Document:

Master Agreement, Federal Home Loan

  Exhibit 10.23
  MASTER AGREEMENT
  This Master Agreement #MA02100134 (this “Agreement”) dated as of October 24, 2002, (the “Agreement Date”) is made by and between the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and
Crescent Bank & Trust Company dba Crescent Mortgage, Seller/Servicer #106856 (“Seller”).
  Unless otherwise specified, the terms and conditions described in this Agreement shall apply
to Mortgages sold by Seller under a Master Commitment that incorporates this Agreement by reference. This Agreement does not entitle Seller to sell or obligate Freddie Mac to purchase Mortgages unless they have entered into a Master Commitment
incorporating the terms of this Agreement.
  Master Agreement Amount:  $4 billion
  Effective Date for Delivery:  October
1, 2002
  Required Delivery Date:  September 30, 2003
  Overpurchase Tolerance:  10 percent
  Credit Enhancement:
  Discretionary Provisions:
During the term of this Agreement, Freddie Mac reserves the right to amend, supplement, revise or terminate,
in whole or in part, any of the Discretionary Provisions identified on Exhibit 26 to the Guide.
  Special Underwriting Provisions:
Following is a table, which identifies the waivers
allowed to the Single-Family Seller/Servicer Guide (“the Guide”). Complete terms and conditions regarding these waivers may be found on the Attachment and page referenced under the “Contract Reference” column. The waivers relate
to the Sections of the Guide, which are listed in the “Guide Reference” column.
  Crescent Bank & Trust Company dba Crescent Mortgage
 Master Agreement # MA02100134
 Page 1
–– 10/24/2002

  ALL MORTGAGE TYPES - ATTACHMENT 1

	  Key Word
 	   
 	  Waiver Title
 	   
 	  Contract Reference
 	   
 	  Guide Reference
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 
	  Cash-out Refi
 	  
 	  Special Purpose Cash-out Refinance Mortgages with Proceeds Used to Pay Off or Partially Satisfy Secondary Financing Less than 12 Months Old
 	  
 	  Page 1, #1
 	  
 	  24.7
 
	 Condo/PUD
 	  
 	  Fidelity Insurance for Condos
 	  
 	  Page 1, #2
 	  
 	  58.5
 
	  Condo/PUD
 	  
 	  Liability Insurance for Condos
 	  
 	  Page 1, #3
 	  
 	  58.4
 
	  Condo/PUD
 	  
 	  Insurance for PUDs
 	  
 	  Page 1, #4
 	  
 	  43.2, 58.2, 58.3 and 58.4
 
	  Condo/PUD
 	  
 	  Requirements for Condos
 	  
 	  Page 2, #5
 	  
 	  42.4, 42.6
 
	 Condo/PUD
 	  
 	  Streamlined Condominium Project Review
 	  
 	  Page 2, #6
 	  
 	  42.10
 
	  Documentation
 	  
 	  Nonuniform Underwriting Summary Form
 	  
 	  Page 3, #7
 	  
 	  46.4
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 Master Agreement #
MA02100134
 Page 2 –– 10/24/2002

   FIXED-RATE MORTGAGES - ATTACHMENT 2

	  Key Word
 	   
 	  Waiver Title
 	   
 	  Contract Reference
 	   
 	  Guide Reference
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 
	 Buydowns
 	  
 	  Compressed 2-1 Buydowns - Fixed Rate Mortgages
 	  
 	  Page l, #l
 	  
 	  25.4, N/A
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 Master
Agreement # MA02100134
 Page 3 –– 10/24/2002

   Special Programs and Products:
Following is a table, which identifies the programs and products for which Seller is eligible under this Agreement. Complete terms and
conditions regarding the program/product may be found in the Sections of the Single-Family Seller/Servicer Guide (“the Guide”), which are listed in the “Guide Reference” column or in the Attachment referenced under the
“Contract Reference” column.

	  Key Word
 	   
 	  Program/Product Title
 	   
 	  Contract Reference
 	   
 	  Guide Reference
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 
	 ARM
 	  
 	  Provisions Relating to Nonstandard Nonconvertible ARMs
 	  
 	  Attachment 3
 	  
 	  30.2
 
	  ARM
 	  
 	  Junior Guarantor Program
 	  
 	  Attachment 4
 	  
 	  None
 
	  ARM
 	  
 	  1-year, 3/1, 5/1, 7/1 and 10/1 LIBOR ARMs Attachment
 	  
 	  Attachment 5
 	  
 	  None
 
	 ARM
 	  
 	  Treasury-Indexed ARMs
 	  
 	  Attachment 6
 	  
 	  None
 
	  A-minus Mortgages
 	  
 	  A Minus Manual Eligibility Matrix Mortgages
 	  
 	  Attachment 7
 	  
 	  C33
 
	  Purchase Money
 	  
 	  Enterprise Cash System Agreement
 	  
 	  Attachment 8
 	  
 	  None
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 Master Agreement # MA02100134
 Page
4 –– 10/24/2002

   Additional Provisions:
Following is a table identifying additional variances to provisions of the Guide or, if applicable, limitations on products or programs
otherwise eligible under the Purchase Documents. Generally, the provisions included in this Attachment will concern topics such as legal documentation, third-party originators, quality control, delivery or servicing of Mortgages sold under this
Agreement. Complete terms and conditions regarding these provisions may be found on the Attachment and page referenced under the “Contract Reference” column. The waivers relate to the Sections of the Guide, which are listed in the
“Guide Reference” column.

	 Key Word
 	   
 	  Additional Provision Title
 	   
 	  Contract Reference
 	   
 	  Guide Reference
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 
	  Custodial Provisions
 	  
 	  Notes and Intervening Assignments/Limited Power of Attorney
 	  
 	  Page l, #l, Attachment 9
 	  
 	  16.4, 16.8, 18.1, 18.4, 18.5 and 22.14
 
	  Delivery Requirements
 	  
 	  Facsimile of Form 996, Warehouse Lender Release of Security Interest
 	  
 	  Page 2, #2, Attachment 9
 	  
 	  Chapter 19
 
	 Purchase Money
 	  
 	  Deliveries by Affiliated Entities
 	  
 	  Page 2, #3, Attachment 9
 	  
 	  None
 
	  Pool Insurance
 	  
 	  Pool Insurance/Crescent Bank and Trust Company dba Crescent Mortgage
 	  
 	  Attachment 10
 	  
 	  None
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 Master Agreement #
MA02100134
 Page 5 –– 10/24/2002

   Special Pricing Provisions:
Following is a table identifying special provisions concerning the calculation of Required Spreads, delivery fees, buyups/buydowns,
remittance programs or other pricing related programs or processes for Mortgages sold under this Agreement.  Complete terms and conditions regarding these provisions may be found in the Attachment referenced under the “Contract
Reference” column.

	  Key Word
 	   
 	  Special Pricing Provision Title
 	   
 	  Contract Reference
 	   
 	  Guide Reference
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 
	 Purchase Money
 	  
 	  Security Style Pair-off
 	  
 	  Page l, #l, Attachment 11
 	  
 	  8.7
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 Master Agreement #
MA02100134
 Page 6 –– 10/24/2002

   Seller’s Execution of Master Commitments and Amendments:
From time to time, Freddie Mac and Seller may negotiate Master Commitments incorporating the terms of
this Master Agreement and/or amendments to this Master Agreement. Freddie Mac will not require that such Master Commitments or amendments be executed and returned by Seller. Seller’s delivery of Mortgages shall be deemed Seller’s
acceptance of all terms and conditions contained in such Master Commitments and/or amendments, including, but not limited to, terms which impose any fee or require a credit enhancement related to the delivery of such Mortgages. The provisions of
this paragraph shall apply also to any amendments to Master Commitments.
 Freddie Mac shall continue to require that Seller execute and return to Freddie Mac all Master Agreements.
 
IN WITNESS WHEREOF, the parties hereto have caused this Master Agreement to be duly executed by their respective authorized representatives as of the date set forth above.

	  FEDERAL HOME LOAN MORTGAGE CORPORATION
 	  
 	  CRESCENT BANK & TRUST COMPANY DBA CRESCENT
MORTGAGE
 
	  
 	  
 	  
 
	  By:
 	  /s/ DAVID H. STEVENS
 	  
 	  By:
 	  /s/ ROBERT C. KENKNIGHT
 
	  
 	 
 	  
 	  
 	 
 
	  
 	 David H. Stevens
 	  
 	  Name:
 	  Robert C. KenKnight
 
	  
 	  Senior Vice President
 	  
 	  
 	 
 
	  
 	  Single Family Lending
 	  
 	  Title:
 	  Executive Vice President
 
	  
 	  
 	  
 	  
 	 
 

  Reference
106856_MA02100134/JTDP-5CXP4P/JD
  Crescent Bank & Trust Company dba Crescent Mortgage
 Master Agreement # MA02100134
 Page 7 –– 10/24/2002

   ATTACHMENT 1
 SPECIAL UNDERWRITING PROVISIONS
 ALL MORTGAGE TYPES

	  1.
 	  Special Purpose Cash-out Refinance Mortgages with Proceeds Used to Pay Off or Partially Satisfy Secondary Financing Less than 12 Months Old

	  
 	  
 
	  
 	 “Cash-out” refinance Mortgages where the cash-out is used by the Borrower to satisfy, in whole or in part, a junior lien less than 12 months old, shall be
eligible for purchase as special purpose “cash-out” refinance Mortgages without assessment of the “cash-out” refinance Mortgage post settlement delivery fee, provided that:
 
	  
 	  
 	  
 
	  
 	  (a)
 	  each such Mortgage is secured by a 1-2 unit Primary Residence or a second home;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Seller shall obtain and retain in the Mortgage file a copy of the HUD-1 from the purchase transaction, which verifies that funds from the junior lien were used to
purchase the Mortgaged Premises;
 
	  
 	  
 	  
 
	  
 	  (c)
 	  the junior lien may be partially satisfied, with the remaining balance subordinated to the lien of the new refinance Mortgage;
 
	  
 	  
 	  
 
	  
 	 (d)
 	  except as modified by this special underwriting provision, the applicable requirements of Section 24.7 of the Guide are met; and
 
	  
 	  
 	  
 
	  
 	  (e)
 	  in addition to any other special characteristics codes required hereunder, Seller shall enter “203” in one of the six 3-digit blocks in the special
characteristics code field of the Form 11 or Form 13SF.
 
	  
 	  
 
	  2.
 	  Fidelity Insurance for Condos
 
	  
 	  
 
	  
 	  Mortgages secured by units in Condominium Projects for which the homeowner’s association does not maintain fidelity insurance shall be eligible for
purchase.
 
	  
 	  
 
	  3.
 	  Liability Insurance for Condos
 
	  
 	  
 
	  
 	 For Mortgages secured by units in Condominium Projects consisting of not more than 20 units, the homeowner’s association is not required to maintain liability
insurance.
 
	  
 	  
 
	  4.
 	  Insurance for PUDs
 
	  
 	  
 
	  
 	  For Mortgages secured by units in PUDs (Planned Unit Developments), the homeowners association is not required to maintain the insurance noted below, provided
that:
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  (i)
 	  such insurance is limited to hazard and liability insurance for the common areas in such PUDs; and
 

  Special Underwriting Provisions
 All Mortgage Types
 MA02100134 –– Attachment 1
 Page 1 –– 10/24/2002

	  
 	  
 	  (ii)
 	  the common areas consist of only minimal amenities, such as entrance gates, parking areas and grass median strips and do not include structural improvements or amenities which
typically require such insurance coverage, such as playgrounds and retention ponds.
 
	  
 	  
 	  
 	  
 
	 5.
 	  Requirements for Condos
 
	  
 	  
 
	  
 	  For Mortgages secured by Condominium units, the following exceptions to requirements in the Guide may be
applied
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  for units located in Class I or Class II Condominium Projects, the presale requirement and the requirement for occupancy by the unit owner as a Primary Residence or
Second Home may be reduced to 51 percent, provided that all other requirements of the Purchase Documents for the sale of Mortgages secured by Condominium Units to Freddie Mac are satisfied; and
 
	  
 	  
 	  
 
	  
 	  (b)
 	  for units located in Class I or Class II Condominium Projects, at least 50 percent (rather than 70 percent for Class I and/or 60 percent for Class II as required by
the Guide) of the units sold in the Condominium Project have been sold to individuals for their use as their Primary Residences or Second Homes.
 
	  
 	  
 	  
 
	 6.
 	  Streamlined Condominium Project Review
 
	  
 	  
 
	  
 	  Mortgages secured by condominium units with loan-to-value ratios not exceeding 95 percent for 1-unit Primary Residences
and 90 percent for second homes, which are located in Class I, II and III Condominium Projects and for which Seller makes limited warranties pursuant to Section 42.10 of the Guide shall be eligible for purchase, provided that:
 
	  
 	  
 	  
 
	  
 	  (a)
 	  each Mortgage is secured by a 1-unit Primary Residence or second home;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  each Mortgage secured by a 1-unit Primary Residence with a loan-to-value ratio greater than 90 percent but not exceeding 95 percent, shall have a minimum Indicator
Score of 700;
 
	  
 	  
 	  
 
	  
 	 (c)
 	  each Mortgage secured by a 1-unit Primary Residence with a loan-to-value ratio greater than 75 percent but not exceeding 90 percent, shall have a minimum Indicator
Score of 680;
 
	  
 	  
 	  
 
	  
 	  (d)
 	  each Mortgage secured by a second home with a loan-to-value ratio greater than 80 percent but not exceeding 90 percent, shall have a minimum Indicator Score of
700;
 
	  
 	  
 	  
 
	  
 	  (e)
 	  each Mortgage secured by a second home with a loan-to-value ratio not exceeding 80 percent, shall have a minimum Indicator Score of 680;
 

  Special Underwriting Provisions
 All Mortgage Types
 MA02100134 –– Attachment 1
Page 2 –– 10/24/2002

	  
 	  (f)
 	  each Mortgage is processed through Loan Prospector and receives a credit risk class of Accept;
 
	  
 	  
 	  
 	  
 
	  
 	 (g)
 	  for each Mortgage secured by a Primary Residence with a loan-to-value ratio exceeding 75 percent, and each Mortgage secured by a second home, Seller shall pay
Freddie Mac the applicable delivery fee for each Mortgage as indicated by the Delivery Fee Matrix exhibit attached to the Master Commitment under which each Mortgage is sold;
 
	  
 	  
 	  
 	  
 
	  
 	  (h)
 	  in connection with the delivery of each Mortgage for which a delivery fee is due as described in subparagraph (g) above, Seller must enter “420” in one of
the six 3-digit blocks in the special characteristics code field of the Form 11, Mortgage Submission Schedule, or Form 13SF- Mortgage Submission Voucher, as applicable;
 
	  
 	  
 	  
 	  
 
	  
 	  (i)
 	  such Mortgages must not be secured by (i) units in a condominium hotel, as defined in Section 42.8 of the Guide, (ii) cooperative share units, (iii) units subject to
any timeshare agreement, or (iv) units in a Condominium Project which is a conversion of a previous multi-family rental project;
 
	  
 	  
 	  
 	  
 
	  
 	 (j)
 	  The Condominium Project shall not be required to comply with the second bullet of Section 42.5 or the second bullet of Section 42.7(a), which relate to completion of
the project’s common elements and amenities; in addition, Seller shall not be required to make the warranties reflected in Sections 42.4(a) and 42.6(e) that all common elements and amenities are completed; and
 
	  
 	  
 	  
 	  
 
	  
 	  (k)
 	  except as set forth herein, all requirements of Section 42.10 of the Guide are met.
 
	  
 	  
 	  
 
	  7.
 	  Nonuniform Underwriting Summary Form
 
	  
 	  
 	  
 
	  
 	  Mortgages with respect to which the Mortgage file contains Seller’s underwriting worksheet (“Seller’s Underwriting Worksheet”), in lieu of
Freddie Mac’s Form 1077 - Uniform Underwriting and Transmittal Summary, shall be eligible for purchase, provided that:
 
	  
 	  
 	  
 
	  
 	 (a)
 	  Seller’s Underwriting Worksheet is substantially in the form of the document attached hereto as Exhibit 7A;
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  Freddie Mac may at any time, and in its sole discretion, upon 30 days advance written notice to Seller, revoke Seller’s right to deliver Mortgages with respect
to which the Mortgage file contains Seller’s Underwriting Worksheet; and 
 
					

  Special Underwriting Provisions 
 All Mortgage Types 
 MA02100134 –– Attachment 1 
 Page 3 –– 10/24/2002

	  
 	  (c)
 	  within 30 days after receipt of the notice in (b) above, Seller shall cease using Seller’s Underwriting Worksheet and shall commence using Freddie Mac’s Form 1077 -
Uniform Underwriting and Transmittal Summary (or other form designated by Freddie Mac) and such form shall be maintained in the Mortgage file.
 

  Special Underwriting Provisions

 All Mortgage Types 
 MA02100134 –– Attachment 1 
 Page 4 –– 10/24/2002

  ATTACHMENT 2 
 SPECIAL UNDERWRITING PROVISIONS
 FIXED-RATE MORTGAGES

	  
 	  1.
 	  Compressed 2-1 Buydowns - Fixed Rate Mortgages
 
	  
 	  
 	  
 
	  
 	  
 	  Fixed-rate Mortgages that are subject to temporary buydown plans that adjust more than once per year (“Compressed Buydowns”) shall be eligible for
purchase, provided that:
 
	  
 	  
 	  
 
	  
 	  
 	  (a)
 	  such Mortgages are purchase money or “no cash-out” refinance Mortgages that are secured by:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (i)
 	  1 unit Primary Residences and have LTV ratios not exceeding 90 percent; or
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (ii)
 	  Second homes and have LTV ratios not exceeding 90;
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (b)
 	  Seller enters “210” in the special characteristic code field on the Form 11, Mortgage Submission Schedule;
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (c)
 	  (i)
 	  for Mortgages with LTV ratios not exceeding 80 percent, the Borrower is qualified at the initial interest rate under the buydown plan;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (ii)
 	  for Mortgages with LTV ratios exceeding 80 percent, the Borrower is qualified at the interest rate in effect as of the thirteenth month (Note Coupon Rate minus one percent)
after the first scheduled payment date;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (d)
 	  the initial interest rate is not more than two percent below the Note Coupon Rate;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (e)
 	  the buydown plan does not extend for more than 24 months after the first scheduled payment date;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (f)
 	  the total amount of the increases in the interest rate may not exceed one percent per year;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (g)
 	  the interest rate adjustments are limited to twice per year and the interest rate shall not increase more than 0.5 percent every 6 months; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (h)
 	  the buydown plan otherwise complies with the terms outlined in Section 25.4 of the Guide.
 

  Special Underwriting Provisions 
 Fixed-Rate Mortgages 
 MA02100134 –– Attachment 2 
 Page 1 –– 10/24/2002

   ATTACHMENT 3
 Provisions Relating to Nonstandard Nonconvertible ARMs

	  Under the terms of this Agreement, Seller may deliver 2% annual rate-capped 1-year constant maturity Treasury-indexed nonconvertible adjustable rate Mortgages that
are documented by mortgage instruments other than the Uniform Instruments specified in Section 30.2 of the Guide provided such mortgages otherwise satisfy the requirements of the Guide (“Nonstandard ARMs”).
 	 
 
	  
 	  
 	  
 
	 A.
 	  General Requirements. Seller shall make specimens of the mortgage instruments relating to the Nonstandard ARMs (e.g., the Note and Security Instrument and any
riders and/or addenda to the Note and Security Instrument) (collectively, the “Nonstandard Instruments”) available to Freddie Mac upon request. Seller shall review the Nonstandard Instruments and, based on such a review and upon such
further inquiry and document review as Seller deems necessary or appropriate, Seller shall make the warranties and representations set forth in the following paragraphs.
 
	  
 	  
 	  
 
	  B.
 	  Warranties relating to Nonstandard Instruments. Seller hereby makes the following representations and warranties with respect to all Nonstandard
Instruments:
 
	  
 	  
 	  
 
	  
 	  1.
 	  The Nonstandard ARMs comply in full with all requirements of the Guide, other than the requirements relating to Uniform Instruments.
 
	  
 	  
 	  
 
	  
 	  2.
 	  The Nonstandard Instruments allow for servicing in full compliance with the Guide and applicable law.
 
	  
 	  
 	  
 
	  
 	 3.
 	  The Nonstandard ARMs either:
 
	  
 	  
 	  
 
	  
 	  
 	  (a)
 	  were originated on a security instrument that is the applicable jurisdiction’s FNMA/FHLMC Uniform Instrument, or
 
	  
 	  
 	  
 
	  
 	  
 	  (b)
 	  the Nonstandard Instruments grant default and foreclosure rights that are substantially equivalent to those contained in the Uniform Instruments and contain a
special waiver of homestead, of dower or similar marital rights and of redemption rights after foreclosure in those jurisdictions where such waivers are necessary to protect the lender’s interest.
 
	  
 	  
 	  
 
	  
 	  4.
 	  The Nonstandard Instruments do not contain a provision for a grace period following a partial prepayment.
 
					

 Special Programs and Products
 Provisions Relating to Nonstandard Nonconvertible ARMs
 MA02100134 –– Attachment 3
 Page 1 –– 10/24/2002

	  
 	  5.
 	  The Nonstandard Instruments either:
 
	  
 	  
 	  
 
	  
 	  
 	  (a)
 	  contain a due-on-transfer provision which, by its terms, may not be exercised in the event of a transfer of all or any part of the Mortgaged Premises if the transferee’s
credit is underwritten to the satisfaction of the lender and which contains no additional requirements or conditions, including changes to existing financial terms, to the lender’s agreement to waive its option to accelerate other than the
payment of reasonable fees and execution of assumption documents; or
 
	  
 	  
 	  
 
	  
 	  
 	  (b)
 	  do not contain such a provision or contain such a provision with additional requirements or conditions in the event of a transfer of all or any part of the mortgaged premises,
and (i) Seller shall not exercise its option to declare all of the sums secured by the security instrument to be immediately due and payable, if Borrower causes to be submitted to Seller information required by Seller to evaluate the transferee as
if a new loan were being made to the transferee, and Seller reasonably determines that Seller’s security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in the security instrument is
acceptable to Seller; (ii) Seller shall not enforce any such additional requirements and conditions; and (iii) Seller shall provide each Borrower with written notice of the provisions set forth in this subparagraph (b) by the next coupon rate
adjustment date, and shall maintain a copy of such notice in the mortgage file.
 
	  
 	  
 	  
 
	 C.
 	  Warranties Relating to Interest Rate Adjustments and Caps. Seller hereby makes the following representations and warranties with respect to the provisions of
the Nonstandard Instruments relating to interest rate adjustments and caps:
 
	  
 	  
 	  
 
	  
 	  1.
 	  The Nonstandard Instruments state the Gross Coupon Rate at the first adjustment date and each adjustment thereafter as the applicable index (the “Index”)
plus a stated Gross Mortgage Margin.
 
	  
 	  
 	  
 
	  
 	  2.
 	  The Gross Coupon Rate adjusts annually to a rate equal to the applicable Index plus the Gross Mortgage Margin subject to a annual limit on the amount of any single
increase or decrease in the Gross Coupon Rate of 200 basis points.
 
	  
 	  
 	  
 
	  
 	  3.
 	  Either (a) the adjusted Gross Coupon Rate does not exceed a stated maximum rate over the life of the Mortgage; or
 
	  
 	  
 	  
 
	  
 	  
 	 (a)
 	  as Servicer of the Mortgages, Seller shall (i) establish a stated maximum Gross Coupon Rate with respect to each Mortgage not stating such a maximum rate, or (ii) with respect
to Mortgages with stated maximum rates that expire after a stated number of years, extend the applicable maximum rate over the life of each such Mortgage. Seller shall provide written notice the Borrower stating the maximum Gross Coupon Rate
over
 

  Special Programs and Products
 Provisions Relating to Nonstandard Nonconvertible ARMs
 MA02100134 –– Attachment 3
 Page 2 ––
10/24/2002

	  
 	  
 	  
 	  the life of each such Mortgage at the next coupon rate adjustment of the Nonstandard ARM, and shall maintain a copy of such notice in the mortgage file.

	 
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  Seller shall complete the Life of Loan interest rate cap section of the Form 13SF, Mortgage Submission Voucher, by indicating “Y” there is a maximum Gross
Coupon Rate and entering the maximum Gross Coupon Rate established by Seller.
 
	  
 	  
 	  
 
	  
 	 4.
 	  Either (a) the adjusted Gross Coupon Rate rounds to the nearest one-eighth of one percent (0.125%); or
 
	  
 	  
 	  
 
	  
 	  
 	  (b)
 	  if the adjusted Gross Coupon Rate rounds up to the nearest one-eighth of one percent (0.125%), either
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  (i)
 	  Seller, as Servicer of the Nonstandard ARM, will round the adjusted Gross Coupon Rate to the nearest 0.125%; or
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  (ii)
 	  Seller, as Servicer of the Nonstandard ARMs, will round the adjusted Gross Coupon Rate up to the nearest 0.125% and:
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	 (A)
 	  notwithstanding the requirements of the Guide, at the time the PC pool that includes such Nonstandard ARM is formed, the Life-of-loan Cap Servicing Spread, the
Margin Servicing Spread, the Servicing Spread and the servicing spread at the minimum Gross Coupon Rate on any such Nonstandard ARM may not be less than .375% or greater than 1.875%, which limitation shall apply even if the PC pool also includes
Nonstandard ARMs having adjusted Gross Coupon Rates that round to the nearest .125%;
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  (B)
 	  Seller acknowledges and agrees that while the Gross Coupon Rate of such Nonstandard ARMs rounds up to the nearest .125%, Seller shall calculate the Required Net
Yield Freddie Mac is to receive following an Interest Change Date based on the Gross Coupon Rate rounded to the nearest .125%. Such calculation of the Required Net Yield for the Nonstandard ARMs may cause the amount to be retained by Seller to be up
to 12.5 basis points greater than the Servicing Spread specified by Seller upon conversion of such Nonstandard ARM. Thus, notwithstanding the requirements of the Guide, the Servicing Spread retained by Seller shall not remain constant, but may vary
throughout the life of each such Nonstandard ARM; and
 
	  
 	  
 	  
 	  
 	  
 	  
 
											

 Special Programs and Products
 Provisions Relating to Nonstandard Nonconvertible ARMs
 MA02100134 –– Attachment 3
 Page 3 –– 10/24/2002

	  
 	  
 	  
 	  
 	  (C)
 	  in the event Seller desires to transfer servicing of such Nonstandard ARMs, Seller shall:
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  (I)
 	  notify Freddie Mac in Part A, paragraph 7, of the Agreement for Subsequent Transfer of Servicing, Form 981, that the transfer includes mortgages that have special servicing
requirements in that the transfer consists, in part or in whole, of ARMs that round up to the nearest .125%;
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	 (II)
 	  inform the servicing transferee that the transfer includes ARMs with respect to which the Gross Coupon Rate rounds up to the nearest .125% and, as a consequence, the Servicing
Spread may vary throughout the life of each such Nonstandard ARM; and
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  (III)
 	  cause the servicing transferee to assume the obligations of Seller set forth in this paragraph (ii).
 
	  
 	  
 	  
 
	  
 	  
 	  (c)
 	  if the adjusted Gross Coupon Rate does not round:
 
	  
 	  
 	  
 
	  
 	  
 	  
 	 (i)
 	  for deliveries under the original ARM Guarantor program, Seller warrants that notwithstanding the requirements of the Guide, the Life-of-loan Cap Servicing Spread,
the Margin Servicing Spread and the Servicing Spread on any such Nonstandard ARM at the time the PC pool that includes such Nonstandard ARM is formed shall not be less than 0.437% and may not be greater than 1.938%; and at the time the PC pool, the
Servicing Spread shall not vary by more than 0.125% from the Margin Servicing Spread or the Life-of-loan Cap Servicing Spread, and the Margin Servicing Spread and the Life-of-loan Cap Servicing Spread shall not vary from each other by more than
0.125%; and
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  (ii)
 	  for deliveries under the WAC ARM Guarantor program, Seller agrees to complete the Freddie Mac Form 13SF - Mortgage Submission Voucher as follows:
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  (A)
 	  the letter “N” shall be entered in the field titled “Is Interest Rate Rounded”; and
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	 (B)
 	  “0.00” shall be entered in the field titled “Percent Rounded”;
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  (iii)
 	  Seller shall deliver and pool such Nonstandard ARMs separately from Nonstandard ARMs having adjusted Gross Coupon Rates that
 

 
Special Programs and Products
 Provisions Relating to Nonstandard Nonconvertible ARMs
 MA02100134 –– Attachment 3
 Page 4 –– 10/24/2002

	  
 	  
 	  
 	  
 	  round to the nearest 0.125% or that round up to the nearest 0.125%; and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (iv)
 	  with each conversion of such Nonstandard ARMs, Seller shall notify Freddie Mac’s commitment operator that such conversion includes Nonstandard ARMs with respect to which
the adjusted Gross Coupon Rate does not round.
 
	  
 	  
 	  
 
	  
 	  5.
 	  Either (a) there is no minimum Gross Coupon Rate; and/or
 
	  
 	  
 	  
 
	  
 	  
 	  (b)
 	  Seller, as Servicer of the Mortgages, shall not implement or enforce any provision establishing a minimum Gross Coupon Rate throughout the term of the Nonstandard
ARM. Seller shall provide written notice to each Borrower of the provisions set forth in this subparagraph (b) at the next coupon rate adjustment of the Nonstandard ARM, and shall maintain a copy of such notice in the mortgage file;
and/or
 
	  
 	  
 	  
 
	  
 	  
 	  (c)
 	  with respect to deliveries under the WAC ARM Guarantor Program only, certain of the Nonstandard ARMs which contain provisions establishing a minimum Gross Coupon
Rate throughout the term of such Nonstandard ARMs (the “Floor”), which provisions shall be enforced, Seller agrees as follows:
 
	  
 	  
 	  
 
	  
 	  
 	  
 	 (i)
 	  Seller shall not pool Nonstandard ARMs with Floors with any other ARMs, including Nonstandard ARMs referred to in subparagraphs (a) and (b) above. Each WAC ARM PC Pool of
Nonstandard ARMs with Floors shall be delivered pursuant to a separate conversion;
 
	  
 	  
 	  
 
	  
 	  
 	  
 	  (ii)
 	  with each conversion of Nonstandard ARMs with Floors Seller shall notify Freddie Mac’s commitment operator that such Conversion includes Nonstandard ARMs with
Floors.
 
	  
 	  
 	  
 
	  D.
 	  Warranties relating to Adjustable Rate Index. Seller hereby makes the following representations and warranties
relating to the Index of the Nonstandard ARMs:
 
	  
 	  
 	  
 
	  
 	  1.
 	  The Index applicable to the Nonstandard ARMs is the weekly average yield of U.S. Treasury securities as published by the Federal Reserve Board in Federal Reserve
Statistical Release No. H.15 (519) and adjusted to a constant maturity of one year.
 
	  
 	  
 	  
 
	  
 	 2.
 	  The Treasury Index used to adjust the Gross Coupon Rate is the most recent Index available as of the date 45 days prior to the date such adjustment is
effective.
 
						

  Special Programs and Products
 Provisions Relating to Nonstandard Nonconvertible ARMs
 MA02100134 –– Attachment 3
 Page 5 ––
10/24/2002

	  
 	  3.
 	  In the event that the Index becomes unavailable, the Servicer shall choose a new index based upon comparable information and methodology and approved by Freddie Mac.

	  
 	  
 
	  E.
 	  Warranties relating to Amortization. Seller hereby makes the following representations and warranties relating to amortization of the Nonstandard
ARMs:
 
	  
 	  
 
	  
 	  1.
 	  The amount of any excess of the applicable Index plus Gross Mortgage Margin over (a) the initial Gross Coupon Rate or (b) any adjusted Gross Coupon Rate, has not been or shall
not be, accumulated or carried forward and has not been or is not, added to the Gross Coupon Rate.
 
	  
 	  
 
	  
 	 2.
 	  Prior to the first adjustment of a Gross Coupon Rate, the scheduled monthly payment on a Mortgage is the amount which will fully amortize the principal balance of the Mortgage
in substantially equal installments over its remaining term and pay interest at the initial Gross Coupon Rate.
 
	  
 	  
 
	  
 	  3.
 	  Effective with the first payment due on a Mortgage following each adjustment of the Gross Coupon Rate, the scheduled monthly payment is adjusted to the amount which will fully
amortize the principal balance of the Mortgage over its remaining term in substantially equal installments and pay interest at the adjusted Gross Coupon Rate.
 
	  
 	  
 
	  F.
 	  Warranties Relating to Enforceability of Adjustments. Seller hereby makes the following representations and warranties relating to the enforceability of
adjustments of the Nonstandard ARMs:
 
	  
 	  
 
	  
 	  1.
 	  Increases and decreases in the Gross Coupon Rate and in monthly payments payable under each Note which have been implemented by Seller are enforceable by the holder of such Note
(except as enforcement may be limited by laws affecting the enforcement of creditors’ rights generally including, without limitation, those restraints resulting from the application of Chapter 11 or Chapter 13 of the United States Bankruptcy
Code) and the terms of the Notes are in accordance with applicable law.
 
	  
 	  
 
	  
 	 2.
 	  Increases and decreases in the Gross Coupon Rate and in monthly payments payable under each Note shall be implemented by the Servicer in accordance with the terms of each Note
and applicable law, except as expressly agreed otherwise herein, and shall be enforceable by the holder of such Note (except as enforcement may be limited by laws affecting the enforcement of creditors’ rights generally including, without
limitation, those restraints resulting from the application of Chapter 11 or Chapter 13 of the United States Bankruptcy Code).
 
	  
 	  
 
	  
 	  3.
 	  Seller is not a party to any litigation involving implementation of increases and decreases in the interest rate or in monthly payments under any mortgage note under any
mortgage containing provisions for interest rate or monthly payment
 

  Special Programs and Products
 Provisions Relating to Nonstandard Nonconvertible ARMs
 MA02100134
–– Attachment 3
 Page 6 –– 10/24/2002

	  
 	  
 	  adjustments, which provisions are substantially similar to those applicable to the Nonstandard ARMs. Seller indemnifies and holds Freddie Mac harmless from any and all losses,
damages, claims and liabilities, joint or several, to which Freddie Mac may become subject insofar as such losses, damages, claims and liabilities arise out of or are based upon Seller’s implementation of increases and decreases in the Mortgage
interest rate or in monthly payments under a Mortgage note, and shall reimburse Freddie Mac for any cost or expense of defending any lawsuit that may be brought against Seller and/or Freddie Mac concerning such implementation of increases and
decreases in the Mortgage interest rate or in monthly payments under a Mortgage note.
 
	  
 	  
 
	 G.
 	  Delivery and Conversion Procedures. All ARMs, shall be delivered under the WAC ARM Guarantor Program only or the WAC ARM Guarantor Program only.] In
connection with a conversion of Nonstandard ARMs, Seller shall notify Freddie Mac’s commitment operator that the conversion includes Nonstandard ARMs and shall specify the applicable product code and program code for the Nonstandard ARMs to be
included in the pool. The product/program codes for the Nonstandard ARMs are as follows:
 

 

	  Type ARM
 	   
 	  Product/Program Code
 	   
 
	 
 	   
 	 
 	   
 
	  2% annual rate-capped, 1-year constant maturity Treasury-indexed nonconvertible ARM
 	  
 	  
 	  180-002
 	  
 
					

 

	  H.
 	  Pooling Requirements. All Nonstandard ARMs in an ARM PC Pool or WAC ARM PC Pool, as applicable, must have the same periodic rate cap value (for example 1% or 2%, etc.),
adjustment period regardless of number of months to the next adjustment (for example, annual, semiannual, 3/1 or 5/1, etc.), and index (for example, 1-Year Treasury, 6-month Treasury, COF or FHLBB, etc.), except (i) 3/1 ARMs and 5/1 ARMs may be
pooled together if they have the same next coupon rate adjustment date (same day and month), and (ii) 3/1 ARMs within 18 months of the next coupon adjustment date may be pooled with annually adjusting 2% Treasury indexed ARMs. Seller warrants that
all ARMs that do not satisfy the above criteria are pooled separately
 

  Special Programs and Products
 Provisions Relating to Nonstandard Nonconvertible ARMs
 MA02100134
–– Attachment 3
 Page 7 –– 10/24/2002

   ATTACHMENT 4
 JUNIOR GUARANTOR PROGRAM
 Special Negotiated Provisions Applicable to 
 Mortgages Delivered under the SS&TG Junior Guarantor
Program

	  This Attachment, including the exhibits, if any, describes the terms under which Freddie Mac will purchase Mortgages under the special Guarantor delivery program
developed by Freddie Mac’s Securities Sales & Trading Group (“SS&TG”). Mortgages delivered pursuant to this Attachment are subject to the provisions of the Guide, as amended by this Attachment.
 
	  
 
	  1.
 	  Definitions. Terms used in this Attachment, including terms not capitalized, are defined or otherwise described in the Guide.
 
	  
 	  
 
	  
 	 Junior Guarantor Mortgages are Mortgages permitted to be sold to Freddie Mac in exchange for Junior Guarantor PCs described in the Exhibit to this Attachment titled
“ELIGIBLE JUNIOR GUARANTOR PRODUCTS”. Eligible Junior Guarantor Mortgages that are adjustable rate mortgages are referred to as “Junior Guarantor ARMs”.
 
	  
 	  
 
	  
 	  Junior Guarantor PCs are Freddie Mac PCs backed by pools of Junior Guarantor Mortgages with the characteristics described in this Attachment. For Adjustable Rate
Mortgages, Junior Guarantor PCs are Freddie Mac WAC ARM PCs.
 
	  
 	  
 
	  2.
 	  Eligible Products and Pool Size. Seller may sell eligible Junior Guarantor Mortgages in exchange for Junior Guarantor PCs in accordance with the terms of this Attachment.
The terms and conditions specified in the Guide governing the sale of Mortgages to Freddie Mac in exchange for PCs will apply to Junior Guarantor Mortgages, except as modified by this Agreement. For Adjustable Rate Mortgages, the terms and
conditions specified in the Guide governing the sale of ARMs to Freddie Mac in exchange for WAC ARM PCs will apply to Junior Guarantor ARMs, except as modified by this Agreement.
 
	  
 	  
 
	  
 	  Although the provisions of Sections 17.7(c) and 29.6(f) first bullet of the Guide provide otherwise, Junior Guarantor PCs shall have a minimum pool size of $50,000.

	  
 	  
 
	 3.
 	  Guarantee Fee. Provided that Seller elects the Accelerated Remittance Cycle in connection with its sale of eligible Junior Guarantor Mortgages to Freddie Mac, the
guarantee fee shall be 0.00 basis points for each Junior Guarantor Mortgage sold to Freddie Mac in exchange for a Junior Guarantor PC. The guarantee fee will be adjusted if Seller elects to use a different remittance cycle.
 
	  
 	  
 
	  4.
 	  Sale of Junior Guarantor PCs to SS&TG. Seller agrees to sell each Junior Guarantor PC to SS&TG pursuant to a “forward sale” with SS&TG.

	  
 	  
 
	  5.
 	  Product/Program Codes. Within the same trade month that Seller enters into a forward trade to sell a Junior Guarantor PC to SS&TG, Seller shall contact Freddie
Mac’s Commitment Services Department (703-761-7170) to enter into a binding commitment to
 

  Special Programs and Products 
 Junior Guarantor Program
 MA02100134
–– Attachment 4
 Page 1 –– 10/24/2002

	  
 	  sell eligible Junior Guarantor Mortgages to Freddie Mac in exchange for the Junior Guarantor PCs that will be sold to SS&TG.
 
	  
 	  
 
	  
 	 When delivering Junior Guarantor Mortgages to Freddie Mac, Seller shall use the product/program codes specified in the Exhibit to this Attachment titled “OFFER
PRODUCT/PROGRAM CODES EXHIBIT”.
 
	  
 	  
 
	  6.
 	  Variable Servicing. In connection with the sale of each Junior Guarantor ARM to Freddie Mac, Seller shall specify a Servicing Spread (“Coupon Servicing
Spread”), a Margin Servicing Spread, and a Life-of-Loan Cap Servicing Spread that meets the requirements of Section 30.2(h) of the Guide for 1-year Treasury ARMs.
 
	  
 	  
 
	  
 	  The Coupon Servicing Spread, the Margin Servicing Spread and the Life-of-Loan Cap Servicing Spread must not be less than 25.0 basis points (0.250 percent), provided
however that Seller may specify servicing which varies at intervals in the life of the Mortgage (pool formation, adjustment at index plus margin, and adjustment limited by Life-of-Loan Cap) (“variable servicing”) provided that:

	  
 	  
 
	  
 	  (a)
 	  when calling the Freddie Mac Commitment Line to take down a conversion, Seller must speak to a Conversion Representative and specify the Coupon Servicing Spread, the Margin
Servicing Spread, and the Life-of-Loan Cap Servicing Spread; the various servicing spreads will be applied to each Mortgage in each PC pool delivered pursuant to such conversion;
 
	  
 	  
 
	  
 	 (b)
 	  the PC Coupon at issuance of the PC for such Mortgages in which Seller has specified variable servicing is calculated by reducing the Mortgage Coupon of each such ARM in the
related PC Pool by the related Coupon Servicing Spread retained by Seller to yield a net figure for each Mortgage, then computing the weighted average of the resulting net figures using the UPB of each Mortgage as a weight, and subtracting the
Required Spread from the resulting weighted average;
 
	  
 	  
 
	  
 	  (c)
 	  the Required Net Yield of each Mortgage for which Seller has specified variable servicing equals the Gross Mortgage Coupon minus the Coupon Servicing Spread. Following an
interest change date, the Required Net Yield for each such Mortgage equals the Gross Mortgage Margin plus the applicable index value, rounded to the nearest one-eighth of one percent (0.125 percent), minus the appropriate Servicing Spread, subject
to periodic rate caps, and required net Life-of-Loan Caps;
 
	  
 	  
 
	  
 	  (d)
 	  the Required Net Margin for each Mortgage for which Seller has specified variable servicing equals the Gross Mortgage Margin minus the Margin Servicing Spread; and

	  
 	  
 
	  
 	 (e)
 	  the required net Life-of-Loan Cap of each Mortgage for which Seller has specified variable servicing equals the gross Life-of-Loan Cap minus the Life-of-Loan Cap Servicing
Spread.
 

  Special Programs and Products
 Junior Guarantor Program
 MA02100134 –– Attachment 4
 Page 2 –– 10/24/2002 

	  7.
 	  Modification. Seller agrees that Freddie Mac may unilaterally modify, amend, and/or cancel the provisions of this Attachment, including any of the Exhibits to this
Attachment or any of the other Attachments referenced in this Attachment or in the Exhibits to this Attachment, upon 90 days prior written notice to Seller.
 

 
  Special
Programs and Products
 Junior Guarantor Program
 MA02100134 –– Attachment 4
 Page 3 –– 10/24/2002

   EXHIBIT
 ELIGIBLE JUNIOR GUARANTOR PRODUCTS
  This Exhibit to the Junior Guarantor Program
Attachment, states the products eligible to be sold to Freddie Mac in exchange for Junior Guarantor PCs (“Junior Guarantor Mortgages”). Eligible adjustable rate mortgages are referred to as “Junior Guarantor ARMs”.

	  1.
 	  Treasury ARMs meeting the requirements of the Treasury-Indexed ARMs Attachment (Junior Guarantor Program) to Seller’s Master Agreement and the terms of the Junior Guarantor
Program Attachment.
 
	  
 	  
 
	 2.
 	  LIBOR ARMs meeting the requirements of the LIBOR ARMs Attachment and the terms of the Junior Guarantor Program Attachment.
 

  When delivering Junior Guarantor ARMs to Freddie Mac, although the Purchase Documents for the specific product may provide otherwise, Seller must use the offer product/program codes specified in the Exhibit to this Attachment
titled, “OFFER PRODUCT/PROGRAM CODES EXHIBIT”.
  Freddie Mac may unilaterally add or delete, modify or amend one or more eligible Junior Guarantor ARM products upon 90 days prior written
notice to Seller. 
  Special Programs and Products
 Junior Guarantor Program
 Eligible Junior Guarantor Products - Exhibit
 MA02100134 –– Attachment 4
 Page l ––
10/24/2002

   EXHIBIT
 OFFER PRODUCT/PROGRAM CODES
  This Exhibit to the Junior Guarantor Program Attachment,
lists the Offer Product/Program Codes to be used with Junior Guarantor ARMs sold to Freddie Mac in exchange for Junior Guarantor PCs.
  Instructions. On the trade month that Seller enters
into a forward trade to sell a Junior Guarantor PC to SS&TG, Seller must contact Freddie Mac’s Commitment Services Department (703-761-7170) to enter into a binding commitment to sell Junior Guarantor ARMs to Freddie Mac in exchange for the
Junior Guarantor PCs that will be sold to SS&TG. When delivering Junior Guarantor ARMs, Seller must specify the applicable offer products/program code stated below.
  I.          Treasury ARMs
  A.          Nonconvertible Treasury
ARMs

	 Nonconvertible Treasury ARMs
 	   
 
	 
 	   
 
	  Features
 	  
 	  Offer Product-Product Code
 	  
 
	 
 	  
 	 
 	  
 
	  
 	   
 	  ARC
 Remittance
 	   
 	  First Tuesday Remittance
 	  
 
	  
 	   
 	 
 	   
 	 
 	  
 
	 3/1 Treasury ARM (2/2/6)
 	  
 	  
 	  192-011
 	  
 	  
 	  192-012
 	  
 
	  5/1 Treasury ARM (2/2/5)
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  Assumable Life of Loan
 	  
 	  
 	  194-013
 	  *
 	  
 	  194-014
 	  *
 
	  
 	  Assumable after Initial Period
 	  
 	  
 	  194-015
 	  *
 	  
 	  194-016
 	  *
 
	 5/1 Treasury ARM (2/2/6)
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  Assumable Life of Loan
 	  
 	  
 	  194-013
 	  *
 	  
 	  194-014
 	  *
 
	  
 	  Assumable after Initial Period
 	  
 	  
 	  194-015
 	  *
 	  
 	  194-016
 	  *
 
	 5/1 Treasury ARM (5/2/5)
 	  
 	  
 	  811-002
 	  
 	  
 	  811-003
 	  
 
	  7/1 Treasury ARM (5/2/5)
 	  
 	  
 	  639-004
 	  
 	  
 	  639-005
 	  
 
	  10/1 Treasury ARM (5/2/5)
 	  
 	  
 	  643-003
 	  
 	  
 	  643-004
 	  
 

  B.          Convertible Treasury
ARMs

	  Convertible Treasury ARMs
 	   
 
	 
 	   
 
	 Features
 	  
 	  Offer Product-Program Code
 	  
 
	 
 	  
 	 
 	  
 
	  
 	  
 	  ARC
 Remittance
 	   
 	  First Tuesday Remittance
 	  
 
	  
 	  
 	 
 	   
 	 
 	  
 
	  3/1 Treasury ARM (2/2/6)
 	  
 	  
 	  254-006
 	  
 	  
 	  254-007
 	  
 
	 5/1 Treasury ARM (2/2/5)
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  Assumable Life of Loan**
 	  
 	  
 	  256-007
 	  *
 	  
 	  256-008
 	  *
 
	  
 	  Assumable after Initial Period**
 	  
 	  
 	  256-009
 	  *
 	  
 	  256-010
 	  *
 
	  5/1 Treasury ARM (2/2/6)
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	 Assumable Life of Loan**
 	  
 	  
 	  256-007
 	  *
 	  
 	  256-008
 	  *
 
	  
 	  Assumable after Initial Period**
 	  
 	  
 	  256-009
 	  *
 	  
 	  256-010
 	  *
 
	  5/1 Treasury ARM (5/2/5)
 	  
 	  
 	  812-002
 	  
 	  
 	  812-003
 	  
 
	 7/1 Treasury ARM (5/2/5)
 	  
 	  
 	  640-006
 	  
 	  
 	  640-007
 	  
 
	  10/1 Treasury ARM (5/2/5)
 	  
 	  
 	  644-003
 	  
 	  
 	  644-004
 	  
 

  Special Programs and Products
 Junior Guarantor Program
 Junior Guarantor Offer Product
Codes Exhibit
 MA02100134 –– Attachment 4
 Page 1 –– 10/24/2002

	  
 	  *
 	  The Junior Guarantor Program offer product/program numbers for the 5/1 Treasury ARM (2/2/5) and (2/2/6) are the same.
 
	  
 	  
 
	  
 	  **
 	  Until Conversion Option exercised.
 
	  
 	  
 
	 II.
 	  LIBOR ARMs
 

  A.          Nonconvertible LIBOR ARMs

	  Nonconvertible LIBOR ARMs
 	   
 
	 
 	   
 
	  Features
 	  
 	  Offer Product-Program Code
 	  
 
	 
 	  
 	 
 	  
 
	  
 	  
 	  ARC
 Remittance
 	   
 	  First Tuesday Remittance
 	  
 
	  
 	  
 	 
 	   
 	 
 	  
 
	 1-year LIBOR ARM (2/6)
 	  
 	  
 	  726-002
 	  
 	  
 	  726-003
 	  
 
	  1-year LIBOR ARM (3/6)
 	  
 	  
 	  727-002
 	  
 	  
 	  727-003
 	  
 
	  3/1 LIBOR ARM (2/2/5)
 	  
 	  
 	  715-002
 	  *
 	  
 	  715-003
 	  *
 
	 3/1 LIBOR ARM (2/2/6)
 	  
 	  
 	  715-002
 	  *
 	  
 	  715-003
 	  *
 
	  3/1 LIBOR ARM (3/2/6)
 	  
 	  
 	  722-002
 	  
 	  
 	  722-003
 	  
 
	  5/1 LIBOR ARM (2/2/5)
 	  
 	  
 	  716-004
 	  **
 	  
 	  716-005
 	  **
 
	  5/1 LIBOR ARM (2/2/6)
 	  
 	  
 	  716-004
 	  **
 	  
 	  716-005
 	  **
 
	 5/1 LIBOR ARM (3/2/6)
 	  
 	  
 	  723-002
 	  
 	  
 	  723-003
 	  
 
	  5/1 LIBOR ARM (5/2/5)
 	  
 	  
 	  717-002
 	  
 	  
 	  717-003
 	  
 
	  7/1 LIBOR ARM (5/2/5)
 	  
 	  
 	  718-002
 	  
 	  
 	  718-003
 	  
 
	  10/1 LIBOR ARM (5/2/5)
 	  
 	  
 	  719-002
 	  
 	  
 	  719-003
 	  
 

 B.          Convertible
LIBOR ARMs

	  Convertible LIBOR ARMs
 	   
 
	 
 	   
 
	  Features
 	  
 	  Offer Product-Program Code
 	  
 
	 
 	  
 	 
 	  
 
	  
 	  
 	  ARC
 Remittance
 	  
 	  First Tuesday Remittance
 	  
 
	  
 	  
 	 
 	  
 	 
 	  
 
	 1-year LIBOR ARM (2/6)
 	  
 	   
 	  728-002
 	  
 	  
 	  728-003
 	  
 
	  1-year LIBOR ARM (3/6)
 	  
 	  
 	  729-002
 	  
 	  
 	  729-003
 	  
 
	  3/1 LIBOR ARM (2/2/5)
 	  
 	  
 	  730-002
 	  *
 	  
 	  730-003
 	  *
 
	  3/1 LIBOR ARM (2/2/6)
 	  
 	  
 	  730-002
 	  *
 	  
 	  730-003
 	  *
 
	 3/1 LIBOR ARM (3/2/6)
 	  
 	  
 	  731-002
 	  
 	  
 	  731-003
 	  
 
	  5/1 LIBOR ARM (2/2/5)
 	  
 	  
 	  732-002
 	  **
 	  
 	  732-003
 	  **
 
	  5/1 LIBOR ARM (2/2/6)
 	  
 	  
 	  732-002
 	  **
 	  
 	  732-003
 	  **
 
	  5/1 LIBOR ARM (3/2/6)
 	  
 	  
 	  733-002
 	  
 	  
 	  733-003
 	  
 
	 5/1 LIBOR ARM (5/2/5)
 	  
 	  
 	  734-002
 	  
 	  
 	  734-003
 	  
 
	  7/1 LIBOR ARM (5/2/5)
 	  
 	  
 	  735-002
 	  
 	  
 	  735-003
 	  
 
	  10/1 LIBOR ARM (5/2/5)
 	  
 	  
 	  736-002
 	  
 	  
 	  736-003
 	  
 

 

	  
 	  *
 	  The Junior Guarantor Program offer product/program numbers for the 3/1 LIBOR ARM (2/2/5) and (2/2/6) are the same.
 
	  
 	  
 
	  
 	 **
 	  The Junior Guarantor Program offer product/program numbers for the 5/1 LIBOR ARM (2/2/5) and (2/2/6) are the same.
 

   
  Special Programs and Products
 Junior Guarantor Program
 Junior Guarantor Offer Product Codes Exhibit
 MA02100134 –– Attachment 4
 Page 2
–– 10/24/2002

   ATTACHMENT 5
 1-YEAR LIBOR ARMS AND CONVERTIBLE ARMS
 Special Negotiated Terms Applicable to 1-Year LIBOR-Indexed
 ARMs and Convertible
ARMs
  This Attachment, including the accompanying exhibits, states the terms and conditions under which Freddie Mac will purchase adjustable-rate Mortgages, including Convertible
adjustable-rate Mortgages, that adjust based on the 1-year LIBOR Index. ARMs delivered pursuant to this Attachment are subject to the provisions of the Guide, as amended and supplemented by this Attachment and the other applicable Purchase
Documents.

	  1.
 	  Definitions. Terms used in this Attachment, including terms not capitalized, are defined or otherwise described in the Guide.
 
	  
 	  
 
	  
 	  The 1-Year LIBOR Index is the one-year London Interbank Offered Rate (“LIBOR”) which is the average of interbank offered rates for 1-year U.S.
dollar-denominated deposits in the London market, as published in The Wall Street Journal. The Index figure used is the most recent Index figure available as of the date 45 days before each Interest Change Date.
 
	  
 	  
 
	  
 	 Convertible LIBOR ARMs are LIBOR ARMs with an option to convert to a fixed rate of interest within a specified time period.
 
	  
 	  
 
	  
 	  The First Change Date Cap is the maximum interest rate increase or decrease on the first Interest Change Date, expressed as a percent; the maximum interest rate increase
and the maximum interest rate decrease must be the same.
 
	  
 	  
 
	  
 	  The Initial Period is the period from the Origination Date of the Mortgage until the first Interest Change Date, expressed in years.
 
	  
 	  
 
	  
 	  The Interest Change Date, as defined in the Glossary to the Guide, is each date, as established in the Note, on which the rate of interest could change.
 
	  
 	  
 
	  
 	  LIBOR ARMs are adjustable-rate Mortgages that adjust based on the 1-Year LIBOR Index and meet the requirements of this Attachment. The term LIBOR ARMs includes
Convertible LIBOR ARMs.
 
	  
 	  
 
	  
 	 The Life of Loan Cap is the maximum interest rate increase over the life of the Mortgage, expressed as a percent.
 
	  
 	  
 
	  
 	  The Periodic Cap is the maximum interest rate increase or decrease on each Interest Change Date after the first Interest Change Date, expressed as a percent. For 1-year
LIBOR ARMs, the Initial Cap and the Periodic Cap are the same.
 
	  
 	  
 
	  
 	  The Subsequent Adjustment Period is the period from the first Interest Change Date, and each Interest Change Date thereafter, until the next succeeding Interest Change
Date, expressed in years.
 

  Special Programs and Products
 1-Year Libor ARMs And Convertible ARMs
 MA02100134 –– Attachment 5
 Page 1 –– 10/24/2002

	  2.
 	  Eligible Mortgages. Under the terms of this Attachment, Seller may deliver the LIBOR ARMs, including Convertible LIBOR ARMs, that are not currently mortgage
products eligible for purchase under the Guide, provided such mortgages otherwise satisfy the requirements of the Guide and this Attachment. Eligible LIBOR ARMs must have the features and characteristics described in the attached Eligible LIBOR ARMs
Exhibit.
 
	  
 	  
 
	  
 	 Except as otherwise specified in this Attachment, all 1-year LIBOR ARMs must comply with all requirements of the Guide applicable to 2% 1-year ARMs and all 3/1, 5/1,
7/1 and 10/1 LIBOR ARMs must comply with all requirements of the Guide applicable to 3/1, 5/1, 7/1 and 10/1 ARMs, respectively. Except as modified by this Attachment, all Convertible LIBOR ARMs must comply with the provisions stated in Chapter 31 of
the Guide
 
	  
 	  
 
	  
 	  (a)
 	  Adjustment Periods and Caps. LIBOR ARMs must have the following adjustment periods and caps:
 
	  
 	  
 
	  
 	  
 	  •
 	  1-year LIBOR ARM (2/6)
 
	  
 	  
 	  •
 	  1-year LIBOR ARM (3/6)
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  For 1-year LIBOR ARMs, the initial term “1-year” represents the term of the Initial Period and each Subsequent Adjustment Period and the numeric code in
parenthesis at the end represents the “Periodic Cap/Life of Loan Cap”.
 
	  
 	  
 	  
 
	  
 	  
 	 •
 	  3/1 LIBOR ARM (2/2/5)
 
	  
 	  
 	  •
 	  3/1 LIBOR ARM (2/2/6)
 
	  
 	  
 	  •
 	  3/1 LIBOR ARM (3/2/6)
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  •
 	  5/1 LIBOR ARM (2/2/5)
 
	  
 	  
 	  •
 	  5/1 LIBOR ARM (2/2/6)
 
	  
 	  
 	  •
 	  5/1 LIBOR ARM (3/2/6)
 
	  
 	  
 	 •
 	  5/1 LIBOR ARM (5/2/5)
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  •
 	  7/1 LIBOR ARM (5/2/5)
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  •
 	  10/1 LIBOR ARM (5/2/5)
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  For 3/1, 5/1, 7/1 and 10/1 LIBOR ARMs, the initial numeric code represents the terms of the “Initial Period/Subsequent Adjustment Period” and the numeric
code in parenthesis at the end represents the “First Change Date Cap/Periodic Cap/Life of Loan Cap”.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  Origination Date. All LIBOR ARMs must have an Origination Date on or after March 1, 2001; all Convertible LIBOR ARMs must have an Origination Date on or after
August 1, 2001.
 
						

   
  Special Programs and Products
 1-Year Libor ARMs And Convertible ARMs
 MA02100134 –– Attachment
5
 Page 2 –– 10/24/2002 

	  3.
 	  Loan Instruments. LIBOR ARMs must be originated on the current version of the applicable jurisdiction’s FNMA/FHLMC Uniform Security Instrument.
 
	  
 	  
 
	  
 	  LIBOR ARMs must be originated on the Notes and Riders identified below, copies of which are enclosed with this Attachment. Seller may obtain the Notes and Riders in electronic
medium by contacting its Freddie Mac Account Manager.
 

 

	  1-year LIBOR 
 ARM
 	  
 	  3/1 LIBOR
 ARM
 	  
 	  5/1 LIBOR
 ARM
 	  
 	  7/1 LIBOR
 ARM
 	  
 	  10/1 LIBOR
 ARM
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 
	 LIBOR ARMs other than Convertible LIBOR ARMs
	 Multistate or if applicable, State specific, ARM Note 1 Year LIBOR Index Assumable during Life of Loan Freddie Mac Form 3546, 1-01 	 	  Multistate or if applicable, State specific, ARM Note 1 Year LIBOR Index Assumable during Life of Loan Freddie Mac Form 3546, 1-01
 	  
 	  Multistate or if applicable, State specific, ARM Note 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3548, 1-01
 	   
 	  Multistate or if applicable, State specific, ARM Note 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3548, 1-01
 	  
 	  Multistate or if applicable, State specific, ARM Note 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3548, 1-01
 
	 Multistate ARM Rider 1 Year LIBOR Index Assumable during Life of Loan Freddie Mac Form 3146, 1-01	 	  Multistate ARM Rider 1 Year LIBOR Index Assumable during Life of Loan Freddie Mac Form 3146, 1-01
 	  
 	  Multistate ARM Rider 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3148, 1-01
 	  
 	  Multistate ARM Rider 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3148, 1-01
 	  
 	  Multistate ARM Rider 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3148, 1-01
 
	 Convertible LIBOR ARMs
	 Multistate or if applicable, State specific, Convertible ARM Note 1 Year LIBOR Index Assumable during Life of Loan Freddie Mac Form 3547, 8-01 	 	  Multistate or if applicable, State specific, Convertible ARM Note 1 Year LIBOR Index Assumable during Life of Loan Freddie Mac Form 3547, 8-01
 	  
 	  Multistate or if applicable, State specific, Convertible ARM Note 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3549, 8-01

	  
 	  Multistate or if applicable, State specific, Convertible ARM Note 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3549, 8-01

	  
 	  Multistate or if applicable, State specific, Convertible ARM Note 1 Year I IBOR Index Assumable after Initial Period Freddie Mac Form 3549, 8-01

	 Multistate Convertible ARM Rider 1 Year LIBOR Index Assumable during Life of Loan Freddie Mac Form 3147, 8-01	 	 Multistate Convertible ARM Rider 1 Year LIBOR Index Assumable during Life of Loan Freddie Mac Form 3 147, 8-01
 	  
 	 Multistate Convertible ARM Rider 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3149, 8-01
 	  
 	 Multistate Convertible ARM Rider 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3149, 8-01
 	  
 	 Multistate Convertible ARM Rider 1 Year LIBOR Index Assumable after Initial Period Freddie Mac Form 3149, 8-01
 

  State specific ARM notes and Convertible ARM notes are available from Freddie Mac for Alaska, Florida, New Hampshire, Vermont, Virginia, West Virginia, and Wisconsin.
  Special Programs and Products
 1-Year Libor ARMs And Convertible ARMs
 MA02100134 –– Attachment 5
 Page 3 –– 10/24/2002

	  4.
 	  Completion of Loan Documents and Delivery. With respect to the completion of the Notes and Riders and the delivery of the LIBOR ARMs to Freddie Mac, Seller makes the
following representations and warranties with respect to values used for interest rate adjustments and caps and the conversion option:
 

 

	 1-year LIBOR ARM (2/6)	   
 	  1-year LIBOR ARM (3/6)
 	   
 	  3/1 LIBOR ARM (2/2/5)
 	   
 	  3/1 LIBOR ARM (2/2/6)
 	   
 	  3/1 LIBOR ARM (3/2/6)
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 
	 The initial stated interest rate remains fixed for the following Initial Period:
	 One year	 	  One year
 	  
 	  Three years
 	  
 	  Three years
 	  
 	  Three years
 
	 On the first Interest Change Date, the interest rate adjusts to a rate equal to the 1-Year LIBOR Index value plus the Gross Mortgage Margin, subject
to a First Change Date Cap of:
	 2 percent	 	  3 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  3 percent
 
	 Annually, after the first Interest Change Date, the Gross Coupon Rate adjusts to a rate equal to the 1-Year LIBOR Index value plus the Gross Mortgage
Margin, subject to a Periodic Cap of:
	 2 percent	 	  3 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 
	 There is no maximum decrease (floor) in the adjusted Gross Coupon Rate over the life of the loan; the maximum increase in the adjusted Gross Coupon
Rate does not exceed a Life-of-Loan Cap of:
	 6 percent	 	  6 percent
 	  
 	  5 percent
 	  
 	  6 percent
 	  
 	  6 percent
 

 

	 5/1 LIBOR ARM (2/2/5)	   
 	  5/1 LIBOR ARM (2/2/6)
 	   
 	  5/1 LIBOR ARM (3/2/6)
 	   
 	  5/1 LIBOR ARM (5/2/5)
 	   
 	  7/1 LIBOR ARM (5/2/5)
 	   
 	  10/1 LIBOR ARM (5/2/5)
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 
	 Gross Coupon Rate remains fixed for the following Initial Period:
	 Five years	 	  Five years
 	  
 	  Five years
 	  
 	  Five years
 	  
 	  Seven years
 	  
 	  Ten years
 
	 On the first Interest Change Date, the Gross Coupon Rate adjusts to a rate equal to the l-Year LIBOR Index value plus the Gross Mortgage Margin,
subject to a First Change Date Cap of:
	 2 percent	 	  2 percent
 	  
 	  3 percent
 	  
 	  5 percent
 	  
 	  5 percent
 	  
 	  5 percent
 
	 Annually, after the first Interest Change Date, the Gross Coupon Rate adjusts to a rate equal to the 1-Year LIBOR Index value plus the Gross Mortgage
Margin, subject to a Periodic Cap of:
	 2 percent	 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 
	 There is no maximum decrease (floor) in the adjusted Gross Coupon Rate over the life of the loan; the maximum increase in the adjusted Gross Coupon
Rate does not exceed a Life-of-Loan Cap of:
	  5 percent
 	  
 	  6 percent
 	  
 	  6 percent
 	  
 	  5 percent
 	  
 	  5 percent
 	  
 	  5 percent
 

 

	  
 	  The amount that must be inserted as the addition to the Freddie Mac RNY to determine the fixed interest rate after conversion must not be less than one-quarter of one percent or
greater than three-eighths of one percent.
 
	  
 	  
 
	 5.
 	  Gross Coupon Rate Adjustment. The first Interest Change Date must occur no earlier, and no later, than the following number of months from the first monthly Mortgage
payment date:
 

  Special Programs and Products
 1-Year Libor ARMs And Convertible ARMs
 MA02100134 –– Attachment 5
 Page 4 –– 10/24/2002

	   
 	   
 	  No earlier than:
 	   
 	  No later than:
 
	   
 	   
 	 
 	   
 	 
 
	  1 -year LIBOR ARMs
 	  
 	  6 months
 	  
 	  18 months
 
	  3/1 LIBOR ARMs
 	  
 	  30 months
 	  
 	  42 months
 
	 5/1 LIBOR ARMs
 	  
 	  54 months
 	  
 	  66 months
 
	  7/1 LIBOR ARMs
 	  
 	  78 months
 	  
 	  90 months
 
	  10/1 LIBOR ARMs
 	  
 	  114 months
 	  
 	  126 months
 

 

	  6.
 	  Credit Terms. Except as provided below, the credit and underwriting terms in the Guide applicable to 2% 1-year ARMs, 3/1, 5/1, 7/1 and 10/1 ARMs apply to
1-year, 3/1, 5/1, 7/1 and 10/1 LIBOR ARMs, respectively.
 
	  
 	  
 
	  
 	  (a)
 	  Calculating Borrower Qualifying Ratios. Although Section 30.5(b) of the Guide may provide otherwise, the Borrower may be qualified at the initial Gross Coupon Rate with
the following LIBOR ARMs:
 
	  
 	  
 
	  
 	  
 	 3/1 LIBOR ARM (2/2/5)
 
	  
 	  
 	  3/1 LIBOR ARM (2/2/6)
 
	  
 	  
 	  3/1 LIBOR ARM (3/2/6)
 
	  
 	  
 	  5/1 LIBOR ARM (2/2/5)
 
	  
 	  
 	  5/1 LIBOR ARM (2/2/6)
 
	  
 	  
 	  5/1 LIBOR ARM (3/2/6)
 
	  
 	  
 	  7/1 LIBOR ARM (5/2/5)
 
	  
 	  
 	  10/1 LIBOR ARM (5/2/5)
 
	  
 	  
 	  
 
	  
 	  
 	  For the following LIBOR ARMs, the Borrower must be qualified as follows:
 

 

	  Type LIBOR ARM
 	   
 	  Conditions to be satisfied for Borrower to be qualified at initial Gross Coupon Rate
 	   
 	  Rate at which Borrower must be qualified if conditions not satisfied
 
	 
 	   
 	 
 	   
 	 
 
	  1-year LIBOR ARM (2/6) and (3/6)
 	  
 	  (i)
 	  the Mortgage term is 15 years or less, or
 	  
 	  the initial Gross Coupon Rate plus the 2 percent
 
	  
 	  
 	  (ii)
 	  the LTV ratio is less than or equal to 80 percent, and the initial period discount is 2.0 percent or less.
 	  
 	  
 
	 5/1 LIBOR ARM (5/2/5)
 	  
 	  (i)
 	  the Mortgage term is 15 years or less, or
 	  
 	  the initial Gross Coupon Rate plus 2 percent
 
	  
 	  
 	  (ii)
 	  the LTV ratio is less than or equal to 80 percent, and the  initial period discount is 1.5 percent or less.
 	  
 	  
 

 
  Special Programs and Products
 1-Year Libor ARMs And Convertible ARMs
 MA02100134
–– Attachment 5
 Page 5 –– 10/24/2002

	  (b)
 	  Temporary Subsidy Buydown Plans. Provided the terms of Section 25.4 of the Guide are complied with, temporary subsidy buydowns are:
 

 

	  Permitted for 1-4 unit Primary 
 Residences and Second 
 Homes with:
 	   
 	  Permitted for 1-2 unit Primary 
 Residences and Second 
 Homes with:
 
	 
 	   
 	 
 
	 7/1 LIBOR ARMs (5/2/5) 
 10/1 LIBOR ARMs (5/2/5)
 	  
 	  5/1 LIBOR ARMs (2/2/5)
 5/1 LIBOR ARMs (2/2/6)
 
	  Not permitted with:
 	  
 	  
 
	  1 -year LIBOR ARMs (2/6)
 1 -year LIBOR ARMs (3/6)
 3/1 LIBOR ARMs (2/2/5)
 3/1 LIBOR ARMs (2/2/6) 
 	  
 	  3/1 LIBOR ARMs (3/2/6)
 5/1 LIBOR ARMs (3/2/6) 
 5/1 LIBOR ARMs (5/2/5)
 

 

	  7.
 	  Delivery Methods; Cash and Guarantor Special Requirements and Offer Products. Seller may deliver LIBOR ARMs, other than Convertible LIBOR ARMs, under the
Original Cash Program or under the WAC ARM Guarantor Program; Convertible LIBOR ARMs may be delivered under the WAC ACARM Guarantor Program only.
 
	  
 	  
 
	  
 	  (a)
 	  Original Cash Program Deliveries. Freddie Mac will not post on any rate services, the Required Net Yield, Required Net Margin, or the Required Net Life of Loan Cap or the
cash purchase price Freddie Mac will pay for LIBOR ARMs.
 
	  
 	  
 
	  
 	  
 	 To obtain pricing information and to enter into a Purchase Contract or commitment, Seller must call Freddie Mac (703-761-7170). Seller may obtain commitments or enter into
Purchase Contracts between 10:00 a.m. and 4:30 p.m. Eastern time unless Freddie Mac has ceased making commitments on that day for the desired delivery period or program. To make an offer, Seller must provide the information required in Sections 9.12
and 10.5 of the Guide and except as noted below, comply with all applicable requirements in Chapter 10 of the Guide.
 
	  
 	  
 
	  
 	  
 	  Seller must specify one of the offer product codes stated on the Offer Product Code Exhibit when submitting its offer for the ARM Original Cash program.
 
	  
 	  
 
	  
 	  (b)
 	  Guarantor Deliveries. LIBOR ARMs may be sold under the WAC ARM or WAC ACARM Guarantor Program following the requirements in Chapter 11 and 31, respectively, of the
Guide.
 
	  
 	  
 
	  
 	  
 	  LIBOR ARMs, other than Convertible LIBOR ARMs will have the following prefixes:
 
	  
 	  
 	  
 
	  
 	  
 	 1-year LIBOR ARMs (2/6): 1C 
 1-year LIBOR ARMs (3/6): 1D 
 3/1, 5/1, 7/1 and 10/1 LIBOR ARMs: 1B
 

  Special Programs and Products
 1-Year Libor ARMs And Convertible ARMs
 MA02100134 –– Attachment 5
 Page 6 –– 10/24/2002

	  
 	  
 	  Convertible LIBOR ARMs will have the following prefixes:
 
	  
 	  
 	  
 
	  
 	  
 	  1 - year Convertible LIBOR ARMs (2/6): 1E
 
	  
 	  
 	  1-year Convertible LIBOR ARMs (3/6): 1F
 
	  
 	  
 	  3/1, 5/1, 7/1 and 10/1 Convertible LIBOR ARMs: 1B
 
	  
 	  
 	  
 
	  
 	  
 	  At the time Seller calls in a Guarantor Program Conversion for LIBOR ARMs, Seller must specify one of the offer products codes stated on the Offer Product Code
Exhibit.
 
	  
 	  
 
	 8.
 	  Investor Disclosure. For any Convertible LIBOR ARMs sold to Freddie Mac, Seller must comply with the following provisions relating to Additional
Supplements:
 
	  
 	  
 
	  
 	  (a)
 	  Information to be Furnished for Disclosure. Seller must prepare and distribute an Additional Supplement as described in Section 11.20 of the Guide for any PC Pool with
Convertible LIBOR ARMs. The Additional Supplement must be in the form attached as an Exhibit to this Attachment. The form is not a final document; it must be reviewed carefully and completed by the Seller.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Disclosure Delivery. No fewer than two Business Days before the Settlement Date, Seller must deliver the completed Additional Supplement, together with the name and
telephone number of the person responsible for the Additional Supplement, to Freddie Mac, Attention: Mortgage Purchase at fax: (703) 918-5846.
 
	  
 	  
 
	  
 	  (c)
 	  Information Dissemination. Seller consents to Freddie Mac’s dissemination of information Freddie Mac deems appropriate concerning each PC pool containing Convertible
LIBOR ARMs through any information vendors that it may use for disclosure with respect to PCs.
 
	  
 	  
 
	 9.
 	  Processing upon Conversion. Seller must repurchase and resell to Freddie Mac all Convertible LIBOR ARMs delivered hereunder that are converted to fixed-rate
Mortgages (“Converted Mortgages”), upon the following terms and conditions:
 
	  
 	  
 
	  
 	  (a)
 	  Within five business days after the Conversion Date, Seller must transmit to Freddie Mac’s Loan Administration Department via MIDANET (Registered) a Loan-Level Report in
accordance with Section 79.5 of the Guide for each such Converted Mortgage.
 
	  
 	  
 
	  
 	  (b)
 	  Seller, as Servicer, must repurchase all Converted Mortgages for an amount calculated pursuant to Section 72.3 of the Guide, and must remit the proceeds of such repurchase to
Freddie Mac via the telephonic cash remittance system by 11:00 a.m., Seller’s local time, on the fifth business day after the Conversion Date.
 
	  
 	  
 
	  
 	  (c)
 	  Seller must resell to Freddie Mac each Converted Mortgage at the then-current price offered by Freddie Mac under Freddie Mac’s then-existing Cash or Guarantor Programs.
Seller must deliver Converted Mortgages to Freddie Mac
 

 Special Programs and Products
 1-Year Libor ARMs And Convertible ARMs
 MA02100134 –– Attachment 5

Page 7 –– 10/24/2002

	  
 	  
 	  within sixty days of the Conversion Date. Seller must identify each Converted Mortgage by inserting “036” (indicating fixed rate resale of converted ARM) in one of the
six 3-digit blocks of the special characteristics code field of the Mortgage Submission Schedule -Form 11.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  At Freddie Mac’s request, Seller must use a modified Mortgage Submission Schedule - Form 11, with the delivery of Converted Mortgages. Seller may also be required to
provide to Freddie Mac such reports as may be required by Freddie Mac to evidence that the Seller has delivered all Converted Mortgages to Freddie Mac.
 
	  
 	  
 	  
 
	  
 	  (e)
 	  Subject to having statutory authority to do so, Freddie Mac will repurchase all Converted Mortgages delivered by Seller under the terms of this section. Notwithstanding the
requirements of Section 32.2 of the Guide, Converted Mortgages are eligible for repurchase without additional underwriting if the Borrower was qualified at the time of origination of the Convertible LIBOR ARM in compliance with the terms and
conditions of the Guide, as modified by this Attachment.
 

 Special Programs and Products
 1-Year Libor ARMs And Convertible ARMs
 MA02100134 –– Attachment 5

Page 8 –– 10/24/2002

   EXHIBIT
 LIBOR ARMS
 Additional Supplement

	  ADDITIONAL SUPPLEMENT dated [_________], [_________]
 	  
 	  
 
	  PC Pool Number: [          ]
 	  Seller:
 	  Crescent Bank & Trust Company
 
	  
 	  
 	  dba Crescent Mortgage
 
	  
 	  
 	  115 Perimeter Center Place, Suite 285
 
	  
 	  
 	  Atlanta, GA 30346
 
	  CUSIP Number: [          ]
 
	  PC Type: {Select as appropriate:
 
	  [1-year][3/1][5/1][7/1][10/1] ARM
 
	  Adjustment Cap:  {Select one as appropriate}
 
	 [200 basis points]
 
	  [200 basis points, with a 300 basis point adjustment on the first adjustment]
 
	  [200 basis points, with a 500 basis point adjustment on the first adjustment]
 
	  Mortgage Type: Convertible [Whole Loan] Home
 
	  Index: LIBOR Index
 
	  Original Unpaid Principal Balance: $[          ]
 
	  Offering Circular: Offering Circular for Mortgage Participation Certificates (Guaranteed) February1, 2001
 

  This Additional Supplement describes certain characteristics of the PCs and/or the Mortgages comprising the PC Pool that are not contained in or that differ from the information and characteristics set forth in the PC Offering
Circular or the Form 15 PC Offering Circular supplement. All information is based on the estimated composition of the PC Pool as of the “as of date” appearing in the Form 15 PC Offering Circular Supplement. Information and representations
in this Additional Supplement about the Seller and the Mortgages are the information and representations only of the Seller; Freddie Mac makes no representations concerning these matters or the accuracy or veracity of the information provided.
Offerees should purchase PCs only after reading this Additional Supplement, the Form 15 PC Offering Circular supplement and the PC Offering Circular.
  DESCRIPTION OF THE
MORTGAGES
  General
  The Conversion Period applicable to each Convertible Mortgage contained in this PC Pool is [INSERT APPROPRIATE
INFORMATION, FOR EXAMPLE: anytime from the 12th through the 60th principal and interest payment dates]. The table below contains selected information about the Conversion Periods of the Convertible Mortgages contained in this
PC Pool.

	 Earliest & Latest
 Possible
 Conversion Dates
 	   
 	  Unpaid Principal
 Balance (“UPB”)
 of the Mortgages
 	   
 	  Percent of
 UPB of
 PC Pool
 	   
 	  Number and
 Percent of
 the Mortgages
 	   
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 

  [INSERT APPROPRIATE INFORMATION]

	  Special Programs and Products
 
	  1-Year Libor ARMs And Convertible ARMs - Exhibit
 
	  MA02100134 –– Attachment 5
 
	  Page 1 –– 10/24/2002
 

  EXHIBIT 
 LIBOR ARMS
 Offer Product Codes

	  Original Cash Deliveries
 
	  
 
	  Type LIBOR ARM
 	  
 	  Offer Product Code
 	  
 
	 
 	  
 	 
 	  
 
	  1-year LIBOR ARM (2/6)
 	  
 	  724
 	  
 
	  1-year LIBOR ARM (3/6)
 	  
 	  725
 	  
 
	  3/1 LIBOR ARM (2/2/5)
 	  
 	  710
 	  *
 
	 3/1 LIBOR ARM (2/2/6)
 	  
 	  710
 	  *
 
	  3/1 LIBOR ARM (3/2/6)
 	  
 	  720
 	  
 
	  5/1 LIBOR ARM (2/2/5)
 	  
 	  711
 	  **
 
	  5/1 LIBOR ARM (2/2/6)
 	  
 	  711
 	  **
 
	  5/1 LIBOR ARM (3/2/6)
 	  
 	  721
 	  
 
	  5/1 LIBOR ARM (5/2/5)
 	  
 	  712
 	  
 
	 7/1 LIBOR ARM (5/2/5)
 	  
 	  713
 	  
 
	  10/1 LIBOR ARM (5/2/5)
 	  
 	  714
 	  
 

 

	  
 	  
 	  *
 	  
 	  The Original Cash offer product numbers for the 3/1 LIBOR ARM (2/2/5) and (2/2/6) are the same.
 
	  
 	  
 	  **
 	  
 	  The Original Cash offer product numbers for the 5/1 LIBOR ARM (2/2/5) and (2/2/6) are the same.
 

 

	  Guarantor Program Deliveries
 	  
 
	  
 	  
 	  Offer Product Code
 	  
 
	  
 	  
 	 
 	  
 
	 Type LIBOR ARM
 	  
 	  Other than
 Convertible LIBOR
 ARM
 	   
 	  Convertible LIBOR
 ARM
 	   
 
	 
 	   
 	 
 	   
 	 
 	   
 
	  1-year LIBOR ARM (2/6)
 	  
 	  726
 	  
 	  728
 	  
 
	  1-year LIBOR ARM (3/6)
 	  
 	  727
 	  
 	  729
 	  
 
	 3/1 LIBOR ARM (2/2/5)
 	  
 	  715
 	  *
 	  730
 	  *
 
	  3/1 LIBOR ARM (2/2/6)
 	  
 	  715
 	  *
 	  730
 	  *
 
	  3/1 LIBOR ARM (3/2/6)
 	  
 	  722
 	  
 	  731
 	  
 
	  5/1 LIBOR ARM (2/2/5)
 	  
 	  716
 	  **
 	  732
 	  **
 
	 5/1 LIBOR ARM (2/2/6)
 	  
 	  716
 	  *
 	  732
 	  **
 
	  5/1 LIBOR ARM (3/2/6)
 	  
 	  723
 	  
 	  733
 	  
 
	  5/1 LIBOR ARM (5/2/5)
 	  
 	  717
 	  
 	  734
 	  
 
	  7/1 LIBOR ARM (5/2/5)
 	  
 	  718
 	  
 	  735
 	  
 
	  10/1 LIBOR ARM (5/2/5)
 	  
 	  719
 	  
 	  736
 	  
 

 

	  
 	  
 	  *
 	  
 	  The Guarantor Program offer product numbers for the 3/1 LIBOR ARM and Convertible LIBOR ARM (2/2/5) and (2/2/6) are the same.
 
	  
 	  
 	  **
 	  
 	  The Guarantor Program offer product numbers for the 5/1 LIBOR ARM and Convertible LIBOR ARM (2/2/5) and (2/2/6) are the same.
 
	  
 
	  Special Programs and Products
 
	  1-Year Libor ARMs And Convertible ARMs - Exhibit
 
	  MA02100134 –– Attachment 5
 
	  Page 1 –– 10/24/2002
 

   EXHIBIT
 Eligible LIBOR ARMs

	  Feature
 	   
 	  1-year LIBOR 
 ARM (2/6)
 	   
 	  1-year LIBOR 
 ARM (3/6)
 	   
 	  3/1 LIBOR
 ARM (2/2/5)
 	   
 	  3/1 LIBOR 
 ARM (2/2/6)
 	   
 	  3/1 LIBOR 
 ARM (3/2/6)
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 
	 Term
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 
	  Initial Period
 	  
 	  1 year
 	  
 	  1 year
 	  
 	  3 years
 	  
 	  3 years
 	  
 	  3 years
 
	 Subsequent Adjustment Period 	 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 
	 Term of adjustment after Initial Period	 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 
	 First Change Date Cap	 	  Same as Periodic Cap
 	  
 	  Same as Periodic Cap
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  3 percent
 
	 Periodic Cap	 	  2 percent
 	  
 	  3 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 
	 Life of Loan Cap	 	  6 percent
 	  
 	  6 percent
 	  
 	  5 percent
 	  
 	  6 percent
 	  
 	  6 percent
 
	 When assumable	 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 
	 Prepayment protection permitted 	 	  No
 	  
 	  No
 	  
 	  No
 	  
 	  No
 	  
 	  No
 
	 Convertible option permitted	 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 
	 Remittance Cycle-Cash	 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 
	 Remittance Cycle-Guarantor	 	  Standard: First Tuesday Optional: ARC
 	  
 	  Standard: First Tuesday Optional: ARC
 	  
 	  Standard: First Tuesday Optional: ARC
 	  
 	  Standard: First Tuesday Optional: ARC
 	  
 	  Standard: First Tuesday Optional: ARC
 
	 Seasoning	 	  Note date no earlier than 12 months prior to Delivery Date
 	  
 	  Note date no earlier than 12 months prior to Delivery Date
 	  
 	  Note date no earlier than 12 months prior to Delivery Date
 	  
 	  Note date no earlier than 12 months prior to Delivery Date
 	  
 	  Note date no earlier than 12 months prior to Delivery Date
 
	 Minimum Servicing Spread – Cash and Guarantor	 	  25 basis points
 	  
 	  25 basis points
 	  
 	  25 basis points
 	  
 	  25 basis points
 	  
 	  25 basis points
 
	 Maximum Servicing Spread – Cash	 	  100 basis points
 	  
 	  100 basis points
 	  
 	  37.5 basis points
 	  
 	  37.5 basis points
 	  
 	  37.5 basis points
 
	 Maximum Servicing Spread - Guarantor	 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 
	  
	 Special Programs and Products
	 1-Year Libor ARMs And Convertible ARMs - Exhibit – Eligible Libor ARMs
	 MA02100134 –– Attachment 5
	  Page 1 –– 10/24/2002
 

	 Feature	   
 	  5/1 LIBOR 
 ARM (2/2/5)
 	   
 	  5/1 LIBOR 
 ARM (2/2/6)
 	   
 	  5/1 LIBOR
 ARM (3/2/6)
 	   
 	  5/1 LIBOR
 ARM (5/2/5)
 	   
 	  7/1 LIBOR
 ARM (5/2/5)
 	   
 	  10/1 LIBOR 
 ARM (5/2/5)
 
	 
 	 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 
	 Term	 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 
	 Initial Period	 	  5 years
 	  
 	  5 years
 	  
 	  5 years
 	  
 	  5 years
 	  
 	  7 years
 	  
 	  10 years
 
	 Subsequent Adjustment Period	 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 
	 Term of adjustment after Initial Period	 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 	  
 	  Life of loan
 
	 First Change Date Cap	 	  2 percent
 	  
 	  2 percent
 	  
 	  3 percent
 	  
 	  5 percent
 	  
 	  5 percent
 	  
 	  5 percent
 
	 Periodic Cap	 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 
	 Life of Loan Cap	 	  5 percent
 	  
 	  6 percent
 	  
 	  6 percent
 	  
 	  5 percent
 	  
 	  5 percent
 	  
 	  5 percent
 
	 When assumable	 	  After Initial Period
 	  
 	  After Initial Period
 	  
 	  After Initial Period
 	  
 	  After Initial Period
 	  
 	  After Initial Period
 	  
 	  After Initial Period
 
	 Prepayment protection permitted	 	  No
 	  
 	  No
 	  
 	  No
 	  
 	  No
 	  
 	  No
 	  
 	  No
 
	 Convertible option permitted	 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 
	 Remittance Cycle-Cash	 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 
	 Remittance Cycle-Guarantor	 	  Standard: First Tuesday Optional: ARC
 	  
 	  Standard: First Tuesday Optional: ARC
 	  
 	  Standard: First Tuesday Optional: ARC
 	  
 	  Standard: First Tuesday Optional: ARC
 	  
 	  Standard: First Tuesday Optional: ARC
 	  
 	  Standard: First Tuesday Optional: ARC
 
	 Seasoning	 	  Note Date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 
	 Minimum Servicing Spread – Cash and Guarantor	 	  25 basis points
 	  
 	  25 basis points
 	  
 	  25 basis points
 	  
 	  25 basis points
 	  
 	  25 basis points
 	  
 	  25 basis points
 
	 Maximum Servicing Spread – Cash	 	  37.5 basis points
 	  
 	  37.5 basis points
 	  
 	  37.5 basis points
 	  
 	  37.5 basis points
 	  
 	  37.5 basis points
 	  
 	  37.5 basis points
 
	 Maximum Servicing Spread -Guarantor	 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 
	 
	  Special Programs and Products
 
	  1 -Year Libor ARMs And Convertible ARMs - Exhibit – Eligible Libor ARMs
 
	  MA02100134 –– Attachment 5
 
	  Page 2 –– 10/24/2002
 

   ATTACHMENT 6
 Special Negotiated Terms Applicable to ARMs and Convertible ARMs 
 with Adjustments Based on the 1-Year Constant Maturity Treasury
Index
 (Junior Guarantor Program)
  This Attachment, including the accompanying exhibits, states the terms and conditions under which Freddie Mac will purchase adjustable-rate Mortgages,
including Convertible adjustable-rate Mortgages, that adjust based on the 1-year constant maturity Treasury Index. Treasury ARMs delivered pursuant to this Attachment are subject to the provisions of the Guide, as amended and supplemented by this
Attachment and the other applicable Purchase Documents.

	 1.
 	  Definitions. Terms used in this Attachment, including terms not capitalized, are defined or otherwise described in the Guide.
 
	  
 	  
 
	  
 	  Assumable after Initial Period means assumable after the first Interest Change Date. For convertible ARMs, it means assumable after the Initial Period until the
Conversion Option is exercised.
 
	  
 	  
 
	  
 	  Assumable Life of Loan means assumable during and after the Initial Period; i.e., during the life of the Mortgage. For convertible ARMs, it means assumable during the
Initial Period and after the Initial Period until the Conversion Option is exercised.
 
	  
 	  
 
	  
 	  The First Change Date Cap is the maximum interest rate increase or decrease on the first Interest Change Date, expressed as a percent; the maximum interest rate increase
and the maximum interest rate decrease must be the same.
 
	  
 	  
 
	  
 	  The Initial Period is the period from the Note Date of the Mortgage until the first Interest Change Date, expressed in years.
 
	  
 	  
 
	  
 	 The Interest Change Date, as defined in the Glossary to the Guide, is each date, as established in the Note, on which the rate of interest could change.
 
	  
 	  
 
	  
 	  The Life of Loan Cap is the maximum interest rate increase over the life of the Mortgage, expressed as a percent.
 
	  
 	  
 
	  
 	  The Periodic Cap is the maximum interest rate increase or decrease on each Interest Change Date after the first Interest Change Date, expressed as a percent.

	  
 	  
 
	  
 	  The Subsequent Adjustment Period is the period from the first Interest Change Date, and each Interest Change Date thereafter, until the next succeeding Interest Change
Date, expressed in years.
 
	  
 	  
 
	  
 	  Treasury ARMs are adjustable-rate Mortgages that adjust based on the 1-Year constant maturity Treasury Index and meet the requirements of this Attachment. The term
Treasury ARMs includes Convertible Treasury ARMs.
 
	  
 
	  Special Programs and Products
 
	 Treasury Index ARMs
 
	  MA02100134 –– Attachment 6
 
	  Page 1 –– 10/24/2002
 

	  2.
 	  Eligible Mortgages. Under the terms of this Attachment, Seller may deliver Treasury ARMs, including Convertible Treasury ARMs, that are not currently mortgage
products eligible for purchase under the Guide, provided such mortgages otherwise satisfy the requirements of the Guide and this Attachment. Eligible Treasury ARMs must have the features and characteristics described in the attached Eligible
Treasury ARMs Exhibit.
 
	  
 	  
 
	  
 	  Except as otherwise specified in this Attachment, all 3/1, 5/1, 7/1 and 10/1 Treasury ARMs must comply with all requirements of the Guide applicable to 3/1, 5/1, 7/1
and 10/1 ARMs, respectively. Except as modified by this Attachment, all Convertible Treasury ARMs must comply with the provisions stated in Chapter 31 of the Guide.
 
	  
 	  
 
	  3.
 	  Adjustment Periods and Caps. Treasury ARMs must have the following adjustment periods and caps. The initial numeric code represents the terms of the
“Initial Period/Subsequent Adjustment Period” and the numeric code in parenthesis at the end represents the “First Change Date Cap/Periodic Cap/Life of Loan Cap”.
 
	  
 	  
 
	  
 	 •
 	  3/1 TREASURY ARM (2/2/6) Assumable Life of Loan
 
	  
 	  
 	  
 
	  
 	  •
 	  5/1 TREASURY ARM (2/2/5) Assumable Life of Loan
 
	  
 	  
 	  
 
	  
 	  •
 	  5/1 TREASURY ARM (2/2/6) Assumable Life of Loan
 
	  
 	  
 	  
 
	  
 	  •
 	  5/1 TREASURY ARM (2/2/5) Assumable after Initial Period
 
	  
 	  
 	  
 
	  
 	  •
 	  5/1 TREASURY ARM (2/2/6) Assumable after Initial Period
 
	  
 	  
 	  
 
	  
 	 •
 	  5/1 TREASURY ARM (5/2/5) Assumable after Initial Period
 
	  
 	  
 	  
 
	  
 	  •
 	  7/1 TREASURY ARM (5/2/5) Assumable after Initial Period
 
	  
 	  
 	  
 
	  
 	  •
 	  10/1 TREASURY ARM (5/2/5) Assumable after Initial Period
 
	  
 	  
 
	  4.
 	  Loan Instruments. Treasury ARMs must be originated on the current version of the applicable jurisdiction’s FNMA/FHLMC Uniform Security
Instrument.
 
	  
 	  
 
	  
 	  Treasury ARMs must be originated on the Notes and Riders identified below:
 
	  
 	  
 
	  
 	 (a)
 	  Nonconvertible.
 
	  
 	  
 	  
 
	  
 	  
 	  3/1 and 5/1 Treasury ARMs that are Assumable Life of Loan
 
	  
 	  
 	  
 
	  
 	  
 	  Note:
 	  
 
	  
 	  
 	  •
 	  Multistate or if applicable, State specific, Adjustable Rate Note – ARM 5-2 (1-Year Treasury Index – [2%] Rate Caps) Fannie/Mae/Freddie Mac Form  3502,
1/01
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Rider:
 	  
 
	  
 	  
 	 •
 	  Multistate Adjustable Rate Rider – ARM 5-2 (1-Year Treasury Index – [2%] Rate Caps) Fannie Mae/Freddie Mac Form 3111, 1/01
 
	  
 	  
 	  
 	  
 
	  Special Programs and Products
 
	  Treasury Index ARMs
 
	  MA02100134 –– Attachment 6
 
	  Page 2 –– 10/24/2002
 
						

	  
 	  
 	  5/1, 7/1 and 10/1 Treasury ARMs that are Assumable after Initial Period
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Note:
 	  
 
	  
 	  
 	 •
 	  Multistate Initial Period Fixed/Adjustable Rate Note (1-year Treasury Index – Rate Caps), Freddie Mac Form 3593, 1/01; or
 
	  
 	  
 	  •
 	  Multistate Fixed/Adjustable Rate Note (1 -year Treasury Index – Rate Caps) Fannie Mae Form 3522, 1/01
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Rider:
 	  
 
	  
 	  
 	  •
 	  Multistate Initial Period Fixed/Adjustable Rate Rider (1-year Treasury Index – Rate Caps), Freddie Mac Form 3195, 1/01; or
 
	  
 	  
 	  •
 	  Multistate Fixed/Adjustable Rate Rider (1-year Treasury Index – Rate Caps) Fannie Mae Form 3182, 1/01
 
	  
 	  
 	  
 	  
 
	  
 	 (b)
 	  Convertible.
 
	  
 	  
 	  
 
	  
 	  
 	  3/1 and 5/1 Treasury ARMs that are Assumable Life of Loan (until Conversion Option exercised)
 
	  
 	  
 	  
 
	  
 	  
 	  Note:
 	  
 
	  
 	  
 	  •
 	  Multistate Convertible Adjustable Rate Note (1-Year Treasury Index – Rate Caps - Fixed Rate Conversion Option) Freddie Mac Form 3513, 1/01; or
 
	  
 	  
 	  •
 	  Multistate Adjustable Rate Note (1-Year Treasury Index – Rate Caps - Fixed Rate Conversion Option) Fannie Mae Form 3503, 1/01
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 Rider:
 	  
 
	  
 	  
 	  •
 	  Multistate Convertible Adjustable Rate Rider (1-Year Treasury Index – Rate Cap - Fixed Rate Conversion Option Freddie Mac Form 3130, 1/01; or
 
	  
 	  
 	  •
 	  Multistate Adjustable Rate Rider (1-Year Treasury Index – Rate Caps - Fixed Rate Conversion Option) Fannie Mae Form 3113, 1/01
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  5/1, 7/1 and 10/1 Treasury ARMs that are Assumable after Initial Period (until Conversion Option exercised)
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Note:
 	  
 
	  
 	  
 	  •
 	  Multistate Fixed/Adjustable Rate Note (1-year Treasury Index – Rate Caps – Fixed Rate Conversion Option) Fannie Mae Form 3523, 1/01
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 Rider:
 	  
 
	  
 	  
 	  •
 	  Multistate Fixed/Adjustable Rate Rider (1-year Treasury Index – Rate Caps – Fixed Rate Conversion Option) Fannie Mae Form 3183, 1/01
 
	  
 	  
 	  
 	  
 
	  5.
 	  Completion of Loan Documents and Delivery. With respect to the completion of the Notes and Riders and the delivery of the Treasury ARMs to Freddie Mac,
Seller
 
	  
 
	  Special Programs and Products
 
	  Treasury Index ARMs
 
	  MA02100134 –– Attachment 6
 
	  Page 3 –– 10/24/2002
 

	  
 	 represents and warrants that the values used for interest rate adjustments and caps and the conversion option are consistent with the Eligible Treasury ARMs
Exhibit.
 
	  
 	  
 
	  
 	  The amount that must be inserted as the addition to the Freddie Mac or Fannie Mae, as applicable, RNY to determine the fixed interest rate after conversion must not
be less than one-quarter of one percent or greater than three-eighths of one percent.
 
	  
 	  
 
	  6.
 	  Credit Terms. Except as provided below, the credit and underwriting terms in the Guide applicable to 3/1, 5/1, 7/1 and 10/1 ARMs apply to l-, year, 3/1, 5/1,
7/1 and 10/1 Treasury ARMs, respectively.
 
	  
 	  
 
	  
 	  In connection with originating 5/1 Treasury ARMs (5/2/5), the Borrower must be qualified as follows:
 
	  
 	  
 
	  
 	  (a)
 	  at the initial Gross Coupon Rate if either (i) the Mortgage term is 15 years or less, or (ii) the LTV ratio is less than or equal to 80 percent, and the initial
period discount is 1.5 percent or less; and
 
	  
 	  
 	  
 
	  
 	 (b)
 	  at the initial Gross Coupon Rate plus 2 percent in all other situations.
 
	  
 	  
 	  
 
	  7.
 	  Guarantor Deliveries. Treasury ARMs must be sold under the WAC ARM or WAC ACARM Guarantor Program following the requirements in Chapter 11 and 31,
respectively, of the Guide.
 
	  
 	  
 
	  
 	  Treasury ARMs, other than Convertible Treasury ARMs, will have the following prefixes:
 
	  
 	  
 
	  
 	  
 	  3/1, 5/1, 7/1 and 10/1 Treasury ARMs: 78 
 
	  
 	  
 	  
 	  
 
	  
 	  Convertible Treasury ARMs will have the following prefixes:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 3/1, 5/1, 7/1 and 10/1 Convertible Treasury ARMs: 78
 
	  
 	  
 	  
 	  
 
	  
 	  At the time Seller calls in a Guarantor Program Conversion for Treasury ARMs, Seller must specify one of the offer products codes designated for the delivery program
stated on the OFFER PRODUCT/PROGRAM CODE EXHIBIT to the Junior Guarantor Program Attachment.
 
	  
 	  
 
	  8.
 	  Investor Disclosure. For any Convertible Treasury ARMs sold to Freddie Mac, Seller must comply with the following provisions relating to Additional
Supplements:
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  Information to be Furnished for Disclosure. Seller must prepare and distribute an Additional Supplement as described in Section 11.20 of the Guide for any PC
Pool with Convertible Treasury ARMs. The Additional Supplement must be in the form attached as an Exhibit to this Attachment. The form is not a final document; it must be reviewed carefully and completed by the Seller.
 
	  
 	  
 	  
 
	 Special Programs and Products
 
	  Treasury Index ARMs
 
	  MA02100134 –– Attachment 6
 
	  Page 4 –– 10/24/2002
 

	  
 	  (b)
 	  Disclosure Delivery. No fewer than two Business Days before the Settlement Date, Seller must deliver the completed Additional Supplement, together with the name and
telephone number of the person responsible for the Additional Supplement, to Freddie Mac, Attention: Mortgage Purchase at fax: (703) 918-5846.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Information Dissemination. Seller consents to Freddie Mac’s dissemination of information Freddie Mac deems appropriate concerning each PC pool containing Convertible
Treasury ARMs through any information vendors that it may use for disclosure with respect to PCs.
 
	  
 	  
 	  
 
	 9.
 	  Processing upon Conversion. Seller must repurchase and resell to Freddie Mac all Convertible Treasury ARMs delivered under this Attachment that are converted
to fixed-rate Mortgages (“Converted Mortgages”), upon the following terms and conditions:
 
	  
 	  
 	  
 
	  
 	  (a)
 	  Within five business days after the Conversion Date, Seller must transmit to Freddie Mac’s Loan Administration Department via MIDANET (Registered) a Loan-Level Report in
accordance with Section 79.5 of the Guide for each such Converted Mortgage.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Seller, as Servicer, must repurchase all Converted Mortgages for an amount calculated pursuant to Section 72.3 of the Guide, and must remit the proceeds of such repurchase to
Freddie Mac via the telephonic cash remittance system by 11:00 a.m., Seller’s local time, on the fifth business day after the Conversion Date.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Seller must resell to Freddie Mac each Converted Mortgage at the then-current price offered by Freddie Mac under Freddie Mac’s then-existing Cash or Guarantor Programs.
Seller must deliver Converted Mortgages to Freddie Mac within sixty days of the Conversion Date. Seller must identify each Converted Mortgage by inserting “036” (indicating fixed rate resale of converted ARM) in one of the six 3-digit
blocks of the special characteristics code field of the Mortgage Submission Schedule - Form 11.
 
	  
 	  
 	  
 
	  
 	 (d)
 	  At Freddie Mac’s request, Seller must use a modified Mortgage Submission Schedule - Form 11, with the delivery of Converted Mortgages. Seller may also be required to
provide to Freddie Mac such reports as may be required by Freddie Mac to evidence that the Seller has delivered all Converted Mortgages to Freddie Mac.
 
	  
 	  
 	  
 
	  
 	  (e)
 	  Subject to having statutory authority to do so, Freddie Mac will repurchase all Converted Mortgages delivered by Seller under the terms of this section. Notwithstanding the
requirements of Section 32.2 of the Guide, Converted Mortgages are eligible for repurchase without additional underwriting if the Borrower was qualified at the time of origination of the Convertible Treasury ARM in compliance with the terms and
conditions of the Guide, as modified by this Attachment.
 
	  
 	  
 	  
 
	  Special Programs and Products
 
	  Treasury Index ARMs
 
	  MA02100134 –– Attachment 6
 
	  Page 5 –– 10/24/2002
 

  EXHIBIT
 TREASURY-INDEXED ARMS
 Additional Supplement

	  ADDITIONAL SUPPLEMENT dated [________], [________]
 	  
 	  
 
	  PC Pool Number: [          ]
 	  Seller:
 	  Crescent Bank & Trust Company
 
	  
 	  
 	  dba Crescent Mortgage
 
	  
 	  
 	  115 Perimeter Center Place, Suite 285
 
	  
 	  
 	  Atlanta, GA 30346
 
	  
 	  
 	  
 
	  CUSIP Number: [           ]
 
	  PC Type: {Select as appropriate:
 
	  [3/1][5/1][7/1][10/1] ARM
 
	  Adjustment Cap:  {Select one as appropriate}
 
	 [200 basis points]
 
	  [200 basis points, with a 500 basis point adjustment on the first adjustment]
 
	  [200 basis points, with a 600 basis point adjustment on the first adjustment]
 
	  Mortgage Type: Convertible [Whole Loan] Home
 
	  Index:  One-year Treasury (weekly) Index
 
	  Original Unpaid Principal Balance:  $[          ]
 
	  Offering Circular:  Offering Circular for Mortgage Participation Certificates (Guaranteed) February 1, 2001
 

  This Additional Supplement describes certain characteristics of the PCs and/or the Mortgages comprising the PC Pool that are not contained in or that differ from the information and characteristics set forth in the PC Offering
Circular or the Form 15 PC Offering Circular supplement. All information is based on the estimated composition of the PC Pool as of the “as of date” appearing in the Form 15 PC Offering Circular Supplement. Information and representations
in this Additional Supplement about the Seller and the Mortgages are the information and representations only of the Seller; Freddie Mac makes no representations concerning these matters or the accuracy or veracity of the information provided.
Offerees should purchase PCs only after reading this Additional Supplement, the Form 15 PC Offering Circular supplement and the PC Offering Circular.
  DESCRIPTION OF THE
MORTGAGES
  General
  The Conversion Period applicable to each Convertible Mortgage contained in this PC Pool is [INSERT APPROPRIATE
INFORMATION, FOR EXAMPLE:  anytime from the 12th through the 60th principal and interest payment dates]. The table below contains selected information about the Conversion Periods of the Convertible Mortgages contained in
this PC Pool.

	 Earliest & Latest
 Possible
 Conversion Dates	  
 	  Unpaid Principal
 Balance (“UPB”)
 of the Mortgages
 	   
 	  Percent of
 UPB of
 PC Pool
 	   
 	  Number and
 Percent of
 the Mortgages
 	   
 
	 
 	 	 
 	  
 	 
 	  
 	 
 	  
 

  [INSERT APPROPRIATE INFORMATION]

	  Special Programs and Products
 
	  Treasury Index ARMs - Exhibit
 
	  MA02100134 –– Attachment 6
 
	  Page 1 –– 10/24/2002
 

  EXHIBIT 
 TREASURY-INDEXED ARMS
 Eligible Treasury ARMs

	 Feature 	   
 	  3/1 Treasury 
 ARM (2/2/6)
 	   
 	  5/1 Treasury 
 ARM (2/2/5)
 	   
 	  5/1 Treasury 
 ARM (2/2/6)
 	   
 	  5/1 Treasury 
 ARM (5/2/5)
 	   
 	  7/1 Treasury 
 ARM (5/2/5)
 	   
 	  10/1 Treasury 
 ARM (5/2/5)
 
	 
 	 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 
	 Term	 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 years
 	  
 	  Up to 30 year
 
	 Initial Period	 	  3 years
 	  
 	  5 years
 	  
 	  5 years
 	  
 	  5 years
 	  
 	  7 years
 	  
 	  10 years
 
	 Subsequent Adjustment Period	 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 	  
 	  1 year
 
	 Term of adjustment after Initial Period	 	  Life of loan*
 	  
 	  Life of loan*
 	  
 	  Life of loan*
 	  
 	  Life of loan*
 	  
 	  Life of loan*
 	  
 	  Life of loan*
 
	 First Change Date Cap	 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  5 percent
 	  
 	  5 percent
 	  
 	  5 percent
 
	 Periodic Cap	 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 	  
 	  2 percent
 
	 Life of Loan Cap	 	  6 percent
 	  
 	  5 percent
 	  
 	  6 percent
 	  
 	  5 percent
 	  
 	  5 percent
 	  
 	  5 percent
 
	 When assumable	 	  Life of loan*
 	  
 	  Either Life of Loan* or After Initial Period*
 	  
 	  Either Life of Loan* or After Initial Period*
 	  
 	  After Initial Period*
 	  
 	  After Initial Period*
 	  
 	  After Initial Period*
 
	 Prepayment protection permitted	 	  No
 	  
 	  No
 	  
 	  No
 	  
 	  No
 	  
 	  No
 	  
 	  No
 
	 Convertible option permitted	 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 	  
 	  Yes
 
	 Remittance Cycle-Guarantor	 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional: First Tuesday
 	  
 	  Standard: ARC Optional First Tuesday
 
	 Seasoning	 	  Note date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 	  
 	  Note Date no earlier than 12 months prior to Delivery Date
 
	 Minimum Servicing Spread – Guarantor	 	  25 basis points unless Variable Servicing
 	  
 	  25 basis points unless Variable Servicing
 	  
 	  25 basis points unless Variable Servicing
 	  
 	  25 basis points unless Variable Servicing
 	  
 	  25 basis points unless Variable Servicing
 	  
 	  25 basis point unless Variable Servicing
 
	 Maximum Servicing Spread - Guarantor	 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 	  
 	  200 basis points
 
	 
	 *  For Convertible Treasury ARMs, interest adjustment and assumability terminate when the Conversion Option is exercised
	  
 
	  Special Programs and Products
 
	  Treasury Index ARMs – Exhibit - Eligible Treasury ARMs
 
	  MA02100134 –– Attachment 6
 
	  Page 1 –– 10/24/2002
 

   ATTACHMENT 7 
 A Minus Manual Eligibility Matrix Mortgages
 This Attachment sets forth minimum
standards to determine whether a Mortgage is eligible for sale to Freddie Mac as an A Minus Manual Eligibility Matrix Mortgage.

	  1.
 	  General Requirements.
 
	  
 	  
 
	  
 	  (a)
 	  
 	  Definition. Each Mortgage that complies with the terms of this Attachment shall be eligible for sale to Freddie Mac as an A Minus Manual Eligibility Matrix
Mortgage (an “A Minus Matrix Mortgage”).
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  
 	  Eligible Mortgages. A Minus Matrix Mortgages must be:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (i)
 	  15-, 20- or 30-year conventional fixed-rate Mortgages, ARMs, or 7-year Balloon/Reset Mortgages; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (ii)
 	  secured by a 1-2 unit Primary Residence, a 1-2 unit Investment Property, or a 1 unit second home.
 
	  
 	  
 	  
 	  
 
	  
 	  (c)
 	  
 	  Ineligible Mortgages. The following Mortgages are ineligible for sale as A Minus Matrix Mortgages:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  •
 	  streamlined refinance Mortgages;
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  •
 	  Affordable Gold 3/2 Mortgages;
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 •
 	  Affordable Gold 97 Mortgages;
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  •
 	  Affordable Gold Alt 97 Mortgages;
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  •
 	  Alt 97 Mortgages;
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  •
 	  Prepayment Protection Mortgages
 
	  
 	  
 	  
 	  
 
	  
 	 (d)
 	  
 	  Delivery Programs. A Minus Matrix Mortgages may be sold under the Guarantor Program, the Cash Program, or the MultiLender Swap Program.
 
	  
 	  
 	  
 	  
 
	  
 	  (e)
 	  
 	  Special Underwriting Provisions. Special underwriting provisions applicable to other mortgage product sold under Seller’s Master Agreement shall not
apply to A Minus Matrix Mortgages.
 
	  
 	  
 	  
 	  
 
	  Special Programs and Products
 
	  A Minus Manual Eligibility Matrix Mortgages
 
	  MA02100134 –– Attachment 7
 
	  Page 1 –– 10/24/2002
 

	 2.
 	  Indicator Score/TLTV Matrix.
 
	  
 	  
 
	  
 	  Each A Minus Matrix Mortgage must fall within one of the Indicator Score/LTV matrices set forth below:
 

 

	  PURCHASE AND NO-CASH-OUT REFINANCE MORTGAGES
 
	  # Units
 	  
 	  Occupancy
 	   
 	  Transaction
 	   
 	  TLTV
 	   
 	  Fixed rate & 
 7-year Balloon/resets 
 Minimum Indicator 
 Score
 	   
 	  All ARMs 
 Minimum Indicator 
 Score
 	  
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 
	 One
 	  
 	  Primary 
 	  
 	  Purchase 
 	  
 	  < 80%
 	  
 	  > 570
 	  
 	  > 600
 	  
 
	  
 	  
 	  2nd Home
 	  
 	  No Cash-out
 	  
 	  > 80 to < 95%
 	  
 	  > 580
 	  
 	  > 620
 	  
 
	  One
 	  
 	  Investment
 	  
 	  Purchase 
 	  
 	  < 80%
 	  
 	  > 630
 	  
 	  > 650
 	  
 
	  
 	  
 	  
 	  
 	 No Cash-out
 	  
 	  > 80 to < 90%
 	  
 	  > 640
 	  
 	  > 680
 	  
 
	  Two
 	  
 	  Primary
 	  
 	  Purchase 
 	  
 	  < 80%
 	  
 	  > 630
 	  
 	  > 660
 	  
 
	  
 	  
 	  
 	  
 	  No Cash-out
 	  
 	  > 80 to < 95%
 	  
 	  > 690
 	  
 	  > 730
 	  
 
	 Two
 	  
 	  Investment
 	  
 	  Purchase 
 	  
 	  < 80%
 	  
 	  > 660
 	  
 	  > 700
 	  
 
	  
 	  
 	  
 	  
 	  No Cash-out
 	  
 	  > 80 to < 90%
 	  
 	  > 710
 	  
 	  > 760
 	  
 

 

	  CASH-OUT REFINANCE MORTGAGES
 
	  # Units
 	   
 	  Occupancy
 	   
 	  Transaction
 	   
 	  TLTV
 	   
 	  Fixed rate & 
 7-year Balloon/resets 
 Minimum Indicator 
 Score
 	   
 	  All ARMs 
 Minimum Indicator 
 Score
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 
	 One
 	  
 	  Primary 
 	  
 	  Cash-out
 	  
 	  < 80%
 	  
 	  > 610
 	  
 	  > 630
 
	  
 	  
 	  2nd Home
 	  
 	  
 	  
 	  > 80 to < 90%
 	  
 	  > 620
 	  
 	  > 650
 
	 One
 	  
 	  Investment
 	  
 	  Cash-out
 	  
 	  < 80%
 	  
 	  > 660
 	  
 	  > 670
 
	  
 	  
 	  
 	  
 	  
 	  
 	  > 80 to < 85%
 	  
 	  > 660
 	  
 	  > 680
 
	  Two
 	  
 	  Primary
 	  
 	  Cash-out
 	  
 	  < 80%
 	  
 	  > 640
 	  
 	  > 690
 
	  
 	  
 	  
 	  
 	  
 	  
 	 > 80 to < 90%
 	  
 	  > 700
 	  
 	  > 750
 
	  Two
 	  
 	  Investment
 	  
 	  Cash-out
 	  
 	  < 80%
 	  
 	  > 700
 	  
 	  > 730
 
	  
 	  
 	  
 	  
 	  
 	  
 	  > 80 to < 85%
 	  
 	  > 710
 	  
 	  > 750
 

 

	  3.
 	  Delivery Fees. A postsettlement delivery fee (delivery fee) will be assessed and billed to Seller in conjunction with the sale of certain A Minus Matrix Mortgages.
Standard delivery fee rates are indicated on Exhibit 19 and/or on MIDANET for the PC or market information vendors. Delivery fees are paid in accordance with the delivery fee provisions outlined in Section 17.2 of the Guide.
 
	  
 	  
 
	  
 	  For A Minus Matrix Mortgages, the Indicator Score is used for pricing purposes. If no Indicator Score is delivered to Freddie Mac, the Mortgage will be priced as if the
Indicator Score was “not reported.”
 
	  
 	  
 
	  Special Programs and Products
 
	  A Minus Manual Eligibility Matrix Mortgages
 
	  MA02100134 –– Attachment 7
 
	  Page 2 –– 10/24/2002
 

	  4.
 	  Sale of A Minus Matrix Mortgages. If Seller elects to sell A Minus Matrix Mortgages to Freddie Mac:
 
	  
 	  
 
	  
 	 (a)
 	  Seller is not required to determine that:
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  the Borrower shows the willingness to repay the Mortgage; or
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  an acceptable credit reputation is evidenced (Seller must retain all credit reports in the Mortgage file for each Borrower. No further analysis of credit documentation is
necessary); and
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  As long as the information provided by Seller to Freddie Mac relating to the Mortgage is true, complete and accurate, Freddie Mac shall not require repurchase of
such Mortgage or indemnification under the Guide due to the fact that:
 
	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  the Borrower’s Monthly Housing Expense-to-Income Ratio and Debt Payment-to-Income Ratio exceed the guidelines set forth in Sections 37.15 and 37.16 of the Guide (subject to
Section 9(b) below); or
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  the Borrower does not show the willingness to repay the Mortgage or due to the fact that an acceptable credit reputation was not evidenced.
 
	  
 	  
 	  
 	  
 
	  5.
 	  Bankruptcy/Foreclosure. A Mortgage does not qualify as an A Minus Matrix Mortgage if any Borrower experienced one of the following credit events:

	  
 	  
 
	  
 	  (a)
 	  within 2 years of the Mortgage application date, the Borrower and/or the Borrower’s assets were subject to the jurisdiction of a bankruptcy court, or the
Borrower was discharged from bankruptcy (a “Bankruptcy Event”); or
 
	  
 	  
 	  
 
	  
 	 (b)
 	  within 3 years of the Mortgage application date, the Borrower owned any property (and signed a promissory note secured by such property) against which foreclosure
proceedings were initiated or which was conveyed by a deed in lieu of foreclosure (a “Foreclosure Event”).
 
	  
 	  
 	  
 
	  6.
 	  Balloon/reset Mortgages. 7-year Balloon/Reset A Minus Matrix Mortgages that are subject to secondary financing as of the Delivery Date are eligible for sale
under the terms of Section 33.2 of the Guide.
 
	  
 	  
 
	  Special Programs and Products
 
	  A Minus Manual Eligibility Matrix Mortgages
 
	  MA02100134 –– Attachment 7
 
	  Page 3 –– 10/24/2002
 

	  7.
 	  Mortgage Verifications and Delinquencies.
 
	  
 	  
 
	  
 	 (a)
 	  For each A Minus Matrix Mortgage, Seller must ensure that both current and prior mortgage payment histories for all mortgages during the 12 month period prior to the
date of each Borrower’s loan application (the “Prior 12 Month Period”) are verified on the credit report(s) that the Seller selected to use. For each Borrower on the loan application, Seller must directly verify and document all
mortgage payment histories not reflected on the credit reports in accordance with the requirements of Section 37.11(b) of the Guide.
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  Seller represents that during the Prior 12 Month Period, there were no more than two 30 day mortgage delinquencies and no 60 day or more delinquencies from any
combination of mortgages as verified directly or on one or more of the credit reports.
 
	  
 	  
 	  
 
	  8.
 	  Selecting an Indicator Score for A Minus Matrix Mortgages.
 
	  
 	  
 
	  
 	  (a)
 	  Except as provided herein, Seller shall select an Indicator Score for each A Minus Matrix Mortgage in accordance with the provisions of Section 37.5 of the
Guide.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  On the Uniform Underwriting and Transmittal Summary Form (Freddie Mac Form 1077), or on another document in the Mortgage file, Seller shall:
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  note that the loan qualifies as an A Minus Matrix Mortgage, and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  identify the FICO score selection method and the Indicator Score.
 
	  
 	  
 	  
 	  
 
	  
 	  (c)
 	  In connection with the delivery of each such A Minus Matrix Mortgage, Seller shall enter on the applicable Freddie Mac Form 11 (Mortgage Submission Schedule) or Form
13SF (Mortgage Submission Voucher):
 
	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  the code “F” (for FICO Bureau Scores) in the field titled “CST”; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  the Indicator Score in the field titled “CSV”.
 
	  
 	  
 	  
 	  
 
	  9.
 	  Monthly Ratios. For each A Minus Matrix Mortgage:
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  Seller is not required to determine that the Borrower’s Monthly Housing Expense-to-Income Ratio meets the ratio guidelines set forth in Section 37.15 of the
Guide; and
 
	  
 	  
 	  
 
	  
 	 (b)
 	  the Borrower’s monthly debt payment-to-income ratio may exceed the ratio guidelines set forth in Section 37.16 of the Guide, provided such ratio does not exceed
50 percent.
 
	  
 	  
 	  
 
	  Special Programs and Products
 
	  A Minus Manual Eligibility Matrix Mortgages
 
	  MA02100134 –– Attachment 7
 
	  Page 4- –– 10/24/2002
 

	  10.
 	  Documentation. Seller shall document A Minus Matrix Mortgages in accordance with Standard Documentation requirements in Section 37.23 of the Guide.

	  
 	  
 
	  11.
 	  Special Delivery and Pooling Requirements.
 
	  
 	  
 
	  
 	  (a)
 	  In connection with the delivery of each A Minus Matrix Mortgage, Seller must enter “100” in the “Offering code” field on the Mortgage Submission Schedule
(Freddie Mac Form 11), or on the Mortgage Submission Voucher (Freddie Mac Form 13SF), as applicable.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  Seller agrees that its failure to comply with the preceding delivery instructions may cause Freddie Mac to characterize an otherwise eligible A Minus Matrix Mortgage as a
non-eligible A Minus Matrix Mortgage.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  There are no special pooling requirements for A Minus Matrix Mortgages, except as may be required by any special underwriting provisions applicable to such Mortgages.

	  
 	  
 	  
 
	  12.
 	  Servicing Requirements. A Minus Matrix Mortgages shall be serviced in accordance with Section 51.11(c) of the Guide.
 
	  
 	  
 
	  13.
 	  Amendment, Revision or Termination of A Minus Matrix Mortgage Sales. Freddie Mac reserves the right, upon 90 days prior written notice, to amend, supplement,
revise or terminate, in whole or in part, Seller’s ability to sell A Minus Matrix Mortgages to Freddie Mac.
 
	  
 	  
 
	 14.
 	  Termination. The termination date of this Attachment is December 31, 2002. After that date, Seller may not sell any additional A Minus Matrix Mortgages to
Freddie Mac under the terms of this Attachment.
 
	  
 	  
 
	  Special Programs and Products
 
	  A Minus Manual Eligibility Matrix Mortgages
 
	  MA02100134 –– Attachment 7
 
	  Page 5 –– 10/24/2002
 

   ATTACHMENT 8
 ENTERPRISE CASH SYSTEM AGREEMENT 
 FOR THE PURCHASE AND SALE OF MORTGAGES
  This
agreement dated October 24, 2002 by and between Crescent Bank & Trust Company dba Crescent Mortgage, S/S# 106856 (“Seller”) and the Federal Home Loan Mortgage Corporation, (“Freddie Mac”) amends and supplements Seller’s
Purchase Documents (the “Agreement”).
  RECITALS

	  (A)
 	  Freddie Mac has developed a system that will permit Seller to sell Mortgages to Freddie Mac under Freddie Mac’s Cash Program using the Internet to connect to transactional
applications provided by Freddie Mac (the “Enterprise Cash System”); and
 
	  
 	  
 
	 (B)
 	  Seller desires to sell Mortgages to Freddie Mac using the Enterprise Cash System and Freddie Mac is willing to purchase Mortgages offered for sale by Seller using the Enterprise
Cash System in accordance with the provisions of the Purchase Documents as amended by this Agreement.
 

  NOW, THEREFORE, in consideration of the premises, mutual promises and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, Seller and Freddie Mac agree as follows:

	  1.
 	  Recitals. The Recitals set forth above are true and correct.
 
	  
 	  
 
	  2.
 	  Scope of the Amendment. This Agreement amends and supplements the Seller’s: (a) Master Agreement, if applicable; (b) the Freddie Mac Single-Family Seller/Servicer
Guide (the “Guide”); and (c) all other Purchase Documents.
 
	  
 	  
 
	  3.
 	  Capitalized Terms. Capitalized terms used herein that are not otherwise defined shall have the meaning ascribed to such terms in the Guide.
 
	  
 	  
 
	  4.
 	  Incorporation of the Enterprise Cash System. The Enterprise Cash System and supplemental materials including, but not limited to, all of its visual content displayed on
screens and pages, system processes, system rules, terms and conditions, privacy policy, user guides, aids, glossary, instructions, stored data and all other related written or electronic records used in connection with the Enterprise Cash System,
is hereby incorporated into and made a part of the Purchase Documents. In addition, any revisions, changes, and/or updates made to the Enterprise Cash System by Freddie Mac, from time to time, shall be automatically incorporated into and made a part
of the Purchase Documents whenever such revisions, changes, and/or updates are published by Freddie Mac and made available to Seller in writing or by electronic means.
 
	  
 	  
 
	 5.
 	  Delivery Date. For purposes of using the Enterprise Cash System only, the “Delivery Date” shall mean the date when all of the following have been completed: (i)
the delivery of all loan data and other information required by the Enterprise Cash System to
 
	  
 	  
 
	  Special Programs and Products
 
	  Enterprise Cash System Agreement
 
	  MA02100134 –– Attachment 8
 
	  Page 1 –– 10/24/2002
 

	  
 	  Freddie Mac; (ii) the delivery of the Notes and all other required documentation to Freddie Mac and (iii) Note certification.
 
	  
 	  
 
	  6.
 	  Consent to Conduct Electronic Transactions. Seller hereby consents to conduct electronic transactions with Freddie Mac using the Enterprise Cash System including, but not
limited to, using Records, Electronic Records and Electronic Signatures in accordance with Section 1.3 of the Guide and agrees that Seller shall be bound by the terms and conditions of such electronic transactions. When using the Enterprise Cash
System, Seller will be prompted to make on-screen selections by “clicking on” certain designated items, icons or buttons to signify Seller’s selection and/or agreement with various terms and conditions presented within the Enterprise
Cash System. Seller’s Electronic Signature, as defined in Section 1.3 of the Guide, shall include, but not necessarily be limited to, the process or action of “clicking on” such designated items, icons or buttons.
 
	  
 	  
 
	 7.
 	  License Agreement. To the extent Freddie Mac provides any software to Seller to facilitate the purchase of loans under the Cash Program using the Enterprise Cash System
and to the extent any such software or any software-related documentation is not specifically covered by the terms of a separate agreement between Freddie Mac and Seller, Seller agrees that the provisions of Section 2.17 of the Guide shall
apply.
 
	  
 	  
 
	  8.
 	  Seller’s System Security Obligation. Freddie Mac will provide Seller with or require Seller to create user identification codes, passwords, personal identification
numbers and/or access codes, as applicable, to permit Seller to have secure access to the Enterprise Cash System. In accordance with Section 1.3 of the Guide, Seller shall be fully responsible for adopting security measures that will protect and
safeguard: (i) any and all user identification codes, passwords, personal identification numbers, and/or access codes from loss, theft or unauthorized disclosure or use and (ii) its computer hardware and software from infiltration and
“infection” by harmful computer information, commands, codes, viruses or programs that may damage Freddie Mac’s or any host’s computer information processing Systems including, but not limited to, the Enterprise Cash System,
Records, Electronic Records, hardware and/or software.
 
	  
 	  
 
	  9.
 	  Access to Copies of Electronic Records. Seller acknowledges and agrees that its ongoing access to copies of Electronic Records related to any electronic transactions
conducted by Seller using the Enterprise Cash System shall be paper copies that Seller prints out using Seller’s computer print capabilities and its printer. Accordingly, Seller assumes responsibility for printing and retaining paper copies of
any such Electronic Records for Seller’s future reference. If Seller is unable to print any of the Electronic Records, Seller may contact Freddie Mac for assistance in obtaining copies of the Electronic Records that Freddie Mac may have
stored.
 
	  
 	  
 
	 10.
 	  Eligible Mortgage Programs and Products. Seller may only sell whole loans under the Cash Program when using the Enterprise Cash System. The only Mortgage products
eligible for sale using the Enterprise Cash System are as follows:
 
	  
 	  
 
	  Special Programs and Products
 
	  Enterprise Cash System Agreement
 
	  MA02100134 –– Attachment 8
 
	  Page 2 –– 10/24/2002
 

	  •
 	  15-, 20- and 30-yr Conventional Fixed-rate Mortgages
 
	  •
 	  Alt 97 15-, 20- and 30-yr Mortgages
 
	  •
 	  Guaranteed Rural Housing
 
	  •
 	  5-yr Balloon/Reset
 
	 •
 	  7-yr Balloon/Reset
 
	  •
 	  15-, 20- and 30-yr Affordable Gold 3/2 Mortgages
 
	  •
 	  15-, 20- and 30-yr Affordable Gold 5 Mortgages
 
	  •
 	  15-, 20- and 30-yr Affordable Gold 97 Mortgages
 
	  •
 	  15-, 20- and 30-yr Affordable Gold Alt 97 Mortgages
 
	  •
 	  Affordable Merit Rate
 
	  
 	  
 
	  
 	  If Freddie Mac makes other Mortgage products available for purchase through the Enterprise Cash System, Freddie Mac will expressly inform Seller in writing or
electronically.
 
	  
 	  
 
	  11.
 	  Mandatory Contracts. If Seller uses the Enterprise Cash System to sell Mortgages to Freddie Mac, Seller must enter into Mandatory Contracts. Under a Mandatory
Contract, the Seller: (i) must sell Mortgages to Freddie Mac that meet all of the contract requirements and have an aggregate unpaid principal balance equal to the contract amount (subject to the purchase tolerance for cash contracts in the Guide);
(ii) must have completed all requirements for the sale of the Mortgages by the expiration date of the contract; and (iii) will be assessed a pair-off fee at the contract expiration if the contract amount has not been fulfilled by Seller.

	  
 	  
 
	 12.
 	  Purchase Data and Certification Forms. Seller will not be required to complete and deliver a paper Mortgage Submission Schedule, Form 11, or Contract Delivery
Summary, Form 381, but must accurately provide all of the loan data and other information required by the Enterprise Cash System and other Purchase Documents. In addition, the Seller must print and complete either the Custodial Certification
Schedule, Form 1034E, or the “Note Delivery Cover Sheet” and deliver one form or the other along with the Notes to Freddie Mac as part of the delivery and certification process.
 
	  
 	  
 
	  13.
 	  Wire Transfer Authorizations/Warehouse Lender Release.
 
	  
 	  
 
	  
 	  (a)
 	  For Mortgages that are not pledged to a Warehouse lender, Seller is required to complete a new Wire Transfer Authorization, Form 483, unless Seller has previously
completed, executed and delivered a duly authorized Form 483 to Freddie Mac. If Seller desires to have multiple wire transfer instructions, Seller must complete and execute a new Form 483 for each set of wire transfer instructions and send the
original signed paper Form 483 to Freddie Mac as required by the Guide.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  For Mortgages that are pledged to a Warehouse Lender, Seller shall:
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  Complete and execute a Modified Blanket Wire Transfer Authorization for Warehouse Delivery, Modified Form 987E, attached hereto as Exhibit
 
	  
 	  
 	  
 	  
 
	  Special Programs and Products
 
	  Enterprise Cash System Agreement
 
	  MA02100134- –– Attachment 8
 
	  Page 3 –– 10/24/2002
 

	  
 	  
 	  
 	  A. The Modified Form 987E shall be a one-time wire transfer authorization that Freddie Mac shall use for all contracts in which Pledged Mortgages are offered for sale using the
Enterprise Cash System, in lieu of requiring a separate Modified Form 987E for each contract. Seller shall execute a Modified Form 987E for each Warehouse Lender that Seller uses and shall provide Freddie Mac with a new Modified Form 987E whenever
Seller is required or desires to make changes to the wire transfer instructions. Seller must execute and send the original paper Modified Form 987E to Freddie Mac in accordance with the mailing instructions contained in the Modified Form
987E.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  Print, complete and deliver to the Warehouse lender a Warehouse Lender Release of Security Interest, Form 996E, made available within the Enterprise Cash System, which has been
modified to expressly permit facsimile transmission of the Form 996E. The Warehouse Lender will be required to complete and execute the Form 996E and send it to Freddie Mac via facsimile transmission at: (703) 880-0534.
 
	  
 	  
 	  
 	  
 
	  
 	  (c)
 	  The Seller represents, warrants and covenants that Seller shall provide Freddie Mac with a Form 483 and Modified Form 987E signed by a duly authorized representative
of Seller. Seller agrees that Seller is solely responsible for notifying Freddie Mac if any changes to the wire transfer instructions are necessary or desired in accordance with the requirements in the Guide. Seller, also represents, warrants and
covenants that the Warehouse Lender shall deliver a Form 996E to Freddie Mac duly executed by an authorized representative of the Warehouse Lender. Seller agrees to indemnify, defend and hold Freddie Mac harmless from and against any loss, costs,
claims, actions, damages, liabilities, judgments, legal fees, counterclaims and/or defenses to which Freddie Mac may become subject, which arise out of or occur in connection with the: (i) Seller’s failure to provide accurate and authorized
wire transfer authorizations; (ii) Seller’s failure to notify Freddie Mac of any necessary or desired changes to the wire transfer authorizations in accordance with the Guide or (iii) the Seller’s or Warehouse Lender’s failure to
deliver to Freddie Mac a valid and enforceable Form 996E duly executed by an authorized representative of the Warehouse Lender.
 
	  
 	  
 	  
 
	 14.
 	  Special Note Delivery and Custodial Requirements.
 
	  
 	  
 
	  
 	  (a)
 	  The Notes shall be delivered to Freddie Mac’s Document Custodial Services Department (DCS). A Custodian may not be used unless Freddie Mac, in its sole
discretion, expressly approves or requires the use of a Custodian.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Seller will not be required to add Freddie Mac loan numbers to the Notes prior to loan certification; provided, however, the Seller shall be fully responsible for
assuring that all of the following requirements are met:
 
	  
 	  
 	  
 
	  Special Programs and Products
 
	  Enterprise Cash System Agreement
 
	  MA02100134 –– Attachment 8
 
	 Page 4 –– 10/24/2002
 

	  
 	  
 	  (i)
 	  prior to certification, Seller shall identify and track the Notes and other loan documents, using Seller’s computerized servicing system, as Mortgages to be sold to Freddie
Mac;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  immediately after Funding/Settlement, Seller shall insert the Freddie Mac loan numbers assigned to the loans by Freddie Mac into Seller’s computerized servicing system so
that Seller may identify, track and properly service the loans for Freddie Mac; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  notwithstanding (b) above, Seller agrees that Seller shall, at the Seller’s expense, add the loan numbers to the Notes if required by Freddie Mac.
 
	  
 	  
 	  
 	  
 
	 	 Seller shall be fully responsible, on an ongoing basis, for the proper delivery, certification, identification and tracking of all Notes sold to Freddie Mac.
	  
 	  
 
	 15.	 System Requirements. The Seller acknowledges and agrees that Freddie Mac has provided Seller with written or electronic information that describes the minimum
hardware, software, browser and other Internet connectivity requirements that Seller must comply with in order to conduct electronic transactions with Freddie Mac using the Enterprise Cash System.
	 	 
	 16.	 Special Representations and Warranties. Seller represents, warrants, covenants and agrees that it will fully comply with all of the terms, conditions and
requirements of this Agreement, the Enterprise Cash System, the Guide and all other Purchase Documents.
	 	 
	 17.	 Modifications and Amendments. Notwithstanding Section 1.2 of the Guide or any provisions of the other Purchase Documents to the contrary, the provisions of this
Agreement may be supplemented and amended by either an amendment signed by both Seller and Freddie Mac or by an addendum signed only by Freddie Mac that is provided to Seller. Any such amendment or addendum shall be incorporated into and made a part
of this Agreement. If on or after the date of the addendum the Seller: (a) uses the Enterprise Cash System; (b) uses any of the rights, privileges or benefits in the addendum; (c) performs any of the duties in the addendum; or (d) undertakes any of
the obligations in the addendum, Seller, by virtue of having taken one or more of the actions in (a), (b), (c) and (d) above, shall be deemed to have accepted and agreed with all of the terms and conditions in the addendum. In addition, at such time
that Freddie Mac incorporates the terms and conditions of usage of the Enterprise Cash System into the Guide, including, without limitation, any new improvements, content, features or functionality (e.g., additional products, programs, executions,
etc.) that may be added to the system, the provisions in the Guide shall supersede and prevail over the provisions set forth in this Agreement.
	  
 	  
 	  
 	  
 
	 18.
 	 Termination. Seller agrees that either party may terminate this Agreement by giving the other party 30 days written notice. Notwithstanding any such termination
by either Seller or Freddie Mac, the representations, warranties, covenants and agreements made herein
	  
 	  
 
	 Special Programs and Products
	  Enterprise Cash System Agreement
 
	  MA02100134 –– Attachment 8
 
	  Page 5 –– 10/24/2002
 

	  
 	  shall survive any such termination. If Seller has a Master Agreement, this Agreement will expire on the Date the Master Agreement expires.
 
	  
 	  
 
	  19.
 	  Effect of Other Provisions of the Purchase Documents. The Seller’s Purchase Documents as amended by this Agreement shall govern the sale of Mortgages to Freddie Mac
using the Enterprise Cash System. In addition, any waivers of or modifications to any of Freddie Mac’s delivery, certification, settlement or funding requirements set forth in the Guide that may be contained in Seller’s Master Agreement or
other Purchase Documents, as applicable, may not be used in connection with Mortgages sold using the Enterprise Cash System, unless such waivers or modified requirements are specifically identified and expressly permitted in an addendum to this
Agreement provided to Seller by Freddie Mac.
 
	  
 	  
 
	 20.
 	  Confidentiality. Seller agrees that Seller shall keep all information related to Project Enterprise, this Agreement or the Enterprise Cash System strictly confidential.
Seller shall not make any media release or public announcements, relating to Project Enterprise, this Agreement or the Enterprise Cash System. This Agreement and the Enterprise Cash System shall be subject to any confidentiality agreement previously
executed by the parties that specifically relates to Project Enterprise. In the event that no confidentiality agreement has been executed by and between Seller and Freddie Mac with respect to Project Enterprise, this Agreement and the Enterprise
Cash System, Project Enterprise, this Agreement and the Enterprise Cash System are hereby identified as “confidential information” subject to the confidentiality provisions set forth in Section 2.16 of the Guide.
 
	  
 	  
 

  IN WITNESS WHEREOF, Seller and Freddie Mac have caused this Agreement to be executed by their
duly authorized representatives as of the date first set forth above.

	  FEDERAL HOME LOAN MORTGAGE CORPORATION
 	  CRESCENT BANK & TRUST COMPANY DBA CRESCENT MORTGAGE
 
	  
 	  
 
	 By:
 	  /s/ DAVID H. STEVENS
 	   
 	  By:
 	 /s/  MICHAEL P. LEDDY  
 
	  
 	 
 	  
 	  
 	 
 
	   
 	  David H.Stevens,
 	   
 	  
 
	   
 	  Senior Vice President
 	   
 	  Name:
 	 Michael P. Leddy
 
	  
 	  Single Family Lending
 	  
 	  
 	 
 
	  
 	   
 	  
 	  
 	  
 
	  
 	  Title:
 	 Executive Vice President

	  
 	  
 	 
 
	  
 	  
 	  
 
	 Special Programs and Products
 
	  Enterprise Cash System Agreement
 
	  MA02100134 –– Attachment 8
 
	  Page 6 –– 10/24/2002
 

   EXHIBIT A
 FREDDIE MAC MODIFIED BLANKET FORM 987E
 Blanket Wire Transfer Authorization for Cash Warehouse Delivery
 (This form must be typed. Please
read instructions on the third page of this form.)

	  Seller/Servicer number:
 
	  
 	 
 	  
 
	  Seller’s name:
 
	  
 	 
 
	  Warehouse lender’s name:
 
	  
 	 
 
	 Warehouse lender’s Address:
 
	  
 	 
 
	  
 	  
 
	  
 	 
 
						

  Wire transfer instructions

	  Determine whether this transfer of funds is a three-party OR a two-party transfer, and complete the appropriate section below.
 
	  
 
	  For three-party transfers only
 
	  
 
	  Transfer bank’s name (bank where funds are to be initially transferred for further credit to beneficiary’s bank)
 
	  
 
	 
 
	  
 
	  ABA number (nine-digit routing number of above-named transfer bank)
 
	  
 
	  __ __ __ __ - __ __ __ __ - __
 
	  
 
	 City, State (address of transfer bank)
 
	  
 
	 
 
	  
 
	  Beneficiary’s bank’s name (bank receiving funds for beneficiary)
 
	  
 
	 
 
	  
 
	  Beneficiary’s account number at transfer bank
 
	  
 
	 
 
	  
 
	  Beneficiary’s name (either Seller/Servicer or Warehouse Lender depending on who will receive final credit of funds)
 
	  
 
	 
 
	  
 
	  Beneficiary’s account number (final account where transfer is to be credited)
 
	  
 
	 
 
	  
 
	  Special Programs and Products
 
	 Enterprise Cash System Agreement – Exhibit A
 
	  MA02100134 –– Attachment 8
 
	  Page 1 –– 10/24/2002
 

   For two-party transfers only

	  Beneficiary’s bank’s name (bank receiving funds for beneficiary)
 
	  
 
	 
 
	  
 
	  ABA number (nine-digit routing number of above-named beneficiary’s bank)
 
	  
 
	  __ __ __ __ - __ __ __ __ -  __
 
	  
 
	  City, State (address of beneficiary’s bank)
 
	  
 
	 
 
	  
 
	  Beneficiary’s name (either Seller/Servicer or Warehouse Lender depending on who will receive final credit of funds)
 
	  
 
	 
 
	  
 
	 Beneficiary’s account number (final account where transfer is to be credited)
 
	  
 
	 
 
	  
 
	  Further instructions (Choose only one)
 
	  
 
	  [________] FOR ATTENTION OF
 
	  
 
	 
 
	  
 
	  [________] IMMEDIATE PHONE ADVICE (name and telephone number)
 
	  
 
	  [________] Comments
 
	  
 
	 
 
	  
 
	  Special Programs and Products
 
	  Enterprise Cash System Agreement – Exhibit A
 
	  MA02100134 –– Attachment 8
 
	  Page 2 –– 10/24/2002
 

  Mandatory
  Before any wire transfer of funds, Freddie Mac must have the Seller’s authorization in
writing. The one-time Modified Blanket Form 987E must be signed by an officer authorized to provide wire transfer instructions and certified by the Seller’s official seal or stamp (if applicable). Seller/Servicer must execute a Modified Blanket
Form 987E for each Warehouse lender that Seller/Servicer uses. If Seller/Servicer desires to change the wire transfer instructions on a Modified Blanket Form 987E, Seller/Servicer must execute a new Modified Blanket Form 987E and properly deliver
the Form to Freddie Mac. Freddie Mac must have a duly executed one-time Modified Blanket Form 987E on file before transferring any funds by wire transfer. In addition, with each delivery of Pledged Mortgages, Freddie Mac must receive a fully
executed Form 996E, Warehouse Lender Release of Security Interest, signed by the Warehouse Lender before Freddie Mac will fund. Freddie Mac is not responsible if funding is delayed because the Modified Blanket Form 987E is not on file with Freddie
Mac or the Form 996E is incomplete or not received with a Mortgage delivery.

	  Signature block. The above instruction is approved by:
 	  Official seal or stamp
 	 
 
	  
 	  
 	 
 
	  Signature of Seller’s corporate officer
 	  
 	 
 
	  
 	  
 	 
 
	 
 	  
 	 
 
	 Signature
 	  
 	 
 
	  
 	  
 	 
 
	 
 	  
 	 
 
	  Typed name of Seller’s corporate officer
 	  
 	 
 
	  
 	  
 	 
 
	 
 	  
 	 
 
	  Corporate title
 	  
 	 
 
	  
 	  
 	 
 
	 
 	  
 
	  Date approved Telephone number
 	  
 	 
 
	  
 	  
 	 
 
	 
 	  
 	 
 
				

 FOR FREDDIE MAC USE ONLY
  The undersigned has verified that the wire transfer instructions contained in this Modified
Blanket Form 987 have been accurately and properly entered into Freddie Mac’s computer Systems.
  Signature of Confirmation

	  By:
 	  
 	  
 
	  
 	 
 	  
 

  Freddie Mac Modified Blanket Form 987E (10/02) – For Use Only With Enterprise
Cash

	  Special Programs and Products
 
	  Enterprise Cash System Agreement – Exhibit A
 
	  MA02100134 –– Attachment 8
 
	  Page 3 –– 10/24/2002
 

   Instructions for Modified Blanket Form 987E

	  The Seller must complete the following items, unless indicated as optional:
 
	  
 
	  Seller/Servicer number: Seller/Servicer number assigned by Freddie Mac
 
	  
 
	 Seller’s name: Full legal name of the Seller
 
	  
 
	  Warehouse lender’s name: Full legal name of Warehouse Lender
 
	  
 
	  Warehouse lender’s Address: Street No., Suite No., Street Name, City, State, Zip Code
 
	  
 
	  Three-party transfers: A three-party transfer involves a transfer of funds in which a correspondent bank must be credited first in order for the funds to be applied to the
beneficiary’s bank (for example, a transfer of funds to the Federal Home Loan Bank of Pittsburgh for credit to ABC Bank for credit to XYC Mortgage Company)
 
	  
 
	  Transfer bank: Full legal name and location (city and state) of the bank where funds are to be initially transferred for further credit to the beneficiary’s
bank
 
	  
 
	  ABA number: American Bankers’ Association’s (ABA’s) nine-digit routing number of the depository institution, that is, the transfer bank. This number must be
entered to ensure the transfer of funds.
 
	  
 
	  Beneficiary’s bank: Full legal name and location (city and state) of the bank receiving the funds for the beneficiary (usually the Warehouse Lender)
 
	  
 
	  Beneficiary’s account number at transfer bank: Account number that the beneficiary’s bank has open for receipt of funds at the transfer bank
 
	  
 
	 Beneficiary’s name: Full legal name of the final party to be credited as a result of the transfer of funds
 
	  
 
	  Beneficiary’s account number: Final account number of the beneficiary where the funds are to be credited
 
	  
 
	  Two-party transfers: A two-party transfer involves a transfer of funds in which the funds are directly routed to the beneficiary’s bank (for example, a transfer of funds
to ABC Bank for further credit to XYZ Mortgage Company)
 
	  
 
	  Beneficiary’s bank: Full legal name and location (city and state) of the bank receiving the funds for the beneficiary (usually the Warehouse Lender)
 
	  
 
	  ABA number: ABA’s nine-digit routing number of the depository institution, that is, the beneficiary’s bank. This number must be entered to ensure the transfer of
funds.
 
	  
 
	  Special Programs and Products
 
	  Enterprise Cash System Agreement – Exhibit A
 
	  MA02100134 –– Attachment 8
 
	  Page 4 –– 10/24/2002
 

  Beneficiary’s name: Full legal name of the final party to be credited as a result of the transfer of funds
  Beneficiary’s account number: Final account number of the beneficiary where the funds are to be credited
  Further Instructions (Optional)
  This space is provided for the Seller to furnish additional information that may expedite the notification to the Seller of actual receipt of funds at the bank. Due to the space limitations of 30 characters, only one special
instruction can be used. a. FOR ATTENTION OF: This space could be used to identify a specific department or section within the bank or Seller organization that should be notified of receipt of funds. b. IMMEDIATE PHONE ADVICE: This space could be
used to identify the name and telephone number, including area code, of any individual the Seller requests the bank to call when funds are received.
  Comments: This space could be used to enter any
additional information that will help the transfer of funds to be completed (for example, reference contract number of additional credit party advice).
  Signature block
  The wire transfer instructions contained on this one-time Modified Blanket Form 987 will be accepted only if the form is signed by an officer of the corporation and certified by the Seller’s official seal or
stamp (if applicable). If a current, duly executed Modified Blanket Form 987 is on file with Freddie Mac, Seller/Servicer must, for each delivery of Pledged Mortgages, make sure that a Form 996, Warehouse Lender Release of Security Interest, signed
by the Warehouse Lender, made available within the Enterprise Cash System, is delivered to Freddie Mac.
  Mailing Instructions: Mail original Modified Blanket Form 987 to:
 Freddie Mac

Enterprise Cash — Customer Management
 8609 Westwood Center Drive
 Mail stop C55
 Vienna, VA   22183-5000Mortgage Purchase
  Freddie Mac Modified Blanket Form 987E (10/02)
– For Use Only With Enterprise Cash
  Special Programs and Products
 Enterprise Cash System Agreement – Exhibit A
 MA02100134 — Attachment 8
 Page 5 —
10/24/2002

  ATTACHMENT 9
 ADDITIONAL PROVISIONS/RESTRICTIONS 

	  1.
 	  Notes and Intervening Assignments/Limited Power of Attorney
 
	  
 	  
 
	  
 	  Mortgages originated by Mortgage Brokers or Correspondents for which the Notes have been endorsed and the Intervening Assignments have been executed by Seller’s
representatives as attorneys in fact for the Third-party Originators pursuant to limited powers of attorney (“POA”) are eligible for purchase, provided that:
 
	  
 	  
 
	  
 	  (a)
 	  Seller’s representatives are duly authorized by Seller to act as attorneys in fact for the Mortgage Brokers or Correspondents;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Seller warrants that each POA is valid under applicable law and gives each of Seller’s applicable authorized representatives full authority to endorse the Notes and execute
the Intervening Assignments on behalf of each respective Mortgage Broker or Correspondent;
 
	  
 	  
 	  
 
	  
 	 (c)
 	  Seller warrants that each Note is negotiable and each Intervening Assignment properly transfers all rights and interest in each respective Security Instrument;
 
	  
 	  
 	  
 
	  
 	  (d)
 	  a separate POA is executed and provided for each Mortgage;
 
	  
 	  
 	  
 
	  
 	  (e)
 	  each POA is recorded concurrently with each respective Intervening Assignment;
 
	  
 	  
 	  
 
	  
 	  (f)
 	  if Seller uses a third-party Custodian, each original POA is delivered to the Custodian for storage with each original Intervening Assignment and Note (if the original limited
POA is not back from the recorder’s office by the time of delivery, a Seller certified copy of the limited POA must be delivered to the Custodian and the original limited POA must be promptly delivered to the Custodian after it is received from
the recorder’s office);
 
	  
 	  
 	  
 
	  
 	 (g)
 	  if Seller uses Freddie Mac as the Custodian, each original POA is stored by Seller with each original Intervening Assignment and the Security Instrument, and a coy of the POA is
delivered to Freddie Mac for storage with each original Note;
 
	  
 	  
 	  
 
	  
 	  (h)
 	  Freddie Mac hereby identifies and Seller hereby agrees to treat the special provisions set forth herein as “confidential information” as that term is defined in
Section 2.16 of the Guide;
 
	  
 	  
 	  
 
	  
 	  (i)
 	  if Seller uses a Custodian other than Freddie Mac’s Document Control Custodial Services, Seller must provide a copy of this waiver to the Custodian; and
 
	  
 	  
 	  
 
	  
 	  (j)
 	  Seller warrants that if Notes are endorsed by use of an allonge, the allonge complies with the requirements of the applicable jurisdiction’s law and that each such Note is
fully negotiable.
 

 Additional Provisions/Restrictions
 MA02100134 — Attachment 9
 Page 1 — 10/24/2002

	  2.
 	  Facsimile of Form 996, Warehouse Lender Release of Security Interest
 
	  
 	  
 
	  
 	  With respect to the delivery of Pledged Mortgages, Seller or Seller’s Warehouse Lender may transmit a signed facsimile of the original signed Form 996,
Warehouse Lender Release of Security Interest, in lieu of sending in the original Form 996 with an original signature, provided that:
 
	  
 	  
 
	  
 	  (a)
 	  Seller and Seller’s Warehouse Lender, Federal Home Loan Bank of Atlanta shall enter into a Special Trading Partner Agreement with Freddie Mac substantially identical to
Exhibit 2A attached hereto which shall be delivered to Freddie Mac’s Institutional Eligibility Department in McLean, VA.;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Seller and Seller’s Warehouse Lender(s) shall be fully responsible for the authenticity of authorized signatures on each facsimile Form 996 transmitted to Freddie
Mac;
 
	  
 	  
 	  
 
	  
 	 (c)
 	  Seller warrants and represents to Freddie Mac, that each facsimile Form 996 transmitted to Freddie Mac (i) has been duly executed by an authorized representative of
Seller’s Warehouse Lender and (ii) is fully enforceable in accordance with its terms;
 
	  
 	  
 	  
 
	  
 	  (d)
 	  Freddie Mac hereby identifies and Seller hereby agrees to treat the special provisions set forth herein as “confidential information” as that term is defined in
Section 2.16 of the Guide;
 
	  
 	  
 	  
 
	  
 	  (e)
 	  Freddie Mac reserves the right to revoke this waiver upon 30 days written notice to Seller; and
 
	  
 	  
 	  
 
	  
 	  (f)
 	  Seller and Seller’s Warehouse Lender, Federal Home Loan Bank of Atlanta, have entered into a Special Trading Partner Agreement with Freddie Mac dated October 24, 2002
substantially identical to Exhibit 2A attached hereto which has been delivered to Freddie Mac’s Institutional Eligibility Department in McLean, VA..
 
	  
 	  
 	  
 
	 3.
 	  Deliveries by Affiliated Entities
 
	  
 	  
 
	  
 	  Mortgages originated by Seller and the affiliated entities identified below shall be eligible for purchase hereunder and such deliveries shall be included by Freddie
Mac in determining fulfillment of the Dollar Volume limit under the Master Agreement and the Contract Commitment Amount of any Master Commitments issued thereunder, provided that:
 
	  
 	  
 
	  
 	  (a)
 	  the affiliated entities are Crescent Mortgage Services, Inc., #113845; and
 

  Additional
Provisions/Restrictions
 MA02100134 — Attachment 9
 Page 2 — 10/24/2002

	  
 	  (b)
 	  Seller shall be fully responsible for all representations and warranties and compliance with the Purchase Documents with respect to all such Mortgages.
 

  Additional Provisions/Restrictions
 MA02100134 — Attachment 9
 Page 3 — 10/24/2002

  EXHIBIT 2-A
 Special Trading Partners Agreement
  This Special Trading Partners Agreement is made as
of the 24th day of October 2002, by and between the Federal Home Loan Bank of Atlanta (“FHLB”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”).
  WHEREAS, FHLB
acts as a warehouse lender for and takes a security interest in certain mortgages originated by Crescent Bank and Trust Company d/b/a Crescent Mortgage Company (“Crescent”) Seller/Servicer # 106856;
  WHEREAS, Crescent seeks to sell mortgages to Freddie Mac and Freddie Mac is willing to buy such mortgages otherwise complying with agreements between Freddie Mac and Crescent, upon the release by FHLB of its security interest
in the mortgages pursuant to Freddie Mac Form 996, Warehouse Lender Release of Security Interest (“Form 996”);
  WHEREAS, the parties seek to facilitate the speed and efficiency of Freddie
Mac’s purchase of mortgages originated by Crescent.
  NOW THEREFORE, in consideration of the foregoing, the parties intending to be legally bound, hereby agree as follows wit respect to
purchases by Freddie Mac of mortgages sold by Crescent in which FHLB is releasing its security interest:

	  1.
 	  Facsimile Transmission of Form 996 Binding. FHLB agrees to be bound by the terms of any Form 996 signed by FHLB and transmitted to Freddie Mac by facsimile transmission
(whether or not such signature was authorized). The receipt by Freddie Mac of a facsimile Form 996 on which is contained a written signature shall constitute a “writing” and shall be deemed for all purposed to have been (a)
“signed” and (b) to constitute an “original”.
 
	  
 	  
 
	 2.
 	  Course of Dealing. The conduct of the parties pursuant to this Agreement shall, for all legal purposes, evidence a course of dealing and a course of performance accepted
by the parties in furtherance of this Agreement and any transaction.
 
	  
 	  
 
	  
 	  The parties agree not to contest the validity or enforceability of a facsimile signed Form 996 under the provisions of any applicable law relating to whether certain agreements
are to be in writing or signed by the party to be bound thereby. Facsimile signed Form 996s, if introduced as evidence in any judicial, arbitration, mediation, or administrative proceedings, will be admissible as between the parties to the same
extent and under the same conditions as other business records originated and maintained in documentary form. Neither party shall contest the admissibility of facsimile signed Form 996s under either the business records exception to the hearsay rule
or the best evidence rule on the basis that the facsimile signed Form 996s were not originated or maintained in documentary form.
 
	  
 	  
 
	  3.
 	  Authorization of the Parties. Each party represents that the individual executing the Agreement on its behalf is duly authorized to do so.
 

 Additional Provisions/Restrictions
 Facsimile of Form 996, Warehouse Lender Release of Security Interest
 Exhibit 2-A Special Trading Partners Agreement
 MA02100134 –– Attachment 9

Page 1 –– 10/24/2002

	 4.
 	  Confidentiality. FHLB shall hold in confidence and protect the terms and conditions of this agreement from disclosure to and/or use by anyone not a party to
this agreement or the Custodian Agreement between FHLB and Crescent, and shall disclose the terms and conditions of this agreement only to employees of FHLB and Crescent who are required to be familiar with the terms and conditions of this
agreement. Without limiting the foregoing, FHLB may disclose the terms and conditions of this agreement to internal and outside auditors; in-house and outside legal counsel of FHLB; governmental regulatory agencies; officers and directors of FHLB;
and as otherwise required by law.
 
	  
 	  
 
	  5.
 	  Acceptance of Agreement. To accept and confirm this Agreement, FHLB must countersign the Agreement and return to:
 
	  
 	  
 
	  
 	  Freddie Mac
 
	  
 	  2300 Windy Ridge Parkway
 
	  
 	  North Tower, Suite 200
 
	  
 	  Atlanta, GA 30339
 
	  
 	  Attn: Ms. Julie Strickland, Contract Specialist
 
			

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their authorized representatives.

	  FEDERAL HOME LOAN MORTGAGE
 CORPORATION
 	  
 	  FEDERAL HOME LOAN BANK
 OF ATLANTA
 
	  
 	  
 	  
 
	  By:
 	  /s/ DAVID H. STEVENS
 	  
 	  By:
 	  /s/ 
 	  
 
	  
 	 
 	  
 	  
 	 
 	  
 
	  
 	  David H. Stevens
 	  
 	  Name:
 	  
 	  
 
	  
 	 Senior Vice President
 	  
 	  
 	 
 	  
 
	  
 	  Single Family Lending
 	  
 	  Title:
 	  
 	  
 
	  
 	   
 	  
 	  
 	 
 	  
 
	   
 	   
 	  
 	  
 
	   
 	   
 	  
 	  By:
 	  /s/
 	 
	  
 	  
 	  
 	 
 
	  
 	  
 	  Name:
 	  
 
	  
 	  
 	  
 	 
 
	  
 	  
 	 Title:
 	  
 
	  
 	  
 	  
 	 
 

  Additional Provisions/Restrictions
 Facsimile of Form 996, Warehouse Lender Release of Security
Interest
 Exhibit 2-A Special Trading Partners Agreement
 MA02100134 –– Attachment 9
 Page 2 –– 10/24/2002

   ATTACHMENT 10
 Pool Insurance/Crescent Bank & Trust Company dba Crescent Mortgage
 Special Provisions Applicable to Pool
Insurance
  During the period October 1, 2002, through September 30, 2002, all 30-year Fixed-rate Home Mortgages with LTV ratios exceeding 65 percent, but not exceeding 97 percent,
excluding: (a) Mortgages where the Mortgaged Premises are located in Guam, Puerto Rico or the U.S. Virgin Island; (b) Mortgages identified by special characteristic codes 001, 033, 218, 219, 291, 531, or 537; (c) Mortgages insured or guaranteed by a
federal government agency or instrumentality; (d) Customer MI Mortgges; (e) A-minus Mortgages; (f) Alt 97 Mortgges except those with at least 35 percent mortgage insurance coverage; (g) all Mortgges with secondary financing; and (h) Mortgages
considered for secondary market coverage.
  The MPI Policy is to be issued by Radian Guaranty, Inc. (“Insurer”), a Freddie Mac-approved mortgage insurer selected by Seller. The Required
Spread has been increased to permit payment of any premiums due on account of the MPI Policy by Freddie Mac. The Pool Insurance Agreement shall be executed and delivered simultaneously with the execution of this Agreement. The effectiveness of this
Agreement is subject to and conditioned upon the execution and delivery of such Pool Insurance Agreement, the provisions of which are incorporated by this reference.
 Freddie Mac’s obligation
to purchase Applicable Mortgages under this Agreement and applicable Master Commitments is contingent upon Seller’s ability to obtain coverage for each Applicable Mortgage under the MPI Policy in accordance with the terms of the Pool Insurance
Agreement. In the event of any “Default” (as that term is defined in the Pool Insurance Agreement), or in the event the Insurer fails at any time to satisfy the conditions set forth in Section VII, paragraph 1 of the Pool Insurance
Agreement, Seller shall not be permitted to deliver any additional Applicable Mortgages under this Agreement without the prior written consent of Freddie Mac, which may be granted or withheld at Freddie Mac’s sole discretion.
 
Additional Provisions/Restrictions
Pool Insurance/Crescent Bank & Trust Company dba Crescent Mortgage
 MA02100134 –– Attachment 10
 Page 1 –– 10/24/2002

   Pool Insurance/Crescent Bank & Trust Company dba Crescent Mortgage
 POOL INSURANCE AGREEMENT
  This Pool Insurance Agreement (“Pool Insurance Agreement”), is made as of October 1, 2002, by and between the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and Crescent Bank & Trust Company dba
Crescent Mortgage (Freddie Mac Seller/Servicer #106856 and 113845 (“Seller”).
  WITNESSETH:
            WHEREAS, Freddie Mac is a publicly-held government-sponsored enterprise created pursuant to the Federal Home Loan Mortgage Corporation Act, as amended;
 
          WHEREAS, pursuant to Master Agreement # MA02100134 (the “Master Agreement”), Freddie Mac and Seller have or will enter into one or more
Master Commitment(s), pursuant to which, during the period October 1, 2002 through September 30, 2003, Freddie Mac agrees to purchase Mortgages from Seller in exchange for Mortgage Participation Certificates representing interests in pools of the
Mortgages and/or cash; and
           WHEREAS, to induce Freddie Mac to purchase Mortgages, Seller has agreed to enter into this Pool Insurance
Agreement;
            NOW THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and conditions
contained herein and in the Master Agreement and Master Commitment(s), the parties hereby agree as follows:

	  Section I.
 	  Definitions.
 

  Capitalized terms used in and not defined in this Pool Insurance Agreement shall
have the meanings assigned them in the Purchase Documents (as that term is defined in the Master Agreement).
  Whenever used in this Pool Insurance Agreement, the following words and phrases shall
have the following meanings, unless the context requires otherwise:
  Applicable Mortgages: All Home Mortgages for which pool mortgage insurance coverage is required under the Master
Agreement, consisting of all 30-year Fixed-rate Mortgages with LTV ratios greater than 65 percent, but not greater than 97 percent, which are to be purchased thereunder; provided, however, that Applicable Mortgages shall not include:   (a)
Mortgages where the Mortgaged Premises are located in Guam, Puerto Rico or the U.S. Virgin Island; (b) Mortgages identified by special characteristic codes 001, 033, 218, 219, 291, 531, or 537; (c) Mortgages insured or guaranteed by a federal
government agency or instrumentality; (d) Customer MI Mortgges; (e) A-minus Mortgages; (f) Alt 97 Mortgges except those with at least 35 percent mortgage insurance coverage; (g) all Mortgges with secondary financing; and (h) Mortgages considered for
secondary market coverage.
  Additional Provisions/Restrictions
Pool Insurance/Crescent Bank & Trust Company dba Crescent Mortgage
 MA02100134 –– Attachment 10
 Page 1
–– 10/24/2002

  Delinquent Mortgage: An Insured Mortgage:

	  (a)
 	  that is thirty (30) or more calendar days delinquent;
 
	  
 	  
 
	  (b)
 	  for which Freddie Mac is holding any REO Property; or
 
	  
 	  
 
	  (c)
 	  for which REO Property has been sold or otherwise disposed of but for which Freddie Mac has not been reimbursed losses covered under the MPI Policy.
 

  Insured Mortgages: All Mortgages for which pool mortgage insurance is obtained under an MPI Policy, which shall include all Applicable Mortgages.
  Insurer: Radian Guaranty, Inc., or any successor insurance company approved by Freddie Mac that provides an MPI Policy.
  Loss Mitigation Activities: Any
modification of loan documents or other concessions to the borrower with respect to a Mortgage, including without limitation, any incentive or below-market financing, or any sale of the REO Property, including a sale for a price less than the
indebtedness approved by Insurer.
  Mortgage Cure: The occurrence of one of the following conditions:

	  (a)
 	  the final sale or other disposition of any property relating to a Delinquent Mortgage and the real property encumbered by any such Mortgage (including, without limitation, with
the approval of Freddie Mac and/or Insurer, as applicable, delivery of the property to Seller or retention of the property by the Borrower pursuant to Freddie Mac’s Loss Mitigation Activities), and payment of all amounts due Freddie Mac with
respect to any claim, and reimbursement of any Uncovered Losses, arising from such activity;
 
	  
 	  
 
	 (b)
 	  the Delinquent Mortgage becoming current through payment of all outstanding delinquent amounts;
 
	  
 	  
 
	  (c)
 	  the payment in full of the Delinquent Mortgage; or
 
	  
 	  
 
	  (d)
 	  the repurchase of the Delinquent Mortgage by Seller according to the repurchase procedures in the Guide.
 

  MPI Policy: A mortgage pool insurance policy or mortgage trust supplemental policy, substantially identical to the specimen policy attached to this Pool Insurance Agreement as an Exhibit and in a form otherwise
acceptable to Freddie Mac, by which Insurer agrees to provide pool insurance coverage with respect to each Applicable Mortgage.
  Policy Termination Date: September 30, 2013
 
Additional Provisions/Restrictions
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 MA02100134 –– Attachment 10
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   REO Property: Any real property and personal property that is or was: (a) encumbered by a Mortgage, and (b) acquired through foreclosure or deed-in-lieu of
foreclosure.
  Uncovered Losses: Losses resulting from a Borrower’s default under an Insured Mortgage that (a) are attributable to Seller’s or the designated servicer’s breach
of its representations and warranties made to Freddie Mac or the violation of other provisions of the Purchase Documents relating to the origination, delivery and servicing of the Insured Mortgages, (b) are not approved by Freddie Mac in accordance
with Chapter 71 of the Guide and (c) Insurer determines not to cover due to a material misrepresentation made by Seller or the designated servicer, or by the Borrower.

	 Section II.
 	  General Terms.
 
	  
 	  
 
	  1.
 	  As a condition of Freddie Mac entering into the Master Agreement, effective with the date of this Pool Insurance Agreement, Seller agrees that, except for payment of
all required premium(s) and the delivery of information specifically undertaken by Freddie Mac in accordance with Section IV, below, Seller shall take all actions necessary to maintain an MPI Policy covering each Applicable Mortgage. All actions
with respect to the eligibility of the Applicable Mortgages required of Seller shall be undertaken prior to the sale of such Applicable Mortgages to Freddie Mac.
 
	  
 	  
 
	  2.
 	  The MPI Policy shall contain the following terms:
 
	  
 	  
 
	  
 	  (a)
 	  The Named Insured shall be Freddie Mac, and such insurance shall be solely for the benefit of Freddie Mac.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  The MPI Policy shall be effective as of the last Business Day of the month with respect to all Applicable Mortgages purchased by Freddie Mac during that month. For
each month in which Freddie Mac purchases Applicable Mortgages, Freddie Mac shall receive an endorsement to the MPI Policy, which shall cover the Applicable Mortgages purchased during such month.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  The term of the MPI Policy shall continue until the Policy Termination Date; provided, however, the MPI Policy shall not terminate as to any Delinquent Mortgage
until a Mortgage Cure has occurred with respect to each such Delinquent Mortgage.
 
	  
 	  
 	  
 
	  3.
 	  Except as otherwise specified herein, all references in the Guide (other than in Section 27.1 and Chapter 61) to:
 
	  
 	  
 
	  
 	  (a)
 	  a mortgage insurer (MI) shall be deemed to include Insurer and any primary mortgage insurer; and
 
	  
 	  
 	  
 
	  
 	  (b)
 	  mortgage insurance shall be deemed to include pool insurance as evidenced by the MPI Policy and any primary mortgage insurance policy.
 
				

 Additional Provisions/Restrictions
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 MA02100134 –– Attachment 10
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–– 10/24/2002

	  Section III.
 	  Seller’s Representations and Warranties.
 
	  
 	  
 
	  Seller represents, warrants and covenants that:
 
	  
 
	  1.
 	  The execution, delivery and performance of this Pool Insurance Agreement and all documents required to be submitted pursuant hereto, and the carrying out by Seller
of the transactions contemplated by this Pool Insurance Agreement, have been duly authorized by all necessary corporate action by Seller.
 
	  
 	  
 
	  2.
 	  This Pool Insurance Agreement constitutes the valid and binding obligation of Seller, enforceable in accordance with its terms. The consummation of the transactions
contemplated by this Pool Insurance Agreement by Seller, the fulfillment of the terms of this Pool Insurance Agreement and the compliance by Seller with all of the terms of this Pool Insurance Agreement by Seller shall not result in any breach of,
or constitute a default under, any applicable law, regulation or order (including those applicable to the origination, settlement, sale or servicing of Applicable Mortgages) or any agreement to which Seller is a party or by which Seller or any of
its properties is bound or affected, or result in the creation of any lien upon any property or assets of Seller. No consent, license, approval or authorization of any nature of, or other formal action by, any governmental authority, bureau or
agency is or will be required in connection with the execution, delivery, validity or performance of the terms of this Pool Insurance Agreement by Seller or the carrying out of the transactions contemplated by this Pool Insurance Agreement by
Seller, except as shall have been duly and timely obtained.
 
	  
 	  
 
	 3.
 	  The performance of Seller’s obligations under this Pool Insurance Agreement does not constitute a fraudulent conveyance within the meaning of bankruptcy,
insolvency, reorganization moratorium and other similar laws affecting the rights of creditors.
 
	  
 	  
 
	  4.
 	  In order to obtain pool insurance from Insurer, Seller is not required to obtain primary mortgage insurance from Insurer on a specified percentage of mortgages that
require primary mortgage insurance and are originated by Seller.
 
	  
 	  
 
	  Section IV.
 	  General Obligations of Freddie Mac.
 
	  
 	  
 
	  1.
 	  For each Applicable Mortgage, Freddie Mac shall deliver all basic loan data required by the Insurer to determine that the Applicable Mortgages will be covered under
the MPI Policy, and to calculate the applicable premiums. The basic loan data will be derived from information provided to Freddie Mac by Seller.
 
	  
 	  
 
	  2.
 	  Freddie Mac shall pay the initial premiums and all renewal premiums as required by the MPI Policy for Applicable Mortgages eligible for coverage to become and remain
Insured Mortgages.
 
	  
 	  
 
	 3.
 	  The aggregate unpaid balance of the Insured Mortgages shall be verified and reconciled by Freddie Mac at the time the MPI Policy is issued and in each subsequent
month in which Insured Mortgages are delivered.
 
			

  Additional Provisions/Restrictions
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–– 10/24/2002

	  4.
 	  Freddie Mac may provide information to the Insurer regarding the unpaid principal balances and delinquency status of Insured Mortgages from time to time during the term of this
Agreement.
 

 

	  Section V.
 	  General Obligations of Seller.
 
	  
 	  
 
	  1.
 	  Seller shall be responsible for the accuracy of the information provided to Freddie Mac, which Freddie Mac provides to the Insurer pursuant to Section IV, paragraph
1, above. Seller shall promptly update this information for Insurer if the special characteristics code for any Applicable Mortgage or Insured Mortgage is determined to be 001, 033 or 531, if any Insured Mortgages are repurchased by
Seller.
 
	  
 	  
 
	 2.
 	  From time to time, Seller shall provide Insurer with all reports and information relating to the Applicable Mortgages and Insured Mortgages requested by the Insurer
or required by the MPI Policy in the manner proscribed by the MPI Policy. Such information, at a minimum, shall include information relating to identification of the Insured Mortgages, such as the Freddie Mac Loan Numbers, for each Insured Mortgage.
Seller shall also provide Insurer with all assumption and delinquency information and all other reports requested by the Insurer or required by the MPI Policy relating to the Insured Mortgages.
 
	  
 	  
 
	  3.
 	  If Seller at any time determines that the current unpaid principal balance of an Insured Mortgage as reflected on the records of the Insurer or Freddie Mac is
different than the actual unpaid principal balance of such Insured Mortgage, Seller shall notify Freddie Mac in writing, and shall provide Freddie Mac’s Transaction Manager with the actual unpaid principal balance of all such Insured
Mortgages.
 
	  
 	  
 
	  4.
 	  Seller shall promptly execute and/or deliver all documents and take all other actions necessary to comply with the requirements of the MPI Policy and shall perform
all of the obligations of Freddie Mac as named insured thereunder except for those obligations specifically undertaken by Freddie Mac under Section IV, above.
 
	  
 	  
 
	 5.
 	  Seller agrees to comply with procedural changes necessary to facilitate the execution of  the terms of this Pool Insurance Agreement, provided, however, that
such changes do not materially alter the terms of this Pool Insurance Agreement.
 
	  
 	  
 
	  6.
 	  Seller shall maintain a record of each MPI Policy number, and the certificate number applicable to each Insured Mortgage.
 
	  
 	  
 
	  7.
 	  Seller’s obligations to comply with the terms of the MPI Policy and this Pool Insurance Agreement shall be in addition to, and not in lieu of, its obligations
to comply with the terms of the primary mortgage insurance policy, and the provisions of the other Purchase Documents, applicable to the Insured Mortgages.
 
			

  Additional Provisions/Restrictions
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–– 10/24/2002

	  Section VI.
 	  Servicing Obligations of Seller.
 
	  
 	  
 
	 1.
 	  Seller shall service each and every Insured Mortgage in accordance with the MPI Policy, this Agreement and the Purchase Documents.
 
	  
 	  
 
	  2.
 	  Freddie Mac shall file all claims under the MPI Policy, with Freddie Mac indicated as the “payee”.
 
	  
 	  
 
	  3.
 	  Freddie Mac must receive the final Form 104, Statement of Loan and Real Estate Owned Expenses and Income, within 30 days of the settlement date relating to the sale
of the REO Property.
 
	  
 	  
 
	  4.
 	  Seller shall undertake all actions necessary or appropriate to perfect any claim under the MPI Policy. If Seller fails to take all steps necessary to file and
perfect a claim with the primary mortgage insurer or Insurer for a loss covered by the primary mortgage insurance policy or the MPI Policy, as applicable, and such failure results in the primary insurer or Insurer, as applicable, not covering all or
a portion of such loss, then Freddie Mac may require Seller to reimburse Freddie Mac for such loss in the amount that would have been covered under the primary mortgage insurance policy and/or the MPI Policy, as applicable, or exercise any other
remedies available under the Guide.
 
	  
 	  
 
	 5.
 	  If applicable, when completing Freddie Mac Form 1076, Notification of Foreclosure Sale and Acquisition of Title, and/or Freddie Mac Form 1098, Worksheet for
Notification of Mortgages Approved for Foreclosure, Seller shall complete all information relating to mortgage insurance by referencing the applicable primary mortgage insurance policy. In addition, the line titled “Mortgage Insurance
Information” shall be completed by referencing the applicable primary mortgage insurance policy.
 
	  
 	  
 
	  6.
 	  If applicable, when completing Freddie Mac Form 1126, Workout Fact Sheet, in addition to providing required information relating to the primary mortgage insurance
coverage, Seller shall provide the name of the Insurer, the applicable policy number for the MPI Policy, and the certificate number for the applicable Insured Mortgage. In addition, Seller shall type or Stamp “Pool Insurance” across the
top of the Form 1126.
 
	  
 	  
 
	  Section VII.
 	  Qualification of Insurer.
 
	  
 	  
 
	  1.
 	  Insurer shall at all times during the term of this Agreement (a) be duly authorized to write the insurance required by this Pool Insurance Agreement, (b) be approved
as a mortgage insurer (MI) by Freddie Mac, and (c) have and maintain a rating of no less than “AA” (or an equivalent rating) from either Standard & Poor’s Corporation or Moody’s Investors Service.
 
	  
 	  
 
	 2.
 	  In the event Insurer fails at any time to satisfy the conditions set forth in Section VII, paragraph 1, then:
 
	  
 	  
 
	  
 	  (a)
 	  Seller shall immediately notify Freddie Mac;
 
				

  Additional Provisions/Restrictions
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–– 10/24/2002

	  
 	  (b)
 	  Freddie Mac may, at its option, take such action or impose such additional or substitute requirements as Freddie Mac may deem appropriate, in its sole and absolute
discretion; provided, however, Freddie Mac shall not demand that Seller repurchase a Mortgage based solely on Insurer’s failure to satisfy one or more of the foregoing conditions; and
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Seller shall not be permitted to deliver any additional Applicable Mortgages which were to have been sold and serviced under the Master Agreement and this Pool
Insurance Agreement without the prior written consent of Freddie Mac, which may be granted or withheld at Freddie Mac’s sole discretion.
 
	  
 	  
 	  
 
	 3.
 	  If Freddie Mac requires that the coverage be transferred to a successor insurer, Seller agrees to cooperate and assist in finding a new insurer and in transferring
the coverage. Such cooperation and assistance shall include, but not be limited to, providing all reasonable loan records, data and mortgage files necessary for review by the successor insurer. In the event the coverage is transferred to a successor
insurer, Seller shall remain responsible for all obligations described in this Pool Insurance Agreement for maintaining the coverage.
 
	  
 	  
 
	  Section VIII.
 	  Default.
 
	  
 	  
 
	  A “Default” hereunder shall be deemed to have occurred at such time as any one or more of the following events have occurred:
 
	  
 
	  1.
 	  Seller fails to observe the obligations set forth in Sections V and VI of this Pool Insurance Agreement;
 
	  
 	  
 
	  2.
 	  any representation or warranty made by Seller in this Pool Insurance Agreement, the other Purchase Documents, or any certificate, document or other statement
furnished at any time under or in connection with this Pool Insurance Agreement or the other Purchase Documents proves to have been incorrect when made in any respect adverse to Freddie Mac and such breach shall not have been cured within such
reasonable time period as shall be determined by Freddie Mac, in its sole discretion, after Freddie Mac gives Seller written notice of such breach;
 
	  
 	  
 
	 3.
 	  Seller shall fail to observe any other covenant or provision contained in this Pool Insurance Agreement or the other Purchase Documents and such breach shall not
have been cured within such reasonable time period as shall be determined by Freddie Mac in its sole discretion, after Freddie Mac gives Seller written notice of such breach;
 
	  
 	  
 
	  4.
 	  the entry of a decree or order for relief in respect of Seller in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or the appointment of a receiver, liquidator, assignee, trustee, custodian or sequestrator (or other similar official) for Seller or for all or substantially all of its property, or the entry of an order for Seller to wind up or
liquidate its affairs, and such decree or order remaining unstayed and in effect for a period of 60 consecutive days;
 
				

  Additional Provisions/Restrictions
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 MA02100134 –– Attachment 10
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–– 10/24/2002

	  5.
 	  Seller commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to the entry of any order
for relief in an involuntary case under any such law, or consents to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, or sequestrator (or other similar official) of Seller or for any substantial part
of its property, or makes any general assignment for the benefit of creditors, or fails generally to pay its debts as they become due;
 
	  
 	  
 
	 6.
 	  Seller’s eligibility to service the Mortgages is terminated by Freddie Mac pursuant to the Guide.
 
	  
 	  
 
	  Section IX.
 	  Remedies.
 
	  
 	  
 
	  At any time following the occurrence of a Default hereunder, Freddie Mac may, at its sole option, elect to (a) terminate this Pool Insurance Agreement, the Master
Agreement and/or applicable Master Commitment(s), and/or (b) exercise any other remedies provided herein or in the Purchase Documents or at law or in equity. The rights and remedies of Freddie Mac under this Pool Insurance Agreement are in addition
to, not in limitation of, any other rights and remedies available to Freddie Mac under the other Purchase Documents or at law or in equity.
 
	  
 
	  Section X.
 	  Termination of the Agreement.
 
	  
 	  
 
	  1.
 	  Subject to the provisions of Section X, paragraph 3, below, this Pool Insurance Agreement and the obligations and responsibilities of the parties set forth herein
shall terminate:
 
	  
 	  
 
	  
 	 (a)
 	  upon the final payment by Borrowers of all principal and interest payments due under the Insured Mortgages;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  in the event Freddie Mac, at its sole option and in addition to any other remedies available to Freddie Mac under the Purchase Documents, elects to terminate this
Pool Insurance Agreement following the occurrence of a Default; provided, however, that such election shall not cause coverage under the MPI Policy to be terminated nor shall such election relieve Seller of any of its obligations under Sections V
and VI of this Pool Insurance Agreement prior to receipt of final payment in accordance with Section X, paragraph 1(a), above; or
 
	  
 	  
 	  
 
	  
 	  (c)
 	  on the Policy Termination Date.
 
	  
 	  
 	  
 
	  2.
 	  Subject to the provisions of Section X, paragraph 3 below, this Pool Insurance Agreement shall terminate as to the individual affected Applicable Mortgage(s) or
Insured Mortgage(s) only:
 
	  
 	  
 
	  
 	 (a)
 	  upon repurchase of any Applicable Mortgage or Insured Mortgage from Freddie Mac in accordance with Section XII, below; or
 
				

  Additional Provisions/Restrictions
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 MA02100134 –– Attachment 10
 Page 8
–– 10/24/2002

	  
 	  
 	  
 
	  
 	  (b)
 	  in the event the special characteristics code applicable to any Applicable Mortgage or Insured Mortgage is determined to be 001, 033 or 531, or Freddie Mac requires
Seller to repurchase or provide indemnification or recourse with regard to any Applicable Mortgage or Insured Mortgage.
 
	  
 	  
 
	  3.
 	  The MPI Policy shall not terminate with respect to any individual Delinquent Mortgage until a Mortgage Cure has occurred as to such Mortgage, and this Pool Insurance
 Agreement shall not terminate with respect to such Mortgage until such termination date. Termination of this Pool Insurance Agreement shall not release Seller from any obligations or responsibilities to the extent of (a) any action
or omission by Seller prior to termination which, if properly undertaken, would have resulted in reimbursement to Freddie Mac under the terms of the MPI Policy or this Pool Insurance Agreement, or (b) any claim which may be filed or is then pending
at the time of such termination, which Seller shall diligently pursue until final resolution.
 
	  
 	  
 
	 Section XI.
 	  Notice Instructions.
 
				

 

	  All notices, requests and other communications pursuant to this Pool Insurance Agreement shall be in writing with return receipt required, and shall be delivered
either by hand, by letter, or by facsimile, addressed as follows:
 
	  
 
	  
 	  If to Seller,
 
	  
 	  
 
	  
 	  Mr. Robert KenKnight
 President
 Crescent Bank & Trust Company dba Crescent Mortgage
 115 Perimeter Center Place
 Suite 285
 Atlanta, GA 30346

	  
 	  
 
	  
 	  Facsimile No.: (770) 677-7992
 Telephone No.: (770) 392-1611
 
	  
 	  
 
	  
 	  If to Freddie Mac,
 
	  
 	  
 
	  
 	 Federal Home Loan Mortgage Corporation
 8609 Westwood Center Drive, MS C51
 Vienna, VA 22183
 Attention: Control and Management Reporting/Pool Insurance
 
	  
 	  
 
	  
 	  Facsimile No.: (703) 760-2717
 Telephone No.: (703) 760-2097
 
	  
 	  
 
	  or to such other address as the party to receive any such communication or notice may have designated by written notice to the other party at the above address. All
periods of notice shall be
 

  Additional Provisions/Restrictions
Pool Insurance/Crescent Bank & Trust Company dba Crescent Mortgage
 MA02100134 –– Attachment
10
 Page 9 –– 10/24/2002

	  measured from the date of hand delivery, or from the date of receipt thereof, if sent by letter or by telecopy.
 
	  
 
	  Section XII.
 	  Repurchase of Mortgages.
 
	  
 	  
 
	  Subject to the terms hereof, and upon written approval from Freddie Mac, Seller may, but unless otherwise required by the Purchase Documents is not obligated to,
repurchase from Freddie Mac, in accordance with the procedures set forth in the Guide, (a) any Insured Mortgage where all or part of the Borrower’s monthly installment of principal, interest and, where applicable, escrow payments is unpaid 90
calendar days or more beyond the due date, (b) any Insured Mortgage that has been recommended for foreclosure or with respect to which foreclosure has been completed or a deed in lieu of foreclosure has been obtained, (c) any Applicable Mortgage for
which coverage under the MPI Policy has been denied by the Insurer, or (d) any Applicable Mortgage for which coverage under the MPI Policy has not been obtained within 30 calendar days following the last Business Day of the month such Mortgage was
purchased by Freddie Mac. The repurchase price shall be determined in accordance with the Guide. With respect to any Mortgage subject to Uncovered Losses, Freddie Mac shall be entitled to exercise any remedies provided in the Purchase Documents or
at law or in equity, including, without limitation, requiring Seller to repurchase such Mortgage.
 
	  
 
	 Nothing contained in this Pool Insurance Agreement shall in any way limit or affect any repurchase, recourse, indemnification or other obligation of Seller under the
Guide or any other Purchase Document.
 
	  
 
	  Section XIII.
 	  Transfer of Servicing.
 
	  
 	  
 
	  1.
 	  Concurrent Transfers of Servicing of any Applicable or Insured Mortgages under this Pool Insurance Agreement shall not be permitted.
 
	  
 	  
 
	  2.
 	  Subsequent Transfers of Servicing of any Applicable or Insured Mortgages under this Pool Insurance Agreement shall be considered by Freddie Mac only after a written
request has been submitted to Freddie Mac in accordance with the requirements set forth in the Guide. Approval of such request shall be in Freddie Mac’s sole discretion. The terms and conditions of approval of any subsequent Transfer of
Servicing shall be determined by Freddie Mac at the time of approval of the request.
 
	  
 	  
 
	  3.
 	  In the event the servicing for any Insured Mortgage sold to Freddie Mac is transferred with the approval of Freddie Mac, notwithstanding any provisions of Forms 981
or any other transfer documentation, Seller shall not be released from its obligations under this Pool Insurance Agreement without the express written consent of Freddie Mac. Freddie Mac shall not provide such consent unless the new Servicer agrees
to assume Seller’s obligations under this Pool Insurance Agreement. Even if such consent is provided, the transferor Seller shall not be released from its obligation to pay applicable surcharges and other supplemental charges in accordance with
paragraph 2 of Section V of this Agreement.
 
			

 Additional Provisions/Restrictions
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 MA02100134 –– Attachment 10
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–– 10/24/2002

	  4.
 	  When submitting a request for a subsequent Transfer of Servicing on Freddie Mac Form 981, Agreement for Subsequent Transfer of Servicing, Seller shall check
“yes” in Part A.6 and enter “pool insurance”.
 
	  
 	  
 
	  Section XIV.
 	  Assignment.
 
	  
 	  
 
	  Freddie Mac may assign any of its obligations under this Pool Insurance Agreement to a third party with the consent of Seller, which consent shall not be withheld
unreasonably. Subject to the consent of Freddie Mac, which consent shall not be unreasonably withheld, Seller may assign its obligations under this Pool Insurance Agreement to the surviving entity of any merger, acquisition or other
reorganization-involving Seller. Seller may not otherwise assign its obligations under this Pool Insurance Agreement except as set forth in this Section XIV or Section XIII, above.
 
	  
 
	  Section XV.
 	  Successors-in-Interest.
 
	  
 	  
 
	 This Pool Insurance Agreement shall be binding upon any and all successors-in-interest to Seller, including, but not limited to, the surviving entity of any merger,
acquisition or other reorganization involving Seller, and any permitted assignee.
 
	  
 
	  Section XVI.
 	  Survival of Representations and Warranties.
 
	  
 	  
 
	  All representations, warranties and covenants made in this Pool Insurance Agreement and in any certificate or other document delivered by Seller pursuant hereto or
in connection herewith shall survive the execution and delivery of this Pool Insurance Agreement by the parties hereto.
 
	  
 
	  Section XVII.
 	  Miscellaneous.
 
	  
 	  
 
	  1.
 	  Amendments. This Pool Insurance Agreement and any provision hereof may not be amended or modified orally, but only by an instrument in writing signed by
Freddie Mac and Seller.
 
	  
 	  
 
	 2.
 	  Remedies. The rights and remedies provided in this Pool Insurance Agreement are cumulative and may be exercised singly or concurrently and are not exclusive
of any rights or remedies provided by law.
 
	  
 	  
 
	  3.
 	  Severability of Provisions. If any provision of this Pool Insurance Agreement or any application thereof shall be invalid or unenforceable, the remainder of
this Pool Insurance Agreement and any other application of such provision shall not be affected thereby.
 
	  
 	  
 
	  4.
 	  Section Headings. Section headings have been inserted for reference only and shall not modify, define, limit or expand the express provisions of this Pool
Insurance Agreement.
 
	  
 	  
 
	  5.
 	  Entire Agreement. This Pool Insurance Agreement together with the relevant provisions of the Master Agreement, the Master Commitment(s) and all other
documents referenced herein, constitutes the entire understanding between the parties hereto relating to the subject matter hereof.
 
			

  Additional Provisions/Restrictions
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 MA02100134 –– Attachment 10
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–– 10/24/2002

	 6.
 	  Governing Law. This Pool Insurance Agreement shall be construed in accordance with and governed by the laws of the United States. Insofar as there may be no applicable
precedent, and insofar as to do so would not frustrate the purposes of the Act or any provision of this Pool Insurance Agreement or the transactions governed thereby, the local laws of the State of New York shall be deemed reflective of the laws of
the United States.
 
	  
 	  
 
	  7.
 	  Counterparts. This Pool Insurance Agreement may be executed in any number of  counterparts, each of which shall be an original, and such counterparts shall together
constitute but one and the same instrument.
 

  IN WITNESS WHEREOF, the parties hereto have caused this Pool Insurance Agreement to be duly executed by their respective authorized
representatives as of the date set forth above.

	  FEDERAL HOME LOAN MORTGAGE CORPORATION
 	  
 	  CRESCENT BANK & TRUST COMPANY DBA CRESCENT
MORTGAGE
 
	  
 	  
 	  10/30/02
 
	  
 	  
 	  
 
	 By:
 	  /s/ DAVID H. STEVENS
 	  
 	  By:
 	  /s/ ROBERT C. KENKNIGHT
 
	  
 	 
 	  
 	  
 	 
 
	  
 	  David H. Stevens
 Senior Vice President
 Single Family Lending
 	  
 	  Name:
 	  Robert C. KenKnight
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  Title:
 	  Executive Vice President
 
	  
 	  
 	  
 	 
 

 Additional Provisions/Restrictions
Pool Insurance/Crescent Bank & Trust Company dba Crescent
Mortgage
 MA02100134 –– Attachment 10
 Page 12 –– 10/24/2002

   ATTACHMENT 11
 SPECIAL UNDERWRITING PROVISIONS

	  1.
 	  Security Style Pair-off
 
	  
 	  
 
	  
 	  With respect to the pair off of any Gold Cash Purchase Contract entered into by Seller pursuant to this Master, Freddie Mac shall calculate the pair-off fee in a
manner that will result in either a pair-off due Freddie Mac from Seller, (as contemplated by Section 8.7 of the Guide), or an amount due Seller from Freddie Mac (“security-style pair-off procedures”). The security-style pair-off
procedures for Gold Cash Purchase Contracts are in lieu of (rather than in addition to) the pair-off procedures set forth in Section 8 7 of the Guide and shall be subject to the following terms and conditions:
 
	  
 
	  
 	  (a)
 	  Notwithstanding the provisions of Section 8.7(1) of the Guide, at any time on or after the commitment date of any Gold Cash Purchase Contract and from time to time
up to and including prior to the Delivery Due Date of such Gold Cash Purchase Contract, Seller may:
 
	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  make a pair-off request by telephoning Freddie Mac’s Commitment Services Department at 703/761-7170. During such telephone conversation, Seller shall notify the commitment
processing operator that the pair-off is subject to the security-style pair-off procedures for Gold Cash Purchase Contracts and shall provide the commitment processing operator with all the information he/she requests, including Seller’s name
and Seller/Servicer number, the caller’s name, telephone number and fax number, and the contract/commitment number that Seller wishes to pair-off; or
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  request to extend the Delivery Due Date. In such case, Seller will be subject to an extension fee as calculated by Freddie Mac;
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  If Seller requests a pair-off, Freddie Mac shall calculate and immediately quote to Seller the amount of the pair-off fee. The pair-off fee quoted by Freddie Mac is
not negotiable. Seller shall immediately accept or reject the pair-off fee quoted;
 
	  
 	  
 	  
 
	  
 	 (c)
 	  If Seller accepts the pair-off fee quoted by Freddie Mac, such pair-off fee shall be included on Seller’s monthly invoice from Freddie Mac and shall be paid in
the same manner as the payment of buyup proceeds and buydown fees as set forth in Section 11.11(e) of the Guide. The pair-off fee calculation shall be rounded up to the nearest dollar;
 
	  
 	  
 	  
 
	  
 	  (d)
 	  If Seller rejects the pair-off fee quoted by Freddie Mac, Seller may make subsequent pair-off requests at any time prior to the Delivery Date of the Gold Cash
Purchase Contract. The amount of any pair-off fee quoted by Freddie Mac may differ from the amount(s) previously quoted by Freddie Mac with respect to the Gold Cash Purchase Contract. If, by the Delivery Due Date, Seller has failed
 

  Special Pricing Provisions
 MA02100134 –– Attachment 11
 Page 1 –– 10/24/2002

	  
 	  
 	  to accept any pair-off fee quoted by Freddie Mac, Seller shall make delivery of the Mortgages pursuant to the Gold Cash Purchase Contract or Freddie Mac shall automatically
execute the pairoff as of the contract expiration date and shall, at its sole discretion, exercise any other remedies for non-delivery as provided in the Guide; and
 
	  
 	  
 	  
 
	  
 	 (e)
 	  From time to time during the term of this Master, Freddie Mac may evaluate its pair-off procedures and may, at its option, modify or discontinue the security-style pair-off
procedures. In that event, Freddie Mac shall provide Seller with written notice that the security-style pair-off procedures will be modified or discontinued. For all Gold Cash Purchase Contracts entered into after the date Seller receives such
notice, the modified security-style pair-off procedures shall apply or, in the event of discontinuation of security-style pair-off procedures, the standard pair-off procedures applicable to Original Cash Purchase Contracts shall apply.

  Special Pricing Provisions
 MA02100134 –– Attachment 11
 Page 2 –– 10/24/2002

   MASTER COMMITMENT

	  Master Agreement #: MA02100134
 Master Commitment #: M02100134
 	  Date Issued: October 24, 2002
 
	  
 	  
 
	  This Master Commitment (“Master Commitment”) M02100134 dated as of October 24, 2002 (“Master Commitment Date”) is by and between the Federal
Home Loan Mortgage Corporation (“Freddie Mac”) and Crescent Bank & Trust Company dba Crescent Mortgage (“Seller”), Seller/Servicer # 106856. This Master Commitment establishes the terms and conditions under which mortgages
may be eligible for purchase by Freddie Mac.
 
	  
 
	 The provisions of Master Agreement #MA02100134 shall apply to and be incorporated into this Master Commitment M02100134.
 

 

	  SELLER INFORMATION
 
	  
 
	  Seller/Servicer Name & Address:
 	  Seller/Servicer Number:
 
	  
 	  
 
	  Crescent Bank & Trust Company dba Crescent
 Mortgage
 115 Perimeter Center Place
 Suite 285
 Atlanta, GA 30346
 	  106856
 
	  
 	  
 
	  
 	  
 
	  Contact Person:
 	  Phone Number: 
 	  Fax Number:
 
	  
 	  
 	  
 
	  Mr. Robert KenKnight
 President
 	  770-392-1611
 	  770-677-7992
 
				

 

	  TERMS OF MASTER COMMITMENT
 
	  
 
	  Contract Commitment Amount: 
 	  Effective Date for Delivery: 
 	  Required Delivery Date:
 
	  
 	  
 	  
 
	  $1 billion
 	  October 1, 2002
 	  December 31, 2002
 
	  
 	  
 	  
 
	  Commitment Type:
 	  Pair-off Amount:
 	  Purchase Tolerance:
 
	  
 	  
 	  
 
	  Mandatory
 	  12.5 basis points
 	  10% overpurchase
 10% underpurchase
 
	  
 	  
 	  
 
	 Deliveries by Affiliated Entities:
 	  Fixed-rate Mortgage Minimum Servicing:
 	  Credit Enhancement Type: 
 
	  
 	  
 	  
 
	  113845
 	  25 basis points
 	  Pool Insured
 
	  
 	  
 	  
 
	  Delivery Fee Exhibit:
 	  
 	  
 
	  
 	  
 	  
 
	  See Delivery Fee Exhibit
 	  
 	  
 
	  
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 Master Commitment #
M02100134
 Page 1 –– 10/24/2002

   REQUIRED SPREADS AND BUYUP MAXIMUMS

	 Product
 	   
 	  Required Spread
 	   
 	  Maximum Buyup
 
	 
 	  
 	 
 	  
 	 
 
	  FIXED-RATE MORTGAGES
 	  
 	  
 	  
 	  
 
	  15-year Fixed-Rate Mortgages
 	  
 	  14.5 basis points
 	   
 	  24.0 basis points
 
	  20-year Fixed-Rate Mortgages
 	  
 	  17.0 basis points
 	   
 	  21.5 basis points
 
	 30-year Fixed-Rate Mortgages
 	  
 	  15.5 basis points
 	   
 	  23.0 basis points
 
	  BALLOON/RESET MORTGAGES
 	  
 	   
 	   
 	   
 
	  5-year Balloon/reset Mortgages
 	  
 	  36.5 basis points
 	   
 	  12.5 basis points
 
	  7-year Balloon/reset Mortgages
 	  
 	  30.0 basis points
 	   
 	  12.5 basis points
 
	  ARM MORTGAGES
 	  
 	   
 	   
 	   
 
	 10/1 Life-capped Treasury-indexed ARMs
 	  
 	  18.0 basis points
 	   
 	  12.5 basis points
 
	  3/1 Rate-capped Treasury-indexed ARMs
 	  
 	  21.0 basis points
 	   
 	  12.5 basis points
 
	  3/3 Rate-capped Treasury-indexed ARMs
 	  
 	  21.0 basis points
 	   
 	  12.5 basis points
 
	  5/1 Rate-capped Treasury-indexed ARMs
 	  
 	  20.0 basis points
 	   
 	  12.5 basis points
 
	  5/5 Rate-capped Treasury-indexed ARMs
 	  
 	  20.0 basis points
 	   
 	  12.5 basis points
 
	 6 month/ 1-Year Treasury-indexed ARMs
 	  
 	  26.0 basis points
 	   
 	  12.5 basis points
 
	  7/1 Life-capped Treasury-indexed ARMs
 	  
 	  18.0 basis points
 	   
 	  12.5 basis points
 
	  Junior Guarantor ARMs
 	  
 	  0.0 basis points
 	   
 	  12.5 basis points
 

  DELIVERY FEE MATRIX EXHIBIT
  CREDIT ENHANCEMENT
  106856_MA02100134-M02100134/ JTDP-5CXP4P/JD
  Crescent Bank & Trust Company dba Crescent
Mortgage
 Master Commitment # M02100134
 Page 2 –– 10/24/2002

   SMC MORTGAGES AND NON-SMC MORTGAGES
 DELIVERED UNDER THE CASH AND GUARANTOR PROGRAM

	  The following provisions shall apply to Secondary Market Mortgages (“SMC Mortgages”), as defined below.
 
	  
 
	 (a)
 	  (i)
 	  SMC Mortgages are 30-year, fixed-rate, whole mortgages that:
 
	  
 	  
 	  
 
	  
 	  (A)
 	  (I)
 	  if primary mortgage insurance is provided by Republic Mortgage Insurance Company, have LTV ratios greater than 80 percent but not greater than 95 percent;
and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (II)
 	  if primary mortgage insurance provided by General Electric Mortgage Insurance Company; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (1)
 	  sold under the Guarantor or MultiLender Swap Programs, have LTV ratios greater than 80 percent but not greater than 97 percent; and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (2)
 	  sold under the Cash Program, have LTV ratios greater than 80 percent but not greater than 100 percent;
 
	  
 	  
 	  
 	  
 
	  
 	  (B)
 	  have mortgage insurance coverage meeting the requirements of Section 27.1(a) of the Guide;
 
	  
 	  
 	  
 
	  
 	  (C)
 	  are originated on Freddie Mac/Fannie Mae Uniform Instruments dated January 2001;
 
	  
 	  
 	  
 
	  
 	  (D)
 	  have an original term of not less than 241 months;
 
	  
 	  
 	  
 
	  
 	 (E)
 	  are Mortgages that are covered by mortgage insurance that is issued by a participating mortgage insurer with which Seller is an eligible lender, as listed on Exhibit
A;
 
	  
 	  
 	  
 
	  
 	  (F)
 	  are Mortgages for which the mortgage insurance premiums are based on standard rate card filings and are not based on special rate plans;
 
	  
 	  
 	  
 
	  
 	  (G)
 	  are not Seasoned Mortgages;
 
	  
 	  
 	  
 
	  
 	  (H)
 	  are not subject to a captive reinsurance structure or other type of risk sharing structure on or after the Delivery Date, except as set forth in Exhibit
A;
 
	  
 	  
 	  
 
	  
 	 (I)
 	  are not Mortgages for which the mortgage insurance premium is included as part of the principal amount of the Mortgage; paid as a single premium; or is in the form
of a standard annual premium structure;
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 SMC Mortgages and NON-SMC Mortgages Delivered Under the Cash and Guarantor
Program
 Master Commitment # M02100134
 Page 1 –– 10/24/2002

	  
 	  (J)
 	  are not any of the following: Mortgages sold subject to recourse or indemnification, Mortgages covered by either a Pool Insurance Agreement or a Tiered Primary
Mortgage Insurance Agreement or Mortgages that are federally insured or guaranteed; and
 
	  
 	  
 	  
 
	  
 	  (K)
 	  are not Mortgages sold to Freddie Mac through Gold Cash Xtra with servicing released.
 
	  
 	  
 	  
 
	  
 	 (ii)
 	  All 30-year fixed-rate Mortgages other than those that meet the requirements of paragraph (a)(i) are non-SMC Mortgages.
 
	  
 	  
 	  
 
	  
 	  (iii)
 	  Eligibility of a Mortgage as an SMC Mortgage will be based on:
 
	  
 	  
 	  
 	  
 
	  
 	  (A)
 	  Seller’s original transmission of data to Freddie Mac;
 
	  
 	  
 	  
 
	  
 	  (B)
 	  as of the Delivery Date, the mortgage insurance being in full force and effect as determined by the mortgage insurance company; and
 
	  
 	  
 	  
 
	  
 	  (C)
 	  Seller providing the Master Commitment number of this Master Commitment at the time Seller enters into a Conversion and at delivery.
 
	  
 	  
 	  
 
	  
 	 Freddie Mac’s determination with respect to the eligibility of a Mortgage as an SMC Mortgage is final.
 
	  
 	  
 
	  (b)
 	  Mortgages sold under the Cash Program, the Guarantor Program or the MultiLender Swap Program are eligible to be SMC Mortgages.
 
	  
 	  
 
	  (c)
 	  The Required Spread stated in the Master Commitment as the “Contract Required Spread” is the weighted average of the Required Spreads stated in the Master
Commitment for SMC Mortgages and non-SMC Mortgages (the “SMC Mortgage Required Spread” and the non-SMC Mortgage Required Spread”, respectively) and is based on Seller’s estimate of the aggregate unpaid principal balance of all
such Mortgages that will be delivered each month. For Mortgages sold under the Guarantor Program, Seller shall pay the Contract Required Spread as adjusted by the provisions stated below. The Required Spreads are stated in Exhibit B.

	  
 	  
 
	  (d)
 	  During the third calendar month following the month in which the Funding Date occurs, Freddie Mac shall perform a reconciliation to determine if there is a
difference between the Contract Required Spread for Guarantor Mortgages and the Actual Required Spreads based on the unpaid principal balance of all Mortgages purchased (the date of such reconciliation, the “Reconciliation Date”). For
purposes of reconciliation under this paragraph, Mortgages delivered under the Cash Program will be deemed to have been delivered under the Guarantor Program. Freddie Mac shall:
 
	  
 	  
 
	  
 	 (i)
 	  determine, as of the Funding Date: the aggregate unpaid principal balance of (A) all SMC Mortgages and (B) all non-SMC Mortgages, and the percentage of the total
aggregate unpaid principal balance each represents;
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 SMC Mortgages and NON-SMC Mortgages Delivered Under the Cash
and Guarantor Program
 Master Commitment # M02100134
 Page 2 –– 10/24/2002

	  
 	  (ii)
 	  determine the “Actual Required Spread” by adding (A) the percentage of SMC Mortgages multiplied by the SMC Mortgage Required Spread and (B) the percentage
of non-SMC Mortgages multiplied by the non-SMC Mortgage Required Spread;
 
	  
 	  
 	  
 
	  
 	  (iii)
 	  compare the Actual Required Spread to the Contract Required Spread and determine the difference between the two (the “Required Spread
Differential”);
 
	  
 	  
 	  
 
	  
 	  (iv)
 	  if the Actual Required Spread is higher than the Contract Required Spread, apply a buydown or if the Actual Required Spread is lower than the Contract Required
Spread, apply a buyup, as follows: Freddie Mac shall:
 
	  
 	  
 	  
 	  
 
	  
 	 (A)
 	  group all Mortgages by note rate range according to the buyup and buydown matrices in effect for the applicable Master Commitment on the Funding Date of the
Mortgages;
 
	  
 	  
 	  
 
	  
 	  (B)
 	  for each note rate range, multiply (I) the product of the Required Spread Differential multiplied by the buydown or buyup ratio, as applicable, by (II) the purchased
aggregate unpaid principal balance of the note rate range;
 
	  
 	  
 	  
 
	  
 	  (C)
 	  determine the total amount of the buydown or buyup, as applicable, by adding the amounts determined under subparagraph (B) immediately above for each note rate range
(such amount, the “Settle-up Amount”);
 
	  
 	  
 	  
 	  
 
	  
 	  (v)
 	  multiply the Settle-up Amount determined under paragraph (iv)(C) immediately above by a multiplier (such multiplier, the “Float Multiplier”) that accounts
for the value of the Settle-up Amount from the Funding Date to the Reconciliation Date.
 
	  
 	  
 
	 (e)
 	  The Settle-up Amount, as adjusted by the Float Multiplier stated in Exhibit B, will be added to or subtracted from, as applicable, amounts due under Section 11.11 of
the Guide and will appear on the monthly billing statement Seller receives under Section 17.2 of the Guide during the fourth month after Funding Date.
 
	  
 	  
 
	  (f)
 	  Seller shall not sell a disproportionately high share of SMC Mortgages relative to the mix of mortgages Seller sells into the secondary mortgage market.

	  
 	  
 
	  (g)
 	  Freddie Mac reserves the right, upon 60 days prior written notice, to amend, supplement, revise or terminate, in whole or in part, Seller’s ability to sell SMC
Mortgages to Freddie Mac.
 
	  
 	  
 
	  (h)
 	  For SMC Mortgages for which the mortgage insurance premium is a monthly deferred premium, Freddie Mac reserves the right to charge a delivery fee of 25 basis points
(0.25 percent) if Freddie Mac reverses its initial decision regarding the eligibility of the Mortgage as an SMC Mortgage.
 

  Crescent Bank & Trust Company dba Crescent
Mortgage
 SMC Mortgages and NON-SMC Mortgages Delivered Under the Cash and Guarantor Program
 Master Commitment # M02100134
 Page 3 –– 10/24/2002

  Exhibit A
  Part I.     Mortgage Insurers
  Seller is an eligible lender with the following participating mortgage insurance companies:
            General Electric
Mortgage Insurance Company (“GEMICO”)
           Republic Mortgage Insurance Company (“RMIC”)
  Part
II.   Risk Sharing Structure
  For Mortgages that are covered by mortgage insurance issued by RMIC or GEMICO a Mortgage placed in or committed to a risk sharing structure of the
particular mortgage insurance company, which by its terms does not exclude removal from the structure, shall be eligible as an SMC Mortgage when the mortgage insurer removes the Mortgage from the risk sharing structure of the mortgage insurance
company.
  Crescent Bank & Trust Company dba Crescent Mortgage
 SMC Mortgages and NON-SMC Mortgages Delivered Under the Cash and Guarantor Program - Exhibit A
 Master Commitment #
M02100134
 Page 1 –– 10/24/2002

   Exhibit B
  Required Spreads and Float Multiplier
  Required Spreads

	  Contract Required Spread
 	  15.5 basis points
 
	  
 	  30-year SMC Mortgages
 	  12.0 basis points
 
	  
 	 30-year non-SMC Mortgages
 	  15.5 basis points
 

  Float Multiplier

	  Float Multiplier
 	  1.015
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 SMC Mortgages and
NON-SMC Mortgages Delivered Under the Cash and Guarantor Program - Exhibit B
 Master Commitment # M02100134
 Page 1 –– 10/24/2002

   Delivery Fee Matrix Exhibit

	  I.
 	  ELIGIBLE MORTGAGE PRODUCTS SUBJECT TO DELIVERY FEES
 
	  
 	  
 
	  
 	  1.
 	  Postsettlement Delivery Fees (“Delivery Fees”) for Mortgages with Special Attributes. This Delivery Fee Matrix sets forth the delivery fee rates
applicable to certain Mortgages that, because of the type of mortgage product, loan purpose, Mortgaged Premises or other attributes (the “special attributes”), are subject to a delivery fee pursuant to the provisions of the Freddie Mac
Single-Family Seller/Servicer Guide (the “Guide”) and/or the provisions of the Master Agreement or Master Commitment. Delivery fees referenced in this exhibit with a symbol in front of the rate indicates standard Guide-level pricing, set
forth in Exhibit 19 of the Guide.
 
	  
 	  
 
	  
 	 2.
 	  Master Agreement/Master Commitment Governing Special Attributes. The provisions of the Guide and/or the provisions of the Master Agreement/Master Commitment that
authorize the sale of Mortgages with special attributes set forth all the eligibility and delivery requirements and other terms and conditions of sale of such Mortgages, as well as any exemptions from payment of a delivery fee. Nothing in this
Matrix shall be deemed to authorize the sale of Mortgages with special attributes that are not specifically authorized by the Guide and/or the Master Agreement/Master Commitment, nor to require the payment of delivery fees for Mortgages with special
attributes if such delivery fee is not specifically required by the Guide and/or the Master Agreement/Master Commitment.
 
	  
 	  
 
	  
 	  3.
 	  Delivery Fee Rates May be Cumulative. A particular Mortgage that has various special attributes may be subject to more than one delivery fee rate; for example, an
ARM secured by a 2-unit property may be subject to a delivery fee pursuant to the provisions in the Guide and/or the Master Agreement/Master Commitment that relate to ARMs with high loan-to-value ratios and the provisions relating to mortgages
secured by 2-unit properties. The delivery fee applicable to such Mortgage will be the sum of the delivery fees required with respect to each of the special attributes of the Mortgage; for example, an ARM with a high loan-to-value ratio, that is
secured by a 2-unit property would be subject to a delivery fee equal to the delivery fee rate specified in the ARM grid below plus the delivery fee rate specified in the number of units grid below.
 
	  
 	  
 

 Crescent Bank & Trust Company dba Crescent Mortgage
 Delivery Fee Matrix Exhibit
 Master
Commitment # M02100134
 Page 1 –– 10/24/2002

	  II.
 	  DELIVERY FEE RATES
 

  INVESTMENT PROPERTY MORTGAGES
Effective with
10/01/2002 Settlements

	  Product
 	   
 	  LTV Ratio
 	   
 	  Delivery Fee
 Rate
 	   
 	  Pool Insurance
 Exclusion
 Add-On
 	   
 	  Total
 Delivery Fee
 Rate
 	   
 
	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 
	 All Eligible Product
 	  
 	  0 to 75%
 	  
 	  
 	  1.50
 	  %
 	  n/a
 	  
 	  
 	  1.50
 	  %
 
	   
 	  
 	  > 75 & < 80%
 	  
 	  
 	  2.00
 	  %
 	  n/a
 	  
 	  
 	  2.00
 	  %
 
	  
 	  
 	 > 80% & < 90%
 	  
 	  
 	  2.50
 	  %
 	  n/a
 	  
 	  
 	  2.50
 	  %
 
														

  Note: For Mortgages sold under GCX, this delivery fee is included in the price obtained through GCX.
  BALLOON MORTGAGES
Effective with 10/01/2002 Settlements

	  Product
 	   
 	  LTV Ratio
 	   
 	  Delivery Fee
 Rate
 	   
 	  Pool Insurance
 Exclusion
 Add-On
 	   
 	  Total
 Delivery Fee
 Rate
 	   
 
	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 
	 All Eligible Product
 	  
 	  > 80 & < 90%
 	  
 	  
 	  0.50
 	  %
 	  n/a
 	  
 	  
 	  0.50
 	  %
 
	   
 	  
 	 > 90% & < 95%
 	  
 	  
 	  1.00
 	  %
 	  n/a
 	  
 	  
 	  1.00
 	  %
 
														

  Note: For Mortgages sold under GCX, this delivery fee is included in the price obtained through GCX.
  ADJUSTABLE RATE MORTGAGES
Effective with 10/01/2002 Settlements

	  Product
 	   
 	  LTV Ratio
 	   
 	  Delivery Fee
 Rate
 	   
 	  Pool Insurance 
 Exclusion
 Add-On
 	   
 	  Total
 Delivery Fee
 Rate
 	  
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 All Elig. Product
 	  
 	  > 90% & < 95%
 	  
 	  
 	  0.25
 	  %
 	  n/a
 	  
 	  
 	  0.25
 	  %
 
												

 Crescent Bank & Trust Company dba Crescent Mortgage
 Delivery Fee Matrix Exhibit
 Master Commitment # M02100134
 Page 2 –– 10/24/2002

   CASH-OUT REFINANCE MORTGAGES
Effective with 10/01/2002 Settlements

	  Product
 	   
 	  LTV Ratio
 	   
 	  Delivery Fee
 Rate
 	   
 	  Pool Insurance 
 Exclusion
 Add-On
 	   
 	  Total
 Delivery Fee
 Rate
 	  
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 All Eligible Product
 	  
 	  > 75% & < 80%
 	  
 	  
 	  0.25
 	  %
 	  n/a
 	  
 	  
 	  0.25
 	  %
 
	  
 	  
 	  > 80% & < 85%
 	  
 	  
 	  0.50
 	  %
 	  n/a
 	  
 	  
 	  0.50
 	  %
 
	  
 	  
 	 > 85% & < 90%
 	  
 	  
 	  0.75
 	  %
 	  n/a
 	  
 	  
 	  0.75
 	  %
 

  Note: For Mortgages sold under GCX, this delivery fee is included in the price
obtained through GCX.
  NUMBER OF UNITS
Effective with 10/01/2002 Settlements

	  Product
 	  
 	  Number of
 Units
 	  
 	  LTV Ratio
 	   
 	  Delivery Fee
 Rate
 	   
 	  Pool Insurance 
 Exclusion
 Add-On
 	   
 	  Total
 Delivery Fee
 Rate
 	  
 
	 
 	  
 	 
 	  
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 All Elig. Product
 	  
 	  
 	  2
 	  
 	  > 90% & < 95%
 	  
 	  
 	  0.50
 	  %
 	  n/a
 	  
 	  
 	  0.50
 	  %
 
															

 Note: For Mortgages sold under GCX, this delivery fee is included in the price obtained through GCX.
  CALIFORNIA CONDOMINIUM UNIT MORTGAGES(1)
Effective with 10/01/2002 Settlements

	  Product
 	   
 	  LTV Ratio
 	   
 	  Delivery Fee
 Rate
 	   
 	  Pool Insurance 
 Exclusion
 Add-On
 	   
 	  Total
 Delivery Fee
 Rate
 	  
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 All Eligible Product
 	  
 	  n/a
 	  
 	  
 	  1.00
 	  %
 	  n/a
 	  
 	  
 	  1.00
 	  %
 
												

  (1) Refer to Chapter 42 of the Guide for specific California condominium units subject to this fee.
  Crescent Bank &
Trust Company dba Crescent Mortgage
 Delivery Fee Matrix Exhibit
 Master Commitment # M02100134
 Page 3 –– 10/24/2002

   MORTGAGES WITH SECONDARY FINANCING(2)
Effective with 10/01/2002 Settlements

	  Product
 	   
 	  Financing
 Structure
 	   
 	  LTV
 	   
 	  TLTV
 	   
 	  Delivery
 Fee Rate
 	   
 	  Pool
 Insurance 
 Exclusion
 Add-On
 	   
 	  Total
 Delivery
 Fee Rate
 	  
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 30-yr FR
 	  
 	  75/20/5
 	  
 	  > 65 and < 75%
 	  
 	  > 90 and < 95%
 	  
 	  
 	  0.25
 	  %
 	  0.10%
 	  
 	  
 	  0.35
 	  %
 
	  
 	  
 	 80/10/10
 	  
 	  > 75 and < 80%
 	  
 	  > 76 and < 90%
 	  
 	  
 	  0.00
 	  %
 	  0.10%
 	  
 	  
 	  0.10
 	  %
 
	  
 	  
 	  80/15/5
 	  
 	  > 75 and < 80%
 	  
 	  > 90 and < 95%
 	  
 	  
 	  0.50
 	  %
 	  0.10%
 	  
 	  
 	  0.60
 	  %
 
	  
 	  
 	 90/5/5
 	  
 	  > 80 and < 90%
 	  
 	  > 81 and < 95%
 	  
 	  
 	  0.75
 	  %
 	  0.10%
 	  
 	  
 	  0.85
 	  %
 
	 ARMs, 5-yr & 7-yr Balloon	 	  75/20/5
 	  
 	  > 65 and < 75%
 	  
 	  > 90 and < 95%
 	  
 	  
 	  0.50
 	  %
 	  n/a
 	  
 	  
 	  0.50
 	  %
 
	 20-yr & 15-yr FR	 	  75/20/5
 	  
 	  > 65 and < 75%
 	  
 	  > 90 and < 95%
 	  
 	  
 	  0.25
 	  %
 	  n/a
 	  
 	  
 	  0.25
 	  %
 
	 20-yr, 15-yr FR & 7-yr Balloon	 	  80/10/10
 	  
 	  > 75 and < 80%
 	  
 	  > 76 and < 90%
 	  
 	  
 	  0.00
 	  %
 	  n/a
 	  
 	  
 	  0.00
 	  %
 
	 ARMs, 7-yr & 5-yr Balloons	 	  80/15/5
 	  
 	  > 75 and < 80%
 	  
 	  > 90 and < 95%
 	  
 	  
 	  0.75
 	  %
 	  n/a
 	  
 	  
 	  0.75
 	  %
 
	 20-yr & 15-yr FR	 	  80/15/5
 	  
 	  > 75 and < 80%
 	  
 	  > 90 and < 95%
 	  
 	  
 	  0.50
 	  %
 	  n/a
 	  
 	  
 	  0.50
 	  %
 
	 All Other Eligible Products	 	  90/5/5
 	  
 	  > 80 and < 90%
 	  
 	  > 81 and < 95%
 	  
 	  
 	  0.75
 	  %
 	  n/a
 	  
 	  
 	  0.75
 	  %
 
	 ARMs & 5-yr Balloon	 	  80/10/10
 	  
 	  > 75 and < 80%
 	  
 	  > 76 and < 90%
 	  
 	  
 	  0.50
 	  %
 	  n/a
 	  
 	  
 	  0.50
 	  %
 

 

	  (2)
 	  A secondary financing fee will not be assessed on a Mortgage with a HELOC balance of zero at time of loan closing or on a Mortgage with an Affordable Second, meeting the
requirement of Section 25.1 (g) of the Guide. Secondary financing fees apply to both purchase and refinance transactions.
 
	  Note: For Mortgages sold under GCX, this delivery fee is included in the price obtained through GCX.
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 Delivery Fee Matrix Exhibit
 Master Commitment # M02100134
 Page 4 –– 10/24/2002

   ALT 97 MORTGAGES and AFFORDABLE GOLD ALT 97 MORTGAGES
Effective with 10/01/2002 Settlements

	 Product	   
 	  LTV Ratio
 	   
 	  Required
 MI
 Coverage
 	   
 	  Delivery Fee
 Rate
 	   
 	  Pool
 Insurance
 Exclusion
 Add-On
 	   
 	  Total
 Delivery Fee Rate
 	  
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 All Elig. Product	 	  > 90% & < 97%
 	  
 	  
 	  35
 	  %
 	  
 	  0.75
 	  %
 	  n/a
 	  
 	  
 	  0.75
 	  %
 
															

 Note: For Mortgages sold under GCX, this delivery fee is included in the price obtained through GCX.
  FREDDIE MAC 100 MORTGAGES
Effective with 10/01/2002 Settlements

	 Product	   
 	  LTV Ratio
 	   
 	  Required
 MI
 Coverage
 	   
 	  Delivery Fee
 Rate
 	   
 	  Pool
 Insurance
 Exclusion
 Add-On
 	   
 	  Total
 Delivery Fee Rate
 	  
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 30- & 20- Yr FR	 	  > 97% & < 100%
 	  
 	  
 	  40
 	  %
 	  
 	  1.25
 	  %
 	  n/a
 	  
 	  
 	  1.25
 	  %
 
	 15-Yr FR	 	  > 97% & < 100%
 	  
 	  
 	  40
 	  %
 	  
 	  0.75
 	  %
 	  n/a
 	  
 	  
 	  0.75
 	  %
 

 Crescent Bank & Trust Company dba Crescent Mortgage
 Delivery Fee Matrix
Exhibit
 Master Commitment # M02100134
 Page 5 –– 10/24/2002

   A-MINUS MORTGAGES (3)
Effective with 10/01/2002 Settlements

	 Product 	   
 	  LTV
 Ratio
 	   
 	  Credit Score(4)
 	   
 	  Delivery
 Fee Rate 
 	   
 	  Pool
 Insurance
 Exclusion
 Add-On
 	   
 	  Total
 Delivery Fee
 Rate
 	   
 
	 
 	 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 
	 30-yr fixed rate Product 	  	  < 75%
 	  
 	  > 660 & < 900
 	  
 	  
 	  1.25
 	  %
 	  
 	  n/a
 	  
 	  
 	  1.25
 	  %
 
	  	  	   
 	  
 	  > 600 & < 659
 	  
 	  
 	  2.25
 	  %
 	  
 	  n/a
 	  
 	  
 	  2.25
 	  %
 
	  	  	   
 	  
 	 < 600
 	  
 	  
 	  2.75
 	  %
 	  
 	  n/a
 	  
 	  
 	  2.75
 	  %
 
	  	  	   
 	  
 	  not reported
 	  
 	  
 	  2.75
 	  %
 	  
 	  n/a
 	  
 	  
 	  2.75
 	  %
 
	  	  	 > 75%
 	  
 	  > 660 & < 900
 	  
 	  
 	  1.50
 	  %
 	  
 	  0.10%
 	  
 	  
 	  1.60
 	  %
 
	  	  	   
 	  
 	  > 600 & < 659
 	  
 	  
 	  2.75
 	  %
 	  
 	  0.10%
 	  
 	  
 	  2.85
 	  %
 
	  	  	   
 	  
 	 < 600
 	  
 	  
 	  3.50
 	  %
 	  
 	  0.10%
 	  
 	  
 	  3.60
 	  %
 
	  	  	   
 	  
 	  not reported
 	  
 	  
 	  3.50
 	  %
 	  
 	  0.10%
 	  
 	  
 	  3.60
 	  %
 
	 All Eligible Product 	  	  < 75%
 	  
 	  > 660 & < 900
 	  
 	  
 	  1.25
 	  %
 	  
 	  n/a
 	  
 	  
 	  1.25
 	  %
 
	  	  	   
 	  
 	  > 600 & < 659
 	  
 	  
 	  2.25
 	  %
 	  
 	  n/a
 	  
 	  
 	  2.25
 	  %
 
	  	  	   
 	  
 	 < 600
 	  
 	  
 	  2.75
 	  %
 	  
 	  n/a
 	  
 	  
 	  2.75
 	  %
 
	  	  	   
 	  
 	  not reported
 	  
 	  
 	  2.75
 	  %
 	  
 	  n/a
 	  
 	  
 	  2.75
 	  %
 
	  	  	 > 75%
 	  
 	  > 660 & < 900
 	  
 	  
 	  1.50
 	  %
 	  
 	  n/a
 	  
 	  
 	  1.50
 	  %
 
	  	  	   
 	  
 	  > 600 & < 659
 	  
 	  
 	  2.75
 	  %
 	  
 	  n/a
 	  
 	  
 	  2.75
 	  %
 
	  	  	   
 	  
 	 < 600
 	  
 	  
 	  3.50
 	  %
 	  
 	  n/a
 	  
 	  
 	  3.50
 	  %
 
	  	  	   
 	  
 	  not reported
 	  
 	  
 	  3.50
 	  %
 	  
 	  n/a
 	  
 	  
 	  3.50
 	  %
 
																	

 

	  (3)
 	  A Caution Mortgage that receives an A-minus eligible feedback message will not be assessed an A-minus Mortgage delivery fee if it is delivered as an Affordable Merit Rate
Mortgage.
 
	  (4)
 	  The delivery fee rate is based on the Credit Score as determined using the Selected Score Information section of the Loan Prospector (“LP”) or Loan Prospector on the
Internet (“LPI”) Feedback Certificate. The Key Number must be delivered for each Mortgage evaluated by LP or LPI, or the Mortgage may be priced as if the Credit Score was “Not Reported”.
 
	  Note: For Mortgages sold under GCX, this delivery fee is included in the price obtained through GCX.
 

  Crescent Bank & Trust Company dba Crescent Mortgage
 Delivery Fee Matrix Exhibit
 Master Commitment # M02100134
 Page 6 –– 10/24/2002

   FLEXIBLE MORTGAGE INSURANCE (MI) OPTIONS
Effective with 10/01/2002 Settlements

	 MI
 Option 	   
 	  Product
 	   
 	  LTV
 	   
 	  Delivery
 Fee Rate
 	   
 	  Pool
 Insurance 
 Exclusion
 Add-On
 	   
 	  Total
 Delivery
 Fee Rate
 	  
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 Reduced MI 	  	  >20-Yr FR
 Fully- Amortizing
 	  
 	  > 85 & < 90%
 	  
 	  
 	  0.00
 	  %
 	  n/a
 	  
 	  
 	  0.00
 	  %
 
	  	  	 >20-Yr FR
 Fully- Amortizing
 	  
 	  > 90 & < 95%
 	  
 	  
 	  0.00
 	  %
 	  n/a
 	  
 	  
 	  0.00
 	  %
 
	 Custom MI 	  	  30-Yr FR
 	  
 	  > 85 & < 90%
 	  
 	  
 	  0.375
 	  %
 	  0.10%
 	  
 	  
 	  0.475
 	  %
 
	  	  	   
 	  
 	 > 90 & < 95%
 	  
 	  
 	  0.75
 	  %
 	  0.10%
 	  
 	  
 	  0.85
 	  %
 
	  	  	   
 	  
 	  > 95 & < 97%
 	  
 	  
 	  1.50
 	  %
 	  0.10%
 	  
 	  
 	  1.60
 	  %
 
	  	  	  15-&20-Yr FR
 	  
 	  > 90 & < 95%
 	  
 	  
 	  0.75
 	  %
 	  n/a
 	  
 	  
 	  0.75
 	  %
 
	  	  	   
 	  
 	 > 95 & < 97%
 	  
 	  
 	  1.50
 	  %
 	  n/a
 	  
 	  
 	  1.50
 	  %
 
	  	  	  5- & 7-Yr Balloon
 	  
 	  > 85 & < 90%
 	  
 	  
 	  0.50
 	  %
 	  n/a
 	  
 	  
 	  0.50
 	  %
 
	  	  	   
 	  
 	  > 90 & < 95%
 	  
 	  
 	  0.75
 	  %
 	  n/a
 	  
 	  
 	  0.75
 	  %
 
	  	  	 ARM
 	  
 	  > 85 & < 90%
 	  
 	  
 	  0.50
 	  %
 	  n/a
 	  
 	  
 	  0.50
 	  %
 
	  	  	   
 	  
 	  > 90 & < 95%
 	  
 	  
 	  0.75
 	  %
 	  n/a
 	  
 	  
 	  0.75
 	  %
 
	  	  	  Affordable Gold 97
 	  
 	  > 95 & < 97%
 	  
 	  
 	  1.50
 	  %
 	  n/a
 	  
 	  
 	  1.50
 	  %
 

 STREAMLINED PURCHASE MORTGAGES
Effective with 10/01/2002
Settlements

	 Offering 	   
 	  Product
 	   
 	  LTV Ratio
 	   
 	  Delivery
 Fee Rate
 	   
 	  Pool
 Insurance 
 Exclusion
 Add-On
 	   
 	  Total
 Delivery
 Fee Rate
 	   
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 
	 Offering 400 	  	  All Eligible
 Product
 	  
 	  n/a
 	  
 	  
 	  0.375
 	  %
 	  n/a
 	  
 	  
 	  0.375
 	  %
 
	 Offering 401 	  	  All Eligible
 Product
 	  
 	  n/a
 	  
 	  
 	  0.00
 	  %
 	  n/a
 	  
 	  
 	  0.00
 	  %
 

 Note: For Mortgages sold under GCX, this delivery fee is included in the price obtained through
GCX.
  Crescent Bank & Trust Company dba Crescent Mortgage
 Delivery Fee Matrix Exhibit
 Master Commitment # M02100134
 Page 7 -- 10/24/2002

   ALTERNATIVE STATED INCOME MORTGAGES
Effective with 10/01/2002 Settlements

	 Product 	   
 	  LTV Ratio
 	   
 	  Delivery
 Fee Rate
 	   
 	  Pool
 Insurance 
 Exclusion
 Add-On
 	   
 	  Total
 Delivery
 Fee Rate
 	   
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 
	 All Eligible Product 	  	  < 75%
 	  
 	  
 	  0.75
 	  %
 	  n/a
 	  
 	  
 	  0.75
 	  %
 
												

  MORTGAGES ORIGINATED WITH NO-APPRAISAL MAF
Effective with 10/01/2002 Settlements

	 Product 	   
 	  TLTV Ratio
 	   
 	  No-Appraisal 
 MAF
 	   
 	  Delivery Fee
 	   
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 
	 All Eligible Product 	  	  < 80%
 	  
 	  Level 1
 	  
 	  $
 	  50.00
 	  
 
	  	  	  < 80%
 	  
 	  Level 2
 	  
 	  $
 	  200.00
 	  
 

 STREAMLINED PROJECT REVIEW MORTGAGES
Effective
with 10/01/2002 Settlements

	 Product 	   
 	  LTV Ratio
 	   
 	  Delivery Fee Rate
 	   
 	  Total
 Delivery Fee Rate
 	   
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 
	 All Eligible Product Primary Residence 	  	  > 75%
 	  
 	  $
 	  200.00
 per Mortgage
 	  
 	  $
 	  200.00
 per Mortgage
 	  
 
	 All Eligible Product Second Homes 	  	  All
 	  
 	  $
 	  200.00
 per Mortgage
 	  
 	  $
 	  200.00
 per Mortgage
 	  
 

  In connection with the delivery of each mortgage, Seller must enter “420”, special
characteristics code on the Form 11 or Form 13SF.

	  III.
 	  DELIVERY FEE PROVISIONS
 
	  
 	  
 
	  
 	  1.
 	  The delivery fees referenced above may incorporate delivery fees referenced in the Guide and/or the Master Agreement/Master Commitment.
 
	  
 	  
 
	  
 	  2.
 	  Delivery fees are paid in accordance with the delivery and funding fee provisions outlined in Section 17.2 of the Guide. However, for Mortgages sold under Gold Cash Xtra®
(“GCX”) certain delivery fees are included in the price obtained through GCX. Those delivery fees included in the price obtained through GCX are noted above.
 

 Crescent
Bank & Trust Company dba Crescent Mortgage
 Delivery Fee Matrix Exhibit
 Master Commitment # M02100134
 Page 8 –– 10/24/2002Master Agreement, Fannie Mae

  Exhibit 10.24
  CONFIDENTIAL
  MASTER AGREEMENT MA02373.2
  This Master Agreement between Fannie Mae and Crescent Bank and Trust Company (“Lender”) governs the sale by Lender, and
the purchase by Fannie Mae, of eligible residential mortgage loans (the “Mortgages”). This Master Agreement includes all of the terms and conditions described in all of the exhibits, attachments, conversions, commitments and MBS Pool
Purchase Contracts (“MBS Contracts”) attached or entered into as a part of this Master Agreement. Additionally, the “Master Agreement Terms and Conditions” section of Fannie Mae’s Selling Guide (the “Selling
Guide”), which is incorporated into this Agreement by this reference, outlines in more detail the general terms and conditions of the Master Agreement and MBS Contracts and contains a complete description of the terms “Master
Conversions” and “MBS Pricing Confirmations,” as well as other related terms and instructions. The execution of this Master Agreement requires compliance with all provisions and sections of this Master Agreement, including all Master
Conversions, MBS Contracts, cash commitments, exhibits and attachments to this Master Agreement.
  To sell Mortgages under this Master Agreement, Lender and Fannie Mae must also enter into one or
more Master Conversions. In addition, depending on whether Lender will be delivering Mortgages under one of Fannie Mae’s cash purchase programs (Negotiated or Standard) or under Fannie Mae’s MBS program, Lender and Fannie Mae will also
need to enter into the appropriate cash commitments or MBS Pricing Confirmations for MBS Contracts.
  Lender and Fannie Mae acknowledge that the Estimated Dollar Amount (as set forth on Exhibit 1)
is an estimate by the parties, as of the date of execution hereof, of anticipated Mortgage deliveries and such amount may change over the term of this Master Agreement. Notwithstanding the fact that a Maximum Amount of Pool Purchase Transactions for
Delivery is set forth in each MBS Contract, the total amount to be sold shall be governed by the applicable Master Conversions. The sum of the actual Mandatory Delivery Amounts (whether one or more), as reflected in the Master Conversions, will
reflect the actual volume of Mortgage deliveries agreed to by the parties and will supersede any Estimated Dollar Amount set forth in Exhibit 1.
 For this Master Agreement to become effective,
Lender must execute and return to Fannie Mae a duplicate original within ten business days of Lender’s receipt of this Master Agreement. Otherwise. Fannie Mae may, at its option, declare this Master Agreement null and void.
  Lender hereby confirms, by checking the appropriate section below, that:

	  o
 	  It is not a federally-insured institution or an affiliate or subsidiary of a federally-insured institution.
 
	  
 	  
 
	  o
 	  It is a federally-insured institution or an affiliate or subsidiary of a federally-insured institution. If Lender has checked this section, then Lender agrees to the
representations and warranties described in the “Master Agreement Terms and Conditions” section of the Selling Guide.
 

  Master Agreement MA02373.2

MA - 1
 Amendment 20

   Sincerely,

	  FANNIE MAE
 
	  
 
	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	 David A. Bowles
 	  
 
	  
 	  Customer Account Manager
 	  
 
	  
 
	  Agreed, acknowledged, and accepted.
 
	  
 
	  CRESCENT BANK AND TRUST COMPANY
 
	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	   
 	 
 	  
 
	  Name:
 	  PARTHIV J. DAVE
 	  
 
	 Title:
 	  V.P.
 	  
 
	  Date:
 	  12-11-02
 	  
 
	  
 
	  Agreed, acknowledged, and accepted.
 
	  
 
	  CRESCENT MORTGAGE SERVICES
 
	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name:
 	  PARTHIV J. DAVE
 	  
 
	  Title:
 	  V.P.
 	  
 
	 Date:
 	  12-11-02
 	  
 
				

  Master Agreement MA02373.2
 MA - 2
 Amendment 20

   EXHIBIT 1
  TO MASTER AGREEMENT MA02373.2

	  Lender Name
 	  Crescent Bank and Trust Company
 
	  
 	  
 
	  Lender Number
 	  23227-000-4
 
	  
 	  
 
	  Delivery Term:
 	  Second
 
	  
 	  
 
	  Effective Date of Delivery Term:
 	  January 1, 2003
 
	  
 	  
 
	  Expiration Date of Delivery Term:
 	  June 30, 2003
 
	  
 	  
 
	 Estimated Dollar Volume for Delivery Term:
 	  $175,000,000.00
 (eligible for delivery only upon incremental conversions to Mandatory Delivery Amounts under one or more Master Conversions)

  Master Agreement MA02373.2
 MA - 3
 Amendment 20

   MASTER AGREEMENT
  Master Conversion for Crescent Bank and Trust Company

MA02373.2-01
  Upon entering into this Master Conversion, Lender is obligated to sell to Fannie Mae, and Fannie Mae is obligated to buy from Lender, Mortgages in the aggregate unpaid principal
amount of the Mandatory Delivery Amount stated below under any of the following programs: Fannie Mae’s MBS program, Negotiated Cash Transactions or Standard Cash Transactions. Mortgages must be sold during the period commencing with the
Effective Date set forth below and ending with the Expiration Date set forth below (the “Conversion Period”) and must meet all requirements set forth in the Master Agreement, as well as those set forth in the applicable MBS Contracts (as
described below). There must be a valid MBS Pricing Confirmation for each MBS Contract below prior to Lender’s sale of any Mortgages under such MBS Contract.
  Lender shall be deemed to have
accepted the terms of this Master Conversion and all applicable MBS Pricing Confirmations either (i) upon execution of the Master Agreement or Master Agreement amendment to which this Master Conversion is attached, or (ii) if this Master Conversion
is not attached to a Master Agreement amendment, then upon delivery of any Mortgages under the MBS Contracts during the current Conversion Period.

	  Master Agreement:
 	  MA02373.2
 
	  
 	  
 
	 Mandatory Delivery Amount:
 	  $175,000,000.00, plus or minus 5%
 
	  
 	  
 
	  Effective Date:
 	  January 1, 2003
 
	  
 	  
 
	  Expiration Date:
 	  June 30, 2003
 
	  
 	  
 
	  MBS Contracts:
 	  A06303, A06304, A06305, A06808, A06809, A06810, A06811
 

  Master Agreement
MA02373.2
 MA - 4
 Amendment 20

   VARIANCES
  This Variances Attachment is attached to and made a part of the Master Agreement. Under this Master
Agreement, Lender may sell Mortgages originated in accordance with the following variances. Unless otherwise specified, the following variances apply only to conventional, first lien Mortgages.

	  1.
 	  With respect to any Variances in this “Variances” section that incorporate a table to describe eligibility of Mortgages delivered under that Variance, the
following definitions and restrictions apply to all such Variances.
 
	  
 	  
 
	  
 	 •
 	  Mortgage products listed under “Eligible Products/Programs” are the only eligible mortgage products and/or programs. A reference to “All Standard per Selling
Guide” means only standard mortgage products (e.g., FRM, ARM, 7-year balloon), and does not include any specially negotiated products, community or affordable lending products, or products requiring special lender approval.
 
	  
 	  •
 	  The loan purpose(s) listed under “Loan Purpose” (Purchase Money Mortgage, Cashout Refinance, Limited Cashout Refinance) is/are the only eligible loan purpose for
Mortgages delivered under the Variance.
 
	  
 	  •
 	  The property type(s) and number of units listed under “Dwelling Type” (e.g. Detached, Condo, PUD) and “Units” (e.g. 1, 2, 3, 4) is/are the only eligible
property types and number of units for Mortgages delivered under the Variance.
 
	  
 	  •
 	  The occupancy status listed under “Occupancy Status” (e.g. Owner, 2nd Home, or Investor) is/are the only eligible occupancy status for Mortgages delivered under the
Variance. “Owner” means owner-occupied primary residence, “2nd Home” means second home, and “Investor” means an investment property.
 
	  
 	  •
 	  The LTV or CLTV listed in the “LTV” or “CLTV” column represent the maximum possible LTV or CLTV for the Mortgages delivered under the Variance. A lower
maximum LTV or CLTV may apply depending on the loan products (e.g. ARM or balloon), if “All Standard per Selling Guide” has been selected under “Eligible Products/Programs.”
 
	  
 	  
 	  
 
	 2.
 	  In the event that a Variance table references “Coop” as an eligible “Dwelling Type,” Lender must be approved for delivery of cooperative share
loans to Fannie Mae, per the Selling Guide.
 
	  
 	  
 
	  3.
 	  Any special feature code designated for the Variance is in addition to any other special feature codes that may be required.
 
	  
 	  
 
	  4.
 	  If any column in the Variance table is blank, Lender must refer (a) first to the terms and conditions of that Variance, and (b) then to the Selling Guide or the
Guide to Underwriting with Desktop Underwriter®, as applicable, both as amended from time to time.
 

  Master Agreement MA02373.2
 VAR Preamble -
1

   VARIANCES
 TABLE OF CONTENTS

	  VAR 1
 	  Bulk Alt A Product FRM
 
	  VAR 2
 	  Desktop Underwriter ‘Expanded Approval with Timely Payment Rewards SM’ Initiative
 
	 VAR 3
 	  Relocation Mortgages Guidelines/Trailing Secondary Wage Earner Income
 
	  VAR 4
 	  Other Automated Underwriting Systems
 

  Master Agreement MA02373.2
 VAR/TOC -
1

   VAR 1          
Bulk ALT A Product

	  1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 
	  
 	  (a)
 	  “Stated Income,” (SFC “442”) which is defined as:  the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a verbal
Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so therefore no
debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform Residential Loan
Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application (Form 1003)
and Lender must verify reported income and assets.
 
	  
 	  
 	  
 
	  
 	  Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation
Alt A product.
 
	  
 	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 
	 3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 
	  5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of
warranty by Lender, as provided in the Selling Guide.
 

 Master Agreement MA02373.2
 VAR 1 - 1

	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR
CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 
	  
 	  (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 	  
 
	  8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.  With respect to each such delivery, a Bulk Mortgage
Delivery Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all
purposes.
 

  Master Agreement MA02373.2
 VAR 1 - 2

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
 Crescent Mortgage’s Credit Plus Program
 No Income - No Ratios/No Asset Verifications

	  
 	 No Income 
 No Ratios / No Asset Verification
 
	 Program Type
 	 PMM, R/T Refi, COR
 
	 Product Type
 	 FRM only
 
	 Amortization Terms
 	 15- and 30- year
 
	 Eligible Units
 	 1 -2 unit properties
 
	 Eligible Properties
 	 Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible.  NO mobile homes or manufactured housing units. Also, no excess acreage - value not to
exceed 33% of total.
 
	 Geographic Limitations
 	 None
 
	 Occupancy Status
 	 Owner Occupied and 2nd Homes
 
	 Borrower Eligibility
 	 Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between jobs,
relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	 Appraisal
 	 New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	 Mortgage Insurance
 	 Standard mortgage insurance required.
 
	 Maximum LTVs and Credit Scores:
 	  
 
	   - Owner Occupied:
 	 1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 
	  
 	 1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 
	  
 	 2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 
	  
 	 2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 
	   - 2nd Homes
 	 1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65% with
a credit score of 680.
 
	 Secondary Financing
 	 No Subordinate financing allowed on new loan.
 
	 Credit Report
 	 Three In-file merged credit report.
 
	 Qualifying Debt Ratios:
 	 Ratios are not considered.
 
	 Reserves:
 	 No assets are verified; reserves are not required.
 

 Master Agreement MA02373.2
 VAR 1 -
3

	 Credit Criteria:
 	  
 
	    Trade Lines
 	 Three (3) rated trades
 
	    Credit History
 	 24 Months
 
	    Credit Explanations
 	 Not stated
 
	 Mortgage/Revolving/
 	 No Foreclosures.
 
	      Installment
 	 No Bankruptcies.
 
	  
 	 No 30-day lates on any mortgages in the past 24 months.
 
	 Credit Report Letter of Explanation
 	 Not required as this product is credit score driven.
 
	 Sale Proceeds
 	 Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	 Down Payment:
 	 Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	 Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	 Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	 Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	 Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	 Seller contributions
 	 Per Fannie Guides.
 
	 Gift Funds
 	 No gifts allowed.
 
	 Verification of mortgage or rental history
 	 Required if mortgage history not on credit report. Rental history verification not required.
 
	 Salaried/Wage Earner Employment Verification
 	 No verification. Stated income/employment only.
 
	 Self-Employed Income/Employment Verification
 	 No verification. Stated income only. No 4506 required.
 
	 Self-employed Profit & Loss/
Balance Sheet
 	 Income verification is not required. No 4506 required.
 
	 Other Income: Retirement, SS, alimony, child support, etc.
 	 No verification. Stated income only.
 
	  
 	  
 
	  
 	 No Income
 No Ratios / No Asset Verification
 
	 Salary or hourly wage earnings and overtime and bonus income
 	 No verification. Stated income only.
 
	 Commission income and independent contractor
 	 No verification. Stated income only.
 
			

 Master Agreement MA02373.2
 VAR 1 - 4

   VAR 2          
Desktop Underwriter ‘Expanded Approval with Timely Payment RewardsSM’ Initiative September 2002

	  The following terms and conditions apply only to Mortgages originated and delivered to Fannie Mae pursuant to the Desktop Underwriter® “Expanded Approval
with Timely Payment RewardsSM” Initiative (hereinafter referred to as “the Initiative”). Mortgages originated under the Initiative must have been submitted to the Expanded Approval version of Desktop Underwriter for
analysis.
 
	  
 	  
 	  
 	  
 
	  Lender may deliver Mortgages originated under the Initiative in accordance with the following:
 
	  
 	  
 	  
 	  
 
	  1.
 	  Eligibility.
 
	  
 	  
 	  
 
	  
 	  (a)
 	  General.
 
	  
 	  
 	  
 
	  
 	  
 	 Each Mortgage must comply with the requirements of the “Expanded Approval with Timely Payment Rewards Lender Guide” (the “EA Lender Guide”), as
may be amended from time to time, as supplemented by the following specific provisions below. A breach of any of such eligibility criteria shall be deemed to be a breach of warranty by Lender, as provided in the Selling Guide. The EA Lender Guide
may be accessed through eFannieMae.com, under “Mortgage Product Information.”
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Recommendation Levels.
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  Mortgages receiving an “EA-I/Eligible,” “EA-II/Eligible,” or “EA-III/Eligible” recommendation in the Desktop Underwriter Underwriting
Findings Report are eligible for delivery in accordance with the terms hereof.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  Any Mortgage receiving a recommendation of “Refer W Caution/IV” is ineligible for delivery to Fannie Mae.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  Generally, Mortgages that receive an “EA/Ineligible” recommendation are not deliverable to Fannie Mae. If any such Mortgage meets the requirements of an
applicable Product Variance or a Community Lending Product Variance as described in Paragraph 4(b) below, or a negotiated underwriting variance in the Master Agreement (“Underwriting Variance”) providing for specific eligibility
requirements, as described in Paragraph 4(a) below, then such Mortgages are only deliverable in accordance with the provisions of Paragraph 4 below.
 
	  
 	  
 	  
 	  
 
	  
 	  (c)
 	  Product Eligibility.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  See the EA Lender Guide for all product eligibility information.
 
	  
 	  
 	  
 
	  
 	 (d)
 	  Definitions.
 
	  
 	  
 	  
 
	  
 	  
 	  As used herein, these terms have the following meanings:
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  “EA-I Mortgages” means Mortgages receiving a recommendation of “EA-I/Eligible” or “EA-I/Ineligible,” only if an Underwriting Variance
per Paragraph 4(a) is applicable.
 
							

  Master Agreement MA02373.2
 VAR 2 - 1
 Amendment 20

	  
 	  
 	  (ii)
 	  “EA-II Mortgages” means Mortgages receiving a recommendation of “EA-II/Eligible” or “EA-II/Ineligible,” only if an Underwriting Variance per
Paragraph 4(a) is applicable.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (iii)
 	  “EA-III Mortgages” means Mortgages receiving a recommendation of “EA-III/Eligible” or “EA-III/Ineligible,” only if an Underwriting Variance per
Paragraph 4(a) is applicable.
 
	  
 	  
 	  
 	  
 
	  2.
 	  Limited Waiver of Warranties.
 
	  
 	  
 	  
 	  
 
	  
 	  Mortgages receiving the “EA-I/Eligible,” “EA-II/Eligible,” and “EA-III/Eligible” recommendation in the Desktop Underwriter
Underwriting Findings Report are eligible for the “Limited Waiver of Representations and Warranties,” as set forth in the Selling Guide, Part I, Chapter 2, Section 202.02, provided that each such Mortgage:
 
	  
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  is subject to all applicable requirements, restrictions, stipulations, and limitations specified in this Master Agreement, the applicable Pool Purchase Contract and
the Guide to Underwriting with Desktop Underwriter, as amended from time to time (the “Desktop Underwriter Guide”), as modified by this Agreement, which may include the purchase price or guaranty fee, any price adjustment, or similar
charge and the aggregate outstanding principal amount; and
 
	  
 	  
 	  
 	  
 
	  
 	 (b)
 	  meets all applicable product eligibility requirements.
 
	  
 	  
 	  
 	  
 
	  3.
 	  Timely Payment Rewards Feature.
 
	  
 	  
 	  
 	  
 
	  
 	  Only fixed rate, fully amortizing, level payment EA-II Mortgages and EA-III Mortgages may be originated with the Timely Payment Rewards feature, which includes an
interest rate reduction provision, subject to the following:
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  Such Mortgages must be delivered to Fannie Mae for cash.
 
	  
 	  
 	  
 	  
 
	  
 	 (b)
 	  The Mortgage must meet all applicable product eligibility requirements.
 
	  
 	  
 	  
 	  
 
	  
 	  (c)
 	  The Mortgage must be originated with the Timely Payment Rewards Addendum to the Note (Fannie Mae Form 1410) (the “Addendum”) and the Timely
Payment Rewards Rider to the Security Instrument (Fannie Mae Form 1412) (the “Rider”).
 
	  
 	  
 	  
 	  
 
	  
 	  (d)
 	  The mortgagor must meet the eligibility criteria set forth in the Addendum and the Rider. The Mortgage servicer will be responsible for complying with the provisions
of the EA Lender Guide relating to interest rate reduction, including evaluating the mortgagor’s payment history on the second, third and/or fourth anniversary date of the scheduled due date of the first full installment payment due under the
Note (“Anniversary Date”) to determine if the mortgagor has met the eligibility criteria for the interest rate reduction.
 
	  
 	  
 	  
 	  
 
	  4.
 	  Mortgages with Product Variances or Underwriting Variances.
 
	  
 	  
 	  
 	  
 
	  
 	 (a)
 	  Mortgages that receive an “EA/Ineligible” recommendation that were originated with Underwriting Variances are only deliverable to Fannie Mae with Fannie
Mae’s prior approval. Fannie Mae must approve combining the Underwriting Variance with the
 

  Master Agreement MA02373.2
 VAR 2 - 2
 Amendment
20

	  
 	  
 	  Initiative, even if the Underwriting Variance has been approved under this Master Agreement for non-Initiative mortgages. The specific reason(s) for ineligibility
must be permitted under the terms of the Underwriting Variance. With Fannie Mae’s prior approval, Lender may deliver such Mortgages, provided that such Mortgages:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  are not eligible for the Limited Waiver of Warranties;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  must meet all of the terms of the Initiative specified herein and the terms applicable to the Underwriting Variance;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  must be identified with the applicable special feature code for the Initiative in addition to any special feature codes that may be applicable under the terms of the
Underwriting Variance; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iv)
 	  are subject to the applicable loan level price adjustments for the Initiative, in addition to any loan level price adjustments that may be applicable under the terms of
the Underwriting Variance.
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  Certain Mortgages receiving any of the three levels of “EA/Eligible” recommendations or an “EA/Ineligible” recommendation in Desktop Underwriter
may also meet the requirements of a product, initiative or pilot that is available to Lender under the terms of this Master Agreement (a “Product Variance”). If the Product Variance is a Community Lending or affordable housing initiative
or pilot (a “Community Lending Product Variance”), then Lender may disregard the “EA” recommendation and underwrite such Mortgage outside of Desktop Underwriter in accordance with the provisions of the Community Lending Product
Variance, provided that such Mortgages:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  are not eligible for the Limited Waiver of Warranties;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  must meet all of the terms of the Community Lending Product Variance;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  must be identified only with the special feature codes applicable to the Community Lending Product Variance (the special feature codes applicable to the Initiative shall
not apply to such Mortgages); and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iv)
 	  are subject to the pricing and any loan level price adjustments applicable to the Community Lending Product Variance (the loan level price adjustments applicable to the
Initiative shall not apply to such Mortgages).
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 Mortgages receiving any of the three levels of “EA/Eligible” recommendations or an “EA/Ineligible” recommendation in Desktop Underwriter that meet
the requirements of a Product Variance that is available to Lender under the terms of this Master Agreement, but that is not a Community Lending Product Variance, may be delivered to Fannie Mae only with Fannie Mae’s prior
approval.
 
	  
 	  
 	  
 	  
 
	  
 	  (c)
 	  Any variance for the waiver of any of Fannie Mae’s standard loan level price adjustments shall not apply to Mortgages originated under the
Initiative.
 

  Master Agreement MA02373.2
 VAR 2 - 3
 Amendment 20

	  5.
 	  Delivery and Pricing.
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  Loan Level Price Adjustments for MBS Delivery.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  Each EA-I Mortgage or EA-II Mortgage delivered for MBS is subject to payment of the applicable base guaranty fee, as set forth in the applicable MBS pool purchase contract, in
addition to payment of the applicable Initiative loan level price adjustment as shown below, plus all other loan level price adjustments that may be applicable to such Mortgage. Additionally, Lender shall identify all EA-I Mortgages and EA-II
Mortgages at delivery with the applicable Special Feature Code as shown below.
 

 

	  Risk Level
 	   
 	  Initiative Loan Level 
 Price Adjustment
 	   
 	  Special Feature 
 Code
 
	 
 	   
 	 
 	   
 	 
 
	  EA-I Mortgages
 	  
 	  1.50% (for all Mortgages)
 	  
 	  340
 
	 EA-II Mortgages 
 (without Timely 
 Payment Rewards only)
 	  
 	  2.75% (for all Mortgages)
 	  
 	  341
 

 

	  
 	  
 	  (ii)
 	  Lender must set up a bank account from which Fannie Mae can draft loan level price adjustments in accordance with the requirements of the Selling Guide, as amended
from time to time.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  Delivery of Mortgages under the Initiative shall be subject to all applicable loan level price adjustments as required by the Selling Guide and the Expanded Approval
Eligibility Matrix, in the Desktop Underwriter Guide, both as amended from time to time. In addition, Mortgages under the Initiative are subject to the payment of the general Desktop Underwriter usage fees outlined in the Desktop Underwriter
Seller/Servicer Software License and Subscription Agreement between Lender and Fannie Mae.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (iv)
 	  Please note that any loan level price adjustment associated with the delivery and profile of Mortgages underwritten through Desktop Underwriter are subject to change
at any time during the term of this Master Agreement. These changes will be reflected in the Desktop Underwriter Guide or other written notice from Fannie Mae.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (v)
 	  Mortgages described in Paragraph 5(b)(ii) below are not eligible for delivery for MBS.
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  Cash Execution.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  All EA-I Mortgages, EA-II Mortgages and EA-III Mortgages are eligible for delivery for cash.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  The following Mortgages are eligible for delivery only for cash:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (A)
 	  all EA-II Mortgages that include the Timely Payment Rewards feature; and
 

  Master
Agreement MA02373.2
 VAR 2 - 4
 Amendment 20

	  
 	  
 	  
 	  (B)
 	  all EA-III Mortgages, whether or not such Mortgages include the Timely Payment Rewards feature.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  In addition to the cash pricing described in subparagraph (iv) below, each Mortgage is subject to the payment of all other loan level price adjustments that may be
applicable to such Mortgage. Lender shall identify all Mortgages at delivery with the applicable Special Feature Code as shown below.
 

 

	 Risk Level
 	  
 	 Special Feature Code 
 (for all Mortgages,
 regardless of LTV)
 
	 
 	  
 	 
 
	 EA-I Mortgages
 	  
 	 340
 
	 EA-II Mortgages without Timely Payment Rewards
 	  
 	 341
 
	 EA-II Mortgages with Timely Payment Rewards
 	  
 	 459
 
	 EA-III Mortgages without Timely Payment Rewards
 	  
 	 342
 
	 EA-III Mortgages with Timely Payment Rewards
 	  
 	 376
 

 

	  
 	  
 	  (iv)
 	  To obtain Fannie Mae cash pricing, Lender may go to eFanniemae.com and select “eCommitting” under the Lending and Servicing menu or call the Cash
Commitment Window for separate commitments at 1-800-752-1080 and select Option 5. At delivery Lender must advise the Cash Commitment Window:
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (A)
 	  that the subject commitment is for the Initiative, and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (B)
 	  that the subject risk level is either I, II or III (indicate which one), and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (C)
 	  if applicable, that the Mortgage includes the Timely Payment Rewards rate reduction feature, and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (D)
 	  of the applicable Special Feature Code(s) and all applicable loan level price adjustments as required by the Selling Guide and the Expanded Approval Eligibility Matrix, in the
Desktop Underwriter Guide, both as amended from time to time; and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (E)
 	  the applicable mortgage insurance level; and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (F)
 	  of the mortgage term (10-year, 15-year, 20-year, or 30-year), and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 (G)
 	  of the mortgage product (fixed-rate mortgage or the applicable ARM plan), and
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  (H)
 	  of the LTV of the Mortgage.
 

  Master Agreement MA02373.2
 VAR 2 - 5
 Amendment
20

	  
 	  
 	  (v)
 	  Delivery of Mortgages under the Initiative shall be subject to all applicable loan level price adjustments as required by the Selling Guide and the Expanded Approval
Eligibility Matrix, in the Desktop Underwriter Guide, both as amended from time to time. In addition, Mortgages under the Initiative are subject to the payment of the general Desktop Underwriter usage fees outlined in the Desktop Underwriter
Seller/Servicer Software License and Subscription Agreement between Lender and Fannie Mae.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (vi)
 	  Please note that the cash price and/or any other loan level price adjustment associated with the delivery and profile of Mortgages underwritten through Desktop
Underwriter are subject to change at any time during the term of this Master Agreement. These changes will be reflected in the Desktop Underwriter Guide or other written notice from Fannie Mae.
 
	  
 	  
 	  
 	  
 	  
 
	  6.
 	  General.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  Mortgage Insurance.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  The terms and conditions on which Fannie Mae has agreed to acquire the Mortgages originated pursuant to the Initiative assume that additional mortgage insurance is
obtainable for the Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages have been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest,
criminal, or knowingly wrongful, that would (A) cause a mortgage insurer to decline to insure a Mortgage, or (B) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud,
misrepresentation, negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  A minimum of 35% mortgage insurance coverage is required for (A) all Mortgages with LTVs greater than 95%, and (B) all Mortgages with LTVs of 90.01-95% originated
using flexible sources of funds for the down payment.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  Mortgages originated with mortgage insurance under the “Reduced MI” Coverage Option or the “Lower-Cost MI” Coverage Option (all as described in
the Selling Guide) are not eligible for delivery under the Initiative.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  Subordinate Financing.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 Mortgages may be subject to subordinate financing in accordance with the EA Lender Guide. Mortgages subject to subordinate financing are subject to any applicable
loan level price adjustments, in addition to any other loan level price adjustments that may apply.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  (c)
 	  Loan Level Price Adjustments.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  All loan level price adjustments referenced herein will be equal to the percentage amount specified multiplied by the issue date principal balance of the Mortgage,
in the case of Mortgages delivered for MBS and the delivery date principal balance, for mortgages delivered for cash.
 

  Master Agreement MA02373.2
 VAR 2 -
6
 Amendment 20

	  
 	  (d)
 	  Refinances.
 
	  
 	  
 	  
 
	  
 	  
 	 Mortgages delivered to Fannie Mae under the Initiative are not eligible for subsequent refinancing using any Fannie Mae Enhanced Streamlined Refinance process. In order for such
mortgages to be eligible for delivery to Fannie Mae, these cases must be submitted to Desktop Underwriter for credit risk analysis.
 
	  
 	  
 	  
 
	  
 	  (e)
 	  Servicing.
 
	  
 	  
 	  
 
	  
 	  
 	  Lender acknowledges that Lender is not approved to service Mortgages originated pursuant to the Initiative and agrees to assign the servicing to an authorized servicer of
Expanded Approval with Timely Payment Rewards Mortgages at the time of delivery to Fannie Mae in accordance with the provisions of the “EA Lender Guide,” as amended from time to time.
 

 
Master Agreement MA02373.2
 VAR 2 - 7
 Amendment 20

   VAR3          
Relocation Mortgage Guidelines/Trailing Secondary Wage Earner Income

	 Eligible Products / 
 Programs
 	   
 	  Loan Purpose
 	   
 	  Dwelling 
 Type
 	   
 	  Units
 	   
 	  Occupancy 
 Status
 	   
 	  LTV
 	   
 	  CLTV
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 
	 FRM:
 	  
 	  Purchase Money Mortgage
 	  
 	  Detached Condo PUD
 	  
 	  1
 	  
 	  Owner
 	  
 	  90
 	  
 	  90
 

 

	  Parameters
 	   
 	  Options/ Limitations
 
	 
 	   
 	 
 
	  Minimum Credit Score
 	  
 	  Standard per the Selling Guide and DU Guide to Underwriting
 
	 Loan Level Price Adjustment
 	  
 	  N/A
 
	  Foreclosure Loss Risk
 	  
 	  Fannie Mae
 
	  Documentation
 	  
 	  Mortgages must be originated using either full documentation for all information related to the borrowers’ employment, income, and source of funds or Fannie Mae’s
TimeSaver alternative documentation program.
 
	  Delivery Limitations
 	  
 	  50%
 
	  Interest Rate Buydowns
 	  
 	  Mortgages subject to temporary buydowns are not permitted.
 
	  Geographic Limitations
 	  
 	  N/A
 

  Additional Terms
  Under the following conditions, a percentage of the average income for the previous two years of a “trailing secondary wage earner” of a relocated employee (“borrower”) can be used for qualification
purposes (the “borrower” and “trailing secondary wage earner” may collectively be referred to as the “borrowers”.) A “trailing secondary wage earner” is defined as a relative or domestic partner of the primary
wage earner. A “relative” is defined as the primary wage earner’s spouse, child, other dependent, or any other individual who is related by blood, marriage, adoption, or legal guardianship. “Domestic partners” are defined as
persons who share a committed relationship showing financial interdependence and joint responsibility for each other’s common welfare, are not related by blood, reside in the same household, and intend to reside together
indefinitely.

	 Percent of Income
 	   
 	   
 	  Maximum LTV
 	   
 
	 
 	   
 	   
 	 
 	   
 
	  75
 	  %
 	  
 	  80
 	  %
 
	  50
 	  %
 	  
 	  90
 	  %
 

  Conditions

	  (i)
 	  Maximum allowable underwriting ratios are 28%/36%.
 
	  
 	  
 
	 (ii)
 	  The borrower must be relocating with the same employer or as a new hire with a company that provides relocation benefits, and must be eligible to receive such benefits. (The
Lender must retain (a) literature produced by the employer describing the employer’s relocation program in detail and (b) evidence of the borrower’s eligibility under the program in the individual Mortgage file.)
 

  Master Agreement MA02373.2
 VAR 3 - 1

	  (iii)
 	  The “trailing secondary wage earner” must have been a salaried or commissioned employee who had been employed in the same occupation for the two years immediately
preceding the transfer, and must provide a written statement that he or she intends to obtain employment in the new location. Income from a “trailing secondary wage earner” who was self-employed may not be considered for qualifying
purposes.)
 
	  
 	  
 
	  (iv)
 	  The borrowers must have cash reserves (after the purchase of the new home) equal to at least six months of payments for all housing costs and other obligations (including
installment and revolving debt). In determining these reserves, housing costs include not only the cost of housing in the new area, but also any payments that are being made on any unsold previous residence or investment properties (in instances
where such payments are not being paid by the employer of the borrower).
 
	  
 	  
 
	 (v)
 	  Lender must determine that the new location provides on-going opportunities for the “trailing secondary wage earner” to obtain employment in his or her current
occupation and must document the individual Mortgage file accordingly.
 

  Master Agreement MA02373.2
 VAR 3 - 2

   VAR 4          
Other Automated Underwriting Systems

	  Fannie Mae recognizes that Lender may originate or purchase from third parties mortgages that have been submitted for evaluation to an automated underwriting system
(“AUS”) other than DU. Lender may deliver to Fannie Mae mortgages processed through a third-party system in accordance with the provisions of this Variance set forth below, provided that Lender acknowledges and agrees not to use these
provisions in any manner that would adversely select or harm Fannie Mae and:
 
	  
 	  
 
	  (i)
 	  The mortgages meet Fannie Mae’s eligibility requirements described in the Fannie Mae Selling Guide, as modified by the Master Agreement, this Variance or the DU Guide, as
any of the foregoing may be amended from time to time.
 
	  
 	  
 
	  (ii)
 	  Such mortgages must receive a recommendation of “standard accept” (either full or streamlined documentation levels) or “accept plus” from the other
AUS.
 
	  
 	  
 
	 (iii)
 	  All data pertaining to the mortgage is complete and accurate, and all data on which the underwriting decision recommended by the other AUS was based remain unchanged as of the
closing date for such mortgage.
 
	  
 	  
 
	  (iv)
 	  Such mortgages must be documented and closed in accordance with the requirements of the other AUS, except with respect to the appraisal requirements, as provided in (xiii)
below. Verification of all such data is provided with the delivered mortgage loan file and such verification complies with the requirements of the other AUS. Lender must take all appropriate action in response to the verification messages/approval
conditions that appear in the “findings” report that the other AUS produces with respect to the related mortgage loan application prior to the closing of the mortgage, with proper documentation in the loan file. Lender represents and
warrants that copies of all reports generated by the other system will be included in the loan file, and that Lender is not prohibited from providing such copies.
 
	  
 	  
 
	  (v)
 	  With the exception of mortgages that are otherwise eligible for delivery under the Master Agreement or DU, mortgages receiving a recommendation of “standard accept”
(either full or streamlined documentation levels) or “accept plus” from the other AUS are not eligible for delivery under this Section if the recommendation (1) includes a requirement for additional fees, credit enhancements, or other
special conditions, except as otherwise expressly provided in (ix) below, or (2) the mortgage insurance coverage level obtained is lower than required per Fannie Mae’s Selling Guide, even if a reduced level of coverage is permitted by the other
AUS recommendation.
 
	  
 	  
 
	 (vi)
 	  Lender and Fannie Mae must mutually agree upon any AUS employed by Lender prior to the delivery of such mortgages to Fannie Mae.
 
	  
 	  
 
	  (vii)
 	  For all mortgages, Lender must enter the borrower’s representative FICO credit score into the appropriate data field when submitting the mortgage to Fannie Mae in
accordance with the Fannie Mae Selling Guide.
 
	  
 	  
 
	  (viii)
 	  Except as otherwise provided herein, Lender makes all applicable selling representations and warranties as required by the Fannie Mae Selling Guide and the Mortgage Selling and
Servicing Contract by and between Lender and Fannie Mae.
 

  Master Agreement MA02373.2
 VAR 4 - 1
 Amendment 20

	  (ix)
 	  The provisions of this Variance do not apply to any mortgage that is currently required by Fannie Mae to be submitted to DU for evaluation (“DU-Only
Products”) (e.g., Flexible Mortgages), and such mortgages must be processed through DU and receive an acceptable recommendation in order to be eligible for delivery to Fannie Mae, except as follows: if there is a mortgage product available in
the other AUS that is equivalent to a DU-Only Product (as determined by Fannie Mae), then such mortgage is eligible for delivery to Fannie Mae, subject at delivery to the (1) payment of all loan level price adjustments or special all-in yield
pricing applicable to the equivalent DU-Only Product, and (2) identification by any special feature code applicable to the equivalent DU-Only Product.
 
	  
 	  
 
	 (x)
 	  At delivery, Lender must:
 
	  
 	  
 
	  
 	  (1)
 	  identify all mortgages underwritten using an AUS other than DU in accordance with this Variance by inserting the following Special Feature Code(s) on the Loan Schedule or
Schedule of Mortgages, as applicable: (A) “361” for all mortgages, and (B) any other special feature code loan that would be required if the mortgage had been submitted to DU prior to delivery; and
 
	  
 	  
 	  
 
	  
 	  (2)
 	  pay all applicable loan level price adjustments required under Fannie Mae’s eligibility criteria.
 
	  
 	  
 	  
 
	  (xi)
 	  Lender shall continue to make all representations and warranties as if such underwriting documentation complied with the requirements described in the Fannie Mae
Selling Guide, as modified by the Master Agreement or this Variance.
 
	  
 	  
 
	 (xii)
 	  Fannie Mae will analyze the credit risks associated with such mortgages and will provide Lender with the results of this analysis. Upon request, Lender will provide
to Fannie Mae any data or information relating to the mortgages delivered to Fannie Mae that were processed through the other AUS, and Lender represents and warrants that Lender is not prohibited from providing such data or information to Fannie
Mae. If Fannie Mae’s analysis indicates that a significant number of such Mortgages contained a high risk of default, Lender and Fannie Mae will work together to identify and implement product or process changes to reduce the number of such
high risk mortgages expected to be delivered during the following quarter (or, in lieu of product or process changes, Lender and Fannie Mae may discuss prospective price adjustments to compensate Fannie Mae for the risks associated with such
mortgages). If Fannie Mae and Lender cannot agree on the appropriate actions to be taken during the following quarter to address high risk mortgages, then Fannie Mae reserves the right to discontinue accepting such mortgages.
 
	  
 	  
 
	  (xiii)
 	  With respect to all mortgages underwritten using the other AUS, the property value must be supported by a written appraisal, in spite of any specific finding by the
other AUS that the property appraisal may be waived or that a property inspection report may be obtained in lieu of an appraisal (i.e., Form 2075 or equivalent form in the other AUS are not acceptable). The appraisal must conform to one of the
following: (i) an interior and exterior appraisal using the Desktop Underwriter Quantitative Analysis Appraisal Report (Form 2055) or equivalent form in the other AUS; or (iii) a full appraisal performed in accordance with the Fannie Mae Selling
Guide.
 

  Master Agreement MA02373.2
 VAR 4 - 2
 Amendment 20

  SPECIAL REQUIREMENTS
  This Special Requirements Attachment is attached to and made a part of the Master Agreement.
Under this Master Agreement, Lender may sell Mortgages originated in accordance with the following special requirements. Unless otherwise specified, the following special requirements apply only to conventional, first lien Mortgages.
 
TABLE OF CONTENTS

	  Part A.
 	  
Radian Secondary Market Coverage Policy
 
	  Part B.
 	  
Cross Default Provision
 
	  Part C.
 	  
GEMICO Supplemental Primary Secondary Market Policy
 

  Master Agreement MA02373.2
 SREQ/TOC -1

   Part A.          
Radian Secondary Market Coverage Policy.
  Lender may deliver conventional Mortgages to Fannie Mae that are covered by a Radian Guaranty Insurance Corporation
(“Radian”) Secondary Market Coverage Policy (“Secondary Market Policy”). Mortgages delivered for coverage under this Policy are referred to as Secondary Market Coverage Mortgages (“SMC Mortgages”) and may be delivered
in accordance with the following:

	  1.
 	  Eligible Products:  Eligible SMC Mortgages must be originated pursuant to standard Fannie Mae guidelines, as may be amended by this Master Agreement, and
are described as follows:
 
	  
 	  
 
	  
 	 (a)
 	  Eligible SMC Mortgages are limited to the following:
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  fixed-rate, level-payment, fully amortizing mortgages;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  all adjustable rate mortgages originated under Fannie Mae’s standard ARM plans;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  7- year balloon mortgages;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (iv)
 	  Mortgages with LTVs of 95.01-100% that are Fannie Mae products that Lender is approved to deliver under this Master Agreement and are approved for SMC;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (v)
 	  Flexible Mortgages that receive an “Eligible” recommendation in Desktop Underwriter and are otherwise eligible for SMC; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (vi)
 	  Relocation mortgages, credit union mortgages and such other mortgage products that may be specifically approved in writing by Radian and are eligible pursuant to standard Fannie
Mae guidelines, as may be amended by this Master Agreement.
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  The following Mortgages are ineligible for SMC:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  Mortgages originated under Fannie Mae’s Desktop Underwriter “Expanded Approval with Timely Payment Rewards” Initiative.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  Any mortgage that receives an “A Minus” mortgage insurance premium rate from the mortgage insurer.
 
	  
 	  
 	  
 	  
 
	  2.
 	  Eligible LTV and Primary Mortgage Insurance Coverages:  All SMC Mortgages must have obtained a mortgage insurance premium rate from the mortgage
insurer’s traditional (“A” paper) rate card, and meet the following requirements:
 
	  
 	  
 	  
 	  
 
	  
 	  (a)     SMC Mortgages must have mortgage insurance coverage based on the loan-to-value ratio (“LTV”) of such Mortgage equal to the
greater of:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  the minimum level applicable to the Mortgage as required by Fannie Mae, taking into account any higher the mortgage insurance requirements applicable to any specific mortgage
products (e.g., Flexible Mortgages, etc.), which may be higher than for standard mortgage products, or
 

  Master Agreement MA02373.2 
 SREQ - Radian Secondary
Market Coverage Policy - 1
 Amendment 20

	  
 	  
 	  (ii)
 	  the minimum applicable SMC eligibility level set forth in Paragraph 2(b) below.
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  Notwithstanding any Fannie Mae minimum mortgage insurance requirements to the contrary, Mortgages must have the following minimum mortgage insurance coverage
in order to be eligible for SMC:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  12% for 80.01 -85% LTVs;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  17% for 85.01-90% LTVs;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  25% for 90.01 -95% LTVs; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iv)
 	  30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a) above -- refer to the specific product guidelines or terms and conditions for higher required MI coverage
that may be applicable.)
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (v)
 	  Note:  Any Mortgage originated with mortgage insurance coverage lower than the minimum coverage listed above in accordance with a Desktop Underwriter recommendation, either
with or without a loan level price adjustment, is ineligible for SMC.
 
	  
 	  
 	  
 	  
 
	  
 	  (c)
 	  Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00% that are originated with mortgage insurance coverages, per the Selling Guide, that are
lower than the required coverage levels described in Paragraphs 2(a) and (b) above are ineligible for delivery as SMC Mortgages.
 
	  
 	  
 	  
 	  
 
	  3.
 	  Loan Level Price Adjustments:  For all SMC Mortgages, Lender must remit any appropriate loan-level price adjustments or, if applicable, under an
alternative all-in yield option (product-specific guaranty fee). Under the all-in yield option, the SMC execution improvement will be deducted from the product-specific guaranty fee.
 
	  
 	  
 	  
 	  
 
	  4.
 	 Seasoning Requirements:  No SMC Mortgage may have been originated more than 12 months prior to delivery to Fannie Mae.
	  
 	  
 	  
 	  
 
	 5.
 	  Additional Requirements:
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  All SMC Mortgages delivered to Fannie Mae must be covered by standard Radian primary mortgage insurance, which premiums must be paid in installments by the borrower
(i.e. it may not be a single premium payment or lender-paid).
 
	  
 	  
 	  
 
	  
 	  (b)
 	  If Fannie Mae is unable to obtain coverage under a satisfactory Radian Secondary Market Policy, then Fannie Mae may discontinue purchasing SMC Mortgages under this
Master Agreement ten days after giving Lender notice.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Lender represents and warrants that no SMC Mortgage it delivers pursuant to this Master Agreement at the time of acquisition by Fannie Mae is: (i) insured at rates
other than standard borrower-paid rates; (ii) included in a captive reinsurance arrangement with
 

 Master Agreement MA02373.2
 SREQ - Radian Secondary Market
Coverage Policy - 2
 Amendment 20

	  
 	  
 	  Radian, or covered by a GSE pool insurance policy issued by, Radian or some other Radian risk-sharing plan; (iii) insured under a Radian “Life of Loan”
policy; (iv) insured under any “A Minus” premium rate plan, or (v) a UCC financed (i.e., non-real-property) Manufactured Housing Loan.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  Each SMC Mortgage delivered to Fannie Mae under this Master Agreement must be originated using the applicable Fannie Mae/Freddie Mac Uniform Security Instrument
(with effective date on or after 01/01).
 
	  
 	  
 	  
 
	  
 	  (e)
 	  Lender will be permitted to deliver SMC Mortgages to Fannie Mae under this Master Agreement that are eligible for coverage under the Radian Secondary Market Policy
for the period commencing with Lender’s first delivery of SMC Mortgages and ending on the expiration date of the Master Agreement. Notwithstanding the foregoing, Fannie Mae may cease purchasing such SMC Mortgages under this Master Agreement 60
days after giving Lender written notice of cessation.
 
	  
 	  
 	  
 
	  
 	 (f)
 	  Lender represents and warrants that: (i) it has a currently existing standard primary mortgage insurance master policy with Radian and that it shall maintain such
policy with Radian as long as it continues to sell or service SMC Mortgages covered by the Radian Secondary Market Policy, or (ii) concurrent with the sale of SMC Mortgages to Fannie Mae, it will transfer servicing to a servicer that has a standard
primary mortgage insurance master policy with Radian and that has agreed with Fannie Mae to maintain such policy with Radian as long as it services SMC Mortgages covered by the Radian Secondary Market Policy.
 
	  
 	  
 	  
 
	  
 	  (g)
 	  With respect to each SMC Mortgage, Lender must maintain in effect (subject to Fannie Mae’s policies) the original certificate or electronic record evidencing
coverage under its Radian standard primary mortgage insurance master policy.    Lender represents and warrants that any transfers of servicing of SMC Mortgages covered by this provision shall only be to a servicer that has an existing
standard primary mortgage insurance master policy with Radian and Lender shall notify the transferee that transferee will be obligated to Fannie Mae to maintain the original certificate number. Furthermore, Lender must comply with all of the
remittance and claim filing requirements related to the Radian standard primary mortgage insurance master policy.
 
	  
 	  
 	  
 
	 6.
 	  Cash Delivery Procedures:  SMC Mortgages eligible for coverage under the Radian Secondary Market Policy must be delivered under branch number 23227-003-9
or 24837-002-5 which will identify the Mortgages as SMC Mortgages. The SMC Mortgages are being delivered to Fannie Mae on a negotiated basis and therefore should not be committed through Desktop Trader®. Lender should use eCommitting to commit
SMC Mortgages for cash delivery, if available. If not, then Lender must call the Cash Commitment Window at 1-800-752-1080 to deliver such SMC Mortgages and press selection #5, Negotiated Pricing. Please notify the Commitment Analyst that Lender is
delivering SMC Mortgages covered by the Radian Secondary Market Coverage Policy.
 
	  
 	  
 	  
 	  
 
	  7.
 	  SMC Mortgages described in this Part of the Special Requirements section that are delivered for MBS must be delivered under Pool Purchase Contract No(s). A06743,
A06303, A06304, A06305, A06809, A06811, and A06901.
 

  Master Agreement MA02373.2
 SREQ - Radian Secondary Market Coverage Policy - 3 
 Amendment
20

	  8.
 	  Mortgages Ineligible for Secondary Market Policy Coverage:  In the event a mortgage delivered as an SMC Mortgage is determined by Radian to be ineligible for Radian
Secondary Market Policy coverage, then Fannie Mae may require either that Lender immediately (i) repurchase such mortgage, or (ii) remit to Fannie Mae an amount equal to the present value of the difference between the base guaranty fee under the
applicable Pool Purchase Contract referenced above and the base guaranty fee which would have been applicable to the mortgage if delivered without coverage under the Radian Secondary Market Policy, multiplied by the issue date principal balance of
the mortgage.
 

 Master Agreement MA02373.2 
 SREQ - Radian Secondary Market Coverage Policy - 4 
 Amendment 20

   Part B.          
Cross Default Provision
  This Special Requirements provision sets out in more detail the specific requirements for Crescent Bank and Trust Company and Crescent Mortgage
Services (defined individually and jointly as “Lender or Lenders”). Fannie Mae and Crescent Bank and Trust Company and Crescent Mortgage Services acknowledge and agree that Crescent Bank and Trust Company and Crescent Mortgage Services may
deliver eligible Mortgages under this Master Agreement subject to the following additional provisions:

	  •
 	  For all provisions in this Master Agreement, all references to “Lender” shall be defined to include and refer to both Crescent Bank and Trust Company and Crescent
Mortgage Services, jointly and severally.
 
	  
 	  
 
	  •
 	  All eligible Mortgages which are sold and delivered to Fannie Mae by Crescent Bank and Trust Company and Crescent Mortgage Services shall be delivered under the respective
Seller/Servicer Numbers. For example, Crescent Bank and Trust Company shall deliver eligible Mortgages under its Seller/Servicer Number 23227-000-4 and Crescent Mortgage Services shall deliver eligible Mortgages under its Seller/Servicer Number
24837-000-9.
 
	  
 	  
 
	  •
 	  Lenders acknowledge and agree that all of the eligible Mortgages delivered by either Lender shall not be co-mingled or pooled with each other. All pools delivered pursuant to
this Agreement must be Single Lender pools, as defined in the Selling Guide. The delivery of Mortgages from either Lender are subject to the same terms and conditions specified in this Agreement, including the same variances, if any, contained
herein.
 
	  
 	  
 
	 •
 	  Each Lender shall be jointly and severally liable to Fannie Mae for all representations and warranties under this Agreement, their individual Fannie Mae Seller and Servicer
Contracts and the Fannie Mae Selling and Servicing Guides. The obligations of each Lender set forth herein and in the Selling and Servicing Guides shall apply with regard to those pool documentation packages and eligible Mortgages delivered by such
Lender, and either Lender shall be jointly and severally liable for the failure of the other Lender to meet is obligations as set forth herein and in the Guides, including, but not limited to the obligation of each Lender to deliver the mandatory
commitment amount.
 

  Master Agreement MA02373.2
 SREQ - Cross Default Provision - 1
 Amendment 20

   Part C.          
GEMICO Supplemental Primary Secondary Market Policy.
  Lender may deliver conventional Mortgages to Fannie Mae that are covered by a GE Mortgage Insurance Corporation
(“GEMICO”) Supplemental Primary Secondary Market Policy (“Secondary Market Policy”). Mortgages delivered for coverage under this Policy are referred to as Secondary Market Coverage Mortgages (“SMC Mortgages”) and may be
delivered in accordance with the following:

	  1.
 	  Eligible Products:  Eligible SMC Mortgages must be originated pursuant to standard Fannie Mae guidelines, as may be amended by this Master Agreement, and
are described as follows:
 
	  
 	  
 	  
 	  
 
	  
 	 (a)
 	  Eligible SMC Mortgages are limited to the following:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  fixed-rate level-payment, fully amortizing Mortgages;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  7-year balloon Mortgages;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  5/1 ARMs, 7/1 ARMs, and 10/1 ARMs (Fannie Mae’s standard ARM plans); or
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iv)
 	  Mortgages with LTVs of 95.01-100% that are Fannie Mae products that Lender is approved to deliver under this Master Agreement and are approved for SMC;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (v)
 	  Flexible Mortgages that receive an “Eligible” recommendation in Desktop Underwriter and are otherwise eligible for SMC; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (vi)
 	  such other mortgage products that may be specifically approved in writing by GEMICO and are eligible pursuant to standard Fannie Mae guidelines, as may be amended by this Master
Agreement.
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  The following Mortgages are ineligible for SMC:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  Mortgages originated under Fannie Mae’s Desktop Underwriter “Expanded Approval with Timely Payment Rewards” Initiative.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  Any mortgage that receives an “A Minus” mortgage insurance premium rate from the mortgage insurer.
 
	  
 	  
 	  
 	  
 
	  2.
 	  Eligible LTV and Primary Mortgage Insurance Coverages:  All SMC Mortgages must have obtained a mortgage insurance premium rate from the mortgage
insurer’s traditional (“A” paper) rate card, and meet the following requirements:
 
	  
 	  
 	  
 	  
 
	  
 	  (a)     SMC Mortgages must have mortgage insurance coverage based on the loan-to-value ratio (“LTV”) of such Mortgage equal to the
greater of: 
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  the minimum level applicable to the Mortgage as required by Fannie Mae, taking into account any higher mortgage insurance requirements applicable to any specific mortgage
products (e.g., Flexible Mortgages, etc.), which may be higher than for standard mortgage products; or
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  the minimum applicable SMC eligibility level set forth in Paragraph 2(b) below.
 

  Master
Agreement MA02373.2
 SREQ - GEMICO Supplemental Primary Secondary Market Policy   07/02 - 1
 Amendment 20

	  
 	  (b)
 	  Notwithstanding any Fannie Mae minimum mortgage insurance requirements to the contrary, Mortgages must have the following minimum mortgage insurance coverage
in order to be eligible for SMC:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  12% for 80.01-85% LTVs;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  17% for 85.01-90% LTVs;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (iii)
 	  25% for 90.01-95% LTVs; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iv)
 	  30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a) above — refer to the specific product guidelines or terms and conditions for any higher required MI
coverage that may be applicable.)
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (v)
 	  Note: Any Mortgage originated with mortgage insurance coverage lower than the minimum coverage listed above in accordance with a Desktop Underwriter recommendation, either with
or without a loan level price adjustment, is ineligible for SMC.
 
	  
 	  
 	  
 	  
 
	  
 	  (c)
 	  Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00% that are originated with mortgage insurance coverages, per the Selling Guide, that are
lower than  the required coverage levels described in Paragraphs 2(a) and (b) above are ineligible for delivery as SMC Mortgages.
 
	  
 	  
 	  
 	  
 
	 3.
 	  Loan Level Price Adjustments:  For all SMC Mortgages, Lender must remit any appropriate loan-level price adjustments or, if applicable, under an
alternative all-in yield option (product-specific guaranty fee). Under the all-in yield option, the SMC execution improvement will be deducted from the product-specific guaranty fee.
 
	  
 	  
 
	  4.
 	  Seasoning Requirements:  No SMC Mortgage may have been originated more than 12 months prior to delivery to Fannie Mae nor have been originated prior to
September 1, 2001.
 
	  
 	  
 
	  5.
 	  Additional Requirements:
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  All SMC Mortgages delivered to Fannie Mae must be covered by standard GEMICO primary mortgage insurance, which premiums must be paid in installments by the borrower
under a single-premium, annual premium, monthly premium or “zero monthly” payment plan. Premiums may not be lender-paid.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  If Fannie Mae is unable to obtain coverage under a satisfactory GEMICO Secondary Market Policy, then Fannie Mae may discontinue purchasing SMC Mortgages under this
Master Agreement ten days after giving Lender notice.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Lender represents and warrants that no SMC Mortgage it delivers pursuant to this Master Agreement at the time of acquisition by Fannie Mae is:  (i) included in
a captive reinsurance arrangement between Lender and GEMICO, or covered by a GSE pool insurance policy issued by GEMICO or some other GEMICO risk-sharing or profit sharing arrangement; (iii) insured under any GEMICO “A Minus” or “Alt
A” premium 
 

  Master Agreement MA02373.2
 SREQ - GEMICO Supplemental Primary Secondary Market Policy   07/02 - 2
 Amendment
20

	  
 	  
 	  rate plan, (iv) insured under any GEMICO policy with primary mortgage insurance premiums pursuant to affinity rates, credit union rates or relocation rates, or (v) insured with
GEMICO discounted mortgage insurance rates.
 
	  
 	  
 	  
 
	  
 	 (d)
 	  Each SMC Mortgage delivered to Fannie Mae under this Master Agreement must be originated using the applicable Fannie Mae/Freddie Mac Uniform Security Instrument (with effective
date on or after 01/01).
 
	  
 	  
 	  
 
	  
 	  (e)
 	  Lender will be permitted to deliver SMC Mortgages to Fannie Mae under this Master Agreement that are eligible for coverage under the GEMICO Secondary Market Policy for the
period commencing with Lender’s first delivery of SMC Mortgages and ending on the expiration date of the Master Agreement. Notwithstanding the foregoing, Fannie Mae may cease purchasing such SMC Mortgages under this Master Agreement 60 days
after giving Lender written notice of cessation.
 
	  
 	  
 	  
 
	  
 	  (f)
 	  Lender represents and warrants that: (i) it has a currently existing standard primary mortgage insurance master policy with GEMICO and that it shall maintain such policy with
GEMICO as long as it continues to sell or service SMC Mortgages covered by the GEMICO Secondary Market Policy, or (ii) concurrent with the sale of SMC Mortgages to Fannie Mae, it will transfer servicing to a servicer that has a standard primary
mortgage insurance master policy with GEMICO and that has agreed with Fannie Mae to maintain such policy with GEMICO as long as it services SMC Mortgages covered by the GEMICO Secondary Market Policy.
 
	  
 	  
 	  
 
	  
 	 (g)
 	  With respect to each SMC Mortgage, Lender must maintain in effect (subject to Fannie Mae’s policies) the original certificate or electronic record evidencing coverage under
its GEMICO standard primary mortgage insurance master policy.  Lender represents and warrants that any transfers of servicing of SMC Mortgages covered by this provision shall only be to a servicer that has an existing standard primary mortgage
insurance master policy with GEMICO and Lender shall notify the transferee that transferee will be obligated to Fannie Mae to maintain the original certificate number. Furthermore, Lender must comply with all of the remittance and claim filing
requirements related to the GEMICO standard primary mortgage insurance master policy.
 
	  
 	  
 	  
 
	  6.
 	  Cash Delivery Procedures:  SMC Mortgages eligible for coverage under the GEMICO Secondary Market Policy must be delivered under branch number 23227-003-9
or 24837-002-5 which will identify the Mortgages as SMC Mortgages. The SMC Mortgages are being delivered to Fannie Mae on a negotiated basis and therefore should not be committed through Desktop Trader®.  Lender should use eCommitting to
commit SMC Mortgages for cash delivery, if available.  If not, then Lender must call the Cash Commitment Window at 1-800-752-1080 to deliver such SMC Mortgages and press selection #5, Negotiated Pricing. Please notify the Commitment Analyst
that Lender is delivering SMC Mortgages covered by the GEMICO Choice Coverage Secondary Market Policy.
 
	  
 	  
 
	 7.
 	  SMC Mortgages described in this Part of the Special Requirements section that are delivered for MBS must be delivered under Pool Purchase Contract No(s). A06305,
A06809, and A06811.
 

  Master Agreement MA02373.2 
 SREQ - GEMICO Supplemental Primary Secondary Market Policy    07/02 - 3
 Amendment
20

	  8.
 	  Mortgages Ineligible for Secondary Market Policy Coverage: In the event a mortgage delivered as an SMC Mortgage is determined by GEMICO to be ineligible for GEMICO
Secondary Market Policy coverage, then Fannie Mae may require either that Lender immediately (i) repurchase such mortgage, or (ii) remit to Fannie Mae an amount equal to the present value of the difference between the base guaranty fee under the
applicable Pool Purchase Contract referenced above and the base guaranty fee which would have been applicable to the mortgage if delivered without coverage under the GEMICO Secondary Market Policy, multiplied by the issue date principal balance of
the mortgage.
 

  Master Agreement MA02373.2
 SREQ - GEMICO Supplemental Primary Secondary Market Policy    07/02 - 4
 Amendment 20

   FIXED-RATE PRODUCT ATTACHMENT
  This Fixed-Rate Product Attachment for FHA/VA or conventional fixed-rate,
level-payment residential mortgage loans (“Fixed-Rate Mortgages”) is attached to and made a part of the Master Agreement.
  Variances, Special Products, and Special Requirements
Applicable to Fixed-Rate Mortgages
  Please refer to the attachments under the “Variances” tab, the “Special Requirements” tab, the “Housing and Community
Development” tab, and the “HomeStyle” tab, as applicable, for eligibility for variances, special products, and special requirements.
 MBS Guaranty Fee and Buyup/Buydown
Information
  The guaranty fee due to Fannie Mae for any Mortgage sold under any MBS Contract shall be at the annual rate specified in the applicable MBS Contract, payable monthly, after giving
effect to any reduction of the guaranty fee through use of the MBS Express remittance cycle, if applicable. In addition, the guaranty fee will be set before giving effect to (i) any reduction of the guaranty fee through use of the rapid payment
method of remittances, if applicable, and (ii) any increases or decreases of the guaranty fee relating to any buyups or buydowns of such fee, if applicable.
  Lender must choose the applicable
Buyup/Buydown Grid posting, “Early” or “Late,” by contacting its customer account team in its lead regional office, prior to the “Early” grid posting. If Lender fails to notify its lead regional office of its grid
selection before the “Early” grid is posted, Fannie Mae will assume that Lender has selected the “Early” posting grid. Lender’s grid selection will apply to all MBS pools that it sells under the same MBS Contract. Ratios for
products or note rates that are not included in the regular posting may be negotiated through Lender’s lead regional office.
  Master Agreement MA02373.2 
 FRM - 1

   Contract No. A06303.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT 
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company 
 Crescent Mortgage Services
 	  Lender Number: 23227-000-4
 23227-003-9
 24837-002-5
 
	  
 	  
 
	 Eligible Products:
 	  10- 15- 20- 25- and 30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $2,500,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  January 1, 2003 – March 1, 2003
 
	  
 	  
 
	  Servicing Option:
 	  Special
 
	  
 	  
 
	  Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	 Seasoning Requirements:
 	  Current
 
	  
 	  
 
	  Special Feature Codes:
 	  460 - MyCommunityMortgage, 481 - MCM Teacher Suite Product, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein. 
 Pool contract price adjustment is waived. 
 Radian Secondary Market Coverage
required. 
 MyCommunityMortgage: Community 97.
  Pool Purchase Contract No. A06303.2
 FRM - 1 
 Amendment 20

   Contract No. A06303.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  10-, 15-, 20-, 25- and 30-year fixed rate level-payment mortgages
 
	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  N/A *
 
	  
 	  
 
	  Guaranty Fee:
 	  20.00 Basis Points
 
	  
 	  
 
	  Buyup/Buydown Grid:
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  * If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation,
then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation
will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
  Pool Purchase Contract
No. A06303.2
 FRM - 2 
 Amendment 20

   Contract No. A06304.2
 FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT 
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company 
 Crescent Mortgage Services
 	  Lender Number: 23227-000-4
 23227-003-9
 24837-002-5
 
	  
 	  
 
	  Eligible Products:
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $2,500,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  January 1, 2003 – March 1, 2003
 
	  
 	  
 
	  Servicing Option:
 	  Special
 
	  
 	  
 
	 Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	  Seasoning Requirements:
 	  Current
 
	  
 	  
 
	  Special Feature Codes:
 	  480 - MCM Community100 Plus, 481 - MCM Teacher Suite Product, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 30-year Fixed-Rate Mortgages for
MyCommunityMortgage:  Community 100 Plus and Community
 Solutions 100 with Radian Secondary Market Coverage.
  Pool Purchase Contract No. A06304.2
 FRM - 1 
 Amendment
20

   Contract No. A06304.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  N/A *
 
	  
 	  
 
	  Guaranty Fee:
 	  25.00 Basis Points
 
	  
 	  
 
	  Buyup/Buydown Grid:
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  * If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion.  The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation,
then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation
will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
 Pool Purchase Contract
No. A06304.2
 FRM - 2 
 Amendment 20
   

   Contract No. A06305.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 Crescent Mortgage Services
 	  Lender Number: 23227-000-4
 23227-003-9
24837-002-5

 
	  
 	  
 
	  Eligible Products:
 	  20-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $2,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  January 1, 2003 – March 1, 2003
 
	  
 	  
 
	 Servicing Option:
 	  Special
 
	  
 	  
 
	  Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	  Seasoning Requirements:
 	  Current
 
	  
 	  
 
	  Special Feature Codes:
 	  361 - 3rd Autom U-Writng SYS, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 20-year Fixed-Rate Mortgages >80% LTV with Radian and GEMICO
Secondary Market Coverage.
  Pool Purchase Contract No. A06305.2
 FRM - 1
 Amendment 20

  Contract No. A06305.2
  MBS Pricing Confirmation for Crescent Bank and Trust Company

MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master Conversion
governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  20-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  N/A *
 
	  
 	  
 
	  Guaranty Fee:
 	  14.00 Basis Points
 
	  
 	  
 
	  Buyup/Buydown Grid:
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  *   If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee
is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
 Pool
Purchase Contract No. A06305.2
 FRM - 2
 Amendment 20

   Contract No. A06808.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 Crescent Mortgage Services
 	  Lender Number: 23227-000-4
 23227-003-9
 24837-002-5
 
	  
 	  
 
	  Eligible Products:
 	  20-, 25-, and 30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $25,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  January 1, 2003 – March 1, 2003
 
	  
 	  
 
	 Servicing Option:
 	  Special
 
	  
 	  
 
	  Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	  Seasoning Requirements:
 	  Current
 
	  
 	  
 
	  Special Feature Codes:
 	  340 - Level I Expanded Approval, 341 - Level II Expanded Approva, 342 - Level III Expanded Approv, 361 - 3rd Autom U-Writng SYS 376 - Level III TPR, 459 - Level II Timely
Payment R, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s)
attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
20-, 25-, and 30-year Fixed Rate Mortgages with LTVs <= 80%.
 Pool Purchase Contract No.
A06808.2
 FRM - 1
 Amendment 20

   Contract No. A06808.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  20-, 25- and 30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  N/A *
 
	  
 	  
 
	  Guaranty Fee:
 	  15.00 Basis Points
 
	  
 	  
 
	  Buyup/Buydown Grid:
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

 *   If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee
is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
  Pool
Purchase Contract No. A06808.2
 FRM - 2
 Amendment 20

   Contract No. A06809.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 Crescent Mortgage Services
 	  Lender Number: 23227-000-4
 23227-003-9
 24837-002-5
 
	  
 	  
 
	  Eligible Products:
 	  20-, 25- and 30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $10,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  January 1, 2003 – March 1, 2003
 
	  
 	  
 
	  Servicing Option:
 	  Special
 
	  
 	  
 
	  Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard 
 
	  
 	  
 
	  Seasoning Requirements:
 	  Current
 
	  
 	  
 
	 Special Feature Codes:
 	  361 - 3rd Autom U-Writng SYS, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 20-, 25-, and 30-year Fixed Rate Mortgages with LTVs > 80% with
Radian and GEMICO Secondary Marketing Coverage.
  Pool Purchase Contract No. A06809.2
 FRM - 1
 Amendment 20

   Contract No. A06809.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  20-, 25- and 30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  N/A *
 
	  
 	  
 
	 Guaranty Fee:
 	  10.50 Basis Points
 
	  
 	  
 
	  Buyup/Buydown Grid:
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  *   If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee
is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
  Pool
Purchase Contract No. A06809.2
 FRM - 2
 Amendment 20

   Contract No. A06810.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 Crescent Mortgage Services
 	  Lender Number: 23227-000-4
 23227-003-9
 24837-002-5
 
	  
 	  
 
	 Eligible Products:
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $25,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  January 1, 2003 – March 1, 2003
 
	  
 	  
 
	  Servicing Option:
 	  Special
 
	  
 	  
 
	  Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	 Seasoning Requirements:
 	  Current
 
	  
 	  
 
	  Special Feature Codes:
 	  340 - Level I Expanded Approval, 341 - Level II Expanded Approva, 342 - Level III Expanded Approv, 361 - 3rd Autom U-Writng SYS, 376 - Level III TPR, 459 - Level II Timely
Payment R, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s)
attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 10- and 15-Year Fixed Rate Mortgages with LTVs <= 80%.
  Pool Purchase Contract No.
A06810.2
 FRM - 1
 Amendment 20

   Contract No. A06810.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  N/A *
 
	  
 	  
 
	  Guaranty Fee:
 	  13.00 Basis Points
 
	  
 	  
 
	  Buyup/Buydown Grid:
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  *   If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee
is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
  Pool
Purchase Contract No. A06810.2
 FRM - 2
 Amendment 20

   Contract No. A06811.2
 FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 Crescent Mortgage Services
 	  Lender Number: 23227-000-4
 23227-003-9
 24837-002-5
 
	  
 	  
 
	  Eligible Products:
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $10,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  January 1, 2003 – March 1, 2003
 
	  
 	  
 
	  Servicing Option:
 	  Special
 
	  
 	  
 
	 Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	  Seasoning Requirements:
 	  Current
 
	  
 	  
 
	  Special Feature Codes:
 	  361 - 3rd Autom U-Writng SYS, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
 10- and 15-Year Fixed Rate Mortgages with LTVs > 80% with Radian
and GEMICO Secondary Marketing Coverage.
  Pool Purchase Contract No. A06811.2
 FRM - 1
 Amendment 20

   Contract No. A06811.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  N/A *
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  13.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  *   If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee
is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
 Pool
Purchase Contract No. A06811.2
 FRM - 2
Amendment 20

   August 2002
  Housing and Community Development
 Index
  These Housing and Community Development Terms and Conditions(s) are attached to and made a part of the Master Agreement (the “Agreement”). The Lender and Fannie Mae agree that, except as provided below, all
other requirements of the Fannie Mae Selling and Servicing Guides shall be followed. Any provision specified below may be amended by Fannie Mae’s issuance to Lender of an “Announcement of Approval.” Capitalized terms used but not
defined herein shall have the meanings set forth in the Agreement.
  The appropriate Special Feature Code (“SFC”) as indicated below must be entered on the Schedule of Mortgages (Form
2005) or Loan Schedule (Form 1068), as applicable.
   Under this Master Agreement, Lender may deliver the following: 
  Special
Initiatives
  MyCommunityMortgageSM; Community 97SM Mortgages (SFC “460”) as described in the attached terms and conditions.
  MyCommunityMortgageSM; Community 100 PlusSM Mortgages (SFC “480”) as described in the attached terms and conditions.
  MyCommunityMortgageSM; Community SolutionsSM 100 Mortgages (SFC “481”) as described in the attached terms and conditions.
  Master Agreement MA02373.2
 HCD - 1

   August 2002
  Fannie Mae
  MyCommunityMortgageSM; Community 97
  Terms and Conditions
 The following terms and
conditions apply to certain Mortgages (described below), which are eligible for purchase for cash or MBS under Fannie Mae’s MyCommunityMortgageSM pilot (“MyCommunityMortgage”) for the Community 97SM option. The
term “Lender” refers to the Fannie Mae seller/servicer to which these terms and conditions are being issued. Except as provided herein, all other requirements of the Selling Guide (as updated) must be followed.

	  1.
 	  Loan-to-Value Ratio
 
	  
 	  The maximum loan-to-value ratio (“LTV”) is 97%, or 90% if the property is a cooperative, which percentage is calculated from the lower of the sales price or the
appraised value of the property.
 
	  
 	  
 
	  2.
 	  Eligible Properties
 
	  
 	  Eligible properties are owner-occupied, principal residences that consist of one unit, including manufactured housing and units in condominiums and planned unit developments
(“PUDs”) and cooperatives that conform with any related Fannie Mae requirements. With respect to units in cooperatives, Lender must have received specific authority to deliver mortgages on cooperatives to Fannie Mae. Both existing
structures and new construction are eligible.
 
	  
 	  
 
	  3.
 	  Borrower Income
 
	  
 	 The borrower’s income may not exceed 100% of the median income that HUD publishes for the property’s location, except for (i) higher income limits allowed for certain
high-cost areas as specified in the Selling Guide, and (ii) an income limit of 115% of the HUD-published median in nonmetropolitan counties and (iii) borrower incomes imposed by other organizations (such as when a housing finance agency or an
employer provides down payment or closing cost assistance), as specified in the Selling Guide.
 
	  
 	  
 
	  
 	  Borrower income limitations are not applicable, however, in neighborhoods that qualify as FannieNeighbors® locations; FannieNeighbors locations are specified in the Selling
Guide. (A geocoding service is currently available on Fannie Mae’s web site, www.efanniemae.com, to assist lenders in determining whether a particular property is in an eligible FannieNeighbors area.)
 
	  
 	  
 
	  4.
 	  Eligible Mortgages
 
	  
 	  The Mortgage must be a conventional fixed-rate, fully amortizing mortgage with a term of 30 years or less, or a 7/1 adjustable-rate mortgage (Fannie Mae Plans 750 or 751). In
addition, 10/1 adjustable-rate mortgages (Fannie Mae Plans 1423 and 1437) are permitted, but usage is subject to the limitation noted in the Section below entitled, ”Pricing for Cash Deliveries.”
 
	  
 	  
 
	  5.
 	  Underwriting
 
	  
 	 Lender may underwrite the Mortgage through Desktop Underwriter (“DU”) using the Community Lending product screens, by entering the Mortgage as a Fannie 97 Mortgage. If
the DU finding is “ Approve/Eligible,” the waiver of representations and warranties as granted under DU is applicable for the Mortgage, except that the requirement for mortgage insurance in Section 12 below (“Mortgage Insurance”)
is not modified irrespective of any DU message. If the DU finding
 

  Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 97-1
 Amendment
20

	  
 	  is “Approve/Ineligible,” the waiver of representations and warranties as granted under DU is applicable, except that Lender is responsible for determining
that the Mortgage meets all the eligibility criteria for Community 97 as specified in the eligibility matrix in Attachment A attached hereto. If the DU finding is other than “Approve/Eligible” or “Approve/Ineligible,” or
if there is an “Expanded Approval” finding of any kind, manual (non-DU) underwriting is required. Furthermore, nontraditional credit histories will also require manual underwriting. There will be no DU fee charged if the original DU
submission of the Mortgage is made through the Community Lending product screens.
 
	  
 	  
 
	  
 	  For non-DU manual underwriting or manual underwriting that results from a DU finding other than “Approve/Eligible” or “Approve/Ineligible,” in
addition to the limitations or flexibilities specified herein, MyCommunityMortgage allows the underwriting flexibilities of Fannie Mae’s community lending guidelines, including Fannie Mae’s Community Home Buyer’s ProgramSM
model, except that the maximum underwriting ratio shall be 41 percent for the total-expenses-to-income ratio (“single qualifying” ratio, rather than separate housing-expense-to-income and total-expenses-to-income ratios).
 
	  
 	  
 
	 6.
 	  Minimum Down Payment
 
	  
 	  The minimum down payment, the source of which must be from the borrower’s own funds and which is calculated as a percentage of the sales price of the property,
shall be the lesser of 1.00% or $500.00, except for cooperatives for which the minimum down payment is 3.00%.
 
	  
 	  
 
	  7.
 	  Flexible Sources for Borrower Contribution and/or Closing Costs/Prepaids
 
	  
 	  Funds for the borrower’s down payment (except for funds required to be made from the borrower’s own funds) and/or funds for closing costs and/or prepaid
items may be obtained from the “sources of borrower’s funds” as permitted under the Selling Guide, as well as any combination of the following sources (and any amount of the borrower’s contribution in excess of the amount needed
to pay closing costs and/or prepaid items must be applied towards down payment):
 
	  
 	  1.
 	  Gift from a relative (for purposes of MyCommunityMortgage, a relative is defined as the borrower’s spouse, child, dependent, domestic partner, fiance, fiancee,
or any other individual related to the borrower by blood, marriage, adoption or legal guardianship).
 
	  
 	 2.
 	  Unsecured loan or grant from a governmental entity, the borrower’s employer or a nonprofit organization (including churches, but a credit union is not
considered to be a nonprofit organization for the purpose of this paragraph).
 
	  
 	  3.
 	  Secured loan that complies with the terms for Community Seconds mortgages.
 
	  
 	  4.
 	  The following sources may only be used for closing costs and/or prepaid items and may not be used as funds for the borrower’s down payment:
 
	  
 	  
 	  •
 	  Unsecured loan from Lender in accordance with the requirements below:
 
	  
 	  
 	  
 	  •
 	  Lender may finance closing costs with personal (unsecured) loans, provided that the applicable Fannie Mae regional office reviews and approves Lender’s unsecured loan
program in the context of Lender’s Community Reinvestment Act (“CRA”) and Home Mortgage Disclosure Act (“HMDA”) efforts.
 
	  
 	  
 	  
 	  •
 	  The interest rate to the borrower must not be greater than the note rate of the first Mortgage, but the regional office may approve rates of up to two percentage points above
the first Mortgage rate.  In all instances, credit card financing and loans from overdraft protection on checking accounts are not permissible.  In addition, Lender may not charge a borrower in this scenario any origination fees, discount
points, interest rate, or other
 

 Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 97-2
 Amendment 20

	  
 	  
 	  
 	  
 	  fees greater than those charged to other high loan-to-value ratio customers.
 
	  
 	  
 	  
 	  •
 	  Monthly payments for the personal loan must be taken into account in both the total obligations-to-income ratio and the housing expense-to-income ratio. The unsecured loan must
be a fully amortizing term loan, with a fixed-rate and fixed-payments.  (No variable-rate, variable-payment, or balloon loans are permitted.)
 
	  
 	  
 	  
 	  •
 	  Lender’s participation under this section must be specifically approved in advance by the applicable regional office.
 
	  
 	  
 	  
 	  •
 	  A copy of the unsecured loan documents must be placed in the loan file.
 
	  
 	  
 	  •
 	  “Interested party” contribution, as permitted in accordance with the Selling Guide; provided, however, such interested party contribution may not in any
event exceed 3.00% of the lesser of the sales price or appraised value of the property.
 
	  
 	  
 	 •
 	  “Premium pricing” in accordance with the requirements below:
 
	  
 	  
 	  
 	  •
 	  Lender may use the proceeds (referred to herein as the “Premium Pricing Proceeds”) that result from the sale of the Mortgage at a premium, with an interest rate that
is in excess of the then-current market interest rate for like product.
 
	  
 	  
 	  
 	  •
 	  The limitations contained in the Selling Guide relating to contributions by interested parties shall not apply to the Premium Pricing Proceeds.
 
	  
 	  
 	  
 	  
 	  
 
	  8.
 	  Reserves
 
	  
 	 Where the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or “Approve/Ineligible,” Lender must verify the
availability of liquid assets only as directed by DU. For non-DU manual underwriting or manual underwriting that results from a DU finding other than “Approve/Eligible” or “Approve/Ineligible,” Lender need not verify that the
borrower has any minimum level of liquid assets in reserve at closing.
	  
 	  
 
	 9.
 	 Eligible Loan Purpose
	  
 	 All Mortgages must be originated simultaneously under (i) a purchase money transaction or (ii) a “no cash-out” refinance transaction where the refinance
mortgage is equal to the outstanding principal balance of the existing first mortgage (except that the amount may be rounded up to the next $100 increment).
	  
 	  
 
	  10.
 	  Subordinate Financing
 
	  
 	 Subordinate financing must comply with the terms for Community Seconds® mortgages, except that the requirement contained therein for a down payment from the
borrower’s own funds shall be governed by Section 6 above (“Minimum Down Payment”) for the particular option.
	  
 	  
 
	  11.
 	  Credit History
 
	  
 	  If the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or “Approve/Ineligible,” Lender does not need
to evaluate the borrower’s credit history as set forth below.
 
	  
 	  
 
	  
 	 For non-DU manual underwriting, or manual underwriting that results from a DU finding of other than “Approve/Eligible” or “Approve/Ineligible,”
Lender must evaluate the borrower’s credit history using any one of the four options set forth below:
 
	  
 	  (a)
 	  Lender supplements its manual underwriting by obtaining a “representative” credit score (per the Selling Guide) on the borrower that is not less than
600.
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 97-3
 Amendment 20

	  
 	  (b)
 	  Lender does not request a “representative” credit score on the borrower, but instead underwrites the Mortgage using the underwriting guidelines set
forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable traditional credit profile (under Part X, Section 304.01 of the Selling Guide), or if applicable, an acceptable
nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide).  Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies
the requirements of Part X, Section 803.02 of the Selling Guide.
 
	  
 	  (c)
 	  Where Lender requests a “representative” credit score on the borrower, but the borrower has no score due to no credit record with the repository,
Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable nontraditional credit profile (under Part X, Section 304.02
of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.

	  
 	 (d)
 	  Where Lender obtains a “representative” credit score on the borrower, but the score is less than 600, Lender underwrites the Mortgage using any
one of the three options set forth below; provided, however, the borrower will not be eligible where eligibility could only be achieved by combining the following options (for example, “extenuating circumstances” may not be used to
compensate for deficiencies upon application of the criteria for nontraditional credit history):
 
	  
 	  
 	  (1)
 	  The borrower has an insufficient traditional credit history (as documented by reason codes showing lack of credit accounts, accounts not opened long enough, or lack of usage as
the reasons for the low “representative” credit score), and Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable
nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the
requirements of Part X, Section 803.02 of the Selling Guide.
 
	  
 	  
 	  (2)
 	  Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable
traditional credit profile (under Part X, Section 304.01 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the
requirements of Part X, Section 803.02 of the Selling Guide.
 
	  
 	  
 	 (3)
 	  The borrower’s credit history was heavily influenced by credit deficiencies that were the result of a documented “extenuating circumstance,” and the
borrower’s credit history has been reestablished and meets the conditions specified in the Selling Guide for the reestablishment of an acceptable credit history following an “extenuating circumstance” (under Part X, Section
803.02 of the Selling Guide).
 
	  
 	  
 	  
 	  
 
	  
 	  In no circumstance may a nontraditional credit evaluation be used to offset derogatory credit.
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 97 - 4
 Amendment 20

	  12.
 	  Mortgage Insurance
 
	  
 	  MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will obtain “secondary market coverage” (“SMC”) must also comply with the
“secondary market policy” terms of the “Special Requirements” section of this Master Agreement (“SMC Eligible Mortgages”). Lender must comply with the eligibility requirements as determined by the applicable mortgage
insurer. In addition, SMC Eligible Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no. A06303, and (ii) if delivered under Cash Delivery, must be delivered under seller/servicer branch no. 23227-003-9
or 24837-002-5. For SMC Eligible Mortgages, individual loan mortgage insurance providing 35% coverage is required on all Mortgages where the LTV is above 80%. SMC Eligible MyCommunityMortgage Mortgages may be covered under “A Paper” or
“A-Minus” mortgage insurance premium rates as determined by the eligibility requirements of the applicable mortgage insurer.
 
	  
 	  
 
	  
 	 Fannie Mae anticipates that all SMC Eligible Mortgages will be delivered for coverage under SMC. Nevertheless, with respect to Mortgages that do not comply with the
eligibility requirements of the applicable mortgage insurer for such “secondary market policy” terms or that are not otherwise delivered for coverage under SMC (collectively, “Non-SMC Mortgages”), individual loan mortgage
insurance coverage is required as follows: 
 
	  
 	  •
 	  LTV is 90.01% - 97.00%:          35%
 
	  
 	  •
 	  LTV is 85.01% - 90.00%:          30%
 
	  
 	  •
 	  LTV is 80.01% - 85.00%:          25%
 
	  
 	  Non-SMC Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no. to be determined, and (ii) if delivered under Cash
Delivery, must be delivered under seller/servicer branch no. 23227-000-4 or 24837-000-9.
 
	  
 	  
 	  
 
	  
 	 Note: SMC Eligible Mortgages and Non-SMC Mortgages may NOT be delivered under the same Pool Purchase Contract (if delivered under MBS Delivery), or under the same
seller/servicer branch no. (if delivered under Cash Delivery). Nevertheless, SMC Eligible Mortgages may be delivered under the same Pool Purchase Contract or the same seller/servicer branch no. used with non-MyCommunityMortgage loans that comply
with, and are delivered in connection with, the “secondary market policy” terms of the “Special Requirements” section of this Master Agreement.
 
	  
 	  
 	  
 
	  13.
 	  Homebuyer Education
 
	  
 	  All first-time borrowers must complete homebuyer education according to the provisions of the Selling Guide for prepurchase homebuyer education.
 
	  
 	  
 
	  14.
 	  Delinquency Counseling
 
	  
 	  For all borrowers, Lender must follow the requirements of the Selling Guide and the Servicing Guide for postpurchase early delinquency counseling.
 
	  
 	  
 
	  15.
 	  Allocation
 
	  
 	 These terms and conditions do not contain a specific limitation on the aggregate principal amount of Mortgages that Lender may deliver or a date (other than the
applicable Expiration Date) by which Lender must deliver the Mortgages. However, in order to be able to efficiently allocate the resources that Fannie Mae has made available for this pilot, Fannie Mae may from time to time and at any time set a
limit on the aggregate principal amount of Mortgages that Lender may deliver or terminate Lender’s ability to deliver Mortgages under this pilot. If, after giving consideration to the aggregate principal amount of Mortgages that Lender has
delivered and to the
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 97 - 5
 Amendment 20

	  
 	  aggregate principal amount of commitments for such Mortgages that Lender has made, Fannie Mae elects to set a limit or terminate Lender’s participation, Fannie Mae will
give Lender at least 90 days prior written notice of its intent to do so.
 
	  
 	  
 
	  16.
 	  Pricing for Cash Deliveries
 
	  
 	  Cash pricing is available through the MORNET Bulletin section of MORNET Manager. The MORNET Bulletin for Cash Pricing is contained in the Secondary Marketing section (Fannie Mae
Pricing; Cash Pricing) of MORNET Manager. The selection is “MyCommunityMortgage Products.” The option for pricing using “Secondary Market Coverage” must be selected for Mortgages delivered for coverage under SMC, and the option
for pricing using “standard” mortgage insurance must be selected for Non-SMC Mortgages. Cash Pricing screens are available for 30-year fixed-rate mortgages and for 7/1 ARMs (Fannie Mae Plans 750 and 751). For fixed-rate mortgages with
terms of less than 30 years, Lender must contact Fannie Mae’s Cash Commitment window at 1-800-752-1080, option #5 Negotiated Pricing, and obtain a negotiated Cash Delivery commitment. For 10/1 ARMs (Fannie Mae Plans 1423 and 1437), screens are
not available, and Lender must contact Fannie Mae’s Cash Commitment window to obtain a negotiated commitment.
 
	  
 	  
 
	 18.
 	  Special Feature Code
 
	  
 	  For all Mortgages originated under these terms and conditions, Lender is required to enter Special Feature Code “460” on the Loan Schedule (Form 1068) or
Schedule of Mortgages (Form 2005).
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 97 - 6
 Amendment 20

   ATTACHMENT A
  MyCommunityMortgage Pilot Eligibility Matrix

	 Product Option
 	   
 	 Loan Type
 	   
 	 Purpose
 	   
 	 Occupancy
 	   
 	 Other Property Owned
 	   
 	 Non-Occupant Co-borrower
 	   
 	 Units/Type
 	   
 	 Maximum LTV
 	   
 	 Maximum CLTV
 	   
 	 Borrower Income
 	   
 	 Subordinate Financing
 	   
 	 MI Coverage
 	   
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 Community 97
 	  
 	 Fixed-Rate Mortgage, 7/1 or 10/1 ARMS (no ARMS where EEM guidelines used)
 	  
 	 PMM or No Cash-Out Refinance (Existing UPB of first mortgage 
 rounded to the nearest $100)
 	  
 	 Owner-Occupied
 	  
 	 None
 	  
 	 Not Allowed
 	  
 	 One Unit*
 	  
 	 97
 	 %**
 	 105
 	 %
 	 If borrower income exceeds area median income limitations, verify
 property is in a FannieNeighbors location through Fannie Mae’s geocoding service through
efanniemae.com
 	  
 	 Must meet Community Seconds guidelines
 	  
 	 For SMC-Eligible = 35%
 For SMC-lneligible = 35% for
 LTVs of over 90-100%
 30% for LTVs of over 85-90%
 25% for LTVs of over 80-85%
 	  
 
	 Community 100
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 100
 	 %
 	  
 	  
 	  
 
	 Community 100 Plus
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 Community 2-Family
 	  
 	  
 	  
 	  
 	  
 	  
 	 2 Units
 	  
 	 95
 	 %
 	  
 	  
 	  
 

 

	  *
 	  Includes condos, PUDs, manufactured housing. Coops allowed for Community 97 only. Provided, however, where EEM guidelines used, no manufactured housing and no coops
allowed.
 
	  **
 	  90% for coops.
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 97 -
7
 Amendment 20

   August 2002
  Fannie Mae
  MyCommunityMortgageSM; Community 100 Plus
  Terms and Conditions
  The following
terms and conditions apply to certain Mortgages (described below), which are eligible for purchase for cash or MBS under Fannie Mae’s MyCommunityMortgageSM pilot (“MyCommunityMortgage”) for the Community 100
PlusSM option. The term “Lender” refers to the Fannie Mae seller/servicer to which these terms and conditions are being issued. Except as provided herein, all other requirements of the Selling Guide (as updated) must be
followed.

	  1.
 	  Loan-to-Value Ratio
 
	  
 	  The maximum loan-to-value ratio (“LTV”) is 100%, which percentage is calculated from the lower of the sales price or the appraised value of the property.

	  
 	  
 
	 2.
 	  Eligible Properties
 
	  
 	  Eligible properties are owner-occupied, principal residences that consist of one unit, including manufactured housing and units in condominiums and planned unit developments
(“PUDs”) that conform with any related Fannie Mae requirements. Both existing structures and new construction are eligible, but coops are ineligible.
 
	  
 	  
 
	  3.
 	  Borrower Income
 
	  
 	  The borrower’s income may not exceed 100% of the median income that HUD publishes for the property’s location, except for (i) higher income limits allowed for certain
high-cost areas as specified in the Selling Guide, and (ii) an income limit of 115% of the HUD-published median in nonmetropolitan counties and (iii) borrower incomes imposed by other organizations (such as when a housing finance agency or an
employer provides down payment or closing cost assistance), as specified in the Selling Guide.
 
	  
 	  
 
	  
 	  Borrower income limitations are not applicable, however, in neighborhoods that qualify as FannieNeighbors” locations; FannieNeighbors locations are specified in the Selling
Guide. (A geocoding service is currently available on Fannie Mae’s web site, www.efanniemae.com, to assist lenders in determining whether a particular property is in an eligible FannieNeighbors area.)
 
	  
 	  
 
	 4.
 	  Eligible Mortgages
 
	  
 	  The Mortgage must be a conventional fixed-rate, fully amortizing mortgage with a term of 30 years or less, or a 7/1 adjustable-rate mortgage (Fannie Mae Plans 750 or 751). In
addition, 10/1 adjustable-rate mortgages (Fannie Mae Plans 1423 and 1437) are permitted, but usage is subject to the limitation noted in the Section below entitled, “Pricing for Cash Deliveries.”
 
	  
 	  
 
	  5.
 	  Underwriting
 
	  
 	  Lender may underwrite the Mortgage through Desktop Underwriter (“DU”) using the Community Lending product screens, by entering the Mortgage as a Fannie 97 mortgage. If
the DU finding is “Approve/Eligible,” the waiver of representations and warranties as granted under DU is applicable for the Mortgage, except that the requirement for mortgage insurance in Section 12 (“Mortgage Insurance”) below
is not modified irrespective of any DU message. If the DU finding is “Approve/Ineligible,” the waiver of representations and warranties as granted under DU is
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 100 Plus - 1
 Amendment 20

	  
 	  applicable, except that Lender is responsible for determining that the Mortgage meets all the eligibility criteria for Community 100 Plus as specified in the
eligibility matrix in Attachment A attached hereto. If the DU finding is other than “Approve/Eligible” or “Approve/Ineligible,” or if there is an “Expanded Approval” finding of any kind, manual (non-DU)
underwriting is required. Furthermore, nontraditional credit histories will also require manual underwriting. There will be no DU fee charged if the original DU submission of the Mortgage is made through the Community Lending product
screens.
 
	  
 	  
 
	  
 	 For non-DU manual underwriting or manual underwriting that results from a DU finding other than “Approve/Eligible” or “Approve/Ineligible,” in
addition to the limitations or flexibilities specified herein, MyCommunityMortgage allows the underwriting flexibilities of Fannie Mae’s community lending guidelines, including Fannie Mae’s Community Home Buyer’s ProgramSM model,
except that the maximum underwriting ratio shall be 41 percent for the total-expenses-to-income ratio (“single qualifying” ratio, rather than separate housing-expense-to-income and total-expenses-to-income ratios).
 
	  
 	  
 
	  6.
 	  Minimum Borrower Contribution
 
	  
 	  The minimum required contribution by the borrower to the transaction, the source of which must be from the borrower’s own funds and which is calculated as a
percentage of the sales price of the property, shall be the lesser of 1.00% or $500.00. These funds may be used for closing costs, prepaid items, and/or down payment, if desired.
 
	  
 	  
 
	  7.
 	  Sources for Closing Costs/Prepaids
 
	  
 	  Funding in addition to the minimum borrower contribution may be obtained from the “sources of borrower’s funds” as permitted under the Selling Guide,
as well as any combination of the following sources:
 
	  
 	 1.
 	  Gift from a relative (for purposes of MyCommunityMortgage, a relative is defined as the borrower’s spouse, child, dependent, domestic partner, fiance, fiancee,
or any other individual related to the borrower by blood, marriage, adoption or legal guardianship).
 
	  
 	  2.
 	  Unsecured loan or grant from a governmental entity, the borrower’s employer or a nonprofit organization (including churches, but a credit union is not
considered to be a nonprofit organization for the purpose of this paragraph).
 
	  
 	  3.
 	  Secured loan that complies with the terms for Community Seconds mortgages.
 
	  
 	  4.
 	  The following sources may only be used for closing costs and/or prepaid items and may not be used as funds for the borrower’s down payment:
 
	  
 	  
 	  •
 	  Unsecured loan from Lender in accordance with the requirements below:
 
	  
 	  
 	  
 	  •
 	  Lender may finance closing costs with personal (unsecured) loans, provided that the applicable Fannie Mae regional office reviews and approves Lender’s unsecured loan
program in the context of Lender’s Community Reinvestment Act (“CRA”) and Home Mortgage Disclosure Act (“HMDA”) efforts.
 
	  
 	  
 	  
 	 •
 	  The interest rate to the borrower must not be greater than the note rate of the first Mortgage, but the regional office may approve rates of up to two percentage points above
the first Mortgage rate. In all instances, credit card financing and loans from overdraft protection on checking accounts are not permissible.  In addition, Lender may not charge a borrower in this scenario any origination fees, discount
points, interest rate, or other fees greater than those charged to other high loan-to-value ratio customers.
 

  Master Agreement MA02373.2
 HCD -
MyCommunityMortgage - Community 100 Plus - 2
 Amendment 20

	  
 	  
 	  
 	  •
 	  Monthly payments for the personal loan must be taken into account in both the total obligations-to-income ratio and the housing expense-to-income ratio. The unsecured loan must
be a fully amortizing term loan, with a fixed-rate and fixed-payments. (No variable-rate, variable-payment, or balloon loans are permitted.)
 
	  
 	  
 	  
 	  •
 	  Lender’s participation under this section must be specifically approved in advance by the applicable regional office.
 
	  
 	  
 	  
 	  •
 	  A copy of the unsecured loan documents must be placed in the loan file.
 
	  
 	  
 	 •
 	  “Interested party” contribution, as permitted in accordance with the Selling Guide; provided, however, such interested party contribution may not in any
event exceed 3.00% of the lesser of the sales price or appraised value of the property. If an interested party contribution in any amount is provided, the Mortgage is ineligible for delivery to Fannie Mae for MBS where the LTV is 100%; in such
cases, Mortgages would only be eligible for cash delivery. Where the LTV is 100%, Lender represents and warrants that no Mortgage will be delivered for MBS to Fannie Mae if there is any interested party contribution. If the LTV is less than 100%,
and an interested party contribution is utilized, Lender shall add the LTV to the interested party contribution, as a percentage, to determine MBS delivery eligibility. For example:
 
	  
 	  
 	  
 	  •
 	  An LTV of 98% plus an interested party contribution of 3% would equal 101%, making the loan ineligible for MBS delivery.
 
	  
 	  
 	  
 	  •
 	  An LTV of 98% plus an interested party contribution of 2% would equal 100%, making the loan eligible for MBS delivery.
 
	  
 	  
 	  •
 	  “Premium pricing” in accordance with the requirements below:
 
	  
 	  
 	  
 	 •
 	  Lender may use the proceeds (referred to herein as the “Premium Pricing Proceeds”) that result from the sale of the Mortgage at a premium, with an interest rate that
is in excess of the then-current market interest rate for like product.
 
	  
 	  
 	  
 	  •
 	  The limitations contained in the Selling Guide relating to contributions by interested parties shall not apply to the Premium Pricing Proceeds.
 
	  
 	  
 	  
 	  
 	  
 
	 8.	 Reserves
	 	 Where the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or “Approve/Ineligible,” Lender must verify the
availability of liquid assets as directed by DU. For non-DU manual underwriting or manual underwriting that results from a DU finding other than “Approve/Eligible” or “Approve/Ineligible,” Lender need not verify that the borrower
has any minimum level of liquid assets in reserve at closing.
 
	  	  
	 9.	 Eligible Loan Purpose
	  	  All Mortgages must be originated simultaneously under (i) a purchase money transaction or (ii) a “no cash-out” refinance transaction where the refinance
mortgage is equal to the outstanding principal balance of the existing first mortgage (except that the amount may be rounded up to the next $100 increment).
 
	  
 	  
 
	  10.
 	  Subordinate Financing
 
	  
 	  Subordinate financing must comply with the terms for Community Seconds® mortgages, except that the requirement contained therein for a down payment from the
borrower’s own funds shall be governed by Section 6 above (entitled “Minimum Borrower Contribution”) for the particular option.
 

  Master Agreement
MA02373.2
 HCD - MyCommunityMortgage - Community 100 Plus - 3
 Amendment 20

	  11.
 	  Credit History
 
	  
 	  If the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or “Approve/Ineligible,” Lender does not need
to evaluate the borrower’s credit history as set forth below.
 
	  
 	  
 	  
 	  
 	  
 
	  
 	 For non-DU manual underwriting, or manual underwriting that results from a DU finding of other than “Approve/Eligible” or “Approve/Ineligible,”
Lender must evaluate the borrower’s credit history using any one of the four options set forth below:
 
	  
 	  (a)
 	  Lender supplements its manual underwriting by obtaining a “representative” credit score (per the Selling Guide) on the borrower that is not less than
620.
 
	  
 	  (b)
 	  Lender does not request a “representative” credit score on the borrower, but instead underwrites the Mortgage using the underwriting guidelines set
forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable traditional credit profile (under Part X, Section 304.01 of the Selling Guide), or if applicable, an acceptable
nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide).  Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies
the requirements of Part X, Section 803.02 of the Selling Guide.
 
	  
 	  (c)
 	  Where Lender requests a “representative” credit score on the borrower, but the borrower has no score due to no credit record with the repository,
Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable nontraditional credit profile (under Part X, Section 304.02
of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.

	  
 	 (d)
 	  Where Lender obtains a “representative” credit score on the borrower, but the score is less than 620, Lender underwrites the Mortgage using any
one of the three options set forth below; provided, however, the borrower will not be eligible where eligibility could only be achieved by combining the following options (for example, “extenuating circumstances” may not be used to
compensate for deficiencies upon application of the criteria for nontraditional credit history):
 
	  
 	  
 	  (1)
 	  The borrower has an insufficient traditional credit history (as documented by reason codes showing lack of credit accounts, accounts not opened long enough, or lack
of usage as the reasons for the low “representative” credit score), and Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an
acceptable nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that
satisfies the requirements of Part X, Section 803.02 of the Selling Guide.
 
	  
 	  
 	  (2)
 	  Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an
acceptable traditional credit profile (under Part X, Section 304.01 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that
satisfies the requirements of Part X, Section 803.02 of the Selling Guide.
 

 Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 100 Plus - 4

Amendment 20

	  
 	  
 	  (3)
 	  The borrower’s credit history was heavily influenced by credit deficiencies that were the result of a documented “extenuating circumstance,” and the
borrower’s credit history has been reestablished and meets the conditions specified in the Selling Guide for the reestablishment of an acceptable credit history following an “extenuating circumstance” (under Part X, Section
803.02 of the Selling Guide).
 
	  
 	  
 	  
 	  
 
	  
 	  In no circumstance may a nontraditional credit evaluation be used to offset derogatory credit.
 
	  
 	  
 
	  12.
 	  Mortgage Insurance
 
	  
 	 MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will obtain “secondary market coverage” (“SMC”) must also comply with the
“secondary market policy” terms of the “Special Requirements” section of this Master Agreement (“SMC Eligible Mortgages”). Lender must comply with the eligibility requirements as determined by the applicable mortgage
insurer. In addition, SMC Eligible Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no. A06304, and (ii) if delivered under Cash Delivery, must be delivered under seller/servicer branch no. 23227-003-9
or 24837-002-5. For SMC Eligible Mortgages, individual loan mortgage insurance providing 35% coverage is required on all Mortgages where the LTV is above 80%. SMC Eligible MyCommunityMortgage Mortgages may be covered under “A Paper” or
“A-Minus” mortgage insurance premium rates as determined by the eligibility requirements of the applicable mortgage insurer. 
	  
 	  
 
	  
 	 Fannie Mae anticipates that all SMC Eligible Mortgages will be delivered for coverage under SMC. Nevertheless, with respect to Mortgages that do not comply with the
eligibility requirements of the applicable mortgage insurer for such “secondary market policy” terms or that it not otherwise delivered for coverage under SMC (collectively, “Non-SMC Mortgages”), individual loan mortgage
insurance coverage is required as follows:
 
	  
 	  •
 	  LTV is 90.01% - 100.00%:            35%
 
	  
 	  •
 	  LTV is 85.01% - 90.00%:              30%
 
	  
 	  •
 	  LTV is 80.01% - 85.00%:              25%
 
	  
 	  Non-SMC Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no. to be determined, and (ii) if delivered under Cash
Delivery, must be delivered under seller/servicer branch no. 23227-000-4 or 24837-000-9.
 
	  
 	  
 
	  
 	 Note: SMC Eligible Mortgages and Non-SMC Mortgages may NOT be delivered under the same Pool Purchase Contract (if delivered under MBS Delivery), or under the same
seller/servicer branch no. (if delivered under Cash Delivery). Nevertheless, SMC Eligible Mortgages may be delivered under the same Pool Purchase Contract or the same seller/servicer branch no. used with non-MyCommunityMortgage loans that comply
with, and are delivered in connection with, the “secondary market policy” terms of the “Special Requirements” section of this Master Agreement.
 
	  
 	  
 
	  
 	  The Lender is responsible for determining applicable state requirements relating to mortgage insurance availability for Mortgages having LTVs over 97%. If the
specified mortgage insurance coverage is not available with respect to any mortgage, then such mortgage is ineligible for delivery to Fannie Mae.
 
	  
 	  
 
	  13.
 	  Homebuyer Education
 
	  
 	  All first-time borrowers must complete homebuyer education according to the provisions of the Selling Guide for prepurchase homebuyer education.
 
					

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 100 Plus - 5
 Amendment 20

	 14.
 	  Delinquency Counseling
 
	  
 	  For all borrowers, Lender must follow the requirements of the Selling Guide and the Servicing Guide for postpurchase early delinquency counseling.
 
	  
 	  
 
	  15.
 	  Allocation
 
	  
 	  These terms and conditions do not contain a specific limitation on the aggregate principal amount of Mortgages that Lender may deliver or a date (other than the applicable
Expiration Date) by which Lender must deliver the Mortgages. However, in order to be able to efficiently allocate the resources that Fannie Mae has made available for this pilot, Fannie Mae may from time to time and at any time set a limit on the
aggregate principal amount of Mortgages that Lender may deliver or terminate Lender’s ability to deliver Mortgages under this pilot. If, after giving consideration to the aggregate principal amount of Mortgages that Lender has delivered and to
the aggregate principal amount of commitments for such Mortgages that Lender has made, Fannie Mae elects to set a limit or terminate Lender’s participation, Fannie Mae will give Lender at least 90 days prior written notice of its intent to do
so.
 
	  
 	  
 
	  16.
 	  Pricing for Cash Deliveries
 
	  
 	 Cash pricing is available through the MORNET Bulletin section of MORNET Manager. The MORNET Bulletin for Cash Pricing is contained in the Secondary Marketing section (Fannie Mae
Pricing; Cash Pricing) of MORNET Manager. The selection is “MyCommunityMortgage Products.” The option for pricing using “Secondary Market Coverage” must be selected for Mortgages delivered for coverage under SMC, and the option
for pricing using “standard” mortgage insurance must be selected for Non-SMC Mortgages. Cash Pricing screens are available for 30-year fixed-rate mortgages and for 7/1 ARMs (Fannie Mae Plans 750 and 751). For fixed-rate mortgages with
terms of less than 30 years, Lender must contact Fannie Mae’s Cash Commitment window at 1-800-752-1080, option #5 Negotiated Pricing, and obtain a negotiated Cash Delivery commitment. For 10/1 ARMs (Fannie Mae Plans 1423 and 1437), screens are
not available, and Lender must contact Fannie Mae’s Cash Commitment window to obtain a negotiated commitment.
 
	  
 	  
 
	  17.
 	  Special Feature Code
 
	  
 	  For all Mortgages originated under these terms and conditions, Lender is required to enter Special Feature Code “480” on the Loan Schedule (Form 1068) or
Schedule of Mortgages (Form 2005).
 

  Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 100 Plus - 6
 Amendment 20

   ATTACHMENT A
  MyCommunityMortgage Pilot Eligibility Matrix

	 Product Option
 	   
 	 Loan Type
 	   
 	 Purpose
 	   
 	 Occupancy
 	   
 	 Other Property Owned
 	   
 	 Non-Occupant Co-borrower
 	   
 	 Units/Type
 	   
 	 Maximum LTV
 	   
 	 Maximum CLTV
 	   
 	 Borrower Income
 	   
 	 Subordinate Financing
 	   
 	 MI Coverage
 	   
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 
	 Community 97
 	  
 	 Fixed-Rate Mortgage, 7/1 or 10/1 ARMS (no ARMS where EEM guidelines used)
 	  
 	 PMM or No Cash-Out Refinance (Existing UPB of first mortgage 
 rounded to the nearest $100)
 	  
 	 Owner-Occupied
 	  
 	 None
 	  
 	 Not Allowed
 	  
 	  
 	  
 	 97
 	 %**
 	 105
 	 %
 	 If borrower income exceeds area median income limitations, verify
 property is in a FannieNeighbors location through Fannie Mae’s geocoding service through
efanniemae.com
 	  
 	 Must meet Community Seconds guidelines
 	  
 	 For SMC-Eligible = 35%
 For SMC-lneligible = 35% for
 LTVs of over 90-100%
 30% for LTVs of over 85-90%
 25% for LTVs of over 80-85%
 	  
 
	 Community 100
 	  
 	  
 	  
 	  
 	  
 	  
 	 One Unit*
 	  
 	 100
 	 %
 	  
 	  
 	  
 
	 Community 100 Plus
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 Community 2-Family
 	  
 	  
 	  
 	  
 	  
 	  
 	 2 Units
 	  
 	 95
 	 %
 	  
 	  
 	  
 

 

	  *
 	  Includes condos, PUDs, manufactured housing. Coops allowed for Community 97 only. Provided, however, where EEM guidelines used, no manufactured housing and no coops
allowed.
 
	  **
 	  90% for coops
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage - Community 100
Plus - 7
 Amendment 20

   August 2002
  Fannie Mae
  MyCommunityMortgageSM; Community Solutions 100SM
  Terms and Conditions
  The following terms and conditions apply to certain Mortgages (described below), which are eligible for purchase for cash or MBS under Fannie Mae’s MyCommunityMortgageSM pilot (“MyCommunityMortgage”)
for the Community SolutionsSM 100 product. The term “Lender” refers to the Fannie Mae seller/servicer to which these terms and conditions are being issued. Except as provided herein, all other requirements of the Selling Guide
(as updated) must be followed.

	  1.
 	  Borrower Eligibility
 
	  
 	  Community Solutions 100 offers “Teacher A+,” “Safety 1st” and “HealthCare Worker+” borrower options, as described below. In the case of
co-borrowers, Community Solutions is available if at least one of the co-borrowers qualifies under one of the Teacher A+, Safety 1st or HealthCare Worker+ borrower options described below.
 
	  
 	  
 
	  
 	 To be eligible for Teacher A+, the borrower must be:
 
	  
 	  a)
 	  a full time employee at the elementary or secondary education level in a public or private school (in any capacity, including but not limited to teacher, administrator,
librarian, counselor, administrative support and custodial staff) who is either (i) state certified, (ii) in the process of becoming state certified, or (iii) employed by a school that is recognized by a state or accredited by a state or regional
accrediting association; or
 
	  
 	  b)
 	  a full time teacher or administrator at the elementary or secondary education levels working at a federal, state, county, or municipal education agency and who is either state
certified or in the process of becoming state certified.
 
	  
 	  
 	  
 
	  
 	  To be eligible for Safety 1st, the borrower must be:
 
	  
 	  a)
 	  a full-time sworn employee of a police department, sheriff’s office, corrections department, or other law enforcement agency which is a part of or administered by the
federal government, a state, a county, a city, or other political subdivision of a state, a commission created by an interstate compact, a university, a hospital, a utility or an airport or port authority who is responsible for the prevention and
detection of crime, the enforcement of the penal, traffic or highway laws or the incarceration or detention of offenders; or
 
	  
 	 b)
 	  a full-time sworn member of a local, state, or federal fire department or agency and be responsible for at least one of the following: fire suppression, emergency medical
response and patient care, fire and injury prevention, arson investigation, hazardous materials incident response and management, and/or response to acts of terrorism.
 
	  
 	  
 	  
 
	  
 	  To be eligible for HealthCare Worker+, the borrower must:
 
	  
 	  (a)
 	  be a full-time employee of an employer that offers its employees an employer-assisted housing benefit (“EAH”--an employee benefit designed to assist in the
employee’s housing needs, and may involve a grant, a loan, shared appreciation, monthly payment assistance, counseling or otherwise); provided, however, the borrower need not be a participant in the employer’s EAH, and

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage; Community Solutions 100 - 1
 Amendment 20

	  
 	  (b)
 	  be employed by that employer in one of the following positions:
 
	  
 	  
 	  1.
 	  registered nurse (RN), licensed practical nurse (LPN) or licensed vocational nurse (LVN); or
 
	  
 	  
 	 2.
 	  nursing assistant who is (i) certified, licensed or accredited by the applicable state agency or has successfully completed training mandated by the applicable state agency, and
(ii) designated as a certified nursing assistant (CNA), advanced unlicensed assistant (AUA) or unlicensed assistive personnel (UAP); or
 
	  
 	  
 	  3.
 	  physician’s assistant or medical technician, technologist or therapist who is certified, licensed or accredited by the applicable state agency or has successfully completed
training mandated by the applicable state agency; or
 
	  
 	  
 	  4.
 	  licensed pharmacist or pharmacy technician who is certified, licensed or accredited by the applicable state agency.
 
	  
 	  
 	  
 	  
 
	  
 	  (For purposes of Community Solutions 100, “state” includes any state of the United States, the District of Columbia, or the Commonwealth of Puerto
Rico.)
 
	  
 	  
 
	  2.
 	  Loan-to-Value Ratio
 
	  
 	 The maximum loan-to-value ratio (“LTV”) is 100%, which percentage is calculated from the lower of the sales price or the appraised value of the
property.
 
	  
 	  
 
	  3.
 	  Eligible Properties
 
	  
 	  Eligible properties are owner-occupied, principal residences that consist of one unit, including manufactured housing and units in condominiums and planned unit
developments (“PUDs”) that conform with any related Fannie Mae requirements. Both existing structures and new construction are eligible, but cooperatives are ineligible.
 
	  
 	  
 
	  4.
 	  Borrower Income
 
	  
 	  The borrower’s income may not exceed 100% of the median income that HUD publishes for the property’s location, except for (i) higher income limits allowed
for certain high-cost areas as specified in the Selling Guide, and (ii) an income limit of 115% of the HUD-published median in nonmetropolitan counties and (iii) borrower incomes imposed by other organizations (such as when a housing finance agency
or an employer provides down payment or closing cost assistance), as specified in the Selling Guide.
 
	  
 	  
 
	  
 	 Borrower income limitations are not applicable, however, in neighborhoods that qualify as FannieNeighbors® locations; FannieNeighbors locations are specified in
the Selling Guide. (A geocoding service is currently available on Fannie Mae’s web site, www.efanniemae.com, to assist lenders in determining whether a particular property is in an eligible FannieNeighbors area.)
 
	  
 	  
 
	  5.
 	  Eligible Mortgages
 
	  
 	  The Mortgage must be a conventional fixed-rate, fully amortizing mortgage with a term of 30 years or less, or 7/1 or 10/1 adjustable-rate mortgage (Fannie Mae Plans
750, 751, 1423 or 1437) -“Eligible ARMs”.
 
	  
 	  
 
	  6.
 	  Underwriting
 
	  
 	  Lender may underwrite the Mortgage through Desktop Underwriter (“DU”) using the Community Lending product screens, by entering the Mortgage as a Fannie 97
mortgage. If the DU finding is “Approve/Eligible,” the waiver of representations and warranties as granted under DU is
 

  Master Agreement MA02373.2

HCD - MyCommunityMortgage; Community Solutions 100 - 2
 Amendment 20

	  
 	 applicable for the Mortgage, except that the requirement for individual-loan mortgage insurance as provided herein below is not modified irrespective of any DU
message. If the DU finding is “Approve/Ineligible,” the waiver of representations and warranties as granted under DU is applicable, except that Lender is responsible for determining that the Mortgage meets all the eligibility criteria for
Community Solutions 100 as specified in the eligibility matrix in Attachment A hereto. If the DU finding is other than “Approve/Eligible” or “Approve/Ineligible,” or if there is an “Expanded Approval” finding of any
kind, manual (non-DU) underwriting is required. Furthermore, nontraditional credit histories will also require manual underwriting. There will be no DU fee charged if the original DU submission of the Mortgage is made through the Community Lending
product screens.
 
	  
 	  
 
	  
 	  For non-DU manual underwriting or manual underwriting that results from a DU finding other than “Approve/Eligible” or “Approve/Ineligible,” in
addition to the limitations or flexibilities specified herein, MyCommunityMortgage allows the underwriting flexibilities of Fannie Mae’s community lending guidelines, including Fannie Mae’s Community Home Buyer’s ProgramSM model,
except that the maximum underwriting ratio shall be 45 percent for the total-expenses-to-income ratio (“single qualifying” ratio, rather than separate housing-expense-to-income and total-expenses-to-income ratios), except where there is a
temporary interest rate buydown (the temporary interest rate buydown must comply with the guidelines contained in the section below entitled “Buydowns”), and in that situation, the maximum single qualifying ratio shall be 43
percent.
 
	  
 	  
 
	 7.
 	  Part-Time and Overtime Income
 
	  
 	  Overtime and part-time income can be used to qualify the borrower if the employer verifies that the borrower has received such income for the last 12 months and
indicates that the overtime and/or part-time income will in all probability continue. Lender must develop an average of overtime and/or part-time income over the last 12 months to determine the amount of income that can be considered in evaluating
the borrower’s qualifications.
 
	  
 	  
 
	  8.
 	  Minimum Borrower Contribution from the Borrower’s Own Funds
 
	  
 	  The minimum required contribution by the borrower to the transaction, the source of which must be from the borrower’s own funds and which is calculated as a
percentage of the sales price of the property, shall be the lesser of 1.00% or $500.00. These funds may be used for closing costs, prepaid items, and/or down payment, if desired.
 
	  
 	  
 
	  9.
 	  Sources for Closing Costs/Prepaids
 
	  
 	  Funding in addition to the minimum borrower contribution may be obtained from the “sources of borrower’s funds” as permitted under the Selling Guide,
as well as any combination of the following sources:
 
	  
 	  
 	  
 	  
 
	  
 	 a)
 	  Gift from a relative (for purposes of these terms and conditions, a relative is defined as the borrower’s spouse, child, dependent, domestic partner,
fiancé, fiancée, or any other individual related to the borrower by blood, marriage, adoption or legal guardianship).
 
	  
 	  b)
 	  Unsecured loan or grant from a governmental entity, the borrower’s employer or a nonprofit organization (including churches, but a credit union is not
considered to be a nonprofit organization for the purpose of this paragraph).
 
	  
 	  c)
 	  Secured loan that complies with the terms for Community Seconds mortgages.
 
	  
 	  d)
 	  The following sources may only be used for closing costs and/or prepaid items and may not be used as funds for the borrower’s down payment:
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage; Community Solutions 100 - 3
 Amendment 20

	  
 	  
 	  •
 	  Unsecured loan from Lender in accordance with the requirements below:
 
	  
 	  
 	  
 	 •
 	  Lender may finance closing costs with personal (unsecured) loans, provided that the applicable Fannie Mae regional office reviews and approves Lender’s unsecured loan
program in the context of Lender’s Community Reinvestment Act (“CRA”) and Home Mortgage Disclosure Act (“HMDA”) efforts.
 
	  
 	  
 	  
 	  •
 	  The interest rate to the borrower must not be greater than the note rate of the first Mortgage, but the regional office may approve rates of up to two percentage points above
the first Mortgage rate.  In all instances, credit card financing and loans from overdraft protection on checking accounts are not permissible.   In addition, Lender may not charge a borrower in this scenario any origination
fees, discount points, interest rate, or other fees greater than those charged to other high loan-to-value ratio customers.
 
	  
 	  
 	  
 	  •
 	  Monthly payments for the personal loan must be taken into account in both the total obligations-to-income ratio and the housing expense-to-income ratio. The unsecured loan must
be a fully amortizing term loan, with a fixed-rate and fixed-payments.  (No variable-rate, variable-payment, or balloon loans are permitted.)
 
	  
 	  
 	  
 	  •
 	  Lender’s participation under this section must be specifically approved in advance by the applicable regional office.
 
	  
 	  
 	  
 	 •
 	  A copy of the unsecured loan documents must be placed in the loan file.
 
	  
 	  
 	  •
 	  “Interested party” contribution, as permitted in accordance with the Selling Guide; provided, however, such interested party contribution may not in any
event exceed 3.00% of the lesser of the sales price or appraised value of the property. If an interested party contribution in any amount is provided, the Mortgage is ineligible for delivery to Fannie Mae for MBS where the LTV is 100%; in such
cases, Mortgages would only be eligible for cash delivery. Where the LTV is 100%, Lender represents and warrants that no Mortgage will be delivered for MBS to Fannie Mae if there is any interested party contribution. If the LTV is less than 100%,
and an interested party contribution is utilized, Lender shall add the LTV to the interested party contribution, as a percentage, to determine MBS delivery eligibility. For example:
 
	  
 	  
 	  
 	  •
 	  An LTV of 98% plus an interested party contribution of 3% would equal 101%, making the loan ineligible for MBS delivery.
 
	  
 	  
 	  
 	  •
 	  An LTV of 98% plus an interested party contribution of 2% would equal 100%, making the loan eligible for MBS delivery.
 
	  
 	  
 	 •
 	  “Premium pricing” in accordance with the requirements below:
 
	  
 	  
 	  
 	  •
 	  Lender may use the proceeds (referred to herein as the “Premium Pricing Proceeds”) that result from the sale of the Mortgage at a premium, with an interest rate that
is in excess of the then-current market interest rate for like product.
 
	  
 	  
 	  
 	  •
 	  The limitations contained in the Selling Guide relating to contributions by interested parties shall not apply to the Premium Pricing Proceeds.
 
	  
 	  
 	  
 	  
 	  
 
	  10.
 	  Reserves
 
	  
 	  Where the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or “Approve/Ineligible,” Lender must verify the
availability of liquid assets as directed by DU. For non-DU manual underwriting or manual underwriting that results from a DU finding other than “Approve/Eligible” or “Approve/Ineligible,” Lender must verify that the

 Master Agreement MA02373.2
 HCD - MyCommunityMortgage; Community Solutions 100 - 4
 Amendment 20

	  
 	  borrower has sufficient liquid assets in reserve at closing equal to at least one mortgage payment, and such reserve may include funds received by the borrower as a
gift (gifts for purposes of such reserve include funds received from a relative or from a church, municipality, employer, or nonprofit organization).
 
	  
 	  
 
	  11.
 	  Buydowns
 
	  
 	  A temporary interest rate buydown not to exceed one-half of one percent for the first three years of the Mortgage is permitted. Borrower will be underwritten at the
bought-down interest rate. The buydown must otherwise meet the requirements of the Guides, including the allowance for buydown funds to come from any source or combination of sources (including Lender, foundations, places of worship, labor unions,
employers or their designees, public agencies and nonprofits).
 
	  
 	  
 
	  12.
 	  Eligible Loan Purpose
 
	  
 	  All Mortgages must be originated simultaneously under (i) a purchase money transaction or (ii) a “no cash-out” refinance transaction where the refinance
mortgage is equal to the outstanding principal balance of the existing first mortgage (except that the amount may be rounded up to the next $100 increment).
 
	  
 	  
 
	 13.
 	  Subordinate Financing
 
	  
 	  Subordinate financing must comply with the terms for Community Seconds mortgages, except that the requirement contained therein for a down payment from the
borrower’s own funds shall be governed by Section 8 above (entitled “Minimum Borrower Contribution”) for the particular option.
 
	  
 	  
 
	  14.
 	  Credit History
 
	  
 	  If the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or “Approve/Ineligible,” Lender does not need
to evaluate the borrower’s credit history as set forth below.
 
	  
 	  
 
	  
 	  For non-DU manual underwriting, or manual underwriting that results from a DU finding of other than “Approve/Eligible” or “Approve/Ineligible,”
Lender must evaluate the borrower’s credit history using any one of the four options set forth below:
 
	  
 	  (a)
 	  Lender supplements its manual underwriting by obtaining a “representative” credit score on the borrower that is not less than 620.
 
	  
 	 (b)
 	  Lender does not request a “representative” credit score on the borrower, but instead underwrites the Mortgage using the underwriting guidelines set
forth in the Selling Guide for Community Lending mortgages coupled with the development of:
 
	  
 	  
 	  (1)
 	  an acceptable traditional credit profile (under Part X, Section 304.01 of the Selling Guide), or
 
	  
 	  
 	  (2)
 	  when the borrower does not have the type of credit that is traditionally reported to a credit repository, an acceptable nontraditional credit profile (under Part
X, Section 304.02 of the Selling Guide), or
 
	  
 	  
 	  (3)
 	  when the borrower has not yet established a credit history or does not have sufficient credit documentation to meet the requirements for nontraditional credit, an acceptable
“enhanced credit evaluation” for a nontraditional limited credit profile (“enhanced credit evaluation” for nontraditional limited credit requires both of the following: (i) 12 months rental history with no
delinquencies, and (ii) no delinquencies in the past 12 months for other trade lines, if any).
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage;
Community Solutions 100 - 5
 Amendment 20

	  
 	  
 	 Provided, however, in all of these cases, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that
satisfies the requirements of Part X, Section 803.02 of the Selling Guide.
 
	  
 	  (c)
 	  Where Lender requests a “representative” credit score on the borrower, but the borrower has no score due to no credit record with the repository,
Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of:
 
	  
 	  
 	  (1)
 	  an acceptable nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide), or
 
	  
 	  
 	  (2)
 	  when the borrower has not yet established a credit history or does not have sufficient credit documentation to meet the requirements for nontraditional credit, an
acceptable “enhanced credit evaluation” for a nontraditional limited credit profile (“enhanced credit evaluation” for nontraditional limited credit requires both of the following: (i) 12 months rental history with
no delinquencies, and (ii) no delinquencies in the past 12 months for other trade lines, if any).
 
	  
 	  
 	 Provided, however, in both of these cases, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that
satisfies the requirements of Part X, Section 803.02 of the Selling Guide.
 
	  
 	  (d)
 	  Where Lender obtains a “representative” credit score on the borrower, but the score is less than 620, Lender underwrites the Mortgage using any
one of the three options set forth below; provided, however, the borrower will not be eligible where eligibility could only be achieved by combining the following options (for example, “extenuating circumstances” may not be used to
compensate for deficiencies upon application of the criteria for nontraditional credit history):
 
	  
 	  
 	  (1)
 	  The borrower has an insufficient traditional credit history (as documented by reason codes showing lack of credit accounts, accounts not opened long enough, or lack
of usage as the reasons for the low “representative” credit score), and Lender underwrites the Mortgage using the underwriting guidelines set forth in the  Selling Guide for Community Lending mortgages coupled with the development
of
 
	  
 	  
 	  
 	  (aa)
 	  an acceptable nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide), or
 
	  
 	  
 	  
 	 (bb)
 	  when the borrower has not yet established a credit history or does not have sufficient credit documentation to meet the requirements for nontraditional credit, an acceptable
“enhanced credit evaluation” for a nontraditional limited credit profile (“enhanced credit evaluation” for nontraditional limited credit requires both of the following: (i) 12 months rental history with no
delinquencies, and (ii) no delinquencies in the past 12 months for other trade lines, if any). Provided, however, in both of these cases, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished
credit that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.
 
	  
 	  
 	  (2)
 	  Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an
acceptable traditional credit profile (under Part X, Section 304.01 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that
satisfies the requirements of Part X, Section 803.02 of the Selling Guide.
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage; Community Solutions 100 - 6

 Amendment 20

	  
 	  
 	  (3)
 	  The borrower’s credit history was heavily influenced by credit deficiencies that were the result of a documented “extenuating circumstance,” and the
borrower’s credit history has been reestablished and meets the conditions specified in the Selling Guide for the reestablishment of an acceptable credit history following an “extenuating circumstance” (under Part X, Section
803.02 of the Selling Guide).
 
	  
 	  
 
	  
 	 In no circumstance may a nontraditional credit evaluation be used to offset derogatory credit.
 
	  
 	  
 	  
 	  
 
	  15.
 	  Mortgage Insurance
 
	  
 	  MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will obtain “secondary market coverage” (“SMC”) must also comply with the
“secondary market policy” terms of the “Special Requirements” section of this Master Agreement (“SMC Eligible Mortgages”). Lender must comply with the eligibility requirements as determined by the applicable mortgage
insurer. In addition, SMC Eligible Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no. A06304, and (ii) if delivered under Cash Delivery, must be delivered under seller/servicer branch no. 23227-003-9
or 24837-002-5. For SMC Eligible Mortgages, individual loan mortgage insurance providing 35% coverage is required on all Mortgages where the LTV is above 80%. SMC Eligible MyCommunityMortgage Mortgages may be covered under “A Paper” or
“A-Minus” mortgage insurance premium rates as determined by the eligibility requirements of the applicable mortgage insurer.
 
	  
 	  
 
	  
 	  Fannie Mae anticipates that all SMC Eligible Mortgages will be delivered for coverage under SMC. Nevertheless, with respect to Mortgages that do not comply with the
eligibility requirements of the applicable mortgage insurer for such “secondary market policy” terms or that are not otherwise delivered for coverage under SMC (collectively, “Non-SMC Mortgages”), individual loan mortgage
insurance coverage is required as follows:
 
	  
 	 •
 	  LTV is 90.01% - 100.00%:        35%
 
	  
 	  •
 	  LTV is 85.01% -   90.00%:        30%
 
	  
 	  •
 	  LTV is 80.01% -   85.00%:        25%
 
	  
 	  Non-SMC Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no. to be determined, and (ii) if delivered under Cash
Delivery, must be delivered under seller/servicer branch no. 23227-000-4 or 24837-000-9.
 
	  
 	  
 
	  
 	  Note: SMC Eligible Mortgages and Non-SMC Mortgages may NOT be delivered under the same Pool Purchase Contract (if delivered under MBS Delivery), or under the same
seller/servicer branch no. (if delivered under Cash Delivery). Nevertheless, SMC Eligible Mortgages may be delivered under the same Pool Purchase Contract or the same seller/servicer branch no. used with non-MyCommunityMortgage loans that comply
with, and are delivered in connection with, the “secondary market policy” terms of the “Special Requirements” section of this Master Agreement.
 
	  
 	  
 
	  
 	 The Lender is responsible for determining applicable state requirements relating to mortgage insurance availability for Mortgages having LTVs over 97%. If the
specified mortgage insurance coverage is not available with respect to any mortgage, then such mortgage is ineligible for delivery to Fannie Mae.
 
	  
 	  
 
	  16.
 	  Homebuyer Education
 
	  
 	  All first-time borrowers must complete homebuyer education according to the provisions of the Selling Guide for prepurchase homebuyer education.
 
					

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage; Community Solutions 100 - 7
 Amendment 20

	  17.
 	  Delinquency Counseling
 
	  
 	  For all borrowers, Lender must follow the requirements of the Selling Guide and the Servicing Guide for postpurchase early delinquency counseling.
 
	  
 	  
 
	 18.
 	  Allocation
 
	  
 	  These terms and conditions do not contain a specific limitation on the aggregate principal amount of Mortgages that Lender may deliver or a date (other than the applicable
Expiration Date) by which Lender must deliver the Mortgages. However, in order to be able to efficiently allocate the resources that Fannie Mae has made available for this pilot, Fannie Mae may from time to time and at any time set a limit on the
aggregate principal amount of Mortgages that Lender may deliver or terminate Lender’s ability to deliver Mortgages under this pilot. If, after giving consideration to the aggregate principal amount of Mortgages that Lender has delivered and to
the aggregate principal amount of commitments for such Mortgages that Lender has made, Fannie Mae elects to set a limit or terminate Lender’s participation, Fannie Mae will give Lender at least 90 days prior written notice of its intent to do
so.
 
	  
 	  
 
	  19.
 	  Pricing for Cash Deliveries
 
	  
 	  Cash pricing is available through the MORNET Bulletin section of MORNET Manager. The MORNET Bulletin for Cash Pricing is contained in the Secondary Marketing section (Fannie Mae
Pricing; Cash Pricing) of MORNET Manager. The selection is “MyCommunityMortgage Products.” The option for pricing using “Secondary Market Coverage” must be selected for Mortgages delivered for coverage under SMC, and the option
for pricing using “standard” mortgage insurance must be selected for Non-SMC Mortgages. Cash Pricing screens are available for 30-year fixed-rate mortgages and for Eligible ARMs. For fixed-rate mortgages with terms of less than 30 years,
Lender must contact Fannie Mae’s Cash Commitment window at 1-800-752-1080, option #5 Negotiated Pricing, and obtain a negotiated Cash Delivery commitment.
 
	  
 	  
 
	 20.
 	  Special Feature Code
 
	  
 	  For all Mortgages originated under these terms and conditions, Lender is required to enter Special Feature Code “481” on the Loan Schedule (Form 1068) or
Schedule of Mortgages (Form 2005). ForCash deliveries, the Loan Schedule must be transmitted electronically through the MORNET Cash Delivery System”. For MBS deliveries, the Schedule of Mortgages must be submitted
through the MORNET MBS Pool Submission System®.
 

  Master Agreement MA02373.2
 HCD - MyCommunityMortgage; Community Solutions 100 - 8
 Amendment
20

   ATTACHMENT A
  MyCommunityMortgage Pilot Community Solutions 97, Community Solutions
100, and Community Solutions 2-Family Products Eligibility Matrix

	 Product Option
 	   
 	 Loan Type
 	   
 	 Purpose
 	   
 	 Occupancy
 	   
 	 Other Property Owned
 	   
 	 Non-Occupant Co-borrower
 	   
 	 Units
 	   
 	 Maximum LTV
 	   
 	 Maximum CLTV
 	   
 	 Borrower Income
 	   
 	 Subordinate Financing
 	   
 	 MI Coverage
 	   
 	 Temporary
 Interest Rate
 Buydown
 	   
 
	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	   
 	 
 	  
 	 
 	  
 
	 Community Solutions 97
 	   
 	 Fixed-Rate Mortgage, 7/1 or 10/1 ARMS
 	   
 	 PMM or No Cash
 Out Refinance (Existing UPB of first mortgage rounded to the nearest $100)
 	   
 	 Owner-Occupied
 	   
 	 None
 	   
 	 Not Allowed
 	   
 	 One Unit
 	   
 	 97% (90% for cooperatives)
 	   
 	 105
 	 %
 	 If borrower income exceeds area median income limitations, verify property is in a FannieNeighbors
 location through Fannie Mae’s geocoding service through
efanniemae.com
 	   
 	 Must meet Community Seconds
 guidelines
 	   
 	 For SMC-Eligible = 35%
for all LTVs
 For non-SMC=35% for LTVs of over 90-100%
 30% for LTVs of over 85-90%
 25% for LTVs of over 80-85%
 	   
 	 1/2% over three years
 	  
 
	 Community Solutions 100
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 100
 	 %
 	  
 	  
 	  
 	  
 
	 Community Solutions 2-Family
 	  
 	  
 	  
 	  
 	  
 	  
 	 2 Units
 	  
 	 95
 	 %
 	  
 	  
 	  
 	  
 

 Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community
Solutions 100  - 9
Amendment 20

  [LETTERHEAD OF FANNIEMAE]
  December 5, 2002
  Mr. Michael P. Leddy

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285 115 Perimeter Center Place
 Atlanta, GA 30346

	  Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	  Master Agreement Amendment No.:
 	  Amendment 21
 
	  
 	  Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement.
  For your convenience, we have summarized the amended terms and conditions below. However, the
summary set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
 The
amended terms and conditions:

	  •
 	  Modified Variance – Replace page VAR 1 – 1 through VAR 1 – 4 Amendment 20 (dated 12/5/2002) with VAR 1 – 1 through VAR 1 – 8 Amendment 21
(dated 12/5/2002) behind the Variances tab.
 
	  
 	  
 
	  •
 	  New Variance – (a) Replace page VAR/TOC – 1 Amendment 20 (dated 12/5/2002) with VAR/TOC – 1 Amendment 21 (dated 12/5/2002) behind the Variances
tab. (b) Insert pages VAR 5 – 1 through VAR 5 – 5 (dated 12/5/2002) behind the Variances tab.
 
	  
 	  
 
	  •
 	  Modified Pool Purchase Contracts
 
	  
 	  (a)
 	  A06302 – Replace pages FRM – 1 and FRM – 2 (dated 11/14/2002) with pages FRM – 1 and FRM – 2 (dated 12/5/2002) behind the Fixed-Rate
tab.
 
	  
 	  (b)
 	  A06743 – Replace pages FRM – 1 and FRM – 2 (dated 11/14/2002) with pages FRM – 1 and FRM – 2 (dated 12/5/2002) behind the Fixed-Rate
tab.
 

 Master Agreement MA02373.2
 LE - 1
 Amendment 21

   By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the attachments to this Letter Agreement.
The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate original of this Letter Agreement to Diane Stokes at Fannie Mae within ten business days
of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter
Agreement null and void.
  Sincerely,

	  FANNIE MAE
 	  
 
	  
 	  
 
	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	  David A. Bowles
 Customer Account Manager
 	  
 
	  
 	   
 	  
 
	 Agreed, acknowledged and accepted.
 	  
 

 

	  CRESCENT BANK AND TRUST COMPANY
 	  
 
	  
 	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name: 
 	  PARTHIV J. DAVE
 	  
 
	  Title:
 	  V.P.
 	  
 
	  Date:
 	  12-11-02
 	  
 
	  
 	   
 	  
 
	 Agreed, acknowledged and accepted.
 	  
 

 

	  CRESCENT MORTGAGE SERVICES
 	  
 
	  
 	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name: 
 	  PARTHIV J. DAVE
 	  
 
	  Title:
 	  V.P.
 	  
 
	  Date:
 	  12-11-02
 	  
 

 Master Agreement MA02373.2
 LE - 2
 Amendment 21

   VARIANCES
 TABLE OF CONTENTS

	  VAR 1
 	  Bulk Alt A Product FRM
 
	  VAR 2
 	  Desktop Underwriter ‘Expanded Approval with Timely Payment RewardsSM’ Initiative
 
	  VAR 3
 	  Relocation Mortgages Guidelines/Trailing Secondary Wage Earner Income
 
	  VAR 4
 	  Other Automated Underwriting Systems
 
	  VAR 5
 	  Use of Other Automated Underwriting System (‘AUS’) For Certain Mortgages To Be Delivered No Later Than December 31, 2002
 

  Master Agreement MA02373.2
 VAR TOC - 1
 Amendment 21

	 
VAR 1
 	  
 	  Bulk ALT A Product
 
	  
 	  
 
	 1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 	  
 
	  
 	  (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a verbal
Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so therefore no
debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform Residential Loan
Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 
	  
 	 (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application (Form 1003)
and Lender must verify reported income and assets.
 
	  
 	  
 	  
 
	  
 	  Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation
Alt A product.
 
	  
 	  
 	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 	  
 
	  3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 	  
 
	 5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of
warranty by Lender, as provided in the Selling Guide.
 

  Master Agreement MA02373.2
 VAR 1 - 1
 Amendment 21

	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR
CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 	  
 
	  
 	 (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 	  
 
	 8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 

  Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 21

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
  Crescent Mortgage’s Credit Plus Program
 No Income – No Ratios/No Asset Verifications

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	  Program Type
 	  
 	  PMM, R/T Refi, COR
 
	  
 	  
 	  
 
	 Product Type
 	  
 	  FRM only
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year
 
	  
 	  
 	  
 
	  Eligible Units
 	  
 	  1-2 unit properties
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	  Geographic Limitations
 	  
 	  None
 
	  
 	  
 	  
 
	 Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	  
 	  
 	  
 
	  Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	  
 	  
 	  
 
	  Mortgage Insurance
 	  
 	  Standard mortgage insurance required.
 
	  
 	  
 	  
 
	 Maximum LTVs and Credit Scores: 
 	  
 	  
 
	  
 	  •  Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  •  2nd Homes
 	  
 	  2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 

 Master
Agreement MA02373.2
 VAR 1 - 3
 Amendment 21

	  
 	  
 	  1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680.
 
	  
 	  
 	  
 
	  Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan.
 
	  
 	  
 	  
 
	  Credit Report
 	  
 	  Three In-file merged credit report.
 
	  
 	  
 	  
 
	  Qualifying Debt Ratios:
 	  
 	  Ratios are not considered.
 
	  
 	  
 	  
 
	 Reserves:
 	  
 	  No assets are verified; reserves are not required.
 
	  
 	  
 	  
 
	  Credit Criteria:
 	  
 	  
 
	  
 	  Trade Lines
 	  
 	  Three (3) rated trades
 
	  
 	  Credit History
 	  
 	  24 Months
 
	  
 	  Credit Explanations
 	  
 	  Not stated
 
	  
 	  Mortgage/Revolving/
 	  
 	  No Foreclosures.
 
	  
 	  Installment
 	  
 	  No Bankruptcies.
 
	  
 	  
 	 No 30-day lates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	  Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	  Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	 Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Seller contributions
 	  
 	  Per Fannie Guides.
 
	  
 	  
 	  
 
	  Gift Funds
 	  
 	  No gifts allowed.
 
	  
 	  
 	  
 
	  Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required.
 
	  
 	  
 	  
 
	 Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only.
 
	  
 	  
 	  
 
	  Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required.
 
	  
 	  
 	  
 
	  Self-employed Profit & Loss/Balance Sheet
 	  
 	  Income verification is not required. No 4506 required.
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only.
 
	  
 	  
 	  
 
	  
 	  
 	  No Income
 No Ratios / No Asset Verification
 
	  
 	  
 	   
 
	 Salary or hourly wage earnings and overtime and bonus income
 	  
 	  No verification. Stated income only.
 
	  
 	  
 	  
 
	  Commission income and independent contractor
 	  
 	  No verification. Stated income only.
 
					

  Master Agreement MA02373.2
 VAR 1 - 4
 Amendment 21

   December 2002 30 Year FRM
 Bulk Mortgage Delivery Addendum
  Maximum Volume:
$12,242,510.00
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s Underwriting Guidelines or it pays
off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule “A” and as identified on Schedule
“B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio based upon the issue date principal balance
of each Mortgage and the original appraised value of the property securing each such Mortgage.
 Master Agreement MA02373.2
 VAR 1 - 5
 Amendment 21

   December 2002 30 Year FRM
 Schedule A
 Profile Summary

	  Count
 	  :
 	   
 	  71
 	   
 
	  Volume
 	  :
 	  $
 	  12,242,510.00
 	  
 
	  WAC
 	  :
 	  
 	  6.5
 	  
 
	  WA OLTV
 	  :
 	  
 	  73.6
 	  
 
	  WA CLTV
 	  :
 	  
 	  73.6
 	  
 
	 WA State RTerm
 	  :
 	  
 	  359
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  3
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	  Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

 Master Agreement MA02373.2
 VAR 1 - 6
 Amendment 21

   December 2002 30 Year FRM
 Schedule B
 Lender Loan Numbers

	  Non-SMC
 
	  1000982817
 
	  1001014172
 
	  1000939353
 
	  1000956985
 
	  1000959526
 
	  1001063773
 
	  1001029675
 
	  1001035326
 
	  1001009446
 
	  1000950848
 
	  1000965747
 
	  1000889905
 
	  1000990638
 
	  1000999571
 
	  1001017936
 
	 1000989697
 
	  1000978328
 
	  1001036845
 
	  1001006418
 
	  1000986164
 
	  1000973287
 
	  1000997864
 
	  1000976850
 
	  1001036662
 
	  1001044013
 
	  1001058815
 
	  1001041530
 
	  1000905982
 
	  1001013539
 
	  1000935781
 
	  1000926996
 
	  1000999159
 
	  1000997898
 
	  1000997757
 
	 1001017555
 
	  1001012127
 
	  1000936417
 
	  1000904365
 
	  1000955698
 
	  1001016839
 

  Master Agreement MA02373.2
 VAR 1 - 7 
 Amendment
21

	  1000994416
 
	  1001046489
 
	  1000940229
 
	  1001014073
 
	  1000998466
 
	  1001007788
 
	  1000953297
 
	  1000988129
 
	  1000999258
 
	  1001036704
 
	  1000991099
 
	  
 
	 SMC
 
	  1000853166
 
	  1000988988
 
	  1001016862
 
	  1000979631
 
	  1001013596
 
	  1001008737
 
	  1001020120
 
	  1001030194
 
	  1000968683
 
	  1001049798
 
	  1001014594
 
	  1001029709
 
	  1000997179
 
	  1001051992
 
	  1001010030
 
	  1001038056
 
	  1001045366
 
	 1001016995
 
	  1000721074
 
	  1000947646
 

  Master Agreement MA02373.2
 VAR 1 - 8 
 Amendment
21

	 
VAR 5
 	  Use of Other Automated Underwriting System (‘AUS’) For Certain Mortgages To Be Delivered No Later Than December 31, 2002
 
	  
 
	  Lender may deliver the 74 (2-4 unit) mortgage loans identified in the attached Schedule “A” having an aggregate outstanding principal balance not to
exceed $12,548,152 that were originated pursuant to the following terms and conditions (the “Mortgages”).
 
	  
 
	  Fannie Mae recognizes that the Mortgages were submitted for evaluation to an automated underwriting system (“AUS”) other than DU. Lender may deliver the
Mortgages to Fannie Mae in accordance with the provisions of this Variance, provided that Lender acknowledges and agrees not to use these provisions in any manner that would adversely select or harm Fannie Mae and:
 
	  
 
	  1.
 	  The Mortgages meet Fannie Mae’s eligibility requirements described in the Fannie Mae Selling Guide, as modified by the Master Agreement or the DU Guide, as any
of the foregoing may be amended from time to time.
 
	  
 	  
 
	 2.
 	  Such Mortgages must receive a recommendation of “standard accept” (either full or streamlined documentation levels) or “accept plus” from the
other AUS.
 
	  
 	  
 
	  3.
 	  All data pertaining to the Mortgage is complete and accurate, and all data on which the underwriting decision recommended by the other AUS was based remain unchanged
as of the closing date for such Mortgage.
 
	  
 	  
 
	  4.
 	  Such Mortgages must be documented and closed in accordance with the requirements of the other AUS, except with respect to the appraisal requirements, as provided in
Paragraph 13 below. Verification of all such data is provided with the delivered Mortgage loan file and such verification complies with the requirements of the other AUS. Lender must take all appropriate action in response to the verification
messages/approval conditions that appear in the “findings” report that the other AUS produces with respect to the related Mortgage loan application prior to the closing of the Mortgage, with proper documentation in the loan file. Lender
represents and warrants that copies of all reports generated by the other system will be included in the loan file, and that Lender is not prohibited from providing such copies.
 
	  
 	  
 
	  5.
 	  With the exception of Mortgages that are otherwise eligible for delivery under the Master Agreement or DU, Mortgages receiving a recommendation of “standard
accept” (either full or streamlined documentation levels) or “accept plus” from the other AUS are not eligible for delivery under this Variance if the recommendation (a) includes a requirement for additional fees, credit enhancements,
or other special conditions, except as otherwise expressly provided in Paragraph 9 below, or (b) the mortgage insurance coverage level obtained is lower than required per Fannie Mae’s Selling Guide, even if a reduced level of coverage is
permitted by the other AUS recommendation.
 
	  
 	  
 
	 6.
 	  Lender and Fannie Mae must mutually agree upon any AUS employed by Lender prior to the delivery of such Mortgages to Fannie Mae.
 
	  
 	  
 
	  7.
 	  For all Mortgages, Lender must enter the borrower’s representative FICO credit score into the appropriate data field when submitting the Mortgage to Fannie Mae
in accordance with the Fannie Mae Selling Guide.
 
			

  Master Agreement MA02373.2
 VAR 5 - 1
 Amendment 21

	  8.
 	  Except as otherwise provided herein, Lender makes all applicable selling representations and warranties as required by the Fannie Mae Selling Guide and the Mortgage
Selling and Servicing Contract by and between Lender and Fannie Mae.
 
	  
 	  
 	  
 
	  9.
 	  The provisions of this Variance do not apply to any mortgage that is currently required by Fannie Mae to be submitted to DU for evaluation (“DU-Only
Products”) (e.g., Flexible Mortgages), and such mortgages must be processed through DU and receive an acceptable recommendation in order to be eligible for delivery to Fannie Mae, except as follows: if there is a Mortgage product available in
the other AUS that is equivalent to a DU-Only Product (as determined by Fannie Mae), then such Mortgage is eligible for delivery to Fannie Mae, subject at delivery to the (a) payment of all loan level price adjustments or special all-in yield
pricing applicable to the equivalent DU-Only Product, and (b) identification by any special feature code applicable to the equivalent DU-Only Product.
 
	  
 	  
 	  
 
	 10.
 	  At delivery, Lender must:
 
	  
 	  
 	  
 
	  
 	  (a)
 	  identify all Mortgages underwritten using an AUS other than DU in accordance with this Variance by inserting the following Special Feature Code(s) on the Loan Schedule or
Schedule of Mortgages, as applicable: (i) “361” for all Mortgages, and (ii) any other special feature code loan that would be required if the Mortgage had been submitted to DU prior to delivery; and
 
	  
 	  
 	  
 
	  
 	  (b)
 	  pay all applicable loan level price adjustments required under Fannie Mae’s eligibility criteria.
 
	  
 	  
 	  
 
	  11.
 	  For Mortgages meeting the requirements set forth in this Variance, Fannie Mae will not require Lender to warrant that the Mortgage complies with the Fannie Mae
Selling Guide’s requirements with regard to the application of underwriting judgment used by the AUS as it pertains to the borrower’s creditworthiness, provided the information that the other AUS used to reach its decision was not
inaccurate or fraudulent.
 
	  
 	  
 	  
 
	 12.
 	  Fannie Mae will analyze the credit risks associated with such Mortgages and will provide Lender with the results of this analysis. If this analysis contains any
credit score data or other consumer credit data under the FCRA, it is being provided to Lender as Fannie Mae’s agent for the limited purpose of reviewing such Mortgages to determine their conformance with Fannie Mae’s requirements. Upon
request, Lender will provide to Fannie Mae any data or information relating to the Mortgages delivered to Fannie Mae that were processed through the other AUS, and Lender represents and warrants that Lender is not prohibited from providing such data
or information to Fannie Mae. If Fannie Mae’s analysis indicates that a significant number of such Mortgages contained a high risk of default, Lender and Fannie Mae will work together to identify and implement product or process changes to
reduce the number of such high risk Mortgages expected to be delivered during the following quarter (or, in lieu of product or process changes, Lender and Fannie Mae may discuss prospective price adjustments to compensate Fannie Mae for the risks
associated with such Mortgages). If Fannie Mae and Lender cannot agree on the appropriate actions to be taken during the following quarter to address high risk Mortgages, then Fannie Mae reserves the right to discontinue accepting such
Mortgages.
 

  Master Agreement MA02373.2
 VAR 5 - 2
 Amendment 21

	  13.
 	  With respect to all Mortgages underwritten using the other AUS, the property value must be supported by an interior and exterior appraisal performed using the Desktop
Underwriter Quantitative Analysis Appraisal Report (Form 2055) in accordance with the requirements in the DU Guide, regardless of the finding by the other AUS. If a Mortgage is not eligible for Form 2055, per the DU Guide, then a full appraisal in
accordance with the Fannie Mae Selling Guide is required.
 
	  
 	  
 
	 14.
 	  If Fannie Mae determines that Lender is using these provisions in any manner that is adversely selecting or harming Fannie Mae, then Fannie Mae may terminate Lender’s
ability to deliver Mortgages underwritten by the other AUS upon 90-days notice.
 
	  
 	  
 
	  15.
 	  Mortgages underwritten using the other AUS may only be delivered to Fannie Mae through December 31, 2002.
 

  Master Agreement MA02373.2
 VAR 5 - 3
 Amendment 21

   Schedule “A”
 Schedule of Mortgage Loans

	  1000944569
 
	  1000951853
 
	  1000955946
 
	  1000961258
 
	  1000966992
 
	  1000969418
 
	  1000974228
 
	  1000978633
 
	 1000988020
 
	  1000994531
 
	  1000995280
 
	  1000999506
 
	  1000999605
 
	  1001002284
 
	  1001002573
 
	  1001003662
 
	  1001003688
 
	  1001003886
 
	  1001006103
 
	  1001006111
 
	  1001007945
 
	  1001011400
 
	  1001011418
 
	  1001012770
 
	  1001013570
 
	  1001016813
 
	  1001018652
 
	 1001022605
 
	  1001022654
 
	  1001024312
 
	  1001027091
 
	  1001027273
 
	  1001027521
 
	  1001027935
 
	  1001028032
 
	  1001029154
 
	  1001029683
 
	  1001030244
 
	  1001031713
 
	  1001032422
 
	  1001033503
 
	  1001033842
 

  Master Agreement MA02373.2
 VAR 5 - 4
 Amendment
21

	  1001034402
 
	  1001036530
 
	 1001036886
 
	  1001036902
 
	  1001036936
 
	  1001037058
 
	  1001037538
 
	  1001037918
 
	  1001037942
 
	  1001039187
 
	  1001040417
 
	  1001040524
 
	  1001040573
 
	  1001040771
 
	  1001040854
 
	  1001041951
 
	  1001044633
 
	  1001046083
 
	  1001046281
 
	  1001048238
 
	  1001051141
 
	 1001051414
 
	  1001053253
 
	  1001053410
 
	  1001064144
 
	  1001066180
 
	  1001066834
 
	  1001069507
 
	  1001069838
 
	  1001071784
 
	  1001081502
 
	  1001088275
 

  Master Agreement MA02373.2
 VAR 5 - 5
 Amendment
21

   Contract No. A06302.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	 Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $: 40,400,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  December 1, 2002 - December 1, 2002
 
	  
 	  
 	  
 
	 Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 

 Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 Crescent
Credit Plus Fixed-Rate Mortgage Product.
 See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard Fannie Mae
guidelines or the Alt-A guidelines incorporated in this Master Agreement.
  Pool Purchase Contract No. A06302.2
 FRM - 1
 Amendment 21

   Contract No. A06302.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  December 1, 2002 - December 1, 2002
 
	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	  41.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06302.2
 FRM - 2
 Amendment 21

   Contract No. A06743.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	 24837-002-5
 

 

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $25,500,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  December 1, 2002 - December 1, 2002
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 Lender
is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis points.
 Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage
Product > 80% LTV.
 See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
 Pool Purchase Contract No. A06743.2
 FRM - 1 
 Amendment 21

   Contract No. A06743.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  December 1, 2002
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  35.00 Basis Points
 
	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06743.2
 FRM - 2
 Amendment 21

   [LETTERHEAD OF FANNIEMAE]
  December 18, 2002
  Mr. Michael P. Leddy

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285 115 Perimeter Center Place
 Atlanta, GA 30346

	  Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	  Master Agreement Amendment No.:
 	  Amendment 22
 
	  
 	  Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement.
 For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
  The
amended terms and conditions:

	  •
 	  Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 21 (dated 12/15/2002) with pages VAR 1 – 1 through VAR 1 – 11 (dated 12/18/2002)
behind the Variances tab.
 
	  
 	  
 
	  •
 	  Modified Pool Purchase Contract Numbers –
 
	  
 	  (a)
 	  A06302 – Replace page FRM – 1 (dated 12/5/2002) with page FRM – 1 (dated 12/18/2002) behind the Fixed-Rate tab.
 
	  
 	  (a)
 	  A06724 – Replace pages FRM – 1 and FRM – 2 (dated 11/22/2002) with pages FRM – 1 and FRM – 2 (dated 12/18/2002) behind the Fixed-Rate
tab.
 
	  
 	  (b)
 	  A06743 – Replace pages FRM – 1 (dated 12/5/2002) with page FRM – 1 (dated 12/18/2002) behind the Fixed-Rate tab.
 

 Master Agreement MA02373.2
 LE - 1
 Amendment 22

   By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the attachments to this Letter Agreement.
The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate original of this Letter Agreement to Diane Stokes at Fannie Mae within ten business days
of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter
Agreement null and void.
  Sincerely, 

	  FANNIE MAE
 	  
 
	  
 	  
 
	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	  David A. Bowles
 Customer Account Manager
 	  
 
	  
 	  
 
	 Agreed, acknowledged and accepted.
 	  
 
	  
 	  
 
	  CRESCENT BANK AND TRUST COMPANY
 	  
 
	  
 	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name:
 	  PARTHIV J. DAVE
 	  
 
	  Title:
 	  V.P.
 	  
 
	  Date:
 	  12-20-02
 	  
 

 Master Agreement MA02373.2
 LE - 2
 Amendment 22

	  VAR 1
 	  Bulk ALT A Product
 
	  
 
	  1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 	  
 	  
 
	  
 	  (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a
verbal Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so
therefore no debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 	  
 
	  
 	 (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform
Residential Loan Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 	  
 
	  
 	  (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application
(Form 1003) and Lender must verify reported income and assets.
 
	  
 	  
 	  
 	  
 
	  
 	  Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt
A product.
 
	  
 	  
 	  
 	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 	  
 	  
 
	 3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 	  
 	  
 
	  5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie
 

 Master Agreement MA02373.2

VAR 1 - 1
 Amendment 22

	  
 	  Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling
Guide.
 
	  
 	  
 
	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR
CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 
	  
 	  (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 	  
 
	  8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 

 Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 22

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
  Crescent Mortgage’s Credit Plus Program
 No Income – No Ratios/No Asset Verifications

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	  Program Type
 	  
 	  PMM, R/T Refi, COR
 
	  
 	  
 	  
 
	  Product Type
 	  
 	  FRM only
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year
 
	  
 	  
 	  
 
	 Eligible Units
 	  
 	  1-2 unit properties
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	  Geographic Limitations
 	  
 	  None
 
	  
 	  
 	  
 
	  Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	  
 	  
 	  
 
	 Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	  
 	  
 	  
 
	  Mortgage Insurance
 	  
 	  Standard mortgage insurance required.
 
	  
 	  
 	  
 
	  Maximum LTVs and Credit Scores:
 	  
 	  
 
	  
 	  • Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	 2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  • 2nd Homes
 	  
 	  
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680.
 

  Master Agreement MA02373.2
 VAR 1 - 3
 Amendment 22

	 Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan.
 
	  
 	  
 	  
 
	  Credit Report
 	  
 	  Three In-file merged credit report.
 
	  
 	  
 	  
 
	  Qualifying Debt Ratios:
 	  
 	  Ratios are not considered.
 
	  
 	  
 	  
 
	  Reserves:
 	  
 	  No assets are verified; reserves are not required.
 
	  
 	  
 	  
 
	  Credit Criteria: 
 	  
 	  
 
	  
 	 Trade Lines
 	  
 	  Three (3) rated trades
 
	  
 	  Credit History
 	  
 	  24 Months
 
	  
 	  Credit Explanations
 	  
 	  Not stated
 
	  
 	  Mortgage/Revolving/
 	  
 	  No Foreclosures.
 
	  
 	  Installment
 	  
 	  No Bankruptcies.
 
	  
 	  
 	  No 30-day lates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	  Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	 Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	 Seller contributions
 	  
 	  Per Fannie Guides.
 
	  
 	  
 	  
 
	  Gift Funds
 	  
 	  No gifts allowed.
 
	  
 	  
 	  
 
	  Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required.
 
	  
 	  
 	  
 
	  Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only.
 
	  
 	  
 	  
 
	  Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required.
 
	  
 	  
 	  
 
	 Self-employed Profit & Loss/Balance Sheet
 	  
 	  Income verification is not required. No 4506 required.
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only.
 
					

 

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	  Salary or hourly wage earnings and overtime and bonus income
 	  
 	  No verification. Stated income only.
 
	  
 	  
 	  
 
	 Commission income and independent contractor
 	  
 	  No verification. Stated income only.
 

  Master Agreement MA02373.2
 VAR 1 - 4

Amendment 22

   December 2002 30-Year FRM
 Bulk Mortgage Delivery Addendum
  Maximum Volume:
$6,151,875.00
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s Underwriting Guidelines or it pays
off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule “A” and as identified on Schedule
“B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio based upon the issue date principal balance
of each Mortgage and the original appraised value of the property securing each such Mortgage.
  Master Agreement MA02373.2
 VAR 1 - 5
 Amendment 22

   December 2002 30 Year FRM
 Schedule A
 Portfolio Summary
 30-year Fixed-Rate with SMC

	  Count
 	  :
 	   
 	  12
 	   
 
	 Volume
 	  :
 	  $
 	  1,801,735.00
 	  
 
	  WAC
 	  :
 	  
 	  6.6
 	  
 
	  WA OLTV
 	  :
 	  
 	  88.9
 	  
 
	  WA CLTV
 	  :
 	  
 	  88.9
 	  
 
	  WA MTMLTV
 	  :
 	  
 	  88.9
 	  
 
	 WA State RTerm
 	  :
 	  
 	  360
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  1
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	  Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

 30-year Fixed-Rate Non-SMC

	  Count
 	  :
 	   
 	  29
 	   
 
	  Volume
 	  :
 	  $
 	  4,350,140.00
 	  
 
	  WAC
 	  :
 	  
 	  6.4
 	  
 
	  WA OLTV
 	  :
 	  
 	  69.9
 	  
 
	  WA CLTV
 	  :
 	  
 	  69.9
 	  
 
	 WA MTMLTV
 	  :
 	  
 	  69.9
 	  
 
	  WA State RTerm
 	  :
 	  
 	  360
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  1
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	 Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 
	  Pct Approved
 	  :
 	  
 	  96.56
 	  %
 
	  Pct Referred
 	  :
 	  
 	  0.00
 	  %
 
	  Pct RWC
 	  :
 	  
 	  3.44
 	  %
 

  Master Agreement MA02373.2
 VAR 1 - 6
 Amendment 22

   December 2002 30 Year FRM
 Schedule B
 Lender Loan Numbers

	 30-year with SMC
 
	  1001085768
 
	  1000853620
 
	  1001019130
 
	  1001020666
 
	  1001017894
 
	  1001050549
 
	  1001032836
 
	  1001060381
 
	  1001062312
 
	  1001097193
 
	  1000791333
 
	  1000992220
 
	   
 
	  30-year non-SMC
 
	  1001073269
 
	  1001041415
 
	  1001049020
 
	 1001036316
 
	  1001054822
 
	  1001008232
 
	  1001014545
 
	  1001004215
 
	  1001027802
 
	  1000990711
 
	  1000984623
 
	  1001035995
 
	  1001050655
 
	  1001053022
 
	  1001058633
 
	  1001013042
 
	  1001061173
 
	  1001057551
 
	  1001052107
 
	  1001038395
 
	  1000990836
 
	  1001016219
 
	 1001059227
 
	  1001026614
 
	  1001051786
 
	  1001040441
 
	  1001036266
 
	  1001045960
 
	  1001067832
 

  Master Agreement MA02373.2
 VAR 1 - 7
 Amendment
22

   December 2002 15-Year FRM
 Bulk Mortgage Delivery Addendum
  Maximum Volume:
$4,133,100.00
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s Underwriting Guidelines or it pays
off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule “A” and as identified on Schedule
“B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio based upon the issue date principal balance
of each Mortgage and the original appraised value of the property securing each such Mortgage.
  Master Agreement MA02373.2
 VAR 1 - 8
 Amendment 22

   December 2002 15-Year FRM
Schedule A
 Portfolio Summary

	 Count
 	  :
 	   
 	  32
 	   
 
	  Volume
 	  :
 	  $
 	  4,133,100.00
 	  
 
	  WAC
 	  :
 	  
 	  5.9
 	  
 
	  WA OLTV
 	  :
 	  
 	  61.2
 	  
 
	  WA CLTV
 	  :
 	  
 	  61.2
 	  
 
	 WA MTMLTV
 	  :
 	  
 	  61.2
 	  
 
	  WA State RTerm
 	  :
 	  
 	  180
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  1
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	 Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 
	  Pct Approved
 	  :
 	  
 	  100.00
 	  %
 
	  Pct Referred
 	  :
 	  
 	  0.00
 	  %
 
	  Pct RWC
 	  :
 	  
 	  0.00
 	  %
 

  Master Agreement MA02373.2
 VAR 1 - 9
 Amendment 22

   December 2002 15-Year FRM
 Schedule B 
 Lender Loan Numbers

	 1001023843
 
	  1000982015
 
	  1000992808
 
	  1000863777
 
	  1001071479
 
	  1001071354
 
	  1001062452
 
	  1001038312
 
	  1001031754
 
	  1001032133
 
	  1001033040
 
	  1001051026
 
	  1001011160
 
	  1001031333
 
	  1001036498
 
	  1001016193
 
	  1001042470
 
	  1001046869
 
	 1001045630
 
	  1001050440
 
	  1001026309
 
	  1001090362
 
	  1001064334
 
	  1001057056
 
	  1001070372
 
	  1001041373
 
	  1000995967
 
	  1001009321
 
	  1000957686
 
	  1001042645
 
	  1001047784
 
	  1001047537
 

  Master Agreement MA02373.2
 VAR 1 - 10
 Amendment
22

   Contract No. A06302.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	 Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  Crescent Mortgage Services
 	  24837-002-5
 
	  
 	  
 	  
 
	  Eligible Products:
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $144,900,550.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  December 1, 2002 – December 1, 2002
 
	  
 	  
 
	 Servicing Option:
 	  Special
 
	  
 	  
 
	  Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	  Seasoning Requirements:
 	  Current
 
	  
 	  
 
	  Special Feature Codes:
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.

Crescent Credit Plus Fixed-Rate Mortgage Product.
 See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard Fannie
Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
 Pool Purchase Contract No. A06302.2
 FRM - 1
 Amendment 22

   Contract No. A06724.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  Crescent Mortgage Services
 	  24837-002-5
 
	  
 	  
 	  
 
	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $14,400,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  December 1, 2002 - December 1, 2002
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	  Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 
				

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 Lender is allowed a
maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis points.
  Pool Purchase Contract No.
A06724.2
 FRM - 1
 Amendment 22

   Contract No. A06724.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  N/A *
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  25.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  * If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is
subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
  Pool
Purchase Contract No. A06724.2
 FRM - 2
 Amendment 22

  Contract No. A06743.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  Crescent Mortgage Services
 	  24837-002-5
 
	  
 	  
 	  
 
	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $29,500,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  December 1, 2002 - December 1, 2002
 
	  
 	  
 	  
 
	  Servicing Option: 
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 
				

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 Lender is allowed a
maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis points.
Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80%
LTV.
 See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A guidelines
incorporated in this Master Agreement.
  Pool Purchase Contract No. A06743.2
 FRM - 1
 Amendment 22

   [LETTERHEAD OF FANNIEMAE]
  January 7, 2003
  Mr. Michael P. Leddy

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285 115 Perimeter Center Place
 Atlanta, GA 30346

	  Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	 Master Agreement Amendment No.:
 	  Amendment 23
 
	  
 	  Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement.
  For your convenience, we have summarized the amended terms and conditions below. However, the
summary set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
  The amended terms and conditions:

	  •
 	  Modified Variance – Replace pages VAR 1 – 11 (dated 12/18/2002) with pages VAR 1 – 11 (dated 1/7/2003) behind the Variances tab.

	  
 	  
 
	  •
 	  Modified Pool Purchase Contracts –
 
	  
 	 (a)
 	  A06302 – Replace pages FRM – 1 and FRM – 2 (dated 12/18/2002) with pages FRM – 1 and FRM – 2 (dated 1/7/2003) behind the Fixed-Rate
tab.
 
	  
 	  (b)
 	  A06724 – Replace pages FRM – 1 and FRM – 2 (dated 12/18/2002) with pages FRM – 1 and FRM – 2 (dated 1/7/2003) behind the Fixed-Rate
tab.
 
	  
 	  (c)
 	  A06743 – Replace pages FRM – 1 and FRM – 2 (dated 12/18/2002) with pages FRM – 1 and FRM – 2 (dated 1/7/2003) behind the Fixed-Rate
tab.
 
	  
 	  (d)
 	  A06808 – Replace pages FRM – 1 and FRM – 2 (dated 12/5/2002) with pages FRM – 1 and FRM – 2 (dated 1/7/2003) behind the Fixed-Rate
tab.
 

  Master Agreement MA02373.2
 LE - 1
 Amendment 23

	  
 	  (e)
 	  A06810 – Replace pages FRM – 1 and FRM – 2 (dated 12/5/2002) with pages FRM – 1 and FRM – 2 (dated 1/7/2003) behind the Fixed-Rate
tab.
 
	  
 	  (f)
 	  A06901 – Replace pages FRM – 1 and FRM – 2 (dated 11/22/2002) with pages FRM – 1 and FRM – 2 (dated 1/7/2003) behind the Fixed-Rate
tab.
 

 By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the attachments to this Letter
Agreement. The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate original of this Letter Agreement to Diane Stokes at Fannie Mae within ten
business days of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this
Letter Agreement null and void.

	  Sincerely,
 	  
 
	  
 	  
 
	  FANNIE MAE
 	  
 
	  
 	  
 
	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	  David A. Bowles
 	  
 
	  
 	 Customer Account Manager
 	  
 
	  
 	   
 	  
 
	  Agreed, acknowledged and accepted.
 	  
 
	  
 	  
 
	  CRESCENT BANK AND TRUST
COMPANY
 	  
 
	  
 	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name:
 	  PARTHIV J. DAVE
 	  
 
	  Title:
 	  V.P.
 	  
 
	 Date:
 	  1-8-03
 	  
 

  Master Agreement MA02373.2
 LE - 2
 Amendment 23

	  VAR 1
 	  Bulk ALT A Product
 
	  
 
	  1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 
	  
 	  (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a verbal
Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so therefore no
debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform Residential Loan
Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application (Form 1003)
and Lender must verify reported income and assets.
 
	  
 	  
 	  
 
	  
 	  Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation
Alt A product.
 
	  
 	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 
	 3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1
(‘‘Lender’s Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in
accordance with Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of
Attachment 1. Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 
	  5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of
 
				

 Master Agreement MA02373.2
 VAR 1 - 1
 Amendment 23

	  
 	  Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as
described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling Guide.
 
	  
 	  
 
	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR
CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 
	  
 	  (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 	  
 
	  8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 

 Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 23

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
  Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	  Program Type
 	  
 	  PMM, R/T Refi, COR
 
	  
 	  
 	  
 
	  Product Type
 	  
 	  FRM only
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year
 
	  
 	  
 	  
 
	 Eligible Units
 	  
 	  1-2 unit properties
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	  Geographic Limitations
 	  
 	  None
 
	  
 	  
 	  
 
	  Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	  
 	  
 	  
 
	 Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	  
 	  
 	  
 
	  Mortgage Insurance
 	  
 	  Standard mortgage insurance required.
 
	  
 	  
 	  
 
	  Maximum LTVs and Credit Scores:
 	  
 	  
 
	  
 	  • Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	 2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  • 2nd Homes
 	  
 	  
 
	  
 	  
 	  
 
	  
 	  
 	  1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680.
 

  Master Agreement MA02373.2
 VAR 1 - 3
 Amendment 23

	 Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan.
 
	  
 	  
 	  
 
	  Credit Report
 	  
 	  Three In-file merged credit report.
 
	  
 	  
 	  
 
	  Qualifying Debt Ratios:
 	  
 	  Ratios are not considered.
 
	  
 	  
 	  
 
	  Reserves:
 	  
 	  No assets are verified; reserves are not required.
 
	  
 	  
 	  
 
	  Credit Criteria:
 	  
 	  
 
	  
 	  Trade Lines
 	  
 	  Three (3) rated trades
 
	  
 	 Credit History
 	  
 	  24 Months
 
	  
 	  Credit Explanations
 	  
 	  Not stated
 
	  
 	  Mortgage/Revolving/
 	  
 	  No Foreclosures.
 
	  
 	  Installment
 	  
 	  No Bankruptcies
 
	  
 	  
 	  No 30-day lates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	  Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	 Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	 Seller contributions
 	  
 	  Per Fannie Guides.
 
	  
 	  
 	  
 
	  Gift Funds
 	  
 	  No gifts allowed.
 
	  
 	  
 	  
 
	  Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required.
 
	  
 	  
 	  
 
	  Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only.
 
	  
 	  
 	  
 
	  Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required.
 
	  
 	  
 	  
 
	 Self-employed Profit & Loss/Balance Sheet
 	  
 	  Income verification is not required. No 4506 required.
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only.
 
					

 

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	  Salary or hourly wage earnings and overtime and bonus income
 	  
 	  No verification. Stated income only.
 
	  
 	  
 	  
 
	 Commission income and independent contractor
 	  
 	  No verification. Stated income only.
 

  Master Agreement MA02373.2
 VAR 1 - 4

Amendment 23

   January 2003 30-Year FRM
Bulk Mortgage Delivery Addendum
  Maximum Volume:
$11,370,730
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s Underwriting Guidelines or it pays
off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule “A” and as identified on Schedule
“B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio based upon the issue date principal balance
of each Mortgage and the original appraised value of the property securing each such Mortgage.
  Master Agreement MA02373.2
 VAR 1 - 5
 Amendment 23

   January 2003 30 Year FRM
 Schedule A
 Portfolio Summary
 30-year Fixed-Rate

	  Count
 	  :
 	   
 	  68
 	   
 
	 Volume
 	  :
 	  $
 	  11,370,730.00
 	  
 
	  WAC
 	  :
 	  
 	  6.4
 	  
 
	  WA OLTV
 	  :
 	  
 	  76.0
 	  
 
	  WA CLTV
 	  :
 	  
 	  76.0
 	  
 
	  WA State RTerm
 	  :
 	  
 	  360
 	  
 
	 WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  0
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	  Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

  Master Agreement MA02373.2
VAR 1 - 6
 Amendment 23

   January 2003 30 Year FRM
Schedule B
 Lender Loan Numbers

	 1001001039
 
	  1001003415
 
	  1000952455
 
	  1000979383
 
	  1000962306
 
	  1001043692
 
	  1001051406
 
	  1001042835
 
	  1001040052
 
	  1001063641
 
	  1001055902
 
	  1001028461
 
	  1001019825
 
	  1000903516
 
	  1000696730
 
	  1001092285
 
	  1001076692
 
	  1001079969
 
	 1001068616
 
	  1001072279
 
	  1001071370
 
	  1001085008
 
	  1001105582
 
	  1001066990
 
	  1001067295
 
	  1001079456
 
	  1001001161
 
	  1001065828
 
	  1001064821
 
	  1001075264
 
	  1001114592
 
	  1001074622
 
	  1001065794
 
	  1001087533
 
	  1001098704
 
	  1001031762
 
	  1001027067
 
	 1001106945
 
	  1001071990
 
	  1001080405
 

  Master Agreement MA02373.2
 VAR 1 - 7
 Amendment
23

	  1001020880
 
	  1001113248
 
	  1001000676
 
	  1001056785
 
	  1001107414
 
	  1001075249
 
	  1000999126
 
	  1001130267
 
	  1001082179
 
	  1001053063
 
	  1001072014
 
	  1001070455
 
	  1001069499
 
	  1001104163
 
	 1001100922
 
	  1001038437
 
	  1000972727
 
	  1001084027
 
	  1001064458
 
	  1001068814
 
	  1001079316
 
	  1001074887
 
	  1001064474
 
	  1001067709
 
	  1001032273
 
	  1001044807
 
	  1000974798
 
	  1001070034
 

  Master Agreement MA02373.2
 VAR 1 - 8
 Amendment
23

   January 2003 15-Year FRM
 Bulk Mortgage Delivery Addendum
  Maximum Volume:
$3,967,800
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s Underwriting Guidelines or it pays
off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule “A” and as identified on Schedule
“B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio based upon the issue date principal balance
of each Mortgage and the original appraised value of the property securing each such Mortgage.
 Master Agreement MA02373.2
 VAR 1 - 9
 Amendment 23

   January 2003 15-Year FRM
 Schedule A
 Portfolio Summary

	  Count
 	  :
 	   
 	  26
 	   
 
	  Volume
 	  :
 	  $
 	  3,967,800.00
 	  
 
	  WAC
 	  :
 	  
 	  5.7
 	  
 
	  WA OLTV
 	  :
 	  
 	  63.2
 	  
 
	  WA CLTV
 	  :
 	  
 	  63.2
 	  
 
	 WA State RTerm
 	  :
 	  
 	  180
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  1
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	  Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

 Master Agreement MA02373.2
 VAR 1 - 10
 Amendment 23

   January 2003 15-Year FRM
 Schedule B
 Lender Loan Numbers

	  1000997294
 
	  1001064045
 
	  1001064052
 
	  1001062361
 
	  1001062429
 
	  1001079530
 
	  1001069242
 
	  1001088945
 
	  1001101128
 
	  1001077096
 
	  1001027307
 
	  1001037165
 
	  1001061264
 
	  1001084126
 
	  1001061835
 
	  1000926137
 
	 1001061843
 
	  1000998482
 
	  1001047123
 
	  1001053089
 
	  1001065950
 
	  1001063625
 
	  1001093382
 
	  1001077393
 
	  1001068319
 
	  1000998698
 

  Master Agreement MA02373.2
VAR 1 - 11
 Amendment
23

   Contract No. A06302.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	  Crescent Mortgage Services
 	  24837-000-9
 
	  
 	  
 	  
 
	 Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $155,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and
applicable attachments.
 
	  
 	  
 	  
 
	 Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Crescent Credit Plus Fixed-Rate Mortgage Product.
 
	  See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such
Mortgages meet standard Fannie Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
 
						

  Pool Purchase Contract No. A06302.2
 FRM - 1
 Amendment 23

   Contract No. A06302.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  41.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06302.2
 FRM - 2
 Amendment 23

   Contract No. A06724.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	 Crescent Mortgage Services
 	  24837-000-9
 
	  
 	  
 	  
 
	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $19,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	 See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis
points.
 
					

  Pool Purchase Contract No. A06724.2
 FRM - 1
 Amendment 23

   Contract No. A06724.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	  27.50 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 
	  
 	  
 	  
 

  *   If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the
current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a
revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty
Fee will again be subject to change upon agreement of the parties.
  Pool Purchase Contract No. A06724.2
 FRM - 2
 Amendment 23

   Contract No. A06743.2
 FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 
	  
 	  
 	  
 
	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $32,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and
applicable attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis
points.
 
	  Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
 
	  See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such
Mortgages meet standard Fannie Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
 
					

 Pool Purchase Contract No. A06743.2
 FRM - 1
 Amendment 23

   Contract No. A06743.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  35.00 Basis Points
 
	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06743.2
 FRM - 2
 Amendment 23

   Contract No. A06808.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	  Crescent Mortgage Services
 	  24837-000-9
 
	  
 	  
 	  
 
	  Eligible Products:
 	  
 	  20-, 25- and 30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $42,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  340 - Level I Expanded Approval, 341 - Level II Expanded Approva, 342 - Level III Expanded Approv, 361 - 3rd Autom U-Writng SYS, 376 - Level III TPR, 459 - Level
II Timely Payment R, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  20-, 25-, and 30-year Fixed Rate Mortgages with LTVs <= 80%.
 
					

  Pool Purchase Contract No. A06808.2
 FRM - 1
 Amendment 23

  Contract No. A06808.2
  MBS Pricing Confirmation for Crescent Bank and Trust Company

MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master Conversion
governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  20-, 25- and 30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  N/A *
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  15.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

 *   If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee
is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
  Pool
Purchase Contract No. A06808.2
 FRM - 2
 Amendment 23

   Contract No. A06810.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	  Crescent Mortgage Services
 	  24837-000-9
 
	  
 	  
 	  
 
	 Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $25,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  340 - Level I Expanded Approval, 341 - Level II Expanded Approva, 342 - Level III Expanded Approv, 361 - 3rd Autom U-Writng SYS, 376 - Level III TPR, 459 - Level
II Timely Payment R, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	 10- and 15-Year Fixed Rate Mortgages with LTVs <= 80%.
 
					

  Pool Purchase Contract No. A06810.2
 FRM - 1
 Amendment 23

   Contract No. A06810.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  N/A *
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  13.00 Basis Points
 
	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  *   If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee
is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
  Pool
Purchase Contract No. A06810.2
 FRM - 2
 Amendment 23

   Contract No. A06901.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	 Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 
	  
 	  
 	  
 
	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $5,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	 Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  281 - Financed Prem Opt LTV 90, 361 - 3rd Autom U-Writng SYS, 442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling
Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 
	  
 	  
 	  
 
	 Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Mortgages delivered under this contract are eligible for Radian Secondary Market Coverage.
 
					

  Pool Purchase Contract No. A06901.2
 FRM - 1
 Amendment 23

   Contract No. A06901.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  N/A * 
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  24.50 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  *   If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee
is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
  Pool
Purchase Contract No. A06901.2
 FRM - 2
 Amendment 23

  [LETTERHEAD OF FANNIEMAE]
  January 15, 2003
  Mr. Michael P. Leddy

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285 115 Perimeter Center Place
 Atlanta, GA 30346

	  Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	  Master Agreement Amendment No.:
 	  Amendment 24
 
	  
 	  Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement.
  For your convenience, we have summarized the amended terms and conditions below. However, the
summary set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
 The
amended terms and conditions:

	  •
 	  Modified Variances – Replace pages VAR 1 – 1 through VAR 1 – 11 (dated 1/7/2003) with pages VAR 1 – 1 through VAR 1 – 8 (dated 1/15/2003)
behind the Variances tab.
 
	  
 	  
 
	  •
 	  Modified Pool Purchase Contracts –
 
	  
 	  (a)
 	  A06302 – Replace pages FRM – 1 and FRM – 2 (dated 1/7/2003) with pages FRM – 1          
 and FRM – 2
(dated 1/15/2003) behind the Fixed-Rate tab.
 
	  
 	  (b)
 	  A06743 – Replace pages FRM – 1 and FRM – 2 (dated 1/7/2003) with pages FRM – 1
 and FRM – 2 (dated 1/15/2003) behind the Fixed-Rate
tab.
 

  By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the attachments to this Letter
Agreement. The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate original of this Letter Agreement to Diane Stokes at Fannie Mae within ten

  Master Agreement MA02373.2
LE - 1
 Amendment 24

  business days of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the
Lender within ten business days, Fannie Mae may, at its option, declare this Letter Agreement null and void.

	  Sincerely,
 	  
 
	  
 	  
 
	  FANNIE MAE
 	  
 
	  
 	  
 
	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	  David A. Bowles 
 Customer Account Manager
 	  
 
	   
 	  
 
	  Agreed, acknowledged and accepted.
 
	   
 	  
 
	 CRESCENT BANK AND TRUST COMPANY
 	  
 
	  
 	   
 	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name:
 	  PARTHIV J. DAVE
 	  
 
	  Title:
 	  V.P.
 	  
 
	  Date:
 	  1-12-03
 	  
 

  Master Agreement MA02373.2
 LE - 2
 Amendment 24

   VAR 1            Bulk ALT A Product

	 1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 
	  
 	  (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a verbal
Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so therefore no
debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform Residential Loan
Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 
	  
 	 (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application (Form 1003)
and Lender must verify reported income and assets.
 
	  
 	  
 	  
 
	  
 	  Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation
Alt A product.
 
	  
 	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 
	  3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 
	 5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of
 

  Master Agreement MA02373.2
 VAR 1 - 1
 Amendment 24

	  
 	  Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as
described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling Guide.
 
	  
 	  
 
	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR
CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 
	  
 	 (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 
	 8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 

  Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 24

   Attachment 1 
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
  Crescent Mortgage’s Credit Plus Program
 No Income – No Ratios/No Asset Verifications

	  
 	  
 	  No Income
 No Ratios / No Asset Verification
 
	  
 	  
 	   
 
	  Program Type
 	  
 	  PMM, R/T Refi, COR
 
	  
 	  
 	  
 
	 Product Type
 	  
 	  FRM only
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year
 
	  
 	  
 	  
 
	  Eligible Units
 	  
 	  1-2 unit properties
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	  Geographic Limitations
 	  
 	  None
 
	  
 	  
 	  
 
	 Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	  
 	  
 	  
 
	  Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	  
 	  
 	  
 
	  Mortgage Insurance
 	  
 	  Standard mortgage insurance required.
 
	  
 	  
 	  
 
	 Maximum LTVs and Credit Scores:
 	  
 	  
 
	  
 	  • Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  • 2nd Homes
 	  
 	  2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	 1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65% with
a credit score of 680.
 

  Master Agreement MA02373.2
 VAR 1 - 3
 Amendment 24

	  Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan. 
 
	  
 	  
 	  
 
	  Credit Report
 	  
 	  Three In-file merged credit report. 
 
	  
 	  
 	  
 
	  Qualifying Debt Ratios:
 	  
 	  Ratios are not considered. 
 
	  
 	  
 	  
 
	 Reserves:
 	  
 	  No assets are verified; reserves are not required. 
 
	  
 	  
 	  
 
	  Credit Criteria:
 	  
 	  
 
	  
 	  Trade Lines
 	  
 	  Three (3) rated trades
 
	  
 	  Credit History
 	  
 	  24 Months
 
	  
 	  Credit Explanations
 	  
 	  Not stated
 
	  
 	  Mortgage/Revolving/
 	  
 	  No Foreclosures.
 
	  
 	  Installment
 	  
 	  No Bankruptcies.
 
	  
 	  
 	 No 30-day lates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	  Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	  Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment. 
 
	  
 	  
 	  
 
	 Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment. 
 
	  
 	  
 	  
 
	  Seller contributions
 	  
 	  Per Fannie Guides. 
 
	  
 	  
 	  
 
	  Gift Funds
 	  
 	  No gifts allowed. 
 
	  
 	  
 	  
 
	  Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required. 
 
	  
 	  
 	  
 
	 Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only. 
 
	  
 	  
 	  
 
	  Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required. 
 
	  
 	  
 	  
 
	  Self-employed Profit & Loss/Balance Sheet
 	  
 	  Income verification is not required. No 4506 required. 
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only. 
 
					

 

	  
 	  
 	  No Income
 No Ratios / No Asset Verification
 
	  
 	  
 	   
 
	 Salary or hourly wage earnings and overtime and bonus income 
 	  
 	  No verification. Stated income only. 
 
	  
 	  
 	  
 
	  Commission income and independent contractor 
 	  
 	  No verification. Stated income only. 
 

  Master Agreement MA02373.2
 VAR 1 - 4

Amendment 24

   January 2003 Second Deal 30-Year FRM
 Bulk Mortgage Delivery Addendum
  Maximum
Volume: $10,118,840
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s Underwriting Guidelines or it
pays off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule “A” and as identified on
Schedule “B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio based upon the issue date principal
balance of each Mortgage and the original appraised value of the property securing each such Mortgage.
  Master Agreement MA02373.2
 VAR 1 - 5
 Amendment 24

  January 2003 Second Deal 30 Year FRM
 Schedule A
 Portfolio Summary
 30-year Fixed-Rate

	  Count
 	  :
 	  
 	  59
 	  
 
	  Volume
 	  :
 	  $
 	  10,118,840.00
 	  
 
	  WAC
 	  :
 	  
 	  6.4
 	  
 
	  WA OLTV
 	  :
 	  
 	  74.8
 	  
 
	  WA CLTV
 	  :
 	  
 	  74.8
 	  
 
	 WA State RTerm
 	  :
 	  
 	  359
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  2
 	  
 
	  Pet Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	  Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

 Master Agreement MA02373.2
 VAR 1 - 6
 Amendment 24

   January 2003 30 Year FRM
 Schedule B
 Lender Loan Numbers with & without SMC

	  Loan Number
 	   
 	  UPB
 	   
 
	 
 	   
 	 
 	   
 
	  1000999761
 	   
 	  96,000.00
 	   
 
	  1001005600
 	   
 	  177,000.00
 	  
 
	  1001026895
 	   
 	  200,000.00
 	  
 
	 1001034535
 	   
 	  100,068.00
 	  
 
	  1001064904
 	   
 	  264,200.00
 	  
 
	  1001070471
 	   
 	  190,700.00
 	  
 
	  1001070505
 	   
 	  121,000.00
 	  
 
	  1001074812
 	   
 	  202,500.00
 	  
 
	  1001076650
 	   
 	  211,000.00
 	  
 
	 1001077799
 	   
 	  140,000.00
 	  
 
	  1001081296
 	   
 	  147,000.00
 	  
 
	  1001081585
 	   
 	  151,300.00
 	  
 
	  1001085735
 	   
 	  215,400.00
 	  
 
	  1001086329
 	   
 	  125,000.00
 	  
 
	  1001089026
 	   
 	  149,200.00
 	  
 
	 1001091113
 	   
 	  80,000.00
 	  
 
	  1001094273
 	   
 	  119,000.00
 	  
 
	  1001097144
 	   
 	  228,000.00
 	  
 
	  1001097524
 	   
 	  181,000.00
 	  
 
	  1001098357
 	   
 	  150,000.00
 	  
 
	  1001099488
 	   
 	  238,400.00
 	  
 
	 1001101342
 	   
 	  157,000.00
 	  
 
	  1001101904
 	   
 	  247,000.00
 	  
 
	  1001105871
 	   
 	  188,000.00
 	  
 
	  1001107380
 	   
 	  229,250.00
 	  
 
	  1001110129
 	   
 	  173,000.00
 	  
 
	  1001112521
 	   
 	  240,000.00
 	  
 
	 1001113404
 	   
 	  145,600.00
 	  
 
	  1001113800
 	   
 	  118,000.00
 	  
 
	  1001114410
 	   
 	  190,000.00
 	  
 
	  1001115615
 	   
 	  240,000.00
 	  
 
	  1001116019
 	   
 	  290,000.00
 	  
 
	  1001116761
 	   
 	  235,000.00
 	  
 
	 1001117843
 	   
 	  148,000.00
 	  
 
	  1001118106
 	   
 	  83,350.00
 	  
 
	  1001122629
 	   
 	  127,000.00
 	  
 
	  1001124807
 	   
 	  83,000.00
 	  
 
	  1001126711
 	   
 	  100,000.00
 	  
 
	  1001127008
 	   
 	  211,400.00
 	  
 
	 1001128857
 	   
 	  157,000.00
 	  
 

  Master Agreement MA02373.2
 VAR 1 - 7
 Amendment 24

	  1001131463
 	  
 	  220,400.00
 	  
 
	  1001135787
 	  
 	  107,200.00
 	  
 
	  1001135928
 	  
 	  252,122.00
 	  
 
	  1001137254
 	  
 	  130,000.00
 	  
 
	  1001143153
 	  
 	  204,000.00
 	  
 
	 1001149788
 	  
 	  87,500.00
 	  
 
	  1000915403
 	  
 	  157,000.00
 	  
 
	  1001092384
 	  
 	  165,750.00
 	  
 
	  1001055936
 	  
 	  103,500.00
 	  
 
	  1001058302
 	  
 	  205,000.00
 	  
 
	  1001106135
 	  
 	  143,100.00
 	  
 
	  1001106457
 	  
 	  313,200.00
 	  
 
	 1001109295
 	  
 	  79,200.00
 	  
 
	  1001113677
 	  
 	  161,500.00
 	  
 
	  1001116712
 	  
 	  270,000.00
 	  
 
	  1001129707
 	  
 	  211,500.00
 	  
 
	  1001139227
 	  
 	  76,500.00
 	  
 
	  1001142445
 	  
 	  175,000.00
 	  
 
	  1001153228
 	  
 	  207,000.00
 	  
 

 Master Agreement MA02373.2
 VAR 1 - 8
 Amendment
24

   Contract No. A06302.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 
	  
 	  
 	  
 
	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $163,500,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and
applicable attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Crescent Credit Plus Fixed-Rate Mortgage Product.
 
	 See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such
Mortgages meet standard Fannie Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
 
					

  Pool Purchase Contract No. A06302.2
 FRM - 1
 Amendment 24

   Contract No. A06302.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	  41.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06302.2
 FRM - 2
 Amendment 24

   Contract No. A06743.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	 24837-000-9
 
	  
 	  
 	  24837-002-5
 
	  
 	  
 	  
 
	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $32,500,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	 Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and
applicable attachments.
 
	  
 	  
 	  
 
	 Additional Terms:
 	  
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis
points.
 
	  Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
 
	  See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such
Mortgages meet standard Fannie Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
 
					

  Pool Purchase Contract No. A06743.2
 FRM - 1
 Amendment 24

   Contract No. A06743.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	 Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  35.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06743.2
 FRM - 2
 Amendment 24

   [LETTERHEAD OF FANNIEMAE]
  January 21, 2003
  Mr. Michael P. Leddy

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285 115 Perimeter Center Place
 Atlanta, GA 30346

	 Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	  Master Agreement Amendment No.:
 	  Amendment 25
 
	  
 	  Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement.
  For your convenience, we have summarized the amended terms and conditions below. However, the
summary set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
  The amended terms and conditions:

	  •
 	  Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 8 (dated 1/15/2003) with pages VAR 1 – 1 through VAR 1 – 1 through VAR 1 – 7 (dated
1/21/2003) behind the Variances tab.
 
	  
 	  
 
	 •
 	  Modified Pool Purchase Contract Number A06724 – Replace page FRM – 1 (dated 1/7/2003) with page FRM – 1 (dated 1/21/2003) behind the Fixed-Rate
tab.
 

  By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the attachments to this Letter
Agreement. The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate original of this Letter Agreement to Diane Stokes at Fannie Mae
  Master Agreement MA02373.2
 LE - 1
 Amendment 25

   within ten business days of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this Letter Agreement
from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter Agreement null and void.

	  Sincerely,
 	  
 
	  
 	  
 
	  FANNIE MAE
 	  
 
	  
 	  
 
	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	 David A. Bowles 
 Customer Account Manager
 	  
 
	   
 	  
 
	  Agreed, acknowledged and accepted.
 
	  
 	  
 
	  CRESCENT BANK AND TRUST COMPANY
 	  
 
	  
 	   
 	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name:
 	  PARTHIV J. DAVE
 	  
 
	 Title:
 	  V.P.
 	  
 
	  Date:
 	  1-24-03
 	  
 

  Master Agreement MA02373.2
 LE - 2
 Amendment 25

   VAR 1            Bulk ALT A Product

	  1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 
	  
 	  (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a verbal
Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so therefore no
debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform Residential Loan
Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application (Form 1003)
and Lender must verify reported income and assets.
 
	  
 	  
 	  
 
	  
 	  Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation
Alt A product.
 
	  
 	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 
	 3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 
	  5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie
 

  Master Agreement
MA02373.2
 VAR 1 - 1
 Amendment 25

	  
 	 Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling
Guide.
 
	  
 	  
 
	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR
CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 
	  
 	  (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 
	  8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 

  Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 25

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
  Crescent Mortgage’s Credit Plus Program
 No Income – No Ratios/No Asset Verifications

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	 Program Type
 	  
 	  PMM, R/T Refi, COR
 
	  
 	  
 	  
 
	  Product Type
 	  
 	  FRM only
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year
 
	  
 	  
 	  
 
	  Eligible Units
 	  
 	  1-2 unit properties
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	 Geographic Limitations
 	  
 	  None
 
	  
 	  
 	  
 
	  Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	  
 	  
 	  
 
	  Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	  
 	  
 	  
 
	 Mortgage Insurance
 	  
 	  Standard mortgage insurance required.
 
	  
 	  
 	  
 
	  Maximum LTVs and Credit Scores:
 	  
 	  
 
	  
 	  • Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	 2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  • 2nd Homes
 	  
 	  
 
	  
 	  
 	  1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680.
 
					

  Master Agreement MA02373.2
 VAR 1 - 3
 Amendment 25

	  Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan. 
 
	  
 	  
 	  
 
	  Credit Report
 	  
 	  Three In-file merged credit report. 
 
	  
 	  
 	  
 
	 Qualifying Debt Ratios:
 	  
 	  Ratios are not considered. 
 
	  
 	  
 	  
 
	  Reserves:
 	  
 	  No assets are verified; reserves are not required. 
 
	  
 	  
 	  
 
	  Credit Criteria:
 	  
 	  
 
	  
 	  Trade Lines
 	  
 	  Three (3) rated trades
 
	  
 	  Credit History
 	  
 	  24 Months
 
	  
 	  Credit Explanations
 	  
 	  Not stated
 
	  
 	 Mortgage/Revolving/
 	  
 	  No Foreclosures.
 
	  
 	  Installment
 	  
 	  No Bankruptcies.
 
	  
 	  
 	  No 30-day lates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	  Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	  Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	 Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment. 
 
	  
 	  
 	  
 
	  Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment. 
 
	  
 	  
 	  
 
	  Seller contributions
 	  
 	  Per Fannie Guides. 
 
	  
 	  
 	  
 
	  Gift Funds
 	  
 	  No gifts allowed. 
 
	  
 	  
 	  
 
	 Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required. 
 
	  
 	  
 	  
 
	  Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only. 
 
	  
 	  
 	  
 
	  Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required. 
 
	  
 	  
 	  
 
	  Self-employed Profit & Loss/Balance Sheet
 	  
 	  Income verification is not required. No 4506 required. 
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only. 
 
					

 

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	  Salary or hourly wage earnings and overtime and bonus income 
 	  
 	  No verification. Stated income only. 
 
	  
 	  
 	  
 
	  Commission income and independent contractor 
 	  
 	  No verification. Stated income only. 
 

  Master Agreement MA02373.2
 VAR 1 - 4

Amendment 25

   January 2003 Third Deal 15-Year FRM
 Bulk Mortgage Delivery Addendum
  Maximum
Volume: $2,442,700
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s Underwriting Guidelines or it
pays off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule “A” and as identified on
Schedule “B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio based upon the issue date principal
balance of each Mortgage and the original appraised value of the property securing each such Mortgage.
 Master Agreement MA02373.2
 VAR 1 - 5
 Amendment 25

   January 2003 Third Deal 15 Year FRM
 Schedule A
 Portfolio Summary
 15-year Fixed-Rate

	  Count
 	  :
 	  
 	  18
 	  
 
	  Volume
 	  :
 	  $
 	  2,442,700.00
 	  
 
	  WAC
 	  :
 	  
 	  5.8
 	  
 
	  WA OLTV
 	  :
 	  
 	  63.6
 	  
 
	 WA CLTV
 	  :
 	  
 	  63.6
 	  
 
	  WA State RTerm
 	  :
 	  
 	  180
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  1
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	 Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

  Master Agreement MA02373.2
 VAR 1 - 6
 Amendment 25

   January 2003 15 Year FRM
 Schedule B
 Lender Loan Numbers without SMC

	  1001063013
 	  
 	  
 	  182,000.00
 	  
 
	  1000949642
 	  
 	  
 	  123,500.00
 	  
 
	  1001147584
 	  
 	  
 	  100,200.00
 	  
 
	  1001033123
 	  
 	  
 	  87,000.00
 	  
 
	 1001114519
 	  
 	  
 	  235,000.00
 	  
 
	  1001065976
 	  
 	  
 	  132,000.00
 	  
 
	  1001084399
 	  
 	  
 	  53,000.00
 	  
 
	  1001088473
 	  
 	  
 	  101,000.00
 	  
 
	  1001050291
 	  
 	  
 	  150,000.00
 	  
 
	  1001130846
 	  
 	  
 	  125,000.00
 	  
 
	 1001141900
 	  
 	  
 	  170,000.00
 	  
 
	  1001095932
 	  
 	  
 	  135,000.00
 	  
 
	  1001119914
 	  
 	  
 	  166,000.00
 	  
 
	  1001118650
 	  
 	  
 	  170,000.00
 	  
 
	  1001106978
 	  
 	  
 	  65,000.00
 	  
 
	  1001067162
 	  
 	  
 	  257,000.00
 	  
 
	 1001096252
 	  
 	  
 	  52,000.00
 	  
 
	  1001087152
 	  
 	  
 	  139,000.00
 	  
 

  Master Agreement MA02373.2
 VAR 1 - 7
 Amendment 25

   Contract No. A06724.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  24837-000-9
 
	  
 	  
 	  
 
	 Eligible Products:
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $21,500,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  January 1, 2003 - January 1, 2003
 
	  
 	  
 
	  Servicing Option:
 	  Special
 
	  
 	  
 
	  Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	 Seasoning Requirements:
 	  Current
 
	  
 	  
 
	  Special Feature Codes:
 	  Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation
that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
  Pool Purchase Contract No. A06724.2
 FRM - 1
 Amendment 25

   [LETTERHEAD OF FANNIEMAE]
  February 10, 2003
  Mr. Michael P. Leddy

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285 115 Perimeter Center Place
 Atlanta, GA 30346

	  Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	  Master Agreement Amendment No.:
 	  Amendment 26
 
	  
 	 Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement.
  For your convenience, we have summarized the amended terms and conditions below. However, the
summary set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
  The amended terms and conditions:

	  •
 	  Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 8 (dated 1/15/2003) with pages VAR 1 – 1 through VAR 1 – 12 (dated 2/11/2003)
behind the Variances tab.
 
	  
 	  
 
	  •
 	  Add Pool Purchase Contract Numbers –
 
	  
 	  (a)
 	  A06302 – Replace pages FRM – 1 and FRM – 2 (dated 1/15/2003) with pages FRM – 1 and FRM – 2 (dated 2/11/2003) behind the Fixed-Rate
tab.
 
	  
 	 (b)
 	  A06724 – Replace pages FRM – 1 and FRM – 2 (dated 1/7/2003) with pages FRM – 1 and FRM – 2 (dated 2/11/2003) behind the Fixed-Rate
tab.
 
	  
 	  (c)
 	  A06743 – Replace pages FRM – 1 and FRM – 2 (dated 1/15/2003) with pages FRM – 1 and FRM – 2 (dated 2/11 /2003) behind the Fixed-Rate
tab.
 

  By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the attachments to this Letter
Agreement. The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a
  Master Agreement MA02373.2
 LE - 1

Amendment 26

   duly-executed duplicate original of this Letter Agreement to Diane Stokes at Fannie Mae within ten business days of the date this Letter Agreement is executed by Fannie
Mae. If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter Agreement null and void.
  Sincerely,

	  FANNIE MAE
 
	  
 	  
 
	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	 David A. Bowles
 	  
 
	  
 	  Customer Account Manager
 	  
 
	  
 	   
 	  
 
	  Agreed, acknowledged and accepted.
 	  
 
	  
 	  
 
	  CRESCENT BANK AND TRUST COMPANY
 
	  
 	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	 Name:
 	  PARTHIV J. DAVE
 	  
 
	  Title:
 	  V.P.
 	  
 
	  Date:
 	  2-12-03
 	  
 

  Master Agreement MA02373.2
 LE - 2
 Amendment 26

	  VAR 1
 	  Bulk ALT A Product
 
	  
 	  
 
	  1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 
	  
 	  (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a
verbal Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so
therefore no debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform
Residential Loan Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application
(Form 1003) and Lender must verify reported income and assets.
 
	  
 	  
 	  
 
	  
 	  Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt
A product.
 
	  
 	  
 
	 2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 
	  3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 
	  5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that Fannie Mae does not waive any of such
representations and warranties of Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of
warranty by Lender, as provided in the Selling Guide.
 
				

 Master Agreement MA02373.2
 VAR 1 - 1
 Amendment 26

	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR
CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 
	  
 	  (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 
	  8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 

  Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 26

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
  Crescent Mortgage’s Credit Plus Program
 No Income – No Ratios/No Asset Verifications

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	 Program Type
 	  
 	  PMM, R/T Refi, COR
 
	  
 	  
 	  
 
	  Product Type
 	  
 	  FRM only
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year
 
	  
 	  
 	  
 
	  Eligible Units
 	  
 	  1-2 unit properties
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	 Geographic Limitations
 	  
 	  None
 
	  
 	  
 	  
 
	  Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	  
 	  
 	  
 
	  Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	  
 	  
 	  
 
	 Mortgage Insurance
 	  
 	  Standard mortgage insurance required.
 
	  
 	  
 	  
 
	  Maximum LTVs and Credit Scores:
 	  
 	  
 
	  
 	  • Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	 2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  • 2nd Homes
 	  
 	  
 
	  
 	  
 	  1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680.
 

  Master Agreement MA02373.2
 VAR 1 - 3
 Amendment 26

	  Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan.
 
	  
 	  
 	  
 
	  Credit Report
 	  
 	  Three In-file merged credit report.
 
	  
 	  
 	  
 
	 Qualifying Debt Ratios:
 	  
 	  Ratios are not considered.
 
	  
 	  
 	  
 
	  Reserves:
 	  
 	  No assets are verified; reserves are not required.
 
	  
 	  
 	  
 
	  Credit Criteria:
 	  
 	  
 
	  
 	  Trade Lines
 	  
 	  Three (3) rated trades
 
	  
 	  Credit History
 	  
 	  24 Months
 
	  
 	  Credit Explanations
 	  
 	  Not stated
 
	  
 	 Mortgage/Revolving/
 	  
 	  No Foreclosures.
 
	  
 	  Installment
 	  
 	  No Bankruptcies.
 
	  
 	  
 	  No 30-day lates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	  Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	  Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	 Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Seller contributions
 	  
 	  Per Fannie Guides.
 
	  
 	  
 	  
 
	  Gift Funds
 	  
 	  No gifts allowed.
 
	  
 	  
 	  
 
	 Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required.
 
	  
 	  
 	  
 
	  Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only.
 
	  
 	  
 	  
 
	  Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required.
 
	  
 	  
 	  
 
	  Self-employed Profit & Loss/Balance Sheet
 	  
 	  Income verification is not required. No 4506 required.
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only.
 
					

 

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	  Salary or hourly wage earnings and overtime and bonus income
 	  
 	  No verification. Stated income only. 
 
	  
 	  
 	  
 
	  Commission income and independent contractor
 	  
 	  No verification. Stated income only. 
 

  Master Agreement MA02373.2
 VAR 1 - 4

Amendment 26

   February 2003 First Deal 15-Year FRM without SMC
 Bulk Mortgage Delivery Addendum
  Maximum Volume: $4,700,000
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A-1” unless the Mortgage doesn’t meet
Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in
Schedule “A-1” and as identified on Schedule “B-1”. The term “CLTV” used in Schedule “A-1” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the
loan-to-value ratio based upon the issue date principal balance of each Mortgage and the original appraised value of the property securing each such Mortgage.
 Master Agreement
MA02373.2
 VAR 1 - 5
 Amendment 26

   February 2003 First Deal 15 Year FRM without SMC
 Schedule A-1
 Portfolio Summary
 15-year Fixed-Rate

	  Count
 	  :
 	  
 	  34
 	  
 
	  Volume
 	  :
 	  $
 	  4,738,285
 	  
 
	  WAC
 	  :
 	  
 	  5.7
 	  
 
	  WA OLTV
 	  :
 	  
 	  61.8
 	  
 
	 WA CLTV
 	  :
 	  
 	  61.8
 	  
 
	  WA State RTerm
 	  :
 	  
 	  179
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  2
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.0
 	  %
 
	 Pct Low/No Doc
 	  :
 	  
 	  100
 	  %
 

  Master Agreement MA02373.2
 VAR 1 - 6
 Amendment 26

   February 2003 15 Year FRM
 Schedule B-1
 Lender Loan Numbers without SMC

	  1001058310
 
	  1001003654
 
	  1001104296
 
	  1001128998
 
	  1001075413
 
	  1001095304
 
	  1001085446
 
	  1001186749
 
	  1001140282
 
	  1001142049
 
	  1001142023
 
	  1001139169
 
	 1001163540
 
	  1001137023
 
	  1001135332
 
	  1001141454
 
	  1001121548
 
	  1001121282
 
	  1001108024
 
	  1001098589
 
	  1001094380
 
	  1001178480
 
	  1001176120
 
	  1001070927
 
	  1001091022
 
	  1001152527
 
	  1001152584
 
	  1001152550
 
	  1001159555
 
	  1001148822
 
	 1001148913
 
	  1001165263
 
	  1001123296
 
	  1001144755
 

  Master Agreement MA02373.2
 VAR 1 - 7
 Amendment
26

   February 2003 First Deal 30-Year FRM with & without SMC
 Bulk Mortgage Delivery Addendum
  Maximum Volume:  $13,900,000
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A-2” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in
Schedule “A-2” and as identified on Schedule “B-2” for loans without SMC and Schedule “B-3” for loans with SMC. The term “CLTV” used in Schedule “A-2” and this Contract is the “Current
Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio based upon the issue date principal balance of each Mortgage and the original appraised value of the property securing each such Mortgage.
  Master Agreement MA02373.2
 VAR 1 - 8
 Amendment 26

   February 2003 First Deal 30 Year FRM with & without SMC
 Schedule A-2
 Portfolio Summary
 30-year Fixed-Rate

	  Count
 	  :
 	  
 	  80
 	  
 
	 Volume
 	  :
 	  $
 	  13,971,608
 	  
 
	  WAC
 	  :
 	  
 	  6.3
 	  
 
	  WA OLTV
 	  :
 	  
 	  70.5
 	  
 
	  WA CLTV
 	  :
 	  
 	  70.5
 	  
 
	  WA State RTerm
 	  :
 	  
 	  359
 	  
 
	 WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  2
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  
 
	  Pct Low/No Doc
 	  :
 	  
 	  100
 	  %
 

  Master Agreement MA02373.2
 VAR 1 - 9
 Amendment 26

   February 2003 30 Year FRM
 Schedule B-2
 Lender Loan Numbers without SMC

	 1001102407
 
	  1001123353
 
	  1001113883
 
	  1001113420
 
	  1001079787
 
	  1001095106
 
	  1000960722
 
	  1000959435
 
	  1000662286
 
	  1001168960
 
	  1001168762
 
	  1001186178
 
	  1001142247
 
	  1001147659
 
	  1001149317
 
	  1001148038
 
	  1001135357
 
	  1001137510
 
	  1001160801
 
	 1001160769
 
	  1001163953
 
	  1001164563
 
	  1001146206
 
	  1001145299
 
	  1001139425
 
	  1001128535
 
	  1001146966
 
	  1001110996
 
	  1001114089
 
	  1001094398
 
	  1001094992
 
	  1000965754
 
	  1001061355
 
	  1001068996
 
	  1001066552
 
	  1001044336
 
	  1000929313
 
	  1001178134
 
	 1001188471
 
	  1001184538
 

  Master Agreement MA02373.2
 VAR 1 - 10
 Amendment
26

	  1001100187
 
	  1001100294
 
	  1001103082
 
	  1001114204
 
	  1001115540
 
	  1001108701
 
	  1001107679
 
	  1001087897
 
	  1001152808
 
	  1001152998
 
	  1001149549
 
	  1001166014
 
	  1001167277
 
	  1001128782
 
	  1001126166
 
	 1001128006
 
	  1001130531
 
	  1001130861
 
	  1001130788
 
	  1001120722
 
	  1001119872
 
	  1001125622
 
	  1001143070
 
	  1001144789
 
	  1001133840
 
	  1001138138
 
	  1001136488
 
	  1001137114
 

  Master Agreement MA02373.2
 VAR 1 - 11
 Amendment
26

   February 2003 30 year FRM
 Schedule B-3
 Lender Loan Numbers with SMC

	  1001100096
 
	  1001147352
 
	 1001131646
 
	  1001159951
 
	  1001127321
 
	  1001085800
 
	  1001108362
 
	  1001178399
 
	  1000982122
 
	  1001084803
 
	  1001156494
 
	  1001141546
 

  Master Agreement MA02373.2
 VAR 1 - 12
 Amendment
26

   Contract No. A06302.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4 
 
	  
 	  Crescent Mortgage Services 
 	  23227-000-4 
 
	  
 	 Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 
	  
 	  
 	  
 
	  Eligible Products:
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $175,400,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  February 1, 2003 – February 1, 2003
 
	  
 	  
 
	 Servicing Option:
 	  Special
 
	  
 	  
 
	  Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	  Seasoning Requirements:
 	  Current
 
	  
 	  
 
	  Special Feature Codes:
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 
				

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 Crescent Credit Plus
Fixed-Rate Mortgage Product.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the
Alt-A guidelines incorporated in this Master Agreement.
 Pool Purchase Contract No. A06302.2
 FRM - 1
 Amendment 26

   Contract No. A06302.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  February 1, 2003 – February 1, 2003
 
	  
 	  
 
	  Guaranty Fee:
 	  41.00 Basis Points
 
	  
 	  
 
	  Buyup/Buydown Grid:
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

 Pool Purchase Contract No. A06302.2
 FRM - 2
 Amendment 26

   Contract No. A06724.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 
	  
 	  
 	  
 
	  Eligible Products:
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  $26,200,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  February 1, 2003 – February 1, 2003
 
	  
 	  
 
	  Servicing Option:
 	  Special
 
	  
 	  
 
	  Mortgage Type:
 	  Conventional
 
	  
 	  
 
	  Remittance Cycle:
 	  Standard
 
	  
 	  
 
	  Seasoning Requirements:
 	  Current
 
	  
 	  
 
	 Special Feature Codes:
 	  Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 Lender is allowed a maximum buyup to 22.50 basis points with the
expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis points.
  Pool Purchase Contract No. A06724.2
FRM - 1
 Amendment 26

   Contract No. A06724.2
  MBS Pricing Confirmation for Crescent Bank and Trust Company

 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools 
 formed under this Contract:
 	  
 	  February 1, 2003 - February 1, 2003
 
	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	  26.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (see additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06724.2
 FRM - 2
 Amendment 26

   Contract No. A06743.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT 
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	 24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase 
 Transactions for Delivery during First 
 Delivery Term:
 	  
 	  $34,600,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools 
 formed under this Contract:
 	  
 	  February 1, 2003 – February 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 

 

	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 Lender is allowed a maximum buyup to 22.50 basis
points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis points.
 Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
 See Schedule
“A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A guidelines incorporated in this Master
Agreement.
 

 Pool Purchase Contract No. A06743.2
 FRM - 1
 Amendment 26

   Contract No. A06743.2
  MBS Pricing Confirmation for Crescent Bank and Trust Company

 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools 
 formed under this Contract:
 	  
 	  February 1, 2003 – February 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  35.00 Basis Points
 
	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06743.2
 FRM - 2
 Amendment 26

   [LETTERHEAD OF FANNIEMAE]
  February 19, 2003
  Mr. Michael P. Leddy 

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285
 115 Perimeter Center Place
 Atlanta, GA 30346

	  Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	  Master Agreement Amendment No.:
 	  Amendment 27
 
	  
 	  Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement.
 For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
  The
amended terms and conditions:

	  •
 	  Modified Variances – Replace page VAR 1 – 1 through 12 (dated 2/11/2003) with pages VAR 1 – 1 through 8 (dated 2/19/2003) under the Variance
Tab.
 
	  
 	  
 
	  •
 	  Modified Pool Purchase Contracts –
 
	  
 	  1.
 	  Replace Pool Purchase Contract No. A06302, pages FRM – 1 through 2 (dated 2/11/2003) with pages FRM - 1 through 2 (dated 2/19/2003) under the Fixed-Rate Tab.

	  
 	  2.
 	  Replace Pool Purchase Contract No. A06724, page FRM – 1 (dated 2/11/2003) with page FRM - 1 (dated 2/19/2003) under the Fixed-Rate Tab.
 
	  
 	  3.
 	  Replace Pool Purchase Contract No. A06743, pages FRM – 1 through 2 (dated 2/11/2003) with pages FRM - 1 through 2 (dated 2/19/2003) under the Fixed-Rate Tab.

 Master Agreement MA02373.2
 LE - 1
 Amendment 27

   By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the attachments to this Letter Agreement.
The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate original of this Letter Agreement to Diane Stokes at Fannie Mae within ten business days
of the date this Letter Agreement is executed by Fannie Mae.
  If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the Lender within ten business days, Fannie
Mae may, at its option, declare this Letter Agreement null and void.
  Sincerely,
  FANNIE MAE

	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	  David A. Bowles
 Customer Account Manager
 	  
 
	  
 	  
 	  
 
	 Agreed, acknowledged and accepted.
 	  
 
	  
 	  
 
	  CRESCENT BANK AND TRUST COMPANY
 	  
 
	  
 	   
 	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name: 
 	  PARTHIV J. DAVE
 	  
 
	  Title: 
 	  V.P.
 	  
 
	  Date: 
 	  2-21-03
 	  
 
						

 Master Agreement MA02373.2
 LE - 2
 Amendment 27

	  VAR 1 
 	  Bulk ALT A Product
 
	  
 	  
 
	  1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 
	  
 	  (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a
verbal Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so
therefore no debt-to-income, ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform
Residential Loan Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application
(Form 1003) and Lender must verify reported income and assets.
 
	  
 	  
 
	  
 	  Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation
Alt A product.
 
	  
 	  
 	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 	  
 
	 3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 	  
 
	  5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie
 
				

 Master Agreement MA02373.2
 VAR 1 - 1
 Amendment 27

	  
 	  Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling
Guide.
 
	  
 	  
 
	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724
(fixed-rate Mortgages). FOR CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 
	  
 	  (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 	  
 
	  8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 

 Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 27

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
 Crescent Mortgage’s Credit Plus
Program
No Income – No Ratios/No Asset Verifications

	   
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	   
 	   
 	   
 
	  Program Type
 	  
 	  PMM, R/T Refi, COR
 
	  
 	  
 	  
 
	  Product Type
 	  
 	  FRM only
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year
 
	  
 	  
 	  
 
	 Eligible Units
 	  
 	  1-2 unit properties
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	  Geographic Limitations
 	  
 	  None.
 
	  
 	  
 	  
 
	  Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	  
 	  
 	  
 
	 Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	  
 	  
 	  
 
	  Mortgage Insurance
 	  
 	  Standard mortgage insurance required.
 
	  
 	  
 	  
 
	  Maximum LTVs and Credit Scores:
 	  
 	  
 
	  
 	  • Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	 2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  • 2nd Homes
 	  
 	  1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680.
 
	  
 	  
 	  
 
	  Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan.
 
	  
 	  
 	  
 
	 Credit Report
 	  
 	  Three In-file merged credit report.
 
	  
 	  
 	  
 
	  Qualifying Debt Ratios:
 	  
 	  Ratios are not considered.
 

  Master Agreement MA02373.2
 VAR 1 - 3
 Amendment
27

	  Reserves:
 	  
 	  No assets are verified; reserves are not required.
 
	  
 	  
 	  
 
	  Credit Criteria:
 	  
 	  
 
	  
 	  Trade lines
 	  
 	  Three (3) rated trades
 
	  
 	  Credit History
 	  
 	  24 months
 
	  
 	 Credit Explanations
 	  
 	  Not stated
 
	  
 	  Mortgage/Revolving/
 	  
 	  No Foreclosures.
 
	  
 	  Installment
 	  
 	  No Bankruptcies.
 
	  
 	  
 	  No 30-day lates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	  Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	  Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	 Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Seller contributions
 	  
 	  Per Fannie Guides.
 
	  
 	  
 	  
 
	 Gift Funds
 	  
 	  No gifts allowed.
 
	  
 	  
 	  
 
	  Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required.
 
	  
 	  
 	  
 
	  Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only.
 
	  
 	  
 	  
 
	  Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required.
 
	  
 	  
 	  
 
	 Self-employed Profit & Loss/Balance Sheet
 	  
 	  Income verification is not required. No 4506 required.
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only.
 
					

 

	   
 	   
 	  No Income 
 No Ratios / No Asset Verification
 
	  
 	  
 	   
 
	  Salary or hourly wage earnings and overtime and bonus income
 	  
 	  No verification. Stated income only.
 
	  Commission income and independent contractor
 	  
 	  No verification. Stated income only.
 

 Master Agreement MA02373.2
 VAR 1 - 4

Amendment 27

   February 2003 Second Deal 15-and 30 Year FRM with and without SMC
 Bulk Mortgage Delivery Addendum
  Maximum Volume: $8,287,366
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s
Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule
“A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property securing each such Mortgage.
  Master Agreement MA02373.2
 VAR 1 -
5
 Amendment 27

   February 2003 Second Deal 15- and 30-Year FRM with and without SMC
 Schedule A
 Portfolio Summary
 15- and 30-year Fixed-Rate

	  Count
 	  :
 	   
 	  49
 	   
 
	  Volume
 	  :
 	  $
 	  8,287,366.00
 	  
 
	 WAC
 	  :
 	  
 	  6.1
 	  
 
	  WA OLTV
 	  :
 	  
 	  70.0
 	  
 
	  WA CLTV
 	  :
 	  
 	  70.0
 	  
 
	  WA MTMLTV
 	  :
 	  
 	  70.0
 	  
 
	  WA State RTerm
 	  :
 	  
 	  309
 	  
 
	 WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  1
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	  Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

  Master Agreement MA02373.2
 VAR 1 - 6
 Amendment
27

   February 2003 Second Deal 15- and 30-Year FRM with and without SMC
 Schedule B
 Lender Loan Numbers
 15-year Non SMC

	  1001142478
 
	  1001195351
 
	  1001162344
 
	  1001182862
 
	  1001171907
 
	  1001177680
 
	  1001205044
 
	  1001209731
 
	  1000950509
 
	  1001207875
 
	  1001205317
 
	  1001205283
 
	  1001152147
 
	  1001145109
 
	  1001156411
 
	  1001161148
 
	   
 
	 30-year SMC
 
	   
 
	  1001127453
 
	  1001160843
 
	  1001177052
 
	  1001084266
 
	  1001198926
 
	  1001169927
 
	  1001153053
 

  Master Agreement MA02373.2
 VAR 1 - 7
 Amendment
27

	  30-year Non SMC
 
	   
 
	  1001159530
 
	  1001086253
 
	  1000750552
 
	  1001198835
 
	  1001198728
 
	  1001190014
 
	 1001157088
 
	  1001158698
 
	  1001147980
 
	  1001184264
 
	  1001203726
 
	  1001204278
 
	  1001213592
 
	  1001083185
 
	  1001115474
 
	  1001175155
 
	  1001188414
 
	  1001182664
 
	  1001181732
 
	  1001148772
 
	  1001151305
 
	  1001147493
 
	  1001147196
 
	  1001146578
 
	  1001165750
 
	 1001157906
 

  Master Agreement MA02373.2
 VAR 1 - 8
 Amendment
27

   Contract No. A06302.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  30 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $180,400,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for
 	  
 	  February 1, 2003 - February 1, 2003
 
	  Pools formed under this Contract:
 	  
 	  
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.

Crescent Credit Plus Fixed-Rate Mortgage Product.
 See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard Fannie
Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
  Pool Purchase Contract No. A06302.2
 FRM - 1
 Amendment 27

   Contract No. A06302.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	 Eligible Products:
 	  
 	  30 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Dates for Pools 
 formed under this Contract:
 	  
 	  February 1, 2003 - February 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  41.50 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06302.2
 FRM - 2
 Amendment 27

   Contract No. A06724.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
 MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  10, 15 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase 
 Transactions for Delivery during 
 First Delivery Term:
 	  
 	  $28,200,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for 
 Pools formed under this Contract:
 	  
 	  February 1, 2003 - February 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	  Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 Lender is allowed a maximum buyup to 22.50 basis points with the
expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis points.
  Pool Purchase Contract No. A06724.2
 FRM - 1
 Amendment 27

   Contract No. A06743.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	 24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  30 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase 
 Transactions for Delivery during 
 First Delivery Term:
 	  
 	  $36,100,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for 
 Pools formed under this Contract:
 	  
 	  February 1, 2003 - February 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 

  Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 Pool contract price adjustment is waived.
 Lender
is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis points.
 Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage
Product > 80% LTV.
 See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
 Pool Purchase Contract No. A06743.2
 FRM - 1
 Amendment 27

   Contract No. A06743.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30 - year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Dates for Pools 
 formed under this Contract:
 	  
 	  February 1, 2003 - February 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  35.50 Basis Points
 
	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06743.2
 FRM - 2
 Amendment 27

   [LETTERHEAD OF FANNIEMAE]
  March 7, 2003
  Mr. Michael P. Leddy

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285 115 Perimeter Center Place
 Atlanta, GA 30346

	  Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	  Master Agreement Amendment No.:
 	  Amendment 28
 
	  
 	  Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement. 
 For your convenience, we have summarized the amended terms and conditions below. However, the
summary set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
  The amended terms and conditions:

	  •
 	  Modified Master Conversion – Replace page MA – 4 (dated 2/5/2002) with page MA – 4 (dated 3/7/2003).
 
	  
 	  
 
	  •
 	  Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 8 (dated 2/19/2003) with pages VAR 1 – 1 through VAR 1 – 8 (dated 3/7/2003) behind the
Variances tab.
 
	  
 	  
 
	  •
 	  Modified Pool Purchase Contracts A06302 and A06743 – Replace pages FRM – 1 and FRM - 2 (dated 2/19/2003) with pages FRM – 1 and FRM – 2 (dated 3/7/2003)
behind the Fixed-Rate tab.
 

  By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the
attachments to this Letter Agreement. The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate original of this Letter Agreement to Diane Stokes at
Fannie Mae within ten business days of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not
 Master Agreement MA02373.2
 LE - 1
 Amendment
28

   receive an executed duplicate original of this Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter Agreement null and
void.
  Sincerely,
  FANNIE MAE

	  By:
 	  /s/ MAC SMITH FOR DAVID BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	  David A. Bowles
 	  
 
	  
 	  Customer Account Manager
 	  
 
	  
 	   
 	  
 
	  Agreed, acknowledged and accepted.
 	  
 
	  
 	  
 
	 CRESCENT BANK AND TRUST COMPANY
 	  
 
	  
 	   
 	  
 
	  By:
 	  /s/PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name:
 	  PARTHIV J. DAVE
 	  
 
	  Title:
 	  V.P.
 	  
 
	  Date:
 	  3-10-03
 	  
 
				

  Master Agreement MA02373.2
 LE - 2
 Amendment 28

   MASTER AGREEMENT
 Master Conversion for Crescent Bank and Trust Company

MA02373.2-05
  Upon entering into this Master Conversion, Lender is obligated to sell to Fannie Mae, and Fannie Mae is obligated to buy from Lender, Mortgages in the aggregate unpaid principal
amount of the Mandatory Delivery Amount stated below under any of the following programs: Fannie Mae’s MBS program, Negotiated Cash Transactions or Standard Cash Transactions. Mortgages must be sold during the period commencing with the
Effective Date set forth below and ending with the Expiration Date set forth below (the “Conversion Period”) and must meet all requirements set forth in the Master Agreement, as well as those set forth in the applicable MBS Contracts (as
described below). There must be a valid MBS Pricing Confirmation for each MBS Contract below prior to Lender’s sale of any Mortgages under such MBS Contract.
  Lender shall be deemed to have
accepted the terms of this Master Conversion and all applicable MBS Pricing Confirmations either (i) upon execution of the Master Agreement or Master Agreement amendment to which this Master Conversion is attached, or (ii) if this Master Conversion
is not attached to a Master Agreement amendment, then upon delivery of any Mortgages under the MBS Contracts during the current Conversion Period.

	  Master Agreement:
 	  
 	  MA02373.2
 
	  
 	  
 	  
 
	  Mandatory Delivery Amount:
 	  
 	  $224,000,000.00, plus or minus 5%
 
	  
 	  
 	  
 
	 Effective Date:
 	  
 	  January 1, 2003
 
	  
 	  
 	  
 
	  Expiration Date:
 	  
 	  June 30, 2003
 
	  
 	  
 	  
 
	  MBS Contracts:
 	  
 	  A06302, A06304, A06305, A06808, A06809, A06810m
 A06811 and A06743
 

  Master
Agreement MA02373.2
 MA - 4
 Amendment 28

	  VAR 1
 	  Bulk ALT A Product
 
	  
 	  
 
	  1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 
	  
 	 (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a verbal
Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so therefore no
debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform Residential Loan
Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application (Form 1003)
and Lender must verify reported income and assets.
 
	  
 	  
 	  
 
	  
 	 Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt
A product.
 
	  
 	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 
	  3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with,
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 
	 5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of
 

  Master Agreement MA02373.2
 VAR 1 - 1
 Amendment 28

	  
 	  Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as
described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling Guide.
 
	  
 	  
 	  
 
	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate Mortgages).
FOR CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 	  
 
	  
 	 (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 	  
 
	 8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 

  Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 28

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
  Crescent Mortgage’s Credit Plus Program
 No Income – No Ratios/No Asset Verifications

	  
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	  
 	  
 	  
 
	  Program Type
 	  
 	  PMM, R/T Refi, COR 
 
	  
 	  
 	  
 
	 Product Type
 	  
 	  FRM only 
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year 
 
	  
 	  
 	  
 
	  Eligible Units
 	  
 	  1-2 unit properties 
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	  Geographic Limitations
 	  
 	  None 
 
	  
 	  
 	  
 
	 Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes 
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers. 
 
	  
 	  
 	  
 
	  Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than 75%.

 
	  
 	  
 	  
 
	  Mortgage Insurance
 	  
 	  Standard mortgage insurance required. 
 
	  
 	  
 	  
 
	 Maximum LTVs and Credit Scores:
 	  
 	  
 
	  
 	  • Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	 • 2nd Homes
 	  
 	  
 
	  
 	  
 	  
 	  1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680. 
 
	  
 	  
 	  
 
	  Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan. 
 
	  
 	  
 	  
 
	  Credit Report
 	  
 	  Three In-file merged credit report. 
 
	  
 	  
 	  
 
	  Qualifying Debt Ratios:
 	  
 	  Ratios are not considered. 
 

 Master Agreement MA02373.2
 VAR 1 - 3

Amendment 28

	  Reserves:
 	  
 	  No assets are verified; reserves are not required.
 
	  
 	  
 	  
 
	  Credit Criteria:
 	  
 	  
 
	  
 	  Trade Lines
 	  
 	  Three (3) rated trades
 
	  
 	  Credit History
 	  
 	  24 Months
 
	  
 	  Credit Explanations
 	  
 	  Not stated
 
	  
 	  Mortgage/Revolving/
 	  
 	  No Foreclosures.
 
	  
 	 Installment
 	  
 	  No Bankruptcies.
 
	  
 	  
 	  No 30-day lates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	  Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	  Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	 Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Seller contributions
 	  
 	  Per Fannie Guides.
 
	  
 	  
 	  
 
	  Gift Funds
 	  
 	  No gifts allowed.
 
	  
 	  
 	  
 
	  Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required.
 
	  
 	  
 	  
 
	 Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only.
 
	  
 	  
 	  
 
	  Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required.
 
	  
 	  
 	  
 
	  Self-employed Profit & Loss/Balance Sheet
 	  
 	  Income verification is not required. No 4506 required.
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only.
 
					

 

	  
 	   
 	 No Income
 No Ratios / No Asset Verification
 
	  
 	   
 	   
 
	  Salary or hourly wage earnings and overtime and bonus income
 	  
 	  No verification. Stated income only.
 
	  
 	  
 	  
 
	  Commission income and independent contractor
 	  
 	  No verification. Stated income only.
 

  Master Agreement MA02373.2

VAR 1 - 4
 Amendment 28

   March 2003 30-Year FRM Deal with and without SMC
 Bulk Mortgage Delivery Addendum
  Maximum Volume: $8,762,120.00
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s
Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule
“A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property securing each such Mortgage.
 Master Agreement MA02373.2

VAR 1 - 5
 Amendment 28

   March 2003 30-Year FRM Deal with and without SMC
 Schedule A
 Portfolio Summary
 30-year Fixed-Rate

	  Count
 	  :
 	   
 	  52
 	  
 
	  Volume
 	  :
 	  $
 	  8,762,120.00
 	  
 
	  WAC
 	  :
 	  
 	  6.3
 	  
 
	  WA OLTV
 	  :
 	  
 	  73.1
 	  
 
	 WA CLTV
 	  :
 	  
 	  73.1
 	  
 
	  WA MTMLTV
 	  :
 	  
 	  73.1
 	  
 
	  WA State RTerm
 	  :
 	  
 	  360
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  1
 	  
 
	 Pct Full/Alt Doc—: 
 	  :
 	  
 	  0.00
 	  %
 
	  Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

  Master Agreement MA02373.2
 VAR 1 - 6

Amendment 28

   March 2003 30-Year FRM Deal with and without SMC
 Schedule B
 Lender Loan Numbers

	  SMC:
 
	  1001145091
 
	  1001223872
 
	  1001225182
 
	  1001234796
 
	  1001222247
 
	  1001221256
 
	 1001245529
 
	  1001148731
 
	  1001177573
 
	  1001168697
 
	   
 
	  Non-SMC:
 
	  1001163458
 
	  1001152014
 
	  1001149010
 
	  1001173176
 
	  1001178282
 
	  1001109659
 
	  1001009669
 
	  1001222221
 
	  1001227691
 
	  1001227659
 
	  1001228749
 
	  1001228459
 
	  1001241148
 
	 1001188216
 
	  1001187069
 
	  1001208485
 
	  1001204617
 
	  1001200110
 
	  1001205333
 
	  1001233913
 
	  1001210788
 
	  1001231768
 
	  1001241981
 
	  1001238805
 
	  1001142163
 
	  1001150018
 

  Master Agreement MA02373.2
 VAR 1 - 7

Amendment 28

	  1001178787
 
	  1001170487
 
	  1001252541
 
	  1001249836
 
	 1001223187
 
	  1001235819
 
	  1001164175
 
	  1001153681
 
	  1001205192
 
	  1001209491
 
	  1001216470
 
	  1001214939
 
	  1001214905
 
	  1001178589
 
	  1001180577
 
	  1001186277
 

  Master Agreement MA02373.2
 VAR 1 - 8

Amendment 28

   Contract No. A06302.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company 
 	  Lender Number: 23227-000-4
 
	  
 	 Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $188,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  0
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 

 

	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Crescent Credit Plus Fixed-Rate Mortgage Product.
 
	  See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard
Fannie Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
 

  Pool Purchase Contract No. A06302.2
 FRM - 1
 Amendment
28

   Contract No. A06302.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	 Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  41.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  Pool Purchase Contract No. A06302.2
 FRM - 2
 Amendment 28

   Contract No. A06743.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
 MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $38,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 

 

	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis points.

	  Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
 
	  See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages meet standard
Fannie Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
 

  Pool Purchase Contract No. A06743.2
 FRM - 1
 Amendment
28

   Contract No. A06743.2
 MBS Pricing Confirmation for Crescent Bank and Trust Company

MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master Conversion
governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  35.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

 Pool Purchase Contract No. A06743.2
 FRM - 2
 Amendment 28

   [LETTERHEAD OF FANNIEMAE]
  March 11, 2003
  Mr. Michael P. Leddy

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285
 115 Perimeter Center Place
 Atlanta, GA 30346

	  Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	  Master Agreement Amendment No.:
 	  Amendment 29
 
	  
 	  Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement.
  For your convenience, we have summarized the amended terms and conditions below. However, the
summary set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
 The
amended terms and conditions:

	  •
 	  Modified Master Agreement – Replace pages MA – 3 and MA – 4 (dated 12/5/2002) with pages MA – 3 and MA – 4 (dated 3/11/2003).

	  
 	  
 
	  •
 	  Modified Variance – Replace pages VAR 1 – 1 through 8 (dated 2/19/2003) with pages VAR 1 – 1 through 7 (dated 3/11/2003) under the Variance
Tab.
 
	  
 	  
 
	  •
 	  Modified Pool Purchase Contracts –
 
	  
 	  1.
 	  Replace Pool Purchase Contract No. A06724, pages FRM – 1 (dated 2/19/2003) and FRM – 2 (dated 2/11/2003) with pages FRM – 1 through 2 (dated 3/11/2003) under the
Fixed-Rate Tab.
 
	  
 	  2.
 	  Replace Pool Purchase Contract No. A06901, pages FRM – 1 through 2 (dated 1/7/2003) with pages FRM – 1 through 2 (dated 3/11/2003) under the Fixed-Rate Tab.

  Master Agreement MA02373.2
 LE - 1
 Amendment 29

  By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the attachments to this Letter Agreement.
The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate original of this Letter Agreement to Diane Stokes at Fannie Mae within ten business days
of the date this Letter Agreement is executed by Fannie Mae.
  If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the Lender within ten business days, Fannie
Mae may, at its option, declare this Letter Agreement null and void.
  Sincerely,

	  FANNIE MAE
 	  
 
	  
 	  
 	  
 
	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	  David A. Bowles
 Customer Account Manager
 	  
 
	  
 	   
 	  
 
	 Agreed, acknowledged and accepted.
 	  
 

 

	  CRESCENT BANK AND TRUST COMPANY
 
	  
 
	  By:
 	  /s/ PARTHIV J. DAVE
 	  
 
	  
 	 
 	  
 
	  Name:
 	  PARTHIV J. DAVE
 	  
 
	  Title:
 	  V.P.
 	  
 
	  Date:
 	  3-17-03
 	  
 

  Master Agreement MA02373.2
 LE - 2
 Amendment 29

  EXHIBIT 1
  TO MASTER AGREEMENT MA02373.2

	  Lender Name
 	  Crescent Bank and Trust Company
 
	  
 	  
 
	  Lender Number
 	  23227-000-4
 
	  
 	  
 
	  Delivery Term:
 	  Second
 
	  
 	  
 
	  Effective Date of Delivery Term:
 	  August 1, 2001
 
	  
 	  
 
	  Expiration Date of Delivery Term:
 	  June 30, 2003
 
	  
 	  
 
	  Estimated Dollar Volume for Delivery Term:
 	  $440,000,000.00 (eligible for delivery only upon incremental conversions to Mandatory Delivery Amounts under one or more Master Conversions)
 

 Master Agreement MA02373.2
 MA - 3
 Amendment 29

   MASTER AGREEMENT
  Master Conversion for Crescent Bank and Trust Company

MA02373.2-02
  Upon entering into this Master Conversion, Lender is obligated to sell to Fannie Mae, and Fannie Mae is obligated to buy from Lender, Mortgages in the aggregate unpaid principal
amount of the Mandatory Delivery Amount stated below under any of the following programs: Fannie Mae’s MBS program, Negotiated Cash Transactions or Standard Cash Transactions. Mortgages must be sold during the period commencing with the
Effective Date set forth below and ending with the Expiration Date set forth below (the “Conversion Period”) and must meet all requirements set forth in the Master Agreement, as well as those set forth in the applicable MBS Contracts (as
described below). There must be a valid MBS Pricing Confirmation for each MBS Contract below prior to Lender’s sale of any Mortgages under such MBS Contract.
  Lender shall be deemed to have
accepted the terms of this Master Conversion and all applicable MBS Pricing Confirmations either (i) upon execution of the Master Agreement or Master Agreement amendment to which this Master Conversion is attached, or (ii) if this Master Conversion
is not attached to a Master Agreement amendment, then upon delivery of any Mortgages under the MBS Contracts during the current Conversion Period.

	  Master Agreement:
 	  
 	  MA02373.2
 
	  
 	  
 	  
 
	  Mandatory Delivery Amount:
 	  
 	  $230,000,000.00, plus or minus 5%
 
	  
 	  
 	  
 
	 Effective Date
 	  
 	  January 1, 2003
 
	  
 	  
 	  
 
	  Expiration Date:
 	  
 	  June 30, 2003
 
	  
 	  
 	  
 
	  MBS Contracts:
 	  
 	  A06302, A06303, A06304, A06305, A06724, A06743, A06808, A06809, A06810, A06811, A06901, AW6306
 

  Master Agreement MA02373.2
 MA - 4 
 Amendment 29

	  VAR 1
 	  Bulk ALT A Product
 
	  
 
	  1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 
	  
 	 (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a
verbal Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so
therefore no debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 
	  
 	  (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform
Residential Loan Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 
	  
 	  (d)
 	  “Full/ Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application
(Form 1003) and Lender must verify reported income and assets.
 
	  
 
	  
 	 Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/ Alternative Documentation
Alt A product.
 
	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 
	  3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
				

 Master Agreement MA02373.2
 VAR 1 - 1 
 Amendment 29

	  5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of
warranty by Lender, as provided in the Selling Guide.
 
	  
 	  
 
	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate Mortgages).
FOR CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 
	  
 	 (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 	  
 
	 8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 
				

  Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 29

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
  Crescent Mortgage’s Credit Plus Program
 No Income – No Ratios/No Asset Verifications

	  
 	  
 	  No Income
 No Ratios / No Asset Verification
 
	  
 	  
 	   
 
	  Program Type
 	  
 	  PMM, R/T Refi, COR
 
	  
 	  
 	  
 
	 Product Type
 	  
 	  FRM only
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year
 
	  
 	  
 	  
 
	  Eligible Units
 	  
 	  1-2 unit properties
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple, 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	  Geographic Limitations
 	  
 	  None
 
	  
 	  
 	  
 
	 Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	  
 	  
 	  
 
	  Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	  
 	  
 	  
 
	  Mortgage Insurance
 	  
 	  Standard mortgage insurance required.
 
	  
 	  
 	  
 
	 Maximum LTVs and Credit Scores:
 	  
 	  
 
	  
 	  • Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	 • 2nd Homes
 	  
 	  1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680.
 
	  
 	  
 	  
 	  
 
	  Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan.
 
	  
 	  
 	  
 
	  Credit Report
 	  
 	  Three In-file merged credit report.
 
	  
 	  
 	  
 
	  Qualifying Debt Ratios:
 	  
 	  Ratios are not considered.
 
	  
 	  
 	  
 
	 Reserves:
 	  
 	  No assets are verified; reserves are not required.
 
	  
 	  
 	  
 
	  Credit Criteria: 
 	  
 	  
 
	  
 	  Trade Lines
 	  
 	  Three (3) rated trades
 
	  
 	  Credit History
 	  
 	  24 Months
 
	  
 	  Credit Explanations
 	  
 	  Not stated
 

  Master Agreement MA02373.2
VAR 1 - 3
 Amendment
29

	  Mortgage/Revolving/ Installment
 	  
 	  No Foreclosures.
 No Bankruptcies.
 No 30-day dates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	 Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	  Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	 Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the downpayment.
 
	  
 	  
 	  
 
	  Seller contributions
 	  
 	  Per Fannie Guides.
 
	  
 	  
 	  
 
	  Gift Funds
 	  
 	  No gifts allowed.
 
	  
 	  
 	  
 
	  Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required.
 
	  
 	  
 	  
 
	  Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only.
 
	  
 	  
 	  
 
	 Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required.
 
	  
 	  
 	  
 
	  Self-employed Profit & Loss/Balance Sheet
 	  
 	  Income verification is not required. No 4506 required.
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only.
 
	  
 	  
 	  
 
	  
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	  
 	   
 	   
 
	  Salary or hourly wage earnings and overtime and bonus income
 	  
 	  No verification. Stated income only.
 
	  
 	  
 	  
 
	 Commission income and independent contractor
 	  
 	  No verification. Stated income only.
 

  Master Agreement MA02373.2
 VAR 1 - 4

Amendment 29

   March 2003 30-Year FRM Deal with and without SMC
 Bulk Mortgage Delivery Addendum
  Maximum Volume: $5,608,100.00
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet Lender’s
Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in Schedule
“A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property securing each such Mortgage.
  Master Agreement MA02373.2
 VAR 1 -
5
 Amendment 29

   March 2003 15-Year FRM Deal with and without SMC
 Schedule A 
 Portfolio Summary 
 15-year Fixed-Rate

	  Count
 	  :
 	  
 	  35
 	  
 
	 Volume
 	  :
 	  $
 	  5,608,100.00
 	  
 
	  WAC
 	  :
 	  
 	  5.6
 	  
 
	  WA OLTV
 	  :
 	  
 	  62.9
 	  
 
	  WA CLTV
 	  :
 	  
 	  62.9
 	  
 
	  WA MTMLTV
 	  :
 	  
 	  62.9
 	  
 
	 WA State RTerm
 	  :
 	  
 	  180
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  1
 	  
 
	  Pct Full/Alt Doc 
 	  :
 	  
 	  0.00
 	  %
 
	  Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

 Master Agreement MA02373.2
 VAR 1 - 6
 Amendment
29

   March 2003 15-Year FRM Deal with and without SMC
 Schedule B
 Lender Loan Numbers

	  Non-SMC
 
	  
 
	  1001094463
 
	  1001182326
 
	  1001113917
 
	  1000916195
 
	  1001226685
 
	  1001198918
 
	  1001188042
 
	  1001215613
 
	  1001223864
 
	  1001208394
 
	  1001251519
 
	  1001230513
 
	  1001240462
 
	  1001230463
 
	  1001252509
 
	  1001246097
 
	 1001151750
 
	  1001149416
 
	  1001168838
 
	  1001117116
 
	  1001213253
 
	  1001216132
 
	  1001224169
 
	  1001228079
 
	  1001228038
 
	  1001223492
 
	  1001184587
 
	  1001201407
 
	  1001202421
 
	  1001198173
 
	  1001203502
 
	  
 
	  SMC:
 
	  1001246055
 
	  1001187689
 
	  1001124484
 
	  1001187440
 

 Master Agreement MA02373.2
 VAR 1 - 7
 Amendment 29

   Contract No. A06724.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  10, 15 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $33,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	  Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  361 - 3rd Autom U-Writng SYS, 442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis
points.
 

  Pool Purchase Contract No. A06724.2
 FRM - 1
 Amendment 29

  Contract No. A06724.2
  MBS Pricing Confirmation for Crescent Bank and Trust Company

MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master Conversion
governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  10, 15 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  27.50 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

 Pool Purchase Contract No. A06724.2
 FRM - 2
 Amendment 29

   Contract No. A06901.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  10, 15 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $5,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  361 - 3rd Autom U-Writng SYS, 442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Mortgages delivered under this contract are eligible for Radian Secondary Market Coverage.
 

  Pool Purchase Contract No. A06901.2
 FRM - 1
 Amendment 29

   Contract No. A06901.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
MA02373.2
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  10, 15 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  N/ A *
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  24.50 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

  * If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is
subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing
Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
 Pool
Purchase Contract No. A06901.2
 FRM - 2
 Amendment 29

   [LETTERHEAD OF FANNIEMAE]
  March 19, 2003
  Mr. Michael P. Leddy

Executive Vice President (Crescent Mortgage)
 Crescent Bank and Trust Company
 South Terraces, Suite 285 115 Perimeter Center Place
 Atlanta, GA 30346

	  Subject
 	  Master Agreement No:
 	  MA02373.2
 
	  
 	  Master Agreement Amendment No.:
 	  Amendment 30
 
	  
 	  Lender No.:
 	  23227-000-4
 

  Dear Mr. Leddy:
  By execution of this
Letter Agreement, Fannie Mae (“Fannie Mae”) and Crescent Bank and Trust Company (the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The amended terms and conditions are set
forth in the amended pages to the Master Agreement and (if applicable) the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master Agreement binder as described below. Capitalized terms used but
not defined in this Letter Agreement shall have the meanings set forth in the Master Agreement.
  For your convenience, we have summarized the amended terms and conditions below. However, the
summary set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached amended pages for a complete description of the amended terms and conditions.
 The
amended terms and conditions:

	  •
 	  Modified Master Agreement, Exhibit 1 and Master Conversion – Replace pages MA – 3 and MA – 4 (dated 3/11/2003) with pages MA – 3 and MA – 4
(dated 3/19/2003).
 
	  
 	  
 
	  •
 	  Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 7 (dated 3/11/2003) with pages VAR 1 – 1 through VAR 1 – 8 (dated 3/19/2003)
behind the Variances tab.
 
	  
 	  
 
	  •
 	  Modified Pool Purchase Contracts – 
 
	  
 	  (a)
 	  A06302 – Replace pages FRM – 1 and FRM – 2 (dated 3/7/2003) with pages FRM – 1 and FRM – 2 (dated 3/19/2003) behind the Fixed-Rate
tab.
 
	  
 	  (b)
 	  A06724 – Replace pages FRM – 1 and FRM – 2 (dated 2/19/2003 and 2/11/2003, respectively) with pages FRM – 1 and FRM – 2 (dated 3/19/2003) behind the
Fixed-Rate tab.
 
	  
 	  (c)
 	  A06743 – Replace pages FRM – 1 and FRM – 2 (dated 3/7/2003) with pages FRM – 1 and FRM – 2 (dated 3/19/2003) behind the Fixed-Rate
tab.
 

 Master Agreement MA02373.2
LE - 1
 Amendment 30

   By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and conditions as set forth in the attachments to this Letter Agreement.
The effective date of the amendments is the date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate original of this Letter Agreement to Diane Stokes at Fannie Mae within ten business days
of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter
Agreement null and void.
  Sincerely,
  FANINIE MAE

	  By:
 	  /s/ DAVID A. BOWLES
 	  
 
	  
 	 
 	  
 
	  
 	  David A. Bowles 
 	  
 
	  
 	  Customer Account Manager
 	  
 

  Agreed, acknowledged and accepted.
 CRESCENT BANK AND TRUST COMPANY

	  By:
 	  /s/ MICHAEL P. LEDDY
 	  
 
	  
 	 
 	  
 
	  Name:
 	  Michael P. Leddy
 	  
 
	  Title:
 	  EVP
 	  
 
	  Date:
 	  3-21-03
 	  
 

  Master Agreement MA02373.2
 LE - 2
 Amendment 30

   EXHlBIT 1
  TO MASTER AGREEMENT MA02373.2

	  Lender Name
 	  
 	  Crescent Bank and Trust Company
 
	  
 	  
 	  
 
	 Lender Number
 	  
 	  23227-000-4
 
	  
 	  
 	  
 
	  Delivery Term:
 	  
 	  Second
 
	  
 	  
 	  
 
	  Effective Date of Delivery Term:
 	  
 	  August 1, 2001
 
	  
 	  
 	  
 
	  Expiration Date of Delivery Term:
 	  
 	  June 30, 2003
 
	  
 	  
 	  
 
	  Estimated Dollar Volume for Delivery Term:
 	  
 	  $447,000,000.00
 
	  
 	  
 	 (eligible for delivery only upon incremental conversions to Mandatory Delivery Amounts under one or more Master Conversions)
 

  Master Agreement MA02373.2
 MA - 3
 Amendment 30

   MASTER AGREEMENT
  Master Conversion for Crescent Bank and Trust Company

MA02373.2-05
  Upon entering into this Master Conversion, Lender is obligated to sell to Fannie Mae, and Fannie Mae is obligated to buy from Lender, Mortgages in the aggregate unpaid principal
amount of the Mandatory Delivery Amount stated below under any of the following programs: Fannie Mae’s MBS program, Negotiated Cash Transactions or Standard Cash Transactions. Mortgages must be sold during the period commencing with the
Effective Date set forth below and ending with the Expiration Date set forth below (the “Conversion Period”) and must meet all requirements set forth in the Master Agreement, as well as those set forth in the applicable MBS Contracts (as
described below). There must be a valid MBS Pricing Confirmation for each MBS Contract below prior to Lender’s sale of any Mortgages under such MBS Contract.
  Lender shall be deemed to have
accepted the terms of this Master Conversion and all applicable MBS Pricing Confirmations either (i) upon execution of the Master Agreement or Master Agreement amendment to which this Master Conversion is attached, or (ii) if this Master Conversion
is not attached to a Master Agreement amendment, then upon delivery of any Mortgages under the MBS Contracts during the current Conversion Period.

	  Master Agreement:
 	  
 	  MA02373.2
 
	  
 	  
 	  
 
	 Mandatory Delivery Amount:
 	  
 	  $237,000,000.00, plus or minus 5%
 
	  
 	  
 	  
 
	  Effective Date:
 	  
 	  January 1, 2003
 
	  
 	  
 	  
 
	  Expiration Date:
 	  
 	  June 30, 2003
 
	  
 	  
 	  
 
	  MBS Contracts:
 	  
 	  A06302, A06304, A06305, A06808, A06809, A06810, A06811, A06724 and A06743
 

  Master
Agreement MA02373.2
 MA - 4
 Amendment 30

	  VAR 1
 	  Bulk ALT A Product
 
	  
 
	 1.
 	  Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been originated with certain variances to Fannie Mae’s
underwriting and documentation requirements described as one of the following Alt A products:
 
	  
 	  
 
	  
 	  (a)
 	  “Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform Residential Loan Application (Form 1003) and a
verbal Verification of Employment may be obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  “No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform Residential Loan Application (Form 1003), so
therefore no debt-to-income ratios are calculated. Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  “No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report either income or assets on the Uniform
Residential Loan Application (Form 1003). Lender is not required to verify the borrower’s income or assets.
 
	  
 	  
 	  
 
	  
 	 (d)
 	  “Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and assets on the Uniform Residential Loan Application
(Form 1003) and Lender must verify reported income and assets.
 
	  
 	  
 	  
 
	  
 	  Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/Alternative Documentation
Alt A product.
 
	  
 	  
 	  
 
	  2.
 	  Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
 
	  
 	  
 
	  3.
 	  Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
 
	  
 	  
 
	  4.
 	  Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are described in Attachment 1 (“Lender’s
Underwriting Guidelines”). Notwithstanding any contrary provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to Fannie Mae are those Mortgages that are originated in accordance with
Lender’s guidelines for Stated Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
 
	  
 	  
 
	 5.
 	  Lender represents and warrants that all information concerning the Mortgages submitted by Lender to Fannie Mae in electronic format or otherwise is true, accurate,
and complete. Notwithstanding the accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not waive any of
such representations and warranties of
 
				

  Master Agreement MA02373.2
 VAR 1 - 1
 Amendment 30

	  
 	  Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as
described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling Guide.
 
	  
 	  
 
	  6.
 	  All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase Contract A06302, A06743, and A06724 (fixed-rate
Mortgages). FOR CASH: under Fannie Mae’s Negotiated Transactions for cash purchase.
 
	  
 	  
 
	  7.
 	  With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
 
	  
 	  
 
	  
 	 (a)
 	  Lender represents and warrants that the Mortgages comply with all applicable representations and warranties as set forth in the Selling Guide, and Lender makes all selling
warranties with respect to the Mortgages, except as otherwise expressly provided in this Variance.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the Mortgages assume that pool or primary mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or
knowingly wrongful, that would (1) cause a mortgage insurer to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  These representations and warranties survive purchase of and payment for the Mortgage, apply to each Mortgage, and inure to the benefit of Fannie Mae, its successors and
assigns.
 
	  
 	  
 	  
 
	 8.
 	  Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance. With respect to each such delivery, a Bulk Mortgage Delivery
Addendum containing specific information with respect to the corresponding Mortgages being delivered will be completed and added to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
 

  Master Agreement MA02373.2
 VAR 1 - 2
 Amendment 30

   Attachment 1
  Lender’s Underwriting Guidelines Approved by Fannie
Mae
  Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation guidelines:
  Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications

	  
 	   
 	  No Income
 No Ratios / No Asset Verification
 
	  
 	   
 	   
 
	  Program Type
 	  
 	  PMM, R/T Refi, COR
 
	  
 	  
 	  
 
	 Product Type
 	  
 	  FRM only
 
	  
 	  
 	  
 
	  Amortization Terms
 	  
 	  15- and 30- year
 
	  
 	  
 	  
 
	  Eligible Units
 	  
 	  1-2 unit properties
 
	  
 	  
 	  
 
	  Eligible Properties
 	  
 	  Fee Simple; 1-2 unit attached and detached properties. Condominiums are also eligible. NO mobile homes or manufactured housing units. Also, no excess acreage – value not to
exceed 33% of total.
 
	  
 	  
 	  
 
	  Geographic Limitations
 	  
 	  None
 
	  
 	  
 	  
 
	 Occupancy Status
 	  
 	  Owner Occupied and 2nd Homes
 
	  
 	  
 	  
 
	  Borrower Eligibility
 	  
 	  Designed for the borrower who has income and assets, but does not want to deal will all regular documentation requirements, and for borrowers who are changing jobs, between
jobs, relocating, retiring, or have recently become self-employed. All borrowers must meet credit score requirements. No loans to builders or developers.
 
	  
 	  
 	  
 
	  Appraisal
 	  
 	  New full Uniformed Residential Appraisal Report required for all loan types. Plus, a review appraisal if the transaction is a refinance and the LTV is greater than
75%.
 
	  
 	  
 	  
 
	  Mortgage Insurance
 	  
 	  Standard mortgage insurance required.
 
	  
 	  
 	  
 
	 Maximum LTVs and Credit Scores:
 • Owner Occupied:
 	  
 	  1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  1-unit: COR to 70% with a credit score of 700; 65% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70% with a credit score of 680.
 
	  
 	  
 	  
 
	  
 	  
 	  2-unit: COR to 65% with a credit score of 700; 60% with a credit score of 680.
 
	  
 	  
 	  
 
	   • 2nd Homes
 	  
 	  1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75% with a credit score of 700; 70% with a credit score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680.
 
	  
 	  
 	  
 
	 Secondary Financing
 	  
 	  No Subordinate financing allowed on new loan.
 
	  
 	  
 	  
 
	  Credit Report
 	  
 	  Three In-file merged credit report.
 
	  
 	  
 	  
 
	  Qualifying Debt Ratios:
 	  
 	  Ratios are not considered.
 

  Master Agreement MA02373.2
 VAR 1 - 3
 Amendment
30

	  Reserves:
 	  
 	  No assets are verified; reserves are not required.
 
	  
 	  
 	  
 
	  Credit Criteria:
 	  
 	  Three (3) rated trades 
 
	  
 	 Trade Lines
 	  
 	  24 Months
 
	  
 	  Credit History
 	  
 	  Not stated
 
	  
 	  Credit Explanations
 	  
 	  No Foreclosures.
 
	  
 	  Mortgage/Revolving/
 	  
 	  No Bankruptcies.
 
	  
 	  Installment
 	  
 	  No 30-day dates on any mortgages in the past 24 months.
 
	  
 	  
 	  
 
	  Credit Report Letter of Explanation
 	  
 	  Not required as this product is credit score driven.
 
	  
 	  
 	  
 
	 Sale Proceeds
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Down Payment:
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Liquid assets (checking, savings, CD’s, money market funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	  Non-depository assets (stocks, bonds, retirement funds, trust funds, etc.)
 	  
 	  Assets are not verified; however, assets stated on the Application must be sufficient to make the down payment.
 
	  
 	  
 	  
 
	 Seller contributions
 	  
 	  Per Fannie Guides.
 
	  
 	  
 	  
 
	  Gift Funds
 	  
 	  No gifts allowed.
 
	  
 	  
 	  
 
	  Verification of mortgage or rental history
 	  
 	  Required if mortgage history not on credit report. Rental history verification not required.
 
	  
 	  
 	  
 
	  Salaried/Wage Earner Employment Verification
 	  
 	  No verification. Stated income/employment only.
 
	  
 	  
 	  
 
	  Self-Employed Income/Employment Verification
 	  
 	  No verification. Stated income only. No 4506 required.
 
	  
 	  
 	  
 
	 Self-employed Profit & Loss/ Balance Sheet
 	  
 	  Income verification is not required. No 4506 required.
 
	  
 	  
 	  
 
	  Other Income: Retirement, SS, alimony, child support, etc.
 	  
 	  No verification. Stated income only.
 
	  
 	  
 	  
 
	  
 	  
 	  No Income
 No Ratios / No Asset Verification
 
	  
 	  
 	   
 
	  Salary or hourly wage earnings and overtime and bonus income
 	  
 	  No verification. Stated income only.
 
	  
 	  
 	  
 
	 Commission income and independent contractor
 	  
 	  No verification. Stated income only.
 
					

  Master Agreement MA02373.2
 VAR 1 - 4
 Amendment 30

   March 2003 PART 2 15 and 30-Year FRM Deal with and without SMC
 Bulk Mortgage Delivery Addendum
  Maximum Volume: $6,879,740
  Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t meet
Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile Summary set forth in
Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the
loan-to-value ratio based upon the issue date principal balance of each Mortgage and the original appraised value of the property securing each such Mortgage.
  Master Agreement
MA02373.2
VAR 1 - 5
Amendment 30

   March 2003 PART 2 15- and 30-Year FRM Deal with and without SMC
 Schedule A
 Portfolio Summary

	  Count
 	  :
 	  
 	  47
 	  
 
	 Volume
 	  :
 	  $
 	  6,879,740.00
 	  
 
	  WAC
 	  :
 	  
 	  6.2
 	  
 
	  WA OLTV
 	  :
 	  
 	  71.0
 	  
 
	  WA CLTV
 	  :
 	  
 	  71.0
 	  
 
	  WA MTMLTV
 	  :
 	  
 	  71.0
 	  
 
	 WA State RTerm
 	  :
 	  
 	  337
 	  
 
	  WA Calc RTerm
 	  :
 	  
 	  0
 	  
 
	  WA Seas
 	  :
 	  
 	  1
 	  
 
	  Pct Full/Alt Doc
 	  :
 	  
 	  0.00
 	  %
 
	  Pct Low/No Doc
 	  :
 	  
 	  100.00
 	  %
 

 Master Agreement MA02373.2
 VAR 1 - 6
 Amendment
30

   March 2003 PART 2 15- and 30-Year FRM Deal with and without SMC
 Schedule B
 Lender Loan Numbers

	  30 Year Non-SMC
 
	  1001170818
 
	  1001245636
 
	  1001234754
 
	  1001240322
 
	  1001247087
 
	  1001253945
 
	  1001215282
 
	  1001231420
 
	  1001221090
 
	  1001223211
 
	  1001270279
 
	  1001255650
 
	  1001246170
 
	  1001234150
 
	 1001217593
 
	  1001230695
 
	  1001157740
 
	  1001139946
 
	  1001058849
 
	  1001048394
 
	  1001270048
 
	  1001211513
 
	  1001213329
 
	  1001214921
 
	  1001255841
 
	  1001256542
 
	  1001242559
 
	   
 
	  30 Year SMC
 
	  1001243136
 
	  1001237914
 
	  1001260957
 
	  1001210135
 
	 1001226594
 
	  1001298668
 
	  1001246451
 
	  1001229770
 
	  1001173325
 
	  1001196656
 
	  1001246006
 

  Master Agreement MA02373.2
 VAR 1 - 7
 Amendment
30

	  15 Year Non-SMC
 
	  1001243813
 
	  1001208881
 
	  1001275633
 
	  1001203643
 
	  1001237716
 
	  1001115516
 
	  1001269859
 
	  1001259744
 
	  1001223799
 

 Master Agreement MA02373.2
 VAR 1 - 8 
 Amendment
30

   Contract No. A06302.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $192,400,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Crescent Credit Plus Fixed-Rate Mortgage Product.
 
	  See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such Mortgages
meet standard Fannie Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
 

  Pool Purchase Contract No. A06302.2
 FRM - 1
 Amendment
30

  Contract No. A06302.2
  MBS Pricing Confirmation for Crescent Bank and Trust Company

MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master Conversion
governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  41.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

 Pool Purchase Contract No. A06302.2
 FRM - 2 
 Amendment 30

   Contract No. A06724.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $34,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special 
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis
points.
 

  Pool Purchase Contract No. A06724.2
 FRM - 1
 Amendment 30

   Contract No. A06724.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  10- and 15-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  26.00 Basis Points
 
	  
 	  
 	  
 
	  Buyup/Buydown Grid:
 	  
 	  Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

 Pool Purchase Contract No. A06724.2
 FRM - 2
 Amendment 30

   Contract No. A06743.2
  FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
 WITH PRICING
CONFIRMATION
  MASTER AGREEMENT MA02373.2

	  Lender:
 	  Crescent Bank and Trust Company
 	  Lender Number: 23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-000-4
 
	  
 	  Crescent Mortgage Services
 	  23227-003-9
 
	  
 	  
 	  24837-000-9
 
	  
 	  
 	  24837-002-5
 

 

	  Eligible Products:
 	  
 	  30-year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	  $39,600,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Servicing Option:
 	  
 	  Special
 
	  
 	  
 	  
 
	  Mortgage Type:
 	  
 	  Conventional
 
	  
 	  
 	  
 
	  Remittance Cycle:
 	  
 	  Standard
 
	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	  Current
 
	  
 	  
 	  
 
	  Special Feature Codes:
 	  
 	  442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable
attachments.
 
	  
 	  
 	  
 
	  Additional Terms:
 
	  See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
 
	  Pool contract price adjustment is waived.
 
	  Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage deliveries to a weighted average buyup of 16.00 basis
points.
 
	  Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
 
	  See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance. Lender represents and warrants that all such
Mortgages meet standard Fannie Mae guidelines or the Alt-A guidelines incorporated in this Master Agreement.
 

 Pool Purchase Contract No. A06743.2
 FRM - 1

Amendment 30

   Contract No. A06743.2
  MBS Pricing Confirmation for Crescent Bank and Trust
Company
 MA02373.2
  As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must be a current Master Conversion. The current Master
Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this MBS Contract or below.

	  Eligible Products:
 	  
 	  30 year fixed-rate level-payment mortgages
 
	  
 	  
 	  
 
	  Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	  March 1, 2003 - March 1, 2003
 
	  
 	  
 	  
 
	  Guaranty Fee:
 	  
 	  35.00 Basis Points
 
	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	 Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 

 Pool Purchase Contract No. A06743.2
FRM - 2
 Amendment 30

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