Document:

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                                                                   EXHIBIT 10.2

                                                      DATED AS OF APRIL 30, 2001

YOUR COUNTERPARTY IN ANY TRANSACTION ENTERED PURSUANT TO THIS MASTER AGREEMENT
IS SALOMON BROTHERS INTERNATIONAL LIMITED. SALOMON BROTHERS INTERNATIONAL
LIMITED IS NOT REGISTERED AS A BROKER-DEALER UNDER THE SECURITIES EXCHANGE ACT
OF 1934.

                              AMENDED AND RESTATED
           ANNEX 1, SUPPLEMENTAL TERMS OR CONDITIONS TO GLOBAL MASTER
        REPURCHASE AGREEMENT, DATED AS OF MARCH 29, 2001, AMONG SALOMON
         SMITH BARNEY INC. AS AGENT FOR SALOMON BROTHERS INTERNATIONAL
                      LIMITED, NC CAPITAL CORPORATION AND
                        NEW CENTURY MORTGAGE CORPORATION

                                    RECITALS

          A.   Buyer, Seller and Guarantor entered into that certain Global
               Master Repurchase Agreement, dated as of March 29, 2001, as
               supplemented by that certain Annex 1, Additional Supplemental
               Terms or Conditions to Global Master Repurchase Agreement, dated
               as of March 29, 2001 (the "Original Agreement").

          B.   These are Amended and Restated Additional Supplemental Terms or
               Conditions (the "Additional Supplemental Terms") to Global Master
               Repurchase Agreement, dated as of March 29, 2001, among Buyer,
               Seller and Guarantor (the "Repurchase Agreement"), and the
               parties hereto desire to amend and restate the Original Agreement
               and modify the terms and conditions of the Repurchase Agreement
               and the terms under which the parties hereto may, from time to
               time, enter into Transactions (the Repurchase Agreement, together
               with the Annexes thereto and these Additional Supplement Terms
               and the exhibits and schedules hereto, the "Agreement"). The
               provisions of these Additional Supplemental Terms shall supersede
               the terms in the Repurchase Agreement to the extent they are in
               conflict. The Agreement shall be read, taken and construed as one
               and the same instrument. Capitalized terms used in these
               Additional Supplemental Terms and not otherwise defined herein
               shall have the meanings set forth in the Repurchase Agreement.

1.   The following elections shall apply:

     (a)  Paragraph 1(d). Salomon Smith Barney Inc. shall act as agent for
          Salomon Brothers International Limited.

     (b)  Paragraph 2 (d). The Base Currency shall be: US Dollars.

     (c)  Paragraph 2 (1). Salomon Brothers International Limited's Designated
          Offices shall be: Victoria Plaza, 111 Buckingham Palace Road, London,
          SW1W OSB.

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          NC Capital Corporation's Designated Offices shall be: 18400 Von
          Karman, Suite 1000, Irvine, California 92612

     (d)  Paragraph 6(j) terms shall apply and, for purposes of paragraph 6(j),
          all of the events specified in paragraph 10(a) shall apply.

     (e)  Paragraph 10(a)(ii) terms shall apply.

     (f)  Paragraph 14. For purposes of paragraph 14 of this Agreement --

          (i) Address for notices and other communications for the Buyer

              Address: 390 Greenwich Street, 4th Floor, New York, New York 10013
              Attention: Mortgage Finance
              Telephone: (212) 723-6375
              Facsimile: (212) 723-8604
              Telex:
              Answerback:
              Other: matthew.r.bollo@ssmb.com

          (ii)Address for notices and other communications for the Seller --

              Address: 18400 Von Karman, Suite 1000, Irvine, California 92612
              Attention: Patrick Flanagan
              Telephone: (949) 225-7843
              Facsimile: (949) 440-7033
              Telex:
              Answerback:
              Other: pflanaga@ncen.com

     (g)  All other elections shall be made by the Parties prior to a particular
          Transaction or pursuant to a separate agreement.

2.   The following Supplemental Terms and Conditions shall apply:

     (a)  Paragraph 4 is hereby deleted in its entirety.

     (b)  With effect from the date of execution of the Agreement, paragraphs 8
          (Substitution) and 10 (Events of Default) of the Agreement shall apply
          to all repurchase transactions and buy/sell back transactions into
          which the Parties have entered before that date and which are
          outstanding at that date in substitution for any corresponding
          provisions in any previous master agreement between the Parties
          governing such transactions.

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     (c)  ADDITIONAL DEFINITIONS.

          (i)       Notwithstanding the definition in Paragraph 1(a) of the
                    Agreement, "SECURITIES" shall mean certain non-investment
                    grade rated and unrated securities acceptable to the Buyer
                    in its sole discretion and generated from the securitization
                    of mortgage loans underwritten by Buyer.

          (ii)      Notwithstanding the definition set forth in Paragraph 2(oo)
                    of the Agreement, "REPURCHASE DATE" shall mean the calendar
                    day of each month (or the next succeeding business day
                    thereto) as determined by the Buyer and the Seller on or
                    prior to the initial purchase date.

          (iii)     Notwithstanding the definition set forth in Paragraph 2(w)
                    of the Agreement, "INCOME" shall mean, with respect to any
                    Purchased Security, any principal thereof and all interest,
                    dividends or other distributions thereon.

          (iv)      "ADJUSTED LEVERAGE RATIO" shall mean on any date of
                    determination, the ratio of (a) Total Liabilities to (b)
                    Adjusted Tangible Net Worth.

          (v)       "ADJUSTED TANGIBLE NET WORTH": on any date of determination,
                    the Tangible Net Worth of NCFC minus 25% of the amount by
                    which the book value of Junior Securitization Interests
                    included in calculating Tangible Net Worth exceeds
                    Indebtedness of the type described in paragraph 2(s) of this
                    Annex.

          (vi)      "AFFILIATE" shall mean with respect to any Person, any other
                    Person directly or indirectly controlling, controlled by, or
                    under common control with, such Person, whether through the
                    ownership of voting securities, by contract or otherwise.

          (vii)     "BORROWING BASE" shall have the meaning assigned to it in
                    the Underlying Credit Agreement.

          (viii)    "BUYER" shall mean Salomon Smith Barney as agent for Salomon
                    Brothers International Limited.

          (ix)      "DAILY LEVERAGE RATIO" shall mean as of any date of
                    determination, the ratio of (a) Total Liabilities of NCFC
                    and its Subsidiaries on such date to (b) Tangible Net Worth
                    of NCFC and its Subsidiaries as of the last day of the most
                    recently completed month.

          (x)       "GAAP" shall mean generally accepted accounting principles
                    in the United States set forth in the opinions and
                    pronouncements of the Accounting Principles Board of the
                    American Institute of Certified Public Accountants and
                    statements and

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                    pronouncements of the Financial Accounting Standards Board
                    or in such other statements by such other entity as may be
                    approved by a significant segment of the accounting
                    profession, which are applicable to the circumstances as of
                    the date of determination.

          (xi)      "GREENWICH" shall mean Greenwich Capital Financial Products,
                    Inc.

          (xii)     "GUARANTEE" shall have the meaning assigned to it in the
                    Underlying Credit Agreement.

          (xiii)    "GUARANTOR" shall mean New Century Mortgage Corporation.

          (xiv)     "GUARANTOR SECURITIZATION TRANSACTION" shall mean an
                    issuance of Mortgage-backed Securities by either Seller or
                    Guarantor, or by SBRC, Paine Webber, or Greenwich or an
                    Affiliate of any of them on behalf of either Borrower,
                    through a trust or other entity created by either Seller or
                    Guarantor, SBRC, Paine Webber or Greenwich, which
                    Mortgage-backed Securities are either secured (in whole or
                    in part) by Mortgage Loans originated or acquired by Seller
                    or Guarantor or evidence the entire beneficial ownership
                    interest therein, and in connection with which one or more
                    Junior Securitization Interests are issued to Seller or
                    Guarantor or an Affiliate of Seller or Guarantor.

          (xv)      "GUARANTY" shall mean that certain guaranty, dated March 29,
                    2001, between Guarantor and Salomon Smith Barney Inc. as
                    agent for Salomon Brothers International Limited.

          (xvi)     "INDEBTEDNESS" shall mean with respect to any Person at any
                    time, without duplication, all obligations of such Person
                    which, in accordance with GAAP, consistently applied, should
                    be classified as liabilities on an unconsolidated balance
                    sheet of such Person, but in any event shall include: (a)
                    all obligations of such Person for borrowed money, (b) all
                    obligations of such Person evidenced by bonds, debentures,
                    notes or other similar instruments, (c) all obligations of
                    such Person upon which interest charges are customarily paid
                    or accrued, (d) all obligations of such Person under
                    conditional sale or other title retention agreements
                    relating to property purchased by such Person, (e) all
                    obligations of such Person issued or assumed as the deferred
                    purchase price of property or services, but excluding
                    accrued expenses and trade payables incurred and paid in the
                    ordinary course of business, (f) all obligations of others
                    secured by any Lien on property owned or acquired by such
                    Person, whether or not the obligations secured thereby have
                    been assumed, (g) all capitalized lease obligations of such
                    Person, (h) all obligations of such Person in respect of
                    interest rate protection agreements, (i) all obligations of
                    any partnership or joint venture as to which such Person is
                    or may

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                    become personally liable, and (j) all Guarantees by such
                    Person of Indebtedness of others.

          (xvii)    "INITIAL PURCHASE DATE" shall mean the date of the Initial
                    Purchase.

          (xviii)   "INITIAL PURCHASE PRICE" shall mean the price paid in
                    connection with the one time initial purchase of the
                    securities.

          (xix)     "JUNIOR SECURITIZATION INTERESTS" shall mean a
                    Mortgage-backed Security created in a Guarantor
                    Securitization Transaction that represents a subordinated
                    right to receive principal or interest payments on the
                    underlying Mortgage Loans (whether or not such subordination
                    arises only under particular circumstances).

          (xx)      "LENDER AGENT" shall have the meaning assigned to it in
                    paragraph (s) of this Annex.

          (xxi)     "LENDERS" shall have the meaning assigned to it in paragraph
                    2(s) of this Annex.

          (xxii)    "LEVERAGE RATIO" shall mean on any date of determination,
                    the ratio of (a) Total Liabilities to (b) Tangible Net
                    Worth.

          (xxiii)   "LIEN" shall mean any security interest, mortgage, pledge,
                    lien, charge, encumbrance, title retention agreement or
                    analogous instrument, in, of, or on any of the assets or
                    properties, now owned or hereafter acquired, of any Person,
                    whether arising by agreement or operation of law.

          (xxiv)    "MORTGAGE" shall have the meaning assigned to it in the
                    Underlying Credit Agreement.

          (xxv)     "MORTGAGED-BACKED SECURITY" shall mean a security
                    (including, without limitation, a participation certificate)
                    that is an interest in a pool of Mortgage Loans or is
                    secured by such an interest.

          (xxvi)    "MORTGAGE LOAN" shall have the meaning assigned to it in the
                    Underlying Credit Agreement.

          (xxvii)   "MORTGAGE NOTE" shall have the meaning assigned to it in the
                    Underlying Credit Agreement.

          (xxviii)  "NCFC" shall mean New Century Financial Corporation, a
                    Delaware corporation.

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          (xxix)    "OBLIGATIONS" shall have the meaning assigned to it in the
                    Underlying Credit Agreement.

          (xxx)     "PAINE WEBBER" shall mean Paine Webber Real Estate
                    Securities Inc.

          (xxxi)    "PARTIES" shall mean Buyer and Seller.

          (xxxii)   "PERSON" shall mean any natural person, corporation,
                    partnership, joint venture, firm, association, limited
                    liability company, trust, unincorporated organization,
                    government or governmental agency or political subdivision
                    or any other entity, whether acting in an individual,
                    fiduciary or other capacity.

          (xxxiii)  "PRICING MARGIN", unless otherwise set forth in the related
                    Confirmation, shall equal 1.65% per annum for all Purchased
                    Securities.

          (xxxiv)   Unless otherwise set forth in the related Confirmation,
                    "PRICING RATE" shall mean one month LIBOR, plus the
                    applicable Pricing Margin; provided that upon the occurrence
                    of an Event of Default, the Pricing Rate shall equal the
                    Pricing Rate as set forth herein (or in the related
                    Confirmation) plus 2.00% per annum.

          (xxxv)    "QUARTERLY AVERAGE LEVERAGE RATIO" shall mean for each
                    three-month period ending on March 31, June 30, September 30
                    or December 31 of any year during the term of this
                    Agreement, the ratio of (a) the average daily amount of
                    Total Liabilities of NCFC and it Subsidiaries outstanding
                    during such three-month period to (b) the average of the
                    Tangible Net Worth of NCFC and its Subsidiaries at the end
                    of each month during such three-month period.

          (xxxvi)   "REO SUB" shall mean New Century REO Corp., a California
                    corporation.

          (xxxvii)  "REQUIRED LENDERS" shall have the meaning assigned to it in
                    the Underlying Credit Agreement.

          (xxxviii) "SALOMON REO AGREEMENT" shall mean a Master Loan and
                    Security Agreement dated as of April 1, 2000 by and among
                    the Guarantor, NC Capital Corporation and SBRC, as the same
                    may be amended, supplemented, restated or otherwise modified
                    in accordance with this Agreement and in effect from time to
                    time.

          (xxxix)   "SBRC" shall mean Salomon Brothers Realty Corp., a New York
                    corporation.

          (xl)      "SELLER" shall mean NC Capital Corporation.

          (xli)     "SERVICER" shall mean Ocwen Federal Bank FSB or its
                    successors or assigns.

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          (xlii)    "SIGNING DATE" shall have the meaning assigned to it in the
                    Underlying Credit Agreement.

          (xliii)   "SUBORDINATED DEBT" shall mean any indebtedness of the
                    Seller, now existing or hereafter created, incurred or
                    arising, which is subordinated in right of payment to the
                    payment of the Obligations in a manner and to an extent that
                    the Required Lenders have approved in writing prior to the
                    creation of such Indebtedness.

          (xliv)    "TANGIBLE NET WORTH" shall mean, as of any date of
                    determination, the consolidated Net Worth of the Guarantor
                    or NCFC, as applicable, and its respective Subsidiaries,
                    less the consolidated book value of all assets of the
                    Guarantor or NCFC, as applicable, and its respective
                    Subsidiaries (to the extent reflected as an asset in the
                    balance sheet of the Guarantor or NCFC, as applicable, or
                    any such Subsidiary at such date) which are treated as
                    intangibles under GAAP, including, without limitation, such
                    items as deferred financing expenses, net leasehold
                    improvements, good will, trademarks, trade names, service
                    marks, copyrights, patents, licenses and unamortized debt
                    discount and expense; provided, that Junior Securitization
                    Interests shall not be treated as intangibles for purposes
                    of this definition.

          (xlv)     "TOTAL LIABILITIES" shall mean at any time of determination,
                    the amount, on a consolidated basis, of the liabilities of
                    the Guarantor or NCFC, as applicable, and its respective
                    Subsidiaries, determined in accordance with GAAP, minus
                    subordinated debt.

          (xlvi)    "UNDERLYING CREDIT AGREEMENT" shall have the meaning
                    assigned to it in paragraph 2(s) of this Annex.

     (d)  EVENTS OF DEFAULT. The term "EVENT OF DEFAULT" shall, in addition to
          the definition set forth in the Agreement, include the following
          events:

          (i)       Seller shall default under, or fail to perform as requested
                    under, or shall otherwise breach the material terms of any
                    instrument, agreement or contract relating to indebtedness
                    (including repurchase agreements), and such default, failure
                    or breach shall entitle any counterparty to declare such
                    indebtedness to be due and payable prior to the maturity
                    thereof and the aggregate amount of such potentially
                    accelerated indebtedness shall equal at least $5,000,000 or
                    such lesser amount included in the cross acceleration
                    provisions of any other material instrument, agreement or
                    contract relating to indebtedness (including repurchase
                    agreements);

          (ii)      Seller or Guarantor shall default under, or fail to perform
                    as requested under, or shall otherwise breach the material
                    terms of any instrument, agreement or contract

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                    relating to indebtedness (including repurchase agreements)
                    between Seller or its affiliates, on the one hand, and Buyer
                    or its affiliates on the other;

          (iii)     in the good faith judgment of Buyer any material adverse
                    change shall have occurred with respect to Seller, Guarantor
                    or Seller and Seller's subsidiaries taken as a whole; or

          (iv)      the Tangible Net Worth of Guarantor is less than
                    $40,000,000.

     (e)  REMEDIES/SET-OFF. After the occurrence and during the continuation of
          an Event of Default, in addition to its rights pursuant to the
          Agreement, Buyer shall have the right to proceed against any of
          Seller's or the Guarantor's assets which may be in the possession of
          Buyer, any of Buyer's Affiliates or its designee, including the right
          to liquidate such assets and to set-off the proceeds against monies
          owed by Seller or Guarantor to Buyer pursuant to the Agreement. Buyer
          may set off cash, the proceeds of the liquidation of the Purchased
          Securities, any other collateral or its proceeds and all other sums or
          obligations owed by Buyer to Seller under the Agreement against all of
          Seller's or Guarantor's obligations to Buyer, whether under the
          Agreement, under a Transaction, or under any other agreement between
          the parties, or otherwise, whether or not such obligations are then
          due, without prejudice to Buyer's right to recover any deficiency.

     (f)  EXPENSES. Seller agrees to pay on demand (i) all out-of-pocket costs
          and expenses of Buyer in connection with the preparation, negotiation,
          execution, delivery, modification and amendment of this Agreement
          (including, without limitation, the fees and expenses of counsel for
          Buyer with respect thereto), (ii) Buyer's actual and reasonable due
          diligence expenses (not to exceed $10,000 per quarter), (iii) Buyer's
          custodial fees and expense, and (iv) all costs and expenses of Buyer
          in connection with the enforcement of this Agreement, whether in any
          action, suit or litigation, any bankruptcy, insolvency or other
          similar proceeding affecting creditors' rights generally (including,
          without limitation, the fees and expenses of counsel for Buyer)
          whether or not the transactions contemplated hereby are consummated.

     (g)  COMMITMENT FEE. The Seller agrees to pay to the Buyer, a commitment
          fee equal to 2% of the Initial Purchase Price (the "COMMITMENT FEE").
          The Commitment Fee shall be earned and owing on the Initial Purchase
          Date and shall be payable in three equal installments due on (i) the
          Initial Purchase Date, (ii) the 30 day anniversary of the initial
          Payment Date (or the next succeeding business day thereto if such date
          is not a business day), and (iii) the 60 day anniversary of the
          initial Payment Date (or the next succeeding business day thereto if
          such date is not a business day). The Commitment Fee shall be paid in
          dollars, in immediately available funds, in accordance with the
          Buyer's instructions. At the option of the Buyer, any installment due
          may be netted out of any Purchase Price to be paid to the Seller.

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     (h)  INTENT/SECURITY INTEREST. Seller and Buyer intend that the
          Transactions hereunder be sales to Buyer of the Purchased Securities
          and not loans from Buyer to Seller secured by the Purchased
          Securities. However, in order to preserve Buyer's rights under the
          Agreement in the event that a court or other forum recharacterizes the
          Transactions hereunder as other than sales, and as security for
          Seller's performance of all of its obligations hereunder, Seller
          hereby grants Buyer a fully perfected first priority security interest
          in the Purchased Securities, the records, and all related property,
          insurance, Income, accounts (including any interest of Seller in
          escrow accounts) and any other contract rights, payments, rights to
          payment (including payments of interest or finance charges) general
          intangibles and other assets relating to the Purchased Securities
          (including, without limitation, any other accounts) or any interest in
          the Purchased Securities and any proceeds and distributions with
          respect to any of the foregoing and any other property, rights, titles
          or interests as are specified on a Transaction Notice.

     (i)  COVENANTS. In addition to all other obligations of the Seller and
          Guarantor pursuant to the Agreement, the Seller and Guarantor hereby
          covenants with the Buyer as follows:

          (i)       The Seller and Guarantor will cause the Servicer to provide
                    monthly performance reporting to the Buyer, in form
                    acceptable to the Buyer.

          (ii)      Seller will provide monthly compliance certificates to the
                    Buyer substantially in the form currently provided to U.S.
                    Bank National Association under the Underlying Credit
                    Agreement.

          (iii)     If an Event of Default has occurred and is occurring, the
                    Seller and Guarantor shall not pay any dividends or
                    distributions with respect to any capital stock or other
                    equity interests in Seller, whether now or hereafter
                    outstanding, or make any other distribution in respect
                    thereof, either directly or indirectly, whether in cash or
                    property or in obligations of Seller.

          (iv)      Without the prior written consent of the Buyer, there shall
                    not occur any change of executive management of the Seller
                    or the Guarantor.

          (v)       FINANCIAL COVENANTS

                    (A)  TANGIBLE NET WORTH. Guarantor will at all times during
                         each fiscal year maintain Tangible Net Worth of not
                         less than (a) the greater of (i) $85,000,000 or (ii)
                         eighty-five percent (85%) of the Tangible Net Worth at
                         the end of its most recently completed fiscal year (or,
                         in the case of the Tangible Net Worth at the end of any
                         fiscal year, its prior fiscal year) plus (b) ninety
                         percent (90%) of capital contributions made during such
                         fiscal year plus (c) fifty percent (50%) of positive
                         year-to-date net income. NCFC will at all times during
                         each fiscal year maintain Tangible Net

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                         Worth of not less than (a) the greater of (i)
                         $130,000,000 or (ii) eighty-five percent (85%) of the
                         Tangible Net Worth at the end of its most recently
                         completed fiscal year (or, in the case of Tangible Net
                         Worth at the end of any fiscal year, its prior fiscal
                         year) plus (b) ninety percent (90%) of capital
                         contributions made during such fiscal year plus (c)
                         fifty percent (50%) of positive year-to-date net
                         income. The Seller will at all times during each fiscal
                         year maintain Tangible Net Worth of not less than
                         $1.00.

                    (B)  MINIMUM LIQUIDITY. The Guarantor will not permit the
                         sum of (a) cash and cash equivalents plus (b) the
                         lesser of the Borrowing Base (as defined in the
                         Underlying Credit Agreement) and the sum of the
                         Commitment Amounts (as defined in the Underlying Credit
                         Agreement) minus, in either case, the outstanding
                         principal balance of all outstanding loans under the
                         Underlying Credit Agreement as of the end of each month
                         to be less than $10,000,000.

                    (C)  LEVERAGE RATIO. The Guarantor will not permit the
                         Leverage Ratio of the Guarantor to be greater than 8.0
                         to 1.0 as of the last day of each fiscal quarter of the
                         Seller. NCFC will not permit (i) the Quarterly Average
                         Leverage Ratio for any period of measurement to be
                         greater than 10.0 to 1.0, (ii) the Daily Leverage Ratio
                         on any date to be greater than 15.0 to 1.0, or (iii)
                         the Adjusted Leverage Ratio as of the last day of each
                         fiscal quarter to be greater than 12.0 to 1.0.

     (j)  ROLLOVER TRANSACTIONS. Provided that all conditions in the Agreement
          have been satisfied, including the requirements set forth in this
          Paragraph 2(j), each Purchased Security that is repurchased by Seller
          on the applicable Repurchase Date shall automatically become subject
          to a new Transaction and the Repurchase Date for such new Transaction
          shall be the immediately subsequent Repurchase Date, provided that if
          the Repurchase Date so determined is later than the Termination Date,
          the Repurchase Date for such Transaction shall automatically reset to
          the Termination Date, and the provisions of this sentence as it might
          relate to a new Transaction shall expire on such date; PROVIDED, THAT,
          the Repurchase Price paid by the Seller on each Repurchase Date, shall
          be sufficient so that the purchase price of the new Transaction
          entered into on such Repurchase Date shall equal an amount which is at
          least $2,000,000 less than the Purchase Price from the immediately
          preceding Purchase Date; PROVIDED FURTHER, THAT, the Repurchase Price
          paid by the Seller on each Repurchase Date occurring in every third
          month following the initial Purchase Date, shall be sufficient so that
          the Purchase Price of the new Transaction entered into on such
          Repurchase Date shall equal an amount which is at least $9,000,000
          less than the Purchase Price from the Purchase Date occurring three
          months prior. In the event that the Seller repurchases the
          Certificates prior to any Repurchase Date, the Seller shall not be
          required to pay any breakage fees with respect to any such early
          repurchase.

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     (k)  CONDITIONS PRECEDENT. (A) The following conditions shall apply to the
          initial purchase:

          The Seller shall cause each of following conditions to occur:

          (i)  the execution of the Guaranty by the Guarantor.

          (ii) U.S. Bank National Association shall have extended the maturity
               of its subordinated debt of NCFC to at least December 31, 2003.

          (iii) Guarantor shall have closed the sale of its mortgage servicing
               rights to the Servicer.

          (iv) The Buyer shall have received an opinion of counsel in form and
               substance satisfactory to Buyer and its counsel.

          (v)  The Buyer shall have received all fees and expenses payable to
               Buyer (including the first installment of the Commitment Fee).

          (vi) The representations and warranties contained in the Agreement
               shall be true and correct and all covenants shall be complied
               with.

               (B)  Prior to entering into each Transaction (including the
                    Initial Purchase) pursuant to the Agreement, the following
                    conditions shall apply:

          (i)  No default or Event of Default shall have occurred or be
               continuing.

          (ii) All representations and warranties shall be true and correct and
               all covenants shall be complied with.

          (iii) Seller shall:

               (A)  provide all documents necessary (including but not limited
                    to, bond powers, transferor certificates and opinions of
                    counsel) to register the Purchased Securities in the name of
                    the Buyer; and

               (B)  deliver an instruction letter to the related trustees
                    instructing that all payments be remitted to Buyer with
                    respect to the Purchased Securities.

     (l)  INCOME PAYMENTS. Notwithstanding the provisions set forth in Paragraph
          5(i) of the Agreement, any Income received by the Buyer shall be
          applied as follows:

          (i)  first to reduce the amount of any unpaid expenses owed the Buyer;

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          (ii)  second to reduce the amount of any accrued and unpaid Price
                Differential; and

          (iii) third to reduce the remaining amount to be transferred to the
                Buyer by the Seller upon termination of such transaction.

          Buyer and Seller hereby acknowledge and agree that all Income shall be
          property of the Buyer and in the event that any Income is received by
          the Seller (i) the Seller shall hold such Income separate and apart
          from the assets of the Seller, in trust for the Buyer, and (ii) the
          Seller shall immediately remit such Income to the Buyer.

     (m)  TERMINATION DATE. Notwithstanding the provisions set forth in
          Paragraph 16(c) of the Agreement, the Agreement shall terminate on the
          earlier of (i) December 31, 2002, or (ii) at the non-defaulting
          party's option upon the occurrence of an Event of Default caused by
          the other party hereto.

     (n)  Each party to this agreement (such party, "Party X") agrees that, upon
          the insolvency of Party X or any of its affiliates or the default of
          Party X or any of its affiliates under any transaction with the other
          party hereto or any of such other party's affiliates (such other party
          or any of its affiliates, a "Non-Defaulting Party"), each
          Non-Defaulting Party may, without prior notice to Party X: (a)
          liquidate any transaction between Party X and any Non-Defaulting Party
          (which liquidation may include the conversion of amounts denominated
          in multiple currencies into a single currency if deemed necessary or
          desirable by the Non-Defaulting Party), (b) reduce any amounts due and
          owing to Party X under any transaction between Party X and any
          Non-Defaulting Party by setting off against such amounts due and owing
          to a Non-Defaulting Party by Party X, and (c) treat all security for,
          and all amounts due and owing to Party X under any transaction between
          Party X and any Non-Defaulting Party as security for all transactions
          between Party X and any Non-Defaulting Party; provided, however, that
          the exercise of the remedies described in clauses (a), (b) and (c)
          above (or in any other similar provision in any agreement between the
          parties) shall be deemed to occur immediately subsequent to, but
          independent of, the exercise of any netting, liquidation, set-off or
          other similar provision contained in any master agreement between the
          parties; provided further that each provision and agreement hereof
          shall be treated as independent from any other provision or agreement
          herein and shall be enforceable notwithstanding the unenforceability
          of any such other provision or agreement.

          For purposes of the foregoing, the term "affiliate" shall not include
          any entity that controls or is under common control with Salomon Smith
          Barney Holdings Inc., but in any event such term shall include Salomon
          Smith Barney Holdings Inc. and any entity controlled by it.

                                       12
<PAGE>

          Clauses (a), (b) and (c) of this paragraph 2(n) shall be deemed not to
          include any references to the affiliates of the Non-Defaulting Party
          and Party X to the extent that their inclusion would prejudice the
          enforceability of this paragraph 2(n).

     (o)  In the event that the Parties enter into a hold in custody repo
          Transaction hereunder in which Salomon Brothers International Limited
          acts as the Seller, segregation of the Securities the subject of such
          repo Transaction shall take place by movement of such Securities from
          Salomon Brothers International Limited's firm account within the
          relevant settlement system to its customer account within such
          relevant settlement system. The Buyer hereby consents to such
          segregation arrangements.

     (p)  Paragraph 8 of the Agreement shall be amended by adding at the end of
          the paragraph the following paragraphs (e), (f) and (g):

          (e)  In the case of any transaction for which the Repurchase Date is
               not the Business Day immediately following the Purchase Date and
               with respect to which Seller does not have any existing right to
               vary the Transaction, Seller shall have the right (subject to the
               proviso to this sub-paragraph) by notice to Buyer (such notice to
               be given at or prior to 12 pm (London time) on that Business Day)
               to vary that Transaction in accordance with sub-paragraphs (a)
               and (b) above, provided however that Buyer may elect by close of
               business on the Business Day notice is received (or by close of
               business on the next Business Day if notice is received after 12
               pm (London time) on that day) not to vary that Transaction. If
               Buyer elects not to vary the Transaction, Seller shall have the
               right by notice to Buyer to terminate the Transaction on the
               Business Day specified in that notice, such Business Day (unless
               the parties otherwise agree) not to be later than two Business
               Days after the date of the notice.

          (f)  If Seller exercises its right to vary the Transaction or to
               terminate the Transaction under sub-paragraph (e) above,
               notwithstanding paragraph 10(h), Seller shall be required to pay
               to Buyer by close of business on the Business Day of such
               variation or termination an amount equal to:

          (i)  Buyer's actual cost (including all fees, expenses and
               commissions) of (aa) entering into replacement transactions; (bb)
               entering into or terminating hedge transactions; and (cc)
               terminating or varying transactions with third parties in
               connection with or as a result of such variation or termination,
               and

          (ii) to the extent that Buyer party does not enter into replacement
               transactions, the loss incurred by Buyer directly arising or
               resulting from such variation or termination,

               in each case as determined and calculated in good faith by Buyer.

                                       13
<PAGE>

          (g)  Where one party (the "Requesting Party") has requested the
               other party to transfer Equivalent Margin Securities to it in
               exchange for the transfer to the other party of new Margin
               Securities in accordance with paragraph 8(d) but the other
               party does not agree to the request if the Requesting Party so
               elects by written notice specifying the Equivalent Margin.
               Securities to be transferred and the Business Day on which
               those Equivalent Margin Securities are to be transferred (such
               Business Day (unless the parties otherwise agree) not to be
               later than two Business Days after the date of the notice) the
               other party shall, unless otherwise agreed, transfer those
               Equivalent Margin Securities to the Requesting Party in
               exchange for the transfer to the other party of Cash Margin of
               an amount equal to the Market Value of the Equivalent Margin
               Securities so transferred.

     (q)  If assets of an employee benefit plan subject to any provision of the
          Employee Retirement Income Security Act of 1974 ("ERISA") are intended
          to be used by either party hereto (the "Plan Party") in a Transaction,
          the Plan Party shall so notify the other party prior to the
          Transaction. The Plan Party shall represent in writing to the other
          party that the transaction does not constitute a prohibited
          transaction under ERISA or is otherwise exempt therefrom, and the
          other party may proceed in reliance thereon but shall not be required
          to so proceed.

     (r)  Seller shall maintain hedging amounts reasonably acceptable to the
          Buyer with respect to the Securities and shall pledge such hedge
          amounts to the buyer on the related Purchase Date.

     (s)  INDEBTEDNESS. The Guarantor and NCFC will not, and will not permit any
          of their Subsidiaries to, directly or indirectly, create, incur,
          assume, guarantee, or otherwise become or remain directly or
          indirectly liable with respect to, any Indebtedness, except:

               (i) any Obligations pursuant to the Fourth Amended and Restated
               Credit Agreement, dated as of May 26, 1999, among the Guarantor,
               the lenders from time to time party thereto (the "Lenders"), and
               U.S. Bank National Association, as agent for the Lenders (the
               "Lender Agent"); as amended by the First Amendment to the Fourth
               Amended and Restated Credit Agreement, dated as of August 31,
               1999, among the Guarantor, the Lenders, and the Lender Agent; as
               amended by the Second Amendment to the Fourth Amended and
               Restated Credit Agreement, dated as of October 14, 1999, among
               the Guarantor, the Lenders, and the Lender Agent; as amended by
               the Third Amendment to the Fourth Amended and Restated Credit
               Agreement, dated as of May 24, 2000, between the Guarantor, the
               Lenders, and the Lender Agent; and as further amended by the
               Fourth Amendment to the Fourth Amended and Restated Credit
               Agreement, dated as of June 29, 2000, among the Guarantor, NC
               Capital Corporation, the Lenders, and the Lender Agent
               (collectively, the "Underlying Credit Agreement").

                                       14
<PAGE>

               (ii) current liabilities not more than 90 days overdue, unless
               contested in good faith by appropriate proceedings and any
               reserves required by GAAP have been established, incurred by
               NCFC, the Guarantor or NC Capital Corporation in the ordinary
               course of business otherwise than for money borrowed;

               (iii) Indebtedness incurred to finance the purchase of equipment
               and secured solely by Liens on such equipment, in an aggregate
               amount not to exceed $10,000,000;

               (iv) Indebtedness incurred to finance Junior Securitization
               Interests which Indebtedness is secured only by such Junior
               Securitization Interests, provided, such Indebtedness does not
               exceed 65% of the value of such Junior Securitization Interests
               determined in accordance with GAAP;

               (v) intercompany Indebtedness of NCFC to the Guarantor or NC
               Capital Corporation in an aggregate amount not to exceed
               $1,000,000;

               (vi) intercompany Indebtedness of the Guarantor or NC Capital
               Corporation to NCFC incurred in the ordinary course of business;

               (vii) obligations under gestation repurchase agreements or
               similar arrangements of the type described in paragraph 2(t)

               (vi) of this Annex;

               (viii) Subordinated Debt;

               (ix) Indebtedness incurred by the Guarantor in connection with
               the Salomon REO Agreement; and

               (x) intercompany Indebtedness between the Guarantor and the
               Seller incurred in the ordinary course of business.

(t)  LIENS. The Guarantor and NCFC will not, and will not permit any of their
     Subsidiaries to, directly or indirectly, create, incur, assume or permit to
     exist any Lien with respect to any property now owned or hereafter acquired
     by NCFC, the Guarantor or the Seller, or any income or profits therefrom,
     except:

               (i) the security interests granted to the Lender Agent for the
               benefit of the Lenders pursuant to the Underlying Credit
               Agreement;

               (ii) Liens in connection with deposits or pledges to secure
               payment of workers' compensation, unemployment insurance, old age
               pensions or other social security obligations, in the ordinary
               course of business of NCFC or the Guarantor;

                                       15
<PAGE>

               (iii) Liens for taxes, fees, assessments and governmental charges
               not delinquent or which are being contested in good faith by
               appropriate proceedings and for which appropriate reserves have
               been established in accordance with GAAP;

               (iv) encumbrances consisting of zoning regulations, easements,
               rights of way, survey exceptions and other similar restrictions
               on the use of real property and minor irregularities in title
               thereto which do not materially impair their use in the operation
               of its business;

               (v) Liens on equipment arising under any capitalized lease
               obligation or other purchase money Liens on equipment acquired
               after the Signing Date to secure Indebtedness permitted pursuant
               to paragraph 2(s)(iii);

               (vi) Liens incurred in connection with gestation repurchase
               agreements or similar arrangements, including, without
               limitation, (i) arrangements under which NCFC or its Subsidiaries
               are required to repurchase Mortgage-backed Securities or Mortgage
               Loans from any Lender or other counterparty reasonably
               satisfactory to the Lender Agent, or (ii) credit facilities
               structured as loan and security agreements; provided, that (x)
               such gestation repurchase agreements or similar arrangements are
               not used to fund wet Mortgage Loans, and (y) such gestation
               repurchase agreements or similar arrangements are entered into in
               the ordinary course of business in contemplation of the
               subsequent non-recourse sale of such Mortgage-backed Securities
               or Mortgage Loans;

               (vii) Liens arising out of any agreements or other arrangements
               (including, without limitation, interest rate swap agreements,
               interest rate cap agreements and forward sale agreements) entered
               into to protect Guarantor against changes in interest rates or in
               the value of any assets of the Guarantor;

               (viii) Liens on Junior Securitization Interests which secure
               Indebtedness permitted by paragraph 2(s)(iv);

               (ix) a pledge of the stock of REO Sub to SBRC pursuant to the
               Salomon REO Agreement; and

               (x) a pledge of the stock of NC Residual II Corporation to
               Financial Securities Assurance Corporation.

                                       16
<PAGE>

     IN WITNESS WHEREOF, the Buyer, the Seller and the Guarantor have caused
their names to be duly signed hereto by their respective officers thereunto duly
authorized, all as of the date first above written.

SALOMON SMITH BARNEY INC. AS AGENT FOR
SALOMON BROTHERS INTERNATIONAL LIMITED

By:
    -------------------------------
    Authorized Signatory
    Title:

NC CAPITAL CORPORATION

By: /s/ PATRICK FLANAGAN
    -------------------------------
    Patrick Flanagan
    Title: President

ACCEPTED AND ACKNOWLEDGED

NEW CENTURY MORTGAGE CORPORATION

By: /s/ PATRICK FLANAGAN
    -------------------------------
    Patrick Flanagan
    Title: EVP<PAGE>

                                                                    EXHIBIT 10.3

                                 AMENDMENT NO. 1
                      TO MASTER LOAN AND SECURITY AGREEMENT

     This AMENDMENT NO. 1, dated as of April 2, 2001 (this "AMENDMENT"), to the
Master Loan and Security Agreement (the "LOAN AND SECURITY AGREEMENT"), dated as
of December 1, 2000, is between NC Capital Corporation and Morgan Stanley Dean
Witter Mortgage Capital Inc.

                                   WITNESSETH:

     WHEREAS, the parties hereto desire that Morgan Stanley Dean Witter Mortgage
Capital Inc., as Lender under the Loan and Security Agreement, (i) provide
funding to NC Capital Corporation, as Borrower under the Loan and Security
Agreement, with respect to certain seasoned and other mortgage loans originated
by NC Capital Corporation and (ii) modify the funding procedure;

     WHEREAS, in furtherance of the foregoing, the parties desire to, among
other things, (i) make certain conforming amendments to the definition of
"Applicable Collateral Percentage," "Applicable Margin," "Unseasoned Mortgage
Loan" and "Collateral Value," (ii) provide for a definition of the terms "bailee
letter," "limited file loan," "discretionary mortgage loans," "seasoned mortgage
loan" and "warehouse lender," (iii) amend Part I and Part II of Schedule 1 to
the Loan and Security Agreement, and (iv) revise Article V to reflect the new
funding procedure;

     WHEREAS, pursuant to the Section 11.4 of the Loan and Security Agreement,
the parties hereto are permitted to amend the Loan and Security Agreement;

     NOW THEREFORE, in consideration of the above recitals and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

     SECTION 1. DEFINITIONS. Capitalized terms used herein but not defined shall
have the meanings set forth in the Loan and Security Agreement.

     SECTION 2. AMENDMENT. The Loan and Security Agreement is hereby amended as
set forth below:

          (A) The definition of "Applicable Collateral Percentage" is hereby
amended and restated as follows:

          "APPLICABLE COLLATERAL PERCENTAGE" shall mean, except as may be
     reduced pursuant to Section 11.16 hereof, for any date of determination and
     each type of Eligible Mortgage Loan, the applicable percentage specified
     below:

            Unseasoned Mortgage Loan           98.5%
            Second Lien Mortgage Loan          98.5%
            30+ Delinquent Mortgage Loan       85%
            60+ Delinquent Mortgage Loan       75%

<PAGE>

            Defaulted Mortgage Loan            the applicable BPO Percentage
            Discretionary Mortgage Loans       the percentage specified by the
                                               Lender one Business Day prior to
                                               the applicable Funding Date

     PROVIDED, HOWEVER, if a Minimum Credit Trigger Event or a Tangible Net
     Worth Trigger Event shall have occurred, the Applicable Collateral
     Percentage with respect to all Unseasoned Mortgage Loans and all Second
     Lien Mortgage Loans shall be reduced to 98%; PROVIDED, FURTHER, if more
     than one of the aforementioned categories shall apply to an Eligible
     Mortgage Loan, the lower percentage shall be applicable.

          (B) The definition of "Applicable Margin" is hereby amended and
restated as follows:

          "APPLICABLE MARGIN" shall mean, except as may be increased pursuant to
     Section 11.16 hereof, the sum of the weighted average of the applicable
     rates per annum for each type of Eligible Mortgage Loan for each day that
     Loans shall be secured by such Eligible Mortgage Loans. For each type of
     Eligible Mortgage Loan, the applicable rate shall be equal to the product
     of (a) a fraction equal to (1) the Collateral Value of all Eligible
     Mortgage Loans of such type, divided by (2) the Collateral Value of all
     Eligible Mortgage Loans, and (b) the applicable percentage specified below;
     PROVIDED, HOWEVER, if more than one of the following categories shall apply
     to an Eligible Mortgage Loan, the higher percentage shall be applicable:

            Unseasoned Mortgage Loan           1.05%
            Second Lien Mortgage Loan          1.05%
            30+ Delinquent Mortgage Loan       1.25%
            60+ Delinquent Mortgage Loan       1.25%
            Defaulted Mortgage Loan            1.50%
            Discretionary Mortgage Loans       the percentage specified by the
                                               ender one Business Day prior to
                                               the applicable Funding Date

          (C) Section 1.1 is hereby amended to add the following defined term
after the term "Applicable Margin":

          "BAILEE LETTER" shall mean the letter with respect to a Limited File
     Loan, substantially in the form of Exhibit E-3 attached hereto.

          (D) The definition of the term "Collateral Value" is hereby amended
and restated as follows:

          "COLLATERAL VALUE" shall mean, with respect to each Eligible Mortgage
     Loan, the lesser of (a) the product of (i) the Market Value of such
     Eligible

                                       2

<PAGE>

     Mortgage Loan, and (ii) the Applicable Collateral Percentage for such
     Eligible Mortgage Loan, and (b) 101% of the unpaid principal balance of
     such Eligible Mortgage Loan; PROVIDED, HOWEVER, if a Minimum Credit Trigger
     Event or a Tangible Net Worth Trigger Event shall have occurred, the
     Collateral Value with respect to each Eligible Mortgage Loan shall the
     lesser of (a) the product of (i) the Market Value of such Eligible Mortgage
     Loan, and (ii) the Applicable Collateral Percentage for such Eligible
     Mortgage Loan, and (b) 100% of the unpaid principal balance of such
     Eligible Mortgage Loan; PROVIDED, FURTHER, that the Collateral Value shall
     be deemed to be zero with respect to each Mortgage Loan (1) in respect of
     which there is a breach of representation and warranty set forth on
     Schedule 1 (assuming each representation and warranty is made as of the
     date the Collateral Value thereof is determined), (2) which ceases to be an
     Eligible Mortgage Loan for any reason, (3) which remains pledged to the
     Lender hereunder later than 120 days after the date on which it is first
     included in the Collateral, (4) for which any Mortgage Loan Documents have
     been released from the possession of the Custodian under the Custodial
     Agreement for a period in excess of 15 days, (5) which is a Limited File
     Loan for which the Custodian has failed to receive the original Mortgage
     Note and Assignment of Mortgage (as defined in the Custodial Agreement) by
     12:00 p.m., New York City time, by the third Business Day following the
     applicable Funding Date or (6) which is a Limited File Loan for which the
     Custodian has failed to receive the remaining Mortgage File items by 12:00
     p.m., New York City time, by the fifth Business Day following the
     applicable Funding Date.

          (E) Section 1.1 is hereby amended to add the following defined term
after the term "Lien":

          "LIMITED FILE LOAN" shall mean a Mortgage Loan with respect to a which
     a Bailee Letter has been delivered to the Lender and the Custodian on the
     Business Day prior to its related Funding Date, but as to which the
     Custodian does not possess a complete Mortgage File on such date.

          (F) Section 1.1 is hereby amended to add the following defined term
after the term "Delinquent":

          "DISCRETIONARY MORTGAGE LOANS" shall mean either a Seasoned Mortgage
     Loan or any other Mortgage Loan which does not specifically meet the
     parameters of an Eligible Mortgage Loan as described herein.

          (G) Section 1.1 is hereby amended to add the following defined term
after the term "Total Indebtedness":

          "WAREHOUSE LENDER" shall mean any holder of a lien secured by a
     Mortgage Loan to be pledged to the Lender hereunder which lien would have
     priority with respect to the lien created hereby unless the same was
     released pursuant to a Warehouse Lender's Release and Certification Letter.

                                       3

<PAGE>

          (H) Section 1.1 is hereby amended to add the following defined term
after the term "S&P":

          "SEASONED MORTGAGE LOAN" shall mean, as of any date of determination,
     an Eligible Mortgage Loan which has been originated 121 days or more prior
     to the related Funding Date but not more than 365 days prior to the related
     Funding Date.

          (I) The definition of "Unseasoned Mortgage Loan" is hereby amended
and restated as follows:

          "UNSEASONED MORTGAGE LOAN" shall mean, as of any date of
     determination, an Eligible Mortgage Loan (provided that notwithstanding the
     definition of the term "Eligible Mortgage Loan," an Unseasoned Mortgage
     Loan must have first lien status with respect to the related Mortgaged
     Property) which has been originated 120 days or less prior to the related
     Funding Date.

          (J) Section 2.3(b) is hereby amended and restated as follows:

          Upon the Borrower's request for a borrowing pursuant to Section
     2.3(a), the Lender shall, subject to the limitations set forth in Section
     2.1(a) hereof and upon satisfaction of all conditions precedent set forth
     in Sections 5.1 and 5.2 hereof and provided that no Default shall have
     occurred and be continuing, make a Loan to the Borrower on the requested
     Funding Date, in the amount so requested; provided, however, that if the
     Mortgage Loan Tape includes Discretionary Mortgage Loans that the Borrower
     proposes to pledge to the Lender and to be included in the Borrowing Base
     in connection with such Borrowing, the Lender's obligation to fund such
     Discretionary Mortgage Loans shall be in its sole and absolute discretion.
     The Borrower acknowledges that the Lender may retain an amount equal to
     $100 per Defaulted Mortgage Loan to cover the costs of obtaining Brokers
     Price Opinions.

          (K) Section 2.3(c) is hereby amended and restated as follows:

          Except with respect to Limited File Loans, the Borrower shall release
     to the Custodian no later than 12:00 p.m., New York City time, two (2)
     Business Days prior to the requested Funding Date, the Mortgage File
     pertaining to each Eligible Mortgage Loan to be pledged to the Lender and
     included in the Borrowing Base on such requested Funding Date, in
     accordance with the terms and conditions of the Custodial Agreement.

          (L) Section 2.3(e) is hereby amended and restated as follows:

          (e) Subject to Article V hereof, such borrowing will then be made
     available to the Borrower by the Lender transferring, via wire transfer, to
     either (i) in the case of Mortgage Loans which are not Limited File Loans,
     the following account of the Borrower: U.S. Bank, N.A., for the A/C of NCM
     Collateral Account, ABA# 091-000-022, Account # 1731-0097-1378, Attn:
     Andrew Lloyd,

                                       4

<PAGE>

     or (ii) in the case of Limited File Loans, to the account specified in the
     Warehouse Lender's Release Letter, in the aggregate amount of such
     borrowing in funds immediately available to the Borrower or the Warehouse
     Lender, as applicable.

          (M) Section 5.2 is hereby amended and restated as follows:

          Section 5.2 INITIAL AND SUBSEQUENT LOANS; INITIAL ADVANCE. The making
     of each Loan to the Borrower (including the initial Loan) on any Business
     Day is subject to the satisfaction of the following further conditions
     precedent, both immediately prior to the making of such Loan and also after
     giving effect thereto and to the intended use thereof:

          (a) NO DEFAULT. No Default or Event of Default shall have occurred and
     be continuing;

          (b) REPRESENTATIONS AND WARRANTIES. Both immediately prior to the
     making of such Loan and also after giving effect thereto and to the
     intended use thereof, the representations and warranties made by the
     Borrower in Article VI and Schedules 1 and 2 hereof, and elsewhere in each
     of the Loan Documents, shall be true, correct and complete on and as of the
     date of the making of such Loan in all material respects (in the case of
     the representations and warranties in Section 6.10 and Schedules 1 and 2,
     solely with respect to Mortgage Loans included in the Borrowing Base) with
     the same force and effect as if made on and as of such date (or, if any
     such representation or warranty is expressly stated to have been made as of
     a specific date, as of such specific date). The Lender shall have received
     an officer's certificate signed by a Responsible Officer of the Borrower
     certifying as to the truth, accuracy and completeness of the above, which
     certificate shall specifically include a statement that the Borrower is in
     compliance with all governmental licenses and authorizations and is
     qualified to do business and in good standing in all required
     jurisdictions;

          (c) BORROWING BASE. The aggregate outstanding principal amount of
     the Loans shall not exceed the Borrowing Base;

          (d) FEES AND EXPENSES. The Lender shall have received all fees and
     expenses of counsel to the Lender as contemplated by Section 11.3(b), which
     amount, at the Lender's option, may be netted from any Loan advanced under
     this Agreement;

          (e) NO MARKET EVENTS. None of the following shall have occurred and/or
     be continuing:

               (i) an event or events shall have occurred resulting in the
          effective absence of a "repo market" or comparable "lending market"
          for financing debt obligations secured by mortgage loans or securities
          or an event or events shall have occurred resulting in the Lender not
          being able to finance any Mortgage Loans through the "repo market" or
          "lending

                                       5

<PAGE>

          market" with traditional counterparties at rates which would have been
          reasonable prior to the occurrence of such event or events;

               (ii) an event or events shall have occurred resulting in the
          effective absence of a "securities market" for securities backed by
          mortgage loans or an event or events shall have occurred resulting in
          the Lender not being able to sell securities backed by mortgage loans
          at prices which would have been reasonable prior to such event or
          events; or

               (iii) there shall have occurred a material adverse change in the
          financial condition of the Lender which affects (or can reasonably be
          expected to affect) materially and adversely the ability of the Lender
          to fund its obligations under this Loan Agreement.

          (f) NO MORGAN STANLEY DOWNGRADE. Morgan Stanley Dean Witter & Co.'s
     corporate bond rating as calculated by S&P or Moody's has not been lowered
     or downgraded to a rating below A- as indicated by S&P or below A3 as
     indicated by Moody's;

          (g) FILINGS, REGISTRATIONS, RECORDINGS. Any additional documents
     (including, without limitation, financing statements) required to be filed,
     registered or recorded in order to create, in favor of the Lender, a
     perfected, first-priority security interest in the Collateral, subject to
     no Liens other than those created hereunder, shall have been properly
     prepared and executed for filing (including the applicable county(ies) if
     the Lender determines such filings are necessary in its sole discretion),
     registration or recording in each office in each jurisdiction in which such
     filings, registrations and recordations are required to perfect such
     first-priority security interest; PROVIDED, that assignments of the
     Mortgages securing or related to the Mortgage Loans shall not be required
     to be recorded prior to the occurrence of an Event of Default;

          (h) RELEASE AND CERTIFICATION LETTER. The Lender shall have received
     from the Borrower either (i) a Warehouse Lender's Release and Certification
     Letter substantially in the form of Exhibit E-2 hereto (or such other form
     acceptable to the Lender) or (ii) a Seller's Release Letter substantially
     in the form of Exhibit E-1 hereto (or such other form acceptable to the
     Lender) covering each Mortgage Loan to be pledged to the Lender, and, in
     the case of Limited File Loans, (iii) an executed Bailee Letter relating
     thereto substantially in the form of Exhibit E-3 hereto;

          (i) INITIAL ADVANCE. Anything contained in Section 2.1(a) to the
     contrary notwithstanding, the initial advance amount for any Mortgage Loan
     made hereunder shall only be made upon receipt by the Lender of a Warehouse
     Lender's Release and Certification Letter and shall not exceed the lesser
     of (i) 98% of the Market Value of such Mortgage Loan and (ii) 100% of the
     then unpaid principal balance of such Mortgage Loan;

                                       6

<PAGE>

          (j) INITIAL COLLATERAL VALUE. If the Mortgage Note and Assignment of
     Mortgage (as such term is defined in the Custodial Agreement) for any
     Limited File Loan is not delivered to the Custodian within three (3)
     Business Days after its related Funding Date, as confirmed to the Lender by
     a written certification delivered to it by the Custodian within such three
     (3) Business Days period, the related Limited File Loan shall, commencing
     on the fourth Business Day after its related Funding Date, have a
     Collateral Value of zero until such time as the remaining Mortgage File
     items with respect to such Mortgage Loan shall have been delivered to the
     Custodian and identified in a Mortgage Loan Schedule and Exception Report;

          (k) DISCRETIONARY MORTGAGE LOANS. At least three (3) Business Days
     prior to a Funding Date, the Borrower shall have provided to the Lender a
     certification as to the reason why a Discretionary Mortgage Loan has not
     been previously disposed of by the Borrower and the Lender shall have
     approved of the inclusion of such Discretionary Mortgage Loan in the
     Mortgage Loan Schedule and Exception Report to be pledged hereunder on such
     Funding Date; and

          (l) BAILEE LETTER. A Bailee Letter, substantially in the form of
     Exhibit E-3 hereto, between a Warehouse Lender and the Lender, with respect
     to Limited File Loans, if any.

          Each request for a borrowing by the Borrower hereunder shall
     constitute a certification by the Borrower that all the conditions set
     forth in this Article V (other than Sections 5.2(e) and (f)) have been
     satisfied (both as of the date of such notice, request or confirmation and
     as of the date of such borrowing).

          (N) The following Section 5.3 shall be added after the end of Section
     5.2:

          Section 5.3. INITIAL AND SUBSEQUENT LOANS; SUBSEQUENT ADVANCES. The
     making of a subsequent advance with respect to each Loan on any Business
     Day is subject to the satisfaction of the following further conditions
     precedent with respect to each Mortgage Loan:

          (a) DUE DILIGENCE. Subject to the Lender's right to perform one or
     more Due Diligence Reviews pursuant to Section 11.15 hereof, the Lender
     shall have completed its due diligence review of the Mortgage Loan
     Documents for each Loan and such other documents, records, agreements,
     instruments, Mortgaged Properties or information relating to such Mortgage
     Loans as the Lender in its sole discretion deems appropriate to review and
     such review shall be satisfactory to the Lender in its sole discretion;

          (b) COMPLETE MORTGAGE FILE. The Custodian shall have received the
     complete Mortgage File with respect to any Mortgage Loan pledged hereunder
     on the immediately preceding Funding Date;

          (c) MORTGAGE LOAN SCHEDULE AND EXCEPTION REPORT. The Lender shall have
     received from the Custodian a Mortgage Loan Schedule and Exception

                                       7

<PAGE>

     Report with Exceptions as are acceptable to the Lender in its sole
     discretion in respect of the Eligible Mortgage Loans pledged on the
     immediately preceding Funding Date; and

          (d) SUBSEQUENT ADVANCE. Upon receipt by the Lender of the Mortgage
     Loan Schedule and Exception Report including each of the Limited File Loans
     (showing no Exceptions thereto other than those approved by the Lender)
     which were the subject of an initial advance on the immediately preceding
     Funding Date, the Lender shall make a subsequent advance with respect to
     such Eligible Mortgage Loans equal to the difference between the amount of
     the initial advance and the amount which would have been funded on the
     Funding Date in accordance with the valuation method as described in
     Section 2.1(a) hereof.

          (O) Paragraph (ss) of Schedule 1, Part I is hereby amended and
restated as follows:

          (ss) ORIGINATION DATE. If a Mortgage Loan is an Unseasoned Mortgage
     Loan, it has been originated within three months prior to the related
     Funding Date, and if a Mortgage Loan is a Defaulted Mortgage Loan or a
     Seasoned Mortgage Loan, it has been originated within twelve (12) months
     prior to related the Funding Date.

          (P) Part I of Schedule 1 is hereby amended to add the following
paragraph:

          (zz) Each Mortgage Loan with respect to which the credit of the
     Obligor thereunder was determined in accordance with the Fair Isaac & Co.
     credit scoring method does not constitute a Sub-prime Mortgage Loan.

          (Q) Paragraph (b) of Schedule 1, Part II is hereby amended and
restated as follows:

          (b) CONCENTRATION LIMIT. As of a Funding Date:

          1. the aggregate unpaid principal balance of the Second Lien Mortgage
          Loans shall not exceed $40,000,000;

          2. the aggregate unpaid principal balance of the 30+ Delinquent
          Mortgage Loans shall not exceed $15,000,000;

          3. the aggregate unpaid principal balance of the 60+ Delinquent
          Mortgage Loans shall not exceed $10,000,000;

          4. the aggregate unpaid principal balance of the Mortgage Loans that
          are secured by Mortgaged Properties consisting of Qualified
          Manufactured Housing shall not exceed $10,000,000;

                                       8

<PAGE>

          5. the aggregate unpaid principal balance of the Mortgage Loans that
          are secured by Mortgaged Properties consisting of condominiums shall
          not exceed $25,000,000;

          6. the aggregate unpaid principal balance of the Mortgage Loans that
          are secured by Mortgaged Properties which are non-owner occupied shall
          not exceed $25,000,000;

          7. the aggregate unpaid Principal Balance of the Sub-prime Mortgage
          Loans shall not exceed 18% of the outstanding principal balance of the
          Loan.

          8. the aggregate unpaid principal balance of the Defaulted Mortgage
          Loans shall not exceed $10,000,000.

          9. the aggregate unpaid principal balance of the Discretionary
          Mortgage Loans shall not exceed 10% of the aggregate outstanding
          principal balance of the Loans.

     SECTION 3. SURVIVAL. Except as expressly amended hereby, the Loan and
Security Agreement shall continue in full force and effect in accordance with
the provisions thereof and the Loan and Security Agreement is in all respects
hereby ratified, confirmed and preserved. This Amendment and all its provisions
shall be deemed a part of the Loan and Security Agreement in the manner and to
the extent herein provided.

     SECTION 4. SUCCESSORS AND ASSIGNS. This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns.

     SECTION 5. GOVERNING LAW. This Amendment shall be governed by New York law
without reference to its choice of law doctrine.

     SECTION 6. COUNTERPARTS. This Amendment may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Amendment by signing
any such counterpart.

                                       9

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to
be duly executed as of this 2nd day of April 2001.

                                     NC CAPITAL CORPORATION

                                     By: /s/ PATRICK FLANAGAN
                                        ------------------------------------
                                        Name:   Patrick Flanagan
                                        Title:  President

                                     MORGAN STANLEY DEAN WITTER MORTGAGE
                                     CAPITAL INC.

                                     By: /s/ [ILLEGIBLE]
                                         ----------------------------------
                                         Name:
                                         Title:

                                       10

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