of the deposit each from a Servicing
Officer may be delivered to the Indenture Trustee electronically, and to the
extent the transmission originates on its face from a Servicing Officer, need
not be manually signed.

         In addition, the Master Servicer may agree to changes in the terms of
a Mortgage Loan at the request of the mortgagor if the changes (i) do not
materially and adversely affect the interests of Noteholders, the Transferor,
or the Credit Enhancer and (ii) are consistent with prudent and customary
business practice as evidenced by a certificate signed by a Servicing Officer
delivered to the Indenture Trustee and the Credit Enhancer.

         In addition, the Master Servicer may solicit mortgagors to change any
other terms of the related Mortgage Loans if the changes (i) do not materially
and adversely affect the interests of the Noteholders, the Transferor, or the
Credit Enhancer and (ii) are consistent with prudent and customary business
practice as evidenced by a certificate signed by a Servicing Officer delivered
to the Indenture Trustee and the Credit Enhancer. Nothing in this Agreement
shall limit the right of the Master Servicer to solicit mortgagors with
respect to new loans (including mortgage loans) that are not Mortgage Loans.

         The Master Servicer may register any Mortgage Loan on the MERS(R)
System, or cause the removal from registration of any Mortgage Loan on the
MERS(R) System, and execute and deliver, on behalf of the Owner Trustee, any
instruments of assignment and other comparable instruments with respect to the
assignment or re-recording of a mortgage in the name of MERS, solely as
nominee for the Owner Trustee and its successors and assigns.

         For so long as any Mortgage Loan is registered on the MERS(R) System,
the Master Servicer shall maintain in good standing its membership in MERS and
shall comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS. If any Mortgage Loans are registered on the MERS(R) System, the Master
Servicer may cause MERS to execute and deliver an assignment of mortgage in
recordable form to transfer any of the Mortgage Loans registered on the
MERS(R) System from MERS to the Owner Trustee. The Master Servicer shall
promptly notify MERS of any transfer of beneficial ownership or release of any
Security Interest in any MOM Loan.

         The relationship of the Master Servicer to the Trust and the
Indenture Trustee under this Agreement is intended by the parties to be that
of an independent contractor and not that of a joint venturer, partner, or
agent of the Trust or the Indenture Trustee.

         (b) If the rights and obligations of the Master Servicer are
terminated under this Agreement, any successor to the Master Servicer in its
sole discretion may terminate the existing subservicer arrangements with any
subservicer or assume the terminated Master

                                      17
<PAGE>

Servicer's rights under those subservicing arrangements to the extent
permitted by applicable law and the subservicing agreements.

         Section 3.02. Collection of Certain Mortgage Loan Payments;
Establishment of Accounts.

         (a) The Master Servicer shall make reasonable efforts to collect all
payments called for under the Mortgage Loans, and shall follow the collection
procedures it follows for mortgage loans in its servicing portfolio comparable
to the Mortgage Loans, to the extent consistent with this Agreement.
Consistent with the foregoing, and without limiting the generality of the
foregoing, the Master Servicer may in its discretion (i) waive any late
payment charge or any assumption fees or other fees that may be collected in
the ordinary course of servicing the Mortgage Loans and (ii) arrange with a
mortgagor a schedule for the payment of interest due and unpaid if the
arrangement is consistent with the Master Servicer's policies with respect to
the mortgage loans it owns or services. Notwithstanding any arrangement, the
Mortgage Loans will be included in the information regarding delinquent
Mortgage Loans in the Servicing Certificate and monthly statement to
Noteholders pursuant to Section 7.04 of the Indenture.

         (b) The Master Servicer shall establish and maintain a trust account
(the "Collection Account") with the title specified in the Adoption Annex. The
Collection Account shall be an Eligible Account and will initially be
established by the Master Servicer at _______ ______________________________.
The Master Servicer or the Sponsor, as the case may be, shall deposit or cause
to be deposited in the Collection Account within two Business Days following
its receipt the following payments and collections received or made by it
(without duplication):

                  (1) all collections on the Mortgage Loans;

                  (2) the amounts deposited to the Collection Account pursuant
         to Section 4.03;

                  (3) Net Liquidation Proceeds net of any related Foreclosure
         Profit;

                  (4) Insurance Proceeds; and

                  (5) any amounts required to be deposited pursuant to Section
         7.01.

         No other amounts are to be deposited to the Collection Account,
including amounts representing Foreclosure Profits, fees (including annual
fees) or late charge penalties payable by mortgagors, or amounts received by
the Master Servicer for the accounts of mortgagors for application towards the
payment of taxes, insurance premiums, assessments, excess pay off amounts, and
similar items. The Master Servicer shall remit all Foreclosure Profits to the
Sponsor. The Master Servicer may retain, from payments of interest on the
Mortgage Loans in each Loan Group in each Collection Period, the related
Servicing Fee for the Collection Period and any unreimbursed optional advance
with respect to the related Loan Group made by the Master Servicer pursuant to
Section 4.03.

         The Master Servicer may make a net deposit in the Collection Account
of the amounts required by this Section.

                                      18
<PAGE>

         On the Business Day before each Payment Date to the extent on deposit
in the Collection Account, the Master Servicer shall withdraw from the
Collection Account and remit to the Indenture Trustee, the amount to be
applied on that Payment Date by the Indenture Trustee pursuant to Section 8.03
of the Indenture with respect to both Loan Groups, and the Indenture Trustee
will deposit that amount in the Payment Account pursuant to the Indenture.

         The Indenture Trustee shall hold amounts deposited in the Payment
Account as trustee for the Noteholders, the Transferor, and the Credit
Enhancer. In addition, the Master Servicer shall notify the Indenture Trustee
and the Credit Enhancer on each Determination Date of the amount of
collections in the Collection Account to be transferred to the Payment Account
and their allocation to Interest Collections and Principal Collections for the
Mortgage Loans in each Loan Group for the related Payment Date. Following this
notification, the Master Servicer may withdraw from the Collection Account and
retain any amounts that constitute income realized from the investment of the
collections. The Master Servicer will be entitled to receive, as additional
servicing compensation, income earned on the collections in the Payment
Account.

         Amounts on deposit in the Collection Account will be invested in
Eligible Investments maturing no later than the day before the next Payment
Date at the direction of the Master Servicer. All income realized from any
investment in Eligible Investments of funds in the Collection Account shall be
the property of the Master Servicer and may be withdrawn from time to time
from the Collection Account. Any losses incurred on these investments that
reduce their principal amount shall be deposited in the Collection Account by
the Master Servicer out of its own funds immediately as realized.

         Section 3.03. Deposits to Payment Account.

         The Master Servicer shall

                  (i) on the Business Day before each of the first three
         Payment Dates, deposit in the Payment Account any shortfall in the
         amount required to pay the Note Interest on those Payment Dates for
         each Class of Notes resulting solely from the failure of any Mortgage
         Loans to be fully indexed and

                  (ii)on the Business Day before the first Payment Date,
         deposit in the Payment Account for each Loan Group any amounts
         representing payments on, and any collections in respect of, the
         Mortgage Loans in each Loan Group received after the Cut-off Date and
         before the Closing Date (exclusive of payments of accrued interest
         due by the Cut-off Date).

         Section 3.04. Maintenance of Hazard Insurance; Property Protection
Expenses.

         The Master Servicer shall cause to be maintained for each Mortgage
Loan hazard insurance naming the Master Servicer or the related subservicer as
loss payee under it providing extended coverage in an amount that is at least
equal to the lesser of (i) the maximum insurable value of the improvements
securing the Mortgage Loan from time to time or (ii) the combined principal
balance owing on the Mortgage Loan and any mortgage loan senior to the
Mortgage Loan from time to time. The Master Servicer shall also maintain on
property acquired through foreclosure, or by deed in lieu of foreclosure,
hazard insurance with extended coverage in an amount which is at least equal
to the lesser of (i) the maximum insurable value from time to

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<PAGE>

time of the improvements that are a part of the property or (ii) the combined
principal balance owing on the Mortgage Loan and any mortgage loan senior to
the Mortgage Loan at the time of the foreclosure or deed in lieu of
foreclosure plus accrued interest and the good-faith estimate of the Master
Servicer of related Liquidation Expenses to be incurred.

         Amounts collected by the Master Servicer under these policies shall
be deposited in the Collection Account to the extent called for by Section
3.02. The hazard insurance to be maintained for the related Mortgage Loan
shall include flood insurance when the Mortgaged Property is located in a
federally designated flood area. The flood insurance shall be in the amount
required under applicable guidelines of the Federal Flood Emergency Act. No
other insurance need be carried on any Mortgaged Properties pursuant to this
Agreement.

         Section 3.05. Assumption and Modification Agreements.

         When a Mortgaged Property has been or is about to be conveyed by the
mortgagor, the Master Servicer shall exercise its right to accelerate the
maturity of the Mortgage Loan consistent with the then current practice of the
Master Servicer and without regard to the inclusion of the Mortgage Loan in
the Trust. If it elects not to enforce its right to accelerate or if it is
prevented from doing so by applicable law, the Master Servicer (so long as its
action conforms with the underwriting standards generally acceptable in the
industry at the time for new origination) may enter into an assumption and
modification agreement with the person to whom the Mortgaged Property has been
or is about to be conveyed, pursuant to which that person becomes liable under
the Credit Line Agreement and, to the extent permitted by applicable law, the
mortgagor remains liable on it. The Master Servicer shall notify the Indenture
Trustee that any assumption and modification agreement has been completed by
delivering to the Indenture Trustee an Officer's Certificate certifying that
the agreement is in compliance with this Section and by forwarding the
original copy of the assumption and modification agreement to the Indenture
Trustee. Any assumption and modification agreement shall be a part of the
related Mortgage File. No change in the terms of the related Credit Line
Agreement may be made by the Master Servicer in connection with the assumption
to the extent that the change would not be permitted to be made in the
original Credit Line Agreement pursuant to Section 3.01(a). Any fee collected
by the Master Servicer for entering into the assumption and modification
agreement will be retained by the Master Servicer as additional servicing
compensation.

         Section 3.06. Realization Upon Defaulted Mortgage Loans; Repurchase
of Certain Mortgage Loans.

         The Master Servicer shall foreclose or otherwise comparably convert
to ownership Mortgaged Properties securing defaulted Mortgage Loans when, in
the opinion of the Master Servicer based on normal and usual practices and
procedures, no satisfactory arrangements can be made for collection of
delinquent payments pursuant to Section 3.02. Alternatively, the Master
Servicer may forego foreclosure and charge off a defaulted Mortgage Loan if in
the Master Servicer's opinion the proceeds of foreclosure and liquidation are
likely to produce an amount less than the unpaid principal balance of senior
liens on the Mortgaged Property. If the Master Servicer has actual knowledge
or reasonably believes that any Mortgaged Property is affected by hazardous or
toxic wastes or substances and that the acquisition of the Mortgaged

                                      20
<PAGE>

Property would not be commercially reasonable, then the Master Servicer will
not cause the Trust to acquire title to the Mortgaged Property in a
foreclosure or similar proceeding. In connection with foreclosure or other
conversion (or a decision to forego foreclosure and charge off a defaulted
Mortgage Loan), the Master Servicer shall follow the practices and procedures
it deems appropriate and that are normal and usual in its general mortgage
servicing activities, including advancing funds to correct a default on a
related senior mortgage loan. However, the Master Servicer shall not be
required to expend its own funds in connection with any foreclosure or towards
the correction of any default on a related senior mortgage loan or restoration
of any property unless it determines, in its sole discretion, that the
expenditure will increase Net Liquidation Proceeds and the Master Servicer
acts in accordance with the servicing standards in this Agreement.

         If title to any Mortgaged Property is acquired in foreclosure or by
deed in lieu of foreclosure, the deed or certificate of sale shall be issued
to the Indenture Trustee, or to its nominee on behalf of Noteholders. The
Master Servicer shall dispose of the Mortgaged Property as soon as practicable
in a manner that maximizes its Liquidation Proceeds.

         The Master Servicer, in its sole discretion, may purchase for its own
account from the Trust any Mortgage Loan that is 151 days or more delinquent.
The price for any Mortgage Loan purchased shall be 100% of its Asset Balance
plus accrued interest on it at the applicable Loan Rate from the date through
which interest was last paid by the related mortgagor to the first day of the
month in which the purchase price is to be distributed to the Noteholders. The
purchase price shall be deposited in the Collection Account. The Master
Servicer may only exercise this right on or before the penultimate day of the
calendar month in which the Mortgage Loan became 151 days delinquent. Any
delinquent Mortgage Loan that becomes current but thereafter again becomes 151
days or more delinquent may be purchased by the Master Servicer pursuant to
this Section.

         Upon receipt of a certificate from the Master Servicer in the form of
Exhibit C, the Indenture Trustee shall release to the Master Servicer the
related Mortgage File and shall execute and deliver any instruments of
transfer prepared by the Master Servicer, without recourse, necessary to vest
in the purchaser of the Mortgage Loan any Mortgage Loan released to it and the
Master Servicer shall succeed to all the Trust's interest in the Mortgage Loan
and all related security and documents. This assignment shall be an assignment
outright and not for security. The Master Servicer shall then own the Mortgage
Loan, and all security and documents, free of any further obligation to the
Trust, the Owner Trustee, the Indenture Trustee, the Credit Enhancer, the
Transferor, or the Noteholders with respect to it. The certification by the
Master Servicer may be delivered to the Indenture Trustee electronically, and
if it is, its form may differ from Exhibit C so long as it contains the
information required by Exhibit C (that is, the relevant loan number, at least
one of the five reasons for requesting file as found in Exhibit C, and the
acknowledgment that the Mortgage File will be held in accordance with this
Agreement and will promptly be returned to the Indenture Trustee when the need
for it by the Master Servicer no longer exists unless the Mortgage Loan has
been liquidated or retransferred), and to the extent the transmission
originates on its face from a Servicing Officer, need not be manually signed.

                                      21
<PAGE>

         Section 3.07. Indenture Trustee to Cooperate.

         By each Payment Date, the Master Servicer will notify the Indenture
Trustee whenever the Asset Balance of any Mortgage Loan has been paid in full
during the preceding Collection Period. A Servicing Officer shall certify that
the Mortgage Loan has been paid in full and that all amounts received in
connection with the payment that are required to be deposited in the
Collection Account pursuant to Section 3.02 have been so deposited or
credited. Upon payment in full pursuant to Section 3.01, the Master Servicer
is authorized to execute an instrument of satisfaction regarding the related
mortgage, which instrument of satisfaction shall be recorded by the Master
Servicer if required by applicable law and be delivered to the person entitled
to it.

         If the mortgage has been registered on the MERS(R) System, the Master
Servicer shall cause the removal of the mortgage from registration on the
MERS(R) System and execute and deliver, on behalf of the Indenture Trustee and
the Noteholders, any instruments of satisfaction or cancellation or of partial
or full release. No expenses incurred in connection with the instrument of
satisfaction or transfer shall be reimbursed from amounts deposited in the
Collection Account or the Payment Account.

         As appropriate for the servicing or foreclosure of any Mortgage Loan,
or in connection with the payment in full of the Asset Balance of any Mortgage
Loan, upon request of the Master Servicer and delivery to the Indenture
Trustee of a Request for Release substantially in the form of Exhibit C signed
by a Servicing Officer, the Indenture Trustee shall release the related
Mortgage File to the Master Servicer and the Indenture Trustee shall execute
any documents provided by the Master Servicer necessary to the prosecution of
any proceedings or the taking of other servicing actions. The Request for
Release by a Servicing Officer may be delivered to the Indenture Trustee
electronically, and if it is, its form may differ from Exhibit C so long as it
contains the information required by Exhibit C (that is, the relevant loan
number, at least one of the five reasons for requesting file as found in
Exhibit C, and the acknowledgment that the Mortgage File will be held in
accordance with this Agreement and will promptly be returned to the Indenture
Trustee when the need for it by the Master Servicer no longer exists unless
the Mortgage Loan has been liquidated or retransferred), and to the extent the
transmission originates on its face from a Servicing Officer, need not be
manually signed. The Master Servicer shall return the Mortgage File to the
Indenture Trustee when the need for it by the Master Servicer no longer
exists, unless the Mortgage Loan is liquidated, in which case, upon receipt of
a certificate of a Servicing Officer similar to that specified above, the
Request for Release shall be released by the Indenture Trustee to the Master
Servicer.

         To facilitate the foreclosure of the mortgage securing any Mortgage
Loan that is in default following recordation of the assignments of mortgage
in accordance with this Agreement, if so requested by the Master Servicer, the
Indenture Trustee shall execute an appropriate assignment in the form provided
to the Indenture Trustee by the Master Servicer to assign the Mortgage Loan
for the purpose of collection to the Master Servicer or a subservicer. The
assignment shall unambiguously indicate that the assignment is for the purpose
of collection only. The Master Servicer will then bring all required actions
in its own name and otherwise enforce the terms of the Mortgage Loan and
deposit the Net Liquidation Proceeds, exclusive of Foreclosure Profits, in the
Collection Account. If all delinquent payments due

                                      22
<PAGE>

under the Mortgage Loan are paid by the mortgagor and any other defaults are
cured, then the Master Servicer shall promptly reassign the Mortgage Loan to
the Indenture Trustee and return the related Mortgage File to the place where
it was being maintained.

         Section 3.08. Servicing Compensation; Payment of Certain Expenses by
Master Servicer.

         The Master Servicer may retain the Servicing Fee pursuant to Section
3.02 as compensation for its services in servicing the Mortgage Loans.
Moreover, additional servicing compensation in the form of late payment
charges or other receipts not required to be deposited in the Collection
Account (other than Foreclosure Profits) shall be retained by the Master
Servicer. The Master Servicer must pay all expenses incurred by it in
connection with its activities under this Agreement (including payment of all
other fees and expenses not expressly stated under this Agreement to be for
the account of another person) and shall not be entitled to reimbursement
under this Agreement except as specifically provided in this Agreement.
Liquidation Expenses are reimbursable to the Master Servicer

         FIRST, from related Liquidation Proceeds and

         SECOND, from the Payment Account from funds attributable to the
related Loan Group pursuant to Section 8.03(a)(x) of the Indenture.

         Section 3.09. Annual Statement as to Compliance.

         (a) The Master Servicer will deliver to the Indenture Trustee, the
Credit Enhancer, and the Rating Agencies, by the date in each year specified
in the Adoption Annex, beginning on the date specified in the Adoption Annex,
an Officer's Certificate stating that (i) a review of the activities of the
Master Servicer during the preceding fiscal year (or the applicable shorter
period for the first report) and of its performance under this Agreement has
been made under the officer's supervision and (ii) to the best of the
officer's knowledge, based on the review, the Master Servicer has fulfilled
all of its material obligations under this Agreement throughout the fiscal
year, or, if there has been a default in the fulfillment of those obligations,
specifying each default known to the officer and its nature and status.

         (b) Within five Business Days after obtaining knowledge of it, the
Master Servicer shall notify the Indenture Trustee, the Credit Enhancer, and
each of the Rating Agencies of any event that with the giving of notice or the
lapse of time would become an Event of Servicing Termination by delivering an
Officer's Certificate describing the event.

         Section 3.10. Annual Servicing Report.

         By the date in each year specified in the Adoption Annex, beginning
on the date specified in the Adoption Annex, the Master Servicer, at its
expense, shall cause a firm of nationally recognized independent public
accountants (who may also render other services to the Master Servicer) to
furnish a report to the Indenture Trustee, the Credit Enhancer, and each
Rating Agency to the effect that the firm has examined certain documents and
records relating to the servicing of mortgage loans during the most recent
fiscal year then ended under sale and servicing agreements or pooling and
servicing agreements (substantially similar to this Agreement, including this
Agreement), that the examination was conducted substantially in compliance
with the audit guide for audits of non-supervised mortgagees approved by the

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<PAGE>

Department of Housing and Urban Development for use by independent public
accountants (to the extent that the procedures in the audit guide are
applicable to the servicing obligations in those agreements), and that the
examination has disclosed no items of noncompliance with this Agreement that,
in the opinion of the firm, are material, except for the items of
noncompliance described in the report.

         Section 3.11. Access to Certain Documentation and Information
Regarding the Mortgage Loans.

         (a) The Master Servicer shall provide to the Indenture Trustee, the
Credit Enhancer, any Noteholders or Note Owners that are federally insured
savings and loan associations, the Office of Thrift Supervision, successor to
the Federal Home Loan Bank Board, the FDIC, and the supervisory agents and
examiners of the Office of Thrift Supervision access to the documentation
regarding the Mortgage Loans required by applicable regulations of the Office
of Thrift Supervision and the FDIC (acting as operator of the Savings
Association Insurance Fund or the Bank Insurance Fund). The Master Servicer
will provide access without charge but only after reasonable notice and during
normal business hours at the offices of the Master Servicer. Nothing in this
Section shall derogate from the obligation of the Master Servicer to observe
any applicable law prohibiting disclosure of information regarding the
mortgagors and the failure of the Master Servicer to provide access as
provided in this Section as a result of this obligation shall not constitute a
breach of this Section.

         (b) The Master Servicer shall supply the information needed to make
required payments and to furnish required reports to Noteholders and to make
any claim under the Policy, in the form the Indenture Trustee reasonably
requests, to the Indenture Trustee and any Paying Agent by the start of the
Determination Date preceding the related Payment Date.

         Section 3.12. Maintenance of Certain Servicing Insurance Policies.

         The Master Servicer shall during the term of its service as master
servicer maintain in force (i) policies of insurance covering errors and
omissions in the performance of its obligations as master servicer under this
Agreement and (ii) a fidelity bond covering its officers, employees, or
agents. Each policy and bond together shall comply with the requirements from
time to time of Fannie Mae for persons performing servicing for mortgage loans
purchased by Fannie Mae.

         Section 3.13. Reports to the Securities and Exchange Commission.

         The Administrator shall, on behalf of the Trust, effect filing with
the Securities and Exchange Commission of any periodic reports required to be
filed under the Securities Exchange Act of 1934 and the rules and regulations
of the Securities and Exchange Commission under it. At the request of the
Administrator, each of the Sponsor, the Master Servicer, the Depositor, the
Indenture Trustee, and the Transferor shall cooperate with the Administrator
in the preparation of these reports and shall provide to the Indenture Trustee
in a timely manner all information or documentation the Indenture Trustee
reasonably requests in connection with the performance of its obligations
under this Section. The Master Servicer shall prepare, execute, and deliver
all certificates or other documents required to be delivered by the Trust
pursuant to the Sarbanes-Oxley Act of 2002.

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<PAGE>

         Section 3.14. Tax Treatment.

         The Transferor shall treat the Mortgage Loans as its property for all
federal, state, or local tax purposes and shall report all income earned
thereon (including amounts payable as fees to the Master Servicer) as its
income for income tax purposes. The Master Servicer shall prepare all tax
information required by law to be distributed to Noteholders. The Master
Servicer shall not be liable for any liabilities, costs, or expenses of the
Trust, the Noteholders, the Transferor, or the Note Owners arising under any
tax law, including federal, state, or local income and franchise or excise
taxes or any other tax imposed on or measured by income (or any interest or
penalty with respect to any tax or arising from a failure to comply with any
tax requirement).

         Section 3.15. Information Required by the Internal Revenue Service
Generally and Reports of Foreclosures and Abandonments of Mortgaged Property.

         The Master Servicer shall prepare and deliver all federal and state
information reports when and as required by all applicable state and federal
income tax laws. In particular, with respect to the requirement under Section
6050J of the Code for reports of foreclosures and abandonments of any
mortgaged property, the Master Servicer shall file reports relating to each
instance occurring during the previous calendar year in which the Master
Servicer (i) on behalf of the Indenture Trustee acquires an interest in any
Mortgaged Property through foreclosure or other comparable conversion in full
or partial satisfaction of a Mortgage Loan, or (ii) knows or has reason to
know that any Mortgaged Property has been abandoned. The reports from the
Master Servicer shall be in form, substance, and timing sufficient to meet the
reporting requirements imposed by Section 6050J of the Code.

                                  ARTICLE IV
                             SERVICING CERTIFICATE

         Section 4.01. Servicing Certificate.

         Not later than each Determination Date, the Master Servicer shall
deliver (a) to the Indenture Trustee, the data necessary to prepare the items
below and the statement for Noteholders required to be prepared pursuant to
Section 4.04 and (b) to the Indenture Trustee, the Owner Trustee, the Sponsor,
the Depositor, the Paying Agent, the Credit Enhancer, and each Rating Agency a
Servicing Certificate (in written form or the form of computer readable media
or such other form as may be agreed to by the Indenture Trustee and the Master
Servicer), together with an Officer's Certificate to the effect that the
Servicing Certificate is correct in all material respects, stating the related
Collection Period, Payment Date, the series number of the Notes, the date of
this Agreement, and:

                  (i) the aggregate amount of collections received on the
         Mortgage Loans in each Loan Group by the Determination Date for the
         related Collection Period;

                  (ii) the aggregate amount of (a) Interest Collections for
         each Loan Group for the related Collection Period and (b) Principal
         Collections for each Loan Group for the related Collection Period;

                                      25
<PAGE>

                  (iii) the Investor Floating Allocation Percentage and the
         Investor Fixed Allocation Percentage for each Loan Group for the
         related Collection Period;

                  (iv) the Investor Interest Collections and Investor
         Principal Collections for each Loan Group for the related Collection
         Period;

                  (v) the Interest Collections that are not Investor Interest
         Collections and Transferor Principal Collections for each Loan Group
         for the related Collection Period;

                  (vi) the Note Interest and the applicable Note Rate for each
         Class of Notes for the related Interest Period;

                  (vii) the amount of the Note Interest that is not payable to
         the Holders of each Class of Notes because of insufficient Investor
         Interest Collections for the related Loan Group;

                  (viii) the Unpaid Investor Interest Shortfall for each Class
         of Notes and the amount of interest on the shortfall at the
         applicable Note Rate for each Class of Notes applicable from time to
         time (separately stated) to be distributed on the related Payment
         Date;

                  (ix) the remaining Unpaid Investor Interest Shortfall for
         each Class of Notes after the distribution on the related Payment
         Date;

                  (x) the amount of any Basis Risk Carryforward for each Class
         of Notes in the distribution;

                  (xi) the amount of the remaining Basis Risk Carryforward for
         each Class of Notes after giving effect to the related distribution;

                  (xii) the Accelerated Principal Payment Amount and the
         portion of it that will be distributed pursuant to Section
         8.03(a)(vii) of the Indenture for each Loan Group;

                  (xiii) the Scheduled Principal Collections Payment Amount
         for each Loan Group, separately stating its components;

                  (xiv) the amount of any Transfer Deposit Amount for each
         Loan Group paid by the Sponsor or the Depositor pursuant to Section
         2.07;

                  (xv) any accrued Servicing Fees for the Mortgage Loans in
         each Loan Group for previous Collection Periods and the Servicing Fee
         for the related Collection Period;

                  (xvi) the Investor Loss Amount for each Loan Group for the
         related Collection Period;

                  (xvii) the aggregate amount of Investor Loss Reduction
         Amounts for previous Payment Dates that have not been previously
         reimbursed to the Holders of each Class of Notes pursuant to Section
         8.03(a)(iv), Section 8.03(a)(viii), or Section 8.03(c) of the
         Indenture;

                  (xviii) the aggregate Asset Balance of the Mortgage Loans in
         each Loan Group as of the end of the preceding Collection Period and
         as of the end of the second preceding Collection Period;

                                      26
<PAGE>

                  (xix) [Deleted];

                  (xx) the Note Principal Balance for each Class of Notes and
         loan factor after giving effect to the payment on each Class of Notes
         on the related Payment Date and to any reduction because of the
         related Investor Loss Amount;

                  (xxi) the Transferor Interest and the Available Transferor
         Subordinated Amount for each Loan Group after giving effect to the
         distribution on the Payment Date;

                  (xxii) the aggregate amount of Additional Balances created
         on the Mortgage Loans in each Loan Group during the previous
         Collection Period;

                  (xxiii) for each Loan Group, the number and aggregate Asset
         Balances of Mortgage Loans (x) as to which the Minimum Monthly
         Payment is delinquent for 30-59 days, 60-89 days, and 90 or more
         days, respectively and (y) that have become REO, in each case as of
         the end of the preceding Collection Period;

                  (xxiv) whether a Rapid Amortization Event has occurred since
         the prior Determination Date, specifying the Rapid Amortization Event
         if one has occurred;

                  (xxv) whether an Event of Servicing Termination has occurred
         since the prior Determination Date, specifying the Event of Servicing
         Termination if one has occurred;

                  (xxvi) the amount to be distributed to the Credit Enhancer
         pursuant to Section 8.03(a)(vi), Section 8.03(a)(ix), and Section
         8.03(a)(xi) of the Indenture, stated separately;

                  (xxvii) the Guaranteed Principal Payment Amount for each
         Class of Notes for the Payment Date;

                  (xxviii) the Credit Enhancement Draw Amount for each Class
         of Notes for the related Payment Date;

                  (xxix) the amount to be distributed on the Mortgage Loans in
         each Loan Group to the Transferor pursuant to Section 8.03(a)(xiii)
         of the Indenture;

                  (xxx) the amount to be paid to the Master Servicer pursuant
         to Section 8.03(a)(x) of the Indenture;

                  (xxxi) the Maximum Rate for the related Collection Period
         and the Weighted Average Net Loan Rate for the Mortgage Loans in each
         Loan Group;

                  (xxxii) the expected amount of any optional advances
         pursuant to Section 4.03 by the Master Servicer on the Mortgage Loans
         in each Loan Group included in the distribution on the related
         Payment Date and the aggregate expected amount of optional advances
         pursuant to Section 4.03 by the Master Servicer outstanding on the
         Mortgage Loans in each Loan Group as of the close of business on the
         related Payment Date;

                  (xxxiii) the number and principal balances of any Mortgage
         Loans in each Loan Group transferred to the Transferor pursuant to
         Section 2.06; and

                  (xxxiv) in the Servicing Certificates for the first and
         second Payment Dates, the number and Cut-off Date Asset Balance of
         Mortgage Loans for each Loan Group for

                                      27
<PAGE>

         which the Mortgage Loan File was not delivered to the Indenture
         Trustee within 30 days of the Closing Date.

         The Indenture Trustee and the Owner Trustee shall conclusively rely
on the information in a Servicing Certificate for purposes of making
distributions pursuant to Section 8.03 of the Indenture or distributions on
the Transferor Certificates, shall have no duty to inquire into this
information and shall have no liability in so relying. The format and content
of the Servicing Certificate may be modified by the mutual agreement of the
Master Servicer, the Indenture Trustee, and the Credit Enhancer. The Master
Servicer shall give notice of any changes to the Rating Agencies.

         Section 4.02. Acknowledgement and Cooperation.

         The Depositor, the Master Servicer, and the Indenture Trustee
acknowledge that without the need for any further action on the part of the
Credit Enhancer, the Depositor, the Master Servicer, the Indenture Trustee, or
the Note Registrar (a) to the extent the Credit Enhancer makes payments,
directly or indirectly, on account of principal of or interest or other
amounts on any Notes to the Holders of the Notes, the Credit Enhancer will be
fully subrogated to the rights of these Holders to receive the principal and
interest from the Trust and (b) the Credit Enhancer shall be paid the
principal and interest or other amounts but only from the sources and in the
manner provided in this Agreement for the payment of the principal and
interest or other amounts. The Indenture Trustee and the Master Servicer shall
cooperate in all respects with any reasonable request by the Credit Enhancer
for action to preserve or enforce the Credit Enhancer's rights or interests
under this Agreement and the Indenture without limiting the rights or
affecting the interests of the Holders as otherwise stated in this Agreement
and the Indenture.

         Section 4.03. Optional Advances of the Master Servicer.

         The Master Servicer, in its sole discretion, may advance the interest
component of any delinquent Minimum Monthly Payment (or any portion of it) by
depositing the amount into the Collection Account by the related Determination
Date.

         Section 4.04. Statements to Noteholders.

         Concurrently with each payment to Noteholders, the Master Servicer
shall deliver to the Indenture Trustee the data necessary to prepare a
statement (the "Monthly Statement") for each Payment Date with the following
information with respect to each Loan Group:

                  (i) the related Investor Floating Allocation Percentage for
         the preceding Collection Period;

                  (ii) the aggregate amount to be paid to the related Class of
         Noteholders;

                  (iii) the amount of Note Interest in the payment related to
         each Class of Notes and the applicable Note Rate;

                  (iv) the amount of any related Unpaid Investor Interest
         Shortfall in the payment;

                  (v) the amount of the remaining related Unpaid Investor
         Interest Shortfall after giving effect to the payment;

                                      28
<PAGE>

                  (vi) the amount of principal in the payment, separately
         stating its components;

                  (vii) the amount of the reimbursement of previous related
         Investor Loss Amounts in the payment;

                  (viii) the amount of the aggregate of unreimbursed related
         Investor Loss Reduction Amounts after giving effect to the payment;

                  (ix) the amount of any related Basis Risk Carryforward in
         the payment;

                  (x) the amount of the remaining related Basis Risk
         Carryforward after giving effect to the payment;

                  (xi) the Servicing Fee for the Payment Date;

                  (xii) the Note Principal Balance of the related Class of
         Notes and the factor to seven decimal places obtained by dividing the
         Note Principal Balance of the related Class of Notes for the Payment
         Date by the Original Note Principal Balance of the related Class of
         Notes after giving effect to the payment;

                  (xiii) the Loan Group Balance as of the end of the preceding
         Collection Period;

                  (xiv) any Credit Enhancement Draw Amount for the related
         Class of Notes;

                  (xv) the number and aggregate Asset Balances of Mortgage
         Loans in the related Loan Group as to which the Minimum Monthly
         Payment is delinquent for 30-59 days, 60-89 days, and 90 or more
         days, respectively, as of the end of the preceding Collection Period;

                  (xvi) the book value (within the meaning of 12 C.F.R. ss.
         571.13 or comparable provision) of any real estate acquired through
         foreclosure or grant of a deed in lieu of foreclosure for the related
         Loan Group;

                  (xvii) the amount of any optional advances on the Mortgage
         Loans in the related Loan Group pursuant to Section 4.03 by the
         Master Servicer included in the payment on the Payment Date and the
         aggregate amount of optional advances pursuant to Section 4.03 on
         Mortgage Loans in the related Loan Group by the Master Servicer
         outstanding as of the close of business on the Payment Date;

                  (xviii) the Note Rate for the related Class of Notes for the
         Payment Date;

                  (xix) the number and principal balances of any Mortgage
         Loans in that Loan Group retransferred to the Transferor pursuant to
         each of Section 2.04 and Section 2.06;

                  (xx) the amount of Subordinated Transferor Collections for
         the Mortgage Loans in that Loan Group included in the payment;

                  (xxi) the amount of Overcollateralization Step-Down Amount
         for that Loan Group included in the payment;

                                      29
<PAGE>

                  (xxii) the Available Transferor Subordinated Amount for that
         Loan Group and the Payment Date;

                  (xxiii) for the first Payment Date, the number and Cut-off
         Date Asset Balance of Mortgage Loans in that Loan Group for which the
         Mortgage Loan File was not delivered to the Indenture Trustee within
         30 days of the Closing Date;

                  (xxiv) the Adjusted Loan Group Balance of each Loan Group;
         and

                  (xxv) the OC Deficiency Amount for each Loan Group.

         The amounts furnished pursuant to clauses (ii), (iii) (for Note
Interest), (iv), (v), (vi), (vii), and (viii) above shall be expressed as a
dollar amount per $1,000 increment of Notes.

         If the Monthly Statement is not accessible to any of the Noteholders,
the Master Servicer, the Credit Enhancer, or either Rating Agency on the
Indenture Trustee's internet website, the Indenture Trustee shall forward a
hard copy of it to each Noteholder, the Master Servicer, the Credit Enhancer,
and each Rating Agency immediately after the Indenture Trustee becomes aware
that the Monthly Statement is not accessible to any of them via the Indenture
Trustee's internet website. The address of the Indenture Trustee's internet
website where the Monthly Statement will be accessible is
____________________. Assistance in using the Indenture Trustee's internet
website may be obtained by calling the Indenture Trustee's customer service
desk at (___) ___-_____. The Indenture Trustee shall notify each Noteholder,
the Master Servicer, the Credit Enhancer, and each Rating Agency in writing of
any change in the address or means of access to the internet website where the
Monthly Statement is accessible.

         Within 60 days after the end of each calendar year, the Master
Servicer shall prepare and forward to the Indenture Trustee the information in
clauses (iii) and (vi) above aggregated for the calendar year. This
requirement of the Master Servicer shall be satisfied if substantially
comparable information is provided by the Master Servicer or a Paying Agent
pursuant to any requirements of the Code.

         The Indenture Trustee shall prepare (in a manner consistent with the
treatment of the Notes as indebtedness of the Transferor, or as may be
otherwise required by Section 3.14) Internal Revenue Service Form 1099 (or any
successor form) and any other tax forms required to be filed or furnished to
Noteholders for payments by the Indenture Trustee (or the Paying Agent) on the
Notes and shall file and distribute such forms as required by law.

                                  ARTICLE V
              THE MASTER SERVICER, THE SPONSOR, AND THE DEPOSITOR

         Section 5.01. Liability of the Sponsor, the Master Servicer, and the
Depositor.

         The Sponsor, the Depositor, and the Master Servicer shall be liable
only for their express agreements under this Agreement.

                                      30
<PAGE>

         Section 5.02. Merger or Consolidation of, or Assumption of the
Obligations of, the Master Servicer or the Depositor.

         Any corporation into which the Master Servicer or the Depositor may
be merged or consolidated, or any corporation resulting from any merger,
conversion, or consolidation to which the Master Servicer or the Depositor is
a party, or any corporation succeeding to the business of the Master Servicer
or the Depositor, shall be the successor of the Master Servicer or the
Depositor, as the case may be, under this Agreement, without the execution or
filing of any paper or any further act on the part of any of the parties to
this Agreement, notwithstanding anything in this Agreement to the contrary.

         Section 5.03. Limitation on Liability of the Master Servicer and
Others.

         Neither the Master Servicer nor any of its directors, officers,
employees, or agents is liable to the Trust, the Owner Trustee, the
Transferor, or the Noteholders for the Master Servicer's taking any action or
refraining from taking any action in good faith pursuant to this Agreement, or
for errors in judgment. This provision shall not protect the Master Servicer
or any of its directors, officers, employees, or agents against any liability
that would otherwise be imposed for misfeasance, bad faith, or gross
negligence in the performance of the duties of the Master Servicer or for
reckless disregard of the obligations of the Master Servicer. The Master
Servicer and any of its directors, officers, employees, or agents may rely in
good faith on any document of any kind prima facie properly executed and
submitted by any person about anything arising under this Agreement.

         The Master Servicer and each of its directors, officers, employees,
and agents shall be indemnified by the Trust (but only from funds available
from the applicable Loan Group) and held harmless against any loss, liability,
or expense incurred in connection with any legal action relating to this
Agreement, the Transferor Certificates, or the Notes, other than any loss,
liability, or expense related to any specific Mortgage Loan that is otherwise
not reimbursable pursuant to this Agreement and any loss, liability, or
expense incurred due to its willful misfeasance, bad faith, or gross
negligence in the performance of duties under this Agreement or due to its
reckless disregard of its obligations under this Agreement.

         The Master Servicer need not appear in, prosecute, or defend any
legal action that is not incidental to its duties to service the Mortgage
Loans in accordance with this Agreement, and that in its opinion may involve
it in any expense or liability. The Master Servicer may in its sole discretion
undertake any action that it deems appropriate with respect to this Agreement
and the interests of the Noteholders. If so, the reasonable legal expenses and
costs of the action and any resulting liability shall be expenses, costs, and
liabilities of the Trust, and the Master Servicer shall only be entitled to be
reimbursed pursuant to Section 8.03(a)(x) of the Indenture (but only from
funds available from the applicable Loan Group). The Master Servicer's right
to indemnity or reimbursement pursuant to this Section shall survive any
resignation or termination of the Master Servicer pursuant to Section 5.04 or
6.01 with respect to any losses, expenses, costs, or liabilities arising
before its resignation or termination (or arising from events that occurred
before its resignation or termination).

                                      31
<PAGE>

         Section 5.04. Master Servicer Not to Resign.

         Subject to Section 5.02, the Master Servicer shall not resign as
Master Servicer under this Agreement except

                  (i) if the performance of its obligations under this
         Agreement are no longer permissible under applicable law or due to
         applicable law are in material conflict with any other activities
         carried on by it or its subsidiaries or Affiliates that are of a type
         and nature carried on by the Master Servicer or its subsidiaries or
         Affiliates at the date of this Agreement or

                  (ii) if

                           (a) the Master Servicer has proposed a successor
                  Master Servicer to the Indenture Trustee and the proposed
                  successor Master Servicer is reasonably acceptable to the
                  Indenture Trustee;

                           (b) each Rating Agency has delivered a letter to
                  the Indenture Trustee before the appointment of the
                  successor Master Servicer stating that the proposed
                  appointment of the successor Master Servicer as Master
                  Servicer under this Agreement will not result in the
                  reduction or withdrawal of the then current rating of the
                  Notes without regard to the Policy; and

                           (c) the proposed successor Master Servicer is
                  reasonably acceptable to the Credit Enhancer in its sole
                  discretion, as evidenced by a letter to the Indenture
                  Trustee.

         No resignation by the Master Servicer shall become effective until
the Indenture Trustee or successor Master Servicer designated by the Master
Servicer has assumed the Master Servicer's obligations under this Agreement or
the Indenture Trustee has designated a successor Master Servicer in accordance
with Section 6.02. Any resignation shall not relieve the Master Servicer of
responsibility for any of the obligations specified in Sections 6.01 and 6.02
as obligations that survive the resignation or termination of the Master
Servicer. Any determination permitting the resignation of the Master Servicer
pursuant to clause (i) above shall be evidenced by an Opinion of Counsel to
that effect delivered to the Indenture Trustee and the Credit Enhancer. The
Master Servicer shall have no claim (whether by subrogation or otherwise) or
other action against the Transferor, any Noteholder, or the Credit Enhancer
for any amounts paid by the Master Servicer pursuant to any provision of this
Agreement.

         Section 5.05. Delegation of Duties.

         In the ordinary course of business, the Master Servicer may delegate
any of its duties under this Agreement at any time to any person who agrees to
act in accordance with standards comparable to those with which the Master
Servicer complies pursuant to Section 3.01, including any of its Affiliates or
any subservicer referred to in Section 3.01. This delegation shall not relieve
the Master Servicer of its obligations under this Agreement and shall not
constitute a resignation within the meaning of Section 5.04.

         Section 5.06. Indemnification by the Master Servicer.

         The Master Servicer shall indemnify the Trust, the Owner Trustee, and
the Indenture Trustee against any loss, liability, expense, damage, or injury
suffered or sustained due to the

                                      32
<PAGE>

Master Servicer's actions or omissions in servicing or administering the
Mortgage Loans that are not in accordance with this Agreement, including any
judgment, award, settlement, reasonable attorneys' fees, and other costs or
expenses incurred in connection with the defense of any actual or threatened
action, proceeding, or claim. This indemnification is not payable from the
assets of the Trust. This indemnity shall run directly to and be enforceable
by an injured party subject to any applicable limitations.

         The Indenture Trustee and any director, officer, employee, or agent
of the Indenture Trustee shall be indemnified by the Master Servicer and held
harmless against any loss, liability or expense incurred in connection with
any legal action relating to this Agreement, the Indenture, the Custodial
Agreement, the Administration Agreement, the Notes, or the Transferor
Certificates, or in connection with the performance of any of the Indenture
Trustee's duties thereunder, other than any loss, liability or expense
incurred by reason of willful misfeasance, bad faith or negligence in the
performance of any of the Indenture Trustee's duties under this Agreement, the
Indenture, or the Custodial Agreement or by reason of reckless disregard of
the Indenture Trustee's obligations and duties under this Agreement.

         The indemnity provisions of this Section shall survive the
termination of this Agreement or the resignation or removal of the Indenture
Trustee under the Indenture.

                                  ARTICLE VI
                             SERVICING TERMINATION

         Section 6.01. Events of Servicing Termination.

         If any one of the following events ("Events of Servicing
Termination") shall occur and be continuing:

                  (i) any failure by the Master Servicer to deposit in the
         Collection Account any deposit required to be made under this
         Agreement or to remit to the Indenture Trustee amounts required to be
         deposited to the Payment Account that continues unremedied either
         beyond the relevant Payment Date or for five Business Days after the
         date when notice of the failure has been given to the Master Servicer
         by the Indenture Trustee or to the Master Servicer and the Indenture
         Trustee by the Credit Enhancer or Holders of Notes representing not
         less than 25% of the Outstanding Amount of both Classes of Notes; or

                  (ii) failure by the Master Servicer duly to observe or
         perform in any material respect any other covenants or agreements of
         the Master Servicer in the Notes or in this Agreement that materially
         and adversely affects the interests of the Noteholders or the Credit
         Enhancer and continues unremedied for 60 days after the date on which
         notice of the failure, requiring it to be remedied, and stating that
         the notice is a "Notice of Default" under this Agreement, has been
         given to the Master Servicer by the Indenture Trustee or to the
         Master Servicer and the Indenture Trustee by the Credit Enhancer or
         the Holders of Notes representing not less than 25% of the
         Outstanding Amount of both Classes of Notes; or

                                      33
<PAGE>

                  (iii) an Insolvency Event occurs with respect to the Master
         Servicer;

then, until the Event of Servicing Termination has been remedied by the Master
Servicer, either the Indenture Trustee (with the consent of the Credit
Enhancer), the Credit Enhancer, or the Holders of Notes representing not less
than 51% of the Outstanding Amount of both Classes of Notes with the consent
of the Credit Enhancer by notice then given to the Master Servicer (and to the
Indenture Trustee if given by the Credit Enhancer or the Holders of Notes) may
terminate all of the rights and obligations of the Master Servicer as servicer
under this Agreement. This notice to the Master Servicer shall also be given
to each Rating Agency and the Credit Enhancer.

         From the receipt by the Master Servicer of the notice, all the rights
and obligations of the Master Servicer under this Agreement, whether with
respect to the Notes or the Mortgage Loans or otherwise, shall pass to and be
vested in the Indenture Trustee pursuant to this Section; and the Indenture
Trustee is authorized to execute and deliver, on behalf of the Master
Servicer, as attorney-in-fact or otherwise, any documents, and to do anything
else appropriate to effect the purposes of the notice of termination, whether
to complete the transfer and endorsement of each Mortgage Loan and related
documents, or otherwise. The Master Servicer agrees to cooperate with the
Indenture Trustee in effecting the termination of the rights and obligations
of the Master Servicer under this Agreement, including the transfer to the
Indenture Trustee for the administration by it of all cash amounts that are
held by the Master Servicer and are to be deposited by it in the Collection
Account, or that have been deposited by the Master Servicer in the Collection
Account or are subsequently received by the Master Servicer with respect to
the Mortgage Loans. All reasonable costs and expenses (including attorneys'
fees) incurred in connection with transferring the Mortgage Files to the
successor Master Servicer and amending this Agreement to reflect the
succession as Master Servicer pursuant to this Section shall be paid by the
predecessor Master Servicer (or if the predecessor Master Servicer is the
Indenture Trustee, the initial Master Servicer) on presentation of reasonable
documentation of the costs and expenses.

         Notwithstanding the foregoing, a delay in or failure of performance
under Section 6.01(i) for five or more Business Days or under Section 6.01(ii)
for 60 or more days, shall not constitute an Event of Servicing Termination if
the delay or failure could not be prevented by the exercise of reasonable
diligence by the Master Servicer and the delay or failure was caused by an act
of God or the public enemy, acts of declared or undeclared war, public
disorder, rebellion or sabotage, epidemics, landslides, lightning, fire,
hurricanes, earthquakes, floods, or similar causes. The preceding sentence
shall not relieve the Master Servicer from using its best efforts to perform
its obligations in a timely manner in accordance with the terms of this
Agreement, and the Master Servicer shall provide the Indenture Trustee, the
Depositor, the Transferor, the Credit Enhancer, and the Noteholders with an
Officers' Certificate giving prompt notice of its failure or delay, together
with a description of its efforts to perform its obligations. The Master
Servicer shall immediately notify the Indenture Trustee of any Events of
Servicing Termination.

         In connection with the termination of the Master Servicer if any
mortgage is registered on the MERS(R) System, then, either (i) the successor
Master Servicer, including the Indenture

                                      34
<PAGE>

Trustee if the Indenture Trustee is acting as successor Master Servicer, shall
represent and warrant that it is a member of MERS in good standing and shall
agree to comply in all material respects with the rules and procedures of MERS
in connection with the servicing of the Mortgage Loans that are registered
with MERS, or (ii) the predecessor Master Servicer shall cooperate with the
successor Master Servicer in causing MERS to execute and deliver an assignment
of mortgage in recordable form to transfer all the mortgages registered on the
MERS(R) System from MERS to the Indenture Trustee and to execute and deliver
any other notices and documents appropriate to effect a transfer of those
mortgages or the servicing of the Mortgage Loan on the MERS(R) System to the
successor Master Servicer. The predecessor Master Servicer shall file the
assignment in the appropriate recording office. The successor Master Servicer
shall deliver the assignment to the Indenture Trustee promptly upon receipt of
the original with evidence of recording on it or a copy certified by the
public recording office in which the assignment was recorded.

         Section 6.02. Indenture Trustee to Act; Appointment of Successor.

         (a) From the time the Master Servicer receives a notice of
termination pursuant to Section 6.01 or resigns pursuant to Section 5.04, the
Indenture Trustee shall be the successor in all respects to the Master
Servicer in its capacity as Master Servicer under this Agreement and the
transactions contemplated by this Agreement and shall be subject to all the
obligations of the Master Servicer under this Agreement except (i) the
obligation to repurchase or substitute for any Mortgage Loan, (ii) with
respect to any representation or warranty of the Master Servicer, or (iii) for
any act or omission of either a predecessor or successor Master Servicer other
than the Indenture Trustee. As its compensation under this Agreement, the
Indenture Trustee shall be entitled to the compensation the Master Servicer
would have been entitled to under this Agreement if no notice of termination
had been given. In addition, the Indenture Trustee will be entitled to
compensation with respect to its expenses in connection with conversion of
certain information, documents, and record keeping, as provided in Section
6.01.

         Notwithstanding the above, (i) if the Indenture Trustee is unwilling
to act as successor Master Servicer, or (ii) if the Indenture Trustee is
legally unable to so act, the Indenture Trustee may (in the situation
described in clause (i)) or shall (in the situation described in clause (ii))
appoint, or petition a court of competent jurisdiction to appoint, any
established housing and home finance institution, bank, or other mortgage loan
or home equity loan servicer having a net worth of not less than $15,000,000
as the successor to the Master Servicer under this Agreement to assume of any
obligations of the Master Servicer under this Agreement. The successor Master
Servicer must be acceptable to the Credit Enhancer in its sole discretion, as
evidenced by the Credit Enhancer's prior consent, as applicable, which consent
shall not be unreasonably withheld. The appointment of the successor Master
Servicer must not result in the qualification, reduction, or withdrawal of the
ratings assigned to the Notes by the Rating Agencies without regard to the
Policy.

         Pending appointment of a successor to the Master Servicer, unless the
Indenture Trustee is prohibited by law from so acting, the Indenture Trustee
shall act as Master Servicer. In connection with this appointment and
assumption, the successor shall be entitled to receive compensation out of
payments on Mortgage Loans in an amount equal to the compensation that

                                      35
<PAGE>

the Master Servicer would otherwise have received pursuant to Section 3.08 (or
any lesser compensation the Indenture Trustee and the successor agree to). The
Indenture Trustee and the successor shall take any action, consistent with
this Agreement, necessary to effectuate the succession.

         (b) The appointment of a successor Master Servicer shall not affect
any liability of the predecessor Master Servicer that may have arisen under
this Agreement before its termination as Master Servicer (including any
deductible under an insurance policy pursuant to Section 3.04), nor shall any
successor Master Servicer be liable for any acts or omissions of the
predecessor Master Servicer or for any breach by the predecessor Master
Servicer of any of its representations or warranties in this Agreement. Except
for any compensation agreement with the Indenture Trustee, any successor
Master Servicer shall be subject to all the terms of this Agreement from the
time that it accepts its appointment to the same extent as if it were
originally named as Master Servicer.

         Section 6.03. Notification to Noteholders and the Transferor.

         Upon any termination or appointment of a successor to the Master
Servicer pursuant to this Article or Section 5.04, the Indenture Trustee shall
give prompt notice of it to the Noteholders at their respective addresses
appearing in the Note Register, the Transferor, the Credit Enhancer, and each
Rating Agency.

                                  ARTICLE VII
                                  TERMINATION

         Section 7.01. Termination.

         (a) The respective obligations and responsibilities of the Sponsor,
the Master Servicer, the Depositor, the Trust, and the Indenture Trustee
created by this Agreement (other than the obligation of the Master Servicer to
send certain notices) shall terminate on the earlier of

                  (i) the transfer of all the Mortgage Loans pursuant to
         Section 7.01(b),
                  (ii) the termination of the Trust Agreement or the
         Indenture, and
                  (iii) the final payment or other liquidation of the last
         Mortgage Loan remaining in the Trust or the disposition of all
         property acquired in foreclosure or by deed in lieu of foreclosure of
         any Mortgage Loan.

         Upon termination in accordance with this Section, the Indenture
Trustee shall execute any documents and instruments of transfer presented by
the Transferor, in each case without recourse, representation, or warranty,
and take any other actions the Transferor reasonably requests to effect the
transfer of the Mortgage Loans to the Transferor. Notwithstanding the
termination of this Agreement, the Master Servicer shall comply with this
Agreement in winding up activities under this Agreement after termination if
necessary.

         (b) With the consent of the Credit Enhancer and the Master Servicer,
the Transferor may effect the transfer of all the Mortgage Loans at their
termination purchase price on any Payment Date from the Payment Date
immediately before which the aggregate Note Principal

                                      36
<PAGE>

Balance of both Classes of Notes is less than or equal to 10% of the aggregate
Original Note Principal Balance of both Classes of Notes and require the Trust
to redeem the Notes pursuant to Section 10.01 of the Indenture with the
proceeds. The termination purchase price is the sum of:

                  (i) the aggregate Note Principal Balance for both Classes of
         Notes,
                  (ii) accrued aggregate Note Interest through the day
         preceding the final Payment Date, and
                  (iii) interest accrued on any aggregate Unpaid Investor
         Interest Shortfall, to the extent legally permissible.

         (c) The Transferor must notify the Credit Enhancer, the Trust, and
the Indenture Trustee of any election to effect the transfer of the Mortgage
Loans pursuant to Section 7.01(b) no later than the first day of the month
before the month in which the transfer is to occur. The proceeds from the
purchase of the Mortgage Loans, for purposes of payments on the Notes, shall
be considered to have been received in the Collection Period before the
Collection Period in which the Payment Date on which the purchase takes place
occurs.

                                 ARTICLE VIII
                           MISCELLANEOUS PROVISIONS

         Section 8.01. Amendment.

         This Agreement may be amended from time to time by the Sponsor, the
Master Servicer, the Depositor, the Owner Trustee, and the Indenture Trustee,
if the Rating Agency Condition is satisfied (in connection with which the
consent of the Credit Enhancer shall not be unreasonably withheld). However,
no amendment that significantly changes the permitted activities of the Trust
may be promulgated without the consent of a majority of the aggregate
Outstanding Amount of both Classes of Notes. For this purpose no Notes owned
by the Sponsor or any of its affiliates may vote, nor shall their Notes be
considered outstanding. This Agreement may also be amended from time to time
by the Sponsor, the Master Servicer, the Depositor, the Owner Trustee, and the
Indenture Trustee, with the consent of the Credit Enhancer (which consent
shall not be unreasonably withheld) and Holders of not less than 66(2)/3% of
the aggregate Outstanding Amount of both Classes of Notes.

         The Indenture Trustee may enter into any amendment of this Agreement
as to which the Rating Agency Condition is satisfied, and when so requested by
an Issuer Request, the Indenture Trustee shall enter into any amendment of
this Agreement

                  (i) that does not impose further obligations or liabilities
         on the Indenture Trustee, and

                  (ii) as to which either the Rating Agency Condition is
         satisfied or Holders of not less than 66(2)/3% of the aggregate
         Outstanding Amount of both Classes of Notes and the Credit Enhancer
         have consented.

                                      37
<PAGE>

         Following the execution and delivery of any amendment to this
Agreement or to the Policy to which the Credit Enhancer was required to
consent, either the Transferor, if the Transferor requested the amendment, or
the Master Servicer, if the Master Servicer requested the amendment, shall
reimburse the Credit Enhancer for the reasonable out-of-pocket costs and
expenses incurred by them in connection with the amendment.

         Before the execution of the amendment, the party to this Agreement
requesting the amendment shall notify each Rating Agency of the substance of
the amendment. The Indenture Trustee shall deliver fully executed original
counterparts of the instruments effecting the amendment to the Credit
Enhancer.

         Section 8.02. Governing Law.

         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS PROVISIONS THAT
WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER STATE.

         Section 8.03. Notices.

         All notices, demands, instructions, consents, and other
communications required or permitted under this Agreement shall be in writing
and signed by the party giving the same and shall be personally delivered or
sent by first class or express mail (postage prepaid), national overnight
courier service, or by facsimile transmission or other electronic
communication device capable of transmitting or creating a written record
(confirmed by first class mail) and shall be considered to be given for
purposes of this Agreement on the day that the writing is delivered when
personally delivered or sent by facsimile or overnight courier or three
Business Days after it was sent to its intended recipient if sent by first
class mail. A facsimile has been delivered when the sending machine issues an
electronic confirmation of transmission. Unless otherwise specified in a
notice sent or delivered in accordance with the provisions of this Section,
notices, demands, instructions, consents, and other communications in writing
shall be given to or made on the respective parties at their respective
addresses indicated below:

                  if to the Trust at:

                           CWHEQ Revolving Home Equity Loan Trust, Series 200_-_
                           ___________________________
                           ___________________________
                           ___________________________
                           Attention: ___________________________
                           Telecopy: (___) ___-____

                  if to the Depositor at:

                           CWHEQ, Inc.
                           4500 Park Granada
                           Calabasas, California 91302
                           Attention: Legal Department
                           Telecopy: (818) 225-8882

                                      38
<PAGE>

                  if to the Master Servicer at:

                           [Countrywide Home Loans, Inc.
                           4500 Park Granada
                           Calabasas, California 91302
                           Attention: Legal Department,
                           Telecopy: (818) 225-4028]

                  if to the Indenture Trustee at:

                           the Corporate Trust Office
                           Telecopy: (___) ___-_____

                  if to the Credit Enhancer at:

                           ___________________________
                           ___________________________
                           ___________________________
                           Attention:  __________________
                           Re: Revolving Home Equity Loan Asset-Backed Notes,
                               Series 200_-_
                           Facsimile: (___) ___-_____
                           Confirmation: (___) ___-_____

                  if to [Rating Agency] at:

                           ___________________________
                           ___________________________
                           ___________________________

                  and if to [Rating Agency] at:

                           ___________________________
                           ___________________________
                           ___________________________

         Whenever a notice or other communication to the Credit Enhancer
refers to an Event of Servicing Termination or with respect to which failure
on the part of the Credit Enhancer to respond would constitute consent or
acceptance, then a copy of the notice or other communication shall also be
sent to the attention of the General Counsel of the Credit Enhancer and shall
be marked to indicate "URGENT MATERIAL ENCLOSED."

         Section 8.04. Severability of Provisions.

         Any provisions of this Agreement that are held invalid for any reason
or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of the invalidity or unenforceability without
invalidating the remaining provisions of this Agreement, and the prohibition
or unenforceability in a jurisdiction shall not invalidate or render
unenforceable that provision in any other jurisdiction.

         Section 8.05. Assignment.

         Except as provided in Sections 5.02 and 5.04, this Agreement may not
be assigned by the Depositor or the Master Servicer without the prior consent
of the Credit Enhancer.

                                      39
<PAGE>

         Section 8.06. Third-Party Beneficiaries.

         This Agreement will be binding on the parties to this Agreement, and
inure to the benefit of the parties to this Agreement, the Noteholders, the
Transferor, the Note Owners, the Owner Trustee, and the Credit Enhancer and
their respective successors and permitted assigns. The Credit Enhancer is a
third party beneficiary of this Agreement. No other person will have any
rights under this Agreement.

         Section 8.07. Counterparts; Electronic Delivery.

         This Agreement may be executed in any number of copies, and by the
different parties on the same or separate counterparts, each of which shall be
considered to be an original instrument. Any signature page to this Agreement
containing a manual signature may be delivered by facsimile transmission or
other electronic communication device capable of transmitting or creating a
printable written record, and when so delivered shall have the effect of
delivery of an original manually signed signature page.

         Section 8.08. Effect of Headings and Table of Contents.

         The Article and Section headings in this Agreement and the Table of
Contents are for convenience only and shall not affect the construction of
this Agreement.

                                      40
<PAGE>

         IN WITNESS WHEREOF, the Depositor, the Sponsor and Master Servicer,
the Trust, and the Indenture Trustee have caused this Agreement to be duly
executed by their respective officers all as of the day and year first above
written.

                            CWHEQ, Inc.
                                 Depositor

                            By:
                               ------------------------------------------------
                                 Name:
                                 Title:

                            [COUNTRYWIDE HOME LOANS, INC.]
                                 Sponsor and Master Servicer

                            By:
                                -----------------------------------------------
                                 Name:
                                 Title:

                            -------------------------------------
                                 Indenture Trustee

                            By:
                                -----------------------------------------------
                                 Name:
                                 Title:

                            CWHEQ REVOLVING HOME EQUITY LOAN TRUST, SERIES
                                  200_-_

                            By:   _________________________, not in its
                                  individual capacity but solely as Owner
                                  Trustee

                            By:
                               ------------------------------------------------
                                  Name:
                                  Title:

                                      41
<PAGE>

State of CALIFORNIA      )
                         ) ss.:
County of LOS ANGELES    )

         On the ___ day of ___________, 200__ before me, a notary public in
and for the State of California, personally appeared _______________, known to
me who, being by me duly sworn, did depose and say that he resides at
Calabasas, California; that he is the ________________ of CWHEQ, Inc. a
Delaware corporation, one of the parties that executed the foregoing
instrument; that he signed his name thereto by order of the Board of Directors
of said corporation.

                                           ___________________________________
                                           Notary Public

                                           My Commission Expires:

                                      42
<PAGE>

State of CALIFORNIA      )
                         ) ss.:
County of LOS ANGELES    )

         On the ___ day of ___________, 200__ before me, a notary public in
and for the State of California, personally appeared _________________, known
to me who, being by me duly sworn, did depose and say that he resides at
Calabasas, California; that he is the ____________ of [Countrywide Home Loans,
Inc., a New York corporation] one of the parties that executed the foregoing
instrument; and that he signed his name thereto by order of the Board of
Directors of said corporation.

                                           ___________________________________
                                           Notary Public

                                           My Commission Expires:

                                      43
<PAGE>

State of            )
                    ) ss.:
County of           )

         On the ___ day of __________, 200__ before me, a notary public in and
for the State of Illinois, personally appeared _____________________, known to
me who, being by me duly sworn, did depose and say that he resides at
___________________; that he is the ___________________ of
_______________________________, one of the parties that executed the
foregoing instrument; that he signed his name thereto by order of the Board of
Directors of said corporation.

                                           ___________________________________
                                           Notary Public

                                           My Commission Expires:

                                      44
<PAGE>

<PAGE>

State of DELAWARE        )
                         ) ss.:
County of NEW CASTLE     )

         On the ___ day of ____________, 200__ before me, a notary public in
and for the State of Delaware, personally appeared___________________, known
to me who, being by me duly sworn, did depose and say that she resides at
Wilmington, Delaware; that she is the ___________________ of
_____________________, not in its individual capacity but in its capacity as
Owner Trustee of CWHEQ REVOLVING HOME EQUITY LOAN TRUST, SERIES 200_-_, one of
the parties that executed the foregoing instrument; that she signed her name
thereto by order of the Board of Directors of said corporation.

                                           ___________________________________
                                           Notary Public

                                           My Commission Expires:

                                      45
<PAGE>

                                                                     EXHIBIT A

                            MORTGAGE LOAN SCHEDULE
                     [Delivered to Indenture Trustee Only]

                                      A-1

<PAGE>

                                                                     EXHIBIT B

                       FORM OF LETTER OF REPRESENTATIONS

                                     B-1
<PAGE>

                                                                     EXHIBIT C

                   FORM OF REQUEST FOR RELEASE OF DOCUMENTS

                                                                        [DATE]

_______________________
         as Indenture Trustee
_______________________
_______________________
_______________________
Attention:  _______________________
Attn:  ___________________________

         Re:      CWHEQ, Inc. Revolving Home Equity Loan
                  Asset Backed Notes, Series 200_-_
                  --------------------------------------

Gentlemen:

         In connection with the administration of the Mortgage Loans held by
you as Indenture Trustee under the Sale and Servicing Agreement, dated as of
____________, 200_, among CWHEQ, Inc. as Depositor, [Countrywide Home Loans,
Inc.] as Sponsor and Master Servicer, CWHEQ Revolving Home Equity Loan Trust,
Series 200_-_ and you, as Indenture Trustee (the "Agreement"), we hereby
request a release of the Mortgage File held by you as Indenture Trustee with
respect to the following described Mortgage Loan for the reason indicated
below.

Loan No.:
[MIN No.]
Reason for requesting file:
--------------------------

__________________          1.       Mortgage Loan paid in full. (The Master
                                     Servicer hereby certifies that all
                                     amounts received in connection with the
                                     payment in full of the Mortgage Loan
                                     which are required to be deposited in the
                                     Collection Account pursuant to Section
                                     3.02 of the Agreement have been so
                                     deposited).
__________________          2.       Retransfer of Mortgage Loan. (The Master
                                     Servicer hereby certifies that the
                                     Transfer Deposit Amount has been
                                     deposited in the Collection Account
                                     pursuant to the Agreement).
__________________          3.       The Mortgage Loan is being foreclosed.
__________________          4.       The Mortgage Loan is being re-financed by
                                     another depository institution. (The
                                     Master Servicer hereby certifies that all
                                     amounts received in connection with the
                                     payment in full of the Mortgage Loan
                                     which are required to be deposited in the
                                     Collection Account pursuant to Section
                                     3.02 of the Agreement have been so
                                     deposited).
__________________          5.       Other (Describe).

         The undersigned acknowledges that the above Mortgage File will be
held by the undersigned in accordance with the provisions of the Agreement and
will promptly be returned

                                     C-1

<PAGE>

to the Indenture Trustee when the need therefor by the Master Servicer no
longer exists unless the Mortgage Loan has been liquidated or retransferred.

         Capitalized terms used herein shall have the meanings ascribed to
them in the Agreement.

                                        [COUNTRYWIDE HOME LOANS, INC.]

                                        By:_______________________________

                                           Name:
                                           Title: Servicing Officer

                                      C-2
<PAGE>

                                                                       ANNEX 1

                                  DEFINITIONS

         "Adoption Annex" means Annex 2 to this Agreement.

         "Affiliate" of any person means any other person controlling,
controlled by or under common control with the person. For purposes of this
definition, "control" means the power to direct the management and policies of
a person, directly or indirectly, whether through ownership of voting
securities, by contract or otherwise and "controlling" and "controlled" shall
have meanings correlative to the foregoing.

         "Agreement" means this Sale and Servicing Agreement.

         "Appraised Value" for any Mortgaged Property means the value
established by any of the following: (i) with respect to Credit Line
Agreements with Credit Limits greater than $100,000, by a full appraisal, (ii)
with respect to Credit Line Agreements with Credit Limits equal to or less
than $100,000, by either a drive by inspection or electronic appraisal of the
Mortgaged Property made to establish compliance with the underwriting criteria
then in effect in connection with the application for the Mortgage Loan
secured by the Mortgaged Property, and (iii) with respect to any Mortgage Loan
as to which the Servicer consents to a new senior lien pursuant to Section
3.01(a), in compliance with the underwriting criteria then in effect in
connection with the application for the related senior mortgage loan.

         "Collection Account" means the Eligible Account or Eligible Accounts
created and maintained for the benefit of the Noteholders, the Transferor, and
the Credit Enhancer pursuant to Section 3.02(b).

         "Combined Loan-to-Value Ratio" for any Mortgage Loan as of any date
means a fraction

                  o whose numerator is the sum of (i) the Credit Limit and
         (ii) the outstanding principal balance as of the date of execution of
         the related original Credit Line Agreement (or any subsequent date as
         of which the outstanding principal balance may be determined in
         connection with an increase in the Credit Limit for the Mortgage
         Loan) of any mortgage loans that are senior or equal in priority to
         the Mortgage Loan and that are secured by the same Mortgaged Property
         and

                  o whose denominator is the Valuation of the related
         Mortgaged Property.

         "Credit Limit Utilization Rate" for any Mortgage Loan means a
fraction whose numerator is the Cut-off Date Asset Balance for the Mortgage
Loan and whose denominator is the related Credit Limit.

         "Cut-off Date Loan Balance" means the Loan Balance calculated as of
the Cut-off Date.

         "Defective Mortgage Loan" means a Mortgage Loan subject to retransfer
pursuant to Section 2.02(b) or 2.04(d).

         "Delay Delivery Certification" has the meaning given to it in the
Custodial Agreement.

                                   Ann-1-1

<PAGE>

         "Depositor" means CWHEQ, Inc., a Delaware corporation, or its
successor in interest.

         "Due Date" for any Mortgage Loan means the fifteenth day of the
month.

         "Electronic Ledger" means the electronic master record of home equity
credit line mortgage loans maintained by the Master Servicer or by the
Sponsor, as appropriate.

         "Eligible Substitute Mortgage Loan" means a Mortgage Loan transferred
to the Trust by the Sponsor in connection with the retransfer of a Defective
Mortgage Loan that must, on the date of its transfer to the Trust,

                  (i) have an outstanding Asset Balance (or in the case of a
         substitution of more than one Mortgage Loan for a Defective Mortgage
         Loan, an aggregate Asset Balance), not 10% more than the Transfer
         Deficiency relating to the Defective Mortgage Loan;

                  (ii) have a Loan Rate not less than the Loan Rate of the
         Defective Mortgage Loan and not more than 1.000% in excess of the
         Loan Rate of the Defective Mortgage Loan;

                  (iii) have a Loan Rate based on the same Index with
         adjustments to the Loan Rate made on the same Interest Rate
         Adjustment Date as that of the Defective Mortgage Loan;

                  (iv) have a FICO score not less than the FICO score of the
         Defective Mortgage Loan and not more than 50 points higher than the
         Defective Mortgage Loan;

                  (v) have a Gross Margin that is not less than the Gross
         Margin of the Defective Mortgage Loan and not more than 100 basis
         points higher than the Gross Margin for the Defective Mortgage Loan;

                  (vi) if the Mortgage Loan is being transferred to the Trust
         in connection with the retransfer a Defective Mortgage Loan in Loan
         Group 1, the Mortgage Loan's original principal balance (by credit
         limit) conforms to Fannie Mae or Freddie Mac guidelines;

                  (vii) have a mortgage of the same or higher level of
         priority as the mortgage relating to the Defective Mortgage Loan at
         the time the mortgage was transferred to the Trust;

                  (viii) have a remaining term to maturity not more than six
         months earlier than the remaining term to maturity of the Defective
         Mortgage Loan, not later than the maturity date of the related Notes,
         and not more than 60 months later than the remaining term to maturity
         of the Defective Mortgage Loan;

                  (ix) comply with each representation and warranty in Section
         2.04 (to be made as of the date of transfer to the Trust); and

                  (x) have an original Combined Loan-to-Value Ratio not
         greater than that of the Defective Mortgage Loan.

                                    Ann-1-2

<PAGE>

More than one Eligible Substitute Mortgage Loan may be substituted for a
Defective Mortgage Loan if the Eligible Substitute Mortgage Loans meet the
foregoing attributes in the aggregate and the substitution is approved in
advance by the Credit Enhancer. The procedures applied by the Sponsor in
selecting each Eligible Substitute Mortgage Loan shall not be materially
adverse to the interests of the Indenture Trustee, the Transferor, the
Noteholders, or the Credit Enhancer.

         "Event of Servicing Termination" has the meaning given to it in
Section 6.01.

         "FDIC" means the Federal Deposit Insurance Corporation or any
successor to it.

         "Foreclosure Profit" on a Liquidated Mortgage Loan means the amount
by which (i) the aggregate of its Net Liquidation Proceeds exceeds (ii) the
related Asset Balance (plus accrued and unpaid interest on it at the
applicable Loan Rate from the date interest was last paid to the end of the
Collection Period during which the Mortgage Loan became a Liquidated Mortgage
Loan) of the Liquidated Mortgage Loan immediately before the final recovery of
its Liquidation Proceeds.

         "Gross Margin" for any Mortgage Loan means the percentage shown as
the "Gross Margin" for the Mortgage Loan on Exhibit A.

         "Indenture" means the indenture of even date with this Agreement
between the Trust and the Indenture Trustee.

         "Indenture Trustee Fee" means a fee that is separately agreed to
between the Master Servicer and the Indenture Trustee.

         "Indenture Trustee Fee Rate" means the per annum rate at which the
Indenture Trustee Fee is calculated.

         "Index" for each Interest Rate Adjustment Date for a Mortgage Loan
means the highest "prime rate" as published in the "Money Rates" table of The
Wall Street Journal as of the first business day of the calendar month.

         "Insurance Proceeds" means proceeds paid by any insurer (other than
the Credit Enhancer under the Policy) pursuant to any insurance policy
covering a Mortgage Loan net of any amount (i) covering any expenses of the
Master Servicer in connection with obtaining the proceeds, (ii) applied to the
restoration or repair of the related Mortgaged Property, (iii) released to the
mortgagor in accordance with the Master Servicer's normal servicing
procedures, or (iv) required to be paid to any holder of a mortgage senior to
the Mortgage Loan.

         "Interest Rate Adjustment Date" for each Mortgage Loan means any date
on which the Loan Rate is adjusted in accordance with the related Credit Line
Agreement.

         "Lien" means any mortgage, deed of trust, pledge, conveyance,
hypothecation, assignment, participation, deposit arrangement, encumbrance,
lien (statutory or other), preference, priority right, or interest or other
Security Agreement or preferential arrangement of any kind or nature
whatsoever, including any conditional sale or other title retention agreement,
any financing lease having substantially the same economic effect as any of
the foregoing, and the filing of any Financing Statement under the UCC (other
than any Financing Statement filed

                                   Ann-1-3

<PAGE>

for informational purposes only) or comparable law of any jurisdiction to
evidence any of the foregoing except that any assignment pursuant to Section
5.02 is not a Lien.

         "Lifetime Rate Cap" for each Mortgage Loan whose related Mortgage
Note provides for a lifetime rate cap means the maximum Loan Rate permitted
over the life of the Mortgage Loan under the terms of the related Credit Line
Agreement, as shown on the Mortgage Loan Schedule.

         "Liquidated Mortgage Loan" for any Payment Date means any Mortgage
Loan in respect of which the Master Servicer has determined, in accordance
with the servicing procedures specified in this Agreement, as of the end of
the related Collection Period, that all Liquidation Proceeds which it expects
to recover with respect to the disposition of the Mortgage Loan or the related
REO have been recovered.

         "Liquidation Expenses" means out-of-pocket expenses (exclusive of
overhead) that are incurred by the Master Servicer in connection with the
liquidation of any Mortgage Loan and not recovered under any insurance policy,
including legal fees and expenses, any unreimbursed amount expended pursuant
to Section 3.06 (including amounts advanced to correct defaults on any
mortgage loan which is senior to the Mortgage Loan and amounts advanced to
keep current or pay off a mortgage loan that is senior to the Mortgage Loan)
respecting the related Mortgage Loan and any related and unreimbursed
expenditures with respect to real estate property taxes, water or sewer taxes,
condominium association dues, property restoration or preservation or
insurance against casualty, loss or damage.

         "Liquidation Proceeds" means proceeds (including Insurance Proceeds
but not including amounts drawn under the Policy) received in connection with
the liquidation of any Mortgage Loan or related REO, whether through trustee's
sale, foreclosure sale or otherwise.

         "Loan Rate Cap" for each Mortgage Loan means the lesser of (i) the
Lifetime Rate Cap or (ii) the applicable state usury ceiling.

         "Loan-to-Value Ratio" for any date of determination for any mortgage
loan means a fraction whose numerator is the outstanding principal balance of
the mortgage loan as of the date of determination and whose denominator is the
Valuation of the related Mortgaged Property.

         "Master Servicer" means [Countrywide Home Loans, Inc., a New York
corporation] and any successor to it and any successor under this Agreement.

         "Minimum Monthly Payment" for any Mortgage Loan and any month means
the minimum amount required to be paid by the related mortgagor in that month.

         "Net Liquidation Proceeds" for any Liquidated Mortgage Loan means
Liquidation Proceeds net of Liquidation Expenses.

         "Officer's Certificate" means a certificate (i) signed by the
Chairman of the Board, the Vice Chairman of the Board, the President, a
Managing Director, a Vice President (however denominated), an Assistant Vice
President, the Treasurer, the Secretary, or one of the Assistant

                                   Ann-1-4

<PAGE>

Treasurers or Assistant Secretaries of the Depositor, the Sponsor, the
Transferor, or the Master Servicer, or (ii) if provided for in this Agreement,
signed by a Servicing Officer.

         "Opinion of Counsel" means a written opinion of counsel acceptable to
the Indenture Trustee, who may be in-house counsel for the Depositor, the
Sponsor, the Master Servicer, or the Transferor (except that any opinion
pursuant to Section 5.04 or relating to taxation must be an opinion of
independent outside counsel) and who, in the case of opinions delivered to the
Credit Enhancer or the Rating Agency, is reasonably acceptable to it.

         "Purchase Price" with respect to any Mortgage Loan required to be
purchased by the Sponsor pursuant to Section 2.03 or 2.04 or purchased at the
option of the Master Servicer pursuant to Section 3.01 or 3.06 means an amount
equal to the sum of

                  (i) 100% of the unpaid principal balance of the Mortgage
         Loan on the date of such purchase,

                  (ii) accrued interest on the Mortgage Loan at the applicable
         Mortgage Rate (or at the applicable Adjusted Mortgage Rate if (x) the
         purchaser is the Master Servicer or (y) if the purchaser is
         Countrywide and Countrywide is an affiliate of the Master Servicer)
         from the date through which interest was last paid by the Mortgagor
         to the Due Date in the month in which the Purchase Price is to be
         distributed to Noteholders, and

                  (iii) in the case of any Mortgage Loan required to be
         purchased by the Sponsor because of, or that arises out of, a
         violation of any predatory or abusive lending law with respect to the
         related Mortgage Loan, any costs and damages incurred by the Trust
         relating to such violation of any predatory or abusive lending law
         with respect to the related Mortgage Loan.

         "REO" means a Mortgaged Property that is acquired by the Trust in
foreclosure or by deed in lieu of foreclosure.

         "Seller" means any Seller of Mortgage Loans pursuant to the Purchase
Agreement.

         "Servicing Certificate" means a certificate completed and executed by
a Servicing Officer in accordance with Section 4.01.

         "Servicing Officer" means any officer of the Master Servicer involved
in, or responsible for, the administration and servicing of the Mortgage Loans
whose name and specimen signature appear on a list of servicing officers
furnished to the Indenture Trustee (with a copy to the Credit Enhancer) by the
Master Servicer on the Closing Date, as the list may be amended from time to
time.

         "Sponsor" means [Countrywide Home Loans, Inc., a New York
corporation] and any successor to it.

         "Transfer Date" has the meaning given to it in Section 2.06.

         "Transfer Deficiency" with respect to a Loan Group means that the
excess of the Adjusted Loan Group Balance of that Loan Group over the Note
Principal Balance of the

                                   Ann-1-5
<PAGE>

related Class of Notes after a retransfer of a Mortgage Loan in the related
Loan Group pursuant to Section 2.02(b) or 2.04(d) would be less than the
greater of the related Minimum Transferor Interest and the related Required
Transferor Subordinated Amount.

         The amount of any Transfer Deficiency with respect to a Loan Group is
the lesser of

                  o the Asset Balance of the Defective Mortgage Loan and

                  o the excess of

                           o the greater of the related Minimum Transferor
                  Interest and the related Required Transferor Subordinated
                  Amount over

                           o the excess of the Adjusted Loan Group Balance of
                  that Loan Group over the Note Principal Balance of the
                  related Class of Notes after a retransfer of a Mortgage Loan
                  pursuant to Section 2.02(b) or 2.04(d), without taking into
                  account the Asset Balance of any Eligible Substitute
                  Mortgage Loans transferred to the Trust in connection with
                  the Transfer Deficiency.

         In any computation involving a Mortgage Loan required to be purchased
by the Sponsor because of, or arising out of, a violation of any predatory or
abusive lending law with respect to the Mortgage Loan, the Transferor Interest
shall be reduced for any costs and damages incurred by the Trust relating to
the violation of any predatory or abusive lending law with respect to the
Mortgage Loan.

         "Transfer Deposit Amount" has the meaning given to it in Section
2.07.

         "Transfer Notice Date" has the meaning given to it in Section 2.06.

         "Valuation" of any Mortgaged Property means the lesser of (i) the
Appraised Value of the Mortgaged Property and (ii) in the case of a Mortgaged
Property purchased within one year of the origination of the related Mortgage
Loan, the purchase price of the Mortgaged Property.

                                   Ann-1-6
<PAGE>

         The following have the meanings given to them in the Indenture:

Accelerated Principal Payment Amount          Managed Amortization Period
Additional Balance                            Maximum Rate
Additional Home Equity Loans                  MERS
Additional Loan Account                       MERS(R) System
Adjusted Loan Group Balance                   MIN
Allocated Transferor Interest                 Minimum Transferor Interest
Asset Balance                                 MOM Loan
Assignment of Mortgage                        Moody's
Available Transferor Subordinated Amount      Mortgage File
Basis Risk Carryforward                       Mortgage Loan
Business Day                                  Mortgage Loan Schedule
Closing Date                                  Mortgage Note
Code                                          Mortgaged Property
Collection Period                             Note
Corporate Trust Office                        Note Rate
Credit Enhancement Draw Amount                Note Interest
Credit Enhancer                               Note Principal Balance
Credit Enhancer Default                       Noteholder or Holder
Credit Limit                                  Note Owner
Credit Line Agreement                         Note Register and Note Registrar
Custodial Agreement                           Original Note Principal Balance
Cut-off Date                                  Outstanding Amount
Cut-off Date Asset Balance                    Paying Agent
Determination Date                            Payment Date
Eligible Account                              Policy
Eligible Investments                          Principal Collections
Guaranteed Principal Payment Amount           Purchase Agreement
Indenture Trustee                             Rapid Amortization Event
Insolvency Event                              Rating Agency
Insurance Agreement                           Rating Agency Condition
Interest Collections                          Required Transferor Subordinated
Interest Formula Rate                            Amount
Interest Period                               Responsible Officer
Investor Fixed Allocation Percentage          Scheduled Principal Collections
Investor Floating Allocation Percentage          Payment Amount
Investor Interest Collections                 Servicing Fee
Investor Loss Amount                          Standard & Poor's
Investor Loss Reduction Amount                Transferor
Investor Principal Collections                Transferor Certificates
Issuer Request                                Transferor Interest
Loan Group                                    Transferor Principal Collections
Loan Group Balance                            Trust
Loan Rate                                     Trust Agreement

                                   Ann-1-7
<PAGE>

UCC
Unpaid Investor Interest Shortfall
Weighted Average Net Loan Rate

                                   Ann-1-8
<PAGE>

                                                                       ANNEX 2

                                ADOPTION ANNEX

         The initial aggregate principal amount of the Notes is $____________,
the initial aggregate principal amount of the Class [1-A] Notes is
$_____________, and the initial aggregate principal amount of the Class [2-A]
Notes is $_____________.

         The title of the Collection Account is "___________________, as
Indenture Trustee, Collection Account in trust for the registered holders of
Revolving Home Equity Loan Asset Backed Notes, Series 200_-_ and
______________________."

         The date on which the Master Servicer delivers the Officer's
Certificate in each year is ___________, and the first Officer's Certificate
pursuant to Section 3.09 is __________, 200_.

         The date on which the Master Servicer delivers the annual servicing
report in each year is ____________, and the first annual servicing report
pursuant to Section 3.10 is ___________, 200_.

                                    Ann-2-1EXHIBIT 10.1

==============================================================================

                        [COUNTRYWIDE HOME LOANS, INC.]
                                   a Seller

                             [------------------]
                                   a Seller

                                  CWHEQ, INC.
                                   Purchaser

                      ----------------------------------

                              PURCHASE AGREEMENT
                        Dated as of ____________, 200_

                      ----------------------------------

                 REVOLVING HOME EQUITY LOAN ASSET BACKED NOTES
                                 Series 200_-_

==============================================================================

<PAGE>

<TABLE>
<CAPTION>

                                            TABLE OF CONTENTS

                                                                                                    Page

<S>                   <C>                                                                       <C>
ARTICLE I DEFINITIONS..................................................................................1
     Section 1.01.    Definitions......................................................................1

ARTICLE II SALE OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE...........................................2
     Section 2.01.    Sale of the Mortgage Loans.......................................................2
     Section 2.02.    Obligations of Sellers Upon Sale.................................................3
     Section 2.03.    Payment of Purchase Price for the Mortgage Loans.................................6

ARTICLE III REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH........................................6
     Section 3.01.    Seller Representations and Warranties............................................6
     Section 3.02.    Seller Representations and Warranties Relating to the Mortgage Loans.............8

ARTICLE IV SELLERS' COVENANTS.........................................................................21
     Section 4.01.    Covenants of the Sellers........................................................21

ARTICLE V SERVICING...................................................................................21
     Section 5.01.    Servicing.......................................................................21

ARTICLE VI TERMINATION................................................................................21
     Section 6.01.    Termination.....................................................................21

ARTICLE VII MISCELLANEOUS PROVISIONS..................................................................22
     Section 7.01.    Amendment.......................................................................22
     Section 7.02.    Governing Law...................................................................22
     Section 7.03.    Notices.........................................................................22
     Section 7.04.    Severability of Provisions......................................................23
     Section 7.05.    Counterparts....................................................................23
     Section 7.06.    Further Agreements..............................................................23
     Section 7.07.    Successors and Assigns: Assignment of Purchase Agreement........................23
     Section 7.08.    Survival........................................................................24

                                                    i

<PAGE>

SCHEDULES AND ANNEXES

Schedule I           MORTGAGE LOAN SCHEDULE......................................................Sch-I-1
Schedule II          STANDARD & POOR'S GLOSSARY.................................................Sch-II-1
Annex 1              ADOPTION ANNEX..............................................................Ann-1-1
</TABLE>

                                                   ii

<PAGE>

         THIS PURCHASE AGREEMENT, dated as of ____________, 200_ (the
"Agreement"), between [COUNTRYWIDE HOME LOANS, INC., a New York corporation],
as a seller ("[CHL]" or a "Seller"), __________________, a ______________
corporation, as a seller ("___________" or a "Seller," and together with
[CHL], the "Sellers"), and CWHEQ, INC., a Delaware corporation (the
"Purchaser"),

                                  WITNESSETH:

         WHEREAS, each Seller is the owner of the applicable notes or other
evidence of indebtedness indicated on Schedule I as owned by that Seller, and
certain other notes or other evidence of indebtedness made or to be made in
the future, and Related Documentation; and

         WHEREAS, by the date of their transfer, each Seller will own the
mortgages on the properties securing the Mortgage Loans indicated on Schedule
I as owned by that Seller, including rights to (a) any property acquired by
foreclosure or deed in lieu of foreclosure or otherwise and (b) the proceeds
of any hazard insurance policies on the Mortgaged Properties; and

         WHEREAS, each Seller wants to sell its Mortgage Loans to the
Purchaser pursuant to this Agreement; and

         WHEREAS, pursuant to the Sale and Servicing Agreement, of even date
with this Agreement (the "Sale and Servicing Agreement"), among the Purchaser,
as depositor, [CHL], as sponsor and master servicer, the Trust, and the
Indenture Trustee, the Purchaser will transfer the Mortgage Loans to the
Trust;

         NOW, THEREFORE, the parties agree as follows.

                                   ARTICLE I

                                  DEFINITIONS

         Section 1.01. Definitions.

         Capitalized terms used in this Agreement that are not otherwise
defined have the meanings given to them in the Indenture, and if not defined
there, in the Sale and Servicing Agreement. In addition, Section 1.04 (Rules
of Construction) of the Indenture is incorporated by reference with
appropriate substitution of this Agreement for references in that Section to
the Indenture so that the language of that Section will read appropriately as
applying to this Agreement.

<PAGE>

                                  ARTICLE II

               SALE OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE

         Section 2.01. Sale of the Mortgage Loans.

         (a) The Mortgage Loans. Concurrently with the execution and delivery
of this Agreement, [CHL], with respect to each Mortgage Loan it owns as
indicated on Schedule I, hereby transfers to the Purchaser, without recourse,
all of its right, title, and interest existing now or in the future in

                  (1) that Mortgage Loan, including its Asset Balance
         (including all Additional Balances), the related Mortgage File, all
         property that secures that Mortgage Loan, and all collections
         received on it after the Cut-off Date (excluding payments due by the
         Cut-off Date);

                  (2) property that secured that Mortgage Loan that is
         acquired by foreclosure or deed in lieu of foreclosure;

                  (3) its rights under the hazard insurance policies related
         to the mortgages that secure the Mortgage Loans;

                  (4) all rights under any guaranty executed in connection
         with that Mortgage Loan;

                  (5) all other assets included or to be included in the Trust
         for the benefit of the Noteholders and the Credit Enhancer; and

                  (6) all proceeds of the foregoing.

         [___________], with respect to each Mortgage Loan it owns as
indicated on Schedule I, hereby transfers to the Purchaser, without recourse,
all of its right, title, and interest existing now or in the future in

                  (1) that Mortgage Loan, including its Asset Balance
         (including all Additional Balances), the related Mortgage File, all
         property that secures that Mortgage Loan, and all collections
         received on it after the Cut-off Date (excluding payments due by the
         Cut-off Date);

                  (2) property that secured that Mortgage Loan that is
         acquired by foreclosure or deed in lieu of foreclosure;

                  (3) its rights under the hazard insurance policies related
         to the mortgages that secure the Mortgage Loans;

                  (4) all rights under any guaranty executed in connection
         with that Mortgage Loan;

                                      2
<PAGE>

                  (5) all other assets included or to be included in the Trust
         for the benefit of the Noteholders and the Credit Enhancer; and

                  (6) all proceeds of the foregoing.

         (b) By the sale of a Mortgage Loan and its Additional Balances, each
Seller has sold to the Purchaser, and the Purchaser has purchased from each
Seller, each future draw of new borrowing under the related Credit Line
Agreement. The Purchaser shall pay the applicable Seller for each Additional
Balance in cash in an amount equal to the principal amount of the Additional
Balance as it arises. The Trust, the applicable Seller, and the Purchaser may
agree to a netting arrangement in connection with this transaction, when
appropriate, rather than actually moving cash.

         Section 2.02. Obligations of Sellers Upon Sale.

         In connection with the transfers pursuant to Section 2.01(a), each
Seller further agrees, at its own expense:

         (a) to deliver to the Purchaser by the Closing Date a Mortgage Loan
Schedule containing an accurate list of all Mortgage Loans sold by it,
specifying for each Mortgage Loan, among other things, its account number and
its Cut-off Date Asset Balance; and

         (b) to indicate in its books and records that the applicable Mortgage
Loans have been sold to the Indenture Trustee, as assignee of the Purchaser,
pursuant to this Agreement by the Closing Date for the Mortgage Loans.

         The Mortgage Loan Schedule containing the Mortgage Loans sold by both
Sellers is Exhibit A to the Sale and Servicing Agreement and shall also be
attached as Schedule I to this Agreement and is hereby incorporated into this
Agreement.

         Each Seller agrees to perfect and protect the Purchaser's interest in
each Mortgage Loan transferred by it pursuant to Section 2.01(a) and its
proceeds by preparing, executing, and filing a UCC1 Financing Statement with
the Secretary of State in the State of New York describing the Mortgage Loans
and naming the applicable Seller as debtor and the Purchaser as secured party
and indicating that the Mortgage Loans have been assigned to the Trust and all
necessary Continuation Statements and any additional UCC1 Financing Statements
due to a change in the name or the state of incorporation of that Seller. The
Financing Statement shall be filed by the Closing Date. This Financing
Statement will state in bold-faced type that a purchase of the Mortgage Loans
included in the collateral covered by the Financing Statement from the debtor
will violate the rights of the secured party and its assignee.

         The Purchaser agrees to perfect and protect the Trust's interest in
each Mortgage Loan and its proceeds by preparing, executing, and filing a UCC1
Financing Statement with the

                                      3
<PAGE>

Secretary of State in the State of Delaware describing the Mortgage Loans and
naming the Purchaser as debtor and the Trust as secured party (and indicating
that the Mortgage Loans have been pledged to the Indenture Trustee) and all
necessary Continuation Statements and any additional UCC1 Financing Statements
due to a change in the name or the state of incorporation of the Purchaser.
The Financing Statement shall be filed by the Closing Date. This Financing
Statement will state in bold-faced type that a purchase of the Mortgage Loans
included in the collateral covered by the Financing Statement from the debtor
will violate the rights of the secured party and its assignee.

         In connection with any transfer by each Seller, it shall deliver to
the order of the Purchaser the following documents for each Mortgage Loan
transferred by that Seller (the "Related Documentation"):

                  (1) the original Mortgage Note endorsed in blank or, if the
         original Mortgage Note has been lost or destroyed and not replaced,
         an original lost note affidavit from the Seller stating that the
         original Mortgage Note was lost, misplaced, or destroyed, together
         with a copy of the related Mortgage Note;

                  (2) unless the Mortgage Loan is registered on the MERS(R)
         System, an original assignment of mortgage in blank in recordable
         form;

                  (3) the original recorded mortgage with evidence of
         recording on it (noting the presence of the MIN of the Mortgage Loan
         and language indicating that the Mortgage Loan is a MOM Loan if the
         Mortgage Loan is a MOM Loan) or, if the original recorded mortgage
         with evidence of recording on it cannot be delivered by the Closing
         Date because of a delay caused by the public recording office where
         the original Mortgage has been delivered for recordation or because
         the original Mortgage has been lost, the Seller shall deliver to the
         Indenture Trustee an accurate copy of the mortgage, together with (i)
         when the delay is caused by the public recording office, an Officer's
         Certificate of the Seller or the Purchaser stating that the original
         mortgage has been dispatched to the appropriate public recording
         official or (ii) when the original mortgage has been lost, a
         certificate by the appropriate county recording office where the
         mortgage is recorded;

                  (4) any original intervening assignments needed for a
         complete chain of title to the Trust with evidence of recording on
         them, or, if any original intervening assignment has not been
         returned from the applicable recording office or has been lost, an
         accurate copy of it, together with (i) when the delay is caused by
         the public recording office, an Officer's Certificate of the Seller
         or the Purchaser stating that the original intervening assignment has
         been dispatched to the appropriate public recording official for
         recordation or (ii) when the original intervening assignment has been
         lost, a certificate by the appropriate county recording office where
         the mortgage is recorded;

                                      4
<PAGE>

                  (5) a title policy for each Mortgage Loan with a Credit
         Limit in excess of $100,000;

                  (6) the original of any guaranty executed in connection with
         the Mortgage Note;

                  (7) the original of each assumption, modification,
         consolidation, or substitution agreement relating to the Mortgage
         Loan; and

                  (8) any security agreement, chattel mortgage, or equivalent
         instrument executed in connection with the Mortgage.

         The Related Documentation will be delivered:

               (1) no later than the Closing Date, with respect to no less
         than [50%] of the Mortgage Loans in each Loan Group,

               (2) no later than the [twentieth] day after the Closing Date,
         with respect to no less than [40%] of the Mortgage Loans in each Loan
         Group in addition to those delivered on the Closing Date, and

               (3) within [thirty] days following the Closing Date, with
         respect to the remaining Mortgage Loans.

         Each Seller confirms to the Purchaser that, as of the Closing Date,
it has caused the portions of the Electronic Ledger relating to the Mortgage
Loans maintained by that Seller to be clearly and unambiguously marked to
indicate that the Mortgage Loans have been sold to the Purchaser, and sold by
the Purchaser to the Trust, and Granted by the Trust to the Indenture Trustee,
and that a purchase of those Mortgage Loans from that Seller or the Purchaser
will violate the rights of the Trust, as secured party with respect to those
Mortgage Loans. By the applicable date of substitution, that Seller shall
cause the portions of the Electronic Ledgers relating to the relevant Eligible
Substitute Mortgage Loans, as the case may be, to be clearly and unambiguously
marked, and shall make appropriate entries in its general accounting records,
to indicate that those Mortgage Loans have been transferred to the Trust at
the direction of the Purchaser and that they have been Granted by the Trust to
the Indenture Trustee, and that a purchase of the Mortgage Loans from that
Seller or the Purchaser will violate the rights of the Trust, as secured party
with respect to those Mortgage Loans.

         The Purchaser accepts all right, title, and interest of each of the
Sellers existing now or in the future in the Mortgage Loans and other property
transferred to it pursuant to this Section.

         Notwithstanding the characterization of the Notes as debt for
federal, state, and local income and franchise tax purposes, the transfer of
the Mortgage Loans is a sale by each Seller to the Purchaser of all its
interest in the applicable Mortgage Loans and other property described

                                      5
<PAGE>

above. However, to provide for the possibility that either transfer might be
characterized as a transfer for security and not as a sale, each Seller hereby
Grants to the Purchaser a Security Interest in all of its right, title, and
interest in the applicable Mortgage Loans and other property described above,
whether existing now or in the future, to secure all of that its obligations
under this Agreement; and this Agreement shall constitute a Security Agreement
under applicable law.

         Section 2.03. Payment of Purchase Price for the Mortgage Loans.

         In consideration of the sale of the Mortgage Loans from each of the
Sellers to the Purchaser on the Closing Date, the Purchaser agrees to transfer
to the applicable Seller on the Closing Date the purchase price for the
applicable Mortgage Loans provided in the Adoption Annex attached as Annex 1
to this Agreement (the "Adoption Annex").

                                 ARTICLE III

              REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH

         Section 3.01. Seller Representations and Warranties.

         (a) [CHL] represents and warrants to the Purchaser as of the Closing
Date:

                  (1) [CHL] is a New York corporation, validly existing and in
         good standing under the laws of the State of New York, and has the
         corporate power to own its assets and to transact the business in
         which it is currently engaged. [CHL] is duly qualified to do business
         as a foreign corporation and is in good standing in each jurisdiction
         in which the character of the business transacted by it or any
         properties owned or leased by it requires such qualification and in
         which the failure so to qualify would have a material adverse effect
         on the business, properties, assets, or condition (financial or
         other) of [CHL];

                  (2) [CHL] has the power and authority to make, execute,
         deliver, and perform this Agreement and all of the transactions
         contemplated by this Agreement, and has taken all necessary corporate
         action to authorize the execution, delivery, and performance of this
         Agreement. When executed and delivered, this Agreement will
         constitute the valid and legally binding obligation of [CHL]
         enforceable in accordance with its terms;

                  (3) [CHL] is not required to obtain the consent of any other
         party or any consent, license, approval or authorization from, or
         registration or declaration with, any governmental authority, bureau,
         or agency in connection with the execution, delivery, performance,
         validity, or enforceability of this Agreement, except for any
         consents,

                                      6
<PAGE>

         licenses, approvals or authorizations, or registrations or
         declarations, that have been obtained or filed, as the case may be,
         before the Closing Date;

                  (4) The execution, delivery, and performance of this
         Agreement by the Seller will not violate any provision of any
         existing law or regulation or any order or decree of any court
         applicable to the Seller or any provision of the certificate of
         incorporation or bylaws of [CHL], or constitute a material breach of
         any mortgage, indenture, contract, or other agreement to which [CHL]
         is a party or by which [CHL] may be bound; and

                  (5) No litigation or administrative proceeding of or before
         any court, tribunal, or governmental body is currently pending, or to
         the knowledge of [CHL] threatened, against [CHL] or any of its
         properties or with respect to this Agreement or the Notes that in the
         opinion of [CHL] has a reasonable likelihood of resulting in a
         material adverse effect on the transactions contemplated by this
         Agreement.

         (b) [___________] represents and warrants to the Purchaser as of the
Closing Date:

                  (1) [___________] is a _____________ corporation, validly
         existing and in good standing under the laws of the State of
         Delaware, and has the corporate power to own its assets and to
         transact the business in which it is currently engaged. [___________]
         is duly qualified to do business as a foreign corporation and is in
         good standing in each jurisdiction in which the character of the
         business transacted by it or any properties owned or leased by it
         requires such qualification and in which the failure so to qualify
         would have a material adverse effect on the business, properties,
         assets, or condition (financial or other) of [___________].

                  (2) [___________] has the power and authority to make,
         execute, deliver, and perform this Agreement and all of the
         transactions contemplated by this Agreement, and has taken all
         necessary corporate action to authorize the execution, delivery, and
         performance of this Agreement. When executed and delivered, this
         Agreement will constitute the valid and legally binding obligation of
         [___________] enforceable in accordance with its terms;

                  (3) [___________] is not required to obtain the consent of
         any other party or any consent, license, approval or authorization
         from, or registration or declaration with, any governmental
         authority, bureau, or agency in connection with the execution,
         delivery, performance, validity, or enforceability of this Agreement,
         except for any consents, licenses, approvals or authorizations, or
         registrations or declarations, that have been obtained or filed, as
         the case may be, before the Closing Date;

                                      7

<PAGE>

                  (4) The execution, delivery, and performance of this
         Agreement by [___________] will not violate any provision of any
         existing law or regulation or any order or decree of any court
         applicable to [___________] or any provision of the certificate of
         incorporation or bylaws of [___________], or constitute a material
         breach of any mortgage, indenture, contract, or other agreement to
         which [___________] is a party or by which [___________] may be
         bound; and

                  (5) No litigation or administrative proceeding of or before
         any court, tribunal, or governmental body is currently pending, or to
         the knowledge of [___________] threatened, against [___________] or
         any of its properties or with respect to this Agreement or the Notes
         that in the opinion of [___________] has a reasonable likelihood of
         resulting in a material adverse effect on the transactions
         contemplated by this Agreement.

         (c) The representations and warranties in this Section 3.01 shall
survive the transfer of the Mortgage Loans to the Purchaser. Each Seller shall
cure a breach of any of the representations and warranties of such Seller in
accordance with the Sale and Servicing Agreement. The remedy specified in the
Sale and Servicing Agreement shall constitute the sole remedy against a Seller
with respect to any breach.

         Section 3.02. Seller Representations and Warranties Relating to the
Mortgage Loans.

         (a) [CHL] represents and warrants to the Purchaser as of the Cut-off
Date, unless specifically stated otherwise:

                  (1) As of the Closing Date (or, with respect to any Eligible
         Substitute Mortgage Loan, the applicable date of substitution) this
         Agreement constitutes a valid and legally binding obligation of the
         applicable Seller, enforceable against such Seller in accordance with
         its terms.

                  (2) As of the Closing Date (or, with respect to any Eligible
         Substitute Mortgage Loan, the applicable date of substitution),
         either

                           (A) this Agreement constitutes a valid transfer to
                  the Purchaser of all right, title, and interest of each of
                  the Sellers in the Mortgage Loans, and all collections
                  received in respect of the Mortgage Loans after the Cut-off
                  Date (excluding payments due by the Cut-off Date), all
                  proceeds of the Mortgage Loans, and all other property
                  specified in Section 2.01(a) or (b), and the Sale and
                  Servicing Agreement constitutes a valid transfer to the
                  Trust of the foregoing property and all other property
                  specified in Section 2.01(a) or (b) of the Sale and
                  Servicing Agreement such that, on execution of the Sale and
                  Servicing Agreement, it is owned by the Trust free of all
                  liens and other

                                      8
<PAGE>

                  encumbrances, and is part of the corpus of the Trust
                  transferred to the Trust by the Purchaser, and upon payment
                  for the Additional Balances, this Agreement and the Sale and
                  Servicing Agreement will constitute a valid transfer to the
                  Trust of all interest of each of the Sellers in the
                  Additional Balances, all proceeds of the Additional
                  Balances, and all other property specified in Section
                  2.01(a) of the Sale and Servicing Agreement relating to the
                  Additional Balances free of all liens and other
                  encumbrances, and the Indenture constitutes a valid Grant of
                  a Security Interest to the Indenture Trustee in that
                  property, and the Indenture Trustee has a first priority
                  perfected Security Interest in the property, subject to the
                  effect of Section 9-315 of the UCC with respect to
                  collections on the Mortgage Loans that are deposited in the
                  Collection Account in accordance with the next to last
                  paragraph of Section 3.02(b) of the Sale and Servicing
                  Agreement, or

                           (B) this Agreement or the Sale and Servicing
                  Agreement, as appropriate, constitutes a Grant of a Security
                  Interest to the Owner Trustee on behalf of the Trust and the
                  Indenture constitutes a Grant of a Security Interest to the
                  Indenture Trustee in the property described in clause (A)
                  above. If this Agreement and the Sale and Servicing
                  Agreement constitute the Grant of a Security Interest to the
                  Trust and the Indenture constitutes a Grant of a Security
                  Interest to the Indenture Trustee in such property, the
                  Indenture Trustee will have a first priority perfected
                  Security Interest in the property, subject to the effect of
                  Section 9-315 of the UCC with respect to collections on the
                  Mortgage Loans that are deposited in the Collection Account
                  in accordance with the next to last paragraph of Section
                  3.02(b) of the Sale and Servicing Agreement. This Security
                  Interest is enforceable as such against creditors of and
                  purchasers from the Trust, the Purchaser, and each of the
                  Sellers.

                  (3) No Seller has authorized the filing of or is aware of
         any financing statements against either Seller that include a
         description of collateral covering the Collateral other than any
         financing statement (A) relating to the Security Interests granted to
         the Depositor, the Trust, or the Indenture Trustee under this
         Agreement, pursuant to the Sale and Servicing Agreement, or pursuant
         to the Indenture, (B) that has been terminated, or (C) that names the
         Depositor, the Trust, or the Indenture Trustee as secured party.

                  (4) As of the Closing Date, the information in the Mortgage
         Loan Schedule for the Mortgage Loans is correct in all material
         respects. As of the applicable date of substitution for an Eligible
         Substitute Mortgage Loan, the information with respect to the
         Eligible Substitute Mortgage Loan in the Mortgage Loan Schedule is
         correct in all

                                      9
<PAGE>

         material respects. As of the date any Additional Balance is created,
         the information as to the Mortgage Loan identification number and the
         Additional Balance of that Mortgage Loan reported for inclusion in
         the Mortgage Loan Schedule is correct in all material respects.

                  (5) The Mortgage Loans have not been assigned or pledged,
         and the related Seller is their sole owner and holder free of any
         liens, claims, encumbrances, participation interests, equities,
         pledges, charges, or Security Interests of any nature, and has full
         authority, under all governmental and regulatory bodies having
         jurisdiction over the ownership of the Mortgage Loans, to transfer
         them pursuant to this Agreement.

                  (6) As of the Closing Date (or, with respect to any Eligible
         Substitute Mortgage Loan, the applicable date of substitution), the
         related Mortgage Note and the mortgage for each Mortgage Loan have
         not been assigned or pledged, and immediately before the sale of the
         Mortgage Loans to the Purchaser, the related Seller was the sole
         owner and holder of the Mortgage Loan free of any liens, claims,
         encumbrances, participation interests, equities, pledges, charges, or
         Security Interests of any nature, and has full authority, under all
         governmental and regulatory bodies having jurisdiction over the
         ownership of the Mortgage Loans, to transfer it pursuant to this
         Agreement.

                  (7) As of the Closing Date (or, with respect to any Eligible
         Substitute Mortgage Loan, the applicable date of substitution), the
         related mortgage is a valid and subsisting first or second lien on
         the property described in it, as shown on the Mortgage Loan Schedule,
         and as of the Cut-off Date or date of substitution, as applicable,
         the related Mortgaged Property is free of all encumbrances and liens
         having priority over the first or second lien, as applicable, of the
         mortgage except for liens for

                           (A) real estate taxes and special assessments not
                  yet delinquent;

                           (B) any first mortgage loan secured by the
                  Mortgaged Property and specified on the Mortgage Loan
                  Schedule;

                           (C) covenants, conditions and restrictions, rights
                  of way, easements, and other matters of public record as of
                  the date of recording that are acceptable to mortgage
                  lending institutions generally; and

                           (D) other matters to which like properties are
                  commonly subject that do not materially interfere with the
                  benefits of the security intended to be provided by the
                  mortgage.

                  (8) As of the Closing Date (or, with respect to any Eligible
         Substitute Mortgage Loan, the applicable date of substitution), no
         obligor has a valid offset, defense, or counterclaim under any Credit
         Line Agreement or mortgage.

                  (9) To the best knowledge of [CHL], as of the Closing Date
         (or, with respect to any Eligible Substitute Mortgage Loan, the
         applicable date of substitution),

                                      10
<PAGE>

         no related Mortgaged Property has any delinquent recording or other
         tax or fee or assessment lien or governmental charge against it.

                  (10) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), no proceeding is pending or, to the best knowledge of
         [CHL], threatened for the total or partial condemnation of the
         related Mortgaged Property, and the property is free of material
         damage and is in good repair.

                  (11) To the best knowledge of [CHL], as of the Closing Date
         (or, with respect to any Eligible Substitute Mortgage Loan, the
         applicable date of substitution), no mechanics' or similar liens or
         claims have been filed for work, labor, or material affecting the
         related Mortgaged Property that are, or may be, liens prior or equal
         to the lien of the related mortgage, except liens that are fully
         insured against by the title insurance policy referred to in clause
         (16).

                  (12) No Minimum Monthly Payment on a Mortgage Loan being
         transferred on the Closing Date is more than 59 days delinquent
         (measured on a contractual basis) and no Minimum Monthly Payment on
         any other Mortgage Loan subsequently being transferred is more than
         30 days delinquent (measured on a contractual basis) on the relevant
         transfer date and for each Loan Group no more than the applicable
         percentage of the Mortgage Loans in that Loan Group specified in the
         Adoption Annex being transferred on the Closing Date (by Cut-off Date
         Loan Balance) were 30-59 days delinquent (measured on a contractual
         basis).

                  (13) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), the Mortgage File for each Mortgage Loan contains each
         of the documents specified to be included in it.

                  (14) At origination, each Mortgage Loan and the related
         Mortgage Note complied in all material respects with applicable
         local, state, and federal laws, including all applicable predatory
         and abusive lending laws, usury, truth-in-lending, real estate
         settlement procedures, consumer credit protection, equal credit
         opportunity, or disclosure laws applicable to the Mortgage Loan, and
         the servicing practices used by the Master Servicer with respect to
         each Mortgage Loan have been consistent with the practices and the
         degree of skill and care the Master Servicer exercises in servicing
         for itself loans that it owns that are comparable to the Mortgage
         Loans.

                  (15) As of the Closing Date, (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), no Mortgage Loan is a High Cost Loan or Covered Loan,
         as applicable, and no Mortgage Loan originated on or after October 1,
         2002 through March 6, 2003 is governed by the Georgia Fair Lending
         Act; and "High Cost Loan" and "Covered Loan" have the meaning
         assigned to them in the Standard & Poor's LEVELS(R) Glossary attached
         as Schedule II (the "Glossary") where

                                      11

<PAGE>

                           (x) a "High Cost Loan" is each loan identified in
                  the column "Category under applicable anti-predatory lending
                  law" of the table entitled "Standard & Poor's High Cost Loan
                  Categorization" in the Glossary as each such loan is defined
                  in the applicable anti-predatory lending law of the state or
                  jurisdiction specified in such table and

                           (y) "Covered Loan" is each loan identified in the
                  column "Category under applicable anti-predatory lending
                  law" of the table entitled "Standard & Poor's Covered Loan
                  Categorization" in the Glossary as each such loan is defined
                  in the applicable anti-predatory lending law of the state or
                  jurisdiction specified in such table.

                  (16) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), either a lender's title insurance policy or binder was
         issued or a guaranty of title customary in the relevant jurisdiction
         was obtained, on the date of origination of the Mortgage Loan being
         transferred on the relevant date and each policy is valid and remains
         in full force.

                  (17) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), none of the Mortgaged Properties is a mobile home or a
         manufactured housing unit that is not considered or classified as
         part of the real estate under the laws of the jurisdiction in which
         it is located.

                  (18) No more than the percentage specified in the Adoption
         Annex of the Mortgage Loans in each Loan Group, by aggregate
         principal balance of the related Mortgage Loans, are secured by
         Mortgaged Properties located in one United States postal zip code.

                  (19) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), the Combined Loan-to-Value Ratio for each Mortgage
         Loan in each Loan Group was not in excess of the percentage specified
         in the Adoption Annex.

                  (20) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), no selection procedure reasonably believed by [CHL] to
         be adverse to the interests of the Transferor, the Noteholders, or
         the Credit Enhancer was used in selecting the Mortgage Loans.

                  (21) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), neither Seller has transferred the Mortgage Loans to
         the Trust with any intent to hinder, delay, or defraud any of its
         creditors.

                  (22) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), the Minimum Monthly Payment

                                      12
<PAGE>

         with respect to any Mortgage Loan is not less than the interest
         accrued at the applicable Loan Rate on the average daily Asset
         Balance during the interest period relating to the date on which the
         Minimum Monthly Payment is due.

                  (23) The Mortgage Notes constitute either "instruments" or
         "general intangibles" as defined in the UCC.

                  (24) By the Closing Date (or, within 30 days of the
         applicable date of substitution with respect to any Eligible
         Substitute Mortgage Loan), the Sponsor will file UCC1 financing
         statements in the proper filing office in the appropriate
         jurisdiction to perfect the Security Interest in the Collateral
         Granted under the Indenture.

                  (25) The Mortgage Notes that constitute or evidence the
         Collateral do not have any marks or notations indicating that they
         have been pledged, assigned, or otherwise transferred to any person
         other than the Purchaser, the Trust, or the Indenture Trustee. All
         financing statements filed or to be filed against each Seller in
         favor of the Purchaser, the Trust, or the Indenture Trustee in
         connection with this Agreement, the Sale and Servicing Agreement, or
         the Indenture describing the Collateral contain a statement to the
         following effect: "A purchase of the Mortgage Loans included in the
         collateral covered by this financing statement will violate the
         rights of the Purchaser, the Trust, or the Indenture Trustee."

                  (26) As of the Closing Date, [CHL] and [___________] will
         have received a written acknowledgement from the Custodian that is
         acting solely as agent of the Indenture Trustee.

                  (27) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), each Credit Line Agreement and each Mortgage Loan is
         an enforceable obligation of the related mortgagor.

                  (28) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution). No Seller has received a notice of default of any
         senior mortgage loan related to a Mortgaged Property that has not
         been cured by a party other than the Master Servicer.

                  (29) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), the definition of "prime rate" in each Credit Line
         Agreement relating to a Mortgage Loan does not differ materially from
         "the highest `prime rate' as published in the `Money Rates' table of
         The Wall Street Journal as of the first business day of the calendar
         month for the applicable interest rate adjustment date."

                  (30) The weighted average remaining term to maturity of the
         Mortgage Loans in each Loan Group on a contractual basis as of the
         Cut-off Date is approximately the number of months specified for that
         Loan Group in the Adoption

                                      13

<PAGE>

         Annex. On each date that the Loan Rates have been adjusted, interest
         rate adjustments on the Mortgage Loans were made in compliance with
         the related mortgage and Mortgage Note and applicable law. Over the
         term of each Mortgage Loan, the Loan Rate may not exceed the related
         Loan Rate Cap. The Loan Rate Cap for the Mortgage Loans ranges
         between the percentages specified in the Adoption Annex for that Loan
         Group and the weighted average Loan Rate Cap is approximately the
         percentage specified in the Adoption Annex for that Loan Group. The
         Gross Margins for the Mortgage Loans in each Loan Group range between
         the percentages specified in the Adoption Annex for that Loan Group
         and the weighted average Gross Margin is approximately the percentage
         specified in the Adoption Annex for that Loan Group as of the Cut-off
         Date. The Loan Rates on the Mortgage Loans in each Loan Group range
         between the percentages specified in the Adoption Annex for that Loan
         Group and the weighted average Loan Rate on the Mortgage Loans is
         approximately the percentage specified in the Adoption Annex for that
         Loan Group.

                  (31) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), each Mortgaged Property consists of a single parcel of
         real property with a one-to-four unit single family residence erected
         on it, or an individual condominium unit, planned unit development
         unit, or townhouse.

                  (32) No more than the percentage specified in the Adoption
         Annex (by Cut-off Date Loan Balance) for each Loan Group of the
         Mortgage Loans in the related Loan Group are secured by real property
         improved by individual condominium units, units in planned unit
         developments, townhouses, or two-to-four family residences erected on
         them, and at least the percentage specified in the Adoption Annex (by
         Cut-off Date Loan Balance) for each Loan Group of the Mortgage Loans
         in the related Loan Group are secured by real property with a
         detached one-family residence erected on them.

                  (33) The Credit Limits on the Mortgage Loans in each Loan
         Group range between approximately the dollar amounts specified in the
         Adoption Annex for that Loan Group with an average of approximately
         the dollar amount specified in the Adoption Annex for that Loan
         Group. As of the Cut-off Date, no Mortgage Loan in either Loan Group
         had a principal balance in excess of approximately the dollar amount
         specified in the Adoption Annex for that Loan Group and the average
         principal balance of the Mortgage Loans in each Loan Group is equal
         to approximately the dollar amounts specified in the Adoption Annex
         for that Loan Group.

                  (34) Approximately the percentages specified in the Adoption
         Annex of the Mortgage Loans, by aggregate principal balance as of the
         Cut-off Date, are secured by first and second liens.

                                      14

<PAGE>

                  (35) As of the Closing Date, no more than the percentage
         specified in the Adoption Annex for each Loan Group of the Mortgage
         Loans in the related Loan Group, by aggregate principal balance, were
         appraised electronically.

                  (36) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), no default exists under any Mortgage Note or Mortgage
         Loan and no event that, with the passage of time or with notice and
         the expiration of any grace or cure period, would constitute a
         default under any Mortgage Note or Mortgage Loan has occurred and
         been waived. As of the Closing Date (or, with respect to any Eligible
         Substitute Mortgage Loan, the applicable date of substitution), no
         modifications to the Mortgage Notes and Mortgage Loans have been made
         and not disclosed in the Mortgage Files.

                  (37) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), each Mortgage Loan was originated in accordance with
         the Sponsor's underwriting guidelines and the Sponsor had no
         knowledge of any fact that would have caused a reasonable originator
         of mortgage loans to conclude on the date of origination of each
         Mortgage Loan that each such Mortgage Loan would not be paid in full
         when due.

                  (38) To the best knowledge of [CHL] at the time of
         origination of each Mortgage Loan, no improvement located on or being
         part of the Mortgaged Property was in violation of any applicable
         zoning and subdivision laws or ordinances.

                  (39) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), any leasehold estate securing a Mortgage Loan has a
         term of not less than five years in excess of the term of the related
         Mortgage Loan.

                  (40) Based on the drawn balances of the Mortgage Loans, the
         Mortgage Loans had the characteristics set out in the Adoption Annex
         for each Loan Group in respect of the following: weighted average
         Combined Loan-to-Value Ratio; range of Combined Loan-to-Value Ratios;
         percentage of primary residences; weighted average FICO score; range
         of FICO scores; Weighted Average Net Loan Rate; range of net Loan
         Rates; weighted average original stated term to maturity; range of
         original term to maturity; range of remaining term to maturity;
         average drawn balance; weighted average utilization ratio; and
         percentage of the Mortgage Loans that have their respective Mortgaged
         Properties located in the top five states, measured by aggregate
         drawn balances.

                  (41) Any Mortgage Loan that has been modified in any manner
         has been so modified in accordance with the policies and procedures
         of the Master Servicer and in a

                                      15
<PAGE>

         manner that was permitted by the Sale and Servicing Agreement, the
         Indenture, and any other Transaction Document.

                  (42) Each Mortgage Loan was originated (within the meaning
         of Section 3(a)(41) of the Securities Exchange Act of 1934) by an
         entity that satisfied at the time of origination the requirements of
         Section 3(a)(41) of the Securities Exchange Act of 1934.

                  (43) At the time each Mortgage Loan was originated, each
         Seller was, and each Seller is an approved seller of conventional
         mortgage loans for Fannie Mae and Freddie Mac and is a mortgagee
         approved by the Secretary of Housing and Urban Development pursuant
         to Sections 203 and 211 of the National Housing Act.

                  (44) A lender's policy of title insurance together with a
         condominium endorsement and extended coverage endorsement, if
         applicable, in an amount at least equal to the principal balance of
         the related Mortgage Loan as of the Cut-off Date or a commitment
         (binder) to issue the same was effective on the date of the
         origination of each Mortgage Loan, each such policy is valid and
         remains in full force, and each such policy was issued by a title
         insurer qualified to do business in the jurisdiction where the
         Mortgaged Property is located and acceptable to Fannie Mae and
         Freddie Mac and is in a form acceptable to Fannie Mae and Freddie
         Mac, which policy insures the Sponsor and successor owners of
         indebtedness secured by the insured Mortgage, as to the first
         priority lien, of the Mortgage subject to the exceptions in paragraph
         (7) above.

                  (45) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution) the improvements on each Mortgaged Property are covered
         by a valid and existing hazard insurance policy with a generally
         acceptable carrier that provides for fire and extended coverage and
         coverage for such other hazards as are customary in the area where
         the Mortgaged Property is located in an amount that is at least equal
         to the lesser of (i) the maximum insurable value of the improvements
         securing the Mortgage Loan or (ii) the greater of (a) the outstanding
         principal balance of the Mortgage Loan and (b) an amount such that
         the proceeds of the policy will be sufficient to prevent the
         Mortgagor or the mortgagee from becoming a co-insurer. If the
         Mortgaged Property is a condominium unit, it is included under the
         coverage afforded by a blanket policy for the condominium unit. All
         such individual insurance policies and all flood policies referred to
         in item (46) below contain a standard mortgagee clause naming the
         Sponsor or the original mortgagee, and its successors in interest, as
         mortgagee, and the Sponsor has received no notice that any premiums
         due and payable thereon have not been paid, and the Mortgage
         obligates the Mortgagor thereunder to maintain all such insurance,
         including flood insurance, at the Mortgagor's expense, and upon the
         Mortgagor's failure to do so, authorizes the holder

                                      16
<PAGE>

         of the Mortgage to obtain and maintain such insurance at the
         Mortgagor's expense and to seek reimbursement therefor from the
         Mortgagor.

                  (46) If the Mortgaged Property is in an area identified in
         the Federal Register by the Federal Emergency Management Agency as
         having special flood hazards, a flood insurance policy in a form
         meeting the requirements of the current guidelines of the Flood
         Insurance Administration is in effect with respect to the Mortgaged
         Property with a generally acceptable carrier in an amount
         representing coverage not less than the least of (A) the outstanding
         principal balance of the Mortgage Loan and any mortgage loan senior
         to that Mortgage Loan from time to time, (B) the minimum amount
         required to compensate for damage or loss on a replacement cost
         basis, or (C) the maximum amount of insurance that is available under
         the National Flood Insurance Act of 1968.

                  (47) Each Mortgage Note and the related Mortgage are
         genuine, and each is the valid and legally binding obligation of its
         maker, enforceable in accordance with its terms and under applicable
         law, except that (a) its enforceability may be limited by bankruptcy,
         insolvency, moratorium, receivership, and other similar laws relating
         to creditors' rights generally and (b) the remedy of specific
         performance and injunctive and other forms of equitable relief may be
         subject to equitable defenses and to the discretion of the court
         before which any proceeding therefor may be brought. To the best of
         [CHL]'s knowledge, all parties to the Mortgage Note and the Mortgage
         had legal capacity to execute the Mortgage Note and the Mortgage and
         each Mortgage Note and Mortgage have been duly and properly executed
         by such parties.

                  (48) No Mortgage Loan has a shared appreciation feature, or
         other contingent interest feature.

                  (49) To the best of [CHL]'s knowledge, all of the
         improvements that were included for the purpose of determining the
         appraised value of the Mortgaged Property lie wholly within the
         boundaries and building restriction lines of the Mortgaged Property,
         and no improvements on adjoining properties encroach on the Mortgaged
         Property.

                  (50) To the best of [CHL]'s knowledge, all inspections,
         licenses, and certificates required to be made or issued with respect
         to all occupied portions of the Mortgaged Property and, with respect
         to the use and occupancy of the same, including certificates of
         occupancy and fire underwriting certificates, have been made or
         obtained from the appropriate authorities, unless their lack would
         not have a material adverse effect on the value of the Mortgaged
         Property, and the Mortgaged Property is lawfully occupied under
         applicable law.

                                      17
<PAGE>

                  (51) Each Mortgage contains customary and enforceable
         provisions that render the rights and remedies of its holder adequate
         for the realization against the Mortgaged Property of the benefits of
         the security intended to be provided by it, including, (i) in the
         case of a Mortgage designated as a deed of trust, by trustee's sale,
         and (ii) otherwise by judicial foreclosure.

                  (52) Before the approval of the Mortgage Loan application,
         an appraisal of the related Mortgaged Property was obtained from a
         qualified appraiser, duly appointed by the Sponsor, who had no
         interest, direct or indirect, in the Mortgaged Property or in any
         loan secured by the Mortgaged Property, and whose compensation is not
         affected by the approval or disapproval of the Mortgage Loan.

                  (53) Except for (A) payments in the nature of escrow
         payments, and (B) interest accruing from the date of the Mortgage
         Note or date of disbursement of the Mortgage proceeds, whichever is
         later, to the day that precedes by one month the Due Period of the
         first installment of principal and interest and taxes and insurance
         payments, the Sponsor has not advanced funds, or induced, solicited,
         or knowingly received any advance of funds by a party other than the
         Mortgagor, directly or indirectly, for the payment of any amount
         required by the Mortgage.

                  (54) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution) no foreclosure proceedings are pending against any
         Mortgaged Property and no Mortgage Loan is subject to any pending
         bankruptcy or insolvency proceeding.

                  (55) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), there is no homestead exemption available and
         enforceable that materially interferes with the right to sell any
         Mortgaged Property at a trustee's sale or the right to foreclose the
         related Mortgage.

                  (56) No borrower was required to purchase any single premium
         credit insurance policy (e.g., life, disability, accident,
         unemployment, or health insurance product) or debt cancellation
         agreement as a condition of obtaining the extension of credit. No
         borrower obtained a prepaid single-premium credit insurance policy
         (e.g., life, disability, accident, unemployment, mortgage, or health
         insurance) in connection with the origination of the Mortgage Loan.
         No proceeds from any Mortgage Loan were used to purchase debt
         cancellation agreements as part of the origination of, or as a
         condition to closing, the Mortgage Loan.

                  (57) The Mortgage Loans, individually and in the aggregate,
         conform in all material respects to their descriptions in the
         Prospectus Supplement.

                  (58) No Mortgage Loan is covered by the Home Ownership and
         Equity Protection Act of 1994.

                                      18
<PAGE>

                  (59) No Mortgage Loan originated on or after October 1, 2002
         and before March 7, 2003 is secured by Mortgaged Property located in
         the State of Georgia.

                  (60) As of the Closing Date (or, with respect to any
         Eligible Substitute Mortgage Loan, the applicable date of
         substitution), no Mortgage Loan is classified as (1) a "high cost"
         loan under the Home Ownership and Equity Protection Act of 1994 or
         (2) a "high cost," "threshold," "covered," "predatory," or similar
         loan under any other applicable state, federal, or local law that
         applies to mortgage loans (or a similar classified loan using
         different terminology under a law imposing heightened regulatory
         scrutiny or additional legal liability for residential mortgage loans
         having high interest rates, points, or fees).

                  (61) No proceeds from any Mortgage Loan were used to
         purchase single premium credit insurance policies as part of the
         origination of, or as a condition to closing, the Mortgage Loan.

                  (62) No subprime Mortgage Loan originated on or after
         October 1, 2002 will impose a prepayment premium after the third
         anniversary of the Mortgage Loan. No subprime Mortgage Loan
         originated before October 1, 2002, and no non-subprime Mortgage Loan,
         will impose a prepayment penalty after the fifth anniversary of the
         Mortgage Loan.

                  (63) The servicer for each Mortgage Loan has fully
         furnished, in accordance with the Fair Credit Reporting Act and its
         implementing regulations, accurate and complete information (i.e.,
         favorable and unfavorable) on its borrower credit files to Equifax,
         Experian, and Trans Union Credit Information Company on a monthly
         basis.

                  (64) All of the Mortgage Loans in the Loan Group specified
         in the Adoption Annex conform to Fannie Mae or Freddie Mac maximum
         principal balance (by credit limit) guidelines.

                  (65) With respect to all of the Mortgage Loans in Loan Group
         1 originated from August 1, 2004 through April 30, 2005, if the
         related Mortgage Loan or the related Mortgage Note, or any document
         relating to the loan transaction, contains a mandatory arbitration
         clause (that is, a clause that requires the borrower to submit to
         arbitration to resolve any dispute arising out of or relating in any
         way to the mortgage loan transaction), [CHL] will (i) notify the
         related borrower in writing within 60 days after the Closing Date
         that none of the related seller, the related servicer or any
         subsequent party that acquires an interest in the Mortgage Loan or
         services the Mortgage Loan will enforce the arbitration clause
         against the borrower, but that the borrower will continue to have the
         right to submit a dispute to arbitration, and (ii) place a copy of
         that notice in the Mortgage File.

                                      19
<PAGE>

         (b) If the substance of any representation or warranty under the Sale
and Servicing Agreement or in this Section made to the best of [CHL]'s
knowledge or as to which a Seller has no knowledge is inaccurate and the
inaccuracy materially and adversely affects the interest of the Purchaser or
its assignee in the related Mortgage Loan, then, notwithstanding that the
Seller did not know the substance of the representation and warranty was
inaccurate at the time the representation or warranty was made, the inaccuracy
shall be a breach of the applicable representation or warranty and [CHL] shall
cure the breach, repurchase the Mortgage Loan, or substitute for the Mortgage
Loan in accordance with the Sale and Servicing Agreement.

         (c) The representations and warranties in this Section shall survive
the transfer and assignment of the Mortgage Loans to the Purchaser. The sole
remedy of the Purchaser, the Noteholders, the Indenture Trustee on behalf of
Noteholders, and the Credit Enhancer against a Seller for the breach of a
representation or warranty is [CHL]'s obligation to accept a transfer of a
Mortgage Loan as to which a breach has occurred and is continuing and to make
any required deposit in the Collection Account or to substitute an Eligible
Substitute Mortgage Loan.

         (d) The Purchaser acknowledges that [CHL], as Master Servicer, in its
sole discretion, may purchase for its own account from the Trust any Mortgage
Loan that is 151 days or more delinquent. The price for any Mortgage Loan
purchased shall be calculated in the same manner as in Section 3.06 of the
Sale and Servicing Agreement and shall be deposited in the Collection Account.
When it receives a certificate from the Master Servicer in the form of Exhibit
D to the Sale and Servicing Agreement, the Trust shall release to the
purchaser of the Mortgage Loan the related Mortgage File and shall execute and
deliver any instruments of transfer prepared by the purchaser of the Mortgage
Loan, without recourse, necessary to vest in the purchaser of the Mortgage
Loan any Mortgage Loan released pursuant to this Agreement, and the purchaser
of the Mortgage Loan shall succeed to all the Trust's interest in the Mortgage
Loan and all security and documents. This assignment shall be an assignment
outright and not for security. The purchaser of the Mortgage Loan shall then
own the Mortgage Loan, and all security and documents, free of any further
obligation to the Trust, the Owner Trustee, the Indenture Trustee, the
Transferor, the Credit Enhancer, or the Noteholders with respect to it.

         (e) A breach of any one of the representations in Sections
3.02(a)(58) to (65) will be considered to materially adversely affect the
interests of the Noteholders.

                                      20
<PAGE>

                                  ARTICLE IV

                              SELLERS' COVENANTS

         Section 4.01. Covenants of the Sellers.

         Except for the transfer under this Agreement, neither Seller will
transfer to any other person, or create or suffer to exist any Lien on any
Mortgage Loan, or any interest in one; each Seller will notify the Indenture
Trustee of the existence of any Lien on any Mortgage Loan immediately on its
discovery; and each Seller will defend the right, title, and interest of the
Trust and the Indenture Trustee in the Mortgage Loans against all claims of
third parties claiming through a Seller. Nothing in this Section shall
prohibit a Seller from suffering to exist on any of the Mortgage Loans any
Liens for municipal or other local taxes and other governmental charges if
they are not due at the time or if the applicable Seller is contesting their
validity in good faith by appropriate proceedings and set aside on its books
adequate reserves with respect to them.

                                   ARTICLE V

                                   SERVICING

         Section 5.01. Servicing.

         [CHL] will be the Master Servicer of the Mortgage Loans pursuant to
the Sale and Servicing Agreement.

                                  ARTICLE VI

                                  TERMINATION

         Section 6.01. Termination.

         The respective obligations of each of the Sellers and the Purchaser
created by this Agreement shall terminate when the Indenture terminates in
accordance with its terms.

                                      21
<PAGE>

                                 ARTICLE VII

                           MISCELLANEOUS PROVISIONS

         Section 7.01. Amendment.

         This Agreement may be amended from time to time by each Seller, and
the Purchaser, with the written consent of the Credit Enhancer, by written
agreement signed by [CHL], [___________], and the Purchaser.

         Section 7.02. Governing Law.

         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS PROVISIONS THAT
WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER STATE.

         Section 7.03. Notices.

         All notices, demands, instructions, consents, and other
communications required or permitted under this Agreement shall be in writing
and signed by the party giving the same and shall be personally delivered or
sent by first class or express mail (postage prepaid), national overnight
courier service, or by facsimile transmission or other electronic
communication device capable of transmitting or creating a written record
(confirmed by first class mail) and shall be considered to be given for
purposes of this Agreement on the day that the writing is delivered when
personally delivered or sent by facsimile or overnight courier or three
Business Days after it was sent to its intended recipient if sent by first
class mail. A facsimile has been delivered when the sending machine issues an
electronic confirmation of transmission. Unless otherwise specified in a
notice sent or delivered in accordance with the provisions of this Section,
notices, demands, instructions, consents, and other communications in writing
shall be given to or made on the respective parties at their respective
addresses indicated below:

                  (i)      if to [CHL] at:

                           Countrywide Home Loans, Inc.
                           4500 Park Granada
                           Calabasas, CA 91302
                           Ref: CWHEQ 200_-_

                  (ii)     if to [___________]

                           ________________________
                           ________________________
                           ________________________
                           Ref: CWHEQ 200_-_

                                      22
<PAGE>

and

                  (iii)    if to the Purchaser at:

                           CWHEQ, Inc.
                           4500 Park Granada
                           Calabasas, CA 91302
                           Ref: CWHEQ 200_-_

         Section 7.04. Severability of Provisions.

         Any provisions of this Agreement that are held invalid for any reason
or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of the invalidity or unenforceability without
invalidating the remaining provisions of this Agreement, and the prohibition
or unenforceability in a jurisdiction shall not invalidate or render
unenforceable that provision in any other jurisdiction.

         Section 7.05. Counterparts; Electronic Delivery.

         This Agreement may be executed in any number of copies, and by the
different parties on the same or separate counterparts, each of which shall be
considered to be an original instrument. Any signature page to this Agreement
containing a manual signature may be delivered by facsimile transmission or
other electronic communication device capable of transmitting or creating a
printable written record, and when so delivered shall have the effect of
delivery of an original manually signed signature page.

         Section 7.06. Further Agreements.

         The Purchaser and each Seller agree to execute and deliver to the
other any additional documents appropriate to effectuate the purposes of this
Agreement or in connection with the issuance of the Notes.

         Section 7.07. Successors and Assigns: Assignment of Purchase
Agreement.

         This Agreement shall bind and inure to the benefit of and be
enforceable by each Seller, the Purchaser, the Trust, the Indenture Trustee,
and the Credit Enhancer. The obligations of each Seller under this Agreement
cannot be assigned or delegated to a third party without the consent of the
Purchaser and the Credit Enhancer, except that either Seller may assign its
obligations under this Agreement to any person into which that Seller is
merged or any corporation resulting from any merger, conversion, or
consolidation to which that Seller is a party or any person succeeding to the
business of that Seller. The Purchaser is acquiring the Mortgage Loans to
further transfer them to the Trust, and the Trust will Grant a Security
Interest in them to the Indenture Trustee under the Indenture pursuant to
which the Trust will issue a series of Notes secured by the Mortgage Loans. As
an inducement to the Purchaser to purchase the Mortgage Loans, each Seller
consents to the assignment by the Purchaser to the Trust, and by the Trust to
the Indenture Trustee of all of the Purchaser's rights against it under

                                      23
<PAGE>

this Agreement insofar as they relate to the Mortgage Loans transferred to the
Trust applicable to that Seller and to the enforcement or exercise of any
right against that Seller pursuant to this Agreement by the Indenture Trustee
under the Sale and Servicing Agreement and the Indenture. Enforcement of a
right by the Indenture Trustee shall have the same effect as if the right had
been exercised by the Purchaser directly.

         Section 7.08. Survival.

         The representations and warranties in Article III shall survive the
purchase of the Mortgage Loans.

                                      24
<PAGE>

         IN WITNESS WHEREOF, the Sellers and the Purchaser have caused this
Agreement to be duly executed by their respective officers as of the day and
year first above written.

                                     CWHEQ, INC.
                                        as Purchaser

                                     By:
                                        -------------------------------------
                                        Name:
                                        Title:

                                     COUNTRYWIDE HOME LOANS, INC.
                                        as a Seller

                                     By:
                                        -------------------------------------
                                        Name:
                                        Title:

                                     ----------------------------------------
                                        as a Seller

                                     By:
                                        -------------------------------------
                                        Name:
                                        Title:

                                      25
<PAGE>

STATE OF CALIFORNIA)
                                    ) ss.:
COUNTY OF LOS ANGELES)

         On the _____ day of ____________, 200_ before me, a Notary Public in
and for said State, personally appeared ________________, known to me to be a
____________ of CWHEQ, Inc., the corporation that executed the within
instrument, and also known to me to be the person who executed it on behalf of
said corporation, and acknowledged to me that such corporation executed the
within instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                            ___________________________________
                                            Notary Public

                                      26
<PAGE>

STATE OF CALIFORNIA                 )
                                    ) ss.:
COUNTY OF LOS ANGELES               )

         On the _____ day of ____________, 200_ before me, ________________ of
[Countrywide Home Loans, Inc.], personally appeared, personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person whose
name is subscribed to the within instrument and acknowledged to me that he
executed the same in his authorized capacity, and that by his signature on the
instrument the person, or the entity on behalf of which the person acted,
executed the instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                            ___________________________________
                                            Notary Public

                                      27
<PAGE>

STATE OF CALIFORNIA                 )
                                    ) ss.:
COUNTY OF LOS ANGELES               )

         On the _____ day of ____________, 200_ before me, ________________ of
[_______________________], personally appeared, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person whose
name is subscribed to the within instrument and acknowledged to me that he
executed the same in his authorized capacity, and that by his signature on the
instrument the person, or the entity on behalf of which the person acted,
executed the instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                            ___________________________________
                                            Notary Public

                                      28
<PAGE>

                                                                    SCHEDULE I

                                  SCHEDULE OF
                                MORTGAGE LOANS

                   [Delivered to the Indenture Trustee only]

                                   Sch-I-1

<PAGE>
                                                                   SCHEDULE II

                          STANDARD & POOR'S GLOSSARY

              Standard & Poor's Predatory Lending Categorization

Standard & Poor's has categorized loans governed by anti-predatory lending
laws in the jurisdictions listed below into three categories based on a
combination of factors that include (a) the risk exposure associated with the
assignee liability and (b) the tests and thresholds set forth in those laws.
Note that certain loans classified by the relevant statute as Covered are
included in Standard & Poor's High Cost Loan category because they included
thresholds and tests that are typical of what is generally considered High
Cost by the industry.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                    Standard & Poor's High-Cost Loan Categorization
------------------------------------------------------------------------------------------------------------------------
               State/jurisdiction                         Category under applicable anti-predatory lending law
------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>
Arkansas                                          High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
Cleveland Heights, Ohio                           Covered Loan
------------------------------------------------------------------------------------------------------------------------
Colorado                                          Covered Loan
------------------------------------------------------------------------------------------------------------------------
Connecticut                                       High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
District of Columbia                              Covered Loan
------------------------------------------------------------------------------------------------------------------------
Florida                                           High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
Georgia (Oct. 1, 2002 - March 6, 2003)            High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
Georgia as amended (March 7, 2003 - current)      High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
HOEPA Section 32                                  High Cost Loan
------------------------------------------------------------------------------------------------------------------------
Illinois                                          High Risk Home Loan
------------------------------------------------------------------------------------------------------------------------
Kansas                                            High Loan-to-Value Consumer Loans and High APR Consumer Loans
------------------------------------------------------------------------------------------------------------------------
Kentucky                                          High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
Los Angeles, Calif.                               High Cost Refinance Home Loan
------------------------------------------------------------------------------------------------------------------------
Maine                                             High Rate High Fee mortgage
------------------------------------------------------------------------------------------------------------------------
Massachusetts                                     High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
Nevada                                            Home Loan
------------------------------------------------------------------------------------------------------------------------
New Jersey                                        High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
New York                                          High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
New Mexico                                        High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
North Carolina                                    High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
Oakland, Calif.                                   High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
Ohio                                              Covered Loan
------------------------------------------------------------------------------------------------------------------------
Oklahoma                                          Subsection 10 Mortgage
------------------------------------------------------------------------------------------------------------------------
South Carolina                                    High Cost Home Loan
------------------------------------------------------------------------------------------------------------------------
West Virginia                                     West Virginia Mortgage Loan Act Loan
------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------
                                     Standard & Poor's Covered Loan Categorization
------------------------------------------------------------------------------------------------------------------------
               State/jurisdiction                         Category under applicable anti-predatory lending law
------------------------------------------------------------------------------------------------------------------------
Georgia (Oct. 1, 2002 - March 6, 2003)            Covered Loan
------------------------------------------------------------------------------------------------------------------------
New Jersey                                        Covered Home Loan
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                   Sch-II-1

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                      Standard & Poor's Home Loan Categorization
------------------------------------------------------------------------------------------------------------------------
               State/jurisdiction                         Category under applicable anti-predatory lending law
------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>
Georgia (Oct. 1, 2002- March 6, 2003)             Home Loan
------------------------------------------------------------------------------------------------------------------------
New Jersey                                        Home Loan
------------------------------------------------------------------------------------------------------------------------
New Mexico                                        Home Loan
------------------------------------------------------------------------------------------------------------------------
North Carolina                                    Consumer Home Loan
------------------------------------------------------------------------------------------------------------------------
Oakland, Calif.                                   Home Loan
------------------------------------------------------------------------------------------------------------------------
South Carolina                                    Consumer Home Loan
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                   Sch-II-2

<PAGE>

                                                                       ANNEX 1

                                ADOPTION ANNEX

         The purchase price for the Mortgage Loans pursuant to Section 2.03 is
the transfer to each of the Sellers on the Closing Date of the Transferor
Certificates and the proceeds from the sale of the Notes, each by its
respective portion.

         The items referred to in the representations and warranties in
Section 3.02 are:

         (12) _____% and _____% of the Mortgage Loans in Loan Group [1] and
Loan Group [2], respectively, being transferred on the relevant date (by
Cut-off Date Loan Balance) were 30-59 days delinquent (measured on a
contractual basis).

         (18) As of the Cut-off Date no more than _____% and _____% of the
Mortgage Loans in Loan Group [1] and Loan Group [2], respectively, by
aggregate principal balance, are secured by Mortgaged Properties located in
one United States postal zip code.

         (19) The Combined Loan-to-Value Ratio for each Mortgage Loan was not
in excess of [100.00]%.

         (30) The weighted average remaining term to maturity of the Mortgage
Loans on a contractual basis as of the Cut-off Date is approximately _____ and
_____ months with respect to the Mortgage Loans in Loan Group [1] and Loan
Group [2], respectively. The Loan Rate Caps for the Mortgage Loans range
between _____% and _____% and _____% and _____% with respect to the Mortgage
Loans in Loan Group [1] and Loan Group [2], respectively, and the weighted
average Loan Rate Cap is approximately _____% and _____%, with respect to the
Mortgage Loans in Loan Group [1] and Loan Group [2], respectively. The Gross
Margins for the Mortgage Loans range between (_____)% and _____% and (_____)%
and _____% with respect to the Mortgage Loans in Loan Group [1] and Loan Group
[2], respectively, and the weighted average Gross Margin is approximately
_____% and _____% as of the Cut-off Date for the Mortgage Loans in Loan Group
[1] and Loan Group [2], respectively. The Loan Rates on the Mortgage Loans
range between _____% and _____% and _____% and _____% with respect to the
Mortgage Loans in Loan Group [1] and Loan Group [2], respectively, and the
weighted average Loan Rate on the Mortgage Loans is approximately _____% and
_____% with respect to the Mortgage Loans in Loan Group [1] and Loan Group
[2], respectively. As of the Cut-off Date, _____% and _____% of the Mortgage
Loans in Loan Group [1] and Loan Group [2], respectively, by aggregate
principal balance, have original principal balances (by credit limit) that
conform to Fannie Mae or Freddie Mac guidelines.

         (32) No more than _____% and _____% (by Cut-off Date Loan Balance) of
the Mortgage Loans in Loan Group [1] and Loan Group [2], respectively, are
secured by real property improved by individual condominium units, units in
planned unit developments, townhouses, or two-to-four family residences
erected on them, and at least _____% and

                                    Ann-1-1

<PAGE>

_____% (by Cut-off Date Loan Balance) of the Mortgage Loans in Loan Group [1]
and Loan Group [2], respectively, are secured by real property with a detached
one-family residence erected on them.

         (33) The Credit Limits on the Mortgage Loans range between
approximately $__________ and $__________ and $__________ and $__________ with
an average of approximately $62,899 and $61,304 with respect to the Mortgage
Loans in Loan Group [1] and Loan Group [2], respectively. As of the Cut-off
Date, no Mortgage Loan had a principal balance in excess of approximately
$__________ and $__________ and the average principal balance of the Mortgage
Loans is equal to approximately $__________ and $__________ with respect to
the Mortgage Loans in Loan Group [1] and Loan Group [2], respectively.

         (34) Approximately _____% and _____% of the Mortgage Loans of each
Loan Group, by aggregate principal balance as of the Cut-off Date for the
Mortgage Loans, are secured by first and second liens, respectively.

         (35) As of the Closing Date, no more than _____% and _____% of the
Mortgage Loans in Loan Group [1] and Loan Group [2], respectively, by
aggregate principal balance, were appraised electronically.

         (40) As of the Cut-off Date (based on the drawn balances), the
Mortgage Loans had a weighted average Combined Loan-to-Value Ratio of _____%
and _____%; a range of Combined Loan-to-Value Ratios between _____% and _____%
and _____% and _____%; a percentage of primary residences of _____% and
_____%; a weighted average FICO score of _____ and _____; a range of FICO
scores between _____ and _____ and _____ and _____; a Weighted Average Net
Loan Rate of _____% and _____%; a range of net Loan Rates between _____% and
_____% and _____% and _____%; a weighted average original stated term to
maturity of _____ and _____ months; a range of original term to maturity
between _____ and _____ months and _____ and _____ months; a range of
remaining term to maturity between _____ and _____ months and _____ and _____
months; an average drawn balance of $__________ and $__________; a weighted
average utilization ratio of _____% and _____%; and _____% and _____% of the
Mortgage Loans have their respective Mortgaged Properties located in the top
five states, measured by aggregate drawn balances, all with respect to the
Mortgage Loans in Loan Group [1] and Loan Group [2], respectively.

                                    Ann-1-2

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