Document:

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                        FINANCIAL ASSET SECURITIES CORP.,
                                    Depositor

                         CENTEX HOME EQUITY COMPANY, LLC
                                    Servicer

                                       and

                              JPMORGAN CHASE BANK,
                                     Trustee

                         POOLING AND SERVICING AGREEMENT

                            Dated as of July 1, 2004

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

                             CHEC Loan Trust 2004-1

                    Asset-Backed Certificates, Series 2004-1

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

<PAGE>

<TABLE>
<CAPTION>
                                                TABLE OF CONTENTS

                                                                                                               Page
<S>                                                                                                            <C>

                                                     ARTICLE I

                                                    DEFINITIONS

SECTION 1.01.     Defined Terms...................................................................................6
SECTION 1.02.     Accounting.....................................................................................53
SECTION 1.03.     Allocation of Certain Interest Shortfalls......................................................53

                                                    ARTICLE II

                                           CONVEYANCE OF MORTGAGE LOANS;
                                         ORIGINAL ISSUANCE OF CERTIFICATES

SECTION 2.01.     Conveyance of Mortgage Loans...................................................................54
SECTION 2.02.     Acceptance by Trustee..........................................................................57
SECTION 2.03.     Repurchase or Substitution of Mortgage Loans by the Originator or the
                  Seller.........................................................................................58
SECTION 2.04.     Intentionally Omitted..........................................................................61
SECTION 2.05.     Representations, Warranties and Covenants of the Servicer......................................61
SECTION 2.06.     Representations and Warranties of the Depositor................................................63
SECTION 2.07.     Issuance of Certificates.......................................................................65
SECTION 2.08.     [Reserved].....................................................................................65
SECTION 2.09.     Conveyance of REMIC Regular Interests and Acceptance of REMIC 1,
                  REMIC 2, REMIC 3 and REMIC 4 by the Trustee; Issuance of
                  Certificates ..................................................................................65

                                                    ARTICLE III

                                           ADMINISTRATION AND SERVICING
                                               OF THE MORTGAGE LOANS

SECTION 3.01.     Servicer to Act as Servicer....................................................................67
SECTION 3.02.     Sub-Servicing Agreements Between Servicer and Sub-Servicers....................................69
SECTION 3.03.     Successor Sub-Servicers........................................................................70
SECTION 3.04.     Liability of the Servicer......................................................................70
SECTION 3.05.     No Contractual Relationship Between Sub-Servicers and the Trustee or
                  Certificateholders.............................................................................70
SECTION 3.06.     Assumption or Termination of Sub-Servicing Agreements by Trustee...............................71

                                                         i
<PAGE>

SECTION 3.07.     Collection of Certain Mortgage Loan Payments...................................................71
SECTION 3.08.     Sub-Servicing Accounts.........................................................................72
SECTION 3.09.     Collection of Taxes, Assessments and Similar Items; Escrow Accounts............................72
SECTION 3.10.     Collection Account and Distribution Account....................................................73
SECTION 3.11.     Withdrawals from the Collection Account and Distribution
                           Account...............................................................................73
SECTION 3.12.     Investment of Funds in the Collection Account and the Distribution
                  Account........................................................................................77
SECTION 3.13.     [Reserved].....................................................................................78
SECTION 3.14.     Maintenance of Hazard Insurance and Errors and Omissions and Fidelity
                  Coverage.......................................................................................78
SECTION 3.15.     Enforcement of Due-On-Sale Clauses; Assumption Agreements......................................80
SECTION 3.16.     Realization Upon Defaulted Mortgage Loans......................................................81
SECTION 3.17.     Trustee to Cooperate; Release of Mortgage Files................................................83
SECTION 3.18.     Servicing Compensation.........................................................................84
SECTION 3.19.     Reports to the Trustee; Collection Account Statements..........................................85
SECTION 3.20.     Statement as to Compliance.....................................................................85
SECTION 3.21.     Independent Public Accountants' Servicing Report...............................................85
SECTION 3.22.     Access to Certain Documentation; Filing of Reports by Trustee..................................86
SECTION 3.23.     Title, Management and Disposition of REO Property..............................................88
SECTION 3.24.     Obligations of the Servicer in Respect of Prepayment Interest Shortfalls.......................91
SECTION 3.25.     [Reserved].....................................................................................91
SECTION 3.26.     Obligations of the Servicer in Respect of Mortgage Rates and Monthly
                  Payments.......................................................................................91
SECTION 3.27.     [Reserved].....................................................................................91
SECTION 3.28.     [Reserved].....................................................................................91
SECTION 3.29.     Advance Facility...............................................................................91

                                                    ARTICLE IV

                                                   FLOW OF FUNDS

SECTION 4.01.     Distributions..................................................................................94
SECTION 4.02.     [Reserved]....................................................................................100
SECTION 4.03.     Statements....................................................................................101
SECTION 4.04.     Remittance Reports; Advances..................................................................103
SECTION 4.05.     [Reserved]....................................................................................105
SECTION 4.06.     Net WAC Rate Carryover Reserve Account........................................................105
SECTION 4.07.     Distributions on the REMIC 1 Regular Interests................................................106
SECTION 4.08.     Allocation of Realized Losses.................................................................107

                                                        ii
<PAGE>

                                                     ARTICLE V

                                                 THE CERTIFICATES

SECTION 5.01.     The Certificates..............................................................................110
SECTION 5.02.     Registration of Transfer and Exchange of Certificates.........................................110
SECTION 5.03.     Mutilated, Destroyed, Lost or Stolen Certificates.............................................115
SECTION 5.04.     Persons Deemed Owners.........................................................................116
SECTION 5.05.     Appointment of Paying Agent...................................................................116

                                                    ARTICLE VI

                                          THE SERVICER AND THE DEPOSITOR

SECTION 6.01.     Liability of the Servicer and the Depositor...................................................117
SECTION 6.02.     Merger or Consolidation of, or Assumption of the Obligations of, the
                  Servicer or the Depositor.....................................................................117
SECTION 6.03.     Limitation on Liability of the Servicer and Others............................................117
SECTION 6.04.     Servicer Not to Resign........................................................................118
SECTION 6.05.     Delegation of Duties..........................................................................118
SECTION 6.06.     [Reserved]....................................................................................118
SECTION 6.07.     Inspection....................................................................................119

                                                    ARTICLE VII

                                                      DEFAULT

SECTION 7.01.     Servicer Events of Termination................................................................120
SECTION 7.02.     Trustee to Act; Appointment of Successor......................................................122
SECTION 7.03.     Waiver of Defaults............................................................................123
SECTION 7.04.     Notification to Certificateholders............................................................123
SECTION 7.05.     Survivability of Servicer Liabilities.........................................................123

                                                   ARTICLE VIII

                                                    THE TRUSTEE

SECTION 8.01.     Duties of Trustee.............................................................................124
SECTION 8.02.     Certain Matters Affecting the Trustee.........................................................125
SECTION 8.03.     Trustee Not Liable for Certificates or Mortgage Loans.........................................126
SECTION 8.04.     Trustee May Own Certificates..................................................................127
SECTION 8.05.     Trustee Fee and Expenses......................................................................127
SECTION 8.06.     Eligibility Requirements for Trustee..........................................................128

                                                        iii
<PAGE>

SECTION 8.07.     Resignation or Removal of Trustee.............................................................128
SECTION 8.08.     Successor Trustee.............................................................................129
SECTION 8.09.     Merger or Consolidation of Trustee............................................................129
SECTION 8.10.     Appointment of Co-Trustee or Separate Trustee.................................................130
SECTION 8.11.     Limitation of Liability.......................................................................131
SECTION 8.12.     Trustee May Enforce Claims Without Possession of Certificates.................................131
SECTION 8.13.     Suits for Enforcement.........................................................................132
SECTION 8.14.     Waiver of Bond Requirement....................................................................132
SECTION 8.15.     Waiver of Inventory, Accounting and Appraisal Requirement.....................................132

                                                    ARTICLE IX

                                               REMIC ADMINISTRATION

SECTION 9.01.     REMIC Administration..........................................................................133
SECTION 9.02.     Prohibited Transactions and Activities........................................................135
SECTION 9.03.     Indemnification with Respect to Certain Taxes and Loss of REMIC Status........................135

                                                     ARTICLE X

                                                    TERMINATION

SECTION 10.01.    Termination...................................................................................137
SECTION 10.02.    Additional Termination Requirements...........................................................138

                                                     ARTICLE XI

                                              MISCELLANEOUS PROVISIONS

SECTION 11.01.    Amendment.....................................................................................140
SECTION 11.02.    Recordation of Agreement; Counterparts........................................................141
SECTION 11.03.    Limitation on Rights of Certificateholders....................................................141
SECTION 11.04.    Governing Law; Jurisdiction...................................................................142
SECTION 11.05.    Notices.......................................................................................142
SECTION 11.06.    Severability of Provisions....................................................................143
SECTION 11.07.    Article and Section References................................................................143
SECTION 11.08.    Notice to the Rating Agencies.................................................................143
SECTION 11.09.    Further Assurances............................................................................144
SECTION 11.10.    Benefits of Agreement.........................................................................144
SECTION 11.11     Acts of Certificateholders....................................................................144
</TABLE>

                                                        iv
<PAGE>

Exhibits:
---------

Exhibit A-1    Form of Class A-1 Certificates
Exhibit A-2    Form of Class A-2 Certificates
Exhibit A-3    Form of Class A-3 Certificates
Exhibit A-4    Form of Class M-1 Certificates
Exhibit A-5    Form of Class M-2 Certificates
Exhibit A-6    Form of Class M-3 Certificates
Exhibit A-7    Form of Class M-4 Certificates
Exhibit A-8    Form of Class M-5 Certificates
Exhibit A-9    Form of Class M-6 Certificates
Exhibit A-10   Form of Class M-7 Certificates
Exhibit A-11   Form of Class M-8 Certificates
Exhibit A-12   Form of Class M-9 Certificates
Exhibit A-13   Form of Class B-1 Certificates
Exhibit A-14   Form of Class B-2 Certificates
Exhibit A-15   Form of Class C Certificates
Exhibit A-16   Form of Class P Certificates
Exhibit A-17   Form of Class R Certificates
Exhibit A-18   Form of Class R-X Certificates
Exhibit A-19   Form of Class R-[1][2][3][4] Interest Certificate
Exhibit B      [Reserved]
Exhibit C      Form of Assignment Agreement
Exhibit D      Mortgage Loan Schedule
Exhibit E      Request for Release
Exhibit F-1    Form of Trustee's Initial Certification
Exhibit F-2    Form of Trustee's Final Certification
Exhibit F-3    Form of Trustee's Receipt of Mortgage Notes
Exhibit G      Form of Compliance Certificate
Exhibit H      Form of Lost Note Affidavit
Exhibit I      Form of Power of Attorney
Exhibit J      Form of Investment Letter
Exhibit K      Form of Transfer Affidavit for Residual Certificates
Exhibit L      Form of Transferor Certificate
Exhibit M      Form of ERISA Representation Letter
Exhibit N-1    Form of Certification to Be Provided by the Depositor with
               Form 10-K
Exhibit N-2    Form of Certification to Be Provided to Depositor by the Trustee
Exhibit N-3    Form of Certification to Be Provided to Depositor by the Servicer
Exhibit O      Form of Cap Contract

Schedule I     Prepayment Charge Schedule

                                        v
<PAGE>

      This  Pooling  and  Servicing  Agreement  is dated as of July 1, 2004 (the
"Agreement"),   among  FINANCIAL  ASSET  SECURITIES  CORP.,  as  depositor  (the
"Depositor"),  CENTEX HOME EQUITY COMPANY, LLC, as servicer (the "Servicer") and
JPMORGAN CHASE BANK, as trustee (the "Trustee").

                             PRELIMINARY STATEMENT:

      The Depositor intends to sell pass-through certificates (collectively, the
"Certificates"),  to be  issued  hereunder  in  multiple  classes,  which in the
aggregate will evidence the entire  beneficial  ownership  interest in the Trust
Fund created  hereunder.  The  Certificates  will consist of eighteen classes of
certificates,  designated as (i) the Class A-1 Certificates,  (ii) the Class A-2
Certificates, (iii) the Class A-3 Certificates, (iv) the Class M-1 Certificates,
(v) the Class M-2 Certificates, (vi) the Class M-3 Certificates, (vii) the Class
M-4  Certificates,  (viii)  the  Class  M-5  Certificates,  (ix) the  Class  M-6
Certificates,  (x) the Class M-7 Certificates,  (xi) the Class M-8 Certificates,
(xii) the Class M-9 Certificates,  (xiii) the Class B-1 Certificates,  (xiv) the
Class  B-2  Certificates,  (xv) the  Class C  Certificates,  (xvi)  the  Class P
Certificates,  (xvii)  the  Class R  Certificates  and  (xviii)  the  Class  R-X
Certificates.

<PAGE>

                                     REMIC 1

      As  provided  herein,  the  Trustee  will  make an  election  to treat the
segregated pool of assets  consisting of the Mortgage  Loans,  and certain other
related  assets  subject  to this  Agreement  (exclusive  of the  Net  WAC  Rate
Carryover  Reserve Account,  any Servicer  Prepayment Charge Payment Amounts and
the Cap Contract) as a real estate mortgage  investment  conduit (a "REMIC") for
federal  income  tax  purposes,  and  such  segregated  pool of  assets  will be
designated as "REMIC 1." The Class R-1 Interest will represent the sole class of
"residual interests" in REMIC 1 for purposes of the REMIC Provisions (as defined
herein) under federal income tax law. The following table irrevocably sets forth
the  designation,  the  Uncertificated  REMIC 1  Pass-Through  Rate, the initial
Uncertificated Principal Balance, and solely for purposes of satisfying Treasury
regulation Section 1.860G-1(a)(4)(iii),  the "latest possible maturity date" for
each of the REMIC 1  Regular  Interests.  None of the REMIC 1 Regular  Interests
will be certificated.

<TABLE>
<CAPTION>
                  Uncertificated REMIC 2    Initial Uncertificated      Assumed Final
  Designation        Pass Through Rate         Principal Balance       Maturity Date(1)
-----------------------------------------------------------------------------------------
<S>                     <C>                     <C>                     <C>
     LTAA               Variable(2)             $303,207,787.88         July 25, 2034
     LTA1               Variable(2)              $ 800,000.00           July 25, 2034
     LTA2               Variable(2)             $ 1,400,000.00          July 25, 2034
     LTA3               Variable(2)              $ 321,570.00           July 25, 2034
     LTM1               Variable(2)               $ 97,460.00           July 25, 2034
     LTM2               Variable(2)               $ 88,180.00           July 25, 2034
     LTM3               Variable(2)               $ 55,690.00           July 25, 2034
     LTM4               Variable(2)               $ 47,960.00           July 25, 2034
     LTM5               Variable(2)               $ 44,860.00           July 25, 2034
     LTM6               Variable(2)               $ 44,860.00           July 25, 2034
     LTM7               Variable(2)               $ 37,130.00           July 25, 2034
     LTM8               Variable(2)               $ 32,490.00           July 25, 2034
     LTM9               Variable(2)               $ 30,940.00           July 25, 2034
     LTB1               Variable(2)               $ 30,940.00           July 25, 2034
     LTB2               Variable(2)               $ 30,940.00           July 25, 2034
     LTZZ               Variable(2)             $ 3,124,894.04          July 25, 2034
      LTP               Variable(2)                $ 100.00             July 25, 2034
</TABLE>

----------------
(1)  Solely  for  purposes  of  Section   1.860G-1(a)(4)(iii)  of  the  Treasury
     regulations,  the Distribution Date in the month immediately  following the
     maturity date for the Mortgage Loan with the latest possible  maturity date
     has been designated as the "latest possible maturity date" for each REMIC 1
     Regular Interest.
(2)  Calculated in accordance  with the  definition of  "Uncertificated  REMIC 1
     Pass-Through Rate" herein.

                                        2
<PAGE>

                                     REMIC 2

      As  provided  herein,  the  Trustee  shall make an  election  to treat the
segregated pool of assets consisting of the REMIC 1 Regular Interests as a REMIC
for federal  income tax  purposes,  and such  segregated  pool of assets will be
designated  as "REMIC 2." The Class R-2  Interest  represents  the sole class of
"residual interests" in REMIC 2 for purposes of the REMIC Provisions.

      The  following  table sets  forth (or  describes)  the Class  designation,
Pass-Through  Rate, the Original Class Certificate  Principal Balance and solely
for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii),  the
"latest possible  maturity date" for each Class of Certificates  that represents
one or more of the "regular interests" in REMIC 2 created hereunder:

<TABLE>
<CAPTION>
                           Original Class Certificate                            Assumed Final
    Class Designation           Principal Balance         Pass Through Rate     Maturity Date(1)
--------------------------------------------------------------------------------------------------
<S>                              <C>                         <C>                 <C>
Class A-1.................        $ 80,000,000.00            Variable(2)         July 25, 2034
Class A-2.................        $140,000,000.00            Variable(2)         July 25, 2034
Class A-3.................        $ 32,157,000.00            Variable(2)         July 25, 2034
Class M-1.................        $ 9,746,000.00             Variable(2)         July 25, 2034
Class M-2.................        $ 8,818,000.00             Variable(2)         July 25, 2034
Class M-3.................        $ 5,569,000.00             Variable(2)         July 25, 2034
Class M-4.................        $ 4,796,000.00             Variable(2)         July 25, 2034
Class M-5.................        $ 4,486,000.00             Variable(2)         July 25, 2034
Class M-6.................        $ 4,486,000.00             Variable(2)         July 25, 2034
Class M-7.................        $ 3,713,000.00             Variable(2)         July 25, 2034
Class M-8.................        $ 3,249,000.00             Variable(2)         July 25, 2034
Class M-9.................        $ 3,094,000.00             Variable(2)         July 25, 2034
Class B-1.................        $ 3,094,000.00             Variable(2)         July 25, 2034
Class B-2.................        $ 3,094,000.00             Variable(2)         July 25, 2034
Class C Interest..........       $ 3,093,701.92(3)           Variable(2)         July 25, 2034
Class P Interest..........           $ 100.00                   N/A(4)           July 25, 2034
</TABLE>

----------------
(1)  Solely  for  purposes  of  Section   1.860G-1(a)(4)(iii)  of  the  Treasury
     regulations,  the Distribution Date in the month immediately  following the
     maturity date for the Mortgage Loan with the latest  maturity date has been
     designated  as the  "latest  possible  maturity  date"  for  each  Class of
     Certificates  that  represents  one or more of the "regular  interests"  in
     REMIC 2.
(2)  Calculated in accordance with the definition of "Pass-Through Rate" herein.
(3)  The Class C Interest will accrue  interest at their  variable  Pass-Through
     Rate on the Notional Amount of the Class C Interest  outstanding  from time
     to time which shall equal the  aggregate  of the  Uncertificated  Principal
     Balances  of the  REMIC 1 Regular  Interests  (other  than  REMIC 1 Regular
     Interest  LTP).  The  Class C  Interest  will not  accrue  interest  on its
     Certificate Principal Balance.
(4)  The Class P Interest will not accrue interest.

                                        3
<PAGE>

                                     REMIC 3

      As  provided  herein,  the  Trustee  shall make an  election  to treat the
segregated  pool of assets  consisting  of the Class C  Interest  as a REMIC for
federal  income  tax  purposes,  and  such  segregated  pool of  assets  will be
designated  as "REMIC 3." The Class R-3  Interest  represents  the sole class of
"residual interests" in REMIC 3 for purposes of the REMIC Provisions.

      The  following  table sets  forth (or  describes)  the Class  designation,
Pass-Through  Rate and  Original  Class  Certificate  Principal  Balance for the
indicated Class of Certificates that represents a "regular  interest" in REMIC 3
created hereunder:

<TABLE>
<CAPTION>
                                                  Initial Aggregate
                                                Certificate Principal     Latest Possible
    Class Designation      Pass-Through Rate           Balance           Maturity Date(1)
--------------------------------------------------------------------------------------------
<S>                           <C>                   <C>                    <C>
  Class C Certificates        Variable(2)           $3,093,701.92          July 25, 2034
</TABLE>

---------------
(1)  Solely  for  purposes  of  Section   1.860G-1(a)(4)(iii)  of  the  Treasury
     regulations,  the Distribution Date immediately following the maturity date
     for the Mortgage Loans with the latest maturity date has been designated as
     the "latest possible maturity date" for the Class C Certificates.
(2)  The Class C Certificates  will receive 100% of amounts  received in respect
     of the Class C Interest.

                                        4
<PAGE>

                                     REMIC 4

      As  provided  herein,  the  Trustee  shall make an  election  to treat the
segregated  pool of assets  consisting  of the Class P  Interest  as a REMIC for
federal  income  tax  purposes,  and  such  segregated  pool of  assets  will be
designated  as "REMIC 4." The Class R-4  Interest  represents  the sole class of
"residual interests" in REMIC 4 for purposes of the REMIC Provisions.

      The  following  table sets  forth (or  describes)  the Class  designation,
Pass-Through  Rate and  Original  Class  Certificate  Principal  Balance for the
indicated Class of Certificates that represents a "regular  interest" in REMIC 4
created hereunder:

<TABLE>
<CAPTION>
                                                    Initial Aggregate
                                                  Certificate Principal      Latest Possible
      Class Designation      Pass-Through Rate           Balance            Maturity Date(1)
-----------------------------------------------------------------------------------------------
<S>                             <C>                      <C>                  <C>
    Class P Certificates        Variable(2)              $100.00              July 25, 2034
</TABLE>

---------------
(1)  Solely  for  purposes  of  Section   1.860G-1(a)(4)(iii)  of  the  Treasury
     regulations,  the Distribution Date immediately following the maturity date
     for the Mortgage Loans with the latest maturity date has been designated as
     the "latest possible maturity date" for the Class P Certificates.
(2)  The Class P Certificates  will receive 100% of amounts  received in respect
     of the Class P Interest.

                                        5
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

      SECTION 1.01. Defined Terms.

      Whenever  used in this  Agreement  or in the  Preliminary  Statement,  the
following words and phrases,  unless the context otherwise requires,  shall have
the  meanings  specified  in  this  Article.  Unless  otherwise  specified,  all
calculations in respect of interest on the Floating Rate  Certificates  shall be
made on the basis of the actual  number of days  elapsed and a 360-day  year and
all other  calculations of interest  described herein shall be made on the basis
of a 360-day year  consisting of twelve 30-day months.  The Class P Certificates
and the Residual  Certificates  are not entitled to  distributions in respect of
interest and, accordingly, will not accrue interest.

      "1933 Act": The Securities Act of 1933, as amended.

      "Account": Either of the Collection Account and Distribution Account.

      "Accrual Period":  With respect to the Floating Rate Certificates and each
Distribution Date, the period commencing on the preceding  Distribution Date (or
in the case of the first such Accrual  Period,  commencing  on the Closing Date)
and ending on the day  preceding  such  Distribution  Date.  With respect to the
Class C Certificates and each Distribution Date, the calendar month prior to the
month of such Distribution Date.

      "Adjustable-Rate Mortgage Loan": A first lien Mortgage Loan which provides
at any period  during the life of such loan for the  adjustment  of the Mortgage
Rate  payable  in  respect  thereto.  The  Adjustable  Rate  Mortgage  Loans are
identified as such on the Mortgage Loan Schedule.

      "Adjusted Net Maximum  Mortgage  Rate":  With respect to any Mortgage Loan
(or the related REO Property), as of any date of determination, a per annum rate
of interest equal to the applicable Maximum Mortgage Rate for such Mortgage Loan
(or the Mortgage  Rate in the case of any  Fixed-Rate  Mortgage  Loan) as of the
first day of the month  preceding  the month in which the  related  Distribution
Date occurs minus the sum of (i) the Trustee Fee Rate and (ii) the Servicing Fee
Rate.

      "Adjusted  Net Mortgage  Rate":  With respect to any Mortgage Loan (or the
related  REO  Property),  as of any date of  determination,  a per annum rate of
interest equal to the applicable  Mortgage Rate for such Mortgage Loan as of the
first day of the month  preceding  the month in which the  related  Distribution
Date occurs minus the sum of (i) the Trustee Fee Rate and (ii) the Servicing Fee
Rate.

      "Adjustment  Date":  With respect to each  Adjustable-Rate  Mortgage Loan,
each  adjustment  date, on which the Mortgage Rate of such Mortgage Loan changes
pursuant to the related  Mortgage Note. The first  Adjustment Date following the
Cut-off  Date as to each  Adjustable-Rate  Mortgage  Loan  is set  forth  in the
Mortgage Loan Schedule.

                                        6
<PAGE>

      "Advance":  As to any Mortgage Loan or REO  Property,  any advance made by
the Servicer in respect of any Distribution Date pursuant to Section 4.04.

      "Advance Facility": As defined in Section 3.29 hereof.

      "Advance Facility Trustee": As defined in Section 3.29 hereof.

      "Advancing Person": As defined in Section 3.29 hereof.

      "Advance Reimbursement Amounts": As defined in Section 3.29 hereof.

      "Adverse REMIC Event": As defined in Section 9.01(f) hereof.

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

      "Agreement":  This  Pooling and  Servicing  Agreement  and all  amendments
hereof and supplements hereto.

      "Allocated  Realized Loss Amount":  With respect to any Distribution  Date
and any Class of Mezzanine Certificates or the Class B Certificates,  the sum of
(i)  any  Realized  Losses  allocated  to such  Class  of  Certificates  on such
Distribution Date and (ii) the amount of any Allocated  Realized Loss Amount for
such Class of Certificates  remaining unpaid from the previous Distribution Date
and reduced by the amount of any Subsequent  Recoveries added to the Certificate
Principal Balance of such Class of Certificates.

      "Assignment":  An assignment of Mortgage, notice of transfer or equivalent
instrument,  in  recordable  form,  which is  sufficient  under  the laws of the
jurisdiction  wherein  the related  Mortgaged  Property is located to reflect or
record the sale of the Mortgage.

      "Assignment  Agreement":  The Assignment and Recognition Agreement,  dated
July 29, 2004, among the Seller,  the Originator and the Depositor,  pursuant to
which certain of the Seller's rights under the Master Agreement were assigned to
the Depositor, substantially in the form attached hereto as Exhibit C.

      "Assumed Final Maturity Date": As to each Class of Certificates,  the date
set forth as such in the Preliminary Statement.

      "Available Funds":  With respect to any Distribution Date, an amount equal
to the  excess  of (i) the  sum of (a)  the  aggregate  of the  related  Monthly
Payments received on the Mortgage Loans on or prior to the related Determination
Date, (b) Net Liquidation Proceeds,  Insurance Proceeds,  Principal Prepayments,
Subsequent  Recoveries,  proceeds from repurchases of and substitutions for such
Mortgage  Loans and other  unscheduled  recoveries  of principal and interest in

                                       7
<PAGE>

respect of the Mortgage Loans received during the related Prepayment Period, (c)
the  aggregate  of any amounts  received  in respect of a related  REO  Property
withdrawn from any REO Account and deposited in the Collection  Account for such
Distribution  Date, (d) the aggregate of any amounts deposited in the Collection
Account by the Servicer in respect of related Prepayment Interest Shortfalls for
such  Distribution  Date, (e) the aggregate of any Advances made by the Servicer
for such  Distribution  Date in respect of the Mortgage Loans, (f) the aggregate
of any related advances made by the Trustee as successor  Servicer in respect of
the Mortgage Loans for such  Distribution  Date pursuant to Section 7.02 and (g)
the amount of any  Prepayment  Charges  collected by the Servicer in  connection
with  the  full or  partial  prepayment  of any of the  Mortgage  Loans  and any
Servicer  Prepayment  Charge  Payment  Amount  over (ii) the sum of (a)  amounts
reimbursable  or  payable to the  Servicer  pursuant  to Section  3.11(a) or the
Trustee  pursuant to Section  3.11(b),  (b) amounts  deposited in the Collection
Account or the  Distribution  Account pursuant to clauses (a) through (g) above,
as the case may be, in error, (c) the amount of any Prepayment Charges collected
by the Servicer in connection with the full or partial  prepayment of any of the
Mortgage  Loans and any  Servicer  Prepayment  Charge  Payment  Amount,  (d) the
Trustee Fee payable from the  Distribution  Account pursuant to Section 8.05 and
(e) any  indemnification  payments or expense  reimbursements  made by the Trust
Fund pursuant to Section 6.03 or Section 8.05.

      "Bankruptcy  Code":  The  Bankruptcy  Reform Act of 1978  (Title 11 of the
United States Code), as amended.

      "Base Rate": For any Distribution Date and the Floating Rate Certificates,
the sum of (i) LIBOR plus (ii) the related Certificate Margin.

      "Basic Principal  Distribution  Amount":  With respect to any Distribution
Date, the excess of (i) the Principal  Remittance  Amount for such  Distribution
Date  over  (ii) the  Overcollateralization  Release  Amount,  if any,  for such
Distribution Date.

      "Book-Entry   Certificates":   Any  of  the  Certificates  that  shall  be
registered in the name of the Depository or its nominee,  the ownership of which
is  reflected  on the  books  of the  Depository  or on the  books  of a  Person
maintaining  an  account  with  the  Depository  (directly,   as  a  "Depository
Participant",  or indirectly,  as an indirect participant in accordance with the
rules of the Depository and as described in Section 5.02 hereof). On the Closing
Date, the Floating Rate Certificates shall be Book-Entry Certificates.

      "Business Day": Any day other than a Saturday,  a Sunday or a day on which
banking or savings institutions in the State of Delaware, the State of New York,
the State of California,  or in the city in which the Corporate  Trust Office of
the Trustee is located are authorized or obligated by law or executive  order to
be closed.

      "Cap Amount":  The Cap Amount for the Floating Rate  Certificates is equal
to (i) the  aggregate  amount  received  by the  Trust  from  the  Cap  Contract
multiplied by (ii) a fraction equal to (a) the Certificate  Principal Balance of
such Class immediately prior to the applicable  Distribution Date divided by (b)
the aggregate  Certificate  Principal  Balance of the Floating Rate Certificates
immediately prior to the applicable Distribution Date.

                                       8
<PAGE>

      "Cap Contract":  The Cap Contract between Greenwich  Capital  Derivatives,
Inc.  and the  counterparty  thereunder,  assigned  to the  Trustee  pursuant to
Section 2.01, a form of which is attached hereto as Exhibit O.

      "Certificate": Any Regular Certificate or Residual Certificate.

      "Certificateholder" or "Holder": The Person in whose name a Certificate is
registered in the Certificate Register,  except that a Disqualified Organization
or  non-U.S.  Person  shall not be a Holder of a  Residual  Certificate  for any
purpose  hereof and,  solely for the purposes of giving any consent  pursuant to
this Agreement,  any Certificate  registered in the name of the Depositor or the
Servicer or any Affiliate  thereof shall be deemed not to be outstanding and the
Voting  Rights  to which it is  entitled  shall  not be taken  into  account  in
determining  whether the  requisite  percentage  of Voting  Rights  necessary to
effect any such  consent  has been  obtained,  except as  otherwise  provided in
Section  11.01.  The Trustee may  conclusively  rely upon a  certificate  of the
Depositor or the Servicer in  determining  whether a  Certificate  is held by an
Affiliate  thereof.  All references herein to "Holders" or  "Certificateholders"
shall reflect the rights of Certificate  Owners as they may indirectly  exercise
such rights through the Depository and participating members thereof,  except as
otherwise  specified  herein;  provided,  however,  that  the  Trustee  shall be
required to  recognize as a "Holder" or  "Certificateholder"  only the Person in
whose name a Certificate is registered in the Certificate Register.

      "Certificate  Margin":  With respect to the Class A-1 Certificates on each
Distribution  Date (A) on or prior to the Optional  Termination Date, 0.120% per
annum and (B) after the  Optional  Termination  Date,  0.240%  per  annum.  With
respect to the Class A-2 Certificates on each  Distribution Date (A) on or prior
to the Optional  Termination  Date,  0.300% per annum and (B) after the Optional
Termination  Date,  0.600% per annum. With respect to the Class A-3 Certificates
on each  Distribution  Date (A) on or prior to the  Optional  Termination  Date,
0.500% per annum and (B) after the Optional  Termination Date, 1.000% per annum.
With respect to the Class M-1 Certificates on each  Distribution  Date (A) on or
prior to the  Optional  Termination  Date,  0.600%  per  annum and (B) after the
Optional  Termination  Date,  0.900%  per annum.  With  respect to the Class M-2
Certificates  on  each  Distribution  Date  (A)  on or  prior  to  the  Optional
Termination Date, 0.650% per annum and (B) after the Optional  Termination Date,
0.975%  per  annum.   With  respect  to  the  Class  M-3  Certificates  on  each
Distribution  Date (A) on or prior to the Optional  Termination Date, 0.700% per
annum and (B) after the  Optional  Termination  Date,  1.050%  per  annum.  With
respect to the Class M-4 Certificates on each  Distribution Date (A) on or prior
to the Optional  Termination  Date,  1.100% per annum and (B) after the Optional
Termination  Date,  1.650% per annum. With respect to the Class M-5 Certificates
on each  Distribution  Date (A) on or prior to the  Optional  Termination  Date,
1.200% per annum and (B) after the Optional  Termination Date, 1.800% per annum.
With respect to the Class M-6 Certificates on each  Distribution  Date (A) on or
prior to the  Optional  Termination  Date,  1.400%  per  annum and (B) after the
Optional  Termination  Date,  2.100%  per annum.  With  respect to the Class M-7
Certificates  on  each  Distribution  Date  (A)  on or  prior  to  the  Optional
Termination Date, 1.850% per annum and (B) after the Optional  Termination Date,
2.775%  per  annum.   With  respect  to  the  Class  M-8  Certificates  on  each
Distribution  Date (A) on or prior to the Optional  Termination Date, 2.000% per
annum and (B) after the  Optional  Termination  Date,  3.000%  per  annum.  With
respect to the Class M-9 Certificates on each  Distribution Date (A) on or prior
to the Optional  Termination  Date,  3.500% per annum and (B) after the Optional
Termination

                                       9
<PAGE>

Date,  5.250% per annum.  With  respect  to the Class B-1  Certificates  on each
Distribution  Date (A) on or prior to the Optional  Termination Date, 3.500% per
annum and (B) after the  Optional  Termination  Date,  5.250%  per  annum.  With
respect to the Class B-2 Certificates on each  Distribution Date (A) on or prior
to the Optional  Termination  Date,  3.500% per annum and (B) after the Optional
Termination Date, 5.250% per annum.

      "Certificate  Owner":  With respect to each  Book-Entry  Certificate,  any
beneficial owner thereof.

      "Certificate  Principal  Balance":  With  respect  to any Class of Regular
Certificates  (other  than the Class C  Certificates)  immediately  prior to any
Distribution  Date  plus any  Subsequent  Recoveries  added  to the  Certificate
Principal Balance of such Certificate pursuant to Section 4.01, will be equal to
the Initial Certificate  Principal Balance thereof reduced by (A) the sum of all
amounts  actually  distributed  in respect of principal of such Class and (B) in
the case of a Mezzanine  Certificate  or Class B  Certificate,  Realized  Losses
allocated thereto on all prior  Distribution  Dates. With respect to the Class C
Certificates as of any date of determination,  an amount equal to the excess, if
any, of (A) the then aggregate  Uncertificated Principal Balances of the REMIC 1
Regular Interests over (B) the then aggregate  Certificate  Principal Balance of
the Floating Rate Certificates and the Class P Certificates then outstanding.

      "Certificate   Register"  and   "Certificate   Registrar":   The  register
maintained and registrar appointed pursuant to Section 5.02 hereof.

      "Certification": As defined in Section 3.22(b)(ii).

      "Class":  Collectively,  Certificates  which  have  the same  priority  of
payment and bear the same class  designation  and the form of which is identical
except for variation in the Percentage Interest evidenced thereby.

      "Class A-1 Certificate": Any one of the Class A-1 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-1,  representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class A-2 Certificate": Any one of the Class A-2 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-2,  representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class A-3 Certificate": Any one of the Class A-3 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-3,  representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class A Certificates":  Any Class A-1 Certificate,  Class A-2 Certificate
or Class A-3 Certificate.

                                       10
<PAGE>

      "Class B-1 Certificate": Any one of the Class B-1 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-13, representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class B-1 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such Distribution Date), (ii) the Certificate Principal Balance of the
Class M-1 Certificates  (after taking into account the distribution of the Class
M-1  Principal  Distribution  Amount  on  such  Distribution  Date),  (iii)  the
Certificate  Principal Balance of the Class M-2 Certificates  (after taking into
account the distribution of the Class M-2 Principal  Distribution Amount on such
Distribution  Date),  (iv) the  Certificate  Principal  Balance of the Class M-3
Certificates  (after  taking  into  account  the  distribution  of the Class M-3
Principal  Distribution  Amount on such Distribution  Date), (v) the Certificate
Principal  Balance of the Class M-4 Certificates  (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date),  (vi) the  Certificate  Principal  Balance of the Class M-5  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-5  Principal
Distribution Amount on such Distribution Date), (vii) the Certificate  Principal
Balance  of  the  Class  M-6   Certificates   (after  taking  into  account  the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date),  (viii) the Certificate  Principal  Balance of the Class M-7 Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-7  Principal
Distribution Amount on such Distribution  Date), (ix) the Certificate  Principal
Balance  of  the  Class  M-8   Certificates   (after  taking  into  account  the
distribution of the Class M-8 Principal Distribution Amount on such Distribution
Date),  (x) the  Certificate  Principal  Balance  of the Class M-9  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-9  Principal
Distribution  Amount  on  such  Distribution  Date)  and  (xi)  the  Certificate
Principal  Balance  of the  Class  B-1  Certificates  immediately  prior to such
Distribution  Date over (y) the lesser of (A) the product of (i) 96.00% and (ii)
the aggregate Stated Principal  Balance of the Mortgage Loans as of the last day
of the  related  Due  Period  (after  giving  effect to  scheduled  payments  of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled  collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal  Balance of the Mortgage Loans as
of the last day of the  related Due Period  (after  giving  effect to  scheduled
payments of principal due during the related Due Period,  to the extent received
or  advanced,  and  unscheduled  collections  of principal  received  during the
related Prepayment Period) minus the Overcollateralization Floor.

      "Class B-2 Certificate": Any one of the Class B-2 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-14, representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class B-2 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such Distribution Date), (ii) the Certificate Principal Balance of the
Class M-1 Certificates  (after taking into account the distribution of the Class
M-1  Principal  Distribution  Amount  on  such  Distribution  Date),  (iii)  the
Certificate

                                       11
<PAGE>

Principal  Balance of the Class M-2 Certificates  (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date),  (iv) the  Certificate  Principal  Balance of the Class M-3  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-3  Principal
Distribution  Amount on such Distribution  Date), (v) the Certificate  Principal
Balance  of  the  Class  M-4   Certificates   (after  taking  into  account  the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date),  (vi) the  Certificate  Principal  Balance of the Class M-5  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-5  Principal
Distribution Amount on such Distribution Date), (vii) the Certificate  Principal
Balance  of  the  Class  M-6   Certificates   (after  taking  into  account  the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date),  (viii) the Certificate  Principal  Balance of the Class M-7 Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-7  Principal
Distribution Amount on such Distribution  Date), (ix) the Certificate  Principal
Balance  of  the  Class  M-8   Certificates   (after  taking  into  account  the
distribution of the Class M-8 Principal Distribution Amount on such Distribution
Date),  (x) the  Certificate  Principal  Balance  of the Class M-9  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-9  Principal
Distribution Amount on such Distribution  Date), (xi) the Certificate  Principal
Balance  of  the  Class  B-1   Certificates   (after  taking  into  account  the
distribution of the Class B-1 Principal Distribution Amount on such Distribution
Date) and (xii) the Certificate  Principal Balance of the Class B-2 Certificates
immediately  prior to such  Distribution  Date  over (y) the  lesser  of (A) the
product of (i) 98.00% and (ii) the  aggregate  Stated  Principal  Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to  scheduled  payments of principal  due during the related Due Period,  to the
extent received or advanced,  and unscheduled  collections of principal received
during the related  Prepayment  Period) and (B) the aggregate  Stated  Principal
Balance  of the  Mortgage  Loans as of the last day of the  related  Due  Period
(after giving  effect to scheduled  payments of principal due during the related
Due Period, to the extent received or advanced,  and unscheduled  collections of
principal   received   during  the   related   Prepayment   Period)   minus  the
Overcollateralization Floor.

      "Class C  Certificates":  Any one of the Class C Certificates  executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-15, representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 3.

      "Class C Interest":  An uncertificated  interest in the Trust Fund held by
the Trustee on behalf of the Holders of the Class C  Certificates,  evidencing a
Regular Interest in REMIC 2 for purposes of the REMIC Provisions.

      "Class M-1 Certificate": Any one of the Class M-1 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-4,  representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class M-1 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such Distribution Date) and (ii) the aggregate  Certificate  Principal
Balance of the Class M-1  Certificates  immediately  prior to such  Distribution
Date over (y) the lesser of (A) the product of (i) 69.30% and (ii) the aggregate
Stated

                                       12
<PAGE>

Principal  Balance of the  Mortgage  Loans as of the last day of the related Due
Period (after  giving  effect to scheduled  payments of principal due during the
related  Due  Period,  to the  extent  received  or  advanced,  and  unscheduled
collections of principal  received during the related Prepayment Period) and (B)
the aggregate Stated Principal  Balance of the Mortgage Loans as of the last day
of the  related  Due  Period  (after  giving  effect to  scheduled  payments  of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled  collections of principal received during the related Prepayment
Period) minus the Overcollateralization Floor.

      "Class M-2 Certificate": Any one of the Class M-2 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-5,  representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class M-2 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such  Distribution  Date),  (ii) the aggregate  Certificate  Principal
Balance  of  the  Class  M-1   Certificates   (after  taking  into  account  the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date) and (iii) the Certificate  Principal Balance of the Class M-2 Certificates
immediately  prior to such  Distribution  Date  over (y) the  lesser  of (A) the
product of (i) 75.00% and (ii) the  aggregate  Stated  Principal  Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to  scheduled  payments of principal  due during the related Due Period,  to the
extent received or advanced,  and unscheduled  collections of principal received
during the related  Prepayment  Period) and (B) the aggregate  Stated  Principal
Balance  of the  Mortgage  Loans as of the last day of the  related  Due  Period
(after giving  effect to scheduled  payments of principal due during the related
Due Period, to the extent received or advanced,  and unscheduled  collections of
principal   received   during  the   related   Prepayment   Period)   minus  the
Overcollateralization Floor.

      "Class M-3 Certificate": Any one of the Class M-3 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-6,  representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class M-3 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such  Distribution  Date),  (ii) the aggregate  Certificate  Principal
Balance  of  the  Class  M-1   Certificates   (after  taking  into  account  the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date),  (iii) the Certificate  Principal  Balance of the Class M-2  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-2  Principal
Distribution  Amount  on  such  Distribution  Date)  and  (iv)  the  Certificate
Principal  Balance  of the  Class  M-3  Certificates  immediately  prior to such
Distribution  Date over (y) the lesser of (A) the product of (i) 78.60% and (ii)
the aggregate Stated Principal  Balance of the Mortgage Loans as of the last day
of the related Due Period

                                       13
<PAGE>

(after giving  effect to scheduled  payments of principal due during the related
Due Period, to the extent received or advanced,  and unscheduled  collections of
principal  received during the related  Prepayment Period) and (B) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after  giving  effect to scheduled  payments of principal due during
the related Due Period,  to the extent  received or  advanced,  and  unscheduled
collections of principal  received during the related  Prepayment  Period) minus
the Overcollateralization Floor.

      "Class M-4 Certificate": Any one of the Class M-4 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-7,  representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class M-4 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such  Distribution  Date),  (ii) the aggregate  Certificate  Principal
Balance  of  the  Class  M-1   Certificates   (after  taking  into  account  the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date),  (iii) the Certificate  Principal  Balance of the Class M-2  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-2  Principal
Distribution Amount on such Distribution  Date), (iv) the Certificate  Principal
Balance  of  the  Class  M-3   Certificates   (after  taking  into  account  the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date) and (v) the Certificate  Principal  Balance of the Class M-4  Certificates
immediately  prior to such  Distribution  Date  over (y) the  lesser  of (A) the
product of (i) 81.70% and (ii) the  aggregate  Stated  Principal  Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to  scheduled  payments of principal  due during the related Due Period,  to the
extent received or advanced,  and unscheduled  collections of principal received
during the related  Prepayment  Period) and (B) the aggregate  Stated  Principal
Balance  of the  Mortgage  Loans as of the last day of the  related  Due  Period
(after giving  effect to scheduled  payments of principal due during the related
Due Period, to the extent received or advanced,  and unscheduled  collections of
principal   received   during  the   related   Prepayment   Period)   minus  the
Overcollateralization Floor.

      "Class M-5 Certificate": Any one of the Class M-5 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-8,  representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class M-5 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such  Distribution  Date),  (ii) the aggregate  Certificate  Principal
Balance  of  the  Class  M-1   Certificates   (after  taking  into  account  the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date),  (iii) the Certificate  Principal  Balance of the Class M-2  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-2  Principal
Distribution Amount on such Distribution  Date), (iv) the Certificate  Principal
Balance  of  the  Class  M-3   Certificates   (after  taking  into  account  the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date),  (v) the  Certificate  Principal  Balance  of the Class M-4  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-4  Principal
Distribution  Amount  on  such  Distribution  Date)  and  (vi)  the  Certificate
Principal  Balance  of the  Class  M-5  Certificates  immediately  prior to such
Distribution  Date over (y) the lesser of (A) the product of (i) 84.60% and (ii)
the aggregate Stated Principal  Balance of the Mortgage Loans as of

                                       14
<PAGE>

the last day of the  related  Due  Period  (after  giving  effect  to  scheduled
payments of principal due during the related Due Period,  to the extent received
or  advanced,  and  unscheduled  collections  of principal  received  during the
related Prepayment Period) and (B) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to  scheduled  payments of principal  due during the related Due Period,  to the
extent received or advanced,  and unscheduled  collections of principal received
during the related Prepayment Period) minus the Overcollateralization Floor.

      "Class M-6 Certificate": Any one of the Class M-6 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-9,  representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class M-6 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such  Distribution  Date),  (ii) the aggregate  Certificate  Principal
Balance  of  the  Class  M-1   Certificates   (after  taking  into  account  the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date),  (iii) the Certificate  Principal  Balance of the Class M-2  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-2  Principal
Distribution Amount on such Distribution  Date), (iv) the Certificate  Principal
Balance  of  the  Class  M-3   Certificates   (after  taking  into  account  the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date),  (v) the  Certificate  Principal  Balance  of the Class M-4  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-4  Principal
Distribution Amount on such Distribution  Date), (vi) the Certificate  Principal
Balance  of  the  Class  M-5   Certificates   (after  taking  into  account  the
distribution of the Class M-5 Principal Distribution Amount on such Distribution
Date) and (vii) the Certificate  Principal Balance of the Class M-6 Certificates
immediately  prior to such  Distribution  Date  over (y) the  lesser  of (A) the
product of (i) 87.50% and (ii) the  aggregate  Stated  Principal  Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to  scheduled  payments of principal  due during the related Due Period,  to the
extent received or advanced,  and unscheduled  collections of principal received
during the related  Prepayment  Period) and (B) the aggregate  Stated  Principal
Balance  of the  Mortgage  Loans as of the last day of the  related  Due  Period
(after giving  effect to scheduled  payments of principal due during the related
Due Period, to the extent received or advanced,  and unscheduled  collections of
principal   received   during  the   related   Prepayment   Period)   minus  the
Overcollateralization Floor.

      "Class M-7 Certificate": Any one of the Class M-6 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-10, representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class M-7 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such  Distribution  Date),  (ii) the aggregate  Certificate  Principal
Balance  of  the  Class  M-1   Certificates   (after  taking  into  account  the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date), (iii) the

                                       15
<PAGE>

Certificate  Principal Balance of the Class M-2 Certificates  (after taking into
account the distribution of the Class M-2 Principal  Distribution Amount on such
Distribution  Date),  (iv) the  Certificate  Principal  Balance of the Class M-3
Certificates  (after  taking  into  account  the  distribution  of the Class M-3
Principal  Distribution  Amount on such Distribution  Date), (v) the Certificate
Principal  Balance of the Class M-4 Certificates  (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date),  (vi) the  Certificate  Principal  Balance of the Class M-5  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-5  Principal
Distribution Amount on such Distribution Date), (vii) the Certificate  Principal
Balance  of  the  Class  M-6   Certificates   (after  taking  into  account  the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date) and (viii) the Certificate Principal Balance of the Class M-7 Certificates
immediately  prior to such  Distribution  Date  over (y) the  lesser  of (A) the
product of (i) 89.90% and (ii) the  aggregate  Stated  Principal  Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to  scheduled  payments of principal  due during the related Due Period,  to the
extent received or advanced,  and unscheduled  collections of principal received
during the related  Prepayment  Period) and (B) the aggregate  Stated  Principal
Balance  of the  Mortgage  Loans as of the last day of the  related  Due  Period
(after giving  effect to scheduled  payments of principal due during the related
Due Period, to the extent received or advanced,  and unscheduled  collections of
principal   received   during  the   related   Prepayment   Period)   minus  the
Overcollateralization Floor.

      "Class M-8 Certificate": Any one of the Class M-6 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-11, representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class M-8 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such  Distribution  Date),  (ii) the aggregate  Certificate  Principal
Balance  of  the  Class  M-1   Certificates   (after  taking  into  account  the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date),  (iii) the Certificate  Principal  Balance of the Class M-2  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-2  Principal
Distribution Amount on such Distribution  Date), (iv) the Certificate  Principal
Balance  of  the  Class  M-3   Certificates   (after  taking  into  account  the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date),  (v) the  Certificate  Principal  Balance  of the Class M-4  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-4  Principal
Distribution Amount on such Distribution  Date), (vi) the Certificate  Principal
Balance  of  the  Class  M-5   Certificates   (after  taking  into  account  the
distribution of the Class M-5 Principal Distribution Amount on such Distribution
Date),  (vii) the Certificate  Principal  Balance of the Class M-6  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-6  Principal
Distribution Amount on such Distribution Date), (viii) the Certificate Principal
Balance  of  the  Class  M-7   Certificates   (after  taking  into  account  the
distribution of the Class M-7 Principal Distribution Amount on such Distribution
Date) and (ix) the Certificate  Principal  Balance of the Class M-8 Certificates
immediately  prior to such  Distribution  Date  over (y) the  lesser  of (A) the
product of (i) 92.00% and (ii) the  aggregate  Stated  Principal  Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to  scheduled  payments of principal  due during the related Due Period,  to the
extent received or advanced,  and unscheduled  collections of principal received

                                       16
<PAGE>

during the related  Prepayment  Period) and (B) the aggregate  Stated  Principal
Balance  of the  Mortgage  Loans as of the last day of the  related  Due  Period
(after giving  effect to scheduled  payments of principal due during the related
Due Period, to the extent received or advanced,  and unscheduled  collections of
principal   received   during  the   related   Prepayment   Period)   minus  the
Overcollateralization Floor.

      "Class M-9 Certificate": Any one of the Class M-6 Certificates executed by
the Trustee,  and  authenticated  and  delivered by the  Certificate  Registrar,
substantially in the form annexed hereto as Exhibit A-12, representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 2.

      "Class M-9 Principal  Distribution  Amount":  The excess of (x) the sum of
(i) the  aggregate  Certificate  Principal  Balance of the Class A  Certificates
(after taking into account the distribution of the Senior Principal Distribution
Amount on such  Distribution  Date),  (ii) the aggregate  Certificate  Principal
Balance  of  the  Class  M-1   Certificates   (after  taking  into  account  the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date),  (iii) the Certificate  Principal  Balance of the Class M-2  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-2  Principal
Distribution Amount on such Distribution  Date), (iv) the Certificate  Principal
Balance  of  the  Class  M-3   Certificates   (after  taking  into  account  the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date),  (v) the  Certificate  Principal  Balance  of the Class M-4  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-4  Principal
Distribution Amount on such Distribution  Date), (vi) the Certificate  Principal
Balance  of  the  Class  M-5   Certificates   (after  taking  into  account  the
distribution of the Class M-5 Principal Distribution Amount on such Distribution
Date),  (vii) the Certificate  Principal  Balance of the Class M-6  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-6  Principal
Distribution Amount on such Distribution Date), (viii) the Certificate Principal
Balance  of  the  Class  M-7   Certificates   (after  taking  into  account  the
distribution of the Class M-7 Principal Distribution Amount on such Distribution
Date),  (ix) the  Certificate  Principal  Balance of the Class M-8  Certificates
(after  taking  into  account  the  distribution  of  the  Class  M-8  Principal
Distribution Amount on such Distribution Date) and (x) the Certificate Principal
Balance of the Class M-9  Certificates  immediately  prior to such  Distribution
Date over (y) the lesser of (A) the product of (i) 94.00% and (ii) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after  giving  effect to scheduled  payments of principal due during
the related Due Period,  to the extent  received or  advanced,  and  unscheduled
collections of principal  received during the related Prepayment Period) and (B)
the aggregate Stated Principal  Balance of the Mortgage Loans as of the last day
of the  related  Due  Period  (after  giving  effect to  scheduled  payments  of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled  collections of principal received during the related Prepayment
Period) minus the Overcollateralization Floor.

      "Class P Certificate": Any one of the Class P Certificates executed by the
Trustee,   and  authenticated  and  delivered  by  the  Certificate   Registrar,
substantially in the form annexed hereto as Exhibit A-16, representing the right
to  distributions  as set forth  herein and  therein  and  evidencing  a regular
interest in REMIC 4.

                                       17
<PAGE>

      "Class P Interest":  An uncertificated  interest in the Trust Fund held by
the Trustee on behalf of the Holders of the Class P  Certificates,  evidencing a
Regular Interest in REMIC 2 for purposes of the REMIC Provisions.

      "Class R  Certificate":  The Class R Certificate  executed by the Trustee,
and authenticated and delivered by the Certificate  Registrar,  substantially in
the form annexed  hereto as Exhibit  A-17 and  evidencing  the  ownership of the
Class R-1 Interest and the Class R-2 Interest.

      "Class  R-X  Certificate":  The  Class  R-X  Certificate  executed  by the
Trustee,   and  authenticated  and  delivered  by  the  Certificate   Registrar,
substantially  in the form  annexed  hereto as Exhibit A-18 and  evidencing  the
ownership of the Class R-3 Interest and the Class R-4 Interest.

      "Class R-1 Interest": The uncertificated Residual Interest in REMIC 1.

      "Class R-2 Interest": The uncertificated Residual Interest in REMIC 2.

      "Class R-3 Interest": The uncertificated Residual Interest in REMIC 3.

      "Class R-4 Interest": The uncertificated Residual Interest in REMIC 4.

      "Close of  Business":  As used herein,  with respect to any Business  Day,
5:00 p.m. (New York time).

      "Closing Date": July 29, 2004.

      "Code": The Internal Revenue Code of 1986, as amended.

      "Collection  Account":  The account or accounts  created and maintained by
the Servicer  pursuant to Section 3.10(a),  which shall be entitled "Centex Home
Equity  Company,  LLC,  for  JPMorgan  Chase  Bank,  as  Trustee,  in trust  for
registered Holders of CHEC Loan Trust 2004-1, Asset-Backed Certificates,  Series
2004-1," which account must be an Eligible Account.

      "Compensating Interest": As defined in Section 3.24 hereof.

      "Corporate  Trust  Office":  The principal  corporate  trust office of the
Trustee  at which  at any  particular  time  its  corporate  trust  business  in
connection with this Agreement shall be  administered,  which office at the date
of the execution of this  instrument is located at 4 New York Plaza,  6th Floor,
New York, New York 10004-2477,  Attention:  Institutional Trust  Services/Global
Debt:  CHEC Loan  Trust-2004-1,  or at such  other  address as the  Trustee  may
designate from time to time by notice to the Certificateholders,  the Depositor,
the Servicer and the Seller.

      "Corresponding Certificate": With respect to each REMIC 1 Regular Interest
set forth below, the  corresponding  Regular  Certificate set forth in the table
below:

                                       18
<PAGE>

        REMIC 1 REGULAR INTEREST                  Regular Certificate
   -------------------------------------------------------------------------
                  LTA1                                 Class A-1
                  LTA2                                 Class A-2
                  LTA3                                 Class A-3
                  LTM1                                 Class M-1
                  LTM2                                 Class M-2
                  LTM3                                 Class M-3
                  LTM4                                 Class M-4
                  LTM5                                 Class M-5
                  LTM6                                 Class M-6
                  LTM7                                 Class M-7
                  LTM8                                 Class M-8
                  LTM9                                 Class M-9
                  LTB1                                 Class B-1
                  LTB2                                 Class B-2
                  LTP                                   Class P

      "Credit Enhancement Percentage": For any Distribution Date, the percentage
equivalent  of a fraction,  the  numerator of which is the sum of the  aggregate
Certificate  Principal  Balances  of the  Mezzanine  Certificates,  the  Class B
Certificates  and the Class C Certificates  and the  denominator of which is the
aggregate  Stated Principal  Balance of the Mortgage Loans,  calculated prior to
taking into account payments of principal on the Mortgage Loans and distribution
of the Principal  Distribution  Amount to the Holders of the  Certificates  then
entitled to distributions of principal on such Distribution Date.

      "Custodian": JPMorgan Trust Company, National Association, as custodian of
the Mortgage Files, or any successor thereto.

      "Cut-off Date": With respect to each Original Mortgage Loan, July 1, 2004.

      "Cut-off Date Principal  Balance":  With respect to any Mortgage Loan, the
unpaid Stated Principal  Balance thereof as of the Cut-off Date of such Mortgage
Loan (or as of the applicable date of  substitution  with respect to a Qualified
Substitute  Mortgage Loan),  after giving effect to scheduled payments due on or
before the Cut-off Date, whether or not received.

      "Debt Service  Reduction":  With respect to any Mortgage Loan, a reduction
in the scheduled  Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code,  except such a reduction
resulting from a Deficient Valuation.

      "Deficient  Valuation":  With respect to any Mortgage Loan, a valuation of
the related Mortgaged Property by a court of competent jurisdiction in an amount
less than the then outstanding  Stated  Principal  Balance of the Mortgage Loan,
which valuation results from a proceeding initiated under the Bankruptcy Code.

      "Definitive Certificates": As defined in Section 5.02(c) hereof.

      "Deleted Mortgage Loan": A Mortgage Loan replaced or to be replaced by one
or more Qualified Substitute Mortgage Loans.

                                       19
<PAGE>

      "Delinquency  Percentage":  For  any  Distribution  Date,  the  percentage
obtained by dividing  (x) the  aggregate  Stated  Principal  Balance of Mortgage
Loans that are  Delinquent 60 days or more,  that are in foreclosure or that are
REO  Properties by (y) the aggregate  Stated  Principal  Balance of the Mortgage
Loans, in each case, as of the last day of the previous calendar month.

      "Delinquent":  A Mortgage Loan is  "Delinquent" if any payment due thereon
is not made by the Mortgagor by the close of business on the related Due Date. A
Mortgage Loan is "30 days  Delinquent"  if such payment has not been received by
the  close  of  business  on the  corresponding  day of  the  month  immediately
succeeding  the month in which  such  payment  was due,  or, if there is no such
corresponding  day (e.g., as when a 30-day month follows a 31-day month in which
a payment  was due on the 31st day of such  month)  then on the last day of such
immediately  succeeding  month.  Similarly  for "60 days  Delinquent,"  "90 days
Delinquent" and so on.

      "Depositor":  Financial Asset Securities Corp., a Delaware corporation, or
any successor in interest.

      "Depository":  The  initial  Depository  shall  be  The  Depository  Trust
Company, whose nominee is Cede & Co., or any other organization  registered as a
"clearing  agency"  pursuant to Section 17A of the  Securities  Exchange  Act of
1934, as amended. The Depository shall initially be the registered Holder of the
Book-Entry  Certificates.  The  Depository  shall at all  times  be a  "clearing
corporation"  as defined in Section  8-102(3) of the Uniform  Commercial Code of
the State of New York.  Upon request,  the  Depository  may also be  Clearstream
Banking Luxembourg and the Euroclear System.

      "Depository  Participant":  A  broker,  dealer,  bank or  other  financial
institution  or other  person  for whom from time to time a  Depository  effects
book-entry transfers and pledges of securities deposited with the Depository.

      "Determination  Date": With respect to any Distribution Date, the 15th day
of the calendar  month in which such  Distribution  Date occurs or, if such 15th
day is not a Business Day, the Business Day immediately preceding such 15th day.

      "Directly  Operate":  With respect to any REO Property,  the furnishing or
rendering of services to the tenants  thereof,  the  management  or operation of
such REO  Property,  the  holding  of such REO  Property  primarily  for sale to
customers,  the performance of any construction  work thereon or any use of such
REO Property in a trade or business conducted by the REMIC other than through an
Independent Contractor;  provided, however, that the Trustee (or the Servicer on
behalf of the  Trustee)  shall not be  considered  to  Directly  Operate  an REO
Property  solely  because the Trustee (or the Servicer on behalf of the Trustee)
establishes rental terms,  chooses tenants,  enters into or renews leases, deals
with  taxes  and  insurance,  or  makes  decisions  as  to  repairs  or  capital
expenditures with respect to such REO Property.

      "Disqualified  Organization":  A "disqualified organization" under Section
860E of the Code, which as of the Closing Date is any of: (i) the United States,
any  state  or  political  subdivision  thereof,  any  foreign  government,  any
international  organization,  or any  agency  or  instrumentality  of any of the
foregoing, (ii) any organization (other than a cooperative described in

                                       20
<PAGE>

Section  521 of the Code)  which is exempt  from the tax imposed by Chapter 1 of
the Code unless such  organization  is subject to the tax imposed by Section 511
of the Code,  (iii) any organization  described in Section  1381(a)(2)(C) of the
Code, (iv) an "electing large partnership"  within the meaning of Section 775 of
the Code or (v) any other  Person so  designated  by the  Trustee  based upon an
Opinion of Counsel provided by nationally recognized counsel to the Trustee that
the holding of an ownership  interest in a Residual  Certificate  by such Person
may cause any REMIC formed hereunder or any Person having an ownership  interest
in any Class of Certificates (other than such Person) to incur liability for any
federal tax imposed  under the Code that would not  otherwise be imposed but for
the  transfer of an  ownership  interest  in the  Residual  Certificate  to such
Person.  A corporation will not be treated as an  instrumentality  of the United
States  or of  any  state  or  political  subdivision  thereof,  if  all  of its
activities  are subject to tax and a majority of its board of  directors  is not
selected  by  a  governmental  unit.  The  term  "United  States",  "state"  and
"international  organizations" shall have the meanings set forth in Section 7701
of the Code.

      "Distribution   Account":  The  trust  account  or  accounts  created  and
maintained  by the Trustee  pursuant to Section  3.10(b) which shall be entitled
"Distribution  Account,  JPMorgan  Chase  Bank,  as  Trustee,  in trust  for the
registered   Certificateholders   of  CHEC  Loan  Trust   2004-1,   Asset-Backed
Certificates, Series 2004-1" and which must be an Eligible Account.

      "Distribution  Date":  The 25th day of any calendar month, or if such 25th
day is not a Business Day, the Business Day immediately following such 25th day,
commencing in August 2004.

      "Due Date": With respect to each Mortgage Loan and any Distribution  Date,
the first day of the calendar  month in which such  Distribution  Date occurs on
which the Monthly Payment for such Mortgage Loan was due (or, in the case of any
Mortgage  Loan under the terms of which the Monthly  Payment  for such  Mortgage
Loan was due on a day other than the first day of the calendar month in which

                                       21
<PAGE>

such  Distribution  Date occurs,  the day during the related Due Period on which
such Monthly Payment was due), exclusive of any days of grace.

      "Due Period": With respect to any Distribution Date, the period commencing
on the second day of the month  preceding  the month in which such  Distribution
Date occurs and ending on the first day of the month in which such  Distribution
Date occurs.

      "Eligible  Account":  Any of (i) an account or accounts  maintained with a
federal  or  state  chartered  depository   institution  or  trust  company  the
short-term  unsecured debt obligations of which (or, in the case of a depository
institution  or trust  company  that is the  principal  subsidiary  of a holding
company,  the short-term unsecured debt obligations of such holding company) are
rated A-1 by S&P and P-1 by Moody's  (or  comparable  ratings if S&P and Moody's
are not the  Rating  Agencies)  at the time  any  amounts  are  held on  deposit
therein,  (ii) an account or accounts the deposits in which are fully insured by
the FDIC (to the limits established by such corporation), the uninsured deposits
in which account are otherwise  secured such that, as evidenced by an Opinion of
Counsel   delivered   to  the   Trustee   and  to  each   Rating   Agency,   the
Certificateholders  will have a claim with  respect to the funds in such account
or a perfected first priority  security  interest against such collateral (which
shall be limited to Permitted  Investments) securing such funds that is superior
to claims of any other  depositors  or creditors of the  depository  institution
with  which such  account  is  maintained,  (iii) a trust  account  or  accounts
maintained with the trust department of a federal or

                                       21
<PAGE>

state chartered  depository  institution,  national banking association or trust
company acting in its fiduciary capacity or (iv) an account otherwise acceptable
to each Rating  Agency  without  reduction or  withdrawal  of their then current
ratings of the  Certificates as evidenced by a letter from each Rating Agency to
the Trustee. Eligible Accounts may bear interest.

      "ERISA": The Employee Retirement Income Security Act of 1974, as amended.

      "Escrow Account":  The account or accounts created and maintained pursuant
to Section 3.09.

      "Escrow  Payments":   The  amounts   constituting   ground  rents,  taxes,
assessments,  water rates, fire and hazard insurance premiums and other payments
required to be  escrowed by the  Mortgagor  with the  mortgagee  pursuant to any
Mortgage Loan.

      "Excess  Overcollateralized  Amount":  With respect to the  Floating  Rate
Certificates  and  any  Distribution  Date,  the  excess,  if  any,  of (i)  the
Overcollateralized  Amount for such Distribution Date, assuming that 100% of the
Principal   Remittance  Amount  is  applied  as  a  principal  payment  on  such
Distribution  Date over (ii) the  Overcollateralization  Target  Amount for such
Distribution Date.

      "Extra Principal  Distribution  Amount":  With respect to any Distribution
Date, the lesser of (x) the Monthly Interest  Distributable Amount distributable
on the Class C  Certificates  on such  Distribution  Date as reduced by Realized
Losses  allocated  thereto with respect to such  Distribution  Date  pursuant to
Section  4.08  and (y) the  Overcollateralization  Deficiency  Amount  for  such
Distribution Date.

      "Fannie  Mae":  Federal  National  Mortgage  Association  or any successor
thereto.

      "FDIC": Federal Deposit Insurance Corporation or any successor thereto.

      "Final  Recovery  Determination":  With respect to any defaulted  Mortgage
Loan or any REO Property  (other than a Mortgage Loan or REO Property  purchased
by the  Originator  or the Servicer  pursuant to or as  contemplated  by Section
2.03, 3.16(c) or 10.01), a determination made by the Servicer that all Insurance
Proceeds,  Net Liquidation  Proceeds and other payments or recoveries  which the
Servicer,  in  its  reasonable  good  faith  judgment,  expects  to  be  finally
recoverable  in respect  thereof  have been so  recovered.  The  Servicer  shall
maintain  records,  prepared  by a  Servicing  Officer,  of each Final  Recovery
Determination made thereby.

      "Fixed-Rate  Mortgage  Loan":  A first or second lien  Mortgage Loan which
provides for a fixed Mortgage Rate payable with respect thereto.  The Fixed-Rate
Mortgage Loans are identified as such on the Mortgage Loan Schedule.

      "Floating  Rate  Certificates":  The Class A  Certificates,  the Mezzanine
Certificates and the Class B Certificates.

                                       22
<PAGE>

      "Formula  Rate":  For  any   Distribution   Date  and  the  Floating  Rate
Certificates, the lesser of (i) the Base Rate and (ii) the Maximum Cap Rate.

      "Freddie  Mac":  The  Federal  Home  Loan  Mortgage  Corporation,  or  any
successor thereto.

      "Gross Margin":  With respect to each  Adjustable-Rate  Mortgage Loan, the
fixed  percentage  set forth in the related  Mortgage  Note that is added to the
Index  on each  Adjustment  Date in  accordance  with the  terms of the  related
Mortgage  Note used to  determine  the  Mortgage  Rate for such  Adjustable-Rate
Mortgage Loan.

      "Highest  Priority":  As of  any  date  of  determination,  the  Class  of
Mezzanine   Certificates  or  Class  B  Certificates  then  outstanding  with  a
Certificate  Principal  Balance greater than zero, with the highest priority for
payments  pursuant  to  Section  4.01,  in the  following  order  of  decreasing
priority:  Class M-1,  Class M-2,  Class M-3,  Class M-4,  Class M-5, Class M-6,
Class M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Certificates.

      "Independent":  When used with respect to any specified  Person,  any such
Person who (a) is in fact  independent of the Depositor,  the Servicer and their
respective Affiliates, (b) does not have any direct financial interest in or any
material  indirect  financial  interest in the  Depositor or the Servicer or any
Affiliate  thereof,  and (c) is not connected with the Depositor or the Servicer
or  any  Affiliate  thereof  as an  officer,  employee,  promoter,  underwriter,
trustee,  partner,  director or Person performing similar  functions;  provided,
however,  that a Person shall not fail to be Independent of the Depositor or the
Servicer or any Affiliate  thereof  merely because such Person is the beneficial
owner of 1% or less of any class of  securities  issued by the  Depositor or the
Servicer or any Affiliate thereof, as the case may be.

      "Independent Contractor":  Either (i) any Person (other than the Servicer)
that  would be an  "independent  contractor"  with  respect to any of the REMICs
created  hereunder  within the meaning of Section  856(d)(3) of the Code if such
REMIC were a real estate  investment  trust (except that the ownership tests set
forth in that  section  shall be  considered  to be met by any Person that owns,
directly or indirectly,  35% or more of any Class of  Certificates),  so long as
each such REMIC does not  receive  or derive  any  income  from such  Person and
provided  that the  relationship  between such Person and such REMIC is at arm's
length, all within the meaning of Treasury Regulation Section 1.856-4(b)(5),  or
(ii) any other Person  (including  the  Servicer) if the Trustee has received an
Opinion of Counsel to the effect that the taking of any action in respect of any
REO Property by such Person,  subject to any conditions therein specified,  that
is otherwise herein  contemplated to be taken by an Independent  Contractor will
not cause such REO Property to cease to qualify as "foreclosure property" within
the meaning of Section 860G(a)(8) of the Code (determined  without regard to the
exception  applicable for purposes of Section 860D(a) of the Code), or cause any
income realized in respect of such REO Property to fail to qualify as Rents from
Real Property.

      "Index":  With  respect  to each  Adjustable-Rate  Mortgage  Loan and with
respect to each related  Adjustment  Date, the index as specified in the related
Mortgage Note.

                                       23
<PAGE>

      "Initial  Certificate  Principal  Balance":  With  respect to any  Regular
Certificate,  the amount designated "Initial  Certificate  Principal Balance" on
the face thereof.

      "Insurance Proceeds": Proceeds of any title policy, hazard policy or other
insurance  policy  covering a Mortgage  Loan,  to the extent such  proceeds  are
received by the  Servicer  and are not to be applied to the  restoration  of the
related  Mortgaged  Property or released to the Mortgagor in accordance with the
procedures  that the Servicer would follow in servicing  mortgage loans held for
its own account,  subject to the terms and  conditions  of the related  Mortgage
Note and Mortgage.

      "Interest   Determination   Date":  With  respect  to  the  Floating  Rate
Certificates  and each Accrual  Period,  the second LIBOR Business Day preceding
the commencement of such Accrual Period.

      "Interest Remittance Amount":  With respect to any Distribution Date, that
portion  of the  Available  Funds for such  Distribution  Date  attributable  to
interest received or advanced with respect to the Mortgage Loans.

      "Late  Collections":  With  respect  to any  Mortgage  Loan,  all  amounts
received subsequent to the Determination Date immediately  following any related
Due  Period,  whether as late  payments  of  Monthly  Payments  or as  Insurance
Proceeds,  Liquidation  Proceeds or otherwise,  which represent late payments or
collections of principal and/or interest due (without regard to any acceleration
of payments  under the related  Mortgage and Mortgage  Note) but delinquent on a
contractual basis for such Due Period and not previously recovered.

      "LIBOR":  With respect to each Accrual Period,  the rate determined by the
Trustee on the related  Interest  Determination  Date on the basis of the London
interbank offered rate for one-month United States dollar deposits, as such rate
appears on the  Telerate  Page  3750,  as of 11:00  a.m.  (London  time) on such
Interest Determination Date. If such rate does not appear on Telerate Page 3750,
the rate for such Interest Determination Date will be determined on the basis of
the offered  rates of the  Reference  Banks for  one-month  United States dollar
deposits,  as of 11:00 a.m. (London time) on such Interest  Determination  Date.
The Trustee will request the  principal  London  office of each of the Reference
Banks to provide a quotation of its rate. On such Interest  Determination  Date,
LIBOR for the  related  Accrual  Period  will be  established  by the Trustee as
follows:

            (i) If on such  Interest  Determination  Date two or more  Reference
      Banks  provide  such  offered  quotations,  LIBOR for the related  Accrual
      Period shall be the arithmetic  mean of such offered  quotations  (rounded
      upwards if necessary to the nearest whole multiple of 1/16 of 1%); and

            (ii) If on such Interest Determination Date fewer than two Reference
      Banks  provide  such  offered  quotations,  LIBOR for the related  Accrual
      Period  shall be the  higher of (i) LIBOR as  determined  on the  previous
      Interest Determination Date and (ii) the Reserve Interest Rate.

      "LIBOR  Business Day":  Any day on which banks in London,  England and The
City of New York are open and conducting  transactions  in foreign  currency and
exchange.

                                       24
<PAGE>

      "Liquidated Mortgage Loan": As to any Distribution Date, any Mortgage Loan
in respect of which the Servicer has determined,  in its reasonable judgment, as
of the end of the related Prepayment Period, that all Liquidation Proceeds which
it expects to recover with respect to the  liquidation  of the Mortgage  Loan or
disposition of the related REO Property have been recovered.

      "Liquidation  Event":  With  respect  to  any  Mortgage  Loan,  any of the
following events:  (i) such Mortgage Loan is paid in full, (ii) a Final Recovery
Determination  is made as to such  Mortgage  Loan or (iii) such Mortgage Loan is
removed from the Trust Fund by reason of its being  purchased,  sold or replaced
pursuant  to or as  contemplated  by Section  2.03,  Section  3.16(c) or Section
10.01. With respect to any REO Property,  either of the following events:  (i) a
Final  Recovery  Determination  is made as to such REO Property or (ii) such REO
Property is removed from the Trust Fund by reason of its being sold or purchased
pursuant to Section 3.23 or Section 10.01.

      "Liquidation Proceeds": The amount (other than amounts received in respect
of the rental of any REO  Property  prior to REO  Disposition)  received  by the
Servicer  in  connection  with (i) the  taking  of all or a part of a  Mortgaged
Property by exercise of the power of eminent  domain or  condemnation,  (ii) the
liquidation  of  a  defaulted  Mortgage  Loan  by  means  of a  trustee's  sale,
foreclosure sale or otherwise or (iii) the repurchase, substitution or sale of a
Mortgage Loan or an REO Property pursuant to or as contemplated by Section 2.03,
Section 3.16(c), Section 3.23 or Section 10.01.

      "Loan-to-Value  Ratio":  As of any date and as to any Mortgage  Loan,  the
fraction,  expressed  as a  percentage,  the  numerator  of which is the  Stated
Principal Balance of the Mortgage Loan and the denominator of which is the Value
of the related Mortgaged Property.

      "Losses": As defined in Section 9.03.

      "Lost Note  Affidavit":  With respect to any Mortgage Loan as to which the
original Mortgage Note has been permanently lost, misplaced or destroyed and has
not been  replaced,  an affidavit from the Seller  certifying  that the original
Mortgage Note has been lost, misplaced or destroyed (together with a copy of the
related  Mortgage  Note) and  indemnifying  the Trust against any loss,  cost or
liability  resulting  from the failure to deliver the original  Mortgage Note in
the form of Exhibit H hereto.

      "Majority  Certificateholders":  The Holders of Certificates evidencing at
least 51% of the Voting Rights.

      "Marker Rate":  With respect to the Class C Interest and any  Distribution
Date,  a per  annum  rate  equal to two (2) times the  weighted  average  of the
Uncertificated  REMIC 1  Pass-Through  Rates for REMIC 1 Regular  Interest LTA1,
REMIC 1 Regular  Interest LTA2,  REMIC 1 Regular  Interest LTA3, REMIC 1 Regular
Interest LTM1,  REMIC 1 Regular  Interest LTM2,  REMIC 1 Regular  Interest LTM3,
REMIC 1 Regular  Interest LTM4,  REMIC 1 Regular  Interest LTM5, REMIC 1 Regular
Interest LTM6,  REMIC 1 Regular  Interest LTM7,  REMIC 1 Regular  Interest LTM8,
REMIC 1 Regular  Interest LTM9,  REMIC 1 Regular  Interest LTB1, REMIC 1 Regular
Interest  LTB2 and REMIC 1  Regular  Interest  LTZZ,  with the rate on each such
REMIC 1 Regular Interest (other than REMIC 1 Regular Interest LTZZ) subject to a
cap  equal to the  lesser  of (i)

                                       25
<PAGE>

LIBOR plus the Certificate Margin for the Corresponding Certificate and (ii) the
related Net WAC Rate for the purpose of this  calculation;  and with the rate on
REMIC 1 Regular  Interest  LTZZ subject to a cap of zero for the purpose of this
calculation;  provided,  however,  that for this  purpose,  calculations  of the
Uncertificated  REMIC 1  Pass-Through  Rate and the related caps with respect to
each such REMIC 1 Regular  Interest  (other than REMIC 1 Regular  Interest LTZZ)
shall be multiplied  by a fraction,  the numerator of which is the actual number
of days elapsed in the related  Accrual  Period and the  denominator of which is
30.

      "Master  Agreement":   The  Master  Mortgage  Loan  Purchase  and  Interim
Servicing  Agreement,  dated June 1, 2004, among Harwood Street Funding II, LLC,
the Originator and the Seller.

      "Maximum  Cap  Rate":  For any  Distribution  Date and the  Floating  Rate
Certificates,  a per annum rate equal to the product of (x) the weighted average
of the Adjusted Net Maximum  Mortgage Rates of the Mortgage  Loans,  weighted on
the basis of the outstanding  Stated Principal Balances of the Mortgage Loans as
of the first day of the month preceding the month of such  Distribution Date and
(y) a fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period.

      "Maximum Uncertificated Accrued Interest Deferral Amount": With respect to
any Distribution  Date, the excess of (a) accrued interest at the Uncertificated
REMIC 1 Pass-Through  Rate applicable to REMIC 1 Regular  Interest LTZZ for such
Distribution Date on a balance equal to the Uncertificated  Principal Balance of
REMIC 1 Regular Interest LTZZ minus the REMIC 1 Overcollateralization Amount, in
each case for such  Distribution  Date,  over (b) the sum of the  Uncertificated
Accrued  Interest on REMIC 1 Regular  Interest  LTA1,  REMIC 1 Regular  Interest
LTA2,  REMIC 1 Regular  Interest LTA3,  REMIC 1 Regular  Interest LTM1,  REMIC 1
Regular  Interest LTM2,  REMIC 1 Regular Interest LTM3, REMIC 1 Regular Interest
LTM4,  REMIC 1 Regular  Interest LTM5,  REMIC 1 Regular  Interest LTM6,  REMIC 1
Regular  Interest LTM7,  REMIC 1 Regular Interest LTM8, REMIC 1 Regular Interest
LTM9,  REMIC 1 Regular  Interest LTB1 and REMIC 1 Regular Interest LTB2 with the
rate on each such REMIC 1 Regular  Interest subject to a cap equal to the lesser
of  (i)  LIBOR  plus  the  related  Certificate  Margin  for  the  Corresponding
Certificate  and  (ii)  the  related  Net  WAC  Rate  for  the  purpose  of this
calculation;  provided,  however,  that for this  purpose,  calculations  of the
Uncertificated  REMIC 1  Pass-Through  Rate and the related caps with respect to
each such  REMIC 1 Regular  Interest  shall be  multiplied  by a  fraction,  the
numerator of which is the actual  number of days elapsed in the related  Accrual
Period and the denominator of which is 30.

      "Maximum  Mortgage Rate":  With respect to each  Adjustable-Rate  Mortgage
Loan,  the  percentage  set forth in the  related  Mortgage  Note as the maximum
Mortgage Rate thereunder.

      "Mezzanine Certificate": Any Class M-1 Certificate, Class M-2 Certificate,
Class M-3 Certificate,  Class M-4 Certificate,  Class M-5 Certificate, Class M-6
Certificate,   Class  M-7  Certificate,  Class  M-8  Certificate  or  Class  M-9
Certificate.

      "Minimum  Mortgage Rate":  With respect to each  Adjustable-Rate  Mortgage
Loan,  the  percentage  set forth in the  related  Mortgage  Note as the minimum
Mortgage Rate thereunder.

                                       26
<PAGE>

      "Monthly Interest Distributable Amount": With respect to the Floating Rate
Certificates and the Class C Certificates and any Distribution  Date, the amount
of  interest   accrued  during  the  related   Accrual  Period  at  the  related
Pass-Through  Rate on the Certificate  Principal  Balance (or Notional Amount in
the case of the Class C Certificates)  of such Class  immediately  prior to such
Distribution  Date,  in  each  case,  reduced  by any  Net  Prepayment  Interest
Shortfalls  and Relief Act Interest  Shortfalls  (allocated to such  Certificate
based  on its  respective  entitlements  to  interest  irrespective  of any  Net
Prepayment  Interest  Shortfalls  and Relief Act  Interest  Shortfalls  for such
Distribution Date).

      "Monthly  Payment":  With  respect to any  Mortgage  Loan,  the  scheduled
monthly payment of principal and interest on such Mortgage Loan which is payable
by the  related  Mortgagor  from time to time under the related  Mortgage  Note,
determined:  (a) after giving effect to (i) any Deficient  Valuation and/or Debt
Service  Reduction  with respect to such Mortgage Loan and (ii) any reduction in
the amount of interest  collectible from the related  Mortgagor  pursuant to the
Relief Act; (b) without  giving effect to any extension  granted or agreed to by
the Servicer  pursuant to Section 3.07; and (c) on the assumption that all other
amounts, if any, due under such Mortgage Loan are paid when due.

      "Moody's": Moody's Investors Service, Inc., or its successor in interest.

      "Mortgage":  The mortgage,  deed of trust or other  instrument  creating a
first or second lien on, or first or second  priority  security  interest  in, a
Mortgaged Property securing a Mortgage Note.

      "Mortgage File": The mortgage  documents listed in Section 2.01 pertaining
to a particular Mortgage Loan and any additional  documents required to be added
to the Mortgage File pursuant to this Agreement.

      "Mortgage  Loan":  Each  mortgage  loan  transferred  and  assigned to the
Trustee pursuant to Section 2.01 or Section 2.03(d) as from time to time held as
a part of the Trust Fund,  the Mortgage  Loans so held being  identified  in the
Mortgage Loan Schedule.

      "Mortgage  Loan  Schedule":  As of any date,  the list of  Mortgage  Loans
included  in REMIC 1 on such date,  attached  hereto as Exhibit D. The  Mortgage
Loan  Schedule  shall be  prepared  by the  Depositor  and  shall  set forth the
following information with respect to each Mortgage Loan, as applicable:

            (1) the Mortgage Loan identifying number;

            (2) the Mortgagor's name;

            (3)  the  street  address,  state  and  zip  code  of the  Mortgaged
      Property;

            (4) a code indicating whether the Mortgaged Property was represented
      by the borrower, at the time of origination, as being owner-occupied;

                                       27
<PAGE>

            (5) the type of  Residential  Dwelling  constituting  the  Mortgaged
      Property;

            (6) the original months to maturity;

            (7) the stated  remaining  months to maturity  from the Cut-off Date
      based on the original amortization schedule;

            (8) the Loan-to-Value Ratio at origination;

            (9) the Mortgage  Rate in effect  immediately  following the Cut-off
      Date;

            (10) the date on which  the  first  Monthly  Payment  was due on the
      Mortgage Loan;

            (11) the stated maturity date;

            (12) the amount of the Monthly Payment at origination;

            (13) the  amount of the  Monthly  Payment  due on the first Due Date
      after the Cut-off Date;

            (14)  the last Due Date on  which a  Monthly  Payment  was  actually
      applied to the unpaid Stated Principal Balance;

            (15) the original principal amount of the Mortgage Loan;

            (16) the Stated  Principal  Balance of the  Mortgage  Loan as of the
      Close of Business on the Cut-off Date;

            (17) a code  indicating  the  purpose of the  Mortgage  Loan  (i.e.,
      purchase financing, rate/term refinancing, cash-out refinancing);

            (18) the Mortgage Rate at origination;

            (19)  a  code  indicating  the  documentation  program  (i.e.,  full
      documentation,   limited  income  verification,  no  income  verification,
      alternative income verification);

            (20) the risk grade;

            (21) the Value of the Mortgaged Property;

            (22) the sale price of the Mortgaged Property, if applicable;

            (23) the actual unpaid Principal  Balance of the Mortgage Loan as of
      the Cut-off Date;

            (24) the type and term of the related Prepayment Charge;

                                       28
<PAGE>

            (25) with respect to any Adjustable-Rate Mortgage Loan, the rounding
      code,  the minimum  Mortgage  Rate,  the maximum  Mortgage Rate, the Gross
      Margin, the next Adjustment Date and the Periodic Rate Cap; and

            (26) the program code.

      The Mortgage Loan Schedule shall set forth the following information, with
respect to the Mortgage Loans as of the Cut-off Date: (1) the number of Mortgage
Loans  (separately  identifying the number of Fixed-Rate  Mortgage Loans and the
number of  Adjustable-Rate  Mortgage  Loans);  (2) the current Stated  Principal
Balance of the Mortgage  Loans;  (3) the weighted  average  Mortgage Rate of the
Mortgage  Loans and (4) the weighted  average  remaining term to maturity of the
Mortgage Loans. The Mortgage Loan Schedule shall be amended from time to time by
the Servicer in accordance with the provisions of this  Agreement.  With respect
to any  Qualified  Substitute  Mortgage  Loan,  Cut-off  Date shall refer to the
related  Cut-off Date for such Mortgage Loan,  determined in accordance with the
definition of Cut-off Date herein.

      "Mortgage  Note":  The  original   executed  note  or  other  evidence  of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

      "Mortgage Pool": The pool of Mortgage Loans,  identified on Exhibit D from
time to time, and any REO Properties acquired in respect thereof.

      "Mortgage Rate":  With respect to each Fixed-Rate  Mortgage Loan, the rate
set forth in the related  Mortgage  Note.  With respect to each  Adjustable-Rate
Mortgage Loan,  the annual rate at which interest  accrues on such Mortgage Loan
from time to time in  accordance  with the  provisions  of the related  Mortgage
Note, which rate (A) as of any date of determination  until the first Adjustment
Date following the Cut-off Date shall be the rate set forth in the Mortgage Loan
Schedule as the Mortgage Rate in effect  immediately  following the Cut-off Date
and (B) as of any date of determination thereafter shall be the rate as adjusted
on the most  recent  Adjustment  Date,  to equal  the sum,  rounded  to the next
highest or nearest  0.125% (as  provided in the  Mortgage  Note),  of the Index,
determined  as set forth in the related  Mortgage  Note,  plus the related Gross
Margin subject to the limitations  set forth in the related  Mortgage Note. With
respect to each Mortgage  Loan that becomes an REO  Property,  as of any date of
determination,  the annual rate  determined in accordance  with the  immediately
preceding sentence as of the date such Mortgage Loan became an REO Property.

      "Mortgaged  Property":  The underlying  property securing a Mortgage Loan,
including  any REO  Property,  consisting  of a fee simple estate in a parcel of
real property improved by a Residential Dwelling.

      "Mortgagor": The obligor on a Mortgage Note.

      "Net Liquidation  Proceeds":  With respect to any Liquidated Mortgage Loan
or any other disposition of related Mortgaged Property (including REO Property),
the  related  Liquidation  Proceeds  and  Insurance  Proceeds  net of  Advances,
Servicing Advances, Servicing Fees and any other

                                       29
<PAGE>

accrued and unpaid  servicing fees or ancillary  income received and retained in
connection with the liquidation of such Mortgage Loan or Mortgaged Property.

      "Net Monthly Excess Cashflow": With respect to each Distribution Date, the
sum of (a) any  Overcollateralization  Release Amount for such Distribution Date
and (b) the excess of (x) Available  Funds for such  Distribution  Date over (y)
the sum for such  Distribution  Date of (A) the Monthly  Interest  Distributable
Amounts for the Floating Rate  Certificates,  (B) the Unpaid Interest  Shortfall
Amounts for the Class A Certificates and (C) the Principal Remittance Amount.

      "Net Mortgage Rate": With respect to any Mortgage Loan (or the related REO
Property),  as of any date of determination,  a per annum rate of interest equal
to the then applicable  Mortgage Rate for such Mortgage Loan minus the Servicing
Fee Rate.

      "Net  Prepayment  Interest  Shortfall":  With respect to any  Distribution
Date, the excess,  if any, of any Prepayment  Interest  Shortfalls for such date
over the related Compensating Interest.

      "Net  WAC  Rate":  For  any  Distribution   Date  and  the  Floating  Rate
Certificates,  a per annum rate equal to the product of (x) the weighted average
of the Adjusted Net Mortgage Rates of the Mortgage Loans,  weighted on the basis
of the  outstanding  Stated  Principal  Balances of the Mortgage Loans as of the
first day of the month preceding the month of such  Distribution  Date and (y) a
fraction,  the  numerator  of  which is 30 and the  denominator  of which is the
actual number of days elapsed in the related Accrual Period.

      For federal  income tax  purposes,  the economic  equivalent  of such rate
shall be expressed as the weighted average of the REMIC 1 Pass-Through  Rates on
the  REMIC 1 Regular  Interests,  weighted  on the  basis of the  Uncertificated
Principal Balance of each such REMIC 1 Regular Interest.

      "Net WAC  Rate  Carryover  Amount":  With  respect  to the  Floating  Rate
Certificates  and any  Distribution  Date, the sum of (A) the positive excess of
(i) the  amount  of  interest  accrued  on such  Class of  Certificates  on such
Distribution  Date  calculated at the related Formula Rate, over (ii) the amount
of interest  accrued on such Class of  Certificates at the Net WAC Rate for such
Distribution  Date and (B) the Net WAC Rate  Carryover  Amount for the  previous
Distribution Date not previously paid,  together with interest thereon at a rate
equal  to the  related  Formula  Rate for such  Class of  Certificates  for such
Distribution Date and for such Accrual Period.

      "Net WAC Rate Carryover  Reserve  Account":  The account  established  and
maintained pursuant to Section 4.06.

      "New  Lease":  Any  lease of REO  Property  entered  into on behalf of the
Trust,  including  any lease  renewed or  extended on behalf of the Trust if the
Trust has the right to renegotiate the terms of such lease.

      "Nonrecoverable Advance": Any Advance or Servicing Advance previously made
or proposed to be made in respect of a Mortgage  Loan or REO Property  that,  in
the good faith

                                       30
<PAGE>

business judgment of the Servicer,  will not be ultimately recoverable from Late
Collections, Insurance Proceeds or Liquidation Proceeds of such Mortgage Loan or
REO Property as provided herein.

      "Notional Amount": Immediately prior to any Distribution Date with respect
to the Class C Interest, the aggregate Uncertificated Principal Balance of REMIC
1 Regular Interests (other than the REMIC 1 Regular Interest LTP).

      "Officers'  Certificate":  A  certificate  signed by the  Chairman  of the
Board,  the Vice  Chairman  of the  Board,  the  President  or a vice  president
(however  denominated),  and  by the  Treasurer,  the  Secretary,  or one of the
assistant treasurers or assistant secretaries of the Servicer, the Originator or
the Depositor, as applicable.

      "Opinion  of  Counsel":  A written  opinion of counsel,  who may,  without
limitation, be a salaried counsel for the Depositor or the Servicer,  acceptable
to the  Trustee,  except  that  any  opinion  of  counsel  relating  to (a)  the
qualification  of  any  REMIC  as a  REMIC  or (b)  compliance  with  the  REMIC
Provisions must be an opinion of Independent counsel.

      "Optional  Termination  Date":  The first  Distribution  Date on which the
Terminator may opt to terminate the Trust Fund pursuant to Section 10.01.

      "Original  Class  Certificate  Principal  Balance":  With  respect  to the
Floating  Rate   Certificates,   the  Class  C  Certificates  and  the  Class  P
Certificates,  the corresponding  amounts set forth opposite such Class above in
the Preliminary Statement.

      "Original  Mortgage Loan": Any of the Mortgage Loans included in the Trust
Fund as of the Closing  Date.  The aggregate  principal  balance of the Original
Mortgage Loans as of the Cut-off Date is equal to $309,395,801.92.

      "Original  Notional  Amount":  With  respect  to  the  Class  C  Interest,
$309,395,801.92.

      "Originator":  Centex Home Equity Company, LLC, a Delaware corporation, or
its successor in interest.

      "Overcollateralization   Deficiency   Amount":   With   respect   to   any
Distribution Date, the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount on such Distribution Date (assuming
that  100%  of  the  Principal  Remittance  Amount  is  applied  as a  principal
distribution on such Distribution Date).

      "Overcollateralization   Floor":   With  respect  to  the  Floating   Rate
Certificates, $1,546,979.01.

      "Overcollateralization  Release Amount":  With respect to any Distribution
Date, the lesser of (x) the Principal  Remittance  Amount for such  Distribution
Date and (y) the Excess Overcollateralized Amount.

                                       31
<PAGE>

      "Overcollateralization  Target Amount":  With respect to any  Distribution
Date, (i) prior to the Stepdown Date,  1.00% of the aggregate  Stated  Principal
Balance of the Original  Mortgage Loans as of the Cut-off Date, (ii) on or after
the Stepdown Date provided a Trigger Event is not in effect,  the greater of (A)
2.00% of the aggregate Stated Principal  Balance of the Mortgage Loans as of the
last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled  collections of principal received during the related Prepayment
Period) and (B) 0.50% of the aggregate Stated Principal  Balance of the Original
Mortgage Loans as of the Cut-off Date and (iii) on or after the Stepdown Date if
a Trigger Event is in effect,  the  Overcollateralization  Target Amount for the
immediately preceding Distribution Date.  Notwithstanding the foregoing,  on and
after any Distribution Date following the reduction of the aggregate Certificate
Principal   Balance   of  the   Floating   Rate   Certificates   to  zero,   the
Overcollateralization Target Amount shall be zero..

      "Overcollateralized  Amount":  For any Distribution Date, the amount equal
to (i) the aggregate  Stated  Principal  Balance of the Mortgage Loans as of the
last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled  collections of principal received during the related Prepayment
Period) minus (ii) the sum of the aggregate Certificate Principal Balance of the
Floating Rate  Certificates and the Class P Certificates as of such Distribution
Date after giving effect to distributions to be made on such Distribution Date.

      "Ownership  Interest":  As to any  Certificate,  any ownership or security
interest in such Certificate,  including any interest in such Certificate as the
Holder thereof and any other interest therein, whether direct or indirect, legal
or beneficial, as owner or as pledgee.

      "Pass-Through  Rate":  With respect to the Floating Rate  Certificates and
any  Distribution  Date,  the lesser of (x) the  related  Formula  Rate for such
Distribution  Date and (y) the Net WAC Rate for  such  Distribution  Date.  With
respect  to the Class C Interest  and any  Distribution  Date,  a per annum rate
equal to the percentage equivalent of a fraction,  the numerator of which is the
sum of the amounts calculated pursuant to clauses (A) through (Q) below, and the
denominator of which is the aggregate  Uncertificated  Principal  Balance of the
REMIC 1 Regular Interests. For purposes of calculating the Pass-Through Rate for
the  Class C  Interest,  the  numerator  is  equal  to the sum of the  following
components:

            (A) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTAA minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTAA;

            (B) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTA1 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTA1;

            (C) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTA2 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTA2;

                                       32
<PAGE>

            (D) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTA3 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTA3;

            (E) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTM1 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTM1;

            (F) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTM2 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTM2;

            (G) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTM3 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTM3;

            (H) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTM4 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTM4;

            (I) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTM5 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTM5;

            (J) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTM6 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTM6;

            (K) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTM7 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTM7;

            (L) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTM8 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTM8;

            (M) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTM9 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTM9;

            (N) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTB1 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTB1;

                                       33
<PAGE>

            (O) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTB2 minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTB2;

            (P) the Uncertificated REMIC 1 Pass-Through Rate for REMIC 1 Regular
      Interest  LTZZ minus the Marker  Rate,  applied to an amount  equal to the
      Uncertificated Principal Balance of REMIC 1 Regular Interest LTZZ; and

            (Q) 100% of the interest on the REMIC 1 Regular Interest LTP.

      With  respect  to  the  Class  C   Certificates,   100%  of  the  interest
distributable to the Class C Interest, expressed as a per annum rate.

      "Paying Agent": Any paying agent appointed pursuant to Section 5.05.

      "Percentage  Interest":  With  respect to any  Certificate  (other  than a
Residual Certificate),  a fraction,  expressed as a percentage, the numerator of
which  is  the  Initial  Certificate   Principal  Balance  represented  by  such
Certificate  and the  denominator  of which is the  Original  Class  Certificate
Principal Balance of the related Class. With respect to a Residual  Certificate,
the portion of the Class evidenced thereby, expressed as a percentage, as stated
on the face of such  Certificate;  provided,  however,  that the sum of all such
percentages for each such Class totals 100%.

      "Periodic Rate Cap":  With respect to each  Adjustable-Rate  Mortgage Loan
and any Adjustment Date therefor,  the fixed percentage set forth in the related
Mortgage  Note,  which is the maximum amount by which the Mortgage Rate for such
Mortgage Loan may increase or decrease  (without regard to the Maximum  Mortgage
Rate or the Minimum  Mortgage  Rate) on such  Adjustment  Date from the Mortgage
Rate in effect immediately prior to such Adjustment Date.

      "Permitted  Investments":  Any one or more of the following obligations or
securities  acquired at a purchase price of not greater than par,  regardless of
whether issued or managed by the Depositor,  the Servicer, the Trustee or any of
their  respective  Affiliates or for which an Affiliate of the Trustee serves as
an advisor:

            (i) direct  obligations  of, or obligations  fully  guaranteed as to
      timely  payment of principal  and  interest  by, the United  States or any
      agency or instrumentality thereof, provided such obligations are backed by
      the full faith and credit of the United States;

            (ii) (A) demand and time  deposits in,  certificates  of deposit of,
      bankers'  acceptances  issued by or federal  funds sold by any  depository
      institution or trust company (including the Trustee or its agent acting in
      their respective commercial capacities) incorporated under the laws of the
      United States of America or any state  thereof and subject to  supervision
      and  examination by federal and/or state  authorities,  so long as, at the
      time of such  investment  or  contractual  commitment  providing  for such
      investment,  such depository institution or trust company (or, if the only
      Rating Agency is S&P, in the case of the principal depository  institution
      in a depository  institution  holding  company,  debt  obligations  of the
      depository  institution  holding  company)  or its  ultimate  parent has a
      short-term uninsured

                                       34
<PAGE>

      debt rating in one of the two highest available ratings of Moody's and the
      highest  available rating category of Fitch and S&P and provided that each
      such  investment  has an original  maturity of no more than 365 days;  and
      provided  further  that,  if the  only  Rating  Agency  is S&P  and if the
      depository  or trust  company is a principal  subsidiary of a bank holding
      company and the debt  obligations  of such  subsidiary  are not separately
      rated,  the applicable  rating shall be that of the bank holding  company;
      and provided  further  that, if the original  maturity of such  short-term
      obligations of a domestic  branch of a foreign  depository  institution or
      trust  company  shall  exceed  30  days,  the  short-term  rating  of such
      institution  shall be A-1+ in the case of S&P if S&P is the Rating Agency;
      and (B) any other demand or time deposit or deposit which is fully insured
      by the FDIC;

            (iii) repurchase  obligations with a term not to exceed 30 days with
      respect to any  security  described  in clause (i) above and entered  into
      with a depository institution or trust company (acting as principal) rated
      F-1+ or higher by Fitch,  P-1 by Moody's  and rated A-1+ or higher by S&P,
      provided, however, that collateral transferred pursuant to such repurchase
      obligation  must be of the type described in clause (i) above and must (A)
      be valued  daily at current  market  prices  plus  accrued  interest,  (B)
      pursuant to such  valuation,  be equal,  at all times, to 105% of the cash
      transferred  by the Trustee in  exchange  for such  collateral  and (C) be
      delivered to the Trustee or, if the Trustee is supplying  the  collateral,
      an agent for the Trustee, in such a manner as to accomplish  perfection of
      a security  interest  in the  collateral  by  possession  of  certificated
      securities;

            (iv)  securities  bearing  interest  or sold at a discount  that are
      issued by any corporation incorporated under the laws of the United States
      of America or any State  thereof and that are rated by a Rating  Agency in
      its  highest  long-term  unsecured  rating  category  at the  time of such
      investment or contractual commitment providing for such investment;

            (v) commercial paper (including both  non-interest-bearing  discount
      obligations  and  interest-bearing  obligations  payable on demand or on a
      specified  date  not  more  than 30 days  after  the  date of  acquisition
      thereof)  that is rated  by a  Rating  Agency  in its  highest  short-term
      unsecured debt rating available at the time of such investment;

            (vi) units of money market funds, including those money market funds
      managed or advised by the Trustee or its Affiliates,  that have been rated
      "AAA" by Fitch (if rated by Fitch), "Aaa" by Moody's and "AAA" by S&P; and

            (vii) if previously  confirmed in writing to the Trustee,  any other
      demand, money market or time deposit, or any other obligation, security or
      investment,  as may be acceptable  to the Rating  Agencies in writing as a
      permitted investment of funds backing securities having ratings equivalent
      to its highest initial rating of the Class A Certificates;

provided, that no instrument described hereunder shall evidence either the right
to receive (a) only interest  with respect to the  obligations  underlying  such
instrument or (b) both principal and interest  payments derived from obligations
underlying such instrument and the interest and principal  payments with respect
to such  instrument  provide a yield to maturity at par greater than 120% of the
yield to maturity at par of the underlying obligations.

                                       35
<PAGE>

      "Permitted  Transferee":  Any transferee of a Residual  Certificate  other
than a Disqualified Organization or a non-U.S. Person.

      "Person":   Any  individual,   corporation,   limited  liability  company,
partnership,   joint  venture,   association,   joint  stock   company,   trust,
unincorporated organization or government or any agency or political subdivision
thereof.

      "Plan":  Any employee  benefit plan or certain other  retirement plans and
arrangements,  including  individual  retirement  accounts and annuities,  Keogh
plans and bank  collective  investment  funds and insurance  company  general or
separate  accounts in which such plans,  accounts or arrangements  are invested,
that are subject to ERISA or Section 4975 of the Code.

      "Pool  Balance":  As of any date of  determination,  the aggregate  Stated
Principal Balance of the Mortgage Loans in the Mortgage Pool as of such date.

      "Prepayment Assumption": As defined in the Prospectus Supplement.

      "Prepayment  Charge":  With respect to any Mortgage  Loan,  the charges or
premiums,  if any, due in connection with a full or partial Principal Prepayment
of such  Mortgage  Loan in  accordance  with the terms  thereof  (other than any
Servicer Prepayment Charge Payment Amount).

      "Prepayment  Charge  Schedule":  As of any  date,  the list of  Prepayment
Charges on the Mortgage Loans included in the Trust Fund on such date,  attached
hereto as Schedule I (including the Prepayment Charge Summary attached thereto).
The Prepayment  Charge Schedule shall set forth the following  information  with
respect to each Prepayment Charge:

            (i) the Mortgage Loan identifying number;

            (ii) a code indicating the type of Prepayment Charge;

            (iii) the state of origination of the related Mortgage Loan;

            (iv) the date on which  the  first  monthly  payment  was due on the
      related Mortgage Loan;

            (v) the term of the related Prepayment Charge; and

            (vi) the Stated Principal Balance of the related Mortgage Loan as of
      the Cut-off Date.

      "Prepayment  Interest Excess":  With respect to any Distribution Date, for
each Mortgage Loan that was the subject of a Principal Prepayment in full on the
first day of the  calendar  month in which such  Distribution  Date  occurs,  an
amount equal to interest (to the extent received) at the applicable Net Mortgage
Rate  on the  amount  of  such  Principal  Prepayment  for  the  number  of days
commencing  on the first day of the  calendar  month in which such  Distribution
Date occurs and ending on the date on which such prepayment is so applied.

                                       36
<PAGE>

      "Prepayment  Interest  Shortfall":  With respect to any Distribution Date,
for each  Mortgage  Loan that was the subject of a Principal  Prepayment in full
during the portion of the related Prepayment Period occurring from the first day
of the related  Prepayment  Period  through the last day of the  calendar  month
preceding the month in which such  Distribution  Date occurs, an amount equal to
interest  on the  amount of such  Principal  Prepayment  for the  number of days
commencing on the date such  Principal  Prepayment was applied and ending on the
last day of the calendar  month  preceding the month in which such  Distribution
Date occurs.

      "Prepayment  Period":  With respect to any  Distribution  Date, the period
commencing  on the  second  day of the month  preceding  the month in which such
Distribution  Date occurs and ending on the first day of the month in which such
Distribution Date occurs.

      "Principal  Balance":  As to any  Mortgage  Loan other  than a  Liquidated
Mortgage Loan, and any day, the related  Cut-off Date Principal  Balance,  minus
all collections  credited against the Cut-off Date Principal Balance of any such
Mortgage Loan. For purposes of this definition, a Liquidated Mortgage Loan shall
be deemed to have a  Principal  Balance  equal to the  Principal  Balance of the
related Mortgage Loan as of the final recovery of related  Liquidation  Proceeds
and a Principal Balance of zero thereafter.  As to any REO Property and any day,
the Principal  Balance of the related  Mortgage Loan  immediately  prior to such
Mortgage  Loan  becoming  REO  Property  minus  any REO  Principal  Amortization
received with respect thereto on or prior to such day.

      "Principal  Distribution  Amount":  With respect to any Distribution Date,
the sum of (i) the Basic  Principal  Distribution  Amount for such  Distribution
Date and (ii) the Extra  Principal  Distribution  Amount  for such  Distribution
Date.

      "Principal Prepayment":  Any payment of principal made by the Mortgagor on
a Mortgage Loan which is received in advance of its scheduled Due Date and which
is not  accompanied  by an amount of  interest  representing  the full amount of
scheduled  interest  due with  respect to such  principal on any Due Date in any
month or months subsequent to the month of prepayment.

      "Principal Remittance Amount": With respect to any Distribution Date, that
portion of  Available  Funds equal to the sum of (i) each  scheduled  payment of
principal  collected or advanced on the Mortgage  Loans by the Servicer that was
due during the related Due Period, (ii) the principal portion of all partial and
full Principal  Prepayments of the Mortgage Loans applied by the Servicer during
the related  Prepayment  Period,  (iii) the principal portion of all related Net
Liquidation  Proceeds,  Insurance  Proceeds and Subsequent  Recoveries  received
during the related Prepayment  Period,  (iv) that portion of the Purchase Price,
representing  principal  of any  repurchased  Mortgage  Loan,  deposited  in the
Collection  Account  during the related  Prepayment  Period,  (v) the  principal
portion of any related  Substitution  Adjustments  deposited  in the  Collection
Account during the related  Prepayment  Period and (vi) on the Distribution Date
on which the Trust Fund is to be  terminated  pursuant  to Section  10.01,  that
portion of the Termination Price, in respect of principal.

      "Prospectus Supplement": That certain Prospectus Supplement dated July 26,
2004  relating  to the  public  offering  of the  Class A  Certificates  and the
Mezzanine Certificates.

                                       37
<PAGE>

      "Purchase  Price":  With  respect  to the Seller or the  Servicer  and any
Mortgage Loan or REO Property to be purchased  pursuant to or as contemplated by
Section 2.03, Section 3.16(c) or Section 10.01, and as confirmed by an Officers'
Certificate  from the party  purchasing  the Mortgage  Loan to the  Trustee,  an
amount equal to the sum of (i) 100% of the Stated  Principal  Balance thereof as
of the date of purchase (or such other price as provided in Section 10.01), (ii)
in the case of (x) a Mortgage Loan,  accrued  interest on such Stated  Principal
Balance at the applicable Mortgage Rate in effect from time to time from the Due
Date as to which  interest was last covered by a payment by the  Mortgagor or an
advance by the Servicer, which payment or advance had as of the date of purchase
been distributed pursuant to Section 4.01, through the end of the calendar month
in which the purchase is to be effected, and (y) an REO Property, the sum of (1)
accrued  interest on such Stated  Principal  Balance at the applicable  Mortgage
Rate in effect from time to time from the Due Date as to which interest was last
covered by a payment by the Mortgagor or an advance by the Servicer  through the
end of the calendar month immediately preceding the calendar month in which such
REO Property was acquired,  plus (2) REO Imputed  Interest for such REO Property
for each calendar  month  commencing  with the calendar  month in which such REO
Property was acquired and ending with the calendar  month in which such purchase
is to be  effected,  net of  the  total  of all  net  rental  income,  Insurance
Proceeds,  Liquidation Proceeds and Advances that as of the date of purchase had
been distributed as or to cover REO Imputed  Interest  pursuant to Section 4.04,
(iii) any unreimbursed  Servicing Advances and Advances and any unpaid Servicing
Fees  allocable  to  such  Mortgage  Loan  or REO  Property,  (iv)  any  amounts
previously  withdrawn  from the  Collection  Account in respect of such Mortgage
Loan or REO Property  pursuant to Section 3.23 and (v) in the case of a Mortgage
Loan  required to be purchased  pursuant to Section  2.03,  expenses  reasonably
incurred  or to be  incurred  by the  Servicer  or the Trustee in respect of the
breach or defect giving rise to the purchase obligation, including any costs and
damages incurred by the Trust Fund in connection with any violation by such loan
of any predatory or abusive  lending law. With respect to the Originator and any
Mortgage Loan or REO Property to be purchased  pursuant to or as contemplated by
Section 2.03 or 10.01, and as confirmed by a certificate of a Servicing  Officer
to the Trustee, an amount equal to the amount set forth pursuant to the terms of
the Master Agreement.

      "Qualified Insurer": Any insurance company acceptable to Fannie Mae.

      "Qualified  Substitute  Mortgage  Loan":  With  respect to the  Seller,  a
mortgage loan  substituted for a Deleted  Mortgage Loan pursuant to the terms of
this Agreement or the Mortgage Loan Purchase  Agreement  which must, on the date
of such  substitution,  (i) have an outstanding  Stated Principal Balance (or in
the case of a substitution of more than one mortgage loan for a Deleted Mortgage
Loan, an aggregate Stated Principal Balance), after application of all scheduled
payments  of  principal  and  interest  due  during  or  prior  to the  month of
substitution,  not in excess of, and not more than 5% less than, the outstanding
Stated Principal  Balance of the Deleted Mortgage Loan as of the Due Date in the
calendar month during which the substitution  occurs,  (ii) have a Mortgage Rate
not less than (and not more than one percentage point in excess of) the Mortgage
Rate of the Deleted  Mortgage Loan, (iii) if the Qualified  Substitute  Mortgage
Loan is an Adjustable-Rate  Mortgage Loan, have a Maximum Mortgage Rate not less
than  the  Maximum  Mortgage  Rate on the  Deleted  Mortgage  Loan,  (iv) if the
Qualified  Substitute Mortgage Loan is an Adjustable-Rate  Mortgage Loan, have a
Minimum  Mortgage  Rate not less than the Minimum  Mortgage  Rate of the Deleted
Mortgage   Loan,   (v)  if  the  Qualified   Substitute   Mortgage  Loan  is  an
Adjustable-Rate  Mortgage Loan, have a Gross Margin equal to or greater than the
Gross Margin of the Deleted

                                       38
<PAGE>

Mortgage  Loan,   (vi)  if  the  Qualified   Substitute   Mortgage  Loan  is  an
Adjustable-Rate  Mortgage Loan,  have a next  Adjustment  Date not more than two
months later than the next Adjustment Date on the Deleted  Mortgage Loan,  (vii)
[reserved],  (viii) have a remaining  term to maturity not greater than (and not
more than one year less than) that of the Deleted Mortgage Loan, (ix) be current
as of the date of substitution, (x) have a Loan-to-Value Ratio as of the date of
substitution  equal to or lower  than the Loan-  to-Value  Ratio of the  Deleted
Mortgage  Loan as of such  date,  (xi)  have a risk  grading  determined  by the
Originator at least equal to the risk grading  assigned on the Deleted  Mortgage
Loan,  (xii) have been  underwritten  or  reunderwritten  by the  Originator  in
accordance  with the same  underwriting  criteria and  guidelines as the Deleted
Mortgage Loan,  (xiii) [reserved] and (xiv) conform to each  representation  and
warranty  assigned  to  the  Depositor  pursuant  to  the  Assignment  Agreement
applicable to the Deleted  Mortgage Loan. In the event that one or more mortgage
loans are  substituted  for one or more  Deleted  Mortgage  Loans,  the  amounts
described  in clause (i) hereof  shall be  determined  on the basis of aggregate
Stated Principal Balances,  the Mortgage Rates described in clauses (ii) through
(vi) hereof shall be satisfied  for each such mortgage  loan,  the risk gradings
described in clause (x) hereof shall be satisfied as to each such mortgage loan,
the terms  described in clause (viii) hereof shall be determined on the basis of
weighted average remaining term to maturity (provided that no such mortgage loan
may have a remaining term to maturity  longer than the Deleted  Mortgage  Loan),
the Loan-to-Value Ratios described in clause (x) hereof shall be satisfied as to
each such mortgage  loan and,  except to the extent  otherwise  provided in this
sentence,  the representations  and warranties  described in clause (xiv) hereof
must  be  satisfied  as to each  Qualified  Substitute  Mortgage  Loan or in the
aggregate,  as the case may be. With respect to the Originator,  a mortgage loan
substituted  for a Deleted  Mortgage  Loan  pursuant  to the terms of the Master
Agreement which must, on the date of such substitution  conform to the terms set
forth in the Master Agreement.

      "Rating Agency or Rating  Agencies":  Moody's and S&P or their successors.
If such  agencies  or their  successors  are no  longer  in  existence,  "Rating
Agencies" shall be such nationally  recognized  statistical rating agencies,  or
other  comparable  Persons,   designated  by  the  Depositor,  notice  of  which
designation shall be given to the Trustee and Servicer.

      "Realized Loss": With respect to any Liquidated  Mortgage Loan, the amount
of loss realized equal to the portion of the Stated Principal  Balance remaining
unpaid  after  application  of all Net  Liquidation  Proceeds in respect of such
Mortgage Loan. If the Servicer  receives  Subsequent  Recoveries with respect to
any Mortgage Loan, the amount of the Realized Loss with respect to that Mortgage
Loan will be reduced to the extent  such  recoveries  are  applied to  principal
distributions on any Distribution Date.

      "Record Date":  With respect to (i) the Class P Certificates,  the Class C
Certificates  and the Residual  Certificates,  the Close of Business on the last
Business  Day of the  calendar  month  preceding  the month in which the related
Distribution Date occurs and (ii) the Floating Rate  Certificates,  the Close of
Business on the  Business Day  immediately  preceding  the related  Distribution
Date;   provided,   however,   that  following  the  date  on  which  Definitive
Certificates for a Floating Rate  Certificate are available  pursuant to Section
5.02,  the Record Date for such  Certificates  shall be the last Business Day of
the calendar month  preceding the month in which the related  Distribution  Date
occurs.

                                       39
<PAGE>

      "Reference  Banks":  Those banks (i) with an established place of business
in London,  England, (ii) not controlling,  under the control of or under common
control with the  Originator or the Servicer or any Affiliate  thereof and (iii)
which have been designated as such by the Trustee;  provided,  however,  that if
fewer  than two of such  banks  provide a LIBOR  rate,  then any  leading  banks
selected  by the  Trustee  which are engaged in  transactions  in United  States
dollar deposits in the international Eurocurrency market.

      "Refinanced Mortgage Loan": A Mortgage Loan the proceeds of which were not
used to purchase the related Mortgaged Property.

      "Regular  Certificate":  Any of the Floating  Rate  Certificates,  Class C
Certificates or Class P Certificates.

      "Reimbursement Amount": As defined in Section 3.29.

      "Relief  Act":  The  Servicemembers  Civil Relief Act, as amended,  or any
similar state or local laws.

      "Relief Act Interest  Shortfall":  With respect to any Distribution  Date,
for any  Mortgage  Loan with  respect to which there has been a reduction in the
amount of interest collectible thereon for the most recently ended Due Period as
a result of the  application of the Relief Act, the amount by which (i) interest
collectible  on such  Mortgage Loan during such Due Period is less than (ii) one
month's  interest on the Stated  Principal  Balance of such Mortgage Loan at the
Mortgage Rate for such Mortgage Loan before giving effect to the  application of
the Relief Act.

      "REMIC": A "real estate mortgage investment conduit" within the meaning of
Section 860D of the Code.

      "REMIC 1": The segregated pool of assets subject hereto,  constituting the
primary trust created hereby and to be administered  hereunder,  with respect to
which a REMIC  election is to be made  consisting of: (i) such Mortgage Loans as
from time to time are  subject to this  Agreement,  together  with the  Mortgage
Files relating thereto,  and together with all collections  thereon and proceeds
thereof,  (ii) any REO  Property,  together  with all  collections  thereon  and
proceeds thereof,  (iii) the Trustee's rights with respect to the Mortgage Loans
under  all  insurance  policies  required  to be  maintained  pursuant  to  this
Agreement  and any  proceeds  thereof,  (iv) the  Depositor's  rights  under the
Assignment  Agreement  (including any security interest created thereby) and (v)
the Collection Account,  the Distribution  Account (subject to the last sentence
of this  definition)  and any REO Account  and such  assets  that are  deposited
therein from time to time and any investments thereof, together with any and all
income,  proceeds  and  payments  with  respect  thereto.   Notwithstanding  the
foregoing,  however,  a REMIC  election will not be made with respect to the Net
WAC Rate Carryover Reserve Account,  the Cap Contract or any Servicer Prepayment
Charge Payment Amounts.

      "REMIC  1  Interest  Loss   Allocation   Amount":   With  respect  to  any
Distribution  Date,  an amount  equal to (a) the  product  of (i) the  aggregate
Stated Principal Balance of the Mortgage

                                       40
<PAGE>

Loans and related REO Properties then  outstanding  and (ii) the  Uncertificated
REMIC 1  Pass-Through  Rate for REMIC 1 Regular  Interest  LTAA minus the Marker
Rate, divided by (b) 12.

      "REMIC   1   Overcollateralization    Target   Amount":   1.00%   of   the
Overcollateralization Target Amount.

      "REMIC  1  Overcollateralization  Amount":  With  respect  to any  date of
determination,  (i) 1.00% of the aggregate  Uncertificated  Principal Balance of
the REMIC 1 Regular  Interests  minus (ii) the  aggregate of the  Uncertificated
Principal  Balance of REMIC 1 Regular  Interest LTAA,  REMIC 1 Regular  Interest
LTA1,  REMIC 1 Regular  Interest LTA2,  REMIC 1 Regular  Interest LTA3,  REMIC 1
Regular  Interest LTM1,  REMIC 1 Regular Interest LTM2, REMIC 1 Regular Interest
LTM3,  REMIC 1 Regular  Interest LTM4,  REMIC 1 Regular  Interest LTM5,  REMIC 1
Regular  Interest LTM6,  REMIC 1 Regular Interest LTM7, REMIC 1 Regular Interest
LTM8,  REMIC 1 Regular  Interest LTM9,  REMIC 1 Regular  Interest LTB1,  REMIC 1
Regular  Interest LTB2 and REMIC 1 Regular Interest LTP, in each case as of such
date of determination.

      "REMIC  1  Principal  Loss  Allocation   Amount":   With  respect  to  any
Distribution  Date, an amount equal to the product of (i) the  aggregate  Stated
Principal  Balance  of the  Mortgage  Loans  and  related  REO  Properties  then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate  Uncertificated  Principal  Balance of REMIC 1 Regular  Interest LTA1,
REMIC 1 Regular  Interest LTA2,  REMIC 1 Regular  Interest LTA3, REMIC 1 Regular
Interest LTM1,  REMIC 1 Regular  Interest LTM2,  REMIC 1 Regular  Interest LTM3,
REMIC 1 Regular  Interest LTM4,  REMIC 1 Regular  Interest LTM5, REMIC 1 Regular
Interest LTM6,  REMIC 1 Regular  Interest LTM7,  REMIC 1 Regular  Interest LTM8,
REMIC 1 Regular Interest LTM9, REMIC 1 Regular Interest LTB1 and REMIC 1 Regular
Interest  LTB2 and the  denominator  of which  is the  aggregate  Uncertificated
Principal  Balance of REMIC 1 Regular  Interest LTA1,  REMIC 1 Regular  Interest
LTA2,  REMIC 1 Regular  Interest LTA3,  REMIC 1 Regular  Interest LTM1,  REMIC 1
Regular  Interest LTM2,  REMIC 1 Regular Interest LTM3, REMIC 1 Regular Interest
LTM4,  REMIC 1 Regular  Interest LTM5,  REMIC 1 Regular  Interest LTM6,  REMIC 1
Regular  Interest LTM7,  REMIC 1 Regular Interest LTM8, REMIC 1 Regular Interest
LTM9,  REMIC 1 Regular  Interest LTB1, REMIC 1 Regular Interest LTB2 and REMIC 1
Regular Interest LTZZ.

      "REMIC 1 Regular  Interest  LTAA":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTAA shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTA1":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTA1 shall accrue interest
at the related  Uncertificated  REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

                                       41
<PAGE>

      "REMIC 1 Regular  Interest  LTA2":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTA2 shall accrue interest
at the related  Uncertificated  REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTA3":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTA3 shall accrue interest
at the related  Uncertificated  REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTB1":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTB1 shall accrue interest
at the related  Uncertificated  REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTB2":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTB2 shall accrue interest
at the related  Uncertificated  REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTM1":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTM1 shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTM2":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTM2 shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal, subject

                                       42
<PAGE>

to the terms and conditions  hereof, in an aggregate amount equal to its initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTM3":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTM3 shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTM4":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTM4 shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTM5":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTM5 shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTM6":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTM6 shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTM7":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTM7 shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTM8":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTM8 shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTM9":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTM9 shall accrue interest
at the related  Uncertificated REMIC 1 Pass- Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

                                       43
<PAGE>

      "REMIC 1  Regular  Interest  LTP":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular  Interest in REMIC 1. REMIC 1 Regular Interest LTP shall accrue interest
at the related  Uncertificated  REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1 Regular  Interest  LTZZ":  One of the  separate  non-certificated
beneficial  ownership  interests in REMIC 1 issued hereunder and designated as a
Regular Interest in REMIC 1. REMIC 1 Regular Interest LTZZ shall accrue interest
at the related  Uncertificated  REMIC 1 Pass-Through Rate in effect from time to
time, and shall be entitled to distributions of principal,  subject to the terms
and   conditions   hereof,   in  an  aggregate   amount  equal  to  its  initial
Uncertificated  Principal  Balance  as set  forth in the  Preliminary  Statement
hereto.

      "REMIC 1  Regular  Interests":  REMIC 1  Regular  Interest  LTAA,  REMIC 1
Regular  Interest LTA1,  REMIC 1 Regular Interest LTA2, REMIC 1 Regular Interest
LTA3,  REMIC 1 Regular  Interest LTM1,  REMIC 1 Regular  Interest LTM2,  REMIC 1
Regular  Interest LTM3,  Regular  Interest LTM4,  REMIC 1 Regular Interest LTM5,
REMIC 1 Regular  Interest LTM6,  REMIC 1 Regular  Interest LTM7, REMIC 1 Regular
Interest LTM8,  REMIC 1 Regular  Interest LTM9,  REMIC 1 Regular  Interest LTB1,
REMIC 1 Regular Interest LTB2, REMIC 1 Regular Interest LTZZ and REMIC 1 Regular
Interest LTP.

      "REMIC 2": The segregated pool of assets  consisting of all of the REMIC 1
Regular  Interests  conveyed  in trust to the  Trustee,  for the  benefit of the
Holders of the Regular  Certificates and the Class R Certificates (in respect of
the Class R-2  Interest),  pursuant  to Article II  hereunder,  and all  amounts
deposited  therein,  with  respect to which a separate  REMIC  election is to be
made.

      "REMIC 3": The segregated pool of assets  consisting of all of the Class C
Interest conveyed in trust to the Trustee, for the benefit of the Holders of the
Regular  Certificates and the Class R-X Certificate (in respect of the Class R-3
Interest),  pursuant to Article II hereunder, and all amounts deposited therein,
with respect to which a separate REMIC election is to be made.

      "REMIC 4": The segregated pool of assets  consisting of all of the Class P
Interest conveyed in trust to the Trustee, for the benefit of the Holders of the
Regular  Certificates and the Class R-X Certificate (in respect of the Class R-4
Interest),  pursuant to Article II hereunder, and all amounts deposited therein,
with respect to which a separate REMIC election is to be made.

      "REMIC  Provisions":  Provisions of the federal income tax law relating to
real estate  mortgage  investment  conduits which appear at Section 860A through
860G of  Subchapter  M of Chapter 1 of the Code,  and  related  provisions,  and
regulations  and rulings  promulgated  thereunder,  as the  foregoing  may be in
effect from time to time.

      "Remittance  Report":  A report  prepared by the Servicer and delivered to
the Trustee pursuant to Section 4.04.

                                       44
<PAGE>

      "Rents from Real Property": With respect to any REO Property, gross income
of the character described in Section 856(d) of the Code.

      "REO  Account":  The account or  accounts  maintained  by the  Servicer in
respect of an REO Property pursuant to Section 3.23.

      "REO  Disposition":  The sale or other  disposition  of an REO Property on
behalf of the Trust Fund.

      "REO Imputed  Interest":  As to any REO Property,  for any calendar  month
during  which  such REO  Property  was at any time part of the Trust  Fund,  one
month's  interest at the  applicable  Net Mortgage Rate on the Stated  Principal
Balance of such REO Property (or, in the case of the first such calendar  month,
of the related  Mortgage Loan if appropriate) as of the Close of Business on the
Distribution Date in such calendar month.

      "REO Principal  Amortization":  With respect to any REO Property,  for any
calendar month, the excess, if any, of (a) the aggregate of all amounts received
in respect of such REO Property during such calendar month,  whether in the form
of rental income, sale proceeds (including,  without limitation, that portion of
the Termination  Price paid in connection with a purchase of all of the Mortgage
Loans and REO Properties pursuant to Section 10.01 that is allocable to such REO
Property) or otherwise,  net of any portion of such amounts (i) payable pursuant
to Section 3.23 in respect of the proper  operation,  management and maintenance
of such REO Property or (ii) payable or reimbursable to the Servicer pursuant to
Section 3.23 for unpaid  Servicing Fees in respect of the related  Mortgage Loan
and unreimbursed Servicing Advances and Advances in respect of such REO Property
or the related  Mortgage Loan,  over (b) the REO Imputed  Interest in respect of
such REO Property for such calendar month.

      "REO Property": A Mortgaged Property acquired by the Servicer on behalf of
the Trust Fund through foreclosure or deed-in-lieu of foreclosure,  as described
in Section 3.23.

      "Request for Release":  A release  signed by a Servicing  Officer,  in the
form of Exhibit E attached hereto.

      "Reserve Interest Rate": With respect to any Interest  Determination Date,
the rate per annum that the Trustee  determines to be either (i) the  arithmetic
mean (rounded  upwards if necessary to the nearest whole multiple of 1/16 of 1%)
of the one-month  United States dollar  lending rates which banks in The City of
New  York  selected  by the  Depositor  are  quoting  on the  relevant  Interest
Determination  Date to the  principal  London  offices of  leading  banks in the
London  interbank  market or (ii) in the event that the Trustee can determine no
such arithmetic mean, in the case of any Interest  Determination  Date after the
initial Interest  Determination  Date, the lowest one-month United States dollar
lending rate which such New York banks  selected by the Depositor are quoting on
such Interest Determination Date to leading European banks.

      "Residential  Dwelling":   Any  one  of  the  following:  (i)  a  detached
one-family  dwelling,  (ii) a detached  two- to  four-family  dwelling,  (iii) a
one-family dwelling unit in a Fannie Mae eligible

                                       45
<PAGE>

condominium  project,  (iv) a  manufactured  home, or (v) a detached  one-family
dwelling  in a planned  unit  development,  none of which is a  co-operative  or
mobile home.

      "Residual  Certificate":  The  Class  R  Certificates  and the  Class  R-X
Certificates.

      "Residual  Interest":  The sole class of "residual  interests"  in a REMIC
within the meaning of Section 860G(a)(2) of the Code.

      "Responsible  Officer":  When used with respect to the  Trustee,  any vice
president, any assistant vice president, the Secretary, any assistant secretary,
the Treasurer,  any assistant treasurer, the Cashier, any assistant cashier, any
trust  officer or assistant  trust  officer,  the  Controller  and any assistant
controller,  in each  case,  with  direct  responsibility  for the  transactions
contemplated hereby or any other officer of the Trustee  customarily  performing
functions  similar to those  performed by any of the above  designated  officers
and,  with  respect to a  particular  matter,  to whom such  matter is  referred
because of such  officer's  knowledge  of and  familiarity  with the  particular
subject.

      "S&P":  Standard & Poor's Ratings Services,  a division of The McGraw-Hill
Companies, Inc., or its successor in interest.

      "Seller":   Greenwich  Capital  Financial   Products,   Inc.,  a  Delaware
corporation, in its capacity as assignor under the Assignment Agreement.

      "Senior Principal  Distribution  Amount":  The excess of (x) the aggregate
Certificate  Principal Balance of the Class A Certificates  immediately prior to
such  Distribution Date over (y) the lesser of (A) the product of (i) 63.00% and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period  (after  giving  effect to  scheduled  payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled  collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal  Balance of the Mortgage Loans as
of the last day of the  related Due Period  (after  giving  effect to  scheduled
payments of principal due during the related Due Period,  to the extent received
or  advanced,  and  unscheduled  collections  of principal  received  during the
related Prepayment Period) minus the Overcollateralization Floor.

      "Servicer":  Centex Home Equity Company, LLC, a Delaware limited liability
company, or any successor servicer appointed as herein provided, in its capacity
as Servicer hereunder.

      "Servicer Certification": As defined in Section 3.22(b) hereof.

      "Servicer Event of  Termination":  One or more of the events  described in
Section 7.01.

      "Servicer  Prepayment  Charge Payment Amount":  The amounts payable by the
Servicer in respect of any waived Prepayment Charges pursuant to Section 2.05 or
Section 3.01.

                                       46
<PAGE>

      "Servicer  Remittance  Date":  With respect to any Distribution  Date, the
18th day of the calendar month in which the Distribution Date occurs or, if such
18th day is not a Business Day, the Business Day preceding such 18th day.

      "Servicing Advance Reimbursement Amount": As defined in Section 3.29.

      "Servicing  Advances":  All  customary,  reasonable  and necessary "out of
pocket" costs and expenses (including  reasonable  attorneys' fees and expenses)
incurred  by the  Servicer  in the  performance  of its  servicing  obligations,
including,  but not limited to, the cost of (i) the  preservation,  restoration,
inspection and  protection of the Mortgaged  Property,  (ii) any  enforcement or
judicial  proceedings,   including   foreclosures,   (iii)  the  management  and
liquidation of the REO Property and (iv) compliance  with the obligations  under
Sections 3.01, 3.09, 3.14, 3.16, and 3.23.  Servicing  Advances also include any
reasonable "out-of-pocket" costs and expenses (including legal fees) incurred by
the  Servicer  in  connection  with  executing  and  recording   instruments  of
satisfaction,  deeds of  reconveyance  or  Assignments of Mortgage in connection
with any foreclosure in respect of any Mortgage Loan to the extent not recovered
from the related  Mortgagor  or  otherwise  payable  under this  Agreement.  The
Servicer  shall not be required to make any  Servicing  Advance  that would be a
Nonrecoverable Advance.

      "Servicing  Fee":  With respect to each Mortgage Loan and for any calendar
month,  an amount equal to the  Servicing Fee Rate accrued for such month (or in
the event of any Principal  Prepayment in full made by the Mortgagor during such
month,  the  Servicing  Fee Rate  accrued for the number of days  covered by the
payment of interest  accompanying the Principal Prepayment in full), on the same
principal amount on which interest on such Mortgage Loan accrues for such month.
A portion of such  Servicing  Fee may be  retained  by any  Sub-Servicer  as its
servicing compensation.

      "Servicing Fee Rate": 0.50% per annum.

      "Servicing  Officer":   Any  officer  of  the  Servicer  involved  in,  or
responsible for, the  administration and servicing of Mortgage Loans, whose name
and specimen  signature appear on a list of servicing  officers furnished by the
Servicer to the Trustee and the  Depositor on the Closing Date, as such list may
from time to time be amended.

      "Servicing Standard": Shall mean the standards set forth in Section 3.01.

      "Servicing  Transfer Costs":  Shall mean all reasonable costs and expenses
incurred by the Trustee in  connection  with the  transfer of  servicing  from a
predecessor  servicer,  including,  without limitation,  any reasonable costs or
expenses  associated  with the complete  transfer of all servicing  data and the
completion, correction or manipulation of such servicing data as may be required
by the Trustee to correct any errors or insufficiencies in the servicing data or
otherwise to enable the Trustee (or any successor servicer appointed pursuant to
Section 7.02) to service the Mortgage Loans properly and effectively.

      "Startup Day": As defined in Section 9.01(b) hereof.

                                       47
<PAGE>

      "Stated Principal  Balance":  With respect to any Mortgage Loan: (a) as of
any date of determination up to but not including the Distribution Date on which
the proceeds,  if any, of a Liquidation Event with respect to such Mortgage Loan
would be distributed,  the outstanding Stated Principal Balance of such Mortgage
Loan as of the Cut-off Date as shown in the Mortgage  Loan  Schedule,  minus the
sum of (i) the  principal  portion  of each  Monthly  Payment  due on a Due Date
subsequent  to the Cut-off  Date to the extent  received  from the  Mortgagor or
advanced by the Servicer and  distributed  pursuant to Section 4.01 on or before
such date of determination,  (ii) all Principal  Prepayments  received after the
Cut-off  Date to the extent  distributed  pursuant to Section  4.01 on or before
such  date of  determination,  (iii)  all  Liquidation  Proceeds  and  Insurance
Proceeds to the extent  distributed  pursuant to Section  4.01 on or before such
date of determination,  and (iv) any Realized Loss incurred with respect thereto
as a result of a Deficient  Valuation made during or prior to the Due Period for
the most recent  Distribution  Date  coinciding  with or preceding  such date of
determination;  and  (b) as of any  date  of  determination  coinciding  with or
subsequent  to the  Distribution  Date on  which  the  proceeds,  if  any,  of a
Liquidation Event with respect to such Mortgage Loan would be distributed, zero.
With respect to any REO Property:  (a) as of any date of determination up to but
not  including  the  Distribution  Date on  which  the  proceeds,  if any,  of a
Liquidation  Event with respect to such REO Property  would be  distributed,  an
amount (not less than zero) equal to the Stated Principal Balance of the related
Mortgage  Loan as of the date on which such REO  Property was acquired on behalf
of the Trust Fund, minus the aggregate  amount of REO Principal  Amortization in
respect of such REO Property for all previously  ended calendar  months,  to the
extent  distributed  pursuant  to  Section  4.01  on  or  before  such  date  of
determination;  and  (b) as of any  date  of  determination  coinciding  with or
subsequent  to the  Distribution  Date on  which  the  proceeds,  if  any,  of a
Liquidation Event with respect to such REO Property would be distributed, zero.

      "Stepdown Date": The earlier to occur of (i) the first  Distribution  Date
on which the aggregate Certificate Principal Balance of the Class A Certificates
has been  reduced  to zero and (ii) the  later to occur of (x) the  Distribution
Date occurring in August 2007 and (y) the first  Distribution  Date on which the
Credit  Enhancement  Percentage  (calculated  for this purpose only after taking
into  account  payments  of  principal  on  the  Mortgage  Loans  but  prior  to
distribution  of the  Principal  Distribution  Amount to the  Certificates  then
entitled to distributions of principal on such Distribution Date) is equal to or
greater than 37.00%.

      "Sub-Servicer": Any Person with which the Servicer has entered into a Sub-
Servicing  Agreement  and  which  meets  the  qualifications  of a  Sub-Servicer
pursuant to Section 3.02.

      "Sub-Servicing  Account":  An account  established by a Sub-Servicer which
meets the requirements set forth in Section 3.08 and is otherwise  acceptable to
the Servicer.

      "Sub-Servicing Agreement": The written contract between the Servicer and a
Sub- Servicer relating to servicing and administration of certain Mortgage Loans
as provided in Section 3.02.

      "Subsequent Recoveries":  As of any Distribution Date, amounts received by
the Servicer (net of any related expenses permitted to be reimbursed pursuant to
Section 3.11)

                                       48
<PAGE>

specifically related to a Mortgage Loan that was the subject of a liquidation or
an REO  Disposition  prior to the related  Prepayment  Period that resulted in a
Realized Loss.

      "Substitution Adjustment": As defined in Section 2.03(d) hereof.

      "Tax Matters Person": The tax matters person appointed pursuant to Section
9.01(e) hereof.

      "Tax Returns":  The federal income tax return on Internal  Revenue Service
Form 1066,  U.S.  Real Estate  Mortgage  Investment  Conduit  Income Tax Return,
including  Schedule Q thereto,  Quarterly Notice to Residual Interest Holders of
the REMIC Taxable Income or Net Loss  Allocation,  or any successor forms, to be
filed by the  Trustee on behalf of each REMIC,  together  with any and all other
information  reports or returns  that may be  required  to be  furnished  to the
Certificateholders  or filed  with the  Internal  Revenue  Service  or any other
governmental taxing authority under any applicable provisions of federal,  state
or local tax laws.

      "Termination Price": As defined in Section 10.01(a) hereof.

      "Terminator": As defined in Section 10.01(a) hereof.

      "Trigger  Event":  A  Trigger  Event  is in  effect  with  respect  to any
Distribution Date on or after the Stepdown Date if:

      (a) the Delinquency  Percentage  exceeds 42.00% of the Credit  Enhancement
Percentage; or

      (b) the aggregate  amount of Realized  Losses  incurred  since the Cut-off
Date  through the last day of the related Due Period  (reduced by the  aggregate
amount of Subsequent Recoveries received since the Cut-off Date through the last
day of the related Due Period) divided by the aggregate Stated Principal Balance
of the Mortgage Loans as of the Cut-off Date, exceeds the applicable percentages
set forth below with respect to such Distribution Date:

DISTRIBUTION DATE OCCURRING IN                        PERCENTAGE
-------------------------------------------------------------------------------
August 2007 through July 2008           5.75% for the first month, plus an
                                        additional 1/12th of 1.75% for each
                                        month thereafter.
August 2008 through July 2009           7.50% for the first month, plus an
                                        additional 1/12th of 1.25% for each
                                        month thereafter.
August 2009 through July 2010           8.75% for the first month, plus an
                                        additional 1/12th of 0.50% for each
                                        month thereafter.
August 2010 and thereafter              9.25% for each month.

      "Trust": CHEC Loan Trust 2004-1, the trust created hereunder.

      "Trust Fund":  All of the assets of the Trust,  which is the trust created
hereunder  consisting  of REMIC 1,  REMIC 2,  REMIC 3, REMIC 4, the Net WAC Rate
Carryover Reserve Account,  the Cap Contract and any Servicer  Prepayment Charge
Payment Amounts.

                                       49
<PAGE>

      "Trustee":  JPMorgan  Chase Bank, a New York banking  corporation,  or any
successor trustee appointed as herein provided.

      "Trustee Fee": The amount payable to the Trustee on each Distribution Date
pursuant to Section 8.05 as compensation for all services  rendered by it in the
execution of the trust hereby created and in the exercise and performance of any
of the powers and duties of the  Trustee  hereunder,  which  amount  shall equal
one-twelfth  of the product of (i) the  Trustee Fee Rate and (ii) the  aggregate
Stated  Principal  Balance of the Mortgage Loans and any REO  Properties  (after
giving  effect to  scheduled  payments of  principal  due during the related Due
Period,  to the extent  received or advanced,  and  unscheduled  collections  of
principal  received  during the related  Prepayment  Period);  provided that the
Trustee Fee shall not be less than $7,000 per annum.

      "Trustee Fee Rate": 0.0075% per annum.

      "Trustee Reimbursable  Expenses":  Any amounts reimbursable to the Trustee
pursuant to Sections 2.01,  3.06, 7.02 and 8.05 and, if the Trustee is acting as
Custodian,   any  related  custodial  fees  (including  all  attorney  fees  and
expenses).

      "Uncertificated  Accrued  Interest":  With respect to each REMIC 1 Regular
Interest on each  Distribution  Date, an amount equal to one month's interest at
the related  Uncertificated  REMIC 1 Pass-  Through  Rate on the  Uncertificated
Principal Balance of such REMIC 1 Regular Interest. In each case, Uncertificated
Accrued Interest will be reduced by any Net Prepayment  Interest  Shortfalls and
Relief Act  Interest  Shortfalls  (allocated  to such REMIC 1 Regular  Interests
based on their  respective  entitlements  to  interest  irrespective  of any Net
Prepayment  Interest  Shortfalls  and Relief Act  Interest  Shortfalls  for such
Distribution Date).

      "Uncertificated  Principal Balance":  With respect to each REMIC 1 Regular
Interest, the amount of such REMIC 1 Regular Interest outstanding as of any date
of determination.  As of the Closing Date, the Uncertificated  Principal Balance
of each  REMIC 1  Regular  Interest  shall  equal  the  amount  set forth in the
Preliminary Statement hereto as its initial Uncertificated Principal Balance. On
each  Distribution  Date, the  Uncertificated  Principal Balance of each REMIC 1
Regular Interest shall be reduced by all distributions of principal made on such
REMIC 1 Regular Interest on such Distribution Date pursuant to Section 4.07 and,
if and to the extent necessary and appropriate, shall be further reduced on such
Distribution  Date by  Realized  Losses as  provided  in Section  4.07,  and the
Uncertificated  Principal  Balance  of REMIC 1 Regular  Interest  LTZZ  shall be
increased by interest deferrals as provided in Section 4.07. With respect to the
Class C Interest as of any date of determination, an amount equal to the excess,
if any, of (A) the then aggregate  Uncertificated Principal Balance of the REMIC
1 Regular Interests over (B) the then aggregate Certificate Principal Balance of
the Floating Rate  Certificates and the Class P Certificates  then  outstanding.
The  Uncertificated  Principal Balance of each REMIC 1 Regular Interest that has
an Uncertificated Principal Balance shall never be less than zero.

      "Uncertificated  REMIC 1 Pass-Through Rate": For any Distribution Date and
each REMIC 1 Regular Interest, the weighted average of the Adjusted Net Mortgage
Rates of the Mortgage  Loans,  weighted on the basis of the  outstanding  Stated
Principal  Balances  of the  Mortgage  Loans as of the  first  day of the  month
preceding the month of such Distribution Date.

                                       50
<PAGE>

      "Uninsured  Cause":  Any cause of damage to a Mortgaged Property such that
the  complete  restoration  of such  property is not fully  reimbursable  by the
hazard insurance policies required to be maintained pursuant to Section 3.14.

      "United  States  Person" or "U.S.  Person":  A citizen or  resident of the
United  States,  a  corporation,  partnership  (or  other  entity  treated  as a
corporation  or  partnership  for United  States  federal  income tax  purposes)
created or  organized  in, or under the laws of, the  United  States,  any state
thereof,  or the District of Columbia  (except in the case of a partnership,  to
the extent provided in Treasury  regulations) provided that, for purposes solely
of the restrictions on the transfer of Residual Certificates,  no partnership or
other entity  treated as a  partnership  for United  States  federal  income tax
purposes  shall be treated as a United States Person unless all persons that own
an interest in such  partnership  either  directly or through any entity that is
not a corporation  for United States federal income tax purposes are required by
the applicable operative agreement to be United States Persons, or an estate the
income of which from sources  without the United  States is  includible in gross
income  for  United  States  federal  income  tax  purposes  regardless  of  its
connection with the conduct of a trade or business within the United States,  or
a trust  if a court  within  the  United  States  is  able to  exercise  primary
supervision over the  administration  of the trust and one or more United States
persons have authority to control all  substantial  decisions of the trust.  The
term  "United  States"  shall have the meaning set forth in Section  7701 of the
Code or successor provisions.

      "Unpaid  Interest  Shortfall  Amount":  With respect to the Floating  Rate
Certificates  and  (i)  the  first   Distribution   Date,  zero,  and  (ii)  any
Distribution  Date after the first  Distribution  Date,  the amount,  if any, by
which (a) the sum of (1) the  Monthly  Interest  Distributable  Amount  for such
Class for the immediately  preceding  Distribution  Date and (2) the outstanding
Unpaid  Interest  Shortfall  Amount,  if any, for such Class for such  preceding
Distribution Date exceeds (b) the aggregate amount  distributed on such Class in
respect of interest  pursuant to clause (a) of this definition on such preceding
Distribution  Date,  plus interest on the amount of interest due but not paid on
the  Certificates  of such Class on such  preceding  Distribution  Date,  to the
extent permitted by law, at the Pass-Through Rate for such Class for the related
Accrual Period.

      "Value":  With respect to any  Mortgaged  Property,  the lesser of (i) the
lesser of (a) the value  thereof  as  determined  by an  appraisal  made for the
originator of the Mortgage Loan at the time of  origination of the Mortgage Loan
by an appraiser who met the minimum  requirements of Fannie Mae and Freddie Mac,
and (b) the value thereof as determined by a review  appraisal  conducted by the
Originator in the event any such review appraisal  determines an appraised value
ten percent or more lower than the value  thereof as determined by the appraisal
referred  to in clause  (i)(a)  above and (ii) the  purchase  price paid for the
related  Mortgaged  Property by the Mortgagor  with the proceeds of the Mortgage
Loan,  provided,  however, in the case of a Refinanced Mortgage Loan, such value
of the  Mortgaged  Property  is based  solely  upon the  lesser of (1) the value
determined by an appraisal made for the Originator of such  Refinanced  Mortgage
Loan at the time of origination of such Refinanced Mortgage Loan by an appraiser
who met the minimum requirements of Fannie Mae and Freddie Mac and (2) the value
thereof as determined by a review  appraisal  conducted by the Originator in the
event any such review  appraisal  determines  an appraised  value ten percent or
more lower than the value thereof as determined by the appraisal  referred to in
clause (ii)(1) above.

                                       51
<PAGE>

      "Voting  Rights":  The  portion  of  the  voting  rights  of  all  of  the
Certificates  which is allocated to any  Certificate.  At all times the Floating
Rate  Certificates  and the Class C  Certificates  shall  have 98% of the Voting
Rights  (allocated  among the Holders of the Floating Rate  Certificates and the
Class C Certificates in proportion to the then outstanding Certificate Principal
Balances of their respective Certificates),  the Class P Certificates shall have
1% of the  Voting  Rights  and the  Residual  Certificates  shall have 1% of the
Voting Rights.  The Voting Rights allocated to any Class of Certificates  (other
than the Class P Certificates and the Residual  Certificates) shall be allocated
among  all  Holders  of  each  such  Class  in  proportion  to  the  outstanding
Certificate  Principal  Balance  of  such  Certificates  and the  Voting  Rights
allocated to the Class P  Certificates  and the Residual  Certificates  shall be
allocated  among all Holders of each such Class in  proportion  to such Holders'
respective Percentage Interest;  provided, however that when none of the Regular
Certificates are outstanding, 100% of the Voting Rights shall be allocated among
Holders of the Residual Certificates in accordance with such Holders' respective
Percentage Interests in the Certificates of such Class.

      SECTION 1.02. Accounting.

      Unless otherwise  specified  herein,  for the purpose of any definition or
calculation,  whenever amounts are required to be netted, subtracted or added or
any  distributions are taken into account such definition or calculation and any
related  definitions or calculations shall be determined without  duplication of
such functions.

      SECTION 1.03. Allocation of Certain Interest Shortfalls.

      For  purposes  of   calculating   the  amount  of  the  Monthly   Interest
Distributable  Amount  for  the  Floating  Rate  Certificates  and  the  Class C
Certificates  for any  Distribution  Date,  (1) the aggregate  amount of any Net
Prepayment  Interest  Shortfalls and any Relief Act Interest Shortfalls incurred
in respect of the Mortgage  Loans for any  Distribution  Date shall be allocated
first,  among the Class C Certificates  on a PRO RATA basis based on, and to the
extent of, one month's interest at the then applicable  Pass-Through Rate on the
Notional Amount of each such  Certificate  and,  thereafter,  among the Floating
Rate  Certificates  on a PRO RATA  basis  based on,  and to the  extent  of, one
month's  interest at the then  applicable  respective  Pass-Through  Rate on the
respective  Certificate  Principal  Balance of each such Certificate and (2) the
aggregate  amount of any  Realized  Losses and Net WAC Rate  Carryover  Amounts,
incurred  for any  Distribution  Date  shall  be  allocated  among  the  Class C
Certificates  on a PRO RATA basis  based on,  and to the extent of, one  month's
interest at the then applicable Pass-Through Rate on the Notional Amount of each
such Certificate.

      For purposes of calculating the amount of Uncertificated  Accrued Interest
for the REMIC 1 Regular  Interests  for any  Distribution  Date,  the  aggregate
amount of any Net  Prepayment  Interest  Shortfalls  and any Relief Act Interest
Shortfalls  incurred in respect of the Mortgage Loans for any Distribution  Date
shall be allocated among REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest
LTA1,  REMIC 1 Regular  Interest LTA2,  REMIC 1 Regular  Interest LTA3,  REMIC 1
Regular  Interest LTM1,  REMIC 1 Regular Interest LTM2, REMIC 1 Regular Interest
LTM3,  REMIC 1 Regular  Interest LTM4,  REMIC 1 Regular  Interest LTM5,  REMIC 1
Regular  Interest LTM6,  REMIC 1 Regular Interest LTM7, REMIC 1 Regular Interest
LTM8,  REMIC 1 Regular  Interest LTM9,  REMIC 1 Regular  Interest LTB1,  REMIC 1
Regular Interest LTB2 and REMIC 1

                                       52
<PAGE>

Regular  Interest  LTZZ PRO RATA based on,  and to the  extent  of, one  month's
interest at the then applicable respective  Uncertificated REMIC 1 Pass- Through
Rate on the  respective  Uncertificated  Principal  Balance of each such REMIC 1
Regular Interest.

                                       53
<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

      SECTION 2.01. Conveyance of Mortgage Loans.

      The Depositor,  concurrently with the execution and delivery hereof,  does
hereby transfer,  assign,  set over and otherwise convey in trust to the Trustee
without recourse for the benefit of the  Certificateholders all the right, title
and interest of the Depositor,  including any security  interest therein for the
benefit of the  Depositor,  in and to (i) each Mortgage  Loan  identified on the
Mortgage Loan Schedule,  including the related  Cut-off Date Principal  Balance,
all interest  accruing thereon on and after the Cut-off Date and all collections
in respect of interest and principal  due after the Cut-off Date;  (ii) property
which secured each such Mortgage Loan and which has been acquired by foreclosure
or deed in lieu of foreclosure;  (iii) its interest in any insurance policies in
respect of the Mortgage Loans; (iv) the rights of the Depositor under the Master
Agreement (as assigned to the Depositor  pursuant to the terms of the Assignment
Agreement), (v) the right to receive any amounts payable under the Cap Contract,
(vi) all other assets included or to be included in the Trust Fund and (vii) all
proceeds of any of the  foregoing.  Such  assignment  includes  all interest and
principal due and  collected by the Depositor or the Servicer  after the Cut-off
Date with respect to the Mortgage Loans.

      In  connection  with such transfer and  assignment,  the  Depositor,  does
hereby deliver to and deposit with the Trustee, or the Custodian,  the following
documents  or  instruments  with  respect  to  each  Original  Mortgage  Loan so
transferred and assigned,  the following  documents or instruments (with respect
to each Mortgage Loan, a "Mortgage File"):

            (i) the original Mortgage Note,  endorsed either (A) in blank or (B)
      in the  following  form:  "Pay to the order of  JPMorgan  Chase  Bank,  as
      Trustee,  without  recourse" or with respect to any lost Mortgage Note, an
      original Lost Note Affidavit  stating that the original  mortgage note was
      lost, misplaced or destroyed, together with a copy of the related mortgage
      note; provided,  however,  that such substitutions of Lost Note Affidavits
      for original Mortgage Notes may occur only with respect to Mortgage Loans,
      the  aggregate  Cut-off  Date  Principal  Balance of which is less than or
      equal to 1.00% of the Pool Balance as of the Cut-off Date;

            (ii) the original Mortgage with evidence of recording  thereon,  and
      the  original  recorded  power of  attorney,  if the Mortgage was executed
      pursuant to a power of attorney, with evidence of recording thereon or, if
      such  Mortgage or power of attorney has been  submitted  for recording but
      has not been returned from the applicable  public  recording  office,  has
      been lost or is not otherwise available,  a copy of such Mortgage or power
      of attorney,  as the case may be, certified to be a true and complete copy
      of the original submitted for recording;

            (iii) an original  Assignment,  in form and substance acceptable for
      recording.  The Mortgage  shall be assigned  either (A) in blank or (B) to
      "JPMorgan Chase Bank, as Trustee, without recourse";

                                       54
<PAGE>

            (iv) an  original  copy of any  intervening  assignment  of Mortgage
      showing a complete chain of assignments;

            (v) the  original or a certified  copy of lender's  title  insurance
      policy; and

            (vi)  the  original  or  copies  of each  assumption,  modification,
      written assurance or substitution agreement, if any.

      The  Depositor  herewith  also delivers to the Trustee an executed copy of
the Assignment Agreement and the Master Agreement.

      If any of the  documents  referred to in Section  2.01(ii),  (iii) or (iv)
above has as of the Closing Date been submitted for recording but either (x) has
not been returned from the applicable  public  recording  office or (y) has been
lost or such public recording office has retained the original of such document,
the obligations of the Depositor to deliver such documents shall be deemed to be
satisfied  upon (1)  delivery to the Trustee or the  Custodian no later than the
Closing Date, of a copy of each such document certified by the Originator in the
case of (x) above or the applicable  public  recording office in the case of (y)
above to be a true and complete  copy of the  original  that was  submitted  for
recording and (2) if such copy is certified by the  Originator,  delivery to the
Trustee or the Custodian,  promptly upon receipt  thereof of either the original
or a copy of such document  certified by the applicable  public recording office
to be a true and complete copy of the original.  If the original  lender's title
insurance  policy,  or a certified copy thereof,  was not delivered  pursuant to
Section  2.01(v) above,  the Depositor shall deliver or cause to be delivered to
the Trustee or the Custodian,  the original or a copy of a written commitment or
interim binder or preliminary  report of title issued by the title  insurance or
escrow company, with the original or a certified copy thereof to be delivered to
the Trustee or the Custodian, promptly upon receipt thereof. The Servicer or the
Depositor shall deliver or cause to be delivered to the Trustee or the Custodian
promptly  upon  receipt  thereof any other  documents  constituting  a part of a
Mortgage  File received with respect to any Mortgage  Loan,  including,  but not
limited to, any original  documents  evidencing an assumption or modification of
any Mortgage Loan.

      Upon discovery or receipt of notice of any materially  defective  document
in, or that a document is missing  from,  a Mortgage  File,  the  Trustee  shall
enforce the  obligations  of the Originator  under the Master  Agreement to cure
such defect or deliver  such  missing  document to the Trustee or the  Custodian
within 120 days.  If the  Originator  does not cure such defect or deliver  such
missing  document  within  such time  period,  the  Trustee  shall  enforce  the
obligations of the Originator under the Master Agreement to either repurchase or
substitute for such Mortgage Loan in accordance with Section 2.03.

      The Trustee  shall enforce the  obligations  of the  Originator  under the
Master  Agreement to cause the  Assignments  which were delivered in blank to be
completed and to record all Assignments  referred to in Section 2.01(iii) hereof
and, to the extent  necessary,  in Section  2.01(iv)  hereof.  The Trustee shall
enforce the obligations of the Originator  under the Master Agreement to deliver
such assignments for recording within 180 days of the Closing Date. In the event
that any such  Assignment  is lost or  returned  unrecorded  because of a defect
therein,  the Trustee shall enforce the obligations of the Originator  under the
Master Agreement to promptly have a

                                       55
<PAGE>

substitute  Assignment  prepared or have such defect cured,  as the case may be,
and thereafter cause each such Assignment to be duly recorded.

      Notwithstanding   the  foregoing,   for  administrative   convenience  and
facilitation  of servicing  and to reduce  closing  costs,  the  Assignments  of
Mortgage shall not be required to be submitted for recording  unless the Trustee
and the  Depositor  receives  written  notice that such  failure to record would
result in a withdrawal  or a  downgrading  by any Rating Agency of the rating on
any Class of Certificates; provided, however, each Assignment shall be submitted
for recording by the Originator in the manner  described above, at no expense to
the  Trust  Fund or  Trustee,  upon the  earliest  to occur of:  (i)  reasonable
direction by the Holders of Certificates  entitled to at least 25% of the Voting
Rights,  (ii) the  occurrence  of a  Servicer  Event of  Termination,  (iii) the
occurrence of a bankruptcy, insolvency or foreclosure relating to the Seller and
(iv) the occurrence of a servicing transfer as described in Section 7.02 hereof.
In addition to the  foregoing,  the  Servicer  shall  cause each  Assignment  of
Mortgage to be recorded in  accordance  with  customary  servicing  practices in
order to convey,  upon foreclosure,  the title of any Mortgaged  Property to the
Trust as set forth in Section 3.23 hereof.  In the event of (i) through (iv) set
forth above,  the Trustee shall  enforce the  obligations  of the  Originator to
deliver such  Assignments for recording as provided  above,  promptly and in any
event  within 30 days  following  receipt of notice by the  Originator  from the
Trustee.  Notwithstanding the foregoing, if the Originator fails to pay the cost
of recording the  Assignments,  such expense will be paid by the Trustee and the
Trustee shall be reimbursed for such expenses by the Trust.

      The Servicer shall forward to the Custodian original documents  evidencing
an  assumption,  modification,  consolidation  or extension of any Mortgage Loan
entered  into in  accordance  with  this  Agreement  within  two  weeks of their
execution; provided, however, that the Servicer shall provide the Custodian with
a certified true copy of any such document  submitted for recordation within two
weeks of its execution, and shall provide the original of any document submitted
for recordation or a copy of such document  certified by the appropriate  public
recording  office to be a true and complete copy of the original within 365 days
of its submission for recordation. In the event that the Servicer cannot provide
a copy of such document certified by the public recording office within such 365
day period,  the Servicer  shall deliver to the  Custodian,  within such 365 day
period,  an Officers'  Certificate  of the Servicer which shall (A) identify the
recorded  document,  (B) state that the recorded document has not been delivered
to the  Custodian due solely to a delay caused by the public  recording  office,
(C) state the amount of time  generally  required  by the  applicable  recording
office to record and return a document  submitted for recordation,  if known and
(D)  specify  the  date the  applicable  recorded  document  is  expected  to be
delivered  to the  Custodian,  and,  upon  receipt  of a copy of  such  document
certified by the public recording office, the Servicer shall immediately deliver
such document to the Custodian.  In the event the appropriate  public  recording
office will not certify as to the accuracy of such document,  the Servicer shall
deliver a copy of such document  certified by an officer of the Servicer to be a
true and complete copy of the original to the Custodian.

      The Depositor  hereby directs the Trustee to execute,  deliver and perform
its  obligations  under the Cap Contract on the Closing Date and  thereafter  on
behalf of the Holders of the Floating  Rate  Certificates.  The  Depositor,  the
Servicer and the Holders of the Floating Rate  Certificates by their  acceptance
of such Certificates acknowledge and agree that the Trustee shall

                                       56
<PAGE>

execute, deliver and perform its obligations under the Cap Contract and shall do
so solely in its capacity as Trustee of the Trust Fund and not in its individual
capacity.

      SECTION 2.02. Acceptance by Trustee.

      Subject  to the  provisions  of  Section  2.01 and  subject  to the review
described below and any exceptions  noted on the exception  report  described in
the next  paragraph  below,  the Trustee  acknowledges  receipt of the documents
referred  to in  Section  2.01  above  and  all  other  assets  included  in the
definition  of  "Trust  Fund"  and  declares  that it holds  and will  hold such
documents and the other documents  delivered to it constituting a Mortgage File,
and that it holds or will hold all such assets and such other assets included in
the definition of "Trust Fund" in trust for the exclusive use and benefit of all
present and future Certificateholders.

      The  Trustee  agrees to execute and  deliver  (or cause the  Custodian  to
execute  and  deliver)  to the  Depositor  and the  Servicer  on or prior to the
Closing  Date an  acknowledgment  of receipt of either (i) the related  original
Mortgage  Note or (ii) a Lost Note  Affidavit,  for each Mortgage Loan (with any
exceptions noted), substantially in the form attached as Exhibit F-3 hereto.

      The Trustee agrees, for the benefit of the Certificateholders,  to review,
or that it has reviewed  pursuant to Section 2.01 (or to cause the  Custodian to
review or that it has caused the Custodian to have  reviewed) each Mortgage File
within 45 days of the Closing Date (or,  with respect to any document  delivered
after  the  Startup  Day,  within 45 days of  receipt  and with  respect  to any
Qualified  Substitute  Mortgage  Loan,  within  45  days  after  the  assignment
thereof). The Trustee further agrees, for the benefit of the Certificateholders,
to certify to the Depositor and the Servicer in substantially  the form attached
hereto as Exhibit F-1,  within 45 days of the Closing Date (or,  with respect to
any document delivered after the Startup Day, within 45 days of receipt and with
respect to any  Qualified  Substitute  Mortgage  Loan,  within 45 days after the
assignment  thereof)  that, as to each Mortgage Loan listed in the Mortgage Loan
Schedule  (other  than  any  Mortgage  Loan  paid in full or any  Mortgage  Loan
specifically  identified in the exception  report  annexed  thereto as not being
covered by such certification), (i) all documents required to be delivered to it
pursuant  Section 2.01 (other than Section  2.01(vi)) of this  Agreement  and if
actually  delivered to it, the documents required to be delivered to it pursuant
to Section 2.01(vi) of this Agreement are in its possession, (ii) such documents
have been  reviewed  by it and  appear  regular on their face and relate to such
Mortgage Loan and (iii) based on its examination of the foregoing documents, the
information  set forth in the Mortgage Loan Schedule that  corresponds  to items
(1), (3), (10),  (11),  (12),  (18),  (24) and (25, but only as to Gross Margin,
Maximum  Mortgage  Rate and  Periodic  Rate Cap) of the Mortgage  Loan  Schedule
accurately  reflects  information  set forth in the Mortgage  File. It is herein
acknowledged that, in conducting such review, the Trustee (or the Custodian,  as
applicable)  is under no duty or  obligation  to inspect,  review or examine any
such documents, instruments, certificates or other papers to determine that they
are recordable or genuine, legally enforceable,  valid or binding or appropriate
for the  represented  purpose or that they have  actually  been recorded or that
they are other than what they purport to be on their face.

      No  later  than  the  first  anniversary  date of this  Agreement,  or the
following Business Day if such first anniversary date is not a Business Day, the
Trustee  shall  deliver (or cause the

                                       57
<PAGE>

Custodian to deliver) to the Depositor and the Servicer a final certification in
the form annexed  hereto as Exhibit F-2, with any  applicable  exceptions  noted
thereon.

      If in the process of reviewing the Mortgage Files and making or preparing,
as the case may be, the  certifications  referred to above,  the Trustee (or the
Custodian, as applicable) finds any document or documents constituting a part of
a Mortgage  File to be missing or  defective  in any  material  respect,  at the
conclusion  of its  review  the  Trustee  shall so notify  the  Originator,  the
Depositor and the Servicer. In addition,  upon the discovery by the Depositor or
the  Servicer (or upon  receipt by the Trustee of written  notification  of such
breach) of a breach of any of the  representations  and  warranties  made by the
Originator in the Master Agreement or the Seller in the Assignment  Agreement in
respect of any Mortgage Loan which  materially  adversely  affects such Mortgage
Loan or the interests of the related  Certificateholders  in such Mortgage Loan,
the party  discovering such breach shall give prompt written notice to the other
parties to this Agreement.

      The  Depositor  and the Trustee  intend that the  assignment  and transfer
herein  contemplated  constitute  a sale  of the  Mortgage  Loans,  the  related
Mortgage Notes and the related documents,  conveying good title thereto free and
clear of any liens and encumbrances,  from the Depositor to the Trustee in trust
for the benefit of the  Certificateholders and that such property not be part of
the  Depositor's  estate  or  property  of the  Depositor  in the  event  of any
insolvency by the Depositor.  In the event that such conveyance is deemed to be,
or to be made as security  for, a loan,  the parties  intend that the  Depositor
shall be deemed to have  granted  and does  hereby  grant to the Trustee a first
priority  perfected security interest in all of the Depositor's right, title and
interest  in and to the  Mortgage  Loans,  the  related  Mortgage  Notes and the
related documents, and that this Agreement shall constitute a security agreement
under applicable law.

      SECTION  2.03.  Repurchase  or  Substitution  of  Mortgage  Loans by the
                      Originator or the Seller.

      (a)  Upon  discovery  or  receipt  of  written  notice  of any  materially
defective document in, or that a document is missing from, a Mortgage File or of
the  breach  by  the   Originator  or  the  Seller,   as   applicable,   of  any
representation,   warranty  or  covenant  under  the  Master  Agreement  or  the
Assignment  Agreement,  as  applicable,  in respect of any  Mortgage  Loan which
materially  adversely  affects the value of such  Mortgage  Loan or the interest
therein  of the  Certificateholders,  the  Trustee  shall  promptly  notify  the
Originator or the Seller,  as applicable,  of such defect,  missing  document or
breach and request that the  Originator  deliver  such missing  document or cure
such defect or that the  Originator  or the  Seller,  as  applicable,  cure such
breach  within  120  days  from  the  date  the  Originator  or the  Seller,  as
applicable,  was notified of such missing document, defect or breach, and if the
Originator does not deliver such missing  document or cure such defect or if the
Originator  or the  Seller,  as  applicable,  does not cure  such  breach in all
material respects during such period, the Trustee shall enforce the Originator's
obligation  under the Master  Agreement  or the  Seller's  obligation  under the
Assignment Agreement and notify the Originator or the Seller, as applicable,  of
its  obligation  to  repurchase  such  Mortgage  Loan from the Trust Fund at the
Purchase Price on or prior to the Determination Date following the expiration of
such 120 day period (subject to Section  2.03(e));  provided that, in connection
with any such breach that could not  reasonably  have been cured within such 120
day period,  if the Originator or the Seller,  as  applicable,  has commenced to
cure such breach within such 120 day period,  the  Originator or the Seller,  as
applicable, shall be

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permitted to proceed  thereafter  diligently and  expeditiously to cure the same
within  the  additional   period   provided  under  the  Assignment   Agreement.
Notwithstanding  the foregoing,  to the extent of a breach by the Originator and
the Seller of any  representation,  warranty  or covenant  under the  Assignment
Agreement in respect of any Mortgage Loan which materially adversely affects the
value of such Mortgage Loan or the interest  therein of the  Certificateholders,
the  Trustee  shall  first  request  that the  Originator  cure  such  breach or
repurchase such Mortgage Loan and if the Originator fails to cure such breach or
repurchase such Mortgage Loan within 60 days of receipt of such request from the
Trustee,  the  Trustee  shall then  request  that the Seller cure such breach or
repurchase such Mortgage Loan.

      The Purchase Price for the repurchased  Mortgage Loan shall be remitted to
the  Servicer  for deposit in the  Collection  Account,  and the  Trustee,  upon
receipt  of written  certification  from the  Servicer  of such  deposit,  shall
release to the  Originator or the Seller,  as applicable,  the related  Mortgage
File and shall execute and deliver such  instruments  of transfer or assignment,
in each case without recourse,  representation or warranty, as the Originator or
the Seller, as applicable, shall furnish to it and as shall be necessary to vest
in the  Originator  or the Seller,  as  applicable,  any Mortgage  Loan released
pursuant hereto and the Trustee shall have no further responsibility with regard
to such  Mortgage  File (it being  understood  that the  Trustee  shall  have no
responsibility  for  determining  the  sufficiency  of such  assignment  for its
intended  purpose).  In lieu of repurchasing  any such Mortgage Loan as provided
above, the Originator or the Seller, as applicable, may cause such Mortgage Loan
to be  removed  from the  Trust  Fund (in which  case it shall  become a Deleted
Mortgage Loan) and substitute one or more Qualified Substitute Mortgage Loans in
the  manner  and  subject  to the  limitations  set  forth in  Section  2.03(d);
provided,  however,  the  Originator  or the  Seller,  as  applicable,  may  not
substitute  for any Mortgage Loan which  breaches a  representation  or warranty
regarding  abusive or predatory  lending laws. It is understood  and agreed that
the  obligation of the Originator or the Seller,  as  applicable,  to cure or to
repurchase  (or to  substitute  for) any Mortgage Loan as to which a document is
missing, a material defect in a constituent  document exists or as to which such
a breach has occurred and is continuing shall constitute the sole remedy against
the Originator or the Seller, as applicable, respecting such omission, defect or
breach available to the Trustee on behalf of the Certificateholders.

      (b) Within 90 days of the earlier of discovery by the Depositor or receipt
of notice by the  Depositor  of the breach of any  representation,  warranty  or
covenant  of the  Depositor  set forth in Section  2.06,  which  materially  and
adversely affects the interests of the  Certificateholders in any Mortgage Loan,
the Depositor shall cure such breach in all material respects.

      (c) Within 90 days of the earlier of  discovery by the Servicer or receipt
of notice by the  Servicer  of the  breach of any  representation,  warranty  or
covenant  of the  Servicer  set  forth in  Section  2.05  which  materially  and
adversely affects the interests of the  Certificateholders in any Mortgage Loan,
the Servicer shall cure such breach in all material respects.

      (d) Any  substitution of Qualified  Substitute  Mortgage Loans for Deleted
Mortgage  Loans made pursuant to Section  2.03(a) must be effected  prior to the
last  Business  Day that is within two years after the Closing  Date.  As to any
Deleted  Mortgage Loan for which the  Originator or the Seller,  as  applicable,
substitutes a Qualified  Substitute  Mortgage Loan or Loans,  such  substitution
shall be effected by the Originator or the Seller, as applicable,  delivering to
the

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<PAGE>

Trustee,  for such  Qualified  Substitute  Mortgage Loan or Loans,  the Mortgage
Note, the Mortgage and the Assignment to the Trustee,  and such other  documents
and  agreements,  with all necessary  endorsements  thereon,  as are required by
Section 2.01,  together with an Officers'  Certificate  providing that each such
Qualified   Substitute  Mortgage  Loan  satisfies  the  definition  thereof  and
specifying  the  Substitution  Adjustment  (as  described  below),  if  any,  in
connection with such  substitution.  The Trustee shall  acknowledge  receipt for
such Qualified Substitute Mortgage Loan or Loans and, within 45 days thereafter,
shall  review such  documents  as  specified  in Section 2.02 and deliver to the
Depositor and the Servicer,  with respect to such Qualified  Substitute Mortgage
Loan or Loans,  a  certification  substantially  in the form attached  hereto as
Exhibit F-1, with any applicable  exceptions  noted thereon.  Within one year of
the date of  substitution,  the Trustee  shall  deliver to the Depositor and the
Servicer a  certification  substantially  in the form of Exhibit F-2 hereto with
respect to such Qualified Substitute Mortgage Loan or Loans, with any applicable
exceptions  noted  thereon.  Monthly  Payments  due with  respect  to  Qualified
Substitute Mortgage Loans in the month of substitution are not part of the Trust
Fund and will be retained by the Originator or the Seller,  as  applicable.  For
the month of substitution,  distributions to Certificateholders will reflect the
collections  and recoveries in respect of such Deleted  Mortgage Loan in the Due
Period preceding the month of substitution and the Originator or the Seller,  as
applicable,  shall  thereafter  be entitled  to retain all amounts  subsequently
received in respect of such Deleted Mortgage Loan. The Originator or the Seller,
as  applicable,  shall give or cause to be given written  notice to the Trustee,
who shall forward such notice to the Certificateholders,  that such substitution
has taken place,  shall amend the Mortgage  Loan Schedule to reflect the removal
of  such  Deleted  Mortgage  Loan  from  the  terms  of this  Agreement  and the
substitution  of the  Qualified  Substitute  Mortgage  Loan or Loans  and  shall
deliver a copy of such amended Mortgage Loan Schedule to the Trustee.  Upon such
substitution  by the  Originator or the Seller,  as  applicable,  such Qualified
Substitute Mortgage Loan or Loans shall constitute part of the Mortgage Pool and
shall  be  subject  in all  respects  to the  terms  of this  Agreement  and the
Assignment  Agreement,  including all applicable  representations and warranties
thereof included in the Assignment Agreement as of the date of substitution.

      For any  month in which  the  Originator  or the  Seller,  as  applicable,
substitutes  one or more  Qualified  Substitute  Mortgage  Loans for one or more
Deleted   Mortgage   Loans,   the  Servicer  will   determine  the  amount  (the
"Substitution Adjustment"), if any, by which the aggregate Purchase Price of all
such Deleted  Mortgage  Loans exceeds the  aggregate,  as to each such Qualified
Substitute Mortgage Loan, of the Stated Principal Balance thereof as of the date
of  substitution,  together with one month's  interest on such Stated  Principal
Balance at the applicable  Mortgage Rate. On the date of such substitution,  the
Originator or the Seller,  as applicable,  will deliver or cause to be delivered
to the  Servicer  for deposit in the  Collection  Account an amount equal to the
Substitution  Adjustment,  if any, and the Trustee,  upon receipt of the related
Qualified Substitute Mortgage Loan or Loans and certification by the Servicer of
such deposit, shall release to the Originator or the Seller, as applicable,  the
related Mortgage File or Files and shall execute and deliver such instruments of
transfer  or  assignment,  in each  case  without  recourse,  representation  or
warranty,  as the Originator or the Seller,  as applicable,  shall deliver to it
and as shall be  necessary to vest therein any Deleted  Mortgage  Loan  released
pursuant hereto.

      In addition, the Originator or the Seller, as applicable,  shall obtain at
its own  expense  and deliver to the Trustee an Opinion of Counsel to the effect
that such  substitution  will not cause

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<PAGE>

(a)  any  federal  tax  to be  imposed  on the  Trust  Fund,  including  without
limitation,  any federal tax imposed on "prohibited  transactions" under Section
860F(a)(I)  of the Code or on  "contributions  after  the  startup  date"  under
Section 860G(d)(I) of the Code or (b) any REMIC to fail to qualify as a REMIC at
any time that any Certificate is outstanding. If such Opinion of Counsel can not
be delivered,  then such  substitution  may only be effected at such time as the
required Opinion of Counsel can be given.

      (e) Upon discovery by the Depositor,  the Servicer or the Trustee that any
Mortgage Loan does not constitute a "qualified  mortgage"  within the meaning of
Section 860G(a)(3) of the Code, the party discovering such fact shall within two
Business  Days give  written  notice  thereof to the other  parties  hereto.  In
connection therewith, the Originator or the Depositor, as the case may be, shall
repurchase  or,  subject  to the  limitations  set  forth  in  Section  2.03(d),
substitute  one or more  Qualified  Substitute  Mortgage  Loans for the affected
Mortgage  Loan  within 90 days of the  earlier of  discovery  or receipt of such
notice  with  respect  to  such  affected  Mortgage  Loan.  Such  repurchase  or
substitution shall be made (i) by the Originator if the affected Mortgage Loan's
status  as a  non-qualified  mortgage  is  or  results  from  a  breach  of  any
representation, warranty or covenant made by the Originator under the Assignment
Agreement or (ii) the  Depositor,  if the affected  Mortgage  Loan's status as a
non-qualified  mortgage  is a breach of any  representation  or  warranty of the
Depositor  set  forth in  Section  2.06,  or if its  status  as a  non-qualified
mortgage is a breach of no  representation  or warranty.  Any such repurchase or
substitution shall be made in the same manner as set forth in Section 2.03(a) or
2.03(d),  if  made  by the  Originator,  or  Section  2.03(b),  if  made  by the
Depositor. The Trustee shall reconvey to the Depositor or the Originator, as the
case may be,  the  Mortgage  Loan to be  released  pursuant  hereto  in the same
manner,  and on the same  terms  and  conditions,  as it would a  Mortgage  Loan
repurchased for breach of a representation or warranty.

      SECTION 2.04. Intentionally Omitted.

      SECTION 2.05. Representations, Warranties and Covenants of the Servicer.

      The Servicer hereby represents, warrants and covenants to the Trustee, for
the  benefit  of each of the  Trustee  and  the  Certificateholders,  and to the
Depositor,  that as of the Closing Date or as of such date specifically provided
herein:

            (i) The Servicer is duly organized,  validly  existing,  and in good
      standing under the laws of the  jurisdiction  of its formation and has all
      licenses  necessary to carry on its business as now being conducted and is
      licensed, qualified and in good standing in the states where the Mortgaged
      Property is located (or is otherwise exempt under applicable law from such
      qualification)   if  the  laws  of  such  state   require   licensing   or
      qualification  in order to conduct  business of the type  conducted by the
      Servicer or to ensure the  enforceability  or  validity  of each  Mortgage
      Loan; the Servicer has the power and authority to execute and deliver this
      Agreement and to perform in accordance herewith;  the execution,  delivery
      and  performance of this Agreement  (including all instruments of transfer
      to be  delivered  pursuant  to  this  Agreement)  and  all  documents  and
      instruments  contemplated  hereby which are executed and  delivered by the
      Servicer and the consummation of the transactions contemplated hereby have
      been duly and validly authorized; this Agreement and all

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<PAGE>

      documents  and  instruments  contemplated  hereby  which are  executed and
      delivered by the  Servicer,  assuming  due  authorization,  execution  and
      delivery by the other parties  hereto,  evidences  the valid,  binding and
      enforceable obligation of the Servicer,  subject to applicable bankruptcy,
      insolvency, reorganization, moratorium or other similar laws affecting the
      enforcement of creditors'  rights generally;  and all requisite  corporate
      action  has been  taken by the  Servicer  to make this  Agreement  and all
      documents  and  instruments  contemplated  hereby  which are  executed and
      delivered  by  the  Servicer  valid  and  binding  upon  the  Servicer  in
      accordance with its terms;

            (ii)  The  consummation  of the  transactions  contemplated  by this
      Agreement are in the ordinary  course of business of the Servicer and will
      not  result  in the  material  breach  of any  term  or  provision  of the
      certificate  of formation or limited  liability  company  agreement of the
      Servicer or result in the breach of any term or provision  of, or conflict
      with or  constitute a default under or result in the  acceleration  of any
      obligation under, any agreement,  indenture or loan or credit agreement or
      other  instrument  to which the  Servicer or its  property is subject,  or
      result in the violation of any law, rule,  regulation,  order, judgment or
      decree to which the Servicer or its property is subject;

            (iii) The execution  and delivery of this  Agreement by the Servicer
      and the  performance  and compliance  with its  obligations  and covenants
      hereunder  do not require  the  consent or  approval  of any  governmental
      authority  or,  if such  consent  or  approval  is  required,  it has been
      obtained;

            (iv) [Reserved];

            (v) The Servicer  does not  believe,  nor does it have any reason or
      cause to believe, that it cannot perform each and every covenant contained
      in this Agreement;

            (vi) There is no action, suit,  proceeding or investigation  pending
      or,  to its  knowledge,  threatened  against  the  Servicer  that,  either
      individually  or in the  aggregate,  (A) may  result in any  change in the
      business,  operations,  financial  condition,  properties or assets of the
      Servicer  that might  prohibit  or  materially  and  adversely  affect the
      performance by such Servicer of its obligations  under, or the validity or
      enforceability  of,  this  Agreement,  or (B) may  result in any  material
      impairment  of the  right  or  ability  of the  Servicer  to  carry on its
      business  substantially as now conducted,  or (C) would draw into question
      the validity or enforceability of this Agreement or of any action taken or
      to  be  taken  in  connection   with  the   obligations  of  the  Servicer
      contemplated herein, or (D) would otherwise be likely to impair materially
      the ability of the Servicer to perform under the terms of this Agreement;

            (vii) Neither this Agreement nor any information,  certificate of an
      officer, statement furnished in writing or report delivered to the Trustee
      by the Servicer in connection with the  transactions  contemplated  hereby
      contains any untrue statement of a material fact;

            (viii) The Servicer will not waive any  Prepayment  Charge unless it
      is waived in accordance with the standard set forth in Section 3.01; and

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<PAGE>

            (ix) The  Servicer  has  accurately  and  fully  reported,  and will
      continue to accurately and fully report on a monthly  basis,  its borrower
      credit files for the Mortgage Loans to each of the three  national  credit
      repositories in a timely manner.

      It is  understood  and agreed  that the  representations,  warranties  and
covenants set forth in this Section 2.05 shall survive  delivery of the Mortgage
Files  to the  Trustee  and  shall  inure to the  benefit  of the  Trustee,  the
Depositor and the  Certificateholders.  Upon  discovery by any of the Depositor,
the Servicer or the Trustee of a breach of any of the foregoing representations,
warranties and covenants which materially and adversely affects the value of any
Mortgage   Loan,   Prepayment   Charge   or  the   interests   therein   of  the
Certificateholders,  the party discovering such breach shall give prompt written
notice (but in no event later than two Business Days following  such  discovery)
to the Servicer and the Trustee.  Notwithstanding the foregoing,  within 90 days
of the earlier of discovery by the Servicer or receipt of notice by the Servicer
of the breach of the  representation  or covenant of the  Servicer  set forth in
Section 2.05(viii) above which materially and adversely affects the interests of
the Holders of the Class P Certificates in any Prepayment  Charge,  the Servicer
must pay the amount of such  waived  Prepayment  Charge,  for the benefit of the
Holders  of the  Class P  Certificates,  by  depositing  such  amount  into  the
Collection  Account.  The  foregoing  shall  not,  however,  limit any  remedies
available to the  Certificateholders,  the Depositor or the Trustee on behalf of
the Certificateholders,  pursuant to the Master Agreement respecting a breach of
the representations, warranties and covenants of the Originator.

      SECTION 2.06. Representations and Warranties of the Depositor.

      The Depositor  represents and warrants to the Trust,  the Servicer and the
Trustee on behalf of the Certificateholders as follows:

            (i) This agreement constitutes a legal, valid and binding obligation
      of the Depositor, enforceable against the Depositor in accordance with its
      terms,  except as enforceability may be limited by applicable  bankruptcy,
      insolvency,  reorganization,  moratorium  or  other  similar  laws  now or
      hereafter in effect  affecting the  enforcement  of  creditors'  rights in
      general  and  except as such  enforceability  may be  limited  by  general
      principles  of equity  (whether  considered  in a proceeding  at law or in
      equity);

            (ii)  Immediately  prior to the sale and assignment by the Depositor
      to the Trustee on behalf of the Trust of each Mortgage Loan, the Depositor
      had good and marketable title to each Mortgage Loan (insofar as such title
      was  conveyed  to it by the  Seller)  subject  to no  prior  lien,  claim,
      participation  interest,  mortgage,  security interest,  pledge, charge or
      other encumbrance or other interest of any nature;

            (iii) As of the Closing  Date,  the Depositor  has  transferred  all
      right,  title and interest in the Mortgage  Loans to the Trustee on behalf
      of the Trust;

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

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<PAGE>

            (v) The Depositor has been duly incorporated and is validly existing
      as a corporation  in good standing  under the laws of Delaware,  with full
      corporate  power and  authority to own its assets and conduct its business
      as presently being conducted;

            (vi)  The   Depositor  is  not  in  violation  of  its  articles  of
      incorporation or by-laws or in default in the performance or observance of
      any material obligation, agreement, covenant or condition contained in any
      contract,  indenture,  mortgage,  loan  agreement,  note,  lease  or other
      instrument  to  which  the  Depositor  is a party  or by  which  it or its
      properties  may be bound,  which  default  might  result  in any  material
      adverse changes in the financial condition,  earnings, affairs or business
      of the  Depositor  or which  might  materially  and  adversely  affect the
      properties or assets, taken as a whole, of the Depositor;

            (vii) The execution,  delivery and  performance of this Agreement by
      the  Depositor,  and the  consummation  of the  transactions  contemplated
      thereby,  do not and will not result in a material  breach or violation of
      any of the terms or provisions  of, or, to the knowledge of the Depositor,
      constitute a default under, any indenture,  mortgage,  deed of trust, loan
      agreement or other  agreement or  instrument  to which the  Depositor is a
      party or by which the  Depositor  is bound or to which any of the property
      or assets of the Depositor is subject, nor will such actions result in any
      violation of the provisions of the articles of incorporation or by-laws of
      the  Depositor  or,  to the  best  of the  Depositor's  knowledge  without
      independent investigation, any statute or any order, rule or regulation of
      any court or  governmental  agency or body  having  jurisdiction  over the
      Depositor or any of its properties or assets  (except for such  conflicts,
      breaches,  violations  and  defaults as would not have a material  adverse
      effect on the ability of the  Depositor to perform its  obligations  under
      this Agreement);

            (viii)  To  the  best  of  the  Depositor's  knowledge  without  any
      independent  investigation,  no consent, approval,  authorization,  order,
      registration or qualification of or with any court or governmental  agency
      or body of the United States or any other jurisdiction is required for the
      issuance of the Certificates,  or the consummation by the Depositor of the
      other transactions  contemplated by this Agreement,  except such consents,
      approvals,  authorizations,  registrations or qualifications as (a) may be
      required under State securities or Blue Sky laws, (b) have been previously
      obtained or (c) the  failure of which to obtain  would not have a material
      adverse  effect on the  performance  by the  Depositor of its  obligations
      under, or the validity or enforceability of, this Agreement; and

            (ix) There are no actions,  proceedings  or  investigations  pending
      before  or,  to  the  Depositor's  knowledge,  threatened  by  any  court,
      administrative  agency or other tribunal to which the Depositor is a party
      or of which any of its properties is the subject:  (a) which if determined
      adversely to the  Depositor  would have a material  adverse  effect on the
      business,  results of operations or financial  condition of the Depositor;
      (b) asserting the  invalidity of this Agreement or the  Certificates;  (c)
      seeking to prevent the issuance of the Certificates or the consummation by
      the Depositor of any of the  transactions  contemplated by this Agreement,
      as the case may be; or (d) which might materially and adversely affect the
      performance by the Depositor of its obligations  under, or the validity or
      enforceability of, this Agreement.

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<PAGE>

      SECTION 2.07. Issuance of Certificates.

      The Trustee  acknowledges  the  assignment to it of the Mortgage Loans and
the delivery to it of the Mortgage Files,  subject to the provisions of Sections
2.01 and 2.02,  together with the assignment to it of all other assets  included
in the Trust Fund,  receipt of which is hereby  acknowledged.  Concurrently with
such assignment and delivery and in exchange therefor, the Trustee,  pursuant to
the written  request of the Depositor  executed by an officer of the  Depositor,
has executed, authenticated and delivered to or upon the order of the Depositor,
the  Certificates in authorized  denominations.  The interests  evidenced by the
Certificates  constitute the entire beneficial  ownership  interest in the Trust
Fund.

      SECTION 2.08.  [Reserved].

      SECTION  2.09. Conveyance of REMIC Regular  Interests and Acceptance of
                     REMIC 1,  REMIC 2,  REMIC 3 and REMIC 4 by the  Trustee;
                     Issuance of Certificates.

      (a) The Depositor,  concurrently  with the execution and delivery  hereof,
does hereby  transfer,  assign,  set over and  otherwise  convey in trust to the
Trustee without  recourse all the right,  title and interest of the Depositor in
and to the assets  described in the definition of REMIC 1 for the benefit of the
holders  of the REMIC 1 Regular  Interests  (which are  uncertificated)  and the
Class R  Certificates  (in  respect  of the Class  R-1  Interest).  The  Trustee
acknowledges  receipt of the assets  described in the  definition of REMIC 1 and
declares that it holds and will hold the same in trust for the exclusive use and
benefit  of the  holders  of the  REMIC 1  Regular  Interests  and  the  Class R
Certificates (in respect of the Class R-1 Interest).  The interests evidenced by
the Class R-1 Interest, together with the REMIC 1 Regular Interests,  constitute
the entire beneficial ownership interest in REMIC 1.

      (b) The Depositor,  concurrently  with the execution and delivery  hereof,
does hereby  transfer,  assign,  set over and  otherwise  convey in trust to the
Trustee without  recourse all the right,  title and interest of the Depositor in
and to the REMIC 1 Regular Interests (which are  uncertificated) for the benefit
of the  Holders of the Regular  Certificates  and the Class R  Certificates  (in
respect of the Class R-2  Interest).  The  Trustee  acknowledges  receipt of the
REMIC 1 Regular  Interests  and declares that it holds and will hold the same in
trust  for  the  exclusive  use  and  benefit  of the  Holders  of  the  Regular
Certificates  and  the  Class  R  Certificates  (in  respect  of the  Class  R-2
Interest). The interests evidenced by the Class R-2 Interest,  together with the
Regular  Certificates  (other  than the  Class C  Certificates  and the  Class P
Certificates),  the Class C Interest  and the Class P Interest,  constitute  the
entire beneficial ownership interest in REMIC 2.

      (c) The Depositor,  concurrently  with the execution and delivery  hereof,
does hereby  transfer,  assign,  set over and  otherwise  convey in trust to the
Trustee without  recourse all the right,  title and interest of the Depositor in
and to the Class C Interest  (which is  uncertificated)  for the  benefit of the
Holders of the Class C Certificates  and the Class R-X  Certificates (in respect
of the Class R-3  Interest).  The  Trustee  acknowledges  receipt of the Class C
Interest  and  declares  that it holds  and will  hold the same in trust for the
exclusive  use and  benefit of the Holders of the Class C  Certificates  and the
Class R-X  Certificates  (in respect of the Class R-3  Interest).  The interests

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<PAGE>

evidenced by the Class R-3  Interest,  together  with the Class C  Certificates,
constitute the entire beneficial ownership interest in REMIC 3.

      (d) The Depositor,  concurrently  with the execution and delivery  hereof,
does hereby  transfer,  assign,  set over and  otherwise  convey in trust to the
Trustee without  recourse all the right,  title and interest of the Depositor in
and to the Class P Interest  (which is  uncertificated)  for the  benefit of the
Holders of the Class P Certificates  and the Class R-X  Certificates (in respect
of the Class R-4  Interest).  The  Trustee  acknowledges  receipt of the Class P
Interest  and  declares  that it holds  and will  hold the same in trust for the
exclusive  use and  benefit of the Holders of the Class P  Certificates  and the
Class R-X  Certificates  (in respect of the Class R-4  Interest).  The interests
evidenced by the Class R-4  Interest,  together  with the Class P  Certificates,
constitute the entire beneficial ownership interest in REMIC 4.

      (e)  Concurrently  with (i) the  assignment and delivery to the Trustee of
REMIC 1 and the  acceptance  by the Trustee  thereof,  pursuant to Section 2.01,
Section 2.02 and subsection (a) hereof,  (ii) the assignment and delivery to the
Trustee of REMIC 2 (including the Residual  Interest therein  represented by the
Class R-2 Interest), (iii) the assignment and delivery to the Trustee of REMIC 3
(including the Residual Interest therein  represented by the Class R-3 Interest)
and (iv) the  assignment  and delivery to the Trustee of REMIC 4 (including  the
Residual  Interest  therein  represented  by the  Class  R-4  Interest)  and the
acceptance  by the Trustee  thereof,  pursuant  to  subsection  (c) hereof,  the
Trustee, pursuant to the written request of the Depositor executed by an officer
of the Depositor, has executed, authenticated and delivered to or upon the order
of the  Depositor,  (A) the Class R  Certificates  in  authorized  denominations
evidencing  the Class R-1  Interest and the Class R-2 Interest and (B) the Class
R-X Certificates in authorized  denominations  evidencing the Class R-3 Interest
and the Class R-4 Interest.

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<PAGE>

                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                              OF THE MORTGAGE LOANS

      SECTION 3.01. Servicer to Act as Servicer.

      The Servicer  shall service and administer the Mortgage Loans on behalf of
the  Trust  and  in  the  best   interests   of  and  for  the  benefit  of  the
Certificateholders (as determined by the Servicer in its reasonable judgment) in
accordance  with the terms of this  Agreement and the Mortgage Loans and, to the
extent  consistent  with such terms, in the same manner in which it services and
administers   similar   mortgage  loans  for  its  own  portfolio,   giving  due
consideration  to customary and usual standards of practice of mortgage  lenders
and loan servicers administering similar mortgage loans but without regard to:

            (i) any  relationship  that the Servicer,  any  Sub-Servicer  or any
      Affiliate  of the Servicer or any  Sub-Servicer  may have with the related
      Mortgagor;

            (ii)  the  ownership  or  non-ownership  of any  Certificate  by the
      Servicer or any Affiliate of the Servicer;

            (iii)  the  Servicer's  obligation  to make  Advances  or  Servicing
      Advances; or

            (iv)  the  Servicer's  or  any   Sub-Servicer's   right  to  receive
      compensation for its services  hereunder or with respect to any particular
      transaction.

      To the extent  consistent with the foregoing,  the Servicer (a) shall seek
the timely and complete recovery of principal and interest on the Mortgage Notes
and (b) shall  waive (or permit a Sub-  Servicer to waive) a  Prepayment  Charge
only  under  the  following  circumstances:  (i) such  waiver  is  standard  and
customary in servicing  similar  Mortgage  Loans,  (ii) such waiver relates to a
default  or a  reasonably  foreseeable  default  and  would,  in the  reasonable
judgment  of the  Servicer,  maximize  recovery  of total  proceeds  taking into
account the value of such Prepayment Charge and the related Mortgage Loan, (iii)
the  collection  of such  Prepayment  Charge would be in violation of applicable
laws or (iv) such waiver is in accordance with the Servicer's internal policies.
If a Prepayment Charge is waived as permitted by meeting the standard  described
in clause (iii)  above,  then the Servicer  shall make  commercially  reasonable
efforts to enforce the Trustee's rights under the Assignment Agreement including
the  obligation of the  Originator  to pay the amount of such waived  Prepayment
Charge to the Servicer for deposit in the Collection  Account for the benefit of
the  Holders of the Class P  Certificates.  If the  Servicer  makes a good faith
determination,  as  evidenced  by an  officer's  certificate  delivered  by  the
Servicer to the Trustee, that the Servicer's efforts are not reasonably expected
to be successful in enforcing  such rights,  it shall notify the Trustee of such
failure,  and the Trustee shall enforce the obligation of the  Originator  under
the  Assignment  Agreement  to pay to the  Servicer  the  amount of such  waived
Prepayment  Charge. If a Prepayment Charge is waived as permitted by meeting the
standard  described in clause (iv) above,  then the Servicer  shall  deposit the
amount of such  waived  Prepayment  Charge  in the  Collection  Account  for the
benefit of the Holders of the Class P Certificates.

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<PAGE>

      Subject only to the  above-described  servicing standards and the terms of
this Agreement and of the Mortgage Loans, the Servicer shall have full power and
authority,  acting alone or through Sub-  Servicers as provided in Section 3.02,
to do or cause to be done any and all things in connection  with such  servicing
and  administration  which it may deem necessary or desirable.  Without limiting
the generality of the foregoing, the Servicer, in the name of the Trust Fund, is
hereby  authorized  and  empowered by the Trustee when the Servicer  believes it
appropriate in its best judgment in accordance with the Servicing  Standard,  to
execute and deliver, on behalf of the  Certificateholders  and the Trustee,  any
and all  instruments  of  satisfaction  or  cancellation,  or of partial or full
release or discharge, and all other comparable instruments,  with respect to the
Mortgage  Loans  and  the  Mortgaged  Properties  and to  institute  foreclosure
proceedings  or  obtain a  deed-in-lieu  of  foreclosure  so as to  convert  the
ownership  of such  properties,  and to hold or cause  to be held  title to such
properties, on behalf of the Trustee and Certificateholders.  The Servicer shall
service and administer the Mortgage Loans in accordance  with  applicable  state
and federal law and shall provide to the Mortgagors  any reports  required to be
provided to them thereby.  The Servicer shall also comply in the  performance of
this Agreement with all reasonable  rules and requirements of each insurer under
any standard hazard insurance  policy.  Subject to Section 3.17, within five (5)
days of the Closing Date,  the Trustee shall execute and furnish to the Servicer
and any  Sub-Servicer  any  limited  powers of attorney in the form of Exhibit I
hereto and other  documents  necessary or  appropriate to enable the Servicer or
any  Sub-Servicer  to  carry  out  their  servicing  and  administrative  duties
hereunder; provided, such limited powers of attorney or other documents shall be
prepared by the Servicer and submitted to the Trustee for execution. The Trustee
shall not be liable for the actions by the Servicer or any  Sub-Servicers  under
such powers of attorney and shall be  indemnified  by the Servicer (from its own
funds without any right of reimbursement from the Collection  Account),  for any
costs,  liabilities or expenses  incurred by the Trustee in connection  with the
use or misuse of such powers of attorney..

      Subject to Section 3.09 hereof,  in  accordance  with the standards of the
preceding paragraph,  the Servicer, on escrowed accounts, shall advance or cause
to be advanced  funds as necessary  for the purpose of effecting  the payment of
taxes and  assessments  on the Mortgaged  Properties,  which  advances  shall be
Servicing Advances  reimbursable in the first instance from related  collections
from the Mortgagors pursuant to Section 3.09, and further as provided in Section
3.11.  Any cost  incurred by the Servicer or by  Sub-Servicers  in effecting the
payment of taxes and  assessments  on a Mortgaged  Property  shall not,  for the
purpose of  calculating  distributions  to  Certificateholders,  be added to the
unpaid Stated Principal  Balance of the related  Mortgage Loan,  notwithstanding
that the terms of such Mortgage Loan so permit.

      Notwithstanding  anything in this Agreement to the contrary,  the Servicer
may not make any future  advances  with  respect to a Mortgage  Loan  (except as
provided in Section 4.04) and the Servicer shall not (i) permit any modification
with respect to any Mortgage Loan that would change the Mortgage Rate, reduce or
increase the Stated  Principal  Balance  (except for  reductions  resulting from
actual payments of principal) or change the final maturity date on such Mortgage
Loan,  (unless,  in any such case, as provided in Section 3.07, the Mortgagor is
in default with respect to the Mortgage Loan or such default is, in the judgment
of the Servicer, reasonably foreseeable) or (ii) permit any modification, waiver
or  amendment  of any term of any  Mortgage  Loan that  would both (A) effect an
exchange or  reissuance of such Mortgage Loan under Section 1001 of the Code (or
Treasury  regulations  promulgated  thereunder)  and (B) cause any REMIC created
hereunder to

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<PAGE>

fail to  qualify  as a REMIC  under  the  Code or the  imposition  of any tax on
"prohibited  transactions" or  "contributions  after the startup date" under the
REMIC Provisions.

      SECTION 3.02. Sub-Servicing Agreements Between Servicer and Sub-Servicers.

      (a)  The   Servicer   may  enter  into   Sub-Servicing   Agreements   with
Sub-Servicers,  which may be Affiliates  of the Servicer,  for the servicing and
administration  of the Mortgage Loans;  provided,  however,  such  sub-servicing
arrangement  and the terms of the related  Sub-Servicing  Agreement must provide
for the  servicing  of the  Mortgage  Loans  in a  manner  consistent  with  the
servicing arrangement  contemplated hereunder.  The Trustee is hereby authorized
to acknowledge,  at the request of the Servicer, any Sub-Servicing Agreement. No
such  acknowledgment  shall be deemed to imply that the Trustee has consented to
any such  Sub-Servicing  Agreement,  has passed upon whether such  Sub-Servicing
Agreement  meets the  requirements  applicable to  Sub-Servicing  Agreements set
forth in this Agreement or has passed upon whether such Sub-Servicing  Agreement
is otherwise permitted under this Agreement.

      Each  Sub-Servicer  shall be (i)  authorized  to transact  business in the
state or states  where the  related  Mortgaged  Properties  it is to service are
situated,  if and  to the  extent  required  by  applicable  law to  enable  the
Sub-Servicer  to perform its obligations  hereunder and under the  Sub-Servicing
Agreement and (ii) a Freddie Mac or Fannie Mae approved mortgage servicer.  Each
Sub-Servicing Agreement must impose on the Sub-Servicer  requirements conforming
to the  provisions  set forth in Section  3.08 and provide for  servicing of the
Mortgage Loans  consistent with the terms of this  Agreement.  The Servicer will
examine  each  Sub-Servicing  Agreement  and will be  familiar  with  the  terms
thereof. The terms of any Sub- Servicing Agreement will not be inconsistent with
any of the  provisions of this  Agreement.  Any  variation in any  Sub-Servicing
Agreements  from the  provisions set forth in Section 3.08 relating to insurance
or priority  requirements of Sub-Servicing  Accounts,  or credits and charges to
the  Sub-Servicing  Accounts  or the  timing and  amount of  remittances  by the
Sub-Servicers to the Servicer,  are conclusively  deemed to be inconsistent with
this  Agreement  and  therefore  prohibited.  The Servicer  shall deliver to the
Trustee  copies  of  all  Sub-Servicing   Agreements,   and  any  amendments  or
modifications  thereof,  promptly upon the Servicer's  execution and delivery of
such instruments.

      (b) As part of its servicing activities hereunder,  the Servicer,  for the
benefit of the Trustee and the Certificateholders, shall enforce the obligations
of each  Sub-Servicer  under the  related  Sub-Servicing  Agreement,  including,
without  limitation,  any  obligation  to make advances in respect of delinquent
payments as required by a Sub-Servicing Agreement. Such enforcement,  including,
without   limitation,   the  legal   prosecution   of  claims,   termination  of
Sub-Servicing  Agreements,  and the pursuit of other appropriate remedies, shall
be in such  form  and  carried  out to such an  extent  and at such  time as the
Servicer,  in its good faith business judgment,  would require were it the owner
of the  related  Mortgage  Loans.  The  Servicer  shall  pay the  costs  of such
enforcement at its own expense, and shall be reimbursed therefor only (i) from a
general recovery  resulting from such  enforcement,  to the extent, if any, that
such recovery  exceeds all amounts due in respect of the related Mortgage Loans,
or (ii) from a specific  recovery of costs,  expenses or attorneys' fees against
the party against whom such enforcement is directed.

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<PAGE>

      SECTION 3.03. Successor Sub-Servicers.

      The Servicer  shall be entitled to terminate any  Sub-Servicing  Agreement
and the rights and obligations of any Sub-Servicer pursuant to any Sub-Servicing
Agreement in  accordance  with the terms and  conditions  of such  Sub-Servicing
Agreement.  In the  event of  termination  of any  Sub-Servicer,  all  servicing
obligations of such Sub-Servicer shall be assumed simultaneously by the Servicer
without any act or deed on the part of such  Sub-Servicer  or the Servicer,  and
the Servicer either shall service  directly the related  Mortgage Loans or shall
enter  into a  Sub-Servicing  Agreement  with  a  successor  Sub-Servicer  which
qualifies under Section 3.02.

      Any  Sub-Servicing   Agreement  shall  include  the  provision  that  such
agreement may be  immediately  terminated by the Servicer or the Trustee (if the
Trustee is acting as Servicer) without fee, in accordance with the terms of this
Agreement, in the event that the Servicer (or the Trustee, if such party is then
acting as Servicer) shall, for any reason, no longer be the Servicer  (including
termination due to a Servicer Event of Termination).

      SECTION 3.04. Liability of the Servicer.

      Notwithstanding  any  Sub-Servicing  Agreement or the  provisions  of this
Agreement  relating to  agreements  or  arrangements  between the Servicer and a
Sub-Servicer  or reference to actions taken through a Sub-Servicer or otherwise,
the Servicer shall remain  obligated and primarily liable to the Trustee and the
Certificateholders  for the servicing and administering of the Mortgage Loans in
accordance  with the  provisions  of Section  3.01  without  diminution  of such
obligation  or  liability  by  virtue  of  such  Sub-  Servicing  Agreements  or
arrangements or by virtue of  indemnification  from the  Sub-Servicer and to the
same extent and under the same terms and  conditions  as if the  Servicer  alone
were  servicing and  administering  the Mortgage  Loans.  The Servicer  shall be
entitled to enter into any agreement with a Sub- Servicer for indemnification of
the Servicer by such  Sub-Servicer and nothing contained in this Agreement shall
be deemed to limit or modify such indemnification.

      SECTION 3.05.  No Contractual  Relationship  Between  Sub-Servicers and
                     the Trustee or Certificateholders.

      Any Sub-Servicing  Agreement that may be entered into and any transactions
or services  relating to the  Mortgage  Loans  involving a  Sub-Servicer  in its
capacity as such shall be deemed to be between the Sub-Servicer and the Servicer
alone, and the Trustee or Certificateholders shall not be deemed parties thereto
and shall  have no  claims,  rights,  obligations,  duties or  liabilities  with
respect to the  Sub-Servicer  except as set forth in Section 3.06.  The Servicer
shall be solely liable for all fees owed by it to any Sub-Servicer, irrespective
of whether the Servicer's  compensation pursuant to this Agreement is sufficient
to pay such fees.

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<PAGE>

      SECTION 3.06.  Assumption or Termination of Sub-Servicing Agreements by
                     Trustee.

      In the event the  Servicer  shall for any reason no longer be the servicer
(including by reason of the occurrence of a Servicer Event of Termination),  the
Trustee,  pursuant to its duties under Section 7.02,  shall thereupon assume all
of the rights and obligations of the Servicer under each Sub-Servicing Agreement
that the Servicer may have entered into,  unless the Trustee elects to terminate
any Sub- Servicing Agreement in accordance with its terms as provided in Section
3.03. Upon such  assumption,  the Trustee (or the successor  servicer  appointed
pursuant to Section  7.02)  shall be deemed,  subject to Section  3.03,  to have
assumed all of the departing  Servicer's  interest  therein and to have replaced
the departing  Servicer as a party to each  Sub-Servicing  Agreement to the same
extent as if each  Sub-Servicing  Agreement  had been  assigned to the  assuming
party,  except that (i) the departing  Servicer shall not thereby be relieved of
any liability or obligations under any Sub-Servicing Agreement that arose before
it ceased to be the  Servicer  and (ii)  neither the  Trustee nor any  successor
Servicer  shall be deemed to have  assumed any  liability or  obligation  of the
Servicer that arose before it ceased to be the Servicer.

      The Servicer at its expense shall, upon request of the Trustee, deliver to
the assuming  party all  documents  and records  relating to each  Sub-Servicing
Agreement  and the  Mortgage  Loans then being  serviced  and an  accounting  of
amounts  collected  and held by or on behalf of it, and  otherwise  use its best
efforts  to effect the  orderly  and  efficient  transfer  of the  Sub-Servicing
Agreements to the assuming party. All Servicing  Transfer Costs shall be paid by
the predecessor  Servicer upon presentation of reasonable  documentation of such
costs, and if such predecessor  Servicer  defaults in its obligation to pay such
costs,  such costs  shall be paid by the  successor  Servicer or the Trustee (in
which case the  successor  Servicer  or the  Trustee,  as  applicable,  shall be
entitled to reimbursement therefor from the assets of the Trust).

      SECTION 3.07. Collection of Certain Mortgage Loan Payments.

      The  Servicer  shall  make  reasonable  efforts,  in  accordance  with the
Servicing  Standard,  to  collect  all  payments  called for under the terms and
provisions of the Mortgage Loans and the provisions of any applicable  insurance
policies provided to the Servicer.  Consistent with the foregoing,  the Servicer
may in its discretion  (i) waive any late payment charge or, if applicable,  any
penalty  interest,  or any provisions of any Mortgage Loan requiring the related
Mortgagor to submit to mandatory  arbitration  with respect to disputes  arising
thereunder  or (ii)  extend  the due dates  for the  Monthly  Payments  due on a
Mortgage Note for a period of not greater than 180 days; provided, however, that
any  extension  pursuant to clause (ii) above shall not affect the  amortization
schedule of any Mortgage Loan for purposes of any computation hereunder,  except
as provided below. In the event of any such arrangement  pursuant to clause (ii)
above, the Servicer shall make timely Advances on such Mortgage Loan during such
extension  pursuant  to Section  4.04 and in  accordance  with the  amortization
schedule of such  Mortgage Loan without  modification  thereof by reason of such
arrangement.  Notwithstanding the foregoing, in the event that any Mortgage Loan
is in default or, in the judgment of the  Servicer,  such default is  reasonably
foreseeable,  the Servicer,  consistent  with the standards set forth in Section
3.01, may also waive,  modify or vary any term of such Mortgage Loan  (including
modifications  that would  change the  Mortgage  Rate,  forgive  the  payment of
principal or interest or extend the final maturity date of such Mortgage  Loan),
accept payment

                                       71
<PAGE>

from the related  Mortgagor of an amount less than the Stated Principal  Balance
in final  satisfaction of such Mortgage Loan, or consent to the  postponement of
strict  compliance  with any such  term or  otherwise  grant  indulgence  to any
Mortgagor (any and all such waivers,  modifications,  variances,  forgiveness of
principal or interest,  postponements,  or indulgences  collectively referred to
herein as "forbearance"). The Servicer's analysis supporting any forbearance and
the conclusion that any forbearance meets the standards of Section 3.01 shall be
reflected in writing in the Mortgage File.

      SECTION 3.08. Sub-Servicing Accounts.

      In those cases where a Sub-Servicer  is servicing a Mortgage Loan pursuant
to a Sub- Servicing  Agreement,  the Sub-Servicer  will be required to establish
and maintain one or more accounts (collectively,  the "Sub-Servicing  Account").
The Sub-Servicing Account shall be an Eligible Account and shall comply with all
requirements  of  this  Agreement  relating  to  the  Collection  Account.   The
Sub-Servicer  shall  deposit in the  clearing  account  in which it  customarily
deposits  payments and  collections  on mortgage  loans in  connection  with its
mortgage loan servicing  activities on a daily basis,  and in no event more than
one  Business  Day after the  Sub-Servicer's  receipt  thereof,  all proceeds of
Mortgage Loans received by the Sub-Servicer  less its servicing  compensation to
the  extent  permitted  by the  Sub-Servicing  Agreement,  and shall  thereafter
deposit such  amounts in the  Sub-Servicing  Account,  in no event more than two
Business  Days  after  the  receipt  of such  amounts.  The  Sub-Servicer  shall
thereafter  deposit  such  proceeds  in the  Collection  Account  or remit  such
proceeds to the  Servicer for deposit in the  Collection  Account not later than
two  Business  Days  after the  deposit  of such  amounts  in the  Sub-Servicing
Account.  For purposes of this  Agreement,  the Servicer shall be deemed to have
received  payments on the Mortgage  Loans when the  Sub-Servicer  receives  such
payments.

      SECTION 3.09.  Collection of Taxes,  Assessments and Similar Items; Escrow
                     Accounts.

      To the extent  required by the related  Mortgage  Note, the Servicer shall
establish and maintain,  or cause to be established and maintained,  one or more
accounts  (the  "Escrow  Accounts"),  into  which all Escrow  Payments  shall be
deposited and retained. Escrow Accounts shall be Eligible Accounts. The Servicer
shall deposit in the clearing account in which it customarily  deposits payments
and collections on mortgage loans in connection with its mortgage loan servicing
activities,  all Escrow Payments  collected on account of the Mortgage Loans and
shall  deposit in the Escrow  Accounts,  in no event more than two Business Days
after the receipt of such Escrow  Payments,  all Escrow  Payments  collected  on
account of the Mortgage  Loans for the purpose of  effecting  the payment of any
such items as required under the terms of this Agreement. Withdrawals of amounts
from  an  Escrow  Account  may be made  only to (i)  effect  payment  of  taxes,
assessments,  hazard insurance premiums, and comparable items in a manner and at
a time that  assures that the lien  priority of the Mortgage is not  jeopardized
(or, with respect to the payment of taxes, in a manner and at a time that avoids
the loss of the  Mortgaged  Property due to a tax sale or the  foreclosure  as a
result of a tax lien);  (ii)  reimburse the Servicer (or a  Sub-Servicer  to the
extent  provided  in  the  related  Sub-Servicing   Agreement)  out  of  related
collections  for any  Servicing  Advances  made  pursuant to Section  3.01 (with
respect to taxes and  assessments)  and  Section  3.14  (with  respect to hazard
insurance);  (iii)  refund to  Mortgagors  any sums as may be  determined  to be
overages;  (iv) pay interest,  if required and as described below, to Mortgagors
on balances in the Escrow Account; or

                                       72
<PAGE>

(v) clear and terminate the Escrow Account at the  termination of the Servicer's
obligations  and  responsibilities  in respect of the Mortgage  Loans under this
Agreement in accordance  with Article X. In the event the Servicer shall deposit
in a Escrow Account any amount not required to be deposited  therein,  it may at
any time withdraw such amount from such Escrow Account,  any provision herein to
the  contrary  notwithstanding.   The  Servicer  will  be  responsible  for  the
administration  of the Escrow  Accounts and will be obligated to make  Servicing
Advances to such  accounts when and as necessary to avoid the lapse of insurance
coverage on the  Mortgaged  Property,  or which the  Servicer  knows,  or in the
exercise of the required standard of care of the Servicer hereunder should know,
is  necessary to avoid the loss of the  Mortgaged  Property due to a tax sale or
the foreclosure as a result of a tax lien. If any such payment has not been made
and the  Servicer  receives  notice of a tax lien with  respect to the  Mortgage
being  imposed,  the Servicer  will,  within 10 Business Days of receipt of such
notice,  advance or cause to be advanced funds  necessary to discharge such lien
on the Mortgaged Property.  As part of its servicing duties, the Servicer or any
Sub-Servicers  shall  pay to the  Mortgagors  interest  on funds  in the  Escrow
Accounts,  to the extent required by law and, to the extent that interest earned
on funds in the Escrow Accounts is  insufficient,  to pay such interest from its
or their own funds, without any reimbursement  therefor. The Servicer may pay to
itself any excess interest on funds in the Escrow  Accounts,  to the extent such
action is in  conformity  with the Servicing  Standard,  is permitted by law and
such  amounts are not required to be paid to  Mortgagors  or used for any of the
other purposes set forth above.

      SECTION 3.10. Collection Account and Distribution Account.

      (a) On  behalf  of the  Trust  Fund,  the  Servicer  shall  establish  and
maintain, or cause to be established and maintained,  one or more accounts (such
account or accounts, the "Collection Account"), held in trust for the benefit of
the  Trustee  and the  Certificateholders.  On  behalf of the  Trust  Fund,  the
Servicer shall deposit or cause to be deposited in the Collection Account, in no
event more than two Business Days after the Servicer's  receipt thereof,  as and
when received or as otherwise  required  hereunder,  the following  payments and
collections received or made by it subsequent to the Cut-off Date (other than in
respect of  principal  or  interest on the  Mortgage  Loans due on or before the
Cut-off Date) or payments (other than Principal  Prepayments)  received by it on
or prior to the Cut-off Date but allocable to a Due Period subsequent thereto:

            (i) all  payments  on  account  of  principal,  including  Principal
      Prepayments (but not Prepayment Charges), on the Mortgage Loans;

            (ii) all payments on account of interest (net of the Servicing  Fee)
      on each Mortgage Loan;

            (iii)  all  Insurance  Proceeds,  Liquidation  Proceeds,  Subsequent
      Recoveries and  condemnation  proceeds  (other than proceeds  collected in
      respect of any particular REO Property and amounts paid in connection with
      a  purchase  of  Mortgage  Loans and REO  Properties  pursuant  to Section
      10.01);

            (iv) any amounts  required to be deposited  pursuant to Section 3.12
      in  connection  with any losses  realized on  Permitted  Investments  with
      respect to funds held in the Collection Account;

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            (v) any amounts required to be deposited by the Servicer pursuant to
      the second  paragraph of Section  3.14(a) in respect of any blanket policy
      deductibles;

            (vi) all proceeds of any Mortgage Loan  repurchased  or purchased in
      accordance with Section 2.03, Section 3.16(c) or Section 10.01;

            (vii) all  amounts  required  to be  deposited  in  connection  with
      Substitution Adjustments pursuant to Section 2.03; and

            (viii) all  Prepayment  Charges  collected  by the  Servicer and any
      Servicer   Prepayment  Charge  Payment  Amounts  in  connection  with  the
      Principal Prepayment of any of the Mortgage Loans.

      The foregoing  requirements for deposit in the Collection Account shall be
exclusive,  it being understood and agreed that, without limiting the generality
of the  foregoing,  payments  in the  nature of  Servicing  Fees,  late  payment
charges, assumption fees, insufficient funds charges and ancillary income (other
than Prepayment Charges) need not be deposited by the Servicer in the Collection
Account and may be retained by the Servicer as additional  compensation.  In the
event the  Servicer  shall  deposit  in the  Collection  Account  any amount not
required to be deposited  therein,  it may at any time withdraw such amount from
the Collection Account, any provision herein to the contrary notwithstanding.

      (b) On behalf of the Trust Fund, the Trustee shall  establish and maintain
one or more accounts  (such account or accounts,  the  "Distribution  Account"),
held in trust for the  benefit of the  Trustee  and the  Certificateholders.  On
behalf  of the  Trust  Fund,  the  Servicer  shall  deliver  to the  Trustee  in
immediately available funds for deposit in the Distribution Account on or before
1:00 p.m. New York time on the  Servicer  Remittance  Date,  that portion of the
Available Funds  (calculated  without regard to the references in the definition
thereof to amounts that may be withdrawn from the Distribution  Account) for the
related  Distribution Date then on deposit in the Collection Account, the amount
of all Prepayment  Charges collected during the applicable  Prepayment Period by
the Servicer and Servicer  Prepayment  Charge Payment Amounts in connection with
the  Principal  Prepayment  of any of the Mortgage  Loans then on deposit in the
Collection Account,  the amount of any funds reimbursable to an Advancing Person
pursuant  to Section  3.29  (unless  such  amounts are to be remitted in another
manner as  specified  in the  documentation  establishing  the  related  Advance
Facility).

      (c) Funds in the Collection  Account and the  Distribution  Account may be
invested in Permitted Investments in accordance with the provisions set forth in
Section 3.12.  The Servicer  shall give notice to the Trustee of the location of
the Collection Account maintained by it when established and prior to any change
thereof.  The Trustee shall give notice to the Servicer and the Depositor of the
location of the  Distribution  Account when  established and prior to any change
thereof.

      (d) Funds held in the  Collection  Account at any time may be delivered by
the  Servicer  to the  Trustee  for  deposit  in an  account  (which  may be the
Distribution Account and must satisfy the standards for the Distribution Account
as set forth in the  definition  thereof) and for all

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purposes  of this  Agreement  shall  be  deemed  to be a part of the  Collection
Account;  provided,  however,  that the Trustee shall have the sole authority to
withdraw  any funds  held  pursuant  to this  subsection  (d).  In the event the
Servicer  shall deliver to the Trustee for deposit in the  Distribution  Account
any amount not required to be deposited therein, it may at any time request that
the Trustee withdraw such amount from the  Distribution  Account and remit to it
any such  amount,  any  provision  herein to the  contrary  notwithstanding.  In
addition,  the  Servicer,  with respect to items (i) through  (iv) below,  shall
deliver to the Trustee  from time to time for  deposit,  and the  Trustee,  with
respect to items (i) through (iv) below,  shall so deposit,  in the Distribution
Account:

            (i) any Advances, as required pursuant to Section 4.04;

            (ii) any  amounts  required  to be  deposited  pursuant  to  Section
      3.23(d) or (f) in connection with any REO Property;

            (iii) any amounts to be paid by the  Servicer in  connection  with a
      purchase of Mortgage Loans and REO Properties pursuant to Section 10.01;

            (iv) any Compensating  Interest to be deposited  pursuant to Section
      3.24 in connection with any Prepayment Interest Shortfall; and

            (v) any amounts  required to be paid to the Trustee  pursuant to the
      Agreement, including, but not limited to Section 3.06 and Section 7.02.

      SECTION 3.11.  Withdrawals  from the Collection  Account and  Distribution
                     Account.

      (a) The  Servicer  shall,  from time to time,  make  withdrawals  from the
Collection  Account for any of the following purposes or as described in Section
4.04:

            (i) to remit to the Trustee for deposit in the Distribution  Account
      the  amounts  required to be so  remitted  pursuant to Section  3.10(b) or
      permitted  to be so  remitted  pursuant  to the first  sentence of Section
      3.10(d);

            (ii) subject to Section  3.16(d),  to reimburse the Servicer for (a)
      any  unreimbursed  Advances  to  the  extent  of  amounts  received  which
      represent  Late   Collections   (net  of  the  related   Servicing  Fees),
      Liquidation  Proceeds  and  Insurance  Proceeds on  Mortgage  Loans or REO
      Properties  with respect to which such  Advances  were made in  accordance
      with the provisions of Section 4.04; or (b) without  limiting any right of
      withdrawal set forth in clause (vi) below, any unreimbursed Advances that,
      upon a Final  Recovery  Determination  with respect to such Mortgage Loan,
      are Nonrecoverable  Advances, but only to the extent that Late Collections
      (net of the related  Servicing Fees),  Liquidation  Proceeds and Insurance
      Proceeds  received with respect to such Mortgage Loan are  insufficient to
      reimburse the Servicer for such unreimbursed Advances;

            (iii)  subject  to  Section  3.16(d),  to pay  the  Servicer  or any
      Sub-Servicer (a) any unpaid Servicing Fees, (b) any unreimbursed Servicing
      Advances with respect to each

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<PAGE>

      Mortgage Loan, but only to the extent of any Late Collections, Liquidation
      Proceeds and  Insurance  Proceeds  received  with respect to such Mortgage
      Loan or REO Property, and (c) without limiting any right of withdrawal set
      forth in clause (vi) below, any Servicing  Advances made with respect to a
      Mortgage Loan that,  upon a Final Recovery  Determination  with respect to
      such Mortgage  Loan are  Nonrecoverable  Advances,  but only to the extent
      that  Late  Collections,   Liquidation  Proceeds  and  Insurance  Proceeds
      received with respect to such Mortgage Loan are  insufficient to reimburse
      the Servicer or any Sub-Servicer for Servicing Advances;

            (iv) to pay to the Servicer as additional servicing compensation (in
      addition  to the  Servicing  Fee)  on the  Servicer  Remittance  Date  any
      interest or investment  income earned on funds deposited in the Collection
      Account;

            (v) to pay itself or the Seller with respect to each  Mortgage  Loan
      that has previously been purchased or replaced pursuant to Section 2.03 or
      Section  3.16(c) all amounts  received  thereon  subsequent to the date of
      purchase or substitution, as the case may be;

            (vi) to reimburse the Servicer for any Advance or Servicing  Advance
      previously  made which the Servicer has determined to be a  Nonrecoverable
      Advance in accordance with the provisions of Section 4.04;

            (vii) to pay, or to reimburse the Servicer for Servicing Advances in
      respect  of,  expenses  incurred  in  connection  with any  Mortgage  Loan
      pursuant to Section 3.16(b);

            (viii)  to  reimburse  the  Servicer  for  expenses  incurred  by or
      reimbursable to the Servicer pursuant to Section 6.03;

            (ix) to pay itself any Prepayment Interest Excess;

            (x) to reimburse  itself for expenses  incurred  pursuant to Section
      9.01(c)(i); and

            (xi) to clear and  terminate  the  Collection  Account  pursuant  to
      Section 10.01.

      The foregoing  requirements  for withdrawal  from the  Collection  Account
shall be exclusive.  In the event the Servicer  shall deposit in the  Collection
Account any amount not  required  to be  deposited  therein,  it may at any time
withdraw such amount from the Collection  Account,  any provision  herein to the
contrary notwithstanding.

      The Servicer shall keep and maintain  separate  accounting,  on a Mortgage
Loan by Mortgage Loan basis,  for the purpose of justifying any withdrawal  from
the Collection  Account,  to the extent held by or on behalf of it,  pursuant to
subclauses  (ii),  (iii),  (iv),  (v), (vi) and (vii) above.  The Servicer shall
provide written  notification to the Trustee, on or prior to the next succeeding
Servicer  Remittance  Date,  upon  making any  withdrawals  from the  Collection
Account pursuant to subclause (vi) above; provided that an Officers' Certificate
in the form  described  under  Section  4.04(d)  shall  suffice for such written
notification to the Trustee in respect hereof.

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<PAGE>

      (b) The  Trustee  shall,  from  time to time,  make  withdrawals  from the
Distribution Account, for any of the following purposes, without priority:

            (i) to make distributions in accordance with Section 4.01;

            (ii)  to pay  itself  the  Trustee  Fee  and  reimbursable  expenses
      pursuant to Section 8.05;

            (iii) to pay any  amounts in respect  of taxes  pursuant  to Section
      9.01(g);

            (iv) to clear and terminate  the  Distribution  Account  pursuant to
      Section 10.01;

            (v) to pay any amounts  required to be paid to the Trustee  pursuant
      to this Agreement,  including but not limited to funds required to be paid
      pursuant to Section  2.01,  Section 3.06,  Section 4.01,  Section 7.02 and
      Section 8.05;

            (vi) to pay to the Trustee, any interest or investment income earned
      on funds deposited in the Distribution Account; and

            (vii) to pay to an  Advancing  Person  reimbursements  for  Advances
      and/or Servicing Advances pursuant to Section 3.29.

      SECTION  3.12.  Investment  of Funds  in the  Collection  Account  and the
                      Distribution Account.

      (a) The Servicer may direct any  depository  institution  maintaining  the
Collection  Account  and any REO  Account to invest the funds on deposit in such
accounts  and the  Trustee  may invest the funds on deposit in the  Distribution
Account  (each  such  account,  for  the  purposes  of  this  Section  3.12,  an
"Investment Account"). All investments pursuant to this Section 3.12 shall be in
one or more Permitted  Investments  bearing interest or sold at a discount,  and
maturing,  unless  payable  on  demand,  (i) no  later  than  the  Business  Day
immediately  preceding the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if a Person other than the Trustee
is the obligor  thereon or if such  investment is managed or advised by a Person
other than the Trustee or an Affiliate  of the  Trustee,  and (ii) no later than
the date on which such funds are  required  to be  withdrawn  from such  account
pursuant to this  Agreement,  if the  Trustee is the obligor  thereon or if such
investment  is  managed or advised  by the  Trustee or any  Affiliate  or if the
Trustee or any  Affiliate  of the  Trustee is the  Custodian,  sub-custodian  or
administrator.  All such Permitted Investments shall be held to maturity, unless
payable on demand.  Any  investment of funds in an  Investment  Account shall be
made in the name of the Trustee (in its  capacity as such),  or in the name of a
nominee of the Trustee. The Trustee shall be entitled to sole possession (except
with respect to investment direction of funds held in the Collection Account and
any REO  Account,  and any  income  and gain  realized  thereon)  over each such
investment,  and  any  certificate  or  other  instrument  evidencing  any  such
investment  shall be  delivered  directly to the Trustee or its agent,  together
with any document of transfer  necessary to transfer title to such investment to
the Trustee or its  nominee.  In the event  amounts on deposit in an  Investment
Account are at any time  invested in a Permitted  Investment  payable on demand,
the Trustee shall:

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<PAGE>

            (x)  consistent  with any notice  required  to be given  thereunder,
      demand  that  payment  thereon  be made on the  last  day  such  Permitted
      Investment may otherwise mature hereunder in an amount equal to the lesser
      of (1) all amounts then payable  thereunder and (2) the amount required to
      be withdrawn on such date; and

            (y) demand  payment of all  amounts  due  thereunder  promptly  upon
      determination by a Responsible  Officer of the Trustee that such Permitted
      Investment would not constitute a Permitted Investment in respect of funds
      thereafter on deposit in the Investment Account.

      (b) All income and gain realized from the investment of funds deposited in
the Collection  Account and any REO Account held by or on behalf of the Servicer
shall be for the benefit of the Servicer and shall be subject to its  withdrawal
in accordance  with Section 3.11 or Section 3.23,  as  applicable.  The Servicer
shall deposit in the Collection Account or any REO Account,  as applicable,  the
amount  of any loss of  principal  incurred  in  respect  of any such  Permitted
Investment made with funds in such Account  immediately upon realization of such
loss.

      (c) All income and gain realized from the investment of funds deposited in
the  Distribution  Account shall be for the benefit of the Trustee.  The Trustee
shall  deposit in the  Distribution  Account the amount of any loss of principal
incurred  in respect of any such  Permitted  Investment  made with funds in such
Account   immediately  upon  realization  of  such  loss.   Notwithstanding  the
foregoing,  the Trustee may at its discretion,  and without liability,  hold the
funds in the Distribution Account uninvested.

      (d) Except as  otherwise  expressly  provided  in this  Agreement,  if any
default occurs in the making of a payment due under any Permitted Investment, or
if a default  occurs  in any  other  performance  required  under any  Permitted
Investment, the Trustee may and, subject to Section 8.01 and Section 8.02(a)(v),
upon the request of the Holders of  Certificates  representing  more than 50% of
the Voting Rights allocated to any Class of Certificates, shall take such action
as may be  appropriate  to enforce such payment or  performance,  including  the
institution and prosecution of appropriate proceedings.

      SECTION 3.13. [Reserved].

      SECTION 3.14. Maintenance of Hazard Insurance and Errors and Omissions and
                    Fidelity Coverage.

      (a) The  Servicer  shall cause to be  maintained  for each  Mortgage  Loan
hazard insurance with extended  coverage on the Mortgaged  Property in an amount
which is at least  equal to the lesser of (i) the current  Principal  Balance of
such Mortgage  Loan and (ii) the amount  necessary to fully  compensate  for any
damage  or loss to the  improvements  that  are a part  of  such  property  on a
replacement  cost basis,  in each case in an amount not less than such amount as
is necessary to avoid the application of any coinsurance clause contained in the
related hazard insurance policy.  The Servicer shall also cause to be maintained
hazard insurance with extended  coverage on each REO Property in an amount which
is at least  equal  to the  lesser  of (i) the  maximum  insurable  value of the
improvements  which  are a part  of  such  property  and  (ii)  the  outstanding
Principal  Balance  of the  related  Mortgage  Loan at the time it became an REO
Property. The Servicer will comply in the

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<PAGE>

performance of this Agreement with all reasonable rules and requirements of each
insurer  under any such  hazard  policies.  Any amounts to be  collected  by the
Servicer  under any such  policies  (other  than  amounts  to be  applied to the
restoration or repair of the property subject to the related Mortgage or amounts
to be released to the  Mortgagor  in  accordance  with the  procedures  that the
Servicer  would follow in servicing  loans held for its own account,  subject to
the terms and  conditions  of the related  Mortgage and Mortgage  Note) shall be
deposited in the Collection  Account,  subject to withdrawal pursuant to Section
3.11, if received in respect of a Mortgage Loan, or in the REO Account,  subject
to  withdrawal  pursuant  to  Section  3.23,  if  received  in respect of an REO
Property.  Any cost incurred by the Servicer in  maintaining  any such insurance
shall not, for the purpose of calculating  distributions to  Certificateholders,
be  added  to the  unpaid  Principal  Balance  of  the  related  Mortgage  Loan,
notwithstanding that the terms of such Mortgage Loan so permit. It is understood
and agreed that no earthquake or other additional insurance is to be required of
any Mortgagor  other than pursuant to such  applicable  laws and  regulations as
shall at any time be in force and as shall require such additional insurance. If
the Mortgaged  Property or REO Property is at any time in an area  identified in
the  Federal  Register  by the  Federal  Emergency  Management  Agency as having
special flood hazards and flood insurance has been made available,  the Servicer
will cause to be maintained a flood insurance  policy in respect  thereof.  Such
flood  insurance  shall be in an amount  equal to the  lesser of (i) the  unpaid
Principal  Balance of the related  Mortgage Loan and (ii) the maximum  amount of
such insurance  available for the related Mortgaged  Property under the national
flood insurance program (assuming that the area in which such Mortgaged Property
is located is participating in such program).

      In the event that the Servicer  shall obtain and maintain a blanket policy
insuring  against  hazard  losses  on  all  of  the  Mortgage  Loans,  it  shall
conclusively  be deemed to have  satisfied its  obligations  as set forth in the
first two sentences of this Section 3.14,  it being  understood  and agreed that
such policy may contain a deductible clause on terms substantially equivalent to
those  commercially  available and maintained by competent  servicers,  in which
case the Servicer  shall, in the event that there shall not have been maintained
on the related  Mortgaged  Property or REO Property a policy  complying with the
first two sentences of this Section 3.14,  and there shall have been one or more
losses which would have been covered by such policy,  deposit to the  Collection
Account from its own funds the amount not  otherwise  payable  under the blanket
policy because of such deductible  clause.  In connection with its activities as
servicer of the Mortgage Loans,  the Servicer agrees to prepare and present,  on
behalf of itself,  the  Depositor,  the Trustee and  Certificateholders,  claims
under any such blanket policy in a timely  fashion in accordance  with the terms
of such policy.

      (b) The Servicer  shall keep in force during the term of this  Agreement a
policy or policies of insurance covering errors and omissions for failure in the
performance of the Servicer's obligations under this Agreement,  which policy or
policies  shall be in such form and amount that would meet the  requirements  of
Fannie Mae or Freddie Mac if it were the purchaser of the Mortgage Loans, unless
the  Servicer  has  obtained a waiver of such  requirements  from  Fannie Mae or
Freddie Mac. The Servicer  shall also  maintain a fidelity  bond in the form and
amount that would meet the requirements of Fannie Mae or Freddie Mac, unless the
Servicer has obtained a waiver of such  requirements  from Fannie Mae or Freddie
Mac. The Servicer  shall be deemed to have  complied  with this  provision if an
Affiliate  of the  Servicer  has such errors and  omissions  and  fidelity  bond
coverage  and,  by the terms of such  insurance  policy or  fidelity  bond,  the
coverage afforded thereunder extends

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<PAGE>

to the Servicer. Any such errors and omissions policy and fidelity bond shall by
its terms not be cancelable  without  thirty days' prior  written  notice to the
Trustee. The Servicer shall also cause each Sub-Servicer to maintain a policy of
insurance  covering  errors and  omissions  and a fidelity bond which would meet
such requirements.

      SECTION 3.15. Enforcement of Due-On-Sale Clauses; Assumption Agreements.

      The Servicer  will,  to the extent it has  knowledge of any  conveyance or
prospective  conveyance of any Mortgaged  Property by any Mortgagor  (whether by
absolute  conveyance  or by contract of sale,  and whether or not the  Mortgagor
remains or is to remain  liable  under the Mortgage  Note and/or the  Mortgage),
exercise its rights to  accelerate  the maturity of such Mortgage Loan under the
"due- on-sale" clause, if any, applicable thereto;  provided,  however, that the
Servicer  shall  not be  required  to take such  action if in its sole  business
judgment the Servicer believes it is not in the best interests of the Trust Fund
and shall not  exercise any such rights if  prohibited  by law from doing so. If
the Servicer  reasonably  believes it is unable under  applicable law to enforce
such  "due-on-sale"  clause,  or if any of the other conditions set forth in the
proviso  to the  preceding  sentence  apply,  the  Servicer  will  enter into an
assumption  and  modification  agreement  from or with the  person  to whom such
property has been conveyed or is proposed to be conveyed, pursuant to which such
person  becomes  liable under the Mortgage Note and, to the extent  permitted by
applicable state law, the Mortgagor remains liable thereon. The Servicer is also
authorized,  to the extent  permitted under the related  Mortgage Note, to enter
into a substitution of liability  agreement with such person,  pursuant to which
the original Mortgagor is released from liability and such person is substituted
as the Mortgagor and becomes  liable under the Mortgage  Note,  provided that no
such  substitution  shall be effective  unless such person satisfies the current
underwriting criteria of the Servicer for a mortgage loan similar to the related
Mortgage Loan. In connection with any assumption,  modification or substitution,
the Servicer shall apply such  underwriting  standards and follow such practices
and  procedures as shall be normal and usual in its general  mortgage  servicing
activities  and as it applies to other  mortgage  loans owned  solely by it. The
Servicer shall not take or enter into any assumption and modification agreement,
however,  unless (to the extent  practicable in the circumstances) it shall have
received  confirmation,  in  writing,  of  the  continued  effectiveness  of any
applicable hazard insurance policy. Any fee collected by the Servicer in respect
of an assumption,  modification or substitution of liability  agreement shall be
retained by the Servicer as  additional  servicing  compensation.  In connection
with any such  assumption,  no material term of the Mortgage Note (including but
not limited to the related  Mortgage Rate and the amount of the Monthly Payment)
may be amended or modified,  except as otherwise  required pursuant to the terms
thereof.  The  Servicer  shall  notify the Trustee  that any such  substitution,
modification  or assumption  agreement  has been  completed by forwarding to the
Trustee the executed original of such  substitution,  modification or assumption
agreement, which document shall be added to the related Mortgage File and shall,
for all purposes,  be considered a part of such Mortgage File to the same extent
as all other documents and instruments constituting a part thereof.

      Notwithstanding  the  foregoing  paragraph or any other  provision of this
Agreement,  the  Servicer  shall not be deemed to be in  default,  breach or any
other  violation of its  obligations  hereunder by reason of any assumption of a
Mortgage  Loan by operation  of law or by the terms of the Mortgage  Note or any
assumption which the Servicer may be restricted by law from preventing,

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<PAGE>

for  any  reason  whatsoever.  For  purposes  of this  Section  3.15,  the  term
"assumption"  is  deemed  to also  include  a sale (of the  Mortgaged  Property)
subject to the Mortgage that is not accompanied by an assumption or substitution
of liability agreement.

      SECTION 3.16. Realization Upon Defaulted Mortgage Loans.

      (a) The Servicer shall use its  reasonable  efforts,  consistent  with the
Servicing  Standard,  to  foreclose  upon or  otherwise  comparably  convert the
ownership of  properties  securing  such of the Mortgage  Loans as come into and
continue in default and as to which no satisfactory arrangements can be made for
collection of delinquent  payments  pursuant to Section 3.07.  Title to any such
property  shall be taken in the name of the  Trustee or its nominee on behalf of
the  Certificateholders  or in the name of the Servicer in  accordance  with the
Servicer's  customary  servicing practices and held for the benefit of the Trust
Fund, subject to applicable law. The Servicer shall be responsible for all costs
and expenses incurred by it in any such  proceedings;  provided,  however,  that
such  costs and  expenses  will be  recoverable  as  Servicing  Advances  by the
Servicer as  contemplated  in Section 3.11(a) and Section 3.23. The foregoing is
subject to the provision  that, in any case in which a Mortgaged  Property shall
have suffered damage from an Uninsured Cause, the Servicer shall not be required
to expend its own funds toward the  restoration of such property unless it shall
determine in its discretion that such  restoration will increase the proceeds of
liquidation of the related Mortgage Loan after  reimbursement to itself for such
expenses.

      (b) Notwithstanding  the foregoing  provisions of this Section 3.16 or any
other provision of this Agreement, with respect to any Mortgage Loan as to which
the Servicer  has received  actual  notice of, or has actual  knowledge  of, the
presence of any toxic or hazardous  substance on the related Mortgaged Property,
the  Servicer  shall not, on behalf of the  Trustee,  either (i) obtain title to
such  Mortgaged  Property as a result of or in lieu of foreclosure or otherwise,
or (ii) otherwise  acquire  possession of, or take any other action with respect
to, such Mortgaged  Property,  if, as a result of any such action,  the Trustee,
the Trust Fund or the  Certificateholders  would be considered to hold title to,
to be a "mortgagee-in-possession"  of, or to be an "owner" or "operator" of such
Mortgaged  Property  within  the  meaning  of  the  Comprehensive  Environmental
Response,  Compensation and Liability Act of 1980, as amended from time to time,
or any comparable law, unless the Servicer has also previously determined, based
on its  reasonable  judgment  and a report  prepared  by a Person who  regularly
conducts environmental audits using customary industry standards, that:

            (1)  such  Mortgaged  Property  is  in  compliance  with  applicable
      environmental  laws or,  if not,  that it  would  be in the best  economic
      interest of the Trust Fund to take such actions as are  necessary to bring
      the Mortgaged Property into compliance therewith; and

            (2) there are no  circumstances  present at such Mortgaged  Property
      relating to the use,  management or disposal of any hazardous  substances,
      hazardous  materials,  hazardous wastes, or petroleum-based  materials for
      which  investigation,   testing,  monitoring,   containment,  clean-up  or
      remediation  could be required  under any  federal,  state or local law or
      regulation,  or that if any such  materials  are  present  for which  such
      action could be required,  that it would be in the best economic  interest
      of the Trust  Fund to take  such  actions  with  respect  to the  affected
      Mortgaged Property.

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<PAGE>

      The cost of the  environmental  audit report  contemplated by this Section
3.16 shall be advanced by the Servicer,  subject to the  Servicer's  right to be
reimbursed   therefor  from  the  Collection  Account  as  provided  in  Section
3.11(a)(vii),  such  right  of  reimbursement  being  prior  to  the  rights  of
Certificateholders  to receive any amount in the Collection  Account received in
respect of the affected Mortgage Loan or other Mortgage Loans.

      If the Servicer  determines,  as described  above,  that it is in the best
economic  interest of the Trust Fund to take such  actions as are  necessary  to
bring any such Mortgaged Property into compliance with applicable  environmental
laws,  or to take such  action  with  respect to the  containment,  clean-up  or
remediation of hazardous  substances,  hazardous materials,  hazardous wastes or
petroleum-based  materials  affecting  any  such  Mortgaged  Property,  then the
Servicer shall take such action as it deems to be in the best economic  interest
of the Trust Fund;  provided that any amounts disbursed by the Servicer pursuant
to this Section 3.16(b) shall constitute Servicing Advances,  subject to Section
4.04(d). The cost of any such compliance,  containment,  clean-up or remediation
shall  be  advanced  by the  Servicer,  subject  to the  Servicer's  right to be
reimbursed   therefor  from  the  Collection  Account  as  provided  in  Section
3.11(a)(vii),  such  right  of  reimbursement  being  prior  to  the  rights  of
Certificateholders  to receive any amount in the Collection  Account received in
respect of the affected Mortgage Loan or other Mortgage Loans.

      (c) The Servicer  may, at its option,  purchase a Mortgage  Loan which has
become 90 or more days  delinquent or for which the Servicer has accepted a deed
in lieu of foreclosure.  Prior to purchase pursuant to this Section 3.16(c), the
Servicer  shall be required to  continue  to make  Advances  pursuant to Section
4.04. The Servicer shall not use any procedure in selecting Mortgage Loans to be
repurchased   which   is   materially   adverse   to   the   interests   of  the
Certificateholders. The Servicer shall purchase such delinquent Mortgage Loan at
a price equal to the Purchase  Price of such Mortgage Loan. Any such purchase of
a Mortgage  Loan  pursuant to this  Section  3.16(c)  shall be  accomplished  by
deposit in the Collection  Account of the amount of the Purchase Price. Upon the
satisfaction of the requirements set forth in Section 3.17(a), the Trustee shall
promptly deliver the Mortgage File and any related documentation to the Servicer
and will execute such  documents  provided to it as are  necessary to convey the
Mortgage Loan to the Servicer.

      (d) Proceeds received in connection with any Final Recovery Determination,
as well  as any  recovery  resulting  from a  partial  collection  of  Insurance
Proceeds,  Liquidation  Proceeds  or  condemnation  proceeds,  in respect of any
Mortgage Loan,  will be applied in the following  order of priority:  first,  to
unpaid Servicing Fees; second, to reimburse the Servicer or any Sub-Servicer for
any related unreimbursed Servicing Advances pursuant to Section 3.11(a)(iii) and
Advances pursuant to Section 3.11(a)(ii);  third, to accrued and unpaid interest
on the Mortgage Loan, to the date of the Final Recovery Determination, or to the
Due  Date  prior  to the  Distribution  Date on  which  such  amounts  are to be
distributed  if not in  connection  with a  Final  Recovery  Determination;  and
fourth,  as a recovery of  principal of the  Mortgage  Loan.  The portion of the
recovery  so  allocated  to unpaid  Servicing  Fees shall be  reimbursed  to the
Servicer or any Sub-Servicer pursuant to Section 3.11(a)(iii).

      SECTION 3.17. Trustee to Cooperate; Release of Mortgage Files.

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      (a) Upon the payment in full of any Mortgage  Loan,  or the receipt by the
Servicer of a  notification  that  payment in full shall be escrowed in a manner
customary for such purposes,  the Servicer shall immediately  notify or cause to
be notified the Trustee by a certification and shall deliver to the Trustee,  in
written or electronic format,  which format is acceptable to the Custodian,  two
executed  copies of a Request for Release in the form of Exhibit E hereto (which
certification  shall include a statement to the effect that all amounts received
or to be received  in  connection  with such  payment  which are  required to be
deposited in the Collection  Account  pursuant to Section 3.10 have been or will
be so  deposited)  signed by a  Servicing  Officer  (or in a mutually  agreeable
electronic format that will, in lieu of a signature on its face,  originate from
a Servicing Officer) and shall request delivery to it of the Mortgage File. Upon
receipt of such  certification  and  request,  the Trustee  shall,  within three
Business  Days,  release  and send by  overnight  mail,  at the  expense  of the
Servicer or the related Mortgagor, the related Mortgage File to the Servicer. No
expenses  incurred in connection  with any instrument of satisfaction or deed of
reconveyance  shall be chargeable to the Collection  Account or the Distribution
Account.

      (b) From time to time and as appropriate  for the servicing or foreclosure
of any  Mortgage  Loan,  including,  for  this  purpose,  collection  under  any
insurance  policy  relating to the Mortgage Loans,  the Trustee shall,  upon any
request  made by or on behalf of the Servicer and delivery to the Trustee of two
executed copies of a written Request for Release in the form of Exhibit E hereto
signed by a Servicing Officer (or in a mutually agreeable electronic format that
will, in lieu of a signature on its face,  originate from a Servicing  Officer),
release the related  Mortgage File to the Servicer  within three  Business Days,
and the Trustee shall, at the direction of the Servicer,  execute such documents
provided to it by the Servicer as shall be necessary to the  prosecution  of any
such proceedings. Such Request for Release shall obligate the Servicer to return
each and every  document  previously  requested  from the  Mortgage  File to the
Trustee  when the need  therefor by the  Servicer no longer  exists,  unless the
Mortgage Loan has been liquidated and the Liquidation  Proceeds  relating to the
Mortgage Loan have been deposited in the Collection Account or the Mortgage File
or such document has been  delivered to an attorney,  or to a public  trustee or
other public official as required by law, for purposes of initiating or pursuing
legal action or other proceedings for the foreclosure of the Mortgaged  Property
either judicially or non-judicially,  and the Servicer has delivered,  or caused
to be delivered,  to the Trustee an additional Request for Release certifying as
to such  liquidation or action or proceedings.  Upon the request of the Trustee,
the Servicer  shall provide notice to the Trustee of the name and address of the
Person to which  such  Mortgage  File or such  document  was  delivered  and the
purpose or purposes of such delivery.  Upon receipt of a Request for Release, in
written  (with two  executed  copies) or  electronic  format,  from a  Servicing
Officer  stating that such  Mortgage  Loan was  liquidated  and that all amounts
received or to be received in connection with such liquidation that are required
to be deposited into the Collection Account have been so deposited, or that such
Mortgage Loan has become an REO  Property,  such Mortgage Loan shall be released
by the Trustee to the Servicer or its designee within three Business Days.

      (c) Upon written  certification of a Servicing Officer,  the Trustee shall
execute and deliver to the  Servicer  or the  Sub-Servicer,  as the case may be,
copies of any court  pleadings,  requests for trustee's sale or other  documents
necessary  to the  foreclosure  or  trustee's  sale in  respect  of a  Mortgaged
Property or to any legal action brought to obtain judgment against any Mortgagor
on the  Mortgage  Note or Mortgage  or to obtain a  deficiency  judgment,  or to
enforce any other

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remedies or rights  provided  by the  Mortgage  Note or  Mortgage  or  otherwise
available at law or in equity.  Each such certification  shall include a request
that such  pleadings  or documents be executed by the Trustee and a statement as
to the reason such  documents or pleadings  are required and that the  execution
and delivery  thereof by the Trustee will not invalidate or otherwise affect the
lien of the Mortgage,  except for the termination of such a lien upon completion
of the foreclosure or trustee's sale.

      SECTION 3.18. Servicing Compensation.

      As  compensation  for its  activities  hereunder,  the  Servicer  shall be
entitled to the Servicing Fee with respect to each Mortgage Loan payable  solely
from payments of interest in respect of such Mortgage  Loan,  subject to Section
3.24. In addition,  the Servicer shall be entitled to recover  unpaid  Servicing
Fees out of Insurance Proceeds, Liquidation Proceeds or condemnation proceeds to
the extent permitted by Section 3.11(a)(iii) and out of amounts derived from the
operation  and sale of an REO Property to the extent  permitted by Section 3.23.
Except as provided in Section  3.29,  the right to receive the Servicing Fee may
not be transferred in whole or in part except in connection with the transfer of
all of the Servicer's  responsibilities  and  obligations  under this Agreement;
provided,  however, that the Servicer may pay from the Servicing Fee any amounts
due to a Sub-Servicer  pursuant to a Sub-Servicing  Agreement entered into under
Section 3.02.

      Additional  servicing  compensation  in the form of assumption  fees, late
payment  charges,  insufficient  funds  charges,  ancillary  income or otherwise
(other than  Prepayment  Charges)  shall be retained by the Servicer only to the
extent such fees or charges are received by the  Servicer.  The  Servicer  shall
also be entitled pursuant to Section 3.11(a)(iv) to withdraw from the Collection
Account and pursuant to Section  3.23(b) to withdraw  from any REO  Account,  as
additional servicing  compensation,  interest or other income earned on deposits
therein,  subject  to Section  3.12 and  Section  3.24.  The  Servicer  shall be
required to pay all expenses  incurred by it in  connection  with its  servicing
activities  hereunder  (including premiums for the insurance required by Section
3.14, to the extent such premiums are not paid by the related Mortgagors or by a
Sub-Servicer,  and servicing compensation of each Sub-Servicer) and shall not be
entitled to reimbursement therefor except as specifically provided herein.

      The Servicer shall be entitled to any Prepayment Interest Excess, which it
may withdraw from the Collection Account pursuant to Section 3.11(a)(ix).

      SECTION 3.19. Reports to the Trustee; Collection Account Statements.

      Not later than  twenty days after each  Distribution  Date,  the  Servicer
shall forward to the Trustee and the Depositor an account  statement  evidencing
the status of the collection account  reflecting  activity in the previous month
and an Officer's  Certificates shall accompany such account statement certifying
that the information contained in such account statement is true and correct.

      SECTION 3.20. Statement as to Compliance.

      The Servicer  will deliver to the Trustee and the Depositor not later than
March 20th of each calendar year,  commencing in 2005, an Officers'  Certificate
in the form attached hereto as

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Exhibit  I  stating,  as to each  signatory  thereof,  that (i) a review  of the
activities of the Servicer during the preceding calendar year and of performance
under this Agreement has been made under such officers'  supervision and (ii) to
the best of such  officers'  knowledge,  based on such review,  the Servicer has
fulfilled all of its obligations under this Agreement  throughout such year, or,
if  there  has  been a  default  in the  fulfillment  of  any  such  obligation,
specifying  each such  default  known to such  officer and the nature and status
thereof.  Copies of any such  statement  shall be provided by the Trustee to any
Certificateholder  and to any Person  identified to the Trustee as a prospective
transferee  of a  Certificate,  upon  request at the  expense of the  requesting
party,  provided such statement is delivered by the Servicer to the Trustee.  In
addition to the foregoing, the Servicer will, to the extent reasonable, give any
other servicing  information  required by the Securities and Exchange Commission
pursuant to applicable law.

      SECTION 3.21. Independent Public Accountants' Servicing Report.

      Not later than March 20th of each calendar  year,  commencing in 2005, the
Servicer,  at  its  expense,   shall  cause  a  nationally  recognized  firm  of
independent  certified  public  accountants  to furnish to the Servicer a report
stating that (i) it has obtained a letter of  representation  regarding  certain
matters from the management of the Servicer which includes an assertion that the
Servicer has complied with certain minimum  residential  mortgage loan servicing
standards,  identified in the Uniform  Single  Attestation  Program for Mortgage
Bankers established by the Mortgage Bankers Association of America, with respect
to the  servicing  of  residential  mortgage  loans  during  the  most  recently
completed  calendar  year and (ii) on the basis of an  examination  conducted by
such firm in accordance with standards  established by the American Institute of
Certified  Public  Accountants,  such  representation  is  fairly  stated in all
material respects,  subject to such exceptions and other qualifications that may
be  appropriate.  In  rendering  its  report  such firm may rely,  as to matters
relating to the direct servicing of residential mortgage loans by Sub-Servicers,
upon comparable  reports of firms of independent  certified  public  accountants
rendered on the basis of  examinations  conducted  in  accordance  with the same
standards  (rendered  within  one year of such  report)  with  respect  to those
Sub-Servicers.  Immediately  upon  receipt of such report,  the  Servicer  shall
furnish a copy of such report to the Trustee and each Rating  Agency.  Copies of
such statement  shall be provided by the Trustee to any  Certificateholder  upon
request at the Servicer's expense,  provided that such statement is delivered by
the Servicer to the Trustee.

      SECTION  3.22.  Access to  Certain  Documentation;  Filing of  Reports  by
Trustee.

      (a) The Servicer  shall provide to the Office of Thrift  Supervision,  the
FDIC, and any other federal or state banking or insurance  regulatory  authority
that  may  exercise  authority  over  any   Certificateholder,   access  to  the
documentation  regarding  the Mortgage  Loans  required by  applicable  laws and
regulations.  Such  access  shall be  afforded  without  charge,  but only  upon
reasonable  request  and  during  normal  business  hours at the  offices of the
Servicer  designated by it. In addition,  access to the documentation  regarding
the Mortgage Loans will be provided to any Certificateholder, the Trustee and to
any  Person  identified  to  the  Servicer  as  a  prospective  transferee  of a
Certificate, upon reasonable request during normal business hours at the offices
of the Servicer  designated by it, at the expense of the Person  requesting such
access.

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      (b)(i) The Trustee and the Servicer  shall  reasonably  cooperate with the
Depositor in connection with the Trust's  satisfying the reporting  requirements
under the Securities  Exchange Act of 1934, as amended (the "Exchange Act"). The
Trustee  shall  prepare on behalf of the Trust any Forms 8-K and 10-K  customary
for  similar  securities  as  required  by the  Exchange  Act and the  Rules and
Regulations  of the  Securities  and  Exchange  Commission  thereunder,  and the
Depositor shall sign (or shall cause another entity acceptable to the Securities
and Exchange  Commission to sign) and the Trustee shall file (via the Securities
and Exchange  Commission's  Electronic Data Gathering and Retrieval System) such
forms on behalf of the Depositor (or such other  entity).  The Depositor  hereby
grants to the  Trustee a limited  power of  attorney to execute any Form 8-K and
file each such document on behalf of the Depositor. Such power of attorney shall
continue  until the earlier of (i) receipt by the Trustee from the  Depositor of
written  termination  of such power of attorney and (ii) the  termination of the
Trust.  Notwithstanding  anything herein to the contrary, the Depositor, and not
the Trustee,  shall be responsible  for executing each Form 10-K filed on behalf
of the Trust.

      (ii) Each Form 8-K shall be filed by the Trustee within 15 days after each
Distribution  Date, with a copy of the statement to the  Certificateholders  for
such  Distribution  Date as an exhibit thereto.  Subject to Section  3.22(b)(v),
prior to March 30th of each year (or such earlier date as may be required by the
Exchange  Act and the Rules  and  Regulations  of the  Securities  and  Exchange
Commission),  the Trustee  shall file a Form 10-K,  in  substance as required by
applicable law or applicable Security and Exchange  Commission  interpretations.
The Trustee  shall  prepare such Form 10-K and provide the  Depositor  with such
Form 10-K not later than March 20th of each year, subject to Section 3.22(b)(v).
Following its receipt  thereof,  the Depositor  shall execute such Form 10-K and
provide the  original of such Form 10-K to the Trustee not later than March 25th
(or, if the  applicable  March 25th is not a Business  Day, the next  succeeding
Business Day) of each year; provided,  however,  that if the filing of such Form
10-K shall be required to occur on a date  earlier  than March 30th of each year
as may be  required by the  Exchange  Act and the Rules and  Regulations  of the
Securities and Exchange  Commission,  then the time periods for  preparation and
execution  of such  Form  10-K set  forth  in this  sentence  shall be  adjusted
accordingly.  Such Form 10-K when filed shall include as exhibits the Servicer's
annual statement of compliance described under Section 3.20 and the accountant's
report  described  under Section 3.21, in each case to the extent they have been
timely  delivered  to the  Trustee.  If they are not so  timely  delivered,  the
Trustee  shall  file an  amended  Form 10-K,  at the  expense  of the  Servicer,
including  such  documents  as  exhibits  reasonably  promptly  after  they  are
delivered to the Trustee.  The Trustee  shall have no liability  with respect to
any failure to properly prepare or file such periodic reports  resulting from or
relating to the  Trustee's  inability or failure to obtain any  information  not
resulting  from its own  negligence or willful  misconduct.  The Form 10-K shall
also include a  certification  in the form  attached  hereto as Exhibit N-1 (the
"Certification"),  which shall be signed by the senior  officer of the Depositor
in charge of securitization.

      (iii) In addition,  (x) subject to Section  3.22(b)(v) hereof, the Trustee
shall sign a certification  (in the form attached hereto as Exhibit N-2) for the
benefit of the Depositor and its officers,  directors and  Affiliates  regarding
certain aspects of the Certification  (the "Trustee  Certification");  provided,
however,  that the Trustee shall not  undertake an analysis of the  accountant's
report  attached as an exhibit to the Form 10-K, and (y) the Servicer shall sign
a certification  (in the form attached hereto as Exhibit N-3) for the benefit of
the  Depositor,  the  Trustee  and  their  officers,  directors  and  Affiliates
regarding certain aspects of the Certification  (the "Servicer

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<PAGE>

Certification").  The Servicer Certification shall be delivered to the Depositor
and the  Trustee no later than March 20th or if such day is not a Business  Day,
the preceding Business Day, each year (subject to Section 3.22(b)(v) hereof).

      In  addition,  (A) the  Trustee  shall  indemnify  and hold  harmless  the
Depositor and its officers, directors and Affiliates from and against any actual
losses, damages, penalties,  fines, forfeitures,  reasonable and necessary legal
fees and related  costs,  judgments and other costs and expenses  arising out of
third party claims based upon a breach of the Trustee's  obligations  under this
Section  3.22(b)  or  any  material   misstatement   contained  in  the  Trustee
Certification,  other than as a result of incorrect  information provided to the
Trustee by the Servicer,  and (B) the Servicer shall indemnify and hold harmless
the  Depositor,  the  Trustee  and  their  respective  officers,  directors  and
Affiliates  from and  against  any actual  losses,  damages,  penalties,  fines,
forfeitures,  reasonable and necessary  legal fees and related costs,  judgments
and other costs and expenses  that such Person may sustain  arising out of third
party  claims  based  upon a breach of the  Servicer's  obligations  under  this
Section  3.22(b)(iii),  any material  misstatement or omission  contained in the
Servicer's Certification or any information correctly derived by the Trustee and
included in a Form 8-K or Form 10-K from information  provided to the Trustee by
the Servicer under this Agreement. If the indemnification provided for herein is
unavailable or insufficient to hold harmless the Depositor, then (i) the Trustee
agrees that it shall  contribute  to the amount paid or payable by the Depositor
as a result of the losses,  claims,  damages or  liabilities of the Depositor in
such proportion as is appropriate to reflect the relative fault of the Depositor
on the one hand and the Trustee on the other and (ii) the  Servicer  agrees that
it shall  contribute  to the amount paid or payable by the Depositor as a result
of the  losses,  claims,  damages  or  liabilities  of  the  Depositor  in  such
proportion as is  appropriate  to reflect the relative fault of the Depositor on
the one hand and the Servicer on the other.

      (iv) Upon any filing with the  Securities  and  Exchange  Commission,  the
Trustee shall promptly  deliver to the Depositor a copy of any executed  report,
statement or information.

      (v) Prior to January 30 of the first year in which the  Trustee is able to
do so  under  applicable  law,  the  Trustee  shall  file a Form  15  Suspension
Notification with respect to the Trust.

      (vi) To the  extent  that,  following  the  Closing  Date,  the  Depositor
certifies  that reports and  certifications  differing from those required under
this Section 3.22(b) comply with the reporting  requirements  under the Exchange
Act,  the  Trustee  and the  Servicer  hereby  agree  that they will  reasonably
cooperate to amend the  provisions  of this  Section  3.22(b) in order to comply
with such  amended  reporting  requirements  and such  amendment of this Section
3.22(b);  provided,  however,  that the  Trustee  shall not be  responsible  for
executing any Form 10-K or the  Certification.  Any such amendment may result in
the reduction of the reports filed by the Depositor under the Exchange Act.

      SECTION 3.23. Title, Management and Disposition of REO Property.

      (a) The deed or certificate of sale of any REO Property shall,  subject to
applicable laws, be taken in the name of the Trustee,  or its nominee,  in trust
for the  benefit of the  Certificateholders  or in the name of the  Servicer  in
accordance with the Servicer's  customary  servicing  practices and held for the
benefit of the Trust Fund.  The  Servicer,  on behalf of REMIC

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<PAGE>

1, shall sell any REO Property as soon as practicable  and in any event no later
than the end of the third full taxable year after the taxable year in which such
REMIC acquires ownership of such REO Property for purposes of Section 860G(a)(8)
of the Code or request from the Internal Revenue Service,  no later than 60 days
before the day on which the three-year grace period would otherwise  expire,  an
extension of such three-year period, unless the Servicer shall have delivered to
the Trustee an Opinion of Counsel,  addressed to the Trustee and the  Depositor,
to the effect that the holding by the REMIC of such REO Property  subsequent  to
three years after its acquisition will not result in the imposition on the REMIC
of taxes on "prohibited transactions" thereof, as defined in Section 860F of the
Code, or cause any of the REMICs created hereunder to fail to qualify as a REMIC
under  Federal  law at any  time  that any  Certificates  are  outstanding.  The
Servicer shall manage,  conserve,  protect and operate each REO Property for the
Certificateholders  solely for the purpose of its prompt disposition and sale in
a  manner  which  does  not  cause  such  REO  Property  to fail to  qualify  as
"foreclosure  property" within the meaning of Section  860G(a)(8) of the Code or
result in the receipt by any of the REMICs created hereunder of any "income from
non-permitted  assets" within the meaning of Section  860F(a)(2)(B) of the Code,
or any "net income from foreclosure property" which is subject to taxation under
the REMIC Provisions.

      (b) The Servicer  shall  separately  account for all funds  collected  and
received  in  connection  with  the  operation  of any REO  Property  and  shall
establish and maintain, or cause to be established and maintained,  with respect
to REO  Properties  an account  held in trust for the Trustee for the benefit of
the Certificateholders (the "REO Account"),  which shall be an Eligible Account.
The Servicer shall be permitted to allow the Collection  Account to serve as the
REO Account,  subject to separate  ledgers for each REO  Property.  The Servicer
shall be  entitled  to retain or  withdraw  any  interest  income  paid on funds
deposited in the REO Account.

      (c) The Servicer shall have full power and authority,  subject only to the
specific  requirements  and  prohibitions of this  Agreement,  to do any and all
things in connection  with any REO Property as are consistent with the manner in
which the Servicer  manages and operates  similar property owned by the Servicer
or any of its Affiliates,  all on such terms and for such period (subject to the
requirement of prompt  disposition set forth in Section 3.23(a)) as the Servicer
deems  to  be  in  the  best  interests  of  Certificateholders.  In  connection
therewith,  the  Servicer  shall  deposit,  or cause to be  deposited in the REO
Account,  in no event more than two Business Days after the  Servicer's  receipt
thereof,  all revenues  received by it with respect to an REO Property and shall
withdraw  therefrom  funds  necessary for the proper  operation,  management and
maintenance of such REO Property including, without limitation:

            (i) all  insurance  premiums  due and payable in respect of such REO
      Property;

            (ii) all real estate  taxes and  assessments  in respect of such REO
      Property that may result in the imposition of a lien thereon; and

            (iii) all costs and  expenses  necessary  to  maintain,  operate and
      dispose of such REO Property.

      To the extent that  amounts on deposit in the REO Account  with respect to
an REO  Property  are  insufficient  for the  purposes  set forth in clauses (i)
through (iii) above with respect to

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<PAGE>

such REO Property,  the Servicer shall advance from its own funds such amount as
is necessary  for such  purposes  if, but only if, the Servicer  would make such
advances  if the  Servicer  owned  the  REO  Property  and if in the  Servicer's
judgment,  the payment of such  amounts will be  recoverable  from the rental or
sale of the REO Property.

      Notwithstanding the foregoing, neither the Servicer nor the Trustee shall:

            (A) authorize the Trust Fund to enter into,  renew or extend any New
      Lease with respect to any REO Property, if the New Lease by its terms will
      give rise to any income that does not constitute Rents from Real Property;

            (B)  authorize  any amount to be received  or accrued  under any New
      Lease other than amounts that will constitute Rents from Real Property;

            (C) authorize any  construction on any REO Property,  other than the
      completion of a building or other  improvement  thereon,  and then only if
      more  than ten  percent  of the  construction  of such  building  or other
      improvement  was  completed  before  default on the related  Mortgage Loan
      became  imminent,  all within the meaning of Section  856(e)(4)(B)  of the
      Code; or

            (D) authorize any Person to Directly Operate any REO Property on any
      date more than 90 days after its date of acquisition by the Trust Fund;

unless,  in any such case,  the  Servicer  has  obtained  an Opinion of Counsel,
addressed to the Trustee, to the effect that such action will not cause such REO
Property  to fail to qualify as  "foreclosure  property"  within the  meaning of
Section  860G(a)(8)  of the Code at any time  that it is held by the  REMIC,  in
which case the Servicer  may take such actions as are  specified in such Opinion
of Counsel.

      The  Servicer  may  contract  with  any  Independent  Contractor  for  the
operation and management of any REO Property, provided that:

            (1) the  terms  and  conditions  of any such  contract  shall not be
      inconsistent herewith;

            (2) any such contract shall  require,  or shall be  administered  to
      require,  that the  Independent  Contractor  pay all  costs  and  expenses
      incurred in  connection  with the  operation  and  management  of such REO
      Property, including those listed above and remit all related revenues (net
      of such costs and expenses) to the Servicer as soon as practicable, but in
      no event  later than  thirty days  following  the receipt  thereof by such
      Independent Contractor;

            (3) none of the provisions of this Section  3.23(c)  relating to any
      such contract or to actions taken through any such Independent  Contractor
      shall  be  deemed  to  relieve  the  Servicer  of any of  its  duties  and
      obligations  to the  Trustee  on  behalf  of the  Certificateholders  with
      respect to the operation and management of any such REO Property; and

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            (4) the Servicer shall be obligated with respect thereto to the same
      extent as if it alone  were  performing  all  duties  and  obligations  in
      connection with the operation and management of such REO Property.

      The  Servicer  shall be  entitled  to enter  into any  agreement  with any
Independent  Contractor  performing  services  for it  related to its duties and
obligations  hereunder for  indemnification  of the Servicer by such Independent
Contractor,  and  nothing in this  Agreement  shall be deemed to limit or modify
such  indemnification.  The Servicer shall be solely liable for all fees owed by
it to any such  Independent  Contractor,  irrespective of whether the Servicer's
compensation  pursuant to Section 3.18 is sufficient to pay such fees; provided,
however,  that  to the  extent  that  any  payments  made  by  such  Independent
Contractor would  constitute  Servicing  Advances if made by the Servicer,  such
amounts shall be reimbursable as Servicing Advances made by the Servicer.

      (d) In addition to the withdrawals  permitted under Section  3.23(c),  the
Servicer may from time to time make withdrawals from the REO Account for any REO
Property: (i) to pay itself or any Sub-Servicer unpaid Servicing Fees in respect
of the related  Mortgage Loan; and (ii) to reimburse  itself or any Sub-Servicer
for  unreimbursed  Servicing  Advances and Advances  made in respect of such REO
Property or the related  Mortgage  Loan. On the Servicer  Remittance  Date,  the
Servicer shall withdraw from each REO Account  maintained by it and deposit into
the   Distribution   Account  in  accordance  with  Section   3.10(d)(ii),   for
distribution on the related  Distribution  Date in accordance with Section 4.01,
the income from the  related REO  Property  received  during the prior  calendar
month,  net of any withdrawals  made pursuant to Section 3.23(c) or this Section
3.23(d).

      (e) Subject to the time constraints set forth in Section 3.23(a), each REO
Disposition  shall be carried out by the Servicer in a manner, at such price and
upon such terms and  conditions  as shall be normal  and usual in the  Servicing
Standard.

      (f) The proceeds from the REO  Disposition,  net of any amount required by
law to be remitted to the Mortgagor  under the related  Mortgage Loan and net of
any payment or  reimbursement  to the Servicer or any  Sub-Servicer  as provided
above, shall be deposited in the Distribution Account in accordance with Section
3.10(d)(ii) on the Servicer  Remittance  Date in the month following the receipt
thereof for  distribution  on the related  Distribution  Date in accordance with
Section 4.01. Any REO Disposition  shall be for cash only (unless changes in the
REMIC  Provisions  made  subsequent  to the  Startup  Day allow a sale for other
consideration).

      (g) The  Servicer  shall  file  information  returns  with  respect to the
receipt  of  mortgage  interest  received  in a trade or  business,  reports  of
foreclosures  and  abandonments  of any Mortgaged  Property and  cancellation of
indebtedness  income with respect to any  Mortgaged  Property as required by the
Code.  Such  reports  shall  be in form  and  substance  sufficient  to meet the
reporting requirements of the Code.

      SECTION  3.24.  Obligations  of the  Servicer  in  Respect  of  Prepayment
                      Interest Shortfalls.

      Not later than 1:00 p.m. New York time on each Servicer  Remittance  Date,
the Servicer shall remit to the  Distribution  Account an amount  ("Compensating
Interest")  equal to the

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lesser  of (A) the  aggregate  of the  Prepayment  Interest  Shortfalls  for the
related  Distribution  Date and (B) its aggregate  Servicing Fee received in the
related Due Period.  The Servicer shall not have the right to reimbursement  for
any amounts  remitted to the Trustee in respect of Compensating  Interest.  Such
amounts so remitted  shall be included in the  Available  Funds and  distributed
therewith on the next Distribution  Date. The Servicer shall not be obligated to
pay Compensating Interest with respect to Relief Act Interest Shortfalls.

      SECTION 3.25. [Reserved].

      SECTION 3.26. Obligations of the Servicer in Respect of Mortgage Rates and
                    Monthly Payments.

      In the event that a  shortfall  in any  collection  on or  liability  with
respect to the Mortgage Loans in the aggregate  results from or is  attributable
to adjustments to Mortgage Rates,  Monthly Payments or Stated Principal Balances
that were made by the Servicer in a manner not consistent  with the terms of the
related  Mortgage  Note and this  Agreement,  the  Servicer,  upon  discovery or
receipt of notice thereof,  immediately shall deposit in the Collection  Account
from its own funds the amount of any such shortfall and shall indemnify and hold
harmless the Trust Fund, the Trustee,  the Depositor and any successor  servicer
in respect of any such liability. Such indemnities shall survive the termination
or discharge of this Agreement. Notwithstanding the foregoing, this Section 3.26
shall not limit the ability of the Servicer to seek recovery of any such amounts
from the related  Mortgagor  under the terms of the related  Mortgage  Note,  as
permitted by law.

      SECTION 3.27. [Reserved].

      SECTION 3.28. [Reserved].

      SECTION 3.29. Advance Facility.

      The  Servicer  is hereby  authorized  to enter into a  financing  or other
facility  (any such  arrangement,  an  "Advance  Facility")  under which (1) the
Servicer  sells,  assigns  or  pledges to  another  Person  (together  with such
Person's  successors and assigns,  an "Advancing  Person") the Servicer's rights
under this  Agreement to be  reimbursed  for any Advances or Servicing  Advances
and/or  (2) an  Advancing  Person  agrees  to fund some or all  Advances  and/or
Servicing  Advances  required  to be  made  by the  Servicer  pursuant  to  this
Agreement.  No consent of the Depositor,  the Trustee, the Certificateholders or
any other party shall be required  before the Servicer may enter into an Advance
Facility.  The  Servicer  shall  notify  each other party to this  Agreement  in
writing  prior to or promptly  after  entering into or  terminating  any Advance
Facility  stating the  identity of the  Advancing  Person.  Notwithstanding  the
existence of any Advance Facility under which an Advancing Person agrees to fund
Advances and/or Servicing  Advances on the Servicer's behalf, the Servicer shall
remain  obligated  pursuant to this  Agreement to make  Advances  and  Servicing
Advances  pursuant to and as required by this Agreement.  If the Servicer enters
into  an  Advance  Facility,  and for so long  as an  Advancing  Person  remains
entitled to receive  reimbursement  for any  Advances  including  Nonrecoverable
Advances ("Advance  Reimbursement  Amounts") and/or Servicing Advances including
Nonrecoverable  Advances ("Servicing Advance Reimbursement Amounts" and together

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with Advance Reimbursement  Amounts,  "Reimbursement  Amounts") (in each case to
the  extent  such  type of  Reimbursement  Amount  is  included  in the  Advance
Facility),  as applicable,  pursuant to this Agreement,  then the Servicer shall
identify, in the Officer's Certificate described in the next two sentences, such
Reimbursement  Amounts  consistent  with the  reimbursement  rights set forth in
Section 3.11(a)(ii),  (iii), (vi) and (vii) and remit such Reimbursement Amounts
in  accordance  with  Section  3.10(b)  or  otherwise  in  accordance  with  the
documentation establishing the Advance Facility to such Advancing Person or to a
trustee,  agent or custodian (an "Advance Facility Trustee")  designated by such
Advancing Person.  Notwithstanding the foregoing, if so required pursuant to the
terms of the Advance Facility,  the Servicer may direct,  and if so directed the
Trustee is hereby  authorized to and shall pay to the Advance  Facility  Trustee
the Reimbursement  Amounts identified pursuant to the preceding sentence. To the
extent that an Advancing Person funds any Advance and the Servicer  provides the
Trustee with an Officer's  Certificate that such Advancing Person is entitled to
reimbursement,  such Advancing Person shall be entitled to receive reimbursement
pursuant  to this  Agreement  for such  amount to the  extent  provided  in this
section.   Such   Officer's   Certificate   must   specify  the  amount  of  the
reimbursement,  the remittance  date, the Section of this Agreement that permits
the applicable Advance to be reimbursed and either the section(s) of the Advance
Facility that entitle the  Advancing  Person to request  reimbursement  from the
Trustee,  rather  than the  Servicer,  or proof  of an event of  default  by the
Servicer  under  the  Advance   Facility   entitling  the  Advancing  Person  to
reimbursement from the Trustee. Notwithstanding anything to the contrary herein,
in  no  event  shall  Advance   Reimbursement   Amounts  or  Servicing   Advance
Reimbursement  Amounts be  included in the  Available  Funds or  distributed  to
Certificateholders.

      Reimbursement  Amounts  shall  consist  solely of  amounts  in  respect of
Advances and/or  Servicing  Advances made with respect to the Mortgage Loans for
which the Servicer  would be permitted to reimburse  itself in  accordance  with
this  Agreement,  assuming  the  Servicer or the  Advancing  Person had made the
related Advance(s) and/or Servicing  Advance(s).  Notwithstanding the foregoing,
except with respect to reimbursement of Nonrecoverable  Advances as set forth in
this Agreement,  no Person shall be entitled to reimbursement from funds held in
the Collection Account for future distribution to Certificateholders pursuant to
this  Agreement.  None of the  Depositor  or the Trustee  shall have any duty or
liability with respect to the calculation of any Reimbursement  Amount and shall
be  entitled  to  rely,  without  independent  investigation,  on the  Officer's
Certificate  provided  pursuant to this Section 3.29, nor shall the Depositor or
the Trustee have any  responsibility  to track or monitor the  administration of
the Advance  Facility and the  Depositor  shall not have any  responsibility  to
track,  monitor or verify the  payment of  Reimbursement  Amounts to the related
Advancing  Person or Advance Facility  Trustee.  The Servicer shall maintain and
provide to any  successor  servicer  and (upon  request)  the Trustee a detailed
accounting on a loan by loan basis as to amounts  advanced by, sold,  pledged or
assigned to, and  reimbursed to any  Advancing  Person.  The successor  servicer
shall be entitled to rely on any such  information  provided by the  predecessor
servicer,  and the successor servicer shall not be liable for any errors in such
information. Any successor Servicer shall reimburse the predecessor Servicer and
itself for  outstanding  Advances and  Servicing  Advances,  respectively,  with
respect to each Mortgage Loan on a first in, first out ("FIFO") basis;  provided
that  the  successor  Servicer  has  received  prior  written  notice  from  the
predecessor  Servicer or the Advancing Person of  reimbursement  amounts owed to
the predecessor  Servicer.  Liquidation Proceeds with respect to a Mortgage Loan
shall be applied to reimburse Advances outstanding with respect to that Mortgage
Loan before  being  applied to reimburse  Servicing  Advances  outstanding  with
respect to that Mortgage Loan.

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      An Advancing  Person who receives an assignment or pledge of the rights to
be reimbursed for Advances and/or Servicing  Advances,  and/or whose obligations
hereunder  are limited to the funding or purchase of Advances  and/or  Servicing
Advances  shall not be  required to meet the  criteria  for  qualification  of a
subservicer set forth in this Agreement.

      Upon the  direction  of and at the  expense of the  Servicer,  the Trustee
agrees to  execute  such  acknowledgments,  certificates,  and  other  documents
provided by the  Servicer  recognizing  the  interests  of any Advance  Facility
Trustee  in such  Reimbursement  Amounts  as the  Servicer  may cause to be made
subject to Advance Facilities pursuant to this Section 3.29.

      The Servicer  shall remain  entitled to be reimbursed for all Advances and
Servicing Advances funded by the Servicer to the extent the related rights to be
reimbursed  therefor  have not been sold,  assigned  or pledged to an  Advancing
Person.

      The Servicer  shall  indemnify the Depositor,  the Trustee,  any successor
servicer and the Trust Fund for any loss, liability or damage resulting from any
claim by the  related  Advancing  Person,  except to the extent that such claim,
loss, liability or damage resulted from or arose out of negligence, recklessness
or  willful  misconduct  or breach of its  duties  hereunder  on the part of the
Depositor, the Trustee or any successor servicer.

      Any  amendment  to this  Section  3.29 or to any other  provision  of this
Agreement that may be necessary or appropriate to effect the terms of an Advance
Facility as described  generally in this Section 3.29,  including  amendments to
add  provisions  relating to a successor  servicer,  may be entered  into by the
Trustee,   the   Depositor   and  the  Servicer   without  the  consent  of  any
Certificateholder,  provided such amendment  complies with Section 11.01 hereof.
All  reasonable  costs and expenses  (including  attorneys'  fees) of each party
hereto of any such  amendment  shall be borne solely by the  Servicer.  Prior to
entering  into an Advance  Facility,  the Servicer  shall  notify the  Advancing
Person in writing that: (a) the Advances and/or  Servicing  Advances  purchased,
financed by and/or pledged to the Advancing  Person are obligations  owed to the
Servicer on a  non-recourse  basis payable only from the cash flows and proceeds
received under this Agreement for  reimbursement  of Advances  and/or  Servicing
Advances only to the extent provided  herein,  and the Trustee and the Trust are
not  otherwise  obligated  or  liable  to repay any  Advances  and/or  Servicing
Advances financed by the Advancing Person and (b) the Trustee shall not have any
responsibility to calculate any Reimbursement Amounts or to track or monitor the
administration  of the Advance  Facility  between the Servicer and the Advancing
Person.

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                                   ARTICLE IV

                                  FLOW OF FUNDS

      SECTION 4.01. Distributions.

      (a)(I) On each Distribution Date, to the extent of funds on deposit in the
Distribution  Account,  the Trustee shall withdraw from the Distribution Account
that portion of Available  Funds for such  Distribution  Date  consisting of the
Interest  Remittance Amount for such  Distribution  Date, and make the following
disbursements  and transfers in the order of priority  described  below, in each
case  to the  extent  of the  Interest  Remittance  Amount  remaining  for  such
Distribution Date:

            (i) to the Holders of the Class A Certificates,  on a PRO RATA basis
      based  on the  entitlement  of  each  such  Class,  the  Monthly  Interest
      Distributable Amount and the Unpaid Interest Shortfall Amount, if any, for
      such Certificates;

            (ii) to the  Holders  of the Class  M-1  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates;

            (iii) to the  Holders  of the Class M-2  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates;

            (iv) to the  Holders  of the Class  M-3  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates;

            (v) to the  Holders  of the  Class  M-4  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates;

            (vi) to the  Holders  of the Class  M-5  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates;

            (vii) to the  Holders  of the Class M-6  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates;

            (viii) to the  Holders of the Class M-7  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates;

            (ix) to the  Holders  of the Class  M-8  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates;

            (x) to the  Holders  of the  Class  M-9  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates;

            (xi) to the  Holders  of the Class  B-1  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates; and

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<PAGE>

            (xii) to the  Holders  of the Class B-2  Certificates,  the  Monthly
      Interest Distributable Amount allocable to such Certificates.

      (b) On each  Distribution  Date (a) prior to the  Stepdown  Date or (b) on
which a Trigger  Event is in  effect,  to the  extent of funds on deposit in the
Distribution Account, distributions in respect of principal to the extent of the
Principal  Distribution  Amount shall be made in the following amounts and order
of priority:

            (i) first,  to the  Holders of the Class A  Certificates  (allocated
      among the Class A Certificates in the priority described below), until the
      Certificate Principal Balances thereof have been reduced to zero;

            (ii) second, to the Holders of the Class M-1 Certificates, until the
      Certificate Principal Balances thereof have been reduced to zero;

            (iii) third, to the Holders of the Class M-2 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero;

            (iv) fourth, to the Holders of the Class M-3 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero;

            (v) fifth, to the Holders of the Class M-4  Certificates,  until the
      Certificate Principal Balance thereof has been reduced to zero;

            (vi) sixth, to the Holders of the Class M-5 Certificates,  until the
      Certificate Principal Balance thereof has been reduced to zero;

            (vii) seventh,  to the Holders of the Class M-6 Certificates,  until
      the Certificate Principal Balance thereof has been reduced to zero;

            (viii) eighth, to the Holders of the Class M-7  Certificates,  until
      the Certificate Principal Balance thereof has been reduced to zero;

            (ix) ninth, to the Holders of the Class M-8 Certificates,  until the
      Certificate Principal Balance thereof has been reduced to zero;

            (x) tenth, to the Holders of the Class M-9  Certificates,  until the
      Certificate Principal Balance thereof has been reduced to zero;

            (xi) eleventh,  to the Holders of the Class B-1 Certificates,  until
      the Certificate Principal Balance thereof has been reduced to zero; and

            (xii) twelfth,  to the Holders of the Class B-2 Certificates,  until
      the Certificate Principal Balance thereof has been reduced to zero.

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<PAGE>

      (c) On each Distribution Date (a) on or after the Stepdown Date and (b) on
which a Trigger Event is not in effect, to the extent of funds on deposit in the
Distribution Account, distributions in respect of principal to the extent of the
Principal  Distribution  Amount shall be made in the following amounts and order
of priority:

            (i) first,  to the  Holders of the Class A  Certificates  (allocated
      among the Class A  Certificates  in the  priority  described  below),  the
      Senior  Principal  Distribution  Amount  until the  Certificate  Principal
      Balance thereof has been reduced to zero;

            (ii) second, to the Holders of the Class M-1 Certificates, the Class
      M-1 Principal Distribution Amount until the Certificate Principal Balances
      thereof have been reduced to zero;

            (iii) third, to the Holders of the Class M-2 Certificates, the Class
      M-2 Principal  Distribution Amount until the Certificate Principal Balance
      thereof has been reduced to zero;

            (iv) fourth, to the Holders of the Class M-3 Certificates, the Class
      M-3 Principal  Distribution Amount until the Certificate Principal Balance
      thereof has been reduced to zero;

            (v) fifth, to the Holders of the Class M-4  Certificates,  the Class
      M-4 Principal  Distribution Amount until the Certificate Principal Balance
      thereof has been reduced to zero;

            (vi) sixth, to the Holders of the Class M-5 Certificates,  the Class
      M-5 Principal  Distribution Amount until the Certificate Principal Balance
      thereof has been reduced to zero;

            (vii)  seventh,  to the Holders of the Class M-6  Certificates,  the
      Class M-6 Principal  Distribution  Amount until the Certificate  Principal
      Balance thereof has been reduced to zero;

            (viii)  eighth,  to the Holders of the Class M-7  Certificates,  the
      Class M-7 Principal  Distribution  Amount until the Certificate  Principal
      Balance thereof has been reduced to zero;

            (ix) ninth, to the Holders of the Class M-8 Certificates,  the Class
      M-8 Principal  Distribution Amount until the Certificate Principal Balance
      thereof has been reduced to zero;

            (x) tenth, to the Holders of the Class M-9  Certificates,  the Class
      M-9 Principal  Distribution Amount until the Certificate Principal Balance
      thereof has been reduced to zero;

            (xi)  eleventh,  to the Holders of the Class B-1  Certificates,  the
      Class B-1 Principal  Distribution  Amount until the Certificate  Principal
      Balance thereof has been reduced to zero; and

            (xii)  twelfth,  to the Holders of the Class B-2  Certificates,  the
      Class B-2 Principal  Distribution  Amount until the Certificate  Principal
      Balance thereof has been reduced to zero.

      With respect to the Class A Certificates, all principal distributions will
be  distributed   sequentially,   first,   to  the  Holders  of  the  Class  A-1
Certificates, until the Certificate Principal Balance

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<PAGE>

of the Class A-1 Certificates has been reduced to zero,  second,  to the Holders
of the Class A-2  Certificates,  until the Certificate  Principal Balance of the
Class A-2 Certificates has been reduced to zero and third, to the Holders of the
Class A-3 Certificates, until the Certificate Principal Balance of the Class A-3
Certificates has been reduced to zero;  provided,  however,  on any Distribution
Date on which the  aggregate  Certificate  Principal  Balance  of the  Mezzanine
Certificates,  the Class B Certificates  and the Class C  Certificates  has been
reduced to zero,  notwithstanding anything contained herein to the contrary, all
distributions  of  principal  to the Class A  Certificates  will be  distributed
concurrently,  on a PRO RATA basis based on the Certificate Principal Balance of
each such Class.

      (d) On each  Distribution  Date,  to the extent of funds on deposit in the
Distribution  Account,  the Net Monthly Excess  Cashflow shall be distributed as
follows:

            (i) to the  Holders  of the Class or Classes  of  Certificates  then
      entitled to receive  distributions  in respect of principal,  in an amount
      equal to any Extra Principal  Distribution  Amount,  distributable to such
      Holders as part of the Principal  Distribution  Amount as described  under
      Section 4.01(b) and Section 4.01(c) above;

            (ii) to the  Holders  of the  Class M-1  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (iii) to the  Holders  of the Class M-1  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (iv) to the  Holders  of the  Class M-2  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (v) to the Holders of the Class M-2 Certificates, in an amount equal
      to the Allocated Realized Loss Amount allocable to such Certificates;

            (vi) to the  Holders  of the  Class M-3  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (vii) to the  Holders  of the Class M-3  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (viii) to the  Holders of the Class M-4  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (ix) to the  Holders  of the  Class M-4  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (x) to the Holders of the Class M-5 Certificates, in an amount equal
      to the Unpaid Interest Shortfall Amount allocable to such Certificates;

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<PAGE>

            (xi) to the  Holders  of the  Class M-5  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (xii) to the  Holders  of the Class M-6  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (xiii) to the  Holders of the Class M-6  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (xiv) to the  Holders  of the Class M-7  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (xv) to the  Holders  of the  Class M-7  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (xvi) to the  Holders  of the Class M-8  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (xvii) to the  Holders of the Class M-8  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (xviii) to the Holders of the Class M-9  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (xix) to the  Holders  of the Class M-9  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (xx) to the  Holders  of the  Class B-1  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (xxi) to the  Holders  of the Class B-1  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (xxii) to the  Holders of the Class B-2  Certificates,  in an amount
      equal  to  the  Unpaid  Interest   Shortfall   Amount  allocable  to  such
      Certificates;

            (xxiii) to the Holders of the Class B-2  Certificates,  in an amount
      equal  to  the   Allocated   Realized   Loss  Amount   allocable  to  such
      Certificates;

            (xxiv) to the Net WAC Rate Carryover Reserve Account,  the amount by
      which any Net WAC Rate Carryover Amounts for such Distribution Date exceed
      the amounts received by the Trustee under the Cap Contract;

            (xxv) to the  Holders of the Class C  Certificates,  (a) the Monthly
      Interest Distributable Amount and any Overcollateralization Release Amount
      for such  Distribution  Date and (b) on any Distribution Date on which the
      aggregate  Certificate Principal Balance

                                       98
<PAGE>

      of the Floating Rate  Certificates has been reduced to zero, any remaining
      amounts in reduction of the Certificate  Principal  Balance of the Class C
      Certificates,  until the  Certificate  Principal  Balance thereof has been
      reduced to zero;

            (xxvi) if such  Distribution  Date  follows  the  Prepayment  Period
      during which  occurs the latest date on which a  Prepayment  Charge may be
      required to be paid in respect of any  Mortgage  Loans,  to the Holders of
      the  Class P  Certificates,  in  reduction  of the  Certificate  Principal
      Balance  thereof,  until the  Certificate  Principal  Balance  thereof  is
      reduced to zero; and

            (xxvii)  any  remaining  amounts  to the  Holders  of  the  Residual
      Certificates  (in  respect  of the  Class  R-1  Interest,  the  Class  R-2
      Interest,   the  Class  R-3  Interest  or  the  Class  R-4  Interest,   as
      appropriate).

      Following  the foregoing  distributions,  an amount equal to the amount of
Subsequent  Recoveries deposited into the Collection Account pursuant to Section
3.10 shall be applied to increase the Certificate Principal Balance of the Class
of  Certificates  with the Highest  Priority  up to the extent of such  Realized
Losses  previously  allocated to that Class of Certificates  pursuant to Section
4.08. An amount equal to the amount of any remaining Subsequent Recoveries shall
be  applied  to  increase  the  Certificate  Principal  Balance  of the Class of
Certificates with the next Highest  Priority,  up to the amount of such Realized
Losses  previously  allocated to that Class of Certificates  pursuant to Section
4.08.  Holders of such  Certificates will not be entitled to any distribution in
respect of interest on the amount of such  increases  for any  Interest  Accrual
Period preceding the Distribution  Date on which such increase occurs.  Any such
increases  shall  be  applied  to the  Certificate  Principal  Balance  of  each
Certificate of such Class in accordance with its respective Percentage Interest.

      On each Distribution Date, after making the distributions of the Available
Funds as set  forth  above,  the  Trustee  will  withdraw  from the Net WAC Rate
Carryover  Reserve  Account,  to the  extent of  amounts  remaining  on  deposit
therein,  the amount of any Net WAC Rate Carryover Amount for such  Distribution
Date and distribute such amount in the following order of priority:

      (i) concurrently,  to each Class of Class A Certificates,  the related Cap
Amount, from payments made under the Cap Contract,  in each case up to a maximum
amount equal to the related Net WAC Rate Carryover Amount for such  Distribution
Date;

      (ii)  sequentially,  to the Class M-1,  Class M-2,  Class M-3,  Class M-4,
Class M-5,  Class M-6,  Class M-7, Class M-8, Class M-9, Class B-1 and Class B-2
Certificates,  in that order,  the related Cap Amount,  from payments made under
the Cap Contract,  in each case up to a maximum  amount equal to the related Net
WAC Rate Carryover Amount for such Distribution Date;

      (iii) concurrently, to each Class of Class A Certificates, the related Net
WAC Rate Carryover Amount remaining  undistributed pursuant to clause (i) above,
on a PRO RATA basis based on such  respective  remaining Net WAC Rate  Carryover
Amounts; and

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      (iv)  sequentially,  to the Class M-1,  Class M-2,  Class M-3,  Class M-4,
Class M-5,  Class M-6,  Class M-7, Class M-8, Class M-9, Class B-1 and Class B-2
Certificates, in that order, the related Net WAC Rate Carryover Amount remaining
undistributed pursuant to clause (ii) above.

      On each Distribution Date, all amounts representing  Prepayment Charges in
respect of the Mortgage Loans received during the related  Prepayment Period and
any Servicer  Prepayment  Charge Amounts paid by the Servicer during the related
Prepayment  Period and on deposit in the Distribution  Account will be withdrawn
from the  Distribution  Account and distributed by the Trustee to the Holders of
the Class P  Certificates  and shall not be available  for  distribution  to the
Holders of any other Class of Certificates. The payment of the foregoing amounts
to the  Holders of the Class P  Certificates  shall not  reduce the  Certificate
Principal Balances thereof.

      (e) The Trustee shall make distributions in respect of a Distribution Date
to each  Certificateholder  of record on the related  Record Date (other than as
provided in Section 10.01  respecting  the final  distribution),  in the case of
Certificateholders of the Regular  Certificates,  by check or money order mailed
to such  Certificateholder at the address appearing in the Certificate Register,
or by wire transfer if such  Certificateholder  has provided to the Trustee wire
transfer  instructions  by  five  Business  Days  prior  to  such  Record  Date.
Distributions  among  Certificateholders  shall  be  made in  proportion  to the
Percentage    Interests   evidenced   by   the   Certificates   held   by   such
Certificateholders.

      (f) Each  distribution  with respect to a Book-Entry  Certificate shall be
paid to the  Depository,  which shall credit the amount of such  distribution to
the  accounts  of its  Depository  Participants  in  accordance  with its normal
procedures. Each Depository Participant shall be responsible for disbursing such
distribution to the  Certificate  Owners that it represents and to each indirect
participating  brokerage  firm (a  "brokerage  firm" or "indirect  participating
firm") for which it acts as agent.  Each brokerage firm shall be responsible for
disbursing funds to the Certificate Owners that it represents.  All such credits
and disbursements with respect to a Book-Entry Certificate are to be made by the
Depository and the Depository  Participants in accordance with the provisions of
the Certificates.  None of the Trustee, the Depositor or the Servicer shall have
any responsibility therefor except as otherwise provided by applicable law.

      (g) Except as otherwise  provided in Section  10.01,  whenever the Trustee
expects that the final  distribution  with respect to any Class of  Certificates
will be made on the next Distribution Date, the Trustee shall, no later than two
days prior to the related  Distribution  Date, send, by overnight delivery or by
registered  mail,  to each Holder on such date of such Class of  Certificates  a
notice to the effect that:

            (i) the Trustee expects that the final  distribution with respect to
      the Certificates of such Class will be made on such  Distribution Date but
      only upon presentation and surrender of such Certificates at the office of
      the Trustee therein specified, and

            (ii) no interest  shall accrue on such  Certificates  from and after
      the end of the calendar month preceding such final Distribution Date.

      SECTION 4.02. [Reserved].

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      SECTION 4.03. Statements.

      (a) On each  Distribution  Date,  based,  as  applicable,  on  information
provided to it by the Servicer  pursuant to Sections 3.19 and 4.04,  the Trustee
shall prepare and make available to each Holder of the Regular Certificates, the
Servicer and the Rating Agencies,  a statement as to the  distributions  made on
such Distribution Date which shall include the following information:

            (i) the amount of the distribution made on such Distribution Date to
      the Holders of each Class of Regular Certificates,  separately identified,
      allocable  to  principal  and the amount of the  distribution  made to the
      Holders of the Class P  Certificates  allocable to Prepayment  Charges and
      Servicer Prepayment Charge Payment Amounts;

            (ii) the amount of the distribution  made on such  Distribution Date
      to the Holders of each Class of Regular Certificates (other than the Class
      P Certificates) allocable to interest, separately identified;

            (iii)  the  Overcollateralized   Amount,  the  Overcollateralization
      Release Amount, the  Overcollateralization  Deficiency Amount (if any) and
      the  Overcollateralization  Target Amount as of such Distribution Date and
      the Excess  Overcollateralized  Amount (if any) for the Mortgage  Pool for
      such Distribution Date;

            (iv) the aggregate amount of servicing  compensation received by the
      Servicer  with respect to the related Due Period and such other  customary
      information  as the  Trustee  deems  necessary  or  desirable,  or which a
      Certificateholder  reasonably requests,  to enable  Certificateholders  to
      prepare their tax returns;

            (v) the aggregate amount of Advances for the related Due Period;

            (vi) the Pool  Balance  at the Close of  Business  at the end of the
      related Due Period;

            (vii) the  number,  aggregate  Stated  Principal  Balance,  weighted
      average  remaining term to maturity and weighted  average Mortgage Rate of
      the Mortgage Loans as of the related Determination Date;

            (viii) the number and aggregate unpaid Stated  Principal  Balance of
      Mortgage  Loans that were (A)  Delinquent  (exclusive of Mortgage Loans in
      bankruptcy or foreclosure and REO Properties) (1) 30 to 59 days, (2) 60 to
      89 days and (3) 90 or more days, (B) as to which  foreclosure  proceedings
      have been  commenced and  Delinquent  (1) 30 to 59 days, (2) 60 to 89 days
      and (3) 90 or more days,  (C) in bankruptcy  and  Delinquent  (1) 30 to 59
      days,  (2) 60 to 89 days and (3) 90 or more  days,  in each case as of the
      Close of Business on the last day of the  calendar  month  preceding  such
      Distribution Date and (D) REO Properties;

            (ix) [Reserved];

            (x) the total number and cumulative  Stated Principal Balance of all
      REO  Properties  as of  the  Close  of  Business  of the  last  day of the
      preceding Prepayment Period;

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            (xi) the aggregate  amount of Principal  Prepayments made during the
      related Prepayment Period;

            (xii) the aggregate  amount of Realized  Losses  incurred during the
      related  Prepayment  Period and the cumulative  amount of Realized  Losses
      since the Closing Date and the aggregate  amount of Subsequent  Recoveries
      received during the related Prepayment Period and the cumulative amount of
      Subsequent Recoveries received since the Closing Date;

            (xiii) the  aggregate  amount of  extraordinary  Trust Fund expenses
      withdrawn from the Collection Account for such Distribution Date;

            (xiv)  the  Certificate  Principal  Balance  of  the  Floating  Rate
      Certificates  and the Class C  Certificates,  after  giving  effect to the
      distributions made on such Distribution Date;

            (xv) the Monthly  Interest  Distributable  Amount in respect of each
      Class of Floating Rate  Certificates and the Class C Certificates for such
      Distribution  Date and the Unpaid Interest  Shortfall Amount, if any, with
      respect to the Floating Rate Certificates and the Class C Certificates for
      such Distribution Date;

            (xvi) the aggregate amount of any Net Prepayment Interest Shortfalls
      for such Distribution Date;

            (xvii) the Credit Enhancement Percentage for such Distribution Date;

            (xviii) the Net WAC Rate Carryover Amount for each Class of Floating
      Rate  Certificates,  if any,  for such  Distribution  Date and the  amount
      remaining unpaid after reimbursements therefor on such Distribution Date;

            (xix) any  Overcollateralization  Target Amount,  Overcollateralized
      Amount and Overcollateralization  Deficiency Amount after giving effect to
      the distribution of principal on such Distribution Date;

            (xx) when the Stepdown Date or a Trigger Event has occurred;

            (xxi) the amount of Available Funds;

            (xxii) the respective Pass-Through Rates applicable to each Class of
      Floating  Rate   Certificates  and  the  Class  C  Certificates  for  such
      Distribution  Date and the  Pass-Through  Rate applicable to each Class of
      Floating Rate  Certificates  for the immediately  succeeding  Distribution
      Date; and

            (xxiii) payments, if any, received under the Cap Contract.

      The Trustee will make such statement  (and, at its option,  any additional
files containing the same information in an alternative  format)  available each
month to Certificateholders

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and  the  Rating  Agencies  via  the  Trustee's   internet  website  located  at
"http://www.jpmorgan.com/sfr."  Assistance  in using the website can be obtained
by calling the Trustee's customer service desk at 877-722-1095. Parties that are
unable to use the website  are  entitled to have a paper copy mailed to them via
first class mail by written notice to the Trustee at its Corporate Trust Office.
The  Trustee's  responsibility  for  disbursing  the  above  information  to the
Certificateholders  is limited to the  availability,  timeliness and accuracy of
the information  derived from the Servicer.  The foregoing  information shall be
reported to the Trustee each month on or before the Servicer Remittance Date.

      In the case of  information  furnished  pursuant to subclauses (i) through
(iii) above,  the amounts shall be expressed in a separate section of the report
as a dollar amount for each Class for each $1,000  original  dollar amount as of
the Cut-off Date.

      (b)  Within a  reasonable  period of time  after the end of each  calendar
year, the Trustee shall, upon written request, furnish to each Person who at any
time during the calendar year was a Certificateholder  of a Regular Certificate,
if  requested  in writing by such  Person,  such  information  as is  reasonably
necessary to provide to such Person a statement  containing the  information set
forth in subclauses  (i) through (iii) above,  aggregated for such calendar year
or applicable portion thereof during which such Person was a  Certificateholder.
Such  obligation  of the Trustee  shall be deemed to have been  satisfied to the
extent that substantially comparable information shall be prepared and furnished
by the Trustee to Certificateholders pursuant to any requirements of the Code as
are in force from time to time.

      (c) On each  Distribution  Date,  the Trustee shall make  available to the
Residual  Certificateholders  a copy of the  reports  forwarded  to the  Regular
Certificateholders  in  respect  of  such  Distribution  Date  with  such  other
information as the Trustee deems necessary or appropriate.

      (d)  Within a  reasonable  period of time  after the end of each  calendar
year,  the  Trustee  shall  deliver to each  Person  who at any time  during the
calendar year was a Residual Certificateholder,  if requested in writing by such
Person, a statement containing the information provided pursuant to the previous
paragraph aggregated for such calendar year or applicable portion thereof during
which such  Person  was a Residual  Certificateholder.  Such  obligation  of the
Trustee shall be deemed to have been satisfied to the extent that  substantially
comparable  information shall be prepared and furnished to Certificateholders by
the  Trustee  pursuant to any  requirements  of the Code as from time to time in
force.

      SECTION 4.04. Remittance Reports; Advances.

      (a) On the second  Business Day following  each  Determination  Date,  the
Servicer shall deliver to the Trustee by telecopy or electronic mail (or by such
other  means as the  Servicer  and the  Trustee  may agree  from time to time) a
Remittance Report with respect to the related  Distribution Date. Not later than
the second  Business Day following each  Determination  Date, the Servicer shall
deliver or cause to be delivered  to the Trustee in addition to the  information
provided in the Remittance Report, such other information  reasonably  available
to it with respect to the Mortgage Loans as the Trustee may  reasonably  require
to perform the calculations necessary to make the distributions  contemplated by
Section 4.01 and to prepare the statements to Certificateholders

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contemplated by Section 4.03. The Trustee shall not be responsible to recompute,
recalculate or verify any information provided to it by the Servicer.

      (b) The amount of Advances to be made by the Servicer for any Distribution
Date  shall  equal,  subject to Section  4.04(d),  the sum of (i) the  aggregate
amount of Monthly  Payments (net of the related  Servicing  Fee), due during the
related Due Period in respect of the Mortgage Loans, which Monthly Payments were
delinquent  on a  contractual  basis as of the Close of  Business on the related
Determination  Date and  (ii)  with  respect  to each REO  Property,  which  REO
Property was acquired  during or prior to the related Due Period and as to which
REO Property an REO Disposition did not occur during the related Due Period,  an
amount  equal to the excess,  if any,  of the REO  Imputed  Interest on such REO
Property for the most recently  ended calendar  month,  over the net income from
such REO Property  transferred to the  Distribution  Account pursuant to Section
3.23 for distribution on such Distribution Date.

      On or before 1:00 p.m. New York time on the Servicer  Remittance Date, the
Servicer shall remit in immediately  available  funds to the Trustee for deposit
in the Distribution Account an amount equal to the aggregate amount of Advances,
if any, to be made in respect of the Mortgage  Loans and REO  Properties for the
related  Distribution  Date  either  (i)  from its own  funds  or (ii)  from the
Collection  Account, to the extent of funds held therein for future distribution
(in which case it will cause to be made an  appropriate  entry in the records of
the Collection  Account that amounts held for future  distribution have been, as
permitted  by this Section  4.04,  used by the Servicer in discharge of any such
Advance) or (iii) in the form of any combination of (i) and (ii) aggregating the
total amount of Advances to be made by the Servicer with respect to the Mortgage
Loans and REO Properties.  Any amounts held for future  distribution used by the
Servicer to make an Advance as  permitted  in the  preceding  sentence  shall be
appropriately  reflected in the Servicer's  records and replaced by the Servicer
by deposit in the Collection Account on or before any future Servicer Remittance
Date to the extent that the Available  Funds for the related  Distribution  Date
(determined  without  regard to Advances to be made on the  Servicer  Remittance
Date)  shall be less than the total  amount  that  would be  distributed  to the
Classes of Certificateholders pursuant to Section 4.01 on such Distribution Date
if such  amounts  held  for  future  distributions  had not been so used to make
Advances.  The Trustee  will  provide  notice to the Servicer by telecopy by the
Close of Business on any Servicer  Remittance  Date in the event that the amount
remitted by the  Servicer to the Trustee on such date is less than the  Advances
required to be made by the Servicer for the related  Distribution  Date,  as set
forth in the related Remittance Report.

      (c) The  obligation  of the Servicer to make such  Advances is  mandatory,
notwithstanding  any other provision of this Agreement but subject to (d) below,
and, with respect to any Mortgage  Loan,  shall continue until the Mortgage Loan
is paid in full or until all Liquidation  Proceeds  thereon have been recovered,
or a Final Recovery Determination has been made thereon.

      (d)  Notwithstanding  anything  herein  to the  contrary,  no  Advance  or
Servicing Advance shall be required to be made hereunder by the Servicer if such
Advance  or  Servicing  Advance  would,  if made,  constitute  a  Nonrecoverable
Advance.  The  determination  by the Servicer that it has made a  Nonrecoverable
Advance  or that any  proposed  Advance or  Servicing  Advance,  if made,  would
constitute  a  Nonrecoverable  Advance,  shall  be  evidenced  by  an  Officers'
Certificate

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of the Servicer  delivered to the  Depositor and the Trustee.  Furthermore,  the
Servicer shall not be required to advance Relief Act Interest Shortfalls.

      SECTION 4.05. [Reserved].

      SECTION 4.06. Net WAC Rate Carryover Reserve Account.

      No later than the Closing Date,  the Trustee shall  establish and maintain
with itself a separate, segregated trust account titled, "Net WAC Rate Carryover
Reserve  Account,  JPMorgan  Chase  Bank,  as Trustee,  in trust for  registered
Holders of CHEC Loan Trust 2004-1,  Asset-Backed  Certificates,  Series 2004-1."
All amounts  deposited in the Net WAC Rate  Carryover  Reserve  Account shall be
distributed to the Holders of the Floating Rate  Certificates  in the manner set
forth in Section 4.01(d).

      On each  Distribution  Date as to which there is a Net WAC Rate  Carryover
Amount payable to the Floating Rate Certificates,  the Trustee has been directed
by the Class C  Certificateholders  to, and therefore will, deposit into the Net
WAC  Rate   Carryover   Reserve   Account  the  amounts   described  in  Section
4.01(d)(xxiv),   rather  than   distributing   such   amounts  to  the  Class  C
Certificateholders.  In addition, any payments received by the Trustee under the
Cap Contract on each  Distribution  Date will be deposited into the Net WAC Rate
Carryover  Reserve Account.  On each such  Distribution  Date, the Trustee shall
hold all such  amounts  for the  benefit  of the  Holders of the  Floating  Rate
Certificates,  and will  distribute  such amounts to the Holders of the Floating
Rate Certificates in the amounts and priorities set forth in Section 4.01(d).

      On each  Distribution  Date,  any  amounts  remaining  in the Net WAC Rate
Reserve  Account after the payment of any Net WAC Rate Carryover  Amounts on the
Floating Rate Certificates for such  Distribution  Date, shall be payable to the
Servicer.

      For federal and state income tax purposes,  the Servicer will be deemed to
be the  owner  of the  Net WAC  Rate  Carryover  Reserve  Account.  All  amounts
deposited  into the Net WAC Rate Carryover  Reserve  Account (other than amounts
received  under the Cap  Contract)  shall be treated as amounts  distributed  by
REMIC 2 to the  Holder of the Class C  Interest  and by REMIC 3 to the Holder of
the Class C Certificates.  The Net WAC Rate Carryover Reserve Account will be an
"outside  reserve  fund"  within the  meaning  of  Treasury  regulation  Section
1.860G-2(h).  Upon the  termination of the Trust,  or the payment in full of the
Floating Rate Certificates, all amounts remaining on deposit in the Net WAC Rate
Carryover  Reserve  Account will be released by the Trust and distributed to the
Servicer or its designee.  The Net WAC Rate  Carryover  Reserve  Account will be
part of the Trust but not part of any REMIC and any  payments  to the Holders of
the Floating Rate  Certificates  of Net WAC Rate  Carryover  Amounts will not be
payments  with respect to a "regular  interest" in a REMIC within the meaning of
Code Section 860(G)(a)(1).

      By accepting a Class C Certificate,  each Class C Certificateholder hereby
agrees to direct the Trustee,  and the Trustee  hereby is  directed,  to deposit
into the Net WAC Rate Carryover  Reserve Account the amounts  described above on
each  Distribution  Date as to which there is any Net WAC Rate Carryover  Amount
rather than  distributing  such  amounts to the Class C  Certificateholders.  By
accepting a Class C Certificate,  each Class C Certificateholder  further agrees

                                      105
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that such  direction is given for good and valuable  consideration,  the receipt
and sufficiency of which is acknowledged by such acceptance.

      Amounts on deposit in the Net WAC Rate  Carryover  Reserve  Account  shall
remain uninvested.

      For federal  tax return and  information  reporting,  the  purchase  price
allocated  to the Cap Contract in respect of any Net WAC Rate  Carryover  Amount
may be obtained from the Trustee, upon receipt from the Depositor.

      SECTION 4.07. Distributions on the REMIC 1 Regular Interests.

      (a) On each  Distribution  Date,  the Trustee shall cause in the following
order of priority, the following amounts which shall be deemed to be distributed
by REMIC 1 to REMIC 2 on account of the REMIC 1 Regular  Interests  or withdrawn
from the  Distribution  Account  and  distributed  to the holders of the Class R
Certificates (in respect of the Class R-1 Interest), as the case may be:

            (i) first,  to the extent of Available  Funds, to Holders of REMIC 1
      Regular  Interest LTAA,  REMIC 1 Regular  Interest  LTA1,  REMIC 1 Regular
      Interest LTA2,  REMIC 1 Regular  Interest LTA3,  REMIC 1 Regular  Interest
      LTM1,  REMIC 1 Regular Interest LTM2, REMIC 1 Regular Interest LTM3, REMIC
      1 Regular  Interest LTM4,  REMIC 1 Regular  Interest LTM5, REMIC 1 Regular
      Interest LTM6,  REMIC 1 Regular  Interest LTM7,  REMIC 1 Regular  Interest
      LTM8,  REMIC 1 Regular Interest LTM9, REMIC 1 Regular Interest LTB1, REMIC
      1 Regular Interest LTB2, REMIC 1 Regular Interest LTZZ and REMIC 1 Regular
      Interest  LTP,  on a PRO  RATA  basis,  in an  amount  equal  to  (A)  the
      Uncertificated  Accrued Interest for such Distribution  Date, plus (B) any
      amounts in respect  thereof  remaining  unpaid from previous  Distribution
      Dates.  Amounts payable as  Uncertificated  Accrued Interest in respect of
      REMIC 1 Regular Interest LTZZ shall be reduced and deferred when the REMIC
      1    Overcollateralization    Amount    is   less   than   the   REMIC   1
      Overcollateralization  Target  Amount,  by the lesser of (x) the amount of
      such  difference  and  (y) the  Maximum  Uncertificated  Accrued  Interest
      Deferral  Amount and such amount will be payable to the Holders of REMIC 1
      Regular  Interest LTA1,  REMIC 1 Regular  Interest  LTA2,  REMIC 1 Regular
      Interest LTA3,  REMIC 1 Regular  Interest LTM1,  REMIC 1 Regular  Interest
      LTM2,  REMIC 1 Regular Interest LTM3, REMIC 1 Regular Interest LTM4, REMIC
      1 Regular  Interest LTM5,  REMIC 1 Regular  Interest LTM6, REMIC 1 Regular
      Interest LTM7,  REMIC 1 Regular  Interest LTM8,  REMIC 1 Regular  Interest
      LTM9,  REMIC 1 Regular  Interest LTB1 and REMIC 1 Regular Interest LTB2 in
      the same  proportion  as the  Overcollateralization  Deficiency  Amount is
      allocated  to  the  Corresponding   Certificates  and  the  Uncertificated
      Principal  Balance of the REMIC 1 Regular Interest LTZZ shall be increased
      by such amount; and

            (ii)  second,  to the  Holders of REMIC 1 Regular  Interests,  in an
      amount equal to the remainder of the Available Funds for such Distribution
      Date after the distributions made pursuant to clause (i) above,  allocated
      as follows:

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                  (a) 98.00% of such remainder to the Holders of REMIC 1 Regular
            Interest  LTAA  and  REMIC  1  Regular   Interest  LTP,   until  the
            Uncertificated  Principal  Balance  of such  Uncertificated  REMIC 1
            Regular Interest is reduced to zero; provided, however, that REMIC 1
            Regular  Interest  LTP shall not be reduced  until the  Distribution
            Date immediately  following the expiration of the latest  Prepayment
            Charge  as  identified  on the  Prepayment  Charge  Schedule  or any
            Distribution  Date  thereafter,  at which point such amount shall be
            distributed  to REMIC 1 Regular  Interest  LTP,  until $100 has been
            distributed pursuant to this clause;

                  (b) 2.00 % of such remainder,  first to the Holders of REMIC 1
            Regular  Interest  LTA1,  REMIC 1  Regular  Interest  LTA2,  REMIC 1
            Regular  Interest  LTA3,  REMIC 1  Regular  Interest  LTM1,  REMIC 1
            Regular  Interest  LTM2,  REMIC 1  Regular  Interest  LTM3,  REMIC 1
            Regular  Interest  LTM4,  REMIC 1  Regular  Interest  LTM5,  REMIC 1
            Regular  Interest  LTM6,  REMIC 1  Regular  Interest  LTM7,  REMIC 1
            Regular  Interest  LTM8,  REMIC 1  Regular  Interest  LTM9,  REMIC 1
            Regular  Interest LTB1 and REMIC 1 Regular  Interest LTB2,  equal to
            1.00%  of and in the  same  proportion  as  principal  payments  are
            allocated   to   the   Corresponding    Certificates,    until   the
            Uncertificated  Principal Balances of such REMIC 1 Regular Interests
            are  reduced to zero and  second,  to the Holders of REMIC 1 Regular
            Interest LTZZ, until the  Uncertificated  Principal  Balance of such
            REMIC 1 Regular Interest is reduced to zero; and

                  (d)  any  remaining  amount  to the  Holders  of the  Class  R
            Certificates (in respect of the Class R-2 Interest);

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that
are attributable to an  Overcollateralization  Release Amount shall be allocated
to Holders  of (i) REMIC 1 Regular  Interest  LTAA and REMIC 1 Regular  Interest
LTP,  in that  order  and (ii)  REMIC 1  Regular  Interest  LTZZ,  respectively;
provided  that  REMIC 1 Regular  Interest  LTP shall  not be  reduced  until the
Distribution Date immediately  following the expiration of the latest Prepayment
Charge as identified on the Prepayment  Charge Schedule or any Distribution Date
thereafter,  at which point such amount shall be  distributed to REMIC 1 Regular
Interest LT1P, until $100 has been distributed pursuant to this clause.

      SECTION 4.08. Allocation of Realized Losses.

      (a) All  Realized  Losses on the Mortgage  Loans  allocated to any Regular
Certificate  shall be  allocated  by the  Trustee on each  Distribution  Date as
follows:  first,  to  Net  Monthly  Excess  Cashflow;  second,  to the  Class  C
Certificates,  until the Certificate  Principal Balance thereof has been reduced
to zero; third, to the Class B-2 Certificates,  until the Certificate  Principal
Balance thereof has been reduced to zero; fourth, to the Class B-1 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero; fifth,
to the Class M-9 Certificates,  until the Certificate  Principal Balance thereof
has been  reduced  to zero;  sixth,  to the  Class M-8  Certificates,  until the
Certificate  Principal Balance thereof has been reduced to zero; seventh, to the
Class M-7 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero;  eighth, to the Class M-6  Certificates,  until the Certificate
Principal Balance thereof has been reduced to zero;

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ninth, to the Class M-5  Certificates,  until the Certificate  Principal Balance
thereof has been reduced to zero;  tenth, to the Class M-4  Certificates,  until
the Certificate Principal Balance thereof has been reduced to zero; eleventh, to
the Class M-3 Certificates,  until the Certificate Principal Balance thereof has
been  reduced  to zero;  twelfth,  to the  Class  M-2  Certificates,  until  the
Certificate  Principal Balance thereof has been reduced to zero; and thirteenth,
to the Class M-1 Certificates,  until the Certificate  Principal Balance thereof
has been reduced to zero. All Realized Losses to be allocated to the Certificate
Principal Balances of all Classes on any Distribution Date shall be so allocated
after the actual  distributions  to be made on such date as provided above.  All
references  above  to  the  Certificate   Principal  Balance  of  any  Class  of
Certificates  shall  be to the  Certificate  Principal  Balance  of  such  Class
immediately prior to the relevant Distribution Date, before reduction thereof by
any Realized Losses, in each case to be allocated to such Class of Certificates,
on such Distribution Date.

      Any  allocation  of  Realized  Losses to a  Mezzanine  Certificate  on any
Distribution  Date shall be made by reducing the Certificate  Principal  Balance
thereof by the amount so allocated; any allocation of Realized Losses to a Class
C Certificates shall be made by reducing the amount otherwise payable in respect
thereof pursuant to Section 4.01(d)(xxv).  No allocations of any Realized Losses
shall be made to the Certificate  Principal Balances of the Class A Certificates
or the Class P Certificates.

      (b) All Realized Losses on the Mortgage Loans shall be deemed to have been
allocated in the specified  percentages,  as follows:  first, to  Uncertificated
Accrued  Interest  payable  to the  REMIC 1  Regular  Interest  LTAA and REMIC 1
Regular  Interest  LTZZ up to an aggregate  amount equal to the REMIC 1 Interest
Loss Allocation Amount, 98% and 2%, respectively;  second, to the Uncertificated
Principal Balances of REMIC 1 Regular Interest LTAA and REMIC 1 Regular Interest
LTZZ up to an aggregate  amount equal to the REMIC 1 Principal  Loss  Allocation
Amount,  98%  and  2%,  respectively;  third,  to the  Uncertificated  Principal
Balances of REMIC 1 Regular  Interest  LTAA,  REMIC 1 Regular  Interest LTB2 and
REMIC  1  Regular  Interest  LTZZ,  98%,  1% and  1%,  respectively,  until  the
Uncertificated  Principal  Balance  of REMIC 1  Regular  Interest  LTB2 has been
reduced to zero;  fourth, to the  Uncertificated  Principal  Balances of REMIC 1
Regular  Interest  LTAA,  REMIC 1  Regular  Interest  LTB1 and  REMIC 1  Regular
Interest LTZZ, 98%, 1% and 1%, respectively,  until the Uncertificated Principal
Balance of REMIC 1 Regular Interest LTB1 has been reduced to zero; fifth, to the
Uncertificated  Principal  Balances of REMIC 1 Regular  Interest  LTAA,  REMIC 1
Regular  Interest  LTM9 and  REMIC 1  Regular  Interest  LTZZ,  98%,  1% and 1%,
respectively,  until the  Uncertificated  Principal  Balance  of REMIC 1 Regular
Interest LTM9 has been reduced to zero; sixth, to the  Uncertificated  Principal
Balances of REMIC 1 Regular  Interest  LTAA,  REMIC 1 Regular  Interest LTM8 and
REMIC  1  Regular  Interest  LTZZ,  98%,  1% and  1%,  respectively,  until  the
Uncertificated  Principal  Balance  of REMIC 1  Regular  Interest  LTM8 has been
reduced to zero;  seventh,  to the Uncertificated  Principal Balances of REMIC 1
Regular  Interest  LTAA,  REMIC 1  Regular  Interest  LTM7 and  REMIC 1  Regular
Interest LTZZ, 98%, 1% and 1%, respectively,  until the Uncertificated Principal
Balance of REMIC 1 Regular  Interest LTM7 has been reduced to zero;  eighth,  to
the Uncertificated  Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1
Regular  Interest  LTM6 and  REMIC 1  Regular  Interest  LTZZ,  98%,  1% and 1%,
respectively,  until the  Uncertificated  Principal  Balance  of REMIC 1 Regular
Interest LTM6 has been reduced to zero; ninth, to the  Uncertificated  Principal
Balances of REMIC 1 Regular  Interest  LTAA,  REMIC 1 Regular  Interest LTM5 and
REMIC  1  Regular  Interest  LTZZ,  98%,  1% and  1%,  respectively,  until  the
Uncertificated  Principal  Balance  of REMIC 1  Regular  Interest  LTM5 has been

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reduced to zero;  tenth,  to the  Uncertificated  Principal  Balances of REMIC 1
Regular  Interest  LTAA,  REMIC 1  Regular  Interest  LTM4 and  REMIC 1  Regular
Interest LTZZ, 98%, 1% and 1%, respectively,  until the Uncertificated Principal
Balance of REMIC 1 Regular Interest LTM4 has been reduced to zero; eleventh,  to
the Uncertificated  Principal Balances of REMIC 1 Regular Interest LTAA, REMIC 1
Regular  Interest  LTM3 and  REMIC 1  Regular  Interest  LTZZ,  98%,  1% and 1%,
respectively,  until the  Uncertificated  Principal  Balance  of REMIC 1 Regular
Interest LTM3 has been reduced to zero; twelfth, to the Uncertificated Principal
Balances of REMIC 1 Regular  Interest  LTAA,  REMIC 1 Regular  Interest LTM2 and
REMIC  1  Regular  Interest  LTZZ,  98%,  1% and  1%,  respectively,  until  the
Uncertificated  Principal  Balance  of REMIC 1  Regular  Interest  LTM2 has been
reduced to zero; and thirteenth,  to the  Uncertificated  Principal  Balances of
REMIC 1 Regular Interest LTAA, REMIC 1 Regular Interest LTM1 and REMIC 1 Regular
Interest LTZZ, 98%, 1% and 1%, respectively,  until the Uncertificated Principal
Balance of REMIC 1 Regular Interest LTM1 has been reduced to zero.

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                                    ARTICLE V

                                THE CERTIFICATES

      SECTION 5.01. The Certificates.

      Each of the Floating  Rate  Certificates,  the Class P  Certificates,  the
Class C Certificates and the Residual Certificates shall be substantially in the
forms annexed hereto as exhibits,  and shall,  on original  issue,  be executed,
authenticated and delivered by the Trustee to or upon the order of the Depositor
concurrently  with the sale and assignment to the Trustee of the Trust Fund. The
Floating  Rate  Certificates  shall  be  initially  evidenced  by  one  or  more
Certificates   representing   a  Percentage   Interest  with  a  minimum  dollar
denomination  of  $25,000  and  integral  dollar  multiples  of $1.00 in  excess
thereof,  except that one Certificate of each such Class of Certificates  may be
in a  different  denomination  so  that  the  sum  of the  denominations  of all
outstanding  Certificates  of such Class shall equal the  Certificate  Principal
Balance of such Class on the Closing Date. The Class P Certificates, the Class C
Certificates  and the  Residual  Certificates  are  issuable  in any  Percentage
Interests; provided, however, that the sum of all such percentages for each such
Class totals 100% and no more than ten  Certificates of each Class may be issued
and outstanding at any one time.

      The  Certificates  shall be  executed  on behalf of the Trust by manual or
facsimile  signature  on  behalf  of  the  Trustee  by  a  Responsible  Officer.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures  were affixed,  authorized to sign on behalf of
the Trustee shall bind the Trust,  notwithstanding  that such individuals or any
of them have ceased to be so authorized prior to the authentication and delivery
of  such  Certificates  or did  not  hold  such  offices  at the  date  of  such
Certificate.  No  Certificate  shall  be  entitled  to any  benefit  under  this
Agreement or be valid for any purpose,  unless such Certificate  shall have been
manually  authenticated  by the Trustee  substantially  in the form provided for
herein,  and such  authentication  upon  any  Certificate  shall  be  conclusive
evidence,   and  the  only  evidence,   that  such  Certificate  has  been  duly
authenticated and delivered hereunder.  All Certificates shall be dated the date
of their  authentication.  Subject to Section 5.02(c),  the Class A Certificates
and the  Mezzanine  Certificates  shall be  Book-Entry  Certificates.  The other
Classes of Certificates shall be Definitive Certificates.

      SECTION 5.02. Registration of Transfer and Exchange of Certificates.

      (a) The  Certificate  Registrar  shall  cause to be kept at the  Corporate
Trust  Office a  Certificate  Register  in  which,  subject  to such  reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of  Certificates  and of transfers and exchanges of Certificates as
herein provided.  The Trustee shall initially serve as Certificate Registrar for
the  purpose  of  registering   Certificates  and  transfers  and  exchanges  of
Certificates as herein provided.

      Upon  surrender for  registration  of transfer of any  Certificate  at any
office  or agency  of the  Certificate  Registrar  maintained  for such  purpose
pursuant to the foregoing paragraph and, in the case of a Residual  Certificate,
upon satisfaction of the conditions set forth below, the Trustee on

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behalf of the Trust shall execute,  authenticate and deliver, in the name of the
designated  transferee or transferees,  one or more new Certificates of the same
aggregate Percentage Interest.

      At the option of the Certificateholders, Certificates may be exchanged for
other Certificates in authorized denominations and the same aggregate Percentage
Interests, upon surrender of the Certificates to be exchanged at any such office
or agency.  Whenever any  Certificates  are so  surrendered  for  exchange,  the
Trustee  shall execute on behalf of the Trust and  authenticate  and deliver the
Certificates  which the  Certificateholder  making the  exchange  is entitled to
receive. Every Certificate presented or surrendered for registration of transfer
or exchange shall (if so required by the Trustee or the  Certificate  Registrar)
be duly  endorsed  by, or be  accompanied  by a written  instrument  of transfer
satisfactory to the Trustee and the Certificate  Registrar duly executed by, the
Holder thereof or his attorney duly authorized in writing. In addition, (i) with
respect to each Class R  Certificate,  the holder  thereof may exchange,  in the
manner described above, such Class R Certificate for two separate  certificates,
each representing such holder's respective  Percentage Interest in the Class R-1
Interest  and the Class  R-2  Interest  (in the form of  Exhibit  A-19  hereto),
respectively,  in each case that was evidenced by the Class R Certificate  being
exchanged  and (ii) with  respect  to each  Class R-X  Certificate,  the  holder
thereof may exchange,  in the manner described above, such Class R-X Certificate
for two  separate  certificates,  each  representing  such  holder's  respective
Percentage Interest in the Class R-3 Interest and the Class R-4 Interest (in the
form of Exhibit A-19 hereto),  respectively,  in each case that was evidenced by
the Class R-X Certificate being exchanged.

      (b) Except as provided in paragraph (c) below, the Book-Entry Certificates
shall  at all  times  remain  registered  in the name of the  Depository  or its
nominee  and at all times:  (i)  registration  of such  Certificates  may not be
transferred  by the Trustee  except to another  Depository;  (ii) the Depository
shall maintain  book-entry  records with respect to the  Certificate  Owners and
with respect to ownership and transfers of such  Certificates;  (iii)  ownership
and  transfers  of  registration  of  such  Certificates  on  the  books  of the
Depository shall be governed by applicable rules  established by the Depository;
(iv) the  Depository  may  collect  its usual and  customary  fees,  charges and
expenses  from  its  Depository  Participants;  (v) the  Trustee  shall  for all
purposes deal with the Depository as representative of the Certificate Owners of
the  Certificates  for purposes of  exercising  the rights of Holders under this
Agreement,  and requests  and  directions  for and votes of such  representative
shall  not be  deemed  to be  inconsistent  if they are  made  with  respect  to
different  Certificate  Owners;  (vi) the  Trustee  may rely and  shall be fully
protected in relying upon  information  furnished by the Depository with respect
to its Depository Participants and furnished by the Depository Participants with
respect to indirect  participating  firms and Persons shown on the books of such
indirect participating firms as direct or indirect Certificate Owners; and (vii)
the  direct  participants  of the  Depository  shall  have no rights  under this
Agreement under or with respect to any of the Certificates  held on their behalf
by the  Depository,  and the  Depository  may be treated by the  Trustee and its
agents,  employees,  officers  and  directors  as  the  absolute  owner  of  the
Certificates for all purposes whatsoever.

      All transfers by Certificate  Owners of Book-Entry  Certificates  shall be
made in accordance with the procedures established by the Depository Participant
or  brokerage  firm  representing  such  Certificate   Owners.  Each  Depository
Participant shall only transfer  Book-Entry  Certificates of Certificate  Owners
that it represents or of brokerage firms for which it acts as agent

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<PAGE>

in accordance with the Depository's  normal  procedures.  The parties hereto are
hereby authorized to execute a Letter of Representations  with the Depository or
take such other action as may be necessary or desirable to register a Book-Entry
Certificate to the Depository.

      (c) If (i)(x) the  Depository  or the  Depositor  advises  the  Trustee in
writing that the Depository is no longer  willing or able to discharge  properly
its  responsibilities  as  Depository  and (y) the Trustee or the  Depositor  is
unable to locate a qualified successor,  (ii) the Depositor, at its sole option,
with the consent of the  Trustee,  elects to  terminate  the  book-entry  system
through the  Depository  or (iii) after the  occurrence  of a Servicer  Event of
Termination,  the Certificate Owners of the Book-Entry Certificates representing
Percentage  Interests of such Classes  aggregating  not less than 51% advise the
Trustee and Depository  through the financial  intermediaries and the Depository
Participants in writing that the continuation of a book-entry system through the
Depository to the exclusion of issuing definitive, fully registered certificates
(the "Definitive  Certificates") to Certificate  Owners is no longer in the best
interests of the  Certificate  Owners,  then upon  surrender to the  Certificate
Registrar of the  Book-Entry  Certificates  by the  Depository,  accompanied  by
registration  instructions  from the  Depository for  registration,  the Trustee
shall,  at the  Depositor's  expense,  in the case of (i) or (ii) above,  or the
Servicer's expense,  in the case of (iii) above,  execute on behalf of the Trust
and  authenticate  the  Definitive  Certificates.  Neither the Depositor nor the
Trustee  shall  be  liable  for any  delay  in  delivery  of  such  registration
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions.  Upon the issuance of Definitive  Certificates,  the Trustee,
the  Certificate  Registrar,  the  Servicer,  any Paying Agent and the Depositor
shall recognize the Holders of the Definitive Certificates as Certificateholders
hereunder.

      (d) No  transfer,  sale,  pledge  or  other  disposition  of any  Class  B
Certificate,  Class C Certificate,  Class P Certificate or Residual  Certificate
shall  be  made  unless  such   disposition  is  exempt  from  the  registration
requirements of the Securities Act of 1933, as amended (the "1933 Act"), and any
applicable  state securities laws or is made in accordance with the 1933 Act and
such laws. In the event of any such transfer, except with respect to the initial
transfer of any Class B Certificate, Class C Certificate, Class P Certificate or
Residual  Certificates  by the  Depositor  (i) unless  such  transfer is made in
reliance upon Rule 144A (as evidenced by an investment  letter  delivered to the
Trustee,  in substantially the form attached hereto as Exhibit J) under the 1933
Act, the Trustee and the Depositor  shall  require a written  Opinion of Counsel
(which  may  be  in-house  counsel)  acceptable  to and in  form  and  substance
reasonably satisfactory to the Trustee and the Depositor, that such transfer may
be made pursuant to an exemption,  describing the  applicable  exemption and the
basis  therefor,  from the 1933 Act or is being made  pursuant  to the 1933 Act,
which Opinion of Counsel shall not be an expense of the Trustee or the Depositor
or (ii) the  Trustee  shall  require  the  transferor  to  execute a  transferor
certificate  (in  substantially  the form attached  hereto as Exhibit L) and the
transferee to execute an investment  letter (in  substantially the form attached
hereto  as  Exhibit  J)  acceptable  to and in  form  and  substance  reasonably
satisfactory  to the Depositor  and the Trustee  certifying to the Depositor and
the Trustee the facts  surrounding such transfer,  which investment letter shall
not be an  expense  of the  Trustee  or the  Depositor.  The Holder of a Class B
Certificate,  Class C Certificate,  Class P Certificate or Residual  Certificate
desiring to effect such transfer shall,  and does hereby agree to, indemnify the
Trustee and the Depositor  against any liability that may result if the transfer
is not so exempt or is not made in accordance  with such federal and state laws.
Notwithstanding  anything  to the  contrary  contained  in this  Agreement,  all
transfers of the Class B Certificates shall be made in reliance upon Rule 144A.

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<PAGE>

      Notwithstanding  the  foregoing,  no  certification  or Opinion of Counsel
described  in this  Section  5.02(d)  will be  required in  connection  with the
transfer, on the Closing Date, of any Class R Certificate by the Depositor to an
"accredited investor" within the meaning of Rule 501 of the 1933 Act.

      No  transfer  of a  Class B  Certificate,  Class  C  Certificate,  Class P
Certificate or Residual Certificate or any interest therein shall be made to any
Plan subject to ERISA or Section 4975 of the Code, any Person  acting,  directly
or  indirectly,  on  behalf  of any  such  Plan  or any  Person  acquiring  such
Certificates  with "Plan  Assets" of a Plan within the meaning of  Department of
Labor regulations  promulgated at 29 C.F.R. ss.  2510.3-101 ("Plan Assets"),  as
certified by such transferee in the form of Exhibit M, unless (i) in the case of
a Class C  Certificate,  a Class P  Certificate  or  Residual  Certificate,  the
Depositor,  the Trustee and the Servicer are provided with an Opinion of Counsel
which  establishes to the  satisfaction  of the  Depositor,  the Trustee and the
Servicer that the purchase of such  Certificates is permissible under applicable
law, will not constitute or result in any prohibited  transaction under ERISA or
Section 4975 of the Code and will not subject the Depositor,  the Servicer,  the
Trustee or the Trust Fund to any obligation or liability (including  obligations
or  liabilities  under  ERISA or Section  4975 of the Code) in addition to those
undertaken in this  Agreement,  which Opinion of Counsel shall not be an expense
of the  Depositor,  the  Servicer,  the Trustee or the Trust Fund or (ii) in the
case of a Class B Certificate, (1) it is an insurance company, (2) the source of
funds  used to  acquire  or hold  the  certificate  or  interest  therein  is an
"insurance  company  general  account,"  as such term is defined  in  Prohibited
Transaction Class Exemption  ("PTCE") 95-60 and (3) the conditions in Sections I
and III of PTCE  95-60  have  been  satisfied.  Neither a  certification  nor an
Opinion of Counsel will be required in connection  with the initial  transfer of
any such Certificate by the Depositor to an Affiliate of the Depositor (in which
case, the Depositor or any Affiliate thereof shall be deemed to have represented
that such  Affiliate  is not a Plan or a Person  investing  Plan Assets) and the
Trustee  shall be entitled to  conclusively  rely upon a  representation  (which
shall be a written  representation)  from the  Depositor  of the  status of such
transferee as an affiliate of the Depositor.

      Each  Transferee  of a  Mezzanine  Certificate  will  be  deemed  to  have
represented  by  virtue of its  purchase  or  holding  of such  Certificate  (or
interest  therein)  that either (a) such  Transferee is not a Plan or purchasing
such  Certificate  with Plan  Assets,  (b) it has  acquired  and is holding such
Certificate in reliance on Prohibited  Transaction  Exemption  ("PTE") 90-59, 55
Fed. Reg.  36724  (September 6, 1990),  as amended by PTE 2000-58,  65 Fed. Reg.
67765 (November 13, 2000) and PTE 2002-41,  67 Fed. Reg. 54487 (August 22, 2002)
(the "Exemption"),  and that it understands that there are certain conditions to
the availability of the Exemption including that such Certificate must be rated,
at the time of purchase,  not lower than "BBB-" (or its  equivalent) by a Rating
Agency, or (c) the following conditions are satisfied: (i) such Transferee is an
insurance  company,  (ii) the  source  of funds  used to  purchase  or hold such
Certificate (or interest therein) is an "insurance  company general account" (as
defined in PTCE 95-60), and (iii) the conditions set forth in Sections I and III
of PTCE 95-60 have been satisfied.

      If any Mezzanine  Certificate,  Class B Certificate,  Class C Certificate,
Class P Certificate or Residual  Certificate or any interest therein is acquired
or held in violation of the  provisions  of the preceding  paragraphs,  the next
preceding permitted  beneficial owner will be treated as the beneficial owner of
that Certificate retroactive to the date of transfer to the purported

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<PAGE>

beneficial owner. Any purported beneficial owner whose acquisition or holding of
any such  Certificate  or interest  therein was  effected  in  violation  of the
provisions  of the  preceding  paragraph  shall  indemnify and hold harmless the
Depositor,  the Servicer, the Trustee and the Trust from and against any and all
liabilities,  claims, costs or expenses incurred by those parties as a result of
that acquisition or holding.

      Each Person who has or who acquires any  Ownership  Interest in a Residual
Certificate  shall be deemed by the  acceptance or acquisition of such Ownership
Interest  to have  agreed to be bound by the  following  provisions  and to have
irrevocably  appointed the Depositor or its designee as its attorney- in-fact to
negotiate the terms of any mandatory  sale under clause (v) below and to execute
all  instruments of transfer and to do all other things  necessary in connection
with any such  sale,  and the  rights of each  Person  acquiring  any  Ownership
Interest  in a Residual  Certificate  are  expressly  subject  to the  following
provisions:

            (i) Each Person  holding or acquiring  any  Ownership  Interest in a
      Residual  Certificate  shall be a Permitted  Transferee and shall promptly
      notify the  Trustee of any change or  impending  change in its status as a
      Permitted Transferee.

            (ii) No Person  shall  acquire an  Ownership  Interest in a Residual
      Certificate  unless  such  Ownership  Interest  is a  PRO  RATA  undivided
      interest.

            (iii) In  connection  with any  proposed  transfer of any  Ownership
      Interest in a Residual  Certificate,  the Trustee  shall as a condition to
      registration  of the  transfer,  require  delivery  to  it,  in  form  and
      substance satisfactory to it, of each of the following:

            (A)   an affidavit in the form of Exhibit K hereto from the proposed
                  transferee  to the effect that such  transferee is a Permitted
                  Transferee and that it is not acquiring its Ownership Interest
                  in  the  Residual  Certificate  that  is  the  subject  of the
                  proposed  transfer  as a  nominee,  trustee  or agent  for any
                  Person who is not a Permitted Transferee; and

            (B)   a covenant of the proposed  transferee  to the effect that the
                  proposed  transferee agrees to be bound by and to abide by the
                  transfer restrictions applicable to the Residual Certificates.

            (iv) Any attempted or purported  transfer of any Ownership  Interest
      in a Residual  Certificate  in violation of the provisions of this Section
      shall  be  absolutely  null  and  void and  shall  vest no  rights  in the
      purported  transferee.  If any purported transferee shall, in violation of
      the provisions of this Section, become a Holder of a Residual Certificate,
      then the prior  Holder of such  Residual  Certificate  that is a Permitted
      Transferee shall, upon discovery that the registration of transfer of such
      Residual  Certificate  was  not in fact  permitted  by  this  Section,  be
      restored  to all  rights  as  Holder  thereof  retroactive  to the date of
      registration of transfer of such Residual  Certificate.  The Trustee shall
      be under no liability to any Person for any  registration of transfer of a
      Residual  Certificate that is in fact not permitted by this Section or for
      making any  distributions  due on such Residual  Certificate to the Holder
      thereof or taking any other  action with  respect to such Holder under the
      provisions of this Agreement so long as the Trustee received the documents
      specified in

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<PAGE>

      clause (iii).  The Trustee shall be entitled to recover from any Holder of
      a Residual  Certificate that was in fact not a Permitted Transferee at the
      time such  distributions were made all distributions made on such Residual
      Certificate.  Any such  distributions so recovered by the Trustee shall be
      distributed  and  delivered  by the  Trustee  to the prior  Holder of such
      Residual Certificate that is a Permitted Transferee.

            (v) If any Person  other than a Permitted  Transferee  acquires  any
      Ownership  Interest  in  a  Residual   Certificate  in  violation  of  the
      restrictions  in this  Section,  then the Trustee shall have the right but
      not  the  obligation,  without  notice  to the  Holder  of  such  Residual
      Certificate or any other Person having an Ownership  Interest therein,  to
      notify the Depositor to arrange for the sale of such Residual Certificate.
      The  proceeds  of  such  sale,  net  of  commissions  (which  may  include
      commissions  payable to the Depositor or its affiliates in connection with
      such  sale),  expenses  and taxes due,  if any,  will be  remitted  by the
      Trustee to the  previous  Holder of such  Residual  Certificate  that is a
      Permitted Transferee, except that in the event that the Trustee determines
      that the Holder of such Residual  Certificate may be liable for any amount
      due under this  Section or any other  provisions  of this  Agreement,  the
      Trustee  may  withhold a  corresponding  amount  from such  remittance  as
      security for such claim.  The terms and  conditions of any sale under this
      clause (v) shall be determined  in the sole  discretion of the Trustee and
      it shall not be liable to any Person  having an  Ownership  Interest  in a
      Residual Certificate as a result of its exercise of such discretion.

            (vi) If any Person  other than a Permitted  Transferee  acquires any
      Ownership  Interest  in  a  Residual   Certificate  in  violation  of  the
      restrictions in this Section,  then the Trustee upon receipt of reasonable
      compensation  will provide to the  Internal  Revenue  Service,  and to the
      persons specified in Sections 860E(e)(3) and (6) of the Code,  information
      needed to compute the tax imposed under Section  860E(e)(5) of the Code on
      transfers of residual interests to disqualified organizations.

      The foregoing provisions of this Section shall cease to apply to transfers
occurring  on or after the date on which there shall have been  delivered to the
Trustee,  in  form  and  substance  satisfactory  to the  Trustee,  (i)  written
notification  from each Rating  Agency that the removal of the  restrictions  on
transfer  set  forth in this  Section  will not  cause  such  Rating  Agency  to
downgrade its rating of the  Certificates  and (ii) an Opinion of Counsel to the
effect that such removal will not cause any REMIC  created  hereunder to fail to
qualify as a REMIC.

      (e) No service  charge shall be made for any  registration  of transfer or
exchange of Certificates of any Class, but the Certificate Registrar may require
payment of a sum sufficient to cover any tax or governmental  charge that may be
imposed in connection with any transfer or exchange of Certificates.

      All  Certificates  surrendered  for  registration  of transfer or exchange
shall be canceled by the  Certificate  Registrar and disposed of pursuant to its
standard procedures.

      SECTION 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.

      If (i)  any  mutilated  Certificate  is  surrendered  to  the  Certificate
Registrar or the Certificate  Registrar receives evidence to its satisfaction of
the destruction, loss or theft of any Certificate and (ii) there is delivered to
the Trustee, the Depositor and the Certificate Registrar such

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security or indemnity as may be required by them to save each of them  harmless,
then, in the absence of notice to the Trustee or the Certificate  Registrar that
such  Certificate has been acquired by a bona fide purchaser,  the Trustee shall
execute on behalf of the Trust,  authenticate and deliver, in exchange for or in
lieu of any  such  mutilated,  destroyed,  lost  or  stolen  Certificate,  a new
Certificate of like tenor and Percentage Interest.  Upon the issuance of any new
Certificate  under this Section,  the Trustee or the  Certificate  Registrar may
require the payment of a sum  sufficient to cover any tax or other  governmental
charge that may be imposed in relation thereto and any other expenses (including
the  fees  and  expenses  of the  Trustee  and  the  Certificate  Registrar)  in
connection therewith. Any duplicate Certificate issued pursuant to this Section,
shall constitute  complete and indefeasible  evidence of ownership in the Trust,
as  if  originally  issued,  whether  or  not  the  lost,  stolen  or  destroyed
Certificate shall be found at any time.

      SECTION 5.04. Persons Deemed Owners.

      The Servicer, the Depositor,  the Trustee, the Certificate Registrar,  any
Paying Agent and any agent of the  Servicer,  the  Depositor,  the Trustee,  the
Certificate  Registrar  or any Paying  Agent may treat the  Person,  including a
Depository,  in whose name any  Certificate  is  registered as the owner of such
Certificate for the purpose of receiving  distributions pursuant to Section 4.01
and for all other purposes whatsoever,  and none of the Servicer, the Trust, the
Trustee  nor any  agent  of any of them  shall  be  affected  by  notice  to the
contrary.

      SECTION 5.05. Appointment of Paying Agent.

      (a) The Paying Agent shall make distributions to  Certificateholders  from
the  Distribution  Account pursuant to Section 4.01 and shall report the amounts
of such distributions to the Trustee. The duties of the Paying Agent may include
the obligation (i) to withdraw  funds from the  Collection  Account  pursuant to
Section  3.11(a)  and for the  purpose of making the  distributions  referred to
above  and  (ii)  to   distribute   statements   and  provide   information   to
Certificateholders  as required  hereunder.  The Paying Agent hereunder shall at
all times be an entity duly organized and validly existing under the laws of the
United  States of America or any state  thereof,  authorized  under such laws to
exercise  corporate  trust powers and subject to  supervision  or examination by
federal or state  authorities.  The Paying Agent shall initially be the Trustee.
The Trustee may appoint a successor to act as Paying  Agent,  which  appointment
shall be reasonably satisfactory to the Depositor.

      (b) The Trustee  shall cause the Paying  Agent (if other than the Trustee)
to execute and deliver to the Trustee an  instrument  in which such Paying Agent
shall agree with the Trustee that such Paying Agent shall hold all sums, if any,
held by it for payment to the Certificateholders in trust for the benefit of the
Certificateholders  entitled  thereto  until  such  sums  shall  be paid to such
Certificateholders and shall agree that it shall comply with all requirements of
the Code  regarding  the  withholding  of payments in respect of Federal  income
taxes due from  Certificate  Owners and otherwise  comply with the provisions of
this Agreement applicable to it.

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                                   ARTICLE VI

                         THE SERVICER AND THE DEPOSITOR

      SECTION 6.01. Liability of the Servicer and the Depositor.

      The Servicer shall be liable in accordance  herewith only to the extent of
the obligations specifically imposed upon and undertaken by Servicer herein. The
Depositor  shall be  liable in  accordance  herewith  only to the  extent of the
obligations specifically imposed upon and undertaken by the Depositor.

      SECTION 6.02. Merger or Consolidation of, or Assumption of the Obligations
                    of, the Servicer or the Depositor.

      Any  entity  into  which  the  Servicer  or  Depositor  may be  merged  or
consolidated,   or  any  entity   resulting  from  any  merger,   conversion  or
consolidation  to which the Servicer or the Depositor  shall be a party,  or any
corporation  succeeding to the business of the Servicer or the Depositor,  shall
be the  successor  of the  Servicer  or the  Depositor,  as  the  case  may  be,
hereunder,  without the  execution  or filing of any paper or any further act on
the  part  of  any  of the  parties  hereto,  anything  herein  to the  contrary
notwithstanding;  provided,  however,  that the successor Servicer shall satisfy
all the  requirements  of Section 7.02 with respect to the  qualifications  of a
successor Servicer.

      SECTION 6.03. Limitation on Liability of the Servicer and Others.

      Neither  the  Servicer  nor  the  Depositor  nor any of the  directors  or
officers or employees or agents of the Servicer or the Depositor  shall be under
any liability to the Trust or the Certificateholders for any action taken or for
refraining  from the taking of any action by the  Servicer or the  Depositor  in
good faith  pursuant to this  Agreement,  or for errors in  judgment;  provided,
however,  that this provision  shall not protect the Servicer,  the Depositor or
any such Person against any liability which would otherwise be imposed by reason
of its willful misfeasance, bad faith or negligence in the performance of duties
of the  Servicer  or the  Depositor,  as the case may be,  or by  reason  of its
reckless  disregard of its obligations  and duties as Servicer or Depositor,  as
the case may be, hereunder. The Servicer and any director or officer or employee
or agent of the  Servicer  may rely in good  faith on any  document  of any kind
prima facie properly executed and submitted by any Person respecting any matters
arising hereunder.  The Servicer and the Depositor,  and any director or officer
or employee or agent of the Servicer or the  Depositor,  shall be indemnified by
the Trust and held harmless  against any loss,  liability or expense incurred in
connection  with  (i)  any  legal  action  relating  to  this  Agreement  or the
Certificates,  other than any loss,  liability or expense  incurred by reason of
its willful  misfeasance,  bad faith or  negligence or by reason of its reckless
disregard of its obligations and duties hereunder or by reason of its failure to
perform  its  obligations  or  duties   hereunder  and  (ii)  any  breach  of  a
representation  or warranty  regarding the Mortgage  Loans.  The Servicer or the
Depositor may undertake any such action which it may deem necessary or desirable
in respect of this  Agreement,  and the rights and duties of the parties  hereto
and the interests of the Certificateholders hereunder. In such event, unless the
Depositor  or  the  Servicer   acts  without  the  consent  of  the  Holders  of
Certificates entitled to at least 51% of the Voting Rights, the reasonable legal
expenses and costs of such action and any liability resulting therefrom shall be
expenses, costs

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and liabilities of the Trust and the Servicer shall be entitled to be reimbursed
therefor from the  Collection  Account as and to the extent  provided in Section
3.11,  any  such  right  of  reimbursement  being  prior  to the  rights  of the
Certificateholders  to  receive  any  amount  in  the  Collection  Account.  The
Servicer's  right to indemnity or  reimbursement  pursuant to this Section shall
survive any resignation or termination of the Servicer  pursuant to Section 6.04
or 7.01 with respect to any losses, expenses, costs or liabilities arising prior
to such  resignation or termination  (or arising from events that occurred prior
to such resignation or termination).  This paragraph shall apply to the Servicer
solely in its capacity as Servicer hereunder and in no other capacities.

      SECTION 6.04. Servicer Not to Resign.

      The  Servicer  shall not resign  from the  obligations  and duties  hereby
imposed on it except upon  determination that its duties hereunder are no longer
permissible  under  applicable  law.  Any  such  determination  pursuant  to the
preceding sentence permitting the resignation of the Servicer shall be evidenced
by an Opinion of Counsel to such effect  obtained at the expense of the Servicer
and  delivered  to the Trustee.  No  resignation  of the  Servicer  shall become
effective  until the  Trustee or a  successor  servicer  shall have  assumed the
Servicer's  responsibilities,  duties, liabilities (other than those liabilities
arising  prior to the  assumption  of  servicing  duties by the  Trustee  or the
appointment of such  successor) and obligations  under this Agreement.  Any such
resignation  shall not relieve the  Servicer  of  responsibility  for any of the
obligations  specified in Sections 7.01 and 7.02 as obligations that survive the
resignation or receipt of notice of termination of the Servicer

      Except as expressly  provided in this  Agreement,  the Servicer  shall not
assign or transfer any of its rights,  benefits or  privileges  hereunder to any
other Person,  or delegate to or  subcontract  with, or authorize or appoint any
other  Person to perform  any of the  duties,  covenants  or  obligations  to be
performed by the Servicer  hereunder.  The foregoing  prohibition  on assignment
shall not prohibit the Servicer from  designating a Sub-Servicer as payee of any
indemnification amount payable to the Servicer hereunder;  provided, however, no
Sub-Servicer shall be a third-party beneficiary hereunder and the parties hereto
shall not be required to recognize any  Subservicer as an indemnitee  under this
Agreement.

      SECTION 6.05. Delegation of Duties.

      In the ordinary course of business,  the Servicer at any time may delegate
any of its duties hereunder to any Person, including any of its Affiliates,  who
agrees to conduct such duties in accordance  with standards  comparable to those
set forth in Section 3.01. Such delegation shall not relieve the Servicer of its
liabilities  and  responsibilities  with  respect  to such  duties and shall not
constitute a resignation  within the meaning of Section 6.04. Except as provided
in Section  3.02, no such  delegation  is permitted  that results in the delegee
subservicing  any Mortgage Loans. The Servicer shall provide the Trustee with 60
days prior  written  notice prior to the  delegation of any of its duties to any
Person  other  than  any  of  the  Servicer's  Affiliates  or  their  respective
successors and assigns.

      SECTION 6.06. [Reserved].

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      SECTION 6.07. Inspection.

      The Servicer, in its capacity as Servicer,  shall afford the Trustee, upon
reasonable  notice,   during  normal  business  hours,  access  to  all  records
maintained  by the Servicer in respect of its rights and  obligations  hereunder
and access to officers of the Servicer responsible for such obligations.

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                                   ARTICLE VII

                                     DEFAULT

      SECTION 7.01. Servicer Events of Termination.

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

            (i) (A) The failure by the Servicer to make any Advance;  or (B) any
      other failure by the Servicer to deposit in the Collection  Account or the
      Distribution  Account any  deposit  required to be made under the terms of
      this Agreement which continues unremedied for a period of one Business Day
      after the date upon which  written  notice of such failure shall have been
      given to the Servicer by the Trustee or to the Servicer and the Trustee by
      any Holders of a Regular Certificate evidencing at least 25% of the Voting
      Rights; or

            (ii) The  failure by the  Servicer  to make any  required  Servicing
      Advance which failure continues unremedied for a period of 30 days, or the
      failure  by the  Servicer  duly to  observe or  perform,  in any  material
      respect, any other covenants, obligations or agreements of the Servicer as
      set forth in this  Agreement,  which failure  continues  unremedied  for a
      period of 30 days (or if such failure or breach cannot be remedied  within
      30 days,  then such remedy  shall have been  commenced  within 30 days and
      diligently pursued thereafter;  provided,  however, that in no event shall
      such failure or breach be allowed to exist for a period of greater than 90
      days),  after  the date  (A) on  which  written  notice  of such  failure,
      requiring  the same to be remedied,  shall have been given to the Servicer
      by the Trustee or to the  Trustee by any Holders of a Regular  Certificate
      evidencing at least 25% of the Voting Rights or (B) of actual knowledge of
      such failure by a Servicing Officer of the Servicer; or

            (iii) The entry against the Servicer of a decree or order by a court
      or agency or supervisory authority having jurisdiction in the premises for
      the appointment of a trustee,  conservator,  receiver or liquidator in any
      insolvency,   conservatorship,   receivership,   readjustment   of   debt,
      marshalling of assets and liabilities or similar  proceedings,  or for the
      winding up or liquidation of its affairs,  and the continuance of any such
      decree or order unstayed and in effect for a period of 60 days; or

            (iv) The Servicer shall voluntarily go into liquidation,  consent to
      the  appointment  of a  conservator  or receiver or  liquidator or similar
      person in any insolvency,  readjustment of debt, marshalling of assets and
      liabilities or similar proceedings of or relating to the Servicer or of or
      relating to all or substantially all of its property; or a decree or order
      of a court or agency or supervisory  authority having  jurisdiction in the
      premises for the  appointment  of a conservator,  receiver,  liquidator or
      similar person in any  insolvency,  readjustment  of debt,  marshalling of
      assets and  liabilities or similar  proceedings,  or for the winding-up or
      liquidation of its affairs,  shall have been entered  against the Servicer
      and such  decree  or order  shall  have  remained  in force  undischarged,
      unbonded or unstayed for a period of 60 days; or the Servicer  shall admit
      in writing its  inability  to pay its debts  generally as they become due,
      file a  petition  to  take  advantage  of  any  applicable  insolvency  or
      reorganization

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<PAGE>

      statute,   make  an  assignment  for  the  benefit  of  its  creditors  or
      voluntarily suspend payment of its obligations; or

            (v) Centex Corporation or its successors shall fail to own, directly
      or indirectly,  at least 51% of the Servicer  unless the Servicer shall be
      rated at least  investment  grade by each of Standard & Poor's and Moody's
      and, if rated by Fitch Ratings, by Fitch Ratings.

      (b) then,  and in each and every such case, so long as a Servicer Event of
Termination shall not have been remedied within the applicable grace period, (x)
with respect solely to clause (i)(A) above, if such Advance is not made by 11:00
A.M.,  New York time,  on the Business Day  immediately  following  the Servicer
Remittance Date (provided the Trustee shall give the Servicer,  and the Servicer
shall have  received,  notice of such  failure to advance by 5:00 P.M.  New York
time on the Servicer  Remittance  Date),  the Trustee shall terminate all of the
rights and obligations of the Servicer under this Agreement and the Trustee,  or
a  successor   servicer   appointed  in  accordance  with  Section  7.02,  shall
immediately  make such Advance and assume,  pursuant to Section 7.02, the duties
of a successor Servicer and (y) in the case of (i)(B), (ii), (iii), (iv) and (v)
above,  the  Trustee  shall,  at the  direction  of the Holders of each Class of
Regular Certificates  evidencing  Percentage Interests aggregating not less than
51%,  by notice  then given in writing to the  Servicer  (and to the  Trustee if
given by Holders of  Certificates),  terminate all of the rights and obligations
of the  Servicer  as  servicer  under  this  Agreement.  Any such  notice to the
Servicer  shall  also be given to each  Rating  Agency,  the  Depositor  and the
Servicer.  On or after the receipt by the  Servicer  (and by the Trustee if such
notice is given by the Holders) of such written notice,  all authority and power
of the Servicer under this Agreement,  whether with respect to the  Certificates
or the Mortgage  Loans or otherwise,  shall pass to and be vested in the Trustee
pursuant to and under this Section; and, without limitation,  and the Trustee is
hereby  authorized  and  empowered  to  execute  and  deliver,  on behalf of the
Servicer,  as  attorney-in-fact  or  otherwise,  any and all documents and other
instruments,  and to do or  accomplish  all other  acts or things  necessary  or
appropriate  to effect the  purposes of such notice of  termination,  whether to
complete  the  transfer  and  endorsement  of each  Mortgage  Loan  and  related
documents or otherwise.  The Servicer  agrees to cooperate  with the Trustee (or
the  applicable   successor  Servicer)  in  effecting  the  termination  of  the
responsibilities  and  rights  of the  Servicer  hereunder,  including,  without
limitation,  the delivery to the Trustee of all documents and records  requested
by it to enable it to assume  the  Servicer's  functions  under  this  Agreement
within ten Business  Days  subsequent  to such notice,  the transfer  within one
Business  Day  subsequent  to such  notice  to the  Trustee  (or the  applicable
successor  Servicer) for the administration by it of all cash amounts that shall
at the time be held by the Servicer and to be deposited by it in the  Collection
Account, the Distribution Account, any REO Account or any Escrow Account or that
have been  deposited by the Servicer in such accounts or thereafter  received by
the Servicer with respect to the Mortgage Loans or any REO Property  received by
the Servicer.  All reasonable  costs and expenses  (including  attorneys'  fees)
incurred in connection  with  transferring  the Mortgage  Files to the successor
Servicer and amending  this  Agreement  to reflect such  succession  as Servicer
pursuant to this Section  shall be paid by the  predecessor  Servicer (or if the
predecessor  Servicer is the Trustee, the initial Servicer) upon presentation of
reasonable  documentation  of such costs and expenses and to the extent not paid
by the Servicer, by the Trust.

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<PAGE>

      Notwithstanding  the termination of the Servicer  hereunder,  the Servicer
shall  be  entitled  to  reimbursement  of all  unpaid  Servicing  Fees  and all
unreimbursed  Advances and Servicing Advances in the manner and at the times set
forth herein.

      SECTION 7.02. Trustee to Act; Appointment of Successor.

      (a) From the time the Servicer (and the Trustee,  if notice is sent by the
Holders) receives a notice of termination  pursuant to Section 7.01 or 6.04, the
Trustee (or such other successor Servicer as is approved in accordance with this
Agreement)  shall  be the  successor  in all  respects  to the  Servicer  in its
capacity as servicer  under this  Agreement  and the  transactions  set forth or
provided for herein and shall be subject to all the responsibilities, duties and
liabilities  relating thereto placed on the Servicer by the terms and provisions
hereof arising on and after its succession.  Notwithstanding the foregoing,  the
parties  hereto agree that the Trustee,  in its capacity as successor  Servicer,
immediately will assume all of the obligations of the Servicer to make advances.
Notwithstanding  the  foregoing,  the  Trustee,  in its  capacity  as  successor
Servicer,  shall not be responsible for the lack of information and/or documents
that it cannot obtain through reasonable efforts. It is understood and agreed by
the parties  hereto that there will be a period of transition  (not to exceed 90
days) before the  transition of servicing  obligations  is fully  effective.  As
compensation  therefor,  the Trustee (or such other successor Servicer) shall be
entitled  to such  compensation  as the  Servicer  would have been  entitled  to
hereunder if no such notice of termination had been given.  Notwithstanding  the
above,  (i) if the Trustee is unwilling to act as successor  Servicer or (ii) if
the Trustee is legally unable so to act, the Trustee shall appoint or petition a
court of competent  jurisdiction to appoint,  any  established  housing and home
finance  institution,  bank or other  mortgage loan or home equity loan servicer
having a net worth of not less than $50,000,000 as the successor to the Servicer
hereunder in the assumption of all or any part of the  responsibilities,  duties
or liabilities of the Servicer hereunder;  provided, that the appointment of any
such  successor  Servicer  will not result in the  qualification,  reduction  or
withdrawal of the ratings assigned to the Certificates by the Rating Agencies as
evidenced  by a  letter  to  such  effect  from  the  Rating  Agencies.  Pending
appointment  of a successor  to the  Servicer  hereunder,  unless the Trustee is
prohibited  by law from so acting,  the  Trustee  shall act in such  capacity as
hereinabove  provided.  In connection with such appointment and assumption,  the
successor shall be entitled to receive  compensation out of payments on Mortgage
Loans in an amount equal to the compensation  which the Servicer would otherwise
have  received  pursuant  to  Section  3.18 (or such other  compensation  as the
Trustee and such successor  shall agree,  not to exceed the Servicing  Fee). The
appointment  of a  successor  Servicer  shall not  affect any  liability  of the
predecessor  Servicer  which may have arisen under this  Agreement  prior to its
termination as Servicer to pay any deductible under an insurance policy pursuant
to Section 3.14 or to reimburse the Trustee pursuant to Section 3.06), nor shall
any  successor  Servicer be liable for any acts or omissions of the  predecessor
Servicer  or for any breach by such  Servicer of any of its  representations  or
warranties contained herein or in any related document or agreement. The Trustee
and such successor shall take such action,  consistent  with this Agreement,  as
shall be necessary to effectuate any such succession.  All reasonable  Servicing
Transfer Costs shall be paid by the  predecessor  Servicer upon  presentation of
reasonable  documentation  of  such  costs,  and if  such  predecessor  Servicer
defaults in its  obligation  to pay such costs,  such costs shall be paid by the
successor  Servicer or the Trustee (in which case the successor  Servicer or the
Trustee,  as applicable,  shall be entitled to  reimbursement  therefor from the
assets of the Trust).

                                      122
<PAGE>

      (b) Any successor to the Servicer, including the Trustee, shall during the
term of its service as servicer  continue to service and administer the Mortgage
Loans for the benefit of  Certificateholders,  and maintain in force a policy or
policies of insurance  covering  errors and omissions in the  performance of its
obligations  as  Servicer  hereunder  and a  fidelity  bond  in  respect  of its
officers, employees and agents to the same extent as the Servicer is so required
pursuant to Section 3.14.

      SECTION 7.03. Waiver of Defaults.

      The Majority  Certificateholders may, on behalf of all Certificateholders,
waive,  in writing,  any events  permitting  removal of the Servicer as servicer
pursuant  to  this   Article   VII,   provided,   however,   that  the  Majority
Certificateholders  may not waive a default in making a required distribution on
a  Certificate  without the written  consent of the Holder of such  Certificate.
Upon any waiver of a past  default,  such  default  shall cease to exist and any
Servicer Event of  Termination  arising  therefrom  shall be deemed to have been
remedied for every purpose of this Agreement. No such waiver shall extend to any
subsequent or other default or impair any right consequent thereto except to the
extent  expressly  so waived.  Notice of any such  waiver  shall be given by the
Trustee to the Rating Agencies.

      SECTION 7.04. Notification to Certificateholders.

      (a) Upon any  termination  or  appointment  of a successor to the Servicer
pursuant to this  Article  VII or Section  6.04,  the Trustee  shall give prompt
written notice thereof to the  Certificateholders  at their respective addresses
appearing in the Certificate Register and each Rating Agency.

      (b) No  later  than  60 days  after  the  occurrence  of any  event  which
constitutes or which,  with notice or lapse of time or both,  would constitute a
Servicer  Event of  Termination or within five Business Days after a Responsible
Officer of the Trustee  becomes aware of the  occurrence  of such an event,  the
Trustee  shall  transmit  by  mail  to all  Certificateholders  notice  of  such
occurrence  unless such default or Servicer Event of Termination shall have been
waived or cured.

      SECTION 7.05. Survivability of Servicer Liabilities.

      Notwithstanding  anything herein to the contrary,  upon termination of the
Servicer hereunder,  any liabilities of the Servicer which accrued prior to such
termination shall survive such termination.

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                                  ARTICLE VIII

                                   THE TRUSTEE

      SECTION 8.01. Duties of Trustee.

      The Trustee,  prior to the  occurrence of a Servicer  Event of Termination
and  after the  curing of all  Servicer  Events  of  Termination  which may have
occurred,  undertakes  to  perform  such  duties  and only  such  duties  as are
specifically set forth in this Agreement. If a Servicer Event of Termination has
occurred  (which  has not  been  cured)  of  which  a  Responsible  Officer  has
knowledge, the Trustee shall exercise such of the rights and powers vested in it
by this Agreement,  and use the same degree of care and skill in their exercise,
as a prudent man would exercise or use under the circumstances in the conduct of
his own affairs.

      The Trustee,  upon receipt of all resolutions,  certificates,  statements,
opinions,  reports,  documents,  orders or other  instruments  furnished  to the
Trustee  which  are  specifically  required  to be  furnished  pursuant  to  any
provision  of this  Agreement,  shall  examine  them to  determine  whether they
conform on their face to the requirements of this Agreement;  provided, however,
that the Trustee will not be responsible for the accuracy or content of any such
resolutions,  certificates,  statements,  opinions,  reports, documents or other
instruments.  If any such  instrument is found not to conform on its face to the
requirements  of this Agreement in a material manner the Trustee shall take such
action as it deems  appropriate  to have the  instrument  corrected,  and if the
instrument  is not  corrected to the  Trustee's  satisfaction,  the Trustee will
provide notice thereof to the Certificateholders.

      No provision of this  Agreement  shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own misconduct; provided, however, that:

            (i) prior to the occurrence of a Servicer Event of Termination,  and
      after the curing of all such Servicer Events of Termination which may have
      occurred,  the duties and  obligations  of the Trustee shall be determined
      solely by the express provisions of this Agreement,  the Trustee shall not
      be liable except for the performance of such duties and obligations as are
      specifically  set  forth  in  this  Agreement,  no  implied  covenants  or
      obligations  shall be read into this Agreement against the Trustee and, in
      the  absence  of bad faith on the part of the  Trustee,  the  Trustee  may
      conclusively  rely, as to the truth of the statements and the  correctness
      of the  opinions  expressed  therein,  upon any  certificates  or opinions
      furnished  to the  Trustee  and  conforming  to the  requirements  of this
      Agreement;

            (ii) the Trustee  shall not be liable for an error of judgment  made
      in good faith by a Responsible Officer of the Trustee,  unless it shall be
      proved that the Trustee was negligent in ascertaining or investigating the
      facts related thereto;

            (iii) the  Trustee  shall not be liable  with  respect to any action
      taken,  suffered or omitted to be taken by it in good faith in  accordance
      with the  direction  of the  Majority  Certificateholders  relating to the
      time, method and place of conducting any proceeding for

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      any remedy available to the Trustee, or exercising or omitting to exercise
      any trust or power conferred upon the Trustee, under this Agreement; and

            (iv) the Trustee shall not be charged with  knowledge of any failure
      by the Servicer to comply with the obligations of the Servicer referred to
      in clauses  (i)  through  (iv) of  Section  7.01(a)  unless a  Responsible
      Officer of the  Trustee  at the  Corporate  Trust  Office  obtains  actual
      knowledge of such failure or the Trustee receives,  at the Corporate Trust
      Office,  written  notice of such failure from the Servicer or the Majority
      Certificateholders.

      The  Trustee  shall  not be  required  to  expend or risk its own funds or
otherwise  incur  financial  liability in the  performance  of any of its duties
hereunder,  or in the  exercise  of any of its  rights  or  powers,  if there is
reasonable  ground for  believing  that the  repayment of such funds or adequate
indemnity  against such risk or liability is not  reasonably  assured to it, and
none of the provisions  contained in this  Agreement  shall in any event require
the Trustee to perform,  or be responsible for the manner of performance of, any
of the  obligations  of the Servicer  under this  Agreement,  except during such
time,  if any, as the Trustee  shall be the successor to, and be vested with the
rights,  duties,  powers and privileges of, the Servicer in accordance  with the
terms of this Agreement.

      SECTION 8.02. Certain Matters Affecting the Trustee.

      (a) Except as otherwise provided in Section 8.01:

            (i) the Trustee may request and rely upon, and shall be protected in
      acting  or  refraining  from  acting  upon,  any   resolution,   Officers'
      Certificate,  certificate of auditors or any other certificate, statement,
      instrument,  opinion, report, notice, request,  consent, order, appraisal,
      bond or other  paper or document  reasonably  believed by it to be genuine
      and to have been signed or presented  by the proper party or parties,  and
      the manner of obtaining  consents and of evidencing the  authorization  of
      the  execution  thereof  by  Certificateholders  shall be  subject to such
      reasonable regulations as the Trustee may prescribe;

            (ii) the Trustee may consult  with counsel and any advice or Opinion
      of Counsel  shall be full and complete  authorization  and  protection  in
      respect of any action taken or suffered or omitted by it hereunder in good
      faith and in accordance with such advice or Opinion of Counsel;

            (iii) the Trustee  shall be under no  obligation  to exercise any of
      the  rights or powers  vested in it by this  Agreement,  or to  institute,
      conduct or defend any litigation  hereunder or in relation hereto,  at the
      request, order or direction of any of the Certificateholders,  pursuant to
      the provisions of this  Agreement,  unless such  Certificateholders  shall
      have offered to the Trustee  reasonable  security or indemnity against the
      costs,  expenses and liabilities which may be incurred therein or thereby;
      the right of the Trustee to perform any  discretionary  act  enumerated in
      this Agreement shall not be construed as a duty, and the Trustee shall not
      be answerable for other than its  negligence or willful  misconduct in the
      performance of any such act;

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            (iv) the Trustee shall not be liable for any action taken,  suffered
      or omitted  by it in good faith and  believed  by it to be  authorized  or
      within  the  discretion  or  rights or  powers  conferred  upon it by this
      Agreement;

            (v) prior to the occurrence of a Servicer  Event of Termination  and
      after the  curing of all  Servicer  Events of  Termination  which may have
      occurred,  the Trustee shall not be bound to make any  investigation  into
      the facts or matters  stated in any  resolution,  certificate,  statement,
      instrument,  opinion,  report, notice, request,  consent, order, approval,
      bond or other paper or documents,  unless requested in writing to do so by
      the Majority  Certificateholders;  provided,  however, that if the payment
      within  a  reasonable  time  to the  Trustee  of the  costs,  expenses  or
      liabilities   likely  to  be   incurred  by  it  in  the  making  of  such
      investigation is, in the opinion of the Trustee, not reasonably assured to
      the Trustee by the security afforded to it by the terms of this Agreement,
      the Trustee may require reasonable indemnity against such cost, expense or
      liability  as a condition to such  proceeding.  Nothing in this clause (v)
      shall  derogate  from  the  obligation  of the  Servicer  to  observe  any
      applicable  law  prohibiting   disclosure  of  information  regarding  the
      Mortgagors;

            (vi) the Trustee shall not be  accountable,  shall have no liability
      and makes no representation  as to any acts or omissions  hereunder of the
      Servicer until such time as the Trustee may be required to act as Servicer
      pursuant to Section 7.02 and  thereupon  only for the acts or omissions of
      the Trustee as successor Servicer;

            (vii) the Trustee may execute any of the trusts or powers  hereunder
      or perform any duties hereunder either directly or by or through agents or
      attorneys or a custodian; and

            (viii) the right of the  Trustee to perform  any  discretionary  act
      enumerated  in this  Agreement  shall not be construed as a duty,  and the
      Trustee shall not be answerable  for other than its  negligence or willful
      misconduct in the performance of such act.

      (b) The  Depositor  hereby  directs the  Trustee to  execute,  deliver and
perform  its  obligations  under  the  Cap  Contract  on the  Closing  Date  and
thereafter on behalf of the Holders of the Class A  Certificates,  the Mezzanine
Certificates  and the Class B  Certificates.  The  Seller,  the  Depositor,  the
Servicer and the Holders of the Class A Certificates, the Mezzanine Certificates
and  the  Class  B  Certificates  by  their  acceptance  of  such   Certificates
acknowledge  and agree that the Trustee shall  execute,  deliver and perform its
obligations  under the Cap  Contract  and shall do so solely in its  capacity as
Trustee of the Trust Fund and not in its individual capacity.

      SECTION 8.03. Trustee Not Liable for Certificates or Mortgage Loans.

      The  recitals  contained  herein and in the  Certificates  (other than the
authentication  of the  Trustee  on the  Certificates)  shall  be  taken  as the
statements of the Depositor,  and the Trustee assumes no responsibility  for the
correctness of the same. The Trustee makes no representations as to the validity
or  sufficiency  of  this  Agreement  or of the  Certificates  (other  than  the
signature  and  authentication  of the  Trustee on the  Certificates)  or of any
Mortgage Loan or related document.  The Trustee shall not be accountable for the
use or application  by the Servicer,  or for the use or application of any funds
paid to the  Servicer  in  respect  of the  Mortgage  Loans or  deposited  in or

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withdrawn from the Collection  Account by the Servicer.  The Trustee shall at no
time have any  responsibility  or liability for or with respect to the legality,
validity  and  enforceability  of any  Mortgage  or any  Mortgage  Loan,  or the
perfection  and  priority  of any  Mortgage  or  the  maintenance  of  any  such
perfection and priority,  or for or with respect to the sufficiency of the Trust
or its ability to generate the payments to be distributed to  Certificateholders
under this Agreement,  including,  without limitation: the existence,  condition
and ownership of any Mortgaged Property; the existence and enforceability of any
hazard  insurance  thereon (other than if the Trustee shall assume the duties of
the Servicer  pursuant to Section  7.02);  the validity of the assignment of any
Mortgage Loan to the Trustee or of any intervening assignment;  the completeness
of any Mortgage Loan; the performance or enforcement of any Mortgage Loan (other
than if the Trustee shall assume the duties of the Servicer  pursuant to Section
7.02);  the  compliance  by the  Depositor,  the Seller or the Servicer with any
warranty or representation  made under this Agreement or in any related document
or the accuracy of any such  warranty or  representation  prior to the Trustee's
receipt of notice or other  discovery  of any non-  compliance  therewith or any
breach thereof;  any investment of monies by or at the direction of the Servicer
or any loss  resulting  therefrom,  it being  understood  that the Trustee shall
remain  responsible  for any Trust  property that it may hold in its  individual
capacity;  the  acts or  omissions  of any of the  Servicer  (other  than if the
Trustee shall assume the duties of the Servicer  pursuant to Section 7.02),  any
Sub-Servicer  or any  Mortgagor;  any action of the Servicer  (other than if the
Trustee shall assume the duties of the Servicer  pursuant to Section  7.02),  or
any Sub- Servicer taken in the name of the Trustee;  the failure of the Servicer
or any  Sub-Servicer to act or perform any duties required of it as agent of the
Trustee hereunder;  or any action by the Trustee taken at the instruction of the
Servicer  (other than if the  Trustee  shall  assume the duties of the  Servicer
pursuant to Section  7.02);  provided,  however,  that the  foregoing  shall not
relieve  the  Trustee  of its  obligation  to  perform  its  duties  under  this
Agreement,  including,  without  limitation,  the  Trustee's  duty to review the
Mortgage   Files   pursuant  to  Section   2.01.   The  Trustee  shall  have  no
responsibility for filing any financing or continuation  statement in any public
office at any time or to  otherwise  perfect or maintain the  perfection  of any
security interest or lien granted to it hereunder (unless the Trustee shall have
become the successor Servicer).

      SECTION 8.04. Trustee May Own Certificates.

      The Trustee in its  individual or any other  capacity may become the owner
or pledgee of Certificates  with the same rights as it would have if it were not
Trustee and may transact any banking and trust business with the Originator, the
Servicer, the Depositor or their Affiliates.

      SECTION 8.05. Trustee Fee and Expenses.

      (a) The  Trustee  shall  withdraw  from the  Distribution  Account on each
Distribution Date and pay to itself the Trustee Fee and any Trustee Reimbursable
Expenses.  The  Trustee,  and any  director,  officer,  employee or agent of the
Trustee,  shall be  indemnified  by REMIC 1 and held harmless  against any loss,
liability or  "unanticipated  out-of-pocket"  expense  incurred or paid to third
parties  (which  expenses  shall not  include  salaries  paid to  employees,  or
allocable overhead, of the Trustee) incurred by the Trustee arising out of or in
connection with the acceptance or  administration  of its obligations and duties
under this  Agreement,  other than any loss,  liability or expense (i) resulting
from the Servicer's  actions or omissions in connection  with this Agreement and
the Mortgage Loans for which the Trustee is indemnified  under Section  8.05(b),
(ii) that constitutes

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a specific  liability  of the Trustee  under this  Agreement  or (iii) any loss,
liability  or expense  incurred by reason of willful  misfeasance,  bad faith or
negligence  of the  Trustee in the  performance  of its duties  hereunder  or by
reason  of the  Trustee's  reckless  disregard  of its  obligations  and  duties
hereunder.  Any  amounts  payable  to the  Trustee,  or any  director,  officer,
employee or agent of the Trustee, in respect of the indemnification  provided by
this Section 8.05(a),  or pursuant to any other right of reimbursement  from the
Trust Fund that the Trustee, and any director, officer, employee or agent of the
Trustee,  may have  hereunder in its  capacity as such,  may be withdrawn by the
Trustee from the Distribution Account at any time.

      (b) The  Servicer  agrees  to  indemnify  the  Trustee  and any  director,
officer,  employee or agent of the Trustee from,  and hold it harmless  against,
any  loss,  liability  or  expense  resulting  from a breach  of the  Servicer's
obligations  and duties under this  Agreement.  Such indemnity shall survive the
termination or discharge of this Agreement and the resignation or removal of the
Trustee or the Servicer for actions prior to such  resignation  or removal.  Any
payment  hereunder  made by the  Servicer  to the  Trustee  shall  be  from  the
Servicer's own funds, without reimbursement from the Trust Fund therefor.

      SECTION 8.06. Eligibility Requirements for Trustee.

      The Trustee  hereunder  shall at all times be an entity duly organized and
validly  existing  under the laws of the  United  States of America or any state
thereof, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least  $50,000,000 and subject to supervision
or examination by federal or state authority.  If such entity publishes  reports
of condition at least  annually,  pursuant to law or to the  requirements of any
aforesaid  supervising  or  examining  authority,  then for the purposes of this
Section 8.06, the combined capital and surplus of such entity shall be deemed to
be its  combined  capital and surplus as set forth in its most recent  report of
condition so  published.  The  principal  office of the Trustee  (other than the
initial Trustee) shall be in a state with respect to which an Opinion of Counsel
has been delivered to such Trustee at the time such Trustee is appointed Trustee
to the effect that the Trust will not be a taxable entity under the laws of such
state.  In case at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 8.06,  the Trustee shall resign  immediately
in the manner and with the effect specified in Section 8.07.

      SECTION 8.07. Resignation or Removal of Trustee.

      The  Trustee  may at any time  resign  and be  discharged  from the trusts
hereby created by giving  written notice thereof to the Depositor,  the Servicer
and each Rating Agency. Upon receiving such notice of resignation, the Depositor
shall promptly appoint a successor Trustee by written instrument,  in duplicate,
one copy of which instrument shall be delivered to the resigning Trustee and one
copy to the  successor  Trustee.  If no  successor  Trustee  shall  have been so
appointed and have accepted  appointment within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

      If at any time the Trustee shall cease to be eligible in  accordance  with
the  provisions of Section 8.06 and shall fail to resign after  written  request
therefor by the Depositor, or if at any

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time the Trustee shall be legally unable to act, or shall be adjudged a bankrupt
or  insolvent,  or a  receiver  of the  Trustee  or of  its  property  shall  be
appointed,  or any public officer shall take charge or control of the Trustee or
of its property or affairs for the purpose of  rehabilitation,  conservation  or
liquidation,  then the Depositor or the Servicer may remove the Trustee.  If the
Depositor  or the  Servicer  removes  the  Trustee  under the  authority  of the
immediately preceding sentence, the Depositor shall promptly appoint a successor
Trustee by written instrument,  in duplicate, one copy of which instrument shall
be delivered to the Trustee so removed and one copy to the successor trustee.

      The  Majority  Certificateholders  may at any time  remove the  Trustee by
written instrument or instruments  delivered to the Servicer,  the Depositor and
the Trustee;  the  Depositor  shall  thereupon use its best efforts to appoint a
successor trustee in accordance with this Section.

      Any  resignation or removal of the Trustee and  appointment of a successor
Trustee  pursuant to any of the provisions of this Section 8.07 shall not become
effective until  acceptance of appointment by the successor  Trustee as provided
in Section 8.08.

      SECTION 8.08. Successor Trustee.

      Any successor Trustee appointed as provided in Section 8.07 shall execute,
acknowledge  and deliver to the Depositor,  the Servicer and to its  predecessor
Trustee an instrument  accepting such appointment  hereunder,  and thereupon the
resignation or removal of the predecessor  Trustee shall become  effective,  and
such  successor  Trustee,  without any further act,  deed or  conveyance,  shall
become fully vested with all the rights,  powers,  duties and obligations of its
predecessor  hereunder,  with like effect as if originally named as Trustee. The
Depositor,  the Servicer and the  predecessor  Trustee shall execute and deliver
such  instruments  and do such other  things as may  reasonably  be required for
fully and certainly  vesting and  confirming  in the successor  Trustee all such
rights, powers, duties and obligations.

      No successor Trustee shall accept  appointment as provided in this Section
8.08  unless at the time of such  acceptance  such  successor  Trustee  shall be
eligible  under the  provisions  of  Section  8.06 and the  appointment  of such
successor Trustee shall not result in a downgrading of the Regular  Certificates
by either Rating Agency, as evidenced by a letter from each Rating Agency.

      Upon acceptance of appointment by a successor  Trustee as provided in this
Section 8.08,  the successor  Trustee shall mail notice of the  appointment of a
successor Trustee hereunder to all Holders of Certificates at their addresses as
shown in the Certificate Register and to each Rating Agency.

      SECTION 8.09. Merger or Consolidation of Trustee.

      Any entity into which the Trustee may be merged or converted or with which
it may be consolidated,  or any entity resulting from any merger,  conversion or
consolidation to which the Trustee shall be a party, or any entity succeeding to
the business of the Trustee,  shall be the  successor of the Trustee  hereunder,
provided such entity shall be eligible  under the provisions of Section 8.06

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and 8.08, without the execution or filing of any paper or any further act on the
part  of  any  of  the  parties   hereto,   anything   herein  to  the  contrary
notwithstanding.

      SECTION 8.10. Appointment of Co-Trustee or Separate Trustee.

      Notwithstanding  any other provisions of this Agreement,  at any time, for
the purpose of meeting any legal  requirements of any  jurisdiction in which any
part of the Trust or any  Mortgaged  Property  may at the time be  located,  the
Servicer and the Trustee  acting  jointly shall have the power and shall execute
and  deliver all  instruments  to appoint  one or more  Persons  approved by the
Trustee to act as co-  trustee or  co-trustees,  jointly  with the  Trustee,  or
separate trustee or separate  trustees,  of all or any part of the Trust, and to
vest in such  Person or  Persons,  in such  capacity  and for the benefit of the
Certificateholders,  such title to the Trust, or any part thereof,  and, subject
to the other provisions of this Section 8.10, such powers, duties,  obligations,
rights and trusts as the  Servicer  and the Trustee may  consider  necessary  or
desirable.  Any such  co-trustee  or  separate  trustee  shall be subject to the
written approval of the Servicer.  If the Servicer shall not have joined in such
appointment  within 15 days after the receipt by it of a request so to do, or in
the case a Servicer Event of Termination  shall have occurred and be continuing,
the Trustee alone shall have the power to make such  appointment.  No co-trustee
or separate trustee hereunder shall be required to meet the terms of eligibility
as a successor  trustee under Section 8.06, and no notice to  Certificateholders
of the appointment of any co-trustee or separate trustee shall be required under
Section 8.08. The Servicer  shall be responsible  for the fees of any co-trustee
or separate trustee appointed hereunder.

      Every separate  trustee and co-trustee  shall, to the extent  permitted by
law, be appointed and act subject to the following provisions and conditions:

            (i) all rights,  powers, duties and obligations conferred or imposed
      upon the Trustee  shall be  conferred  or imposed  upon and  exercised  or
      performed by the Trustee and such separate  trustee or co-trustee  jointly
      (it being  understood  that such  separate  trustee or  co-trustee  is not
      authorized  to act  separately  without the Trustee  joining in such act),
      except to the extent that under any law of any  jurisdiction  in which any
      particular act or acts are to be performed  (whether as Trustee  hereunder
      or  as  successor  to  the  Servicer  hereunder),  the  Trustee  shall  be
      incompetent  or  unqualified  to perform such act or acts,  in which event
      such rights,  powers,  duties and  obligations  (including  the holding of
      title to the Trust or any portion thereof in any such jurisdiction)  shall
      be exercised and performed  singly by such separate trustee or co-trustee,
      but solely at the direction of the Trustee;

            (ii) no trustee  hereunder shall be held personally liable by reason
      of any act or omission of any other trustee hereunder; and

            (iii) the Servicer and the Trustee,  acting jointly, may at any time
      accept the  resignation  of or remove any separate  trustee or  co-trustee
      except that following the  occurrence of a Servicer Event of  Termination,
      the Trustee acting alone may accept the resignation or remove any separate
      trustee or co-trustee.

      Any notice,  request or other writing given to the Trustee shall be deemed
to have been given to each of the then  separate  trustees and  co-trustees,  as
effectively as if given to each of them.

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Every  instrument  appointing any separate  trustee or co-trustee shall refer to
this  Agreement and the conditions of this Article VIII.  Each separate  trustee
and  co-trustee,  upon its acceptance of the trusts  conferred,  shall be vested
with the estates or property specified in its instrument of appointment,  either
jointly with the Trustee or separately,  as may be provided therein,  subject to
all the provisions of this Agreement,  specifically including every provision of
this  Agreement  relating to the  conduct of,  affecting  the  liability  of, or
affording protection to, the Trustee.  Every such instrument shall be filed with
the Trustee and a copy thereof given to the Depositor and the Servicer.

      Any  separate  trustee or  co-trustee  may,  at any time,  constitute  the
Trustee,  its agent or attorney-in-fact,  with full power and authority,  to the
extent not  prohibited  by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name.  If any separate  trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties,  rights,  remedies  and trusts shall vest in and be exercised by the
Trustee,  to the extent  permitted by law,  without the  appointment of a new or
successor Trustee.

      SECTION 8.11. Limitation of Liability.

      The  Certificates  are  executed  by the  Trustee,  not in its  individual
capacity  but solely as Trustee of the Trust,  in the exercise of the powers and
authority  conferred upon and vested in it by the Trust  Agreement.  Each of the
undertakings  and agreements made on the part of the Trustee in the Certificates
is made and intended not as a personal  undertaking  or agreement by the Trustee
but is made and intended for the purpose of binding only the Trust.

      SECTION  8.12.   Trustee  May  Enforce   Claims   Without   Possession  of
Certificates.

      (a)  All  rights  of  action  and  claims  under  this  Agreement  or  the
Certificates  may  be  prosecuted  and  enforced  by  the  Trustee  without  the
possession  of  any  of  the  Certificates  or  the  production  thereof  in any
proceeding relating thereto, and such proceeding instituted by the Trustee shall
be brought in its own name or in its  capacity as Trustee for the benefit of all
Holders of such Certificates,  subject to the provisions of this Agreement.  Any
recovery of judgment  shall,  after  provision for the payment of the reasonable
compensation, expenses, disbursement and advances of the Trustee, its agents and
counsel,  be for the  ratable  benefit of the  Certificateholders  in respect of
which such judgment has been recovered.

      (b) The Trustee shall afford the Seller,  the Depositor,  the Servicer and
each  Certificateholder  upon  reasonable  notice during normal  business hours,
access to all  records  maintained  by the  Trustee  in  respect  of its  duties
hereunder and access to officers of the Trustee  responsible for performing such
duties. Upon request, the Trustee shall furnish the Depositor,  the Servicer and
any requesting  Certificateholder with its most recent financial statements. The
Trustee shall cooperate fully with the Seller,  the Servicer,  the Depositor and
such Certificateholder and shall make available to the Seller, the Servicer, the
Depositor  and  such  Certificateholder  for  review  and  copying  such  books,
documents or records as may be requested  with respect to the  Trustee's  duties
hereunder.  The Seller, the Depositor,  the Servicer and the  Certificateholders
shall not have any  responsibility or liability for any action or failure to act
by the Trustee and are not obligated to supervise the performance of the Trustee
under this Agreement or otherwise.

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      SECTION 8.13. Suits for Enforcement.

      In case a Servicer  Event of  Termination or other default by the Servicer
or the Depositor hereunder shall occur and be continuing,  the Trustee shall, at
the written  direction of the  Majority  Certificateholders,  or otherwise  may,
proceed   to   protect   and   enforce   its   rights  and  the  rights  of  the
Certificateholders  under this  Agreement  by a suit,  action or  proceeding  in
equity or at law or  otherwise,  whether  for the  specific  performance  of any
covenant or agreement  contained in this Agreement or in aid of the execution of
any power granted in this  Agreement or for the  enforcement of any other legal,
equitable or other remedy, as the Trustee, being advised by counsel, and subject
to the  foregoing,  shall deem most  effectual to protect and enforce any of the
rights of the Trustee and the Certificateholders.

      SECTION 8.14. Waiver of Bond Requirement.

      The  Trustee  shall be  relieved  of,  and each  Certificateholder  hereby
waives,  any  requirement of any  jurisdiction  in which the Trust,  or any part
thereof,  may be located  that the Trustee  post a bond or other surety with any
court, agency or body whatsoever.

      SECTION 8.15. Waiver of Inventory, Accounting and Appraisal Requirement.

      The  Trustee  shall be  relieved  of,  and each  Certificateholder  hereby
waives,  any  requirement of any  jurisdiction  in which the Trust,  or any part
thereof,  may be located  that the Trustee  file any  inventory,  accounting  or
appraisal  of the  Trust  with any  court,  agency or body at any time or in any
manner whatsoever.

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                                   ARTICLE IX

                              REMIC ADMINISTRATION

      SECTION 9.01. REMIC Administration.

      (a) REMIC  elections as set forth in the  Preliminary  Statement  shall be
made by the Trustee on Form 1066 or other appropriate federal tax or information
return for the taxable year ending on the last day of the calendar year in which
the Certificates are issued. The regular interests and residual interest in each
REMIC shall be as designated in the Preliminary Statement.

      (b) The Closing Date is hereby  designated  as the  "Startup  Day" of each
REMIC within the meaning of section 860G(a)(9) of the Code.

      (c) The Servicer shall pay any and all tax-related expenses (not including
taxes) of each  REMIC,  including  but not limited to any  professional  fees or
expenses related to audits or any  administrative  or judicial  proceedings with
respect to each REMIC that  involve the  Internal  Revenue  Service or state tax
authorities,  but only to the extent  that (i) such  expenses  are  ordinary  or
routine  expenses,  including  expenses of a routine  audit but not  expenses of
litigation  (except as described in (ii));  or (ii) such expenses or liabilities
(including  taxes and penalties) are  attributable  to the negligence or willful
misconduct  of the Servicer in  fulfilling  its duties  hereunder.  The Servicer
shall be entitled to  reimbursement of expenses to the extent provided in clause
(i) above from the Collection Account.

      (d) The Trustee shall prepare,  sign and file, all of the REMICs'  federal
and  state tax and  information  returns  (including  Form  8811) as the  direct
representative  of each REMIC created  hereunder.  The expenses of preparing and
filing such returns shall be borne by the Trustee.

      (e) The Holder of the Class R Certificate  at any time holding the largest
Percentage  Interest thereof shall be the "tax matters person" as defined in the
REMIC  Provisions (the "Tax Matters Person") with respect to REMIC 1 and REMIC 2
and shall act as the Tax  Matters  Person for REMIC 1 and REMIC 2. The Holder of
the Class R-X  Certificate at any time holding the largest  Percentage  Interest
thereof shall be the Tax Matters  Person with respect to REMIC 3 and REMIC 4 and
shall act as the Tax  Matters  Person for REMIC 3 and REMIC 4. The  Trustee,  as
agent for the Tax  Matters  Person,  shall  perform  on behalf of each REMIC all
reporting and other tax compliance  duties that are the  responsibility  of such
REMIC under the Code, the REMIC Provisions or other  compliance  guidance issued
by the Internal  Revenue Service or any state or local taxing  authority.  Among
its other duties, if required by the Code, the REMIC  Provisions,  or other such
guidance, the Trustee, as agent for the Tax Matters Person, shall provide (i) to
the Treasury or other  governmental  authority such  information as is necessary
for  the  application  of  any  tax  relating  to  the  transfer  of a  Residual
Certificate  to  any  disqualified  person  or  organization  and  (ii)  to  the
Certificateholders  such  information  or reports as are required by the Code or
REMIC  Provisions.  The  Trustee,  as agent for the Tax  Matters  Person,  shall
represent each REMIC in any administrative or judicial  proceedings  relating to
an  examination  or audit  by any  governmental  taxing  authority,  request  an
administrative  adjustment  as to any  taxable  year of any  REMIC,  enter  into
settlement  agreements with any government taxing agency,  extend any statute of
limitations relating to any item

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of any REMIC and  otherwise  act on behalf of any REMIC in  relation  to any tax
matter involving the Trust.

      (f) The Trustee,  the Servicer and the Holders of Certificates  shall take
any action or cause the REMIC to take any action necessary to create or maintain
the status of each REMIC as a REMIC under the REMIC  Provisions and shall assist
each other as necessary to create or maintain such status.  Neither the Trustee,
the Servicer nor the Holder of any Residual  Certificate  shall take any action,
cause any REMIC created hereunder to take any action or fail to take (or fail to
cause to be taken) any action that, under the REMIC Provisions,  if taken or not
taken,  as the case may be,  could (i)  endanger  the  status of such REMIC as a
REMIC or (ii) result in the  imposition of a tax upon such REMIC  (including but
not limited to the tax on  prohibited  transactions  as defined in Code  Section
860F(a)(2) and the tax on prohibited  contributions set forth on Section 860G(d)
of the Code) (either such event,  an "Adverse  REMIC Event")  unless the Trustee
and the  Servicer  have  received  an Opinion of Counsel  (at the expense of the
party  seeking to take such action) to the effect that the  contemplated  action
will not  endanger  such  status or result in the  imposition  of such a tax. In
addition, prior to taking any action with respect to any REMIC created hereunder
or the assets  therein,  or causing such REMIC to take any action,  which is not
expressly permitted under the terms of this Agreement,  any Holder of a Residual
Certificate will consult with the Trustee and the Servicer,  or their respective
designees,  in  writing,  with  respect to whether  such  action  could cause an
Adverse REMIC Event to occur with respect to any REMIC, and no such Person shall
take any such  action or cause any REMIC to take any such action as to which the
Trustee or the Servicer  has advised it in writing  that an Adverse  REMIC Event
could occur.

      (g) Each Holder of a Residual  Certificate  shall pay when due any and all
taxes imposed on each REMIC created  hereunder by federal or state  governmental
authorities.  To the  extent  that such  Trust  taxes are not paid by a Residual
Certificateholder,  the  Trustee  shall  pay any  remaining  REMIC  taxes out of
current or future amounts otherwise  distributable to the Holder of the Residual
Certificate  in the REMICs or, if no such  amounts are  available,  out of other
amounts held in the  Distribution  Account,  and shall reduce amounts  otherwise
payable to Holders of regular  interests  in the related  REMIC.  Subject to the
foregoing,  in the event  that a REMIC  incurs a state or local  tax,  including
franchise taxes, as a result of a determination  that such REMIC is domiciled in
the State of California  for state tax purposes by virtue of the location of the
Servicer,  the Servicer  agrees to pay on behalf of such REMIC when due, any and
all state and local taxes  imposed as a result of such a  determination,  in the
event  that the Holder of the  related  Residual  Certificate  fails to pay such
taxes, if any, when imposed.

      (h) The Trustee,  as agent for the Tax Matters Person,  shall, for federal
income tax  purposes,  maintain  books and  records  with  respect to each REMIC
created hereunder on a calendar year and on an accrual basis.

      (i) No  additional  contributions  of  assets  shall be made to any  REMIC
created  hereunder,  except as expressly provided in this Agreement with respect
to eligible substitute mortgage loans.

      (j) Neither the Trustee nor the Servicer shall enter into any  arrangement
by which any REMIC created  hereunder  will receive a fee or other  compensation
for services.

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      (k) [Reserved].

      (l) The Trustee will apply for an Employee  Identification Number from the
Internal Revenue Service via a Form SS-4 or other acceptable  method for all tax
entities and shall complete Form 8811.

      SECTION 9.02. Prohibited Transactions and Activities.

      Neither the  Depositor,  the Servicer nor the Trustee shall sell,  dispose
of,  or  substitute  for any of the  Mortgage  Loans,  except  in a  disposition
pursuant to (i) the  foreclosure of a Mortgage Loan,  (ii) the bankruptcy of the
Trust Fund,  (iii) the  termination of any REMIC created  hereunder  pursuant to
Article X of this Agreement,  (iv) a substitution pursuant to Article II of this
Agreement or (v) a repurchase of Mortgage  Loans  pursuant to Article II of this
Agreement,  nor  acquire  any assets  for any REMIC,  nor sell or dispose of any
investments in the Distribution  Account for gain, nor accept any  contributions
to either  REMIC after the Closing  Date,  unless it has  received an Opinion of
Counsel  (at the  expense  of the  party  causing  such  sale,  disposition,  or
substitution) that such disposition,  acquisition,  substitution,  or acceptance
will not (a) affect  adversely  the status of any REMIC  created  hereunder as a
REMIC or of the interests  therein other than the Residual  Certificates  as the
regular interests therein,  (b) affect the distribution of interest or principal
on the Certificates,  (c) result in the encumbrance of the assets transferred or
assigned to the Trust Fund (except pursuant to the provisions of this Agreement)
or (d) cause any REMIC  created  hereunder to be subject to a tax on  prohibited
transactions or prohibited contributions pursuant to the REMIC Provisions.

      SECTION  9.03.  Indemnification  with Respect to Certain Taxes and Loss of
                      REMIC Status.

      (a) In the event that any REMIC  fails to  qualify  as a REMIC,  loses its
status as a REMIC,  or  incurs  federal,  state or local  taxes as a result of a
prohibited transaction or prohibited contribution under the REMIC Provisions due
to the negligent  performance by the Servicer of its duties and  obligations set
forth  herein,  the  Servicer  shall  indemnify  the  Trustee and the Trust Fund
against any and all losses, claims, damages,  liabilities or expenses ("Losses")
resulting from such negligence;  provided,  however, that the Servicer shall not
be liable for any such  Losses  attributable  to the action or  inaction  of the
Trustee, the Depositor or the Holder of the Residual Certificate, as applicable,
nor for any such  Losses  resulting  from  misinformation  provided  by any such
Person on which the Servicer has relied.  The  foregoing  shall not be deemed to
limit or  restrict  the  rights  and  remedies  of the  Holder of such  Residual
Certificate now or hereafter existing at law or in equity.  Notwithstanding  the
foregoing,  however,  in no event shall the Servicer  have any liability (1) for
any action or omission that is taken in accordance  with and in compliance  with
the  express  terms of, or which is  expressly  permitted  by the terms of, this
Agreement,  (2) for any Losses other than arising out of a negligent performance
by the Servicer of its duties and obligations set forth herein,  and (3) for any
special or consequential damages to  Certificateholders  (in addition to payment
of principal and interest on the Certificates).

      (b) In the event that any REMIC  fails to  qualify  as a REMIC,  loses its
status as a REMIC,  or  incurs  federal,  state or local  taxes as a result of a
prohibited transaction or prohibited

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contribution under the REMIC Provisions due to the negligent  performance by the
Trustee  of its duties and  obligations  set forth  herein,  the  Trustee  shall
indemnify  the Servicer and the Trust Fund against any and all Losses  resulting
from such negligence;  provided,  however,  that the Trustee shall not be liable
for any such Losses attributable to the action or inaction of the Servicer,  the
Depositor or the Holder of the Residual Certificate,  as applicable, nor for any
such Losses resulting from  misinformation  provided by any such Person on which
the Trustee has relied.  The foregoing  shall not be deemed to limit or restrict
the  rights  and  remedies  of the Holder of such  Residual  Certificate  now or
hereafter existing at law or in equity.  Notwithstanding the foregoing, however,
in no event shall the Trustee have any  liability (1) for any action or omission
that is taken in accordance with and in compliance with the express terms of, or
which is expressly permitted by the terms of, this Agreement, (2) for any Losses
other than arising out of a negligent  performance  by the Trustee of its duties
and  obligations  set forth  herein,  and (3) for any  special or  consequential
damages to Certificateholders  (in addition to payment of principal and interest
on the Certificates).

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                                    ARTICLE X

                                   TERMINATION

      SECTION 10.01. Termination.

      (a) The respective  obligations and responsibilities of the Servicer,  the
Depositor  and the Trustee  created  hereby  (other than the  obligation  of the
Trustee  to  make  certain  payments  to  Certificateholders   after  the  final
Distribution  Date,  the  obligation of the Servicer to send certain  notices as
hereinafter set forth and the indemnification obligations of the Servicer to the
Trustee  hereunder) shall terminate upon notice to the Trustee upon the earliest
of (i) the Distribution Date on which the Certificate  Principal Balances of the
Regular  Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust,  (iii) the optional purchase
by the Terminator  (as defined  below) of the Mortgage Loans as described  below
and (iv) the Distribution Date in July 2034.  Notwithstanding the foregoing,  in
no event shall the trust created  hereby  continue  beyond the  expiration of 21
years  from the  death of the last  survivor  of the  descendants  of  Joseph P.
Kennedy,  the late  ambassador of the United States to the Court of St. James's,
living on the date hereof.

      The majority Holder of the Class C Certificates (unless such Holder is the
Seller,  Greenwich Capital Markets,  Inc. or an Affiliate of either of them), or
if such Holder (x) fails to exercise such option or (y) is the Seller, Greenwich
Capital Markets,  Inc. or an Affiliate of either of them, the Servicer (with the
written consent of the Depositor or an Affiliate thereof, such consent not to be
unreasonably  withheld) (either such Holder or the Servicer, as applicable,  the
"Terminator"), may, at its option, terminate this Agreement on any date on which
the  aggregate of the Stated  Principal  Balances of the  Mortgage  Loans (after
giving  effect to  scheduled  payments of  principal  due during the related Due
Period,  to the extent  received or advanced,  and  unscheduled  collections  of
principal  received during the related  Prepayment Period) on such date is equal
to or less than 10% of the aggregate  Stated  Principal  Balance of the Original
Mortgage  Loans on the  Cut-off  Date,  by  purchasing,  on the next  succeeding
Distribution Date, all of the outstanding Mortgage Loans and REO Properties at a
price equal to the greater of (i) the Stated  Principal  Balance of the Mortgage
Loans  and the  appraised  value of any REO  Properties,  such  appraisal  to be
conducted by an Independent appraiser mutually agreed upon by the Terminator and
the Trustee in their reasonable discretion and (ii) the fair market value of the
Mortgage Loans and the REO  Properties (as determined by the Terminator  and, to
the extent that the Floating Rate Certificates will not receive all amounts owed
to it as a result of the termination,  the Trustee,  as of the close of business
on the third  Business Day next preceding the date upon which notice of any such
termination is furnished to the related  Certificateholders  pursuant to Section
10.01(c)), in each case plus accrued and unpaid interest thereon at the weighted
average of the Mortgage  Rates  through the end of the Due Period  preceding the
final  Distribution Date plus unreimbursed  Servicing  Advances,  Advances,  any
unpaid  Servicing  Fees  allocable to such Mortgage Loans and REO Properties and
any accrued and unpaid Net WAC Rate Carryover Amount (the "Termination  Price");
provided, however, such option may only be exercised if the Termination Price is
sufficient  to pay all  interest  accrued  on, as well as amounts  necessary  to
retire the note balance of, each class of notes issued pursuant to an indenture,
secured, at least in part, by the Class C Certificates, the Class P Certificates
and/or the Residual Certificates.

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      In connection with any such purchase pursuant to the preceding  paragraph,
the  Terminator  shall deposit in the  Distribution  Account all amounts then on
deposit  in the  Collection  Account,  which  deposit  shall be  deemed  to have
occurred immediately preceding such purchase.

      Any such purchase shall be accomplished  by deposit into the  Distribution
Account  on  the  Determination  Date  before  such  Distribution  Date  of  the
Termination Price.

      (b) Notice of any  termination,  specifying the  Distribution  Date (which
shall be a date that  would  otherwise  be a  Distribution  Date) upon which the
Certificateholders  may surrender their  Certificates to the Trustee for payment
of the final  distribution  and  cancellation,  shall be given  promptly  by the
Trustee upon the Trustee  receiving notice of such date from the Terminator,  by
letter to the  Certificateholders  mailed not earlier  than the 15th day and not
later  than the 25th day of the month  next  preceding  the month of such  final
distribution  specifying (1) the Distribution Date upon which final distribution
of the  Certificates  will be  made  upon  presentation  and  surrender  of such
Certificates at the office or agency of the Trustee therein designated,  (2) the
amount of any such final  distribution  and (3) that the Record  Date  otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the Certificates at the office or agency
of the Trustee therein specified.

      (c) Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to the Holders of the  Certificates on the  Distribution
Date for such final distribution,  in proportion to the Percentage  Interests of
their  respective  Class and to the  extent  that funds are  available  for such
purpose,  an amount  equal to the  amount  required  to be  distributed  to such
Holders in accordance with the provisions of Section 4.01 for such  Distribution
Date. By acceptance  of the Residual  Certificates,  the Holders of the Residual
Certificates agree, in connection with any termination hereunder,  to assign and
transfer  any amounts in excess of the par value of the Mortgage  Loans,  and to
the extent received in respect of such  termination,  to pay any such amounts to
the Holders of the Class C Certificates.

      (d) In the event that all  Certificateholders  shall not  surrender  their
Certificates  for  final  payment  and  cancellation  on or  before  such  final
Distribution  Date,  the Trustee shall  promptly  following  such date cause all
funds in the  Distribution  Account not  distributed  in final  distribution  to
Certificateholders  to be  withdrawn  therefrom  and  credited to the  remaining
Certificateholders  by  depositing  such  funds in a  separate  account  for the
benefit  of such  Certificateholders,  and the  Servicer  (if the  Servicer  has
exercised its right to purchase the Mortgage Loans) or the Trustee (in any other
case) shall give a second written notice to the remaining Certificateholders, to
surrender their Certificates for cancellation and receive the final distribution
with  respect  thereto.  If within nine months  after the second  notice all the
Certificates  shall not have been  surrendered  for  cancellation,  the Residual
Certificateholders  shall be entitled to all  unclaimed  funds and other  assets
which remain subject  hereto,  and the Trustee upon transfer of such funds shall
be discharged of any responsibility  for such funds, and the  Certificateholders
shall look to the Residual Certificateholders for payment.

      SECTION 10.02. Additional Termination Requirements.

      (a) In the event that the  Terminator  exercises  its  purchase  option as
provided in Section 10.01, each REMIC shall be terminated in accordance with the
following additional

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requirements,  unless the Trustee shall have been  furnished  with an Opinion of
Counsel  to the  effect  that  the  failure  of the  Trust  to  comply  with the
requirements  of this Section will not (i) result in the  imposition of taxes on
"prohibited transactions" of the Trust as defined in Section 860F of the Code or
(ii) cause any REMIC constituting part of the Trust Fund to fail to qualify as a
REMIC at any time that any Certificates are outstanding:

            (i)  Within  90 days  prior  to the  final  Distribution  Date,  the
      Terminator  shall  adopt and the  Trustee  shall  sign a plan of  complete
      liquidation of each REMIC created  hereunder meeting the requirements of a
      "Qualified Liquidation" under Section 860F of the Code and any regulations
      thereunder; and

            (ii) At or after  the time of  adoption  of such a plan of  complete
      liquidation  and at or prior to the final  Distribution  Date, the Trustee
      shall sell all of the assets of the Trust Fund to the  Terminator for cash
      pursuant to the terms of the plan of complete liquidation.

      (b) By their acceptance of Certificates,  the Holders thereof hereby agree
to appoint  the  Trustee as their  attorney in fact to: (i) adopt such a plan of
complete liquidation (and the  Certificateholders  hereby appoint the Trustee as
their attorney in fact to sign such plan) as  appropriate  and (ii) to take such
other action in connection  therewith as may be reasonably required to carry out
such plan of complete liquidation all in accordance with the terms hereof.

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                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

      SECTION 11.01. Amendment.

      This  Agreement  may be amended  from time to time by the  Depositor,  the
Servicer and the Trustee; and without the consent of the  Certificateholders (i)
to cure any ambiguity, (ii) to correct or supplement any provisions herein which
may be defective or  inconsistent  with any other  provisions  herein,  (iii) to
amend the  provisions  of Section  3.22(b) or (iv) to make any other  provisions
with respect to matters or questions  arising under this  Agreement  which shall
not be inconsistent  with the provisions of this  Agreement;  provided that such
action shall not, as evidenced by either (a) an Opinion of Counsel  delivered to
the Trustee or (b) written notice to the Depositor, the Servicer and the Trustee
from each Rating  Agency that such  action will not result in the  reduction  or
withdrawal of the rating of any outstanding  Class of Certificates  with respect
to which it is a Rating  Agency,  adversely  affect in any material  respect the
interests of any  Certificateholder.  No amendment  shall be deemed to adversely
affect in any material respect the interests of any  Certificateholder who shall
have consented thereto,  and no Opinion of Counsel or Rating Agency confirmation
shall be  required  to  address  the  effect of any such  amendment  on any such
consenting Certificateholder.  Notwithstanding the foregoing, neither an Opinion
of Counsel nor written  notice to the  Depositor,  the  Servicer and the Trustee
from the Rating Agencies will be required in connection with an amendment to the
provisions of Section 3.22(b).

      In  addition,  this  Agreement  may be  amended  from  time to time by the
Depositor,  the  Servicer  and the  Trustee  with the  consent  of the  Majority
Certificateholders  for the purpose of adding any  provisions  to or changing in
any  manner  or  eliminating  any of the  provisions  of  this  Agreement  or of
modifying  in any manner the rights of the  Holders of  Certificates;  provided,
however,  that no such  amendment  or waiver  shall (x) reduce in any manner the
amount of, or delay the timing of, payments on the Certificates or distributions
which are  required  to be made on any  Certificate  without  the consent of the
Holder of such  Certificate,  (y) adversely  affect in any material  respect the
interests of the Holders of any Class of  Certificates  (as  evidenced by either
(i) an Opinion of Counsel delivered to the Trustee or (ii) written notice to the
Depositor, the Servicer and the Trustee from each Rating Agency that such action
will not result in the reduction or withdrawal of the rating of any  outstanding
Class of  Certificates  with respect to which it is a Rating Agency) in a manner
other than as described in clause (x) above,  without the consent of the Holders
of Certificates of such Class  evidencing at least a 66% Percentage  Interest in
such Class, or (z) reduce the percentage of Voting Rights required by clause (y)
above without the consent of the Holders of all  Certificates of such Class then
outstanding.  Upon approval of an amendment,  a copy of such amendment  shall be
sent to the Rating Agencies.

      Notwithstanding  any  provision  of this  Agreement to the  contrary,  the
Trustee  shall not consent to any  amendment to this  Agreement  unless it shall
have first received an Opinion of Counsel,  delivered by (and at the expense of)
the Person  seeking such  Amendment,  to the effect that such amendment will not
result in the  imposition of a tax on any REMIC created  hereunder  constituting
part of the  Trust  Fund  pursuant  to the REMIC  Provisions  or cause any REMIC
created

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hereunder  constituting  part of the Trust to fail to  qualify as a REMIC at any
time that any Certificates are outstanding, and that the amendment is being made
in accordance with the terms hereof.

      Promptly  after the  execution  of any such  amendment  the Trustee  shall
furnish,  at the  expense of the Person that  requested  the  amendment  if such
Person  is the  Servicer  (but  in no  event  at the  expense  of the  Trustee),
otherwise at the expense of the Trust,  a copy of such amendment and the Opinion
of Counsel  referred to in the immediately  preceding  paragraph to the Servicer
and each Rating Agency.

      It shall not be necessary for the consent of Certificateholders under this
Section 11.01 to approve the particular form of any proposed amendment;  instead
it shall be sufficient if such consent shall approve the substance thereof.  The
manner of obtaining  such consents and of evidencing  the  authorization  of the
execution  thereof by  Certificateholders  shall be  subject to such  reasonable
regulations as the Trustee may prescribe.

      The Trustee may, but shall not be obligated  to, enter into any  amendment
pursuant to this Section  11.01 that affects its rights,  duties and  immunities
under this Agreement or otherwise.

      SECTION 11.02. Recordation of Agreement; Counterparts.

      To the extent  permitted by applicable  law, this  Agreement is subject to
recordation in all appropriate  public offices for real property  records in all
the  counties  or other  comparable  jurisdictions  in  which  any or all of the
properties  subject to the Mortgages are situated,  and in any other appropriate
public  recording  office or elsewhere,  such  recordation to be effected by the
Servicer   at  the   expense  of  the  Trust,   but  only  upon   direction   of
Certificateholders  accompanied by an Opinion of Counsel to the effect that such
recordation   materially   and   beneficially   affects  the  interests  of  the
Certificateholders.

      For the purpose of  facilitating  the  recordation  of this  Agreement  as
herein  provided  and  for  other  purposes,  this  Agreement  may  be  executed
simultaneously in any number of counterparts,  each of which  counterparts shall
be deemed to be an original, and such counterparts shall together constitute but
one and the same instrument.

      SECTION 11.03. Limitation on Rights of Certificateholders.

      The death or incapacity of any Certificateholder  shall not (i) operate to
terminate  this  Agreement or the Trust,  (ii) entitle such  Certificateholder's
legal  representatives  or heirs to claim an accounting or to take any action or
proceeding  in any court for a  partition  or winding up of the Trust,  or (iii)
otherwise  affect the rights,  obligations and liabilities of the parties hereto
or any of them.

      Except as expressly provided for herein, no  Certificateholder  shall have
any  right  to  vote  or in any  manner  otherwise  control  the  operation  and
management of the Trust,  or the  obligations of the parties  hereto,  nor shall
anything  herein  set forth or  contained  in the terms of the  Certificates  be
construed  so as to  constitute  the  Certificateholders  from  time  to time as
partners or

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<PAGE>

members  of an  association;  nor  shall  any  Certificateholder  be  under  any
liability  to any third  person by reason of any action  taken by the parties to
this Agreement pursuant to any provision hereof.

      No  Certificateholder  shall have any right by virtue of any  provision of
this  Agreement to institute any suit,  action or proceeding in equity or at law
upon or under or with respect to this Agreement,  unless such Holder  previously
shall  have  given  to the  Trustee  a  written  notice  of  default  and of the
continuance  thereof, as hereinbefore  provided,  and unless also the Holders of
Certificates  entitled  to at least 25% of the  Voting  Rights  shall  have made
written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee  hereunder  and shall have  offered to the Trustee  such
reasonable  indemnity  as  it  may  require  against  the  costs,  expenses  and
liabilities to be incurred therein or thereby, and the Trustee for 15 days after
its receipt of such notice, request and offer of indemnity, shall have neglected
or refused to institute any such action,  suit or  proceeding.  It is understood
and intended,  and expressly  covenanted  by each  Certificateholder  with every
other  Certificateholder  and  the  Trustee,  that  no one or  more  Holders  of
Certificates  shall  have any  right in any  manner  whatever  by  virtue of any
provision of this  Agreement to affect,  disturb or prejudice  the rights of the
Holders  of any  other of such  Certificates,  or to  obtain  or seek to  obtain
priority  over or  preference  to any  other  such  Holder,  which  priority  or
preference is not otherwise  provided for herein,  or to enforce any right under
this Agreement,  except in the manner herein provided and for the equal, ratable
and common benefit of all Certificateholders. For the protection and enforcement
of the provisions of this Section 11.03 each and every Certificateholder and the
Trustee  shall be entitled  to such  relief as can be given  either at law or in
equity.

      SECTION 11.04. Governing Law; Jurisdiction.

      This Agreement shall be construed in accordance with the laws of the State
of New York, and the obligations,  rights and remedies of the parties  hereunder
shall be  determined  in  accordance  with such laws.  With respect to any claim
arising out of this Agreement,  each party irrevocably  submits to the exclusive
jurisdiction  of the  courts  of the  State of New York  and the  United  States
District  Court located in the Borough of Manhattan in The City of New York, and
each party irrevocably waives any objection which it may have at any time to the
laying of venue of any suit,  action or  proceeding  arising  out of or relating
hereto  brought in any such courts,  irrevocably  waives any claim that any such
suit,  action or  proceeding  brought in any such court has been  brought in any
inconvenient  forum and  further  irrevocably  waives the right to object,  with
respect to such claim,  suit,  action or  proceeding  brought in any such court,
that such  court  does not have  jurisdiction  over such  party,  provided  that
service of process has been made by any lawful means.

      SECTION 11.05. Notices.

      All  directions,  demands  and notices  hereunder  shall be in writing and
shall be deemed to have been duly given if personally  delivered at or mailed by
first class mail, postage prepaid,  by facsimile or by express delivery service,
to (a) in the case of the  Servicer,  Centex Home Equity  Company,  LLC, 2828 N.
Harwood Street,  11th Floor,  Dallas,  Texas 75201,  Attention:  Chief Financial
Officer,  with a copy to the General Counsel,  or such other address or telecopy
number as may hereafter be furnished to the Depositor and the Trustee in writing
by the Servicer,  (b) in the case of the Trustee,  the  Corporate  Trust Office,
Attention: CHEC 2004-1 or such other address or telecopy number as may hereafter
be furnished to the  Depositor  and the Servicer in writing by the

                                      142
<PAGE>

Trustee, and (c) in the case of the Depositor, Financial Asset Securities Corp.,
600 Steamboat Road,  Greenwich,  Connecticut  06830,  Attention:  Legal, or such
other  address or telecopy  number as may be  furnished  to the Servicer and the
Trustee in writing by the  Depositor.  Any notice  required or  permitted  to be
mailed  to a  Certificateholder  shall be given by  first  class  mail,  postage
prepaid,  at the  address of such Holder as shown in the  Certificate  Register.
Notice of any Servicer  Event of  Termination  shall be given by telecopy and by
certified  mail.  Any  notice  so  mailed  within  the time  prescribed  in this
Agreement  shall be  conclusively  presumed to have duly been given when mailed,
whether or not the Certificateholder  receives such notice. A copy of any notice
required  to be  telecopied  hereunder  shall also be mailed to the  appropriate
party in the manner set forth above.

      SECTION 11.06. Severability of Provisions.

      If any one or more of the  covenants,  agreements,  provisions or terms of
this  Agreement  shall for any  reason  whatsoever  be held  invalid,  then such
covenants,  agreements,  provisions or terms shall be deemed  severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or  enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

      SECTION 11.07. Article and Section References.

      All  article  and  section  references  used  in  this  Agreement,  unless
otherwise provided, are to articles and sections in this Agreement.

      SECTION 11.08. Notice to the Rating Agencies.

      (a) The Trustee  shall be  obligated  to use its best  reasonable  efforts
promptly to provide  notice to the Rating  Agencies  with respect to each of the
following of which a Responsible Officer of the Trustee has actual knowledge:

            (i) any material change or amendment to this Agreement;

            (ii) the occurrence of any Servicer  Event of  Termination  that has
      not been cured or waived;

            (iii) the resignation or termination of the Servicer or the Trustee;

            (iv) the final payment to Holders of the Certificates of any Class;

            (v) any change in the location of the Distribution Account; and

            (vi) if the  Trustee is acting as  successor  Servicer  pursuant  to
      Section 7.02 hereof,  any event that would result in the  inability of the
      Trustee to make Advances.

      (b) In addition,  the Trustee shall promptly make available on its website
initially located at  www.jpmorgan.com/sfr  to each Rating Agency copies of each
Statement to

                                      143
<PAGE>

Certificateholders  described in Sections 4.03 and 3.19 (to the extent  received
by it from the Servicer)  hereof and the Servicer shall promptly furnish to each
Rating Agency copies of the following:

            (i) each annual statement as to compliance described in Section 3.20
      hereof;

            (ii) each annual  independent public  accountants'  servicing report
      described in Section 3.21 hereof; and

            (iii) each notice delivered pursuant to Section 7.01(a) hereof which
      relates to the fact that the Servicer has not made an Advance.

      Any such  notice  pursuant to this  Section  11.08 shall be in writing and
shall be deemed to have been duly  given if  personally  delivered  or mailed by
first class mail, postage prepaid, or by express delivery service to (i) Moody's
Investors  Service,  Inc., 99 Church  Street,  New York, New York 10007 and (ii)
Standard & Poor's,  a division  of The  McGraw-Hill  Companies,  Inc.,  55 Water
Street,  41st  Floor,  New  York,  NY  10041,  Attention:  Residential  Mortgage
Surveillance Group.

      SECTION 11.09. Further Assurances.

      Notwithstanding any other provision of this Agreement, neither the Regular
Certificateholders  nor the Trustee shall have any  obligation to consent to any
amendment  or  modification  of this  Agreement  unless they have been  provided
reasonable   security  or  indemnity   against  their  out-of-  pocket  expenses
(including reasonable attorneys' fees) to be incurred in connection therewith.

      SECTION 11.10. Benefits of Agreement.

      Nothing in this  Agreement or in the  Certificates,  expressed or implied,
shall give to any  Person,  other than the  Certificateholders  and the  parties
hereto and their  successors  hereunder,  any benefit or any legal or  equitable
right, remedy or claim under this Agreement.

      SECTION 11.11 Acts of Certificateholders.

      (a) Any request, demand, authorization, direction, notice, consent, waiver
or  other  action  provided  by this  Agreement  to be  given  or  taken  by the
Certificateholders  may be embodied in and evidenced by one or more  instruments
of substantially similar tenor signed by such Certificateholders in person or by
an agent duly appointed in writing,  and such action shall become effective when
such  instrument or  instruments  are delivered to the Trustee and the Servicer.
Such instrument or instruments  (and the action  embodied  therein and evidenced
thereby) are herein sometimes referred to as the "act" of the Certificateholders
signing  such  instrument  or  instruments.  Proof  of  execution  of  any  such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this  Agreement and conclusive in favor of the Trustee and the Trust,
if made in the manner provided in this Section 11.11.

      (b)  The  fact  and  date  of the  execution  by any  Person  of any  such
instrument  or  writing  may be proved  by the  affidavit  of a witness  of such
execution or by the certificate of a notary

                                      144
<PAGE>

public or other  officer  authorized  by law to take  acknowledgments  of deeds,
certifying that the individual  signing such instrument or writing  acknowledged
to him the execution thereof. Whenever such execution is by a signer acting in a
capacity  other  than  his or  her  individual  capacity,  such  certificate  or
affidavit shall also constitute sufficient proof of his authority.

      (c) Any request, demand, authorization, direction, notice, consent, waiver
or other action by any Certificateholder  shall bind every future Holder of such
Certificate and the Holder of every Certificate  issued upon the registration of
transfer  thereof or in  exchange  therefor  or in lieu  thereof,  in respect of
anything  done,  omitted or  suffered  to be done by the Trustee or the Trust in
reliance  thereon,  whether  or not  notation  of such  action is made upon such
Certificate.

                                      145
<PAGE>

      IN WITNESS  WHEREOF,  the  Depositor,  the  Servicer  and the Trustee have
caused their names to be signed hereto by their  respective  officers  thereunto
duly authorized, all as of the day and year first above written.

                                    FINANCIAL ASSET SECURITIES CORP.,
                                    as Depositor

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

                                    CENTEX HOME EQUITY COMPANY, LLC,
                                    as Servicer

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

                                    JPMORGAN CHASE BANK, as Trustee

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

<PAGE>

STATE OF                            )
                                    ) ss.:
COUNTY OF                           )

      On the ____ day of July 2004,  before me, a notary  public in and for said
State, personally appeared _______________ known to me to be a ______________ of
Financial  Asset  Securities  Corp.,  a Delaware  corporation  that executed the
within  instrument,  and also known to me to be the person  who  executed  it on
behalf  of  said  corporation,  and  acknowledged  to me that  such  corporation
executed the within instrument.

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

                                                  -----------------------------
                                                           Notary Public

<PAGE>

STATE OF                            )
                                    ) ss.:
COUNTY OF                           )

      On the ____ day of July 2004,  before me, a notary  public in and for said
State,  personally appeared  _______________ known to me to be a _______________
of Centex Home Equity  Company,  LLC, a  corporation  that  executed  the within
instrument,  and also known to me to be the person who  executed it on behalf of
said  corporation,  and  acknowledged to me that such  corporation  executed the
within instrument.

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

                                                  -----------------------------
                                                           Notary Public

<PAGE>

STATE OF                            )
                                    ) ss.:
COUNTY OF                           )

      On the ___ day of July  2004  before  me, a notary  public in and for said
State,   personally   appeared   __________________,   known  to  me  to  be  an
_____________________  of JPMorgan  Chase Bank, a New York  banking  corporation
that executed the within  instrument,  and also known to me to be the person who
executed  it on behalf of said  association,  and  acknowledged  to me that such
corporation executed the within instrument.

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

                                                  -----------------------------
                                                           Notary Public

<PAGE>
                                   EXHIBIT A-1

                         FORM OF CLASS A-1 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 80,000,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 80,000,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :     162765 AA 9
Class                                           :     A-1
Assumed Maturity Date                           :     July 25, 2034

                                      A-1-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class A-1

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable-rate and
         fixed-rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
A-1 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class A-1
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class A-1 Certificate (obtained by
dividing the Denomination of this Class A-1 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class A-1 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class A-1 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class A-1
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class A-1 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-1-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                                  CHEC LOAN TRUST 2004-1

                                  By: JPMORGAN CHASE BANK, not in its individual
                                      capacity, but solely as Trustee

                                      By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-1-3

<PAGE>

                       [Reverse of Class A-1 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                      A-1-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-1-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                      A-1-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                      A-1-7

<PAGE>

                                   EXHIBIT A-2

                         FORM OF CLASS A-2 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 140,000,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 140,000,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :     162765 AB 7
Class                                           :     A-2
Assumed Maturity Date                           :     July 25, 2034

                                      A-2-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class A-2

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable-rate and
         fixed-rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
A-2 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class A-2
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class A-2 Certificate (obtained by
dividing the Denomination of this Class A-2 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class A-2 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class A-2 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class A-2
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class A-2 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-2-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                                     CHEC LOAN TRUST 2004-1

                                By:  JPMORGAN CHASE BANK, not in its individual
                                     capacity, but solely as Trustee

                                     By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-2-3

<PAGE>

                       [Reverse of Class A-2 Certificate]

                             CHEC LOAN TRUST 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                      A-2-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                                       A-2-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                      A-2-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                      A-2-7

<PAGE>

                                   EXHIBIT A-3

                         FORM OF CLASS A-3 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 32,157,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 32,157,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :     162765 AC 5
Class                                           :     A-3
Assumed Maturity Date                           :     July 25, 2034

                                      A-3-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class A-3

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable-rate and
         fixed-rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
A-3 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class A-3
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class A-3 Certificate (obtained by
dividing the Denomination of this Class A-3 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class A-3 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class A-3 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class A-3
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class A-3 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-3-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-3-3

<PAGE>

                       [Reverse of Class A-3 Certificate]

                             CHEC LOAN TRUST 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                      A-3-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-3-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                      A-3-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                      A-3-7

<PAGE>

                                   EXHIBIT A-4

                         FORM OF CLASS M-1 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES TO THE EXTENT
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 9,746,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 9,746,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :      Variable
CUSIP                                           :     162765 AD 3
Class                                           :     M-1
Assumed Maturity Date                           :     July 25, 2034

                                      A-4-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class M-1

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-1 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-1
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-1 Certificate (obtained by
dividing the Denomination of this Class M-1 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class M-1 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class M-1 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class M-1
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-1 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-4-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-4-3

<PAGE>

                       [Reverse of Class M-1 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                      A-4-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-4-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                      A-4-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                      A-4-7

<PAGE>

                                   EXHIBIT A-5

                         FORM OF CLASS M-2 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE CLASS M-1
CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 8,818,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 8,818,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :
Class                                           :     M-2
Assumed Maturity Date                           :     July 25, 2034

                                      A-5-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class M-2

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-2 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-2
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-2 Certificate (obtained by
dividing the Denomination of this Class M-2 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class M-2 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class M-2 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class M-2
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-2 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-5-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-5-3

<PAGE>

                       [Reverse of Class M-2 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations and evidencing the
same aggregate Percentage Interest in the Trust will be issued to the designated
transferee or transferees.

                                      A-5-4

<PAGE>

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                                       A-5-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                      A-5-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                      A-5-7

<PAGE>

                                   EXHIBIT A-6

                         FORM OF CLASS M-3 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES AND THE CLASS M-2 CERTIFICATES TO THE EXTENT DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                :    1
Cut-off Date                                   :    July 1, 2004
First Distribution Date                        :    August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")           :    $ 5,569,000.00
Original Class Certificate
Principal Balance of this Class                :    $ 5,569,000.00
Percentage Interest                            :    100.00%
Pass-Through Rate                              :    Variable
CUSIP                                          :    162765 AF 8
Class                                          :    M-3
Assumed Maturity Date                          :    July 25, 2034

                                      A-6-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class M-3

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-3 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-3
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-3 Certificate (obtained by
dividing the Denomination of this Class M-3 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class M-3 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class M-3 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class M-3
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-3 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-6-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-6-3

<PAGE>

                       [Reverse of Class M-3 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                      A-6-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-6-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                      A-6-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                      A-6-7

<PAGE>

                                   EXHIBIT A-7

                         FORM OF CLASS M-4 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES AND THE CLASS M-3 CERTIFICATES TO THE
EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 4,796,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 4,796,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :      162765 AG 6
Class                                           :     M-4
Assumed Maturity Date                           :     July 25, 2034

                                      A-7-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class M-4

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-4 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-4
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-4 Certificate (obtained by
dividing the Denomination of this Class M-4 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class M-4 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class M-4 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class M-4
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-4 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-7-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-7-3

<PAGE>

                       [Reverse of Class M-4 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                      A-7-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-7-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                      A-7-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                      A-7-7

<PAGE>

                                   EXHIBIT A-8

                         FORM OF CLASS M-5 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES AND THE
CLASS M-4 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 4,486.000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 4,486,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :     162765 AH 4
Class                                           :     M-5
Assumed Maturity Date                           :     July 25, 2034

                                      A-8-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class M-5

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-5 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-5
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-5 Certificate (obtained by
dividing the Denomination of this Class M-5 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class M-5 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class M-5 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class M-5
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-5 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-8-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-8-3

<PAGE>

                       [Reverse of Class M-5 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                      A-8-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-8-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                      A-8-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                      A-8-7

<PAGE>

                                   EXHIBIT A-9

                         FORM OF CLASS M-6 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES AND THE CLASS M-5 CERTIFICATES TO THE EXTENT DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 4,486,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 4,486,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :     162765 AJ 0
Class                                           :     M-6
Assumed Maturity Date                           :     July 25, 2034

                                      A-9-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class M-6

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-6 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-6
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-6 Certificate (obtained by
dividing the Denomination of this Class M-6 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class M-6 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class M-6 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class M-6
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-6 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-9-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                      A-9-3

<PAGE>

                       [Reverse of Class M-6 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                      A-9-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                      A-9-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                      A-9-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                      A-9-7

<PAGE>

                                  EXHIBIT A-10

                         FORM OF CLASS M-7 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES AND THE CLASS M-6 CERTIFICATES TO
THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 3,713,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 3,713,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :      162765 AK 7
Class                                           :     M-7
Assumed Maturity Date                           :     July 25, 2034

                                     A-10-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class M-7

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-7 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-7
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-7 Certificate (obtained by
dividing the Denomination of this Class M-7 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class M-7 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class M-7 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class M-7
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-7 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     A-10-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-10-3

<PAGE>

                       [Reverse of Class M-7 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-10-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-10-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-10-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-10-7

<PAGE>

                                  EXHIBIT A-11

                         FORM OF CLASS M-8 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES, THE CLASS M-6 CERTIFICATES AND THE
CLASS M-7 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 3,249,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 3,249,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :     162765 AL 5
Class                                           :     M-8
Assumed Maturity Date                           :     July 25, 2034

                                     A-11-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class M-8

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-8 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-8
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-8 Certificate (obtained by
dividing the Denomination of this Class M-8 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class M-8 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class M-8 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class M-8
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-8 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     A-11-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-11-3

<PAGE>

                       [Reverse of Class M-8 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-11-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-11-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-11-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-11-7

<PAGE>

                                  EXHIBIT A-12

                         FORM OF CLASS M-9 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS M-1
CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES, THE CLASS M-6 CERTIFICATES, THE
CLASS M-7 CERTIFICATES AND THE CLASS M-8 CERTIFICATES TO THE EXTENT DESCRIBED IN
THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 3,094,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 3,094,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :      162765 AM 3
Class                                           :     M-9
Assumed Maturity Date                           :     July 25, 2034

                                     A-12-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class M-9

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
M-9 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class M-9
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class M-9 Certificate (obtained by
dividing the Denomination of this Class M-9 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class M-9 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class M-9 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         Reference is hereby made to the further provisions of this Class M-9
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class M-9 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     A-12-2

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-12-3

<PAGE>

                       [Reverse of Class M-9 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-12-4

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-12-5

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-12-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-12-7

<PAGE>

                                  EXHIBIT A-13

                         FORM OF CLASS B-1 CERTIFICATES

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE MEZZANINE
CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

                                     A-13-1

<PAGE>

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 3,094,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 3,094,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :      162765 AN 1
Class                                           :     B-1
Assumed Maturity Date                           :     July 25, 2034

                                     A-13-2

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class B-1

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
B-1 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class B-1
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class B-1 Certificate (obtained by
dividing the Denomination of this Class B-1 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class B-1 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class B-1 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Servicer or the Depositor; or there shall be delivered to the
Trustee and the Depositor a transferor certificate by the transferor and an
investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

         Reference is hereby made to the further provisions of this Class B-1
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

                                     A-13-3

<PAGE>

         This Class B-1 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     A-13-4

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                                 CHEC LOAN TRUST 2004-1

                                 By:  JPMORGAN CHASE BANK, not in its individual
                                      capacity, but solely as Trustee

                                 By_______________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By____________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-13-5

<PAGE>

                       [Reverse of Class B-1 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-13-6

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10%of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-13-7

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-13-8

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-13-9

<PAGE>

                                  EXHIBIT A-14

                         Form of Class B-2 Certificates

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE MEZZANINE
CERTIFICATES AND THE CLASS B-1 CERTIFICATES TO THE EXTENT DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

                                     A-14-1

<PAGE>

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $ 3,094,000.00
Original Class Certificate
Principal Balance of this Class                 :     $ 3,094,000.00
Percentage Interest                             :     100.00%
Pass-Through Rate                               :     Variable
CUSIP                                           :     162765 AP 6
Class                                           :     B-2
Assumed Maturity Date                           :     July 25, 2034

                                     A-14-2

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class B-2

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class
B-2 Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class B-2
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced by this Class B-2 Certificate (obtained by
dividing the Denomination of this Class B-2 Certificate by the Original Class
Certificate Principal Balance) in certain monthly distributions with respect to
a Trust consisting primarily of the Mortgage Loans deposited by Financial Asset
Securities Corp. (the "Depositor"). The Trust was created pursuant to a Pooling
and Servicing Agreement dated as of July 1, 2004 (the "Agreement") among the
Depositor, Centex Home Equity Company, LLC, as servicer (the "Servicer"), and
JPMorgan Chase Bank, a New York banking corporation, as trustee (the "Trustee").
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Class B-2 Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Class B-2 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Servicer or the Depositor; or there shall be delivered to the
Trustee and the Depositor a transferor certificate by the transferor and an
investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

         Reference is hereby made to the further provisions of this Class B-2
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

                                     A-14-3

<PAGE>

         This Class B-2 Certificate shall not be entitled to any benefit under
the Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     A-14-4

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-14-5

<PAGE>

                       [Reverse of Class B-2 Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-14-6

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10%of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-14-7

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-14-8

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-14-9

<PAGE>

                                  EXHIBIT A-15

                          FORM OF CLASS C CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE MEZZANINE
CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT
REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance                 $
of this Certificate ("Denomination")            :
Original Class Certificate
Principal Balance of this Class                 :     $
Percentage Interest                             :     100%
Pass-Through Rate                               :     Variable
Class                                           :     C

                                     A-15-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                     Class C

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class C
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class C
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Greenwich Capital Financial Products, Inc., is the
registered owner of the Percentage Interest evidenced by this Class C
Certificate (obtained by dividing the Denomination of this Class C Certificate
by the Original Class Certificate Principal Balance) in certain distributions
with respect to a Trust consisting primarily of the Mortgage Loans deposited by
Financial Asset Securities Corp. (the "Depositor"). The Trust was created
pursuant to a Pooling and Servicing Agreement dated as of July 1, 2004 (the
"Agreement") among the Depositor, Centex Home Equity Company, LLC, as servicer
(the "Servicer"), and JPMorgan Chase Bank, a New York banking corporation, as
trustee (the "Trustee"). To the extent not defined herein, the capitalized terms
used herein have the meanings assigned in the Agreement. This Class C
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Class C
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Servicer or the Depositor; or there shall be delivered to the
Trustee and the Depositor a transferor certificate by the transferor and an
investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

         Reference is hereby made to the further provisions of this Class C
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

                                     A-15-2

<PAGE>

         This Class C Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     A-15-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-15-4

<PAGE>

                        [Reverse of Class C Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-15-5

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-15-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-15-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-15-8

<PAGE>

                                  EXHIBIT A-16

                           FORM OF CLASS P CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Initial Certificate Principal Balance
of this Certificate ("Denomination")            :     $100.00
Original Class Certificate
Principal Balance of this Class                 :     $100.00
Percentage Interest                             :     100.00%
Class                                           :     P

                                     A-16-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                     Class P

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting of first lien and second lien adjustable rate and
         fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Principal Balance of this Class P
Certificate at any time may be less than the Initial Certificate Principal
Balance set forth on the face hereof, as described herein. This Class P
Certificate does not evidence an obligation of, or an interest in, and is not
guaranteed by the Depositor, the Servicer, or the Trustee referred to below or
any of their respective affiliates.

         This certifies that Greenwich Capital Financial Products, Inc. is the
registered owner of the Percentage Interest evidenced by this Class P
Certificate (obtained by dividing the Denomination of this Class P Certificate
by the Original Class Certificate Principal Balance) in certain distributions
with respect to a Trust consisting primarily of the Mortgage Loans deposited by
Financial Asset Securities Corp. (the "Depositor"). The Trust was created
pursuant to a Pooling and Servicing Agreement dated as of July 1, 2004 (the
"Agreement") among the Depositor, Centex Home Equity Company, LLC, as servicer
(the "Servicer"), and JPMorgan Chase Bank, a New York banking corporation, as
trustee (the "Trustee"). To the extent not defined herein, the capitalized terms
used herein have the meanings assigned in the Agreement. This Class P
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Class P
Certificate by virtue of the acceptance hereof assents and by which such Holder
is bound.

         This Certificate does not have a pass-through rate and will be entitled
to distributions only to the extent set forth in the Agreement.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Servicer or the Depositor; or there shall be delivered to the
Trustee and the Depositor a transferor certificate by the transferor and an
investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

                                     A-16-2

<PAGE>

         Reference is hereby made to the further provisions of this Class P
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

         This Class P Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     A-16-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-16-4

<PAGE>

                        [Reverse of Class P Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-16-5

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-16-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-16-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-16-8

<PAGE>

                                  EXHIBIT A-17

                          FORM OF CLASS R CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THIS CLASS R CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES NOT BEAR INTEREST AND
WILL NOT RECEIVE ANY DISTRIBUTIONS EXCEPT AS PROVIDED HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Percentage Interest                             :     100.00%
Class                                           :     R

                                     A-17-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                     Class R

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting primarily of a pool of first lien and second lien
         adjustable rate and fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         This Certificate does not evidence an obligation of, or an interest in,
and is not guaranteed by the Depositor, the Servicer or the Trustee referred to
below or any of their respective affiliates.

         This certifies that Greenwich Capital Markets, Inc. is the registered
owner of the Percentage Interest evidenced by this Certificate specified above
in the interest represented by all Certificates of the Class to which this
Certificate belongs in a Trust consisting primarily of the Mortgage Loans
deposited by Financial Asset Securities Corp. (the "Depositor"). The Trust was
created pursuant to a Pooling and Servicing Agreement dated as of July 1, 2004
(the "Agreement") among the Depositor, Centex Home Equity Company, LLC, as
servicer (the "Servicer"), and JPMorgan Chase Bank, a New York banking
corporation, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         This Certificate does not have a principal balance or pass-through rate
and will be entitled to distributions only to the extent set forth in the
Agreement. In addition, any distribution of the proceeds of any remaining assets
of the Trust will be made only upon presentment and surrender of this
Certificate at the Corporate Trust Office or the office or agency maintained by
the Trustee in Minneapolis, Minnesota.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Servicer or the Depositor; or there shall be delivered to the
Trustee and the Depositor a transferor certificate by the transferor and an
investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

                                     A-17-2

<PAGE>

         Each Holder of this Certificate will be deemed to have agreed to be
bound by the restrictions of the Agreement, including but not limited to the
restrictions that (i) each person holding or acquiring any Ownership Interest in
this Certificate must be a Permitted Transferee, (ii) no Ownership Interest in
this Certificate may be transferred without delivery to the Trustee of (a) a
transfer affidavit of the proposed transferee and (b) a transfer certificate of
the transferor, each of such documents to be in the form described in the
Agreement, (iii) each person holding or acquiring any Ownership Interest in this
Certificate must agree to require a transfer affidavit and to deliver a transfer
certificate to the Trustee as required pursuant to the Agreement, (iv) each
person holding or acquiring an Ownership Interest in this Certificate must agree
not to transfer an Ownership Interest in this Certificate if it has actual
knowledge that the proposed transferee is not a Permitted Transferee and (v) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported transferee. Pursuant to the Agreement, The Trustee will
provide the Internal Revenue Service and any pertinent persons with the
information needed to compute the tax imposed under the applicable tax laws on
transfers of residual interests to disqualified organizations, if any person
other than a Permitted Transferee acquires an Ownership Interest on a Class R
Certificate in violation of the restrictions mentioned above.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                     A-17-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-17-4

<PAGE>

                        [Reverse of Class R Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-17-5

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10%of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-17-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-17-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-17-8

<PAGE>

                                  EXHIBIT A-18

                         FORM OF Class R-X CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THIS Class R-X CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES NOT BEAR INTEREST AND
WILL NOT RECEIVE ANY DISTRIBUTIONS EXCEPT AS PROVIDED HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Percentage Interest                             :     100.00%
Class                                           :     R

                                     A-18-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                                    Class R-X

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting primarily of a pool of first lien and second lien
         adjustable rate and fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         This Certificate does not evidence an obligation of, or an interest in,
and is not guaranteed by the Depositor, the Servicer or the Trustee referred to
below or any of their respective affiliates.

         This certifies that Greenwich Capital Markets, Inc. is the registered
owner of the Percentage Interest evidenced by this Certificate specified above
in the interest represented by all Certificates of the Class to which this
Certificate belongs in a Trust consisting primarily of the Mortgage Loans
deposited by Financial Asset Securities Corp. (the "Depositor"). The Trust was
created pursuant to a Pooling and Servicing Agreement dated as of July 1, 2004
(the "Agreement") among the Depositor, Centex Home Equity Company, LLC, as
servicer (the "Servicer"), and JPMorgan Chase Bank, a New York banking
corporation, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         This Certificate does not have a principal balance or pass-through rate
and will be entitled to distributions only to the extent set forth in the
Agreement. In addition, any distribution of the proceeds of any remaining assets
of the Trust will be made only upon presentment and surrender of this
Certificate at the Corporate Trust Office or the office or agency maintained by
the Trustee in Minneapolis, Minnesota.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Servicer or the Depositor; or there shall be delivered to the
Trustee and the Depositor a transferor certificate by the transferor and an
investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

                                     A-18-2

<PAGE>

         Each Holder of this Certificate will be deemed to have agreed to be
bound by the restrictions of the Agreement, including but not limited to the
restrictions that (i) each person holding or acquiring any Ownership Interest in
this Certificate must be a Permitted Transferee, (ii) no Ownership Interest in
this Certificate may be transferred without delivery to the Trustee of (a) a
transfer affidavit of the proposed transferee and (b) a transfer certificate of
the transferor, each of such documents to be in the form described in the
Agreement, (iii) each person holding or acquiring any Ownership Interest in this
Certificate must agree to require a transfer affidavit and to deliver a transfer
certificate to the Trustee as required pursuant to the Agreement, (iv) each
person holding or acquiring an Ownership Interest in this Certificate must agree
not to transfer an Ownership Interest in this Certificate if it has actual
knowledge that the proposed transferee is not a Permitted Transferee and (v) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported transferee. Pursuant to the Agreement, The Trustee will
provide the Internal Revenue Service and any pertinent persons with the
information needed to compute the tax imposed under the applicable tax laws on
transfers of residual interests to disqualified organizations, if any person
other than a Permitted Transferee acquires an Ownership Interest on a Class R-X
Certificate in violation of the restrictions mentioned above.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                     A-18-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-18-4

<PAGE>

                       [Reverse of Class R-X Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-18-5

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10%of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-18-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-18-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-18-8

<PAGE>

                                  EXHIBIT A-19

               FORM OF CLASS R-[1][2][3][4] INTEREST CERTIFICATES

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THIS CLASS R-[1][2][3][4] INTEREST CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES
NOT BEAR INTEREST AND WILL NOT RECEIVE ANY DISTRIBUTIONS EXCEPT AS PROVIDED
HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
ARRANGEMENT (EACH A "PLAN") SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED ("ERISA"), SHALL BE MADE EXCEPT IN COMPLIANCE WITH THE
PROCEDURES DESCRIBED HEREIN.

Certificate No.                                 :     1
Cut-off Date                                    :     July 1, 2004
First Distribution Date                         :     August 25, 2004
Percentage Interest                             :     100.00%
Class                                           :     R-[1][2][3][4] Interest

                                     A-19-1

<PAGE>

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1
                          Class R-[1][2][3][4] Interest

         evidencing the Percentage Interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to the
         Trust consisting primarily of a pool of first lien and second lien
         adjustable rate and fixed rate mortgage loans (the "Mortgage Loans")

                 FINANCIAL ASSET SECURITIES CORP., as Depositor

         This Certificate does not evidence an obligation of, or an interest in,
and is not guaranteed by the Depositor, the Servicer or the Trustee referred to
below or any of their respective affiliates.

         This certifies that Greenwich Capital Markets, Inc. is the registered
owner of the Percentage Interest evidenced by this Certificate specified above
in the interest represented by all Certificates of the Class to which this
Certificate belongs in a Trust consisting primarily of the Mortgage Loans
deposited by Financial Asset Securities Corp. (the "Depositor"). The Trust was
created pursuant to a Pooling and Servicing Agreement dated as of July 1, 2004
(the "Agreement") among the Depositor, Centex Home Equity Company, LLC, as
servicer (the "Servicer"), and JPMorgan Chase Bank, a New York banking
corporation, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         This Certificate does not have a principal balance or pass-through rate
and will be entitled to distributions only to the extent set forth in the
Agreement. In addition, any distribution of the proceeds of any remaining assets
of the Trust will be made only upon presentment and surrender of this
Certificate at the Corporate Trust Office or the office or agency maintained by
the Trustee in Minneapolis, Minnesota.

         No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the Act
and any applicable state securities laws or is exempt from the registration
requirements under said Act and such laws. In the event that a transfer is to be
made in reliance upon an exemption from the Act and such laws, in order to
assure compliance with the Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Trustee and the Depositor in writing the facts surrounding
the transfer. In the event that such a transfer is not to be made pursuant to
Rule 144A of the Act, there shall be delivered to the Trustee and the Depositor
of an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act, which Opinion of Counsel shall not be obtained at the expense of
the Trustee, the Servicer or the Depositor; or there shall be delivered to the
Trustee and the Depositor a transferor certificate by the transferor and an
investment letter shall be executed by the transferee. The Holder hereof
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Trustee and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

         No transfer of this Certificate to a Plan subject to ERISA or Section
4975 of the Code, any Person acting, directly or indirectly, on behalf of any
such Plan or any person using Plan Assets to acquire this Certificate shall be
made except in accordance with Section 5.02(d) of the Agreement.

                                     A-19-2

<PAGE>

         Each Holder of this Certificate will be deemed to have agreed to be
bound by the restrictions of the Agreement, including but not limited to the
restrictions that (i) each person holding or acquiring any Ownership Interest in
this Certificate must be a Permitted Transferee, (ii) no Ownership Interest in
this Certificate may be transferred without delivery to the Trustee of (a) a
transfer affidavit of the proposed transferee and (b) a transfer certificate of
the transferor, each of such documents to be in the form described in the
Agreement, (iii) each person holding or acquiring any Ownership Interest in this
Certificate must agree to require a transfer affidavit and to deliver a transfer
certificate to the Trustee as required pursuant to the Agreement, (iv) each
person holding or acquiring an Ownership Interest in this Certificate must agree
not to transfer an Ownership Interest in this Certificate if it has actual
knowledge that the proposed transferee is not a Permitted Transferee and (v) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported transferee. Pursuant to the Agreement, The Trustee will
provide the Internal Revenue Service and any pertinent persons with the
information needed to compute the tax imposed under the applicable tax laws on
transfers of residual interests to disqualified organizations, if any person
other than a Permitted Transferee acquires an Ownership Interest on a Class
R-[1][2][3][4] Interest Certificate in violation of the restrictions mentioned
above.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized officer of the Trustee.

                                     A-19-3

<PAGE>

         IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed.

Dated: July ___, 2004

                              CHEC LOAN TRUST 2004-1

                              By:   JPMORGAN CHASE BANK, not in its individual
                                    capacity, but solely as Trustee

                                    By_________________________________

This is one of the Certificates
referenced in the within-mentioned Agreement

By__________________________________________
         Authorized Signatory of
         JPMORGAN CHASE BANK,
         as Trustee

                                     A-19-4

<PAGE>

             [Reverse of Class R-[1][2][3][4] Interest Certificate]

                             CHEC Loan Trust 2004-1
                           Asset-Backed Certificates,
                                  Series 2004-1

         This Certificate is one of a duly authorized issue of Certificates
designated as CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1
(herein collectively called the "Certificates"), and representing a beneficial
ownership interest in the Trust created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, then the
Business Day immediately following such Distribution Date (the "Distribution
Date"), commencing on the first Distribution Date specified on the face hereof,
to the Person in whose name this Certificate is registered at the close of
business on the applicable Record Date in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement.

         Distributions on this Certificate shall be made by check or money order
mailed to the address of the person entitled thereto as it appears on the
Certificate Register or by wire transfer or otherwise, as set forth in the
Agreement. The final distribution on each Certificate will be made in like
manner, but only upon presentment and surrender of such Certificate at the
Corporate Trust Office of the Trustee specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Servicer and the Trustee and of Holders of the requisite
percentage of the Percentage Interests of each Class of Certificates affected by
such amendment, as specified in the Agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange therefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Certificate Registrar upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office of the Trustee
accompanied by a written instrument of transfer in form satisfactory to the
Trustee and the Certificate Registrar duly executed by the holder hereof or such
holder's attorney duly authorized in writing, and thereupon one or more new
Certificates

                                     A-19-5

<PAGE>

of the same Class in authorized denominations and evidencing the same aggregate
Percentage Interest in the Trust will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

         The Depositor, the Servicer and the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Trustee, the Servicer or any such agent shall be affected by any
notice to the contrary.

         On any Distribution Date following the date at which the remaining
aggregate Stated Principal Balance of the Mortgage Loans is less than 10%of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date,
the Terminator may purchase, in whole, from the Trust the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon notice to the Trustee upon the earliest of
(i) the Distribution Date on which the Certificate Principal Balances of the
Regular Certificates have been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, (iii) the Distribution Date
in [August] 2034.

         Capitalized terms used herein that are defined in the Agreement shall
have the meanings ascribed to them in the Agreement, and nothing herein shall be
deemed inconsistent with that meaning.

                                     A-19-6

<PAGE>

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _____________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust.

         I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address: ____________________________________________________
______________________________________________________________________________

Dated:_________________

                                  ________________________________________
                                   Signature by or on behalf of assignor

                                     A-19-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to ________________________________________________
_______________________________________________________________________________
for the account of ____________________________________________________________
account number  __________________________________, or, if mailed by check, to
_______________________________________________________________________________
_______________________________________________________________________________
Applicable statements should be mailed to _____________________________________
_______________________________________________________________________________.

         This information is provided by  _______________________, the assignee
named above, or _________________________________________________, as its agent.

                                     A-19-8

<PAGE>

                                    EXHIBIT B

                                    RESERVED

                                       B-1

<PAGE>

                                    EXHIBIT C

                  FORM OF ASSIGNMENT AND RECOGNITION AGREEMENT

                                       C-1

<PAGE>

                                    EXHIBIT D

                             MORTGAGE LOAN SCHEDULE

                                 Filed By Paper.

                                       D-1

<PAGE>

                                    EXHIBIT E

                        REQUEST FOR RELEASE OF DOCUMENTS

To:      JPMorgan Chase Bank
         4 New York Plaza, 6th Floor
         New York, NY 10004
         Attention: Institutional Trust Services/Global Debt

          Re:  Pooling and Servicing Agreement dated as of July 1, 2004 among
               Financial Asset Securities Corp., as Depositor, Centex Home
               Equity Company, LLC, as Servicer And JPMorgan Chase Bank, as
               Trustee

         In connection with the administration of the Mortgage Loans held by you
as Trustee pursuant to the above-captioned Pooling and Servicing Agreement, we
request the release, and hereby acknowledge receipt of the Trustee's Mortgage
File Or the Mortgage Loan described below, for the reason indicated.

MORTGAGE LOAN NUMBER:

MORTGAGOR NAME, ADDRESS & ZIP CODE:

REASON FOR REQUESTING DOCUMENTS (CHECK ONE):

_________1.       Mortgage Paid in Full

_________2.       Foreclosure

_________3.       Substitution

_________4. Other Liquidation (Repurchases, etc.)

_________5.       Nonliquidation            Reason:_____________________

Address to which Trustee should deliver the Trustee's Mortgage File:

                                       E-1

<PAGE>

                                By:
                                     -------------------------------------
                                         (authorized signer)

                                Issuer:
                                     -------------------------------------

                                Address:
                                         ---------------------------------

                                Date:
                                     -------------------------------------

TRUSTEE

JPMorgan Chase Bank

         Please acknowledge the execution of the above request by your signature
and date below:

         ____________________________                         __________________
         Signature                                            Date

         Documents returned to Trustee:

         ______________________________                       __________________
         Trustee                                              Date

                                       E-2

<PAGE>

                                   EXHIBIT F-1

                     FORM OF TRUSTEE'S INITIAL CERTIFICATION

                                                              [  DATE  ]

Financial Asset Securities Corp.             Centex Home Equity Company, LLC
600 Steamboat Road                           2828 N. Harwood Street, 11th Floor
Greenwich, Connecticut 06830                 Dallas, Texas 75201

          Re:  Pooling and Servicing Agreement, dated as of July 1, 2004, among
               Financial Asset Securities Corp., Centex Home Equity Company, LLC
               and JPMorgan Chase Bank, Asset-Backed Certificates, Series 2004-1

Ladies and Gentlemen:

         Attached is the Trustee's preliminary exception report delivered in
accordance with Section 2.02 of the referenced Pooling and Servicing Agreement
(the "Pooling and Servicing Agreement"). Capitalized terms used but not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

         As to each Mortgage Loan listed in the Mortgage Loan Schedule (other
than any Mortgage Loan paid in full or any Mortgage Loan specifically identified
in the exception report annexed hereto), (i) all documents required to be
delivered to it pursuant Section 2.01 (other than Section 2.01(vi)) of this
Agreement and if actually delivered to it, the documents required to be
delivered to it pursuant to Section 2.01(vi) of this Agreement are in its
possession, (ii) such documents have been reviewed by it and appear regular on
their face and relate to such Mortgage Loan and (iii) based on its examination
of the foregoing documents, the information set forth in the Mortgage Loan
Schedule that corresponds to items (1), (3), (10), (11), (12), (18), (24) and
(25, but only as to Gross Margin, Maximum Mortgage Rate and Periodic Rate Cap)
of the Mortgage Loan Schedule accurately reflects information set forth in the
Mortgage File.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to (i)
the validity, legality, sufficiency, recordability, enforceability or
genuineness of any of the documents contained in the Mortgage File pertaining to
the Mortgage Loans identified on the Mortgage Loan Schedule, (ii) the
collectability, insurability, effectiveness or suitability of any such Mortgage
Loan or (iii) whether any Mortgage File includes any of the documents specified
in clause (vi) of Section 2.01 of the Pooling and Servicing Agreement.

                                      F-1-1

<PAGE>

                                      JPMORGAN CHASE BANK

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

                                      F-1-2

<PAGE>

                                   EXHIBIT F-2

                      FORM OF TRUSTEE'S FINAL CERTIFICATION

                                                       ________________
                                                               [Date]

Financial Asset Securities Corp.
600 Steamboat Road
Greenwich, Connecticut 06830

          Re:  Pooling and Servicing Agreement (the "Pooling and Servicing
               Agreement"), dated as of July 1, 2004 among Financial Asset
               Securities Corp., as Depositor, Centex Home Equity Company, LLC,
               as Servicer and JPMorgan Chase Bank, as Trustee with respect to
               CHEC Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1

Ladies and Gentlemen:

         In accordance with Section 2.02 of the Pooling and Servicing Agreement,
the undersigned, as Trustee, hereby certifies that as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage loan paid in full
or listed on Schedule I hereto) it (or its custodian) has received the
applicable documents listed in Section 2.01 of the Pooling and Servicing
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents listed above and has determined
that each such document appears to be complete and, based on an examination of
such documents, the information set forth in item 1 of the definition of
Mortgage Loan Schedule in the Pooling and Servicing Agreement accurately
reflects information in the Mortgage File.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement. This
Certificate is qualified in all respects by the terms of said Pooling and
Servicing Agreement.

                                      JPMORGAN CHASE BANK, as Trustee

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

                                      F-2-1

<PAGE>

                                   EXHIBIT F-3

                        FORM OF RECEIPT OF MORTGAGE NOTE

Financial Asset Securities Corp.
600 Steamboat Road
Greenwich, Connecticut 06830

         Re:      CHEC Loan Trust 2004-1,
                  Asset-Backed Certificates Series 2004-1

Ladies and Gentlemen:

                  J.P. Morgan Trust Company, National Association, in its
capacity as custodian (the "Custodian") under the Pooling and Servicing
Agreement dated as of July 1, 2004, among Financial Asset Securities Corp. as
Depositor, Centex Home Equity Company, LLC, as Servicer and JPMorgan Chase Bank,
as Trustee, hereby acknowledges receipt (subject to review as required by
Section 2.01 of the Pooling and Servicing Agreement) of the items delivered to
it with respect to the Mortgage Loans pursuant to Section 2.01 of the Pooling
and Servicing Agreement.

                  The Schedule of Mortgage Loans is attached to this receipt as
Schedule I.

                  The Custodian hereby additionally acknowledges that it shall
review such items as required by Section 2.01 of the Pooling and Servicing
Agreement.

                                      J.P. MORGAN TRUST COMPANY,
                                      NATIONAL ASSOCIATION, as
                                      Custodian

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

                                      F-3-1

<PAGE>

                                    EXHIBIT G

                    FORM OF ANNUAL STATEMENT AS TO COMPLIANCE

                             CHEC Loan Trust 2004-1
                    Asset-Backed Certificates, Series 2004-1

                  I, _____________________, hereby certify that I am a duly
appointed __________________________ of Centex Home Equity Company, LLC (the
"Servicer"), and further certify as follows:

                  1. This certification is being made pursuant to the terms of
the Pooling and Servicing Agreement, dated as of July 1, 2004, (the
"Agreement"), among Financial Asset Securities Corp., as depositor, Centex Home
Equity Company, LLC, as servicer and JPMorgan Chase Bank, as trustee.

                  2. I have reviewed the activities of the Servicer during the
preceding year and the Servicer's performance under the Agreement and to the
best of my knowledge, based on such review, the Servicer has fulfilled all of
its obligations under the Agreement throughout the year.

                  Capitalized terms not otherwise defined herein have the
meanings set forth in the Agreement.

Dated: _____________

                                       G-1

<PAGE>

                  IN WITNESS WHEREOF, the undersigned has executed this
Certificate as of _____________.

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

                  I, _________________________, a (an) __________________ of the
Servicer, hereby certify that _________________ is a duly elected, qualified,
and acting _______________________ of the Servicer and that the signature
appearing above is his/her genuine signature.

                  IN WITNESS WHEREOF, the undersigned has executed this
Certificate as of ______________.

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

                                       G-2

<PAGE>

                                    EXHIBIT H

                           FORM OF LOST NOTE AFFIDAVIT

         Personally appeared before me the undersigned authority to administer
oaths, __________________ who first being duly sworn deposes and says: Deponent
is ________________ of ________________, successor by merger to
_________________________ ("Seller") and who has personal knowledge of the facts
set out in this affidavit.

On _________________________________, ___________________________ did execute
and deliver a promissory note in the principal amount of $____________________.

         That said note has been misplaced or lost through causes unknown and is
presently lost and unavailable after diligent search has been made. Seller's
records show that an amount of principal and interest on said note is still
presently outstanding, due, and unpaid, and Seller is still owner and holder in
due course of said lost note.

         Seller executes this Affidavit for the purpose of inducing JPMorgan
Chase Bank, as trustee on behalf of CHEC Loan Trust 2004-1, Asset-Backed
Certificates Series 2004-1, to accept the transfer of the above described loan
from Seller.

         Seller agrees to indemnify JPMorgan Chase Bank, Financial Asset
Securities Corp. and Centex Home Equity Company, LLC. harmless for any losses
incurred by such parties resulting from the above described promissory note has
been lost or misplaced.

By:      _______________________
         _______________________

STATE OF                                    )
                                            )   SS:
COUNTY OF                                   )

         On this ______ day of ______________, 20_, before me, a Notary Public,
in and for said County and State, appeared , who acknowledged the extension of
the foregoing and who, having been duly sworn, states that any representations
therein contained are true.

         Witness my hand and Notarial Seal this _________ day of 20__.

____________________________
____________________________
My commission expires __________________________.

                                       H-1

<PAGE>

                                    EXHIBIT I

                            LIMITED POWER OF ATTORNEY

                  KNOW ALL MEN BY THESE PRESENTS, that JPMorgan Chase Bank, a
New York banking corporation, having a place of business at 4 New York Plaza,
6th Floor, New York, N.Y. 10004, as Trustee (and in no personal or other
representative capacity), under the Pooling and Servicing Agreement, dated July
1, 2004, among Financial Asset Securities Corp., as depositor, Centex Home
Equity Company, LLC, as servicer and JPMorgan Chase Bank, as trustee (as
amended, restated, supplemented or otherwise modified from time to time, the
"Agreement"; capitalized terms not defined herein have the definitions assigned
to such terms in the Agreement), relating to CHEC Loan Trust 2004-1, hereby
appoints Centex Home Equity Company, LLC, in its capacity as the Servicer under
the Agreement as the Trustee's true and lawful Special Attorney-in-Fact, in the
Trustee's name, place and stead and for the Trustee's benefit, but only in its
capacity as Trustee aforesaid, to perform all acts and execute all documents as
may be customary, necessary and appropriate to effectuate the following
enumerated transactions in respect of any mortgage, deed of trust, promissory
note or real estate owned from time to time owned (beneficially or in title,
whether the Trustee is named therein as mortgagee or beneficiary or has become
mortgagee or beneficiary by virtue of endorsement, assignment or other
conveyance) or held by or registered to the Trustee (directly or through
custodians or nominees), or in respect of which the Trustee has a security
interest or other lien, all as provided under the Agreement and only to the
extent the respective Trustee has an interest therein under the Agreement, and
in respect of which the Servicer is acting as servicer pursuant to the Agreement
(collectively with respect to each PSA, the "Mortgage Documents").

                  This appointment shall apply to the following enumerated
transactions under the Agreement only:

                  1. The modification or re-recording of any Mortgage Document
for the purpose of correcting it to conform to the original intent of the
parties thereto or to correct title errors discovered after title insurance was
issued and where such modification or re-recording does not adversely affect the
lien under the Mortgage Document as insured.

                  2. The subordination of the lien under a Mortgage Document to
an easement in favor of a public utility company or a state or federal agency or
unit with powers of eminent domain including, without limitation, the execution
of partial satisfactions/releases, partial reconveyances and the execution of
requests to trustees to accomplish same.

                  3. The conveyance of the properties subject to a Mortgage
Document to the applicable mortgage insurer, or the closing of the title to the
property to be acquired as real estate so owned, or conveyance of title to real
estate so owned.

                  4. The completion of loan assumption and modification
agreements in respect of Mortgage Documents.

                                       I-1

<PAGE>

                  5. The full or partial satisfaction/release of a Mortgage
Document or full conveyance upon payment and discharge of all sums secured
thereby, including, without limitation, cancellation of the related note.

                  6. The assignment of any Mortgage Document, in connection with
the repurchase of the mortgage loan secured and evidenced thereby.

                  7. The full assignment of a Mortgage Document upon payment and
discharge of all sums secured thereby in conjunction with the refinancing
thereof, including, without limitation, the assignment of the related note.

                  8. With respect to a Mortgage Document, the foreclosure, the
taking of a deed in lieu of foreclosure, or the completion of judicial or
non-judicial foreclosure or termination, cancellation or rescission of any such
foreclosure, including, without limitation, any and all of the following acts:

                           a. the substitution of trustee(s) serving under a
                  deed of trust, in accordance with state law and the deed of
                  trust;

                           b. the preparation and issuance of statements of
                  breach or non-performance;

                           c. the preparation and filing of notices of default
                  and/or notices of sale;

                           d. the cancellation/rescission of notices of default
                  and/or notices of sale;

                           e. the taking of a deed in lieu of foreclosure; and

                           f. the preparation and execution of such other
                  documents and performance of such other actions as may be
                  necessary under the terms of the Mortgage Document or state
                  law to expeditiously complete said transactions in paragraphs
                  8(a) through 8(e), above.

                  9. Demand, sue for, recover, collection and receive each and
every sum of money, debt, account and interest (which now is, or hereafter shall
become due and payable) belonging to or claimed by the Trustee under the
Mortgage Documents, and to use or take any lawful means for recovery thereof by
legal process or otherwise.

                  10. Endorse on behalf of the Trustee all checks, drafts and/or
negotiable instruments made payable to the Trustee in respect of the Mortgage
Documents.

                  The Trustee gives the Special Attorney-in-Fact full power and
authority to execute such instruments and to do and perform all and every act
and thing necessary and proper to carry into effect the power or powers granted
by this Limited Power of Attorney, subject to the terms and conditions set forth
in the Agreement including the standard of care applicable to servicers in the
Agreement, and hereby does

                                       I-2

<PAGE>

ratify and confirm to what such Special Attorney-in-Fact shall lawfully do or
cause to be done by authority hereof.

                                       I-3

<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused its corporate name
and seal to be hereto signed and affixed and these presents to be acknowledged
by its duly elected and authorized officer this ______th day of ___ _________,
2004.

                                      JPMORGAN CHASE BANK, as Trustee

                                      By:______________________
                                      Name:
                                      Title:   Senior Vice President

                                      WITNESS:

                                      By:_______________________________
                                      Name:
                                      Title:

                                      WITNESS:

                                      By:_______________________________
                                      Name:
                                      Title:

STATE OF NEW YORK
                                    SS
COUNTY OF NEW YORK

         On ______________, 2004, before me, the undersigned, a Notary Public in
and for said state, personally appeared __________________, personally known to
me to be the person whose name is subscribed to the within instrument and to be
a duly authorized and acting Senior Vice President of JPMorgan Chase Bank, and
such person acknowledged to me that such person executed the within instrument
in such person's authorized capacity as a Senior Vice President of JPMorgan
Chase Bank, and that by such signature on the within instrument the entity upon
behalf of which such person acted executed the instrument.

         WITNESS my hand and official seal.

                                           ______________________________
                                                Notary Public

                                       I-4

<PAGE>

                                    EXHIBIT J

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                                              [DATE]
Financial Asset Securities Corp.
600 Steamboat Road
Greenwich, Connecticut 06830

JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, NY 10004
Attention: Institutional Trust Services/Global Debt

                  Re:      CHEC Loan Trust 2004-1,
                           Asset-Backed Certificates Series 2004-1

Ladies and Gentlemen:

         In connection with our acquisition of the above-captioned Certificates,
we certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as
amended, nor are we acting on behalf of any such plan, (e) we are acquiring the
Certificates for investment for our own account and not with a view to any
distribution of such Certificates (but without prejudice to our right at all
times to sell or otherwise dispose of the Certificates in accordance with clause
(g) below), (f) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, or taken any other action which
would result in a violation of Section 5 of the Act, and (g) we will not sell,
transfer or otherwise dispose of any Certificates unless (1) such sale, transfer
or other disposition is made pursuant to an effective registration statement
under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addressees of this Certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Pooling and Servicing Agreement.

                                       J-1

<PAGE>

                                       Very truly yours,

                                       [NAME OF TRANSFEREE]

                                       By:
                                          --------------------------------------
                                                 Authorized Officer

                                       J-2

<PAGE>

                       FORM OF RULE 144A INVESTMENT LETTER

                                                       [DATE]

Financial Asset Securities Corp.
600 Steamboat Road
Greenwich, Connecticut 06830

JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, NY 10004
Attention: Institutional Trust Services/Global Debt

                  Re:      CHEC Loan Trust 2004-1,
                           Asset-Backed Certificates Series 2004-1
                           ---------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have had the
opportunity to ask questions of and receive answers from the Depositor
concerning the purchase of the Certificates and all matters relating thereto or
any additional information deemed necessary to our decision to purchase the
Certificates, (c) we are not an employee benefit plan that is subject to the
Employee Retirement Income Security Act of 1974, as amended, or a plan that is
subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor
are we acting on behalf of any such plan, (d) we have not, nor has anyone acting
on our behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificates, any interest in the Certificates or any other similar security to,
or solicited any offer to buy or accept a transfer, pledge or other disposition
of the Certificates, any interest in the Certificates or any other similar
security from, or otherwise approached or negotiated with respect to the
Certificates, any interest in the Certificates or any other similar security
with, any person in any manner, or made any general solicitation by means of
general advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Certificates under the Securities Act or
that would render the disposition of the Certificates a violation of Section 5
of the Securities Act or require registration pursuant thereto, nor will act,
nor has authorized or will authorize any person to act, in such manner with
respect to the Certificates, (e) we are a "qualified institutional buyer" as
that term is defined in Rule 144A under the Securities Act and have completed
either of the forms of certification to that effect attached hereto as Annex 1
or Annex 2. We are aware that the sale to us is being made in reliance on Rule
144A. We are acquiring the Certificates for our own account or for resale
pursuant to Rule 144A and further, understand that such Certificates may be
resold, pledged or transferred only (i) to a person reasonably believed to be a
qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the Securities Act.

                                       J-3

<PAGE>

                                    Very truly yours,

                                    [NAME OF TRANSFEREE]

                                    By:
                                        -------------------------------------
                                              Authorized Officer

                                       J-4

<PAGE>

                                                            ANNEX 1 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $ 1 in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A and (ii) the
Buyer satisfies the criteria in the category marked below.

         CORPORATION, ETC. The Buyer is a corporation (other than a bank,
         savings and loan association or similar institution), Massachusetts or
         similar business trust, partnership, or charitable organization
         described in Section 501(c)(3) of the Internal Revenue Code of 1986, as
         amended.

         BANK. The Buyer (a) is a national bank or banking institution organized
         under the laws of any State, territory or the District of Columbia, the
         business of which is substantially confined to banking and is
         supervised by the State or territorial banking commission or similar
         official or is a foreign bank or equivalent institution, and (b) has an
         audited net worth of at least $25,000,000 as demonstrated in its latest
         annual financial statements, a copy of which is attached hereto.

         SAVINGS AND LOAN. The Buyer (a) is a savings and loan association,
         building and loan association, cooperative bank, homestead association
         or similar institution, which is supervised and examined by a State or
         Federal authority having supervision over any such institutions or is a
         foreign savings and loan association or equivalent institution and (b)
         has an audited net worth of at least $25,000,000 as demonstrated in its
         latest annual financial statements, a copy of which is attached hereto.

         BROKER-DEALER. The Buyer is a dealer registered pursuant to Section 15
         of the Securities Exchange Act of 1934.

--------
1        Buyer must own and/or invest on a discretionary basis at least
         $100,000,000 in securities unless Buyer is a dealer, and, in that case,
         Buyer must own and/or invest on a discretionary basis at least
         $10,000,000 in securities.

                                       J-5

<PAGE>

         INSURANCE COMPANY. The Buyer is an insurance company whose primary and
         predominant business activity is the writing of insurance or the
         reinsuring of risks underwritten by insurance companies and which is
         subject to supervision by the insurance commissioner or a similar
         official or agency of a State, territory or the District of Columbia.

         STATE OR LOCAL PLAN. The Buyer is a plan established and maintained by
         a State, its political subdivisions, or any agency or instrumentality
         of the State or its political subdivisions, for the benefit of its
         employees.

         ERISA PLAN. The Buyer is an employee benefit plan within the meaning of
         Title I of the Employee Retirement Income Security Act of 1974.

         INVESTMENT ADVISOR. The Buyer is an investment advisor registered under
         the Investment Advisors Act of 1940.

         SMALL BUSINESS INVESTMENT COMPANY. Buyer is a small business investment
         company licensed by the U.S. Small Business Administration under
         Section 301(c) or (d) of the Small Business Investment Act of 1958.

         BUSINESS DEVELOPMENT COMPANY. Buyer is a business development company
         as defined in Section 202(a)(22) of the Investment Advisors Act of
         1940.

         3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) currency, interest rate and commodity
swaps.

         4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

         5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

                                       J-6

<PAGE>

         6. Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                       J-7

<PAGE>

                                      Print Name of Buyer

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

                                      Date:
                                           --------------------------------

                                       J-8

<PAGE>

                                                            ANNEX 2 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That are Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
Adviser.

         2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyers Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

                  The Buyer owned $_________ in securities (other than the
                  excluded securities referred to below) as of the end of the
                  Buyer's most recent fiscal year (such amount being calculated
                  in accordance with Rule 144A).

                  The Buyer is part of a Family of Investment Companies which
                  owned in the aggregate $___________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

         3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

         4. The term "SECURITIES" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer or are part of the Buyer's Family
of Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

                                       J-9

<PAGE>

         5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.

         6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                      --------------------------------------
                                      Print Name of Buyer or Adviser

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

                                      IF AN ADVISER:

                                      --------------------------------------
                                      Print Name of Buyer

                                      Date:
                                            ---------------------------------

                                      J-10

<PAGE>

                                    EXHIBIT K

                     AFFIDAVIT OF TRANSFER OF R CERTIFICATES
                           PURSUANT TO SECTION 5.02(d)

                             CHEC LOAN TRUST 2004-1
                    ASSET-BACKED CERTIFICATES, SERIES 2004-1

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

         The undersigned, being first duly sworn, deposes and says as follows:

         1. The undersigned is an officer of , the proposed Transferee of an
Ownership Interest in Class R Certificates (the "Certificate") issued pursuant
to the Pooling and Servicing Agreement, (the "Agreement"), relating to the
above-referenced Certificates, among Financial Asset Securities Corp., as
Depositor, Centex Home Equity Company, LLC, as Servicer (the "Servicer") and
JPMorgan Chase Bank, as Trustee (the "Trustee"). Capitalized terms used, but not
defined herein shall have the meanings ascribed to such terms in the Agreement.
The Transferee has authorized the undersigned to make this affidavit on behalf
of the Transferee.

         2. The Transferee is, as of the date hereof and will be, as of the date
of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

         3. The Transferee has been advised of, and understands that (i) a tax
will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) to a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent Transferee furnished to such Person an affidavit that
such subsequent Transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

         4. The Transferee has been advised of, and understands that a tax will
be imposed on a "pass-through entity" holding the Certificate if at any time
during the taxable year of the pass- through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass-through entity" includes a regulated investment company, a real
estate investment trust or common

                                       K-1

<PAGE>

trust fund, a partnership, trust or estate, and certain cooperatives and, except
as may be provided in Treasury Regulations, persons holding interests in
pass-through entities as a nominee for another Person).

         5. The Transferee has reviewed the provisions of Section 5.02(d) of the
Agreement and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(d) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

         6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit K to the Agreement (a "Transferor Certificate") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

         7. The Transferee does not have the intention to impede the assessment
or collection of any tax legally required to be paid with respect to the
Certificate.

         8. The Transferee's taxpayer identification number is _____________.

         9. The Transferee is a U.S. Person as defined in Code Section
7701-(a)(30).

         10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of proposed Treasury regulations
promulgated pursuant to the Code and that the transferor of a noneconomic
residual interest will remain liable for any taxes due with respect to the
income on such residual interest, unless no significant purpose of the transfer
was to impede the assessment or collection of tax.

         11. The Transferee is not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code, nor is it acting on
behalf of such a plan.

                                       K-2

<PAGE>

                  IN WITNESS WHEREOF, the Transferee has caused this instrument
to be executed on its behalf, pursuant to authority of its Board of Directors,
by its duly authorized officer and its corporate seal to be hereunto affixed,
duly attested, this ___ day of __________, ___.

                                      [NAME OF TRANSFEREE]

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

[Corporate Seal]

ATTEST:

__________________________
[Assistant] Secretary

                  Personally appeared before me the above-named , known or
proved to me to be the same person who executed the foregoing instrument and to
be the of the Transferee, and acknowledged that he executed the same as his free
act and deed and the free act and deed of the Transferee.

                  Subscribed and sworn before me this __ day of _______, ___.

                                         --------------------------------------
                                                 NOTARY PUBLIC

                               My Commission expires the ____ day of ____, ___.

                                       K-3

<PAGE>

                                    EXHIBIT L

                         FORM OF TRANSFEROR CERTIFICATE

                                                              [DATE]

Financial Asset Securities Corp.
600 Steamboat Road
Greenwich, Connecticut 06830

JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, NY 10004
Attention: Institutional Trust Services/Global Debt

                  Re:      CHEC Loan Trust 2004-1,
                           Asset-Backed Certificates Series 2004-1

Ladies and Gentlemen:

         In connection with our disposition of the above Certificates we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act, (c) to
the extent we are disposing of a Class [ ] Certificate, we have no knowledge the
Transferee is not a Permitted Transferee and (d) no purpose of the proposed
disposition of a Class [ ] Certificate is to impede the assessment or collection
of tax.

                                      Very truly yours,

                                      TRANSFEROR

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

                                       L-1

<PAGE>

                                    EXHIBIT M

            FORM OF CERTIFICATION WITH RESPECT TO ERISA AND THE CODE

                                                 _____________, 20__

Centex Home Equity Company, LLC           JPMorgan Chase Bank
2828 North Harwood Street                 4 New York Plaza, 6th Floor
Dallas, Texas 75201                       New York, New York 10004
                                          Attention: Institutional Trust
                                          Services/Global Debt
Financial Asset Securities Corp.
600 Steamboat Road
Greenwich, Connecticut 06830

                  Re:      CHEC Loan Trust 2004-1,
                           Asset-Backed Certificates Series 2004-1

Dear Sirs:

                  _____________ (the "Transferee") intends to acquire from the
_______________________ ( "Transferor") $_________ Initial Certificate Principal
Balance CHEC Loan Trust 2004-1, Asset-Backed Certificates Series 2004-1, Class
[C][P][R][R-X] (the "Certificates"), issued pursuant to a Pooling and Servicing
Agreement (the "Pooling and Servicing Agreement") dated as of July 1, 2004 among
Financial Asset Securities Corp. as depositor (the "Depositor"), Centex Home
Equity Company, LLC as Servicer (the "Servicer") and JPMorgan Chase Bank as
trustee (the "Trustee"). Capitalized terms used herein and not otherwise defined
shall have the meanings assigned thereto in the Pooling and Servicing Agreement.
The Transferee hereby certifies, represents and warrants to, and covenants with
the Depositor, the Trustee and the Servicer the following:

                  The Certificates (i) are not being acquired by, and will not
be transferred to, any employee benefit plan within the meaning of section 3(3)
of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
other retirement arrangement, including individual retirement accounts and
annuities, Keogh plans and bank collective investment funds and insurance
company general or separate accounts in which such plans, accounts or
arrangements are invested, that is subject to Section 406 of ERISA or Section
4975 of the Internal Revenue Code of 1986 (the "Code") (any of the foregoing, a
"Plan"), (ii) are not being acquired with "plan assets" of a Plan within the
meaning of the Department of Labor ("DOL") regulation, 29 C.F.R.ss.2510.3-101,
and (iii) will not be transferred to any entity that is deemed to be investing
in plan assets within the meaning of the DOL regulation at 29 C.F.R.ss.
2510.3-101.

                                    Very truly yours,

                                    [Transferee]

                                    By:_____________________________
                                    Name:
                                    Title:

                                       M-1

<PAGE>

                                   EXHIBIT N-1

        FORM CERTIFICATION TO BE PROVIDED BY THE DEPOSITOR WITH FORM 10-K

                  I, [_____], certify that:

                  l. I have reviewed this annual report on Form 10-K, and all
reports on Form 8-K containing distribution and servicing reports filed in
respect of periods included in the year covered by this annual report, of CHEC
Loan Trust 2004-1, Asset-Backed Certificates, Series 2004-1;

                  2. Based on my knowledge, the information in these reports,
taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading as of
the last day of the period covered by this annual report;

                  3. Based on my knowledge, the distribution or servicing
information required to be provided to the trustee by the servicer under the
pooling and servicing, or similar, agreement, for inclusion in these reports is
included in these reports;

                  4. Based on my knowledge and upon the annual compliance
statement included in the report and required to be delivered to the trustee in
accordance with the terms of the pooling and servicing, or similar, agreement,
and except as disclosed in the reports, the servicer has fulfilled its
obligations under the servicing agreement; and

                  5. The reports disclose all significant deficiencies relating
to the servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public accountant, after conducting a review
in compliance with the Uniform Single Attestation Program for Mortgage Bankers
or similar procedure, as set forth in the pooling and servicing, or similar,
agreement, that is included in these reports.

                  In giving the certifications above, I have reasonably relied
on information provided to me by the following unaffiliated parties: Centex Home
Equity Company, LLC and JPMorgan Chase Bank.

Date:_________

                                      FINANCIAL ASSET SECURITIES CORP.

                                      By:____________________________________
                                      Name:
                                      Title:

<PAGE>

                                   EXHIBIT N-2

                            FORM CERTIFICATION TO BE
                      PROVIDED TO DEPOSITOR BY THE TRUSTEE

          Re:  CHEC Loan Trust 2004-1 (the "Trust") Mortgage Pass-Through
               Certificates, Series 2004-1

                  I, [identify the certifying individual], a [title] of JPMorgan
Chase Bank, as Trustee of the Trust, hereby certify to Financial Asset
Securities Corp. (the "Depositor"), and its officers, directors and affiliates,
and with the knowledge and intent that they will rely upon this certification,
that:

                  1. I have reviewed the annual report on Form 10-K for the
fiscal year [___], and all reports on Form 8-K containing distribution reports
filed in respect of periods included in the year covered by that annual report,
of the Depositor relating to the above-referenced trust;

                  2. Based on my knowledge, the information in these
distribution reports prepared by the Trustee, taken as a whole, does not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading as of the last day of the period
covered by that annual report; and

                  3. Based on my knowledge, the distribution information
required to be provided by the Trustee under the Pooling and Servicing Agreement
is included in these reports.

                  Capitalized terms used but not defined herein have the
meanings ascribed to them in the Pooling and Servicing Agreement, dated July 1,
2004 (the "Pooling and Servicing Agreement"), among the Depositor as depositor,
Centex Home Equity Company, LLC, as servicer and JPMorgan Chase Bank as trustee.

                                      JPMORGAN CHASE BANK, as Trustee

                                      By:__________________________________
                                      Name:
                                      Title:
                                      Date:

<PAGE>

                                   EXHIBIT N-3

                            FORM CERTIFICATION TO BE
                      PROVIDED TO DEPOSITOR BY THE SERVICER

                  Re:  CHEC Loan Trust 2004-1 (the "Trust"), Mortgage
                       Pass-Through Certificates, Series 2004-1

                  I, [identify the certifying individual], certify that:

                  l. I have reviewed the information required to be provided to
the Trustee by the Servicer pursuant to the Pooling and Servicing Agreement (the
"Servicing Information");

                  2. Based on my knowledge, the Servicing Information, taken as
a whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading as of the
last day of the period covered by this annual report;

                  3. Based on my knowledge, the Servicing Information required
to be provided to the Trustee by the Servicer has been provided as required
under the Pooling and Servicing Agreement;

                  4. I am responsible for reviewing the activities performed by
the Servicer under the Pooling and Servicing Agreement and based upon my
knowledge and the annual compliance review required under the Pooling and
Servicing Agreement, and except as disclosed by written notice to the Trustee or
in the annual compliance statement or certified public accountant's report
required to be delivered to the Trustee in accordance with the terms of the
Pooling and Servicing Agreement (which has been so delivered to the Trustee),
the Servicer has, for the period covered by the Form 10-K Annual Report,
fulfilled its obligations under the Pooling and Servicing Agreement; and

                  5. The Servicer has disclosed to its certified public
accountants and the Depositor all significant deficiencies relating to the
Servicer's compliance with the minimum servicing standards in accordance with a
review conducted in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or similar procedure, as set forth in the Pooling and Servicing
Agreement.

                  Capitalized terms used but not defined herein have the
meanings ascribed to them in the Pooling and Servicing Agreement, dated July 1,
2004 (the "Pooling and Servicing Agreement"), among the Depositor as depositor,
Centex Home Equity Company, LLC as servicer and JPMorgan Chase Bank as trustee.

<PAGE>

                                      CENTEX HOME EQUITY COMPANY, LLC

                                      By:____________________________
                                      Name:
                                      Title:
                                      Date:

<PAGE>

                                    EXHIBIT O

                              FORM OF CAP CONTRACT

                            [Available Upon Request]

<PAGE>

                                   SCHEDULE I

                           PREPAYMENT CHARGE SCHEDULE

                            (Available Upon Request)MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

                                    Depositor

                           HOMEQ SERVICING CORPORATION

                                    Servicer

                                       and

                         U.S. BANK NATIONAL ASSOCIATION

                                     Trustee

                         POOLING AND SERVICING AGREEMENT
                            Dated as of July 1, 2004

                  MASTR Asset Backed Securities Trust 2004-WMC2
                       Mortgage Pass-Through Certificates

                                Series 2004-WMC2

<PAGE>

<TABLE>
<CAPTION>

                                                 TABLE OF CONTENTS

                                                     ARTICLE I

                                                    DEFINITIONS
<S>                        <C>
         SECTION 1.01.     Defined Terms........................................................................-2-
         SECTION 1.02.     Allocation of Certain Interest Shortfalls...........................................-53-
         SECTION 1.03      Rights of the NIMS Insurer..........................................................-54-

                                                    ARTICLE II

                                           CONVEYANCE OF MORTGAGE LOANS;
                                         ORIGINAL ISSUANCE OF CERTIFICATES
         SECTION 2.01.     Conveyance of the Mortgage Loans....................................................-55-
         SECTION 2.02.     Acceptance of REMIC I by Trustee....................................................-57-
         SECTION 2.03.     Repurchase or Substitution of Mortgage Loans by the Originator or
                           the Seller..........................................................................-59-
         SECTION 2.04.     Reserved............................................................................-62-
         SECTION 2.05.     Representations, Warranties and Covenants of the Servicer...........................-62-
         SECTION 2.06.     Conveyance of REMIC Regular Interests and Acceptance of
                           REMIC I, REMIC II, REMIC III and REMIC IV by the Trustee;
                           Issuance of Certificates............................................................-64-
         SECTION 2.07.     Issuance of Class R Certificates and Class R-X Certificates.........................-65-

                                                    ARTICLE III

         SECTION 3.01.     Servicer to Act as Servicer.........................................................-66-
         SECTION 3.02.     Sub-Servicing Agreements Between Servicer and Sub-Servicers
                            ...................................................................................-68-
         SECTION 3.03.     Successor Sub-Servicers.............................................................-69-
         SECTION 3.04.     Liability of the Servicer...........................................................-69-
         SECTION 3.05.     No Contractual Relationship Between Sub-Servicers and the NIMS
                           Insurer, Trustee or Certificateholders..............................................-69-
         SECTION 3.06.     Assumption or Termination of Sub-Servicing Agreements by
                           Trustee.............................................................................-70-
         SECTION 3.07.     Collection of Certain Mortgage Loan Payments........................................-70-
         SECTION 3.08.     Sub-Servicing Accounts..............................................................-71-
         SECTION 3.09.     Collection of Taxes, Assessments and Similar Items; Servicing
                           Accounts............................................................................-71-
         SECTION 3.10.     Collection Account and Distribution Account.........................................-72-
         SECTION 3.11.     Withdrawals from the Collection Account and Distribution
                           Account.............................................................................-74-
         SECTION 3.12.     Investment of Funds in the Collection Account and the Distribution
                           Account.............................................................................-77-
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<CAPTION>

<S>                        <C>
         SECTION 3.13.     [Reserved]..........................................................................-78-
         SECTION 3.14.     Maintenance of Hazard Insurance and Errors and Omissions and
                           Fidelity Coverage...................................................................-78-
         SECTION 3.15.     Enforcement of Due-On-Sale Clauses; Assumption Agreements
                            ...................................................................................-79-
         SECTION 3.16.     Realization Upon Defaulted Mortgage Loans...........................................-80-
         SECTION 3.17.     Trustee to Cooperate; Release of Mortgage Files.....................................-82-
         SECTION 3.18.     Servicing Compensation..............................................................-84-
         SECTION 3.19.     Reports to the Trustee; Collection Account Statements...............................-84-
         SECTION 3.20.     Statement as to Compliance..........................................................-84-
         SECTION 3.21.     Independent Public Accountants' Servicing Report....................................-85-
         SECTION 3.22.     Access to Certain Documentation; Filing of Reports by Trustee
                            ...................................................................................-85-
         SECTION 3.23.     Title, Management and Disposition of REO Property...................................-86-
         SECTION 3.24.     Obligations of the Servicer in Respect of Prepayment Interest
                           Shortfalls..........................................................................-89-
         SECTION 3.25.     [Reserved]..........................................................................-89-
         SECTION 3.26.     Obligations of the Servicer in Respect of Mortgage Rates and
                           Monthly Payments....................................................................-89-
         SECTION 3.27.     [Reserved]..........................................................................-89-
         SECTION 3.28.     [Reserved]..........................................................................-89-
         SECTION 3.29.     Advance Facility....................................................................-89-

                                                    ARTICLE IV

                                          PAYMENTS TO CERTIFICATEHOLDERS
         SECTION 4.01.     Distributions.......................................................................-92-
         SECTION 4.02.     Statements to Certificateholders...................................................-104-
         SECTION 4.03.     Remittance Reports; Advances.......................................................-107-
         SECTION 4.04.     Allocation of Realized Losses......................................................-108-
         SECTION 4.05.     Compliance with Withholding Requirements...........................................-110-
         SECTION 4.06.     Exchange Commission; Additional Information........................................-110-
         SECTION 4.07.     Net WAC Rate Carryover Reserve Account.............................................-112-

                                                     ARTICLE V

                                                 THE CERTIFICATES
         SECTION 5.01.     The Certificate....................................................................-114-
         SECTION 5.02.     Registration of Transfer and Exchange of Certificates..............................-115-
         SECTION 5.03.     Mutilated, Destroyed, Lost or Stolen Certificates..................................-120-
         SECTION 5.04.     Persons Deemed Owners..............................................................-121-
         SECTION 5.05.     Certain Available Information......................................................-121-

                                                    ARTICLE VI
</TABLE>

                                                       -ii-

<PAGE>

<TABLE>
<CAPTION>

<S>                        <C>
         THE DEPOSITOR AND THE SERVICER.......................................................................-122-
         SECTION 6.01.     Liability of the Servicer and the Depositor........................................-122-
         SECTION 6.02.     Merger or Consolidation of, or Assumption of the Obligations of,
                           the Servicer or the Depositor......................................................-122-
         SECTION 6.03.     Limitation on Liability of the Servicer and Others.................................-122-
         SECTION 6.04.     Servicer Not to Resign.............................................................-123-
         SECTION 6.05.     Delegation of Duties...............................................................-124-
         SECTION 6.06.     Reserved...........................................................................-124-
         SECTION 6.07.     Inspection.........................................................................-124-

                                                    ARTICLE VII
         DEFAULT..............................................................................................-125-
         SECTION 7.01.     Servicer Events of Default.........................................................-125-
         SECTION 7.02.     Trustee to Act; Appointment of Successor...........................................-127-
         SECTION 7.03.     Notification to Certificateholders.................................................-129-
         SECTION 7.04.     Waiver of Servicer Events of Default...............................................-129-
         SECTION 7.05.     Survivability of Servicer Liabilities..............................................-129-

                                                   ARTICLE VIII

         CONCERNING THE TRUSTEE...............................................................................-130-
         SECTION 8.01.     Duties of Trustee..................................................................-130-
         SECTION 8.02.     Certain Matters Affecting the Trustee..............................................-131-
         SECTION 8.03.     Trustee not Liable for Certificates or Mortgage Loans..............................-132-
         SECTION 8.04.     Trustee May Own Certificates.......................................................-132-
         SECTION 8.05.     Trustee's Fees and Expenses........................................................-132-
         SECTION 8.06.     Eligibility Requirements for Trustee...............................................-133-
         SECTION 8.07.     Resignation and Removal of the Trustee.............................................-133-
         SECTION 8.08.     Successor Trustee..................................................................-134-
         SECTION 8.09.     Merger or Consolidation of Trustee.................................................-135-
         SECTION 8.10.     Appointment of Co-Trustee or Separate Trustee......................................-135-
         SECTION 8.11.     Appointment of Office or Agency; Appointment of
                                    Custodian.................................................................-136-
         SECTION 8.12.     Representations and Warranties.....................................................-136-

                                                    ARTICLE IX

                                                    TERMINATION
         SECTION 9.01.     Termination Upon Repurchase or Liquidation of All Mortgage
                           Loans..............................................................................-138-
         SECTION 9.02.     Additional Termination Requirements................................................-140-
</TABLE>

                                                       -iii-

<PAGE>

<TABLE>
<CAPTION>

                                                     ARTICLE X

                                                 REMIC PROVISIONS
<S>                        <C>
         SECTION 10.01.             REMIC Administration......................................................-142-
         SECTION 10.02.             Prohibited Transactions and Activities....................................-144-
         SECTION 10.03.             Servicer and Trustee Indemnification......................................-145-

                                                    ARTICLE XI

                                             MISCELLANEOUS PROVISIONS
         SECTION 11.01.             Amendment.................................................................-147-
         SECTION 11.02.             Recordation of Agreement; Counterparts....................................-148-
         SECTION 11.03.             Limitation on Rights of Certificateholders................................-148-
         SECTION 11.04.             Governing Law.............................................................-149-
         SECTION 11.05.             Notices...................................................................-149-
         SECTION 11.06.             Severability of Provisions................................................-150-
         SECTION 11.07.             Notice to Rating Agencies.................................................-150-
         SECTION 11.08.             Article and Section References............................................-151-
         SECTION 11.09.             Grant of Security Interest................................................-151-
         SECTION 11.10.             Third Party Rights........................................................-152-
</TABLE>

                                                       -iv-

<PAGE>

<TABLE>
<CAPTION>

EXHIBITS
<S>                        <C>
Exhibit A-1       Form of Class A-1 Certificate
Exhibit A-2       Form of Class A-2 Certificate
Exhibit A-3       Form of Class A-3 Certificate
Exhibit A-4       Form of Class A-4 Certificate
Exhibit A-5       Form of Class M-1 Certificate
Exhibit A-6       Form of Class M-2 Certificate
Exhibit A-7       Form of Class M-3 Certificate
Exhibit A-8       Form of Class M-4 Certificate
Exhibit A-9       Form of Class M-5 Certificate
Exhibit A-10      Form of Class M-6 Certificate
Exhibit A-11      Form of Class M-7 Certificate
Exhibit A-12      Form of Class CE Certificate
Exhibit A-13      Form of Class P Certificate
Exhibit A-14      Form of Class R Certificate
Exhibit A-15      Form of Class R-X Certificate
Exhibit B         [Reserved]
Exhibit C-1       Form of Trustee's Initial Certification
Exhibit C-2       Form of Trustee's Final Certification
Exhibit C-3       Form of Trustee's Receipt of Mortgage Notes
Exhibit D         Form of Mortgage Loan Purchase Agreement
Exhibit E         Request for Release
Exhibit F-1       Form of Transferor Representation Letter and Form of Transferee Representation
                  Letter in Connection with Transfer of the Private Certificates Pursuant to Rule
                  144A Under the 1933 Act
Exhibit F-2       Form of Transfer Affidavit and Agreement and Form of Transferor Affidavit in
                  Connection with Transfer of Residual Certificates
Exhibit G         Form of Certification with respect to ERISA and the Code
Exhibit H         Form of Report Pursuant to Section 4.06
Exhibit I         Form of Lost Note Affidavit
Exhibit J-1       Form of Certification to Be Provided by the Trustee with Form 10-K
Exhibit J-2       Form of Backup Certification to Be Provided by the Servicer with respect to the Form 10-K
Exhibit K         Form of Custodial Agreement
Exhibit L         Annual Statement of Compliance pursuant to Section 3.20
Exhibit M         Forms of Cap Contracts

Schedule 1        Mortgage Loan Schedule
Schedule 2        Prepayment Charge Schedule
</TABLE>

                                       -v-

<PAGE>

                  This Pooling and Servicing Agreement, is dated and effective
as of July 1, 2004, among MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC. as
Depositor, HOMEQ SERVICING CORPORATION as Servicer and U.S. BANK NATIONAL
ASSOCIATION as Trustee.

                             PRELIMINARY STATEMENT:

                  The Depositor intends to sell pass-through certificates to be
issued hereunder in multiple classes, which in the aggregate will evidence the
entire beneficial ownership interest in each REMIC (as defined herein) created
hereunder. The Trust Fund will consist of a segregated pool of assets comprised
of the Mortgage Loans and certain other related assets subject to this
Agreement.

                                      -vi-

<PAGE>

                                     REMIC I
                                     -------

                  As provided herein, the Trustee will elect to treat the
segregated pool of assets consisting of the Mortgage Loans and certain other
related assets (other than the Net WAC Rate Carryover Reserve Account, the
Servicer Prepayment Charge Payment Amount and the Cap Contracts) subject to this
Agreement as a REMIC for federal income tax purposes, and such segregated pool
of assets will be designated as "REMIC I." The Class R-I Interest will be the
sole class of "residual interests" in REMIC I for purposes of the REMIC
Provisions (as defined herein). The following table irrevocably sets forth the
designation, the REMIC I Remittance Rate, the initial Uncertificated Balance
and, solely for purposes of satisfying Treasury regulation section 1.860G-
1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC I
Regular Interests (as defined herein). None of the REMIC I Regular Interests
will be certificated.

<TABLE>
<CAPTION>

                                      REMIC I                        Initial                   Latest Possible
       Designation                Remittance Rate             Uncertificated Balance          Maturity Date(1)
       -----------                ---------------             ----------------------          ----------------
<S>                                 <C>                         <C>                            <C>
        I-LTAA                      Variable(2)                 $   289,287,151.40             April 25, 2034
        I-LTA1                      Variable(2)                 $     1,063,180.00             April 25, 2034
        I-LTA2                      Variable(2)                 $       555,210.00             April 25, 2034
        I-LTA3                      Variable(2)                 $       449,340.00             April 25, 2034
        I-LTA4                      Variable(2)                 $       286,420.00             April 25, 2034
        I-LTM1                      Variable(2)                 $       191,875.00             April 25, 2034
        I-LTM2                      Variable(2)                 $       169,735.00             April 25, 2034
        I-LTM3                      Variable(2)                 $        51,660.00             April 25, 2034
        I-LTM4                      Variable(2)                 $        36,900.00             April 25, 2034
        I-LTM5                      Variable(2)                 $        44,280.00             April 25, 2034
        I-LTM6                      Variable(2)                 $        44,280.00             April 25, 2034
        I-LTM7                      Variable(2)                 $        29,520.00             April 25, 2034
        I-LTZZ                      Variable(2)                 $     2,981,419.42             April 25, 2034
         I-LTP                      Variable(2)                 $           100.00             April 25, 2034
       I-LT1SUB                     Variable(2)                 $         5,399.21             April 25, 2034
       I-LT1GRP                     Variable(2)                 $        26,662.81             April 25, 2034
       I-LT2SUB                     Variable(2)                 $         2,819.58             April 25, 2034
       I-LT2GRP                     Variable(2)                 $        13,923.78             April 25, 2034
       I-LT3SUB                     Variable(2)                 $         3,736.42             April 25, 2034
       I-LT3GRP                     Variable(2)                 $        18,451.62             April 25, 2034
         I-XX                       Variable(2)                 $   295,119,977.41             April 25, 2034
</TABLE>
-------------------
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loan with the latest maturity date has been designated as
     the "latest possible maturity date" for each REMIC I Regular Interest.
(2)  Calculated in accordance with the definition of "REMIC I Remittance Rate"
     herein.

                                      -vii-

<PAGE>

                                    REMIC II
                                    --------

                  As provided herein, the Trustee will elect to treat the
segregated pool of assets consisting of the REMIC I Regular Interests as a REMIC
for federal income tax purposes, and such segregated pool of assets will be
designated as "REMIC II." The Class R-II Interest will evidence the sole class
of "residual interests" in REMIC II for purposes of the REMIC Provisions under
federal income tax law. The following table irrevocably sets forth the
designation, the Pass-Through Rate, the initial aggregate Certificate Principal
Balance and, solely for purposes of satisfying Treasury regulation section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for the indicated
Classes of Certificates.

<TABLE>
<CAPTION>

                                                                   Initial Aggregate               Latest Possible
         Designation                Pass-Through Rate        Certificate Principal Balance          Maturity Date
         -----------                -----------------        -----------------------------          -------------
<S>                                   <C>                          <C>                             <C>
         Class A-1                    Variable(1)                  $   212,636,000.00              April 25, 2034
         Class A-2                    Variable(1)                  $   111,042,000.00              April 25, 2034
         Class A-3                    Variable(1)                  $    89,868,000.00              April 25, 2034
         Class A-4                    Variable(1)                  $    57,284,000.00              April 25, 2034
         Class M-1                    Variable(1)                  $    38,375,000.00              April 25, 2034
         Class M-2                    Variable(1)                  $    33,947,000.00              April 25, 2034
         Class M-3                    Variable(1)                  $    10,332,000.00              April 25, 2034
         Class M-4                    Variable(1)                  $     7,380,000.00              April 25, 2034
         Class M-5                    Variable(1)                  $     8,856,000.00              April 25, 2034
         Class M-6                    Variable(1)                  $     8,856,000.00              April 25, 2034
         Class M-7                    Variable(1)                  $     5,904,000.00              April 25, 2034
     Class CE Interest                Variable(2)                  $     5,901,941.64              April 25, 2034
     Class P Interest                   N/A(3)                     $           100.00              April 25, 2034
</TABLE>
------------------
(1)  Calculated in accordance with the definition of "Pass-Through Rate" herein.
(2)  The Class CE Interest will accrue interest at its variable Pass-Through
     Rate on the Notional Amount of the Class CE Interest outstanding from time
     to time which shall equal the Uncertificated Balance of the REMIC I Regular
     Interests (other than REMIC I Regular Interest I-LTP). The Class CE
     Interest will not accrue interest on its Uncertificated Balance.
(3)  The Class P Interest will not accrue interest.

                                     -viii-

<PAGE>

                                    REMIC III
                                    ---------

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the Class CE Interest as a
REMIC for federal income tax purposes, and such segregated pool of assets will
be designated as "REMIC III." The Class R-III Interest represents the sole class
of "residual interests" in REMIC III for purposes of the REMIC Provisions.

                  The following table sets forth (or describes) the Class
designation, Pass-Through Rate and Original Class Certificate Principal Balance
for the indicated Class of Certificates that represents a "regular interest" in
REMIC III created hereunder:

<TABLE>
<CAPTION>

                                                                  Initial Aggregate
                                                                Certificate Principal            Latest Possible
      Class Designation             Pass-Through Rate                  Balance                  Maturity Date(1)
      -----------------             -----------------                  -------                  ----------------
<S>                                    <C>                         <C>                           <C>
    Class CE Certificates              Variable(2)                 $ 5,901,941.64                April 25, 2034

</TABLE>
_______________
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loans with the latest maturity date has been designated as
     the "latest possible maturity date" for the Class CE Certificates.
(2)  The Class CE Certificates will receive 100% of amounts received in respect
     of the Class CE Interest.

                                      -ix-

<PAGE>

                                    REMIC IV
                                    --------

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the Class P Interest as a
REMIC for federal income tax purposes, and such segregated pool of assets will
be designated as "REMIC IV." The Class R-IV Interest represents the sole class
of "residual interests" in REMIC IV for purposes of the REMIC Provisions.

                  The following table sets forth (or describes) the Class
designation, Pass-Through Rate and Original Class Certificate Principal Balance
for the indicated Class of Certificates that represents a "regular interest" in
REMIC IV created hereunder:

<TABLE>
<CAPTION>

                                                                  Initial Aggregate
                                                                Certificate Principal            Latest Possible
      Class Designation             Pass-Through Rate                  Balance                  Maturity Date(1)
      -----------------             -----------------                  -------                  ----------------
<S>                                    <C>                             <C>                       <C>
    Class P Certificates               Variable(2)                     $100.00                   April 25, 2034
</TABLE>
_______________
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loans with the latest maturity date has been designated as
     the "latest possible maturity date" for the Class P Certificates.
(2)  The Class P Certificates will receive 100% of amounts received in respect
     of the Class P Interest.

                  As of the Cut-off Date, the Mortgage Loans had an aggregate
Stated Principal Balance equal to $590,382,041.64.

                  In consideration of the mutual agreements herein contained,
the Depositor, the Servicer and the Trustee agree as follows:

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.01. Defined Terms.

                  Whenever used in this Agreement, including, without
limitation, in the Preliminary Statement hereto, the following words and
phrases, unless the context otherwise requires, shall have the meanings
specified in this Article. Unless otherwise specified, all calculations
described herein shall be made on the basis of a 360-day year consisting of
twelve 30-day months.

                  "Accrual Period": With respect to the Class A Certificates and
the Mezzanine Certificates and each Distribution Date, the period commencing on
the preceding Distribution Date (or in the case of the first such Accrual
Period, commencing on the Closing Date) and ending on the day preceding the
current Distribution Date. With respect to the Class CE Certificates and the
REMIC I Regular Interests and each Distribution Date, the calendar month prior
to the month of such Distribution Date.

                  "Adjustable-Rate Mortgage Loan": Each of the Mortgage Loans
identified in the Mortgage Loan Schedule as having a Mortgage Rate that is
subject to adjustment.

                  "Adjusted Net Maximum Mortgage Rate": With respect to any
Mortgage Loan (or the related REO Property), as of any date of determination, a
per annum rate of interest equal to the applicable Maximum Mortgage Rate for
such Mortgage Loan (or the Mortgage Rate in the case of any Fixed-Rate Mortgage
Loan) as of the first day of the month preceding the month in which the related
Distribution Date occurs minus the sum of (i) the Trustee Fee Rate and (ii) the
Servicing Fee Rate.

                  "Adjusted Net Mortgage Rate": With respect to any Mortgage
Loan (or the related REO Property), as of any date of determination, a per annum
rate of interest equal to the applicable Mortgage Rate for such Mortgage Loan as
of the first day of the month preceding the month in which the related
Distribution Date occurs minus the sum of (i) the Trustee Fee Rate and (ii) the
Servicing Fee Rate.

                  "Adjustment Date": With respect to each Adjustable-Rate
Mortgage Loan, the first day of the month in which the Mortgage Rate of such
Mortgage Loan changes pursuant to the related Mortgage Note. The first
Adjustment Date following the Cut-off Date as to each Adjustable-Rate Mortgage
Loan is set forth in the Mortgage Loan Schedule.

                  "Advance": With respect to any Distribution Date, as to any
Mortgage Loan or REO Property, any advance made by the Servicer in respect of
Monthly Payments due during the related Due Period pursuant to Section 4.03.

                  "Advance Facility": As defined in Section 3.29 hereof.

                  "Advancing Person": As defined in Section 3.29 hereof.

                                       -2-

<PAGE>

                  "Affiliate": With respect to any specified Person, any other
Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, "control" when used with respect to
any specified Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

                  "Aggregate Loss Severity Percentage": With respect to any
Distribution Date, the percentage equivalent of a fraction, the numerator of
which is the aggregate amount of Realized Losses incurred on any Mortgage Loans
from the Cut-off Date to the last day of the preceding calendar month and the
denominator of which is the aggregate principal balance of such Mortgage Loans
immediately prior to the liquidation of such Mortgage Loans.

                  "Agreement": This Pooling and Servicing Agreement and all
amendments hereof and supplements hereto.

                  "Allocated Realized Loss Amount": With respect to any
Distribution Date and any Class of Mezzanine Certificates, the sum of (i) any
Realized Losses allocated to such Class of Certificates on such Distribution
Date and (ii) the amount of any Allocated Realized Loss Amount for such Class of
Certificates remaining undistributed from the previous Distribution Date and
reduced by the amount of any Subsequent Recoveries added to the Certificate
Principal Balance of such Class of Certificates.

                  "Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form (excepting therefrom, if applicable,
the mortgage recordation information which has not been required pursuant to
Section 2.01 hereof or returned by the applicable recorder's office), which is
sufficient under the laws of the jurisdiction wherein the related Mortgaged
Property is located to reflect of record the sale of the Mortgage, which
assignment, notice of transfer or equivalent instrument may be in the form of
one or more blanket assignments covering Mortgages secured by Mortgaged
Properties located in the same county, if permitted by law.

                  "Available Funds": With respect to any Distribution Date, an
amount equal to the excess of (i) the sum of (a) the aggregate of the related
Monthly Payments received on the Mortgage Loans on or prior to the related
Determination Date, (b) Net Liquidation Proceeds, Insurance Proceeds, Principal
Prepayments, Subsequent Recoveries, proceeds from repurchases of and
substitutions for such Mortgage Loans and other unscheduled recoveries of
principal and interest in respect of the Mortgage Loans received during the
related Prepayment Period, (c) the aggregate of any amounts received in respect
of a related REO Property withdrawn from any REO Account and deposited in the
Collection Account for such Distribution Date, (d) the aggregate of any amounts
deposited in the Collection Account by the Servicer in respect of related
Prepayment Interest Shortfalls for such Distribution Date, (e) the aggregate of
any Advances made by the Servicer for such Distribution Date in respect of the
Mortgage Loans and (f) the aggregate of any related advances made by the Trustee
in respect of the Mortgage Loans for such Distribution Date pursuant to Section
7.02 over (ii) the sum of (a) amounts reimbursable or payable to the Servicer
pursuant to Section 3.11(a), (b) Extraordinary Trust Fund Expenses reimbursable
to the Trustee pursuant to Section 3.11(b), (c) amounts deposited in the
Collection Account or the Distribution Account

                                       -3-

<PAGE>

pursuant to clauses (a) through (f) above, as the case may be, in error, (d) the
amount of any Prepayment Charges collected by the Servicer in connection with
the full or partial prepayment of any of the Mortgage Loans and any Servicer
Prepayment Charge Payment Amount and (e) the Trustee Fee and any indemnification
amounts owed to the Trustee payable from the Distribution Account pursuant to
Section 8.05.

                  "Balloon Mortgage Loan": A Mortgage Loan that provides for the
payment of the unamortized principal balance of such Mortgage Loan in a single
payment at the maturity of such Mortgage Loan that is substantially greater than
the preceding monthly payment.

                  "Balloon Payment": A payment of the unamortized principal
balance of a Mortgage Loan in a single payment at the maturity of such Mortgage
Loan that is substantially greater than the preceding Monthly Payment.

                  "Bankruptcy Code": The Bankruptcy Reform Act of 1978 (Title 11
of the United States Code), as amended.

                  "Book-Entry Certificate": The Class A Certificates and the
Mezzanine Certificates for so long as the Certificates of such Class shall be
registered in the name of the Depository or its nominee.

                  "Book-Entry Custodian": The custodian appointed pursuant to
Section 5.01.

                  "Business Day": Any day other than a Saturday, a Sunday or a
day on which banking or savings and loan institutions in the State of
California, the State of New York, the State of New Jersey, the Commonwealth of
Pennsylvania, or in the cities in which the Corporate Trust Office of the
Trustee is located, are authorized or obligated by law or executive order to be
closed.

                  "Cap Contracts": The Class A-1 Cap Contract, the Class A-2 Cap
Contract, the Group III Cap Contract and the Mezzanine Cap Contract in the forms
attached hereto as Exhibit L.

                  "Certificate": Any one of the Mortgage Pass-Through
Certificates, Series 2004- WMC2, Class A-1, Class A-2, Class A-3, Class A-4,
Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
Class CE, Class P, Class R or Class R-X, issued under this Agreement.

                  "Certificate Factor": With respect to any Class of Regular
Certificates as of any Distribution Date, a fraction, expressed as a decimal
carried to at least six places, the numerator of which is the aggregate
Certificate Principal Balance (or the Notional Amount, in the case of the Class
CE Certificates) of such Class of Certificates on such Distribution Date (after
giving effect to any distributions of principal and allocations of Realized
Losses in reduction of the Certificate Principal Balance (or the Notional
Amount, in the case of the Class CE Certificates) of such Class of Certificates
to be made on such Distribution Date), and the denominator of which is the
initial aggregate Certificate Principal Balance (or the Notional Amount, in the
case of the Class CE Certificates) of such Class of Certificates as of the
Closing Date.

                                       -4-

<PAGE>

                  "Certificate Margin": With respect to the Class A-1
Certificates and REMIC I Regular Interest I-LTA1, 0.300% in the case of each
Distribution Date through and including the Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust Fund is reduced to less than
10% of the aggregate Cut-off Date Principal Balance of the Mortgage Loans and
0.600% in the case of each Distribution Date thereafter.

                  With respect to the Class A-2 Certificates and REMIC I Regular
Interest I-LTA2, 0.300% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.600% in the case of each
Distribution Date thereafter.

                  With respect to the Class A-3 Certificates and REMIC I Regular
Interest I-LTA3, 0.210% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.420% in the case of each
Distribution Date thereafter.

                  With respect to the Class A-4 Certificates and REMIC I Regular
Interest I-LTA4, 0.440% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.880% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-1 Certificates and REMIC I Regular
Interest I-LTM1, 0.600% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.900% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-2 Certificates and REMIC I Regular
Interest I-LTM2, 1.250% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 1.875% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-3 Certificates and REMIC I Regular
Interest I-LTM3, 1.550% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date

                                       -5-

<PAGE>

Principal Balance of the Mortgage Loans and 2.325% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-4 Certificates and REMIC I Regular
Interest I-LTM4, 2.150% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 3.225% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-5 Certificates and REMIC I Regular
Interest I-LTM5, 2.400% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 3.600% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-6 Certificates and REMIC I Regular
Interest I-LTM6, 3.750% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 5.625% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-7 Certificates and REMIC I Regular
Interest I-LTM7, 3.750% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 5.625% in the case of each
Distribution Date thereafter.

                  "Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that a
Disqualified Organization or a Non-United States Person shall not be a Holder of
a Residual Certificate for any purposes hereof and, solely for the purposes of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor or the Servicer or any Affiliate thereof shall be deemed
not to be outstanding and the Voting Rights to which it is entitled shall not be
taken into account in determining whether the requisite percentage of Voting
Rights necessary to effect any such consent has been obtained, except as
otherwise provided in Section 11.01. The Trustee and the NIMS Insurer may
conclusively rely upon a certificate of the Depositor or the Servicer in
determining whether a Certificate is held by an Affiliate thereof. All
references herein to "Holders" or "Certificateholders" shall reflect the rights
of Certificate Owners as they may indirectly exercise such rights through the
Depository and participating members thereof, except as otherwise specified
herein; provided, however, that the Trustee and the NIMS Insurer shall be
required to recognize as a "Holder" or "Certificateholder" only the Person in
whose name a Certificate is registered in the Certificate Register.

                                       -6-

<PAGE>

                  "Certificate Owner": With respect to a Book-Entry Certificate,
the Person who is the beneficial owner of such Certificate as reflected on the
books of the Depository or on the books of a Depository Participant or on the
books of an indirect participating brokerage firm for which a Depository
Participant acts as agent.

                  "Certificate Principal Balance": With respect to each Class A
Certificate, Mezzanine Certificate or Class P Certificate as of any date of
determination, the Certificate Principal Balance of such Certificate on the
Distribution Date immediately prior to such date of determination plus any
Subsequent Recoveries added to the Certificate Principal Balance of such
Certificate pursuant to Section 4.01, minus all distributions allocable to
principal made thereon and Realized Losses allocated thereto on such immediately
prior Distribution Date (or, in the case of any date of determination up to and
including the first Distribution Date, the initial Certificate Principal Balance
of such Certificate, as stated on the face thereof). With respect to each Class
CE Certificate as of any date of determination, an amount equal to the
Percentage Interest evidenced by such Certificate times the excess, if any, of
(A) the then aggregate Uncertificated Balance of the REMIC I Regular Interests
over (B) the then aggregate Certificate Principal Balance of the Class A
Certificates, the Mezzanine Certificates and the Class P Certificates then
outstanding.

                  "Certificate Register": The register maintained pursuant to
Section 5.02.

                  "Class": Collectively, all of the Certificates bearing the
same class designation.

                  "Class A Certificates": Any Class A-1 Certificate, Class A-2
Certificate, Class A-3 Certificate or Class A-4 Certificate.

                  "Class A-1 Cap Contract": The cap contract between the Trustee
and the counterparty thereunder relating to the Class A-1 Certificates.

                  "Class A-1 Certificate": Any one of the Class A-1 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class A-2 Cap Contract": The cap contract between the Trustee
and the counterparty thereunder relating to the Class A-2 Certificates.

                  "Class A-2 Certificates": Any one of the Class A-2
Certificates executed, authenticated and delivered by the Trustee, substantially
in the form annexed hereto as Exhibit A-2 and evidencing a Regular Interest in
REMIC II for purposes of the REMIC Provisions.

                  "Class A-3 Certificate": Any one of the Class A-3 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-3 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class A-3 Scheduled Class Balance": With respect to any
Distribution Date, the scheduled Certificate Principal Balance shown in the
table set forth below:

                                       -7-

<PAGE>

<TABLE>
<CAPTION>

                             Class A-3 Scheduled                                               Class A-3 Scheduled
Distribution Date       Certificate Principal Balance            Distribution Date        Certificate Principal Balance
-----------------       -----------------------------            -----------------        -----------------------------
<S>                    <C>                                       <C>                    <C>
Initial Balance        $        89,868,000.00                    November 25, 2007      $        21,300,558.15
August 25, 2004                 88,833,022.35                    December 25, 2007               21,300,558.15
September 25, 2004              87,686,499.63                    January 25, 2008                21,300,558.15
October 25, 2004                86,429,275.10                    February 25, 2008               21,300,558.15
November 25, 2004               85,062,744.89                    March 25, 2008                  21,195,267.53
December 25, 2004               83,588,613.18                    April 25, 2008                  20,189,625.03
January 25, 2005                82,009,491.96                    May 25, 2008                    19,216,742.08
February 25, 2005               80,329,014.79                    June 25, 2008                   18,275,521.84
March 25, 2005                  78,583,337.48                    July 25, 2008                   17,364,904.94
April 25, 2005                  76,774,364.98                    August 25, 2008                 16,483,868.20
May 25, 2005                    74,903,764.31                    September 25, 2008              15,631,423.32
June 25, 2005                   72,973,357.36                    October 25, 2008                14,806,615.75
July 25, 2005                   70,985,081.10                    November 25, 2008               14,008,523.46
August 25, 2005                 68,940,983.23                    December 25, 2008               13,236,255.83
September 25, 2005              66,843,217.56                    January 25, 2009                12,488,952.61
October 25, 2005                64,694,038.98                    February 25, 2009               11,765,847.23
November 25, 2005               62,495,798.10                    March 25, 2009                  11,063,436.47
December 25, 2005               60,250,935.69                    April 25, 2009                  10,383,792.65
January 25, 2006                57,962,715.85                    May 25, 2009                    9,726,109.22
February 25, 2006               55,636,753.92                    June 25, 2009                   9,089,655.05
March 25, 2006                  53,360,482.66                    July 25, 2009                   8,473,723.93
April 25, 2006                  51,118,759.59                    August 25, 2009                 7,877,633.65
May 25, 2006                    48,911,054.10                    September 25, 2009              7,300,725.21
June 25, 2006                   46,736,843.78                    October 25, 2009                6,742,362.02
July 25, 2006                   44,595,614.36                    November 25, 2009               6,201,929.09
August 25, 2006                 42,486,859.54                    December 25, 2009               5,678,832.34
September 25, 2006              40,410,080.87                    January 25, 2010                5,172,497.82
October 25, 2006                38,364,787.64                    February 25, 2010               4,682,371.06
November 25, 2006               36,350,496.76                    March 25, 2010                  4,207,916.37
December 25, 2006               34,366,732.63                    April 25, 2010                  3,748,616.22
January 25, 2007                32,413,027.02                    May 25, 2010                    3,303,970.57
February 25, 2007               30,489,329.74                    June 25, 2010                   2,873,496.33
March 25, 2007                  28,594,763.84                    July 25, 2010                   2,456,726.73
April 25, 2007                  26,729,294.44                    August 25, 2010                 2,053,210.76
May 25, 2007                    24,892,057.57                    September 25, 2010              1,662,512.65
June 25, 2007                   23,082,620.73                    October 25, 2010                1,284,211.33
July 25, 2007                   21,300,558.15                    November 25, 2010               917,899.94
August 25, 2007                 21,300,558.15                    December 25, 2010               563,185.33
September 25, 2007              21,300,558.15                    January 25, 2010 and
                                                                 thereafter
October 25, 2007                21,300,558.15
</TABLE>

                  "Class A-4 Certificate": Any one of the Class A-4 Certificates
executed,

                                       -8-

<PAGE>

authenticated and delivered by the Trustee, substantially in the form annexed
hereto as Exhibit A-4 and evidencing a Regular Interest in REMIC II for purposes
of the REMIC Provisions.

                  "Class CE Certificate": Any one of the Class CE Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-12 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.

                  "Class CE Interest": An uncertificated interest in the Trust
Fund held by the Trustee on behalf of the Holders of the Class CE Certificates,
evidencing a Regular Interest in REMIC II for purposes of the REMIC Provisions.

                  "Class M-1 Certificate": Any one of the Class M-1 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-5 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-1 Principal Distribution Amount": The excess of (x)
the sum of (i) the aggregate Certificate Principal Balance of the Class A
Certificates (after taking into account the distribution of the Senior Principal
Distribution Amount on such Distribution Date) and (ii) the Certificate
Principal Balance of the Class M-1 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 72.50% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $2,951,910.21.

                  "Class M-2 Certificate": Any one of the Class M-2 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-6 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-2 Principal Distribution Amount": The excess of (x)
the sum of (i) the aggregate Certificate Principal Balance of the Class A
Certificates (after taking into account the distribution of the Senior Principal
Distribution Amount on such Distribution Date), (ii) the Certificate Principal
Balance of the Class M-1 Certificates (after taking into account the
distribution of the Class M-1 Principal Distribution Amount on such Distribution
Date) and (iii) the Certificate Principal Balance of the Class M-2 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 84.00% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$2,951,910.21.

                                       -9-

<PAGE>

                  "Class M-3 Certificate": Any one of the Class M-3 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-7 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-3 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date) and (iv) the Certificate Principal Balance of the Class M-3 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 87.50% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$2,951,910.21.

                  "Class M-4 Certificate": Any one of the Class M-4 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-8 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-4 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date) and (v) the Certificate Principal
Balance of the Class M-4 Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of (i) 90.00% and (ii) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during
the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) and (B)
the excess of the aggregate Stated Principal Balance of the Mortgage Loans as of
the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) over $2,951,910.21.

                  "Class M-5 Certificate": Any one of the Class M-5 Certificates
executed,

                                        -10-

<PAGE>

authenticated and delivered by the Trustee, substantially in the form annexed
hereto as Exhibit A-9 and evidencing a Regular Interest in REMIC II for purposes
of the REMIC Provisions.

                  "Class M-5 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date) and (vi) the Certificate Principal Balance of the Class M-5 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 93.00% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$2,951,910.21.

                  "Class M-6 Certificate": Any one of the Class M-6 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-10 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-6 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date) and (vii) the Certificate
Principal Balance of the Class M-6 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 96.00% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated

                                        -11-

<PAGE>

Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$2,951,910.21.

                  "Class M-7 Certificate": Any one of the Class M-7 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-11 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-7 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (vii) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date) and (viii) the Certificate Principal Balance of the Class M-7 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 98.00% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$2,951,910.21.

                  "Class M-7 Realized Loss Interest Amount": With respect to the
Class M-7 Certificates and any Distribution Date, an amount equal to the sum of
(i) interest accrued at the related Pass-Through Rate on the Allocated Realized
Loss Amount for such Certificates and (ii) the undistributed portion of any
Class M-7 Realized Loss Interest Amount from the prior Distribution Date
together with interest accrued on such undistributed portion for the most
recently ended Accrual Period at the related Pass-Through Rate applicable for
such Class for such Accrual Period.

                  "Class P Certificate": Any one of the Class P Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-13 and evidencing a Regular Interest in REMIC IV for
purposes of the REMIC Provisions.

                  "Class P Interest": An uncertificated interest in the Trust
Fund held by the Trustee

                                        -12-

<PAGE>

on behalf of the Holders of the Class P Certificates, evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

                  "Class R Certificate": Any one of the Class R Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-14 and evidencing the ownership of the Class R-I
Interest and the Class R-II Interest.

                  "Class R-X Certificate": The Class R-X Certificate executed,
authenticated and delivered by the Trustee, substantially in the form annexed
hereto as Exhibit A-15 and evidencing the ownership of the Class R-III Interest
and the Class R-IV Interest.

                  "Class R-I Interest": The uncertificated Residual Interest in
REMIC I.

                  "Class R-II Interest": The uncertificated Residual Interest in
REMIC II.

                  "Class R-III Interest": The uncertificated Residual Interest
in REMIC III.

                  "Class R-IV Interest": The uncertificated Residual Interest in
REMIC IV.

                  "Closing Date": July 29, 2004.

                  "Code": The Internal Revenue Code of 1986, as amended.

                  "Collection Account": The account or accounts created and
maintained, or caused to be created and maintained, by the Servicer pursuant to
Section 3.10(a), which shall be entitled "HomEq Servicing Corporation, as
Servicer for U.S. Bank National Association, as Trustee, in trust for the
registered holders of MASTR Asset Backed Securities Trust 2004-WMC2, Mortgage
Pass- Through Certificates." The Collection Account must be an Eligible Account.

                  "Commission":  The Securities and Exchange Commission.

                  "Compensating Interest": As defined in Section 3.24 hereof.

                  "Corporate Trust Office": The principal corporate trust office
of the Trustee at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office, at the date
of the execution of this instrument is located at 60 Livingston Avenue, St.
Paul, Minnesota 55107, Attention: Structured Finance/MASTR 2004-WMC2, or at such
other address as the Trustee may designate from time to time by notice to the
Certificateholders, the Depositor, the Servicer and the Originator.

                  "Corresponding Certificate": With respect to each REMIC I
Regular Interest set forth below, the corresponding Regular Certificate set
forth in the table below:

        REMIC I REGULAR INTEREST                  Regular Certificate
        ------------------------                  -------------------
                 I-LTA1                                Class A-1
                 I-LTA2                                Class A-2

                                        -13-

<PAGE>

                 I-LTA3                                Class A-3
                 I-LTA4                                Class A-4
                 I-LTM1                                Class M-1
                 I-LTM2                                Class M-2
                 I-LTM3                                Class M-3
                 I-LTM4                                Class M-4
                 I-LTM5                                Class M-5
                 I-LTM6                                Class M-6
                 I-LTM7                                Class M-7
                 I-LTP                                  Class P

                  "Credit Enhancement Percentage": For any Distribution Date,
the percentage equivalent of a fraction, the numerator of which is the sum of
the aggregate Certificate Principal Balances of the Mezzanine Certificates and
the Class CE Certificates, and the denominator of which is the aggregate Stated
Principal Balance of the Mortgage Loans, calculated prior to taking into account
distributions of principal on the Mortgage Loans and distribution of the Group I
Principal Distribution Amount, the Group II Principal Distribution Amount and
the Group III Principal Distribution Amount to the Certificates then entitled to
distributions of principal on such Distribution Date.

                  "Cumulative Loss Percentage": With respect to any Distribution
Date, the percentage equivalent of a fraction, the numerator of which is the
aggregate amount of Realized Losses incurred from the Cut-off Date to the last
day of the preceding calendar month and the denominator of which is the sum of
the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.

                  "Custodial Agreement": The custodial agreement, dated July 1,
2004, entered into among the Trustee, the Custodian and the Servicer in the form
of Exhibit K attached hereto.

                  "Custodian": Wells Fargo Bank, N.A., a national banking
association, or its successor in interest as Custodian pursuant to the Custodial
Agreement.

                  "Cut-off Date": With respect to each Original Mortgage Loan,
July 1, 2004. With respect to all Qualified Substitute Mortgage Loans, their
respective dates of substitution. References herein to the "Cut-off Date," when
used with respect to more than one Mortgage Loan, shall be to the respective
Cut-off Dates for such Mortgage Loans.

                  "Cut-off Date Principal Balance": With respect to any Mortgage
Loan, the unpaid principal balance thereof as of the Cut-off Date of such
Mortgage Loan (or as of the applicable date of substitution with respect to a
Qualified Substitute Mortgage Loan), after giving effect to scheduled payments
due on or before the Cut-off Date, whether or not received.

                  "Debt Service Reduction": With respect to any Mortgage Loan, a
reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of
competent jurisdiction in a proceeding under the Bankruptcy Code, except such a
reduction resulting from a Deficient Valuation.

                  "Deficient Valuation": With respect to any Mortgage Loan, a
valuation of the related

                                        -14-

<PAGE>

Mortgaged Property by a court of competent jurisdiction in an amount less than
the then outstanding principal balance of the Mortgage Loan, which valuation
results from a proceeding initiated under the Bankruptcy Code.

                  "Definitive Certificates": As defined in Section 5.01(b).

                  "Deleted Mortgage Loan": A Mortgage Loan replaced or to be
replaced by a Qualified Substitute Mortgage Loan.

                  "Delinquency Percentage": As of the last day of the related
Due Period, the percentage equivalent of a fraction, the numerator of which is
the aggregate Stated Principal Balance of all Mortgage Loans that, as of the
last day of the previous calendar month, are 60 or more days delinquent, are in
foreclosure, have been converted to REO Properties or have been discharged by
reason of bankruptcy, and the denominator of which is the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties as of the last day of
the previous calendar month.

                  "Depositor": Mortgage Asset Securitization Transactions, Inc.,
a Delaware corporation, or its successor in interest.

                  "Depository": The Depository Trust Company, or any successor
Depository hereafter named. The nominee of the initial Depository, for purposes
of registering those Certificates that are to be Book-Entry Certificates, is
CEDE & Co. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(3) of the Uniform Commercial Code of the State of New
York and a "clearing agency" registered pursuant to the provisions of Section
17A of the Securities Exchange Act of 1934, as amended.

                  "Depository Participant": A broker, dealer, bank or other
financial institution or other Person for whom from time to time a Depository
effects book-entry transfers and pledges of securities deposited with the
Depository.

                  "Determination Date": With respect to any Distribution Date,
the 15th day of the calendar month in which such Distribution Date occurs or, if
such 15th day is not a Business Day, the Business Day immediately preceding such
15th day.

                  "Directly Operate": With respect to any REO Property, the
furnishing or rendering of services to the tenants thereof, the management or
operation of such REO Property, the holding of such REO Property primarily for
sale to customers, the performance of any construction work thereon or any use
of such REO Property in a trade or business conducted by REMIC I other than
through an Independent Contractor; provided, however, that the Trustee (or the
Servicer on behalf of the Trustee) shall not be considered to Directly Operate
an REO Property solely because the Trustee (or the Servicer on behalf of the
Trustee) establishes rental terms, chooses tenants, enters into or renews
leases, deals with taxes and insurance, or makes decisions as to repairs or
capital expenditures with respect to such REO Property.

                  "Disqualified Organization": Any of the following: (i) the
United States, any State or political subdivision thereof, any possession of the
United States, or any agency or instrumentality

                                        -15-

<PAGE>

of any of the foregoing (other than an instrumentality which is a corporation if
all of its activities are subject to tax and, except for Freddie Mac, a majority
of its board of directors is not selected by such governmental unit), (ii) any
foreign government, any international organization, or any agency or
instrumentality of any of the foregoing, (iii) any organization (other than
certain farmers'cooperatives described in Section 521 of the Code) which is
exempt from the tax imposed by Chapter 1 of the Code (including the tax imposed
by Section 511 of the Code on unrelated business taxable income), (iv) rural
electric and telephone cooperatives described in Section 1381(a)(2)(C) of the
Code, (v) an "electing large partnership" and (vi) any other Person so
designated by the Trustee based upon an Opinion of Counsel that the holding of
an Ownership Interest in a Residual Certificate by such Person may cause any of
Trust REMIC or any Person having an Ownership Interest in any Class of
Certificates (other than such Person) to incur a liability for any federal tax
imposed under the Code that would not otherwise be imposed but for the Transfer
of an Ownership Interest in a Residual Certificate to such Person. The terms
"United States," "State" and "international organization" shall have the
meanings set forth in Section 7701 of the Code or successor provisions.

                  "Distribution Account": The trust account or accounts created
and maintained by the Trustee pursuant to Section 3.10(b) which shall be
entitled "U.S. Bank National Association, as Trustee, in trust for the
registered holders of MASTR Asset Backed Securities Trust 2004-WMC2, Mortgage
Pass-Through Certificates, Series 2004-WMC2." The Distribution Account must be
an Eligible Account.

                  "Distribution Date": The 25th day of any month, or if such
25th day is not a Business Day, the Business Day immediately following such 25th
day, commencing in August 2004.

                  "Due Date": With respect to each Distribution Date, the first
day of the calendar month in which such Distribution Date occurs, which is
generally the day of the month on which the Monthly Payment is due on a Mortgage
Loan, exclusive of any days of grace.

                  "Due Period": With respect to any Distribution Date, the
period commencing on the second day of the month immediately preceding the month
in which such Distribution Date occurs and ending on the related Due Date.

                  "Eligible Account": Any of (i) an account or accounts
maintained with a federal or state chartered depository institution or trust
company the short-term unsecured debt obligations of which (or, in the case of a
depository institution or trust company that is the principal subsidiary of a
holding company, the short-term unsecured debt obligations of such holding
company) are rated P-1 by Moody's, F-1 by Fitch or A-1+ by S&P (or comparable
ratings if Moody's, Fitch and S&P are not the Rating Agencies) at the time any
amounts are held on deposit therein, (ii) with respect to any Escrow Account, an
account or accounts the deposits in which are fully insured by the FDIC (to the
limits established by such corporation), the uninsured deposits in which account
are otherwise secured such that, as evidenced by an Opinion of Counsel delivered
to the NIMS Insurer, the Trustee and to each Rating Agency, the
Certificateholders will have a claim with respect to the funds in such account
or a perfected first priority security interest against such collateral (which
shall be limited to Permitted Investments) securing such funds that is superior
to claims of any other depositors or creditors of the depository institution
with which such account is maintained, (iii) a trust account or

                                      -16-

<PAGE>

accounts maintained with the trust department of a federal or state chartered
depository institution, national banking association or trust company acting in
its fiduciary capacity or (iv) an account otherwise acceptable to the NIMS
Insurer and to each Rating Agency without reduction or withdrawal of their then
current ratings of the Certificates as evidenced by a letter from each Rating
Agency to the Trustee and the NIMS Insurer. Eligible Accounts may bear interest.

                  "ERISA": The Employee Retirement Income Security Act of 1974,
as amended.

                  "Escrow Payments": The amounts constituting ground rents,
taxes, assessments, water rates, fire and hazard insurance premiums and other
payments required to be escrowed by the Mortgagor with the mortgagee pursuant to
any Mortgage Loan.

                  "Estate in Real Property": A fee simple estate in a parcel of
land.

                  "Excess Overcollateralized Amount": With respect to the Class
A Certificates and the Mezzanine Certificates and any Distribution Date, the
excess, if any, of (i) the Overcollateralized Amount for such Distribution Date,
assuming that 100% of the Principal Remittance Amount is applied as a principal
distribution on such Distribution Date over (ii) the Overcollateralization
Target Amount for such Distribution Date.

                  "Extra Principal Distribution Amount": With respect to any
Distribution Date, the lesser of (x) the Monthly Interest Distributable Amount
payable on the Class CE Certificates on such Distribution Date as reduced by
Realized Losses allocated thereto with respect to such Distribution Date
pursuant to Section 4.04 and (y) the Overcollateralization Deficiency Amount for
such Distribution Date.

                  "Extraordinary Trust Fund Expense": Any amounts reimbursable
to the Trustee, or any director, officer, employee or agent of the Trustee from
the Trust Fund pursuant to Section 8.05 or Section 10.01(c) and any amounts
payable from the Distribution Account in respect of taxes pursuant to Section
10.01(g)(iii).

                  "Fannie Mae": Fannie Mae, formally known as the Federal
National Mortgage Association, or any successor thereto.

                  "FDIC": Federal Deposit Insurance Corporation or any successor
thereto.

                  "Final Recovery Determination": With respect to any defaulted
Mortgage Loan or any REO Property (other than a Mortgage Loan or REO Property
purchased or repurchased by the Originator, the Seller, the Depositor or the
Servicer pursuant to or as contemplated by Section 2.03, Section 3.16(c) or
Section 9.01), a determination made by the Servicer that all Insurance Proceeds,
Liquidation Proceeds and other payments or recoveries which the Servicer, in its
reasonable good faith judgment, expects to be finally recoverable in respect
thereof have been so recovered. The Servicer shall maintain records, prepared by
a Servicing Officer, of each Final Recovery Determination made thereby.

                  "Fitch": Fitch Ratings, or its successor in interest.

                                      -17-

<PAGE>

                  "Fixed-Rate Mortgage Loan": Each of the Mortgage Loans
identified in the Mortgage Loan Schedule as having a Mortgage Rate that is fixed
for the entire term of the Mortgage Loan..

                  "Formula Rate": For any Distribution Date and the Class A
Certificates and the Mezzanine Certificates, the lesser of (i) One-Month LIBOR
plus the related Certificate Margin and (ii) the Maximum Cap Rate.

                  "Freddie Mac": Freddie Mac, formally known as the Federal Home
Loan Mortgage Corporation, or any successor thereto.

                  "Gross Margin": With respect to each Adjustable-Rate Mortgage
Loan, the fixed percentage set forth in the related Mortgage Note that is added
to the Index on each Adjustment Date in accordance with the terms of the related
Mortgage Note used to determine the Mortgage Rate for such Adjustable-Rate
Mortgage Loan.

                  "Group I Allocation Percentage": With respect to any
Distribution Date, the percentage equivalent of a fraction, the numerator of
which is the Group I Principal Remittance Amount for such Distribution Date, and
the denominator of which is the Principal Remittance Amount for such
Distribution Date.

                  "Group I Basic Principal Distribution Amount": With respect to
any Distribution Date, the excess of (i) the Group I Principal Remittance Amount
for such Distribution Date over (ii)(a) the Overcollateralization Release
Amount, if any, for such Distribution Date multiplied by (b) the Group I
Allocation Percentage.

                  "Group I Certificates": The Class A-1 Certificates.

                  "Group I Interest Remittance Amount": With respect to any
Distribution Date, that portion of the Available Funds for such Distribution
Date attributable to interest received or advanced with respect to the Group I
Mortgage Loans.

                  "Group I Mortgage Loan": A Mortgage Loan assigned to Loan
Group I with a principal balance that conforms to Fannie Mae and Freddie Mac
loan limits.

                  "Group I Principal Distribution Amount": With respect to any
Distribution Date, the sum of (i) the Group I Basic Principal Distribution
Amount for such Distribution Date and (ii)(a) the Extra Principal Distribution
Amount for such Distribution Date multiplied by (b) the Group I Allocation
Percentage.

                  "Group I Principal Remittance Amount": With respect to any
Distribution Date, the sum of (i) each scheduled payment of principal collected
or advanced on the Group I Mortgage Loans by the Servicer that were due during
the related Due Period, (ii) the principal portion of all partial and full
Principal Prepayments of the Group I Mortgage Loans applied by the Servicer
during the related Prepayment Period, (iii) the principal portion of all related
Net Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries received
during such Prepayment Period with respect to the Group I Mortgage Loans, (iv)
that portion of the Purchase Price, representing principal of any

                                      -18-

<PAGE>

repurchased Group I Mortgage Loan, deposited to the Collection Account during
such Prepayment Period, (v) the principal portion of any related Substitution
Adjustment Amounts deposited in the Collection Account during such Prepayment
Period with respect to the Group I Mortgage Loans and (vi) on the Distribution
Date on which the Trust Fund is to be terminated pursuant to Section 9.01, that
portion of the Termination Price, in respect of principal on the Group I
Mortgage Loans.

                  "Group I Senior Principal Distribution Amount": The excess of
(x) the Certificate Principal Balance of the Class A-1 Certificates immediately
prior to such Distribution Date over (y) the lesser of (A) the product of (i)
59.50% and (ii) the aggregate Stated Principal Balance of the Group I Mortgage
Loans as of the last day of the related Due Period (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Group I Mortgage Loans as of the last day of the
related Due Period (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) over $1,333,140.25.

                  "Group II Allocation Percentage": With respect to any
Distribution Date, the percentage equivalent of a fraction, the numerator of
which is the Group II Principal Remittance Amount for such Distribution Date,
and the denominator of which is the Principal Remittance Amount for such
Distribution Date.

                  "Group II Basic Principal Distribution Amount": With respect
to any Distribution Date, the excess of (i) the Group II Principal Remittance
Amount for such Distribution Date over (ii)(a) the Overcollateralization Release
Amount, if any, for such Distribution Date multiplied by (b) the Group II
Allocation Percentage.

                  "Group II Interest Remittance Amount": With respect to any
Distribution Date, that portion of the Available Funds for such Distribution
Date attributable to interest received or advanced with respect to the Group II
Mortgage Loans.

                  "Group II Mortgage Loan": A Mortgage Loan assigned to Loan
Group II with a principal balance that conforms to Fannie Mae and Freddie Mac
loan limits.

                  "Group II Principal Distribution Amount": With respect to any
Distribution Date, the sum of (i) the Group II Basic Principal Distribution
Amount for such Distribution Date and (ii)(a) the Extra Principal Distribution
Amount for such Distribution Date multiplied by (b) the Group II Allocation
Percentage.

                  "Group II Principal Remittance Amount": With respect to any
Distribution Date, the sum of (i) each scheduled payment of principal collected
or advanced on the Group II Mortgage Loans by the Servicer that were due during
the related Due Period, (ii) the principal portion of all partial and full
principal prepayments of the Group II Mortgage Loans applied by the Servicer
during the related Prepayment Period, (iii) the principal portion of all related
Net Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries received
during such Prepayment Period with respect to the Group II Mortgage Loans, (iv)
that portion of the Purchase Price, representing principal of any

                                      -19-

<PAGE>

repurchased Group II Mortgage Loan, deposited to the Collection Account during
such Prepayment Period, (v) the principal portion of any related Substitution
Adjustment Amounts deposited in the Collection Account during such Prepayment
Period with respect to the Group II Mortgage Loans and (vi) on the Distribution
Date on which the Trust Fund is to be terminated pursuant to Section 9.01, that
portion of the Termination Price, in respect of principal on the Group II
Mortgage Loans.

                  "Group II Senior Principal Distribution Amount": The excess of
(x) the Certificate Principal Balance of the Class A-2 Certificates immediately
prior to such Distribution Date over (y) the lesser of (A) the product of (i)
59.50% and (ii) the aggregate Stated Principal Balance of the Group II Mortgage
Loans as of the last day of the related Due Period (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Group II Mortgage Loans as of the last day of the
related Due Period (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) over $696,188.85.

                  "Group III Allocation Percentage": With respect to any
Distribution Date, the percentage equivalent of a fraction, the numerator of
which is the Group III Principal Remittance Amount for such Distribution Date,
and the denominator of which is the Principal Remittance Amount for such
Distribution Date.

                  "Group III Basic Principal Distribution Amount": With respect
to any Distribution Date, the excess of (i) the Group III Principal Remittance
Amount for such Distribution Date over (ii)(a) the Overcollateralization Release
Amount, if any, for such Distribution Date multiplied by (b) the Group III
Allocation Percentage.

                  "Group III Cap Contract": The cap contract between the Trustee
and the counterparty thereunder relating to the Group III Certificates.

                  "Group III Certificates": The Class A-3 Certificates and the
Class A-4 Certificates.

                  "Group III Interest Remittance Amount": With respect to any
Distribution Date, that portion of the Available Funds for such Distribution
Date attributable to interest received or advanced with respect to the Group III
Mortgage Loans.

                  "Group III Mortgage Loan": A Mortgage Loan assigned to Loan
Group III with a principal balance that may or may not conform to Fannie Mae and
Freddie Mac loan limits.

                  "Group III Principal Distribution Amount": With respect to any
Distribution Date, the sum of (i) the Group III Basic Principal Distribution
Amount for such Distribution Date and (ii)(a) the Extra Principal Distribution
Amount for such Distribution Date multiplied by (b) the Group III Allocation
Percentage.

                  "Group III Principal Remittance Amount": With respect to any
Distribution Date, the sum of (i) each scheduled payment of principal collected
or advanced on the Group III Mortgage

                                      -20-

<PAGE>

Loans by the Servicer that were due during the related Due Period, (ii) the
principal portion of all partial and full principal prepayments of the Group III
Mortgage Loans applied by the Servicer during the related Prepayment Period,
(iii) the principal portion of all related Net Liquidation Proceeds, Insurance
Proceeds and Subsequent Recoveries received during such Prepayment Period with
respect to the Group III Mortgage Loans, (iv) that portion of the Purchase
Price, representing principal of any repurchased Group III Mortgage Loan,
deposited to the Collection Account during such Prepayment Period, (v) the
principal portion of any related Substitution Adjustment Amounts deposited in
the Collection Account during such Prepayment Period with respect to the Group
III Mortgage Loans and (vi) on the Distribution Date on which the Trust Fund is
to be terminated pursuant to Section 9.01, that portion of the Termination
Price, in respect of principal on the Group III Mortgage Loans.

                  "Group III Senior Principal Distribution Amount": The excess
of (x) the aggregate Certificate Principal Balance of the Group III Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 59.50% and (ii) the aggregate Stated Principal Balance of the
Group III Mortgage Loans as of the last day of the related Due Period (after
giving effect to scheduled payments of principal due during the related Due
Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period) and (B) the excess of
the aggregate Stated Principal Balance of the Group III Mortgage Loans as of the
last day of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) over $922,581.11.

                  "Highest Priority": As of any date of determination, the Class
of Mezzanine Certificates then outstanding with a Certificate Principal Balance
greater than zero, with the highest priority for payments pursuant to Section
4.01, in the following order: Class M-1, Class M-2, Class M-3, Class M-4, Class
M-5, Class M-6 and Class M-7 Certificates.

                  "Indenture": An indenture relating to the issuance of notes
secured by the Class CE Certificates, the Class P Certificates and/or the Class
R Certificates (or any portion thereof) which may or may not be guaranteed by
the NIMS Insurer.

                  "Independent": When used with respect to any specified Person,
any such Person who (a) is in fact independent of the Servicer, the Depositor,
the Trustee, the Seller, the Originator and their respective Affiliates, (b)
does not have any direct financial interest in or any material indirect
financial interest in the Servicer, the Depositor, the Trustee, the Seller, the
Originator or any Affiliate thereof, and (c) is not connected with the Servicer,
the Depositor, the Trustee, the Seller, the Originator or any Affiliate thereof
as an officer, employee, promoter, underwriter, trustee, partner, director or
Person performing similar functions; provided, however, that a Person shall not
fail to be Independent of the Servicer, the Depositor the Trustee, the Seller,
the Originator or any Affiliate thereof merely because such Person is the
beneficial owner of 1% or less of any class of securities issued by the
Servicer, the Depositor, the Trustee, the Seller, the Originator or any
Affiliate thereof, as the case may be.

                  "Independent Contractor": Either (i) any Person (other than
the Servicer) that would be an "independent contractor" with respect to REMIC I
within the meaning of Section 856(d)(3)

                                      -21-

<PAGE>

of the Code if REMIC I were a real estate investment trust (except that the
ownership tests set forth in that section shall be considered to be met by any
Person that owns, directly or indirectly, 35% or more of any Class of
Certificates), so long as REMIC I does not receive or derive any income from
such Person and provided that the relationship between such Person and REMIC I
is at arm's length, all within the meaning of Treasury Regulation Section
1.856-4(b)(5), or (ii) any other Person (including the Servicer) if the Trustee
has received an Opinion of Counsel to the effect that the taking of any action
in respect of any REO Property by such Person, subject to any conditions therein
specified, that is otherwise herein contemplated to be taken by an Independent
Contractor will not cause such REO Property to cease to qualify as "foreclosure
property" within the meaning of Section 860G(a)(8) of the Code (determined
without regard to the exception applicable for purposes of Section 860D(a) of
the Code), or cause any income realized in respect of such REO Property to fail
to qualify as Rents from Real Property.

                  "Index": With respect to each Adjustable Rate Mortgage Loan
and with respect to each related Adjustment Date, the index as specified in the
related Mortgage Note.

                  "Insurance Proceeds": Proceeds of any title policy, hazard
policy or other insurance policy, covering a Mortgage Loan, to the extent such
proceeds are not to be applied to the restoration of the related Mortgaged
Property or released to the Mortgagor in accordance with the procedures that the
Servicer would follow in servicing mortgage loans held for its own account,
subject to the terms and conditions of the related Mortgage Note and Mortgage.

                  "Interest Determination Date": With respect to the Class A
Certificates, the Mezzanine Certificates, REMIC I Regular Interest I-LTA1, REMIC
I Regular Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular
Interest I-LTA4, REMIC I Regular Interest I- LTM1, REMIC I Regular Interest
I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC
I Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6 and REMIC I Regular
Interest I-LTM7 and any Accrual Period therefor, the second London Business Day
preceding the commencement of such Accrual Period.

                  "Late Collections": With respect to any Mortgage Loan and any
Due Period, all amounts received by the Servicer subsequent to the Determination
Date immediately following such Due Period, whether as late payments of Monthly
Payments or as Insurance Proceeds, Liquidation Proceeds or otherwise, which
represent late payments or collections of principal and/or interest due (without
regard to any acceleration of payments under the related Mortgage and Mortgage
Note) but delinquent for such Due Period and not previously recovered.

                  "Liquidated Mortgage Loan": As to any Distribution Date, any
Mortgage Loan in respect of which the Servicer has determined, in its reasonable
judgment, as of the end of the related Prepayment Period, that all Liquidation
Proceeds which it expects to recover with respect to the liquidation of the
Mortgage Loan or disposition of the related REO Property have been recovered.

                  "Liquidation Event": With respect to any Mortgage Loan, any of
the following events: (i) such Mortgage Loan is paid in full; (ii) a Final
Recovery Determination is made as to such Mortgage Loan; or (iii) such Mortgage
Loan is removed from REMIC I by reason of its being purchased, repurchased or
replaced pursuant to or as contemplated by Section 2.03, Section 3.16(c)

                                      -22-

<PAGE>

or Section 9.01. With respect to any REO Property, either of the following
events: (i) a Final Recovery Determination is made as to such REO Property; or
(ii) such REO Property is removed from REMIC I by reason of its being purchased
pursuant to Section 9.01.

                  "Liquidation Proceeds": The amount (other than amounts
received in respect of the rental of any REO Property prior to REO Disposition)
received by the Servicer in connection with (i) the taking of all or a part of a
Mortgaged Property by exercise of the power of eminent domain or condemnation,
(ii) the liquidation of a defaulted Mortgage Loan through a trustee's sale,
foreclosure sale or otherwise, or (iii) the purchase, repurchase or substitution
of a Mortgage Loan or an REO Property pursuant to or as contemplated by Section
2.03, Section 3.16(c), Section 3.23 or Section 9.01.

                  "Loan-to-Value Ratio": As of any date of determination, the
fraction, expressed as a percentage, the numerator of which is the principal
balance of the related Mortgage Loan at such date and the denominator of which
is the Value of the related Mortgaged Property.

                  "Loan Group": Any of Loan Group I, Loan Group II or Loan Group
III, as the context requires.

                  "Loan Group I": The group of Mortgage Loans identified in the
Mortgage Loan Schedule as having been assigned to Loan Group I.

                  "Loan Group II": The group of Mortgage Loans identified in the
Mortgage Loan Schedule as having been assigned to Loan Group II.

                  "Loan Group III": The group of Mortgage Loans identified in
the Mortgage Loan Schedule as having been assigned to Loan Group III.

                  "London Business Day": Any day on which banks in the City of
London and New York are open and conducting transactions in United States
dollars.

                  "Loss Severity Percentage": With respect to any Distribution
Date, the percentage equivalent of a fraction, the numerator of which is the
amount of Realized Losses incurred on a Mortgage Loan and the denominator of
which is the principal balance of such Mortgage Loan immediately prior to the
liquidation of such Mortgage Loan.

                  "Marker Rate": With respect to the Class CE Interest and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the REMIC I Remittance Rate for each of REMIC I Regular Interests I-LTA1,
I-LTA2, I-LTA3, I-LTA4, I-LTM1, I-LTM2, I-LTM3, I-LTM4, I-LTM5, I-LTM6, I-LTM7
and I-LTZZ, with the rate on each such REMIC I Regular Interest (other than
REMIC I Regular Interest I-LTZZ) subject to a cap equal to the lesser of (a)
One- Month LIBOR plus the related margin and (b) the related Net WAC Rate for
the purpose of this calculation and with the rate on REMIC I Regular Interest
I-LTZZ subject to a cap of zero for the purpose of this calculation; provided,
however, that solely for this purpose, calculations of the REMIC I Remittance
Rate and the related caps with respect to such REMIC I Regular Interests (other
than REMIC I Regular Interest I-LTZZ) shall be multiplied by a fraction, the
numerator of

                                      -23-

<PAGE>

which is the actual number of days elapsed in the related Accrual Period and the
denominator of which is 30.

                  "Maximum Cap Rate": For any Distribution Date with respect to
the Class A Certificates and the Mezzanine Certificates, a per annum rate equal
to the weighted average of the Adjusted Net Maximum Mortgage Rates of the
Mortgage Loans multiplied by a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days elapsed in the related Accrual
Period.

                  "Maximum I-LTZZ Uncertificated Interest Deferral Amount": With
respect to any Distribution Date, the excess of (i) accrued interest at the
REMIC I Remittance Rate applicable to REMIC I Regular Interest I-LTZZ for such
Distribution Date on a balance equal to the Uncertificated Balance of REMIC I
Regular Interest I-LTZZ minus the REMIC I Overcollateralization Amount, in each
case for such Distribution Date, over (ii) Uncertificated Interest on REMIC I
Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I Regular
Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular Interest
I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC
I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular
Interest I-LTM6 and REMIC I Regular Interest I-LTM7 for such Distribution Date,
with the rate on each such REMIC I Regular Interest subject to a cap equal to
the lesser of (a) One- Month LIBOR plus the related Certificate Margin and (b)
the related Net WAC Rate; provided, however, each cap shall be multiplied by a
fraction, the numerator of which is the actual number of days elapsed in the
related Accrual Period and the denominator of which is 30.

                  "Maximum Mortgage Rate": With respect to each Adjustable-Rate
Mortgage Loan, the percentage set forth in the related Mortgage Note as the
maximum Mortgage Rate thereunder.

                  "MERS": Mortgage Electronic Registration Systems, Inc., a
corporation organized and existing under the laws of the State of Delaware, or
any successor thereto.

                  "MERS(R) System": The system of recording transfers of
Mortgages electronically maintained by MERS.

                  "MIN": The Mortgage Identification Number for Mortgage Loans
registered with MERS on the MERS(R) System.

                  "MOM Loan": With respect to any Mortgage Loan, MERS acting as
the mortgagee of such Mortgage Loan, solely as nominee for the originator of
such Mortgage Loan and its successors and assigns, at the origination thereof.

                  "Mezzanine Cap Contract": The cap contract between the Trustee
and the counterparty thereunder relating to the Mezzanine Certificates.

                  "Mezzanine Certificate": Any Class M-1 Certificate, Class M-2
Certificate, Class M- 3 Certificate, Class M-4 Certificates, Class M-5
Certificates, Class M-6 Certificate or Class M-7 Certificates.

                                      -24-

<PAGE>

                  "Minimum Mortgage Rate": With respect to each Adjustable-Rate
Mortgage Loan, the percentage set forth in the related Mortgage Note as the
minimum Mortgage Rate thereunder.

                  "Monthly Interest Distributable Amount": With respect to the
Class A Certificates, the Mezzanine Certificates and the Class CE Certificates
and any Distribution Date, the amount of interest accrued during the related
Accrual Period at the related Pass-Through Rate on the Certificate Principal
Balance (or Notional Amount in the case of the Class CE Certificates) of such
Class immediately prior to such Distribution Date, reduced by any Prepayment
Interest Shortfalls (to the extent not covered by payments made by the Servicer
pursuant to Section 3.24) and Relief Act Interest Shortfalls (allocated to such
Certificate based on its respective entitlements to interest irrespective of any
Prepayment Interest Shortfalls and Relief Act Interest Shortfalls for such
Distribution Date).

                  "Monthly Payment": With respect to any Mortgage Loan, the
scheduled monthly payment of principal and interest on such Mortgage Loan which
is payable by the related Mortgagor from time to time under the related Mortgage
Note, determined: (a) after giving effect to (i) any Deficient Valuation and/or
Debt Service Reduction with respect to such Mortgage Loan and (ii) any reduction
in the amount of interest collectible from the related Mortgagor pursuant to the
Relief Act; (b) without giving effect to any extension granted or agreed to by
the Servicer pursuant to Section 3.07 and (c) on the assumption that all other
amounts, if any, due under such Mortgage Loan are paid when due.

                  "Monthly Statement": The statement prepared by the Trustee
pursuant to Section 4.02.

                  "Moody's": Moody's Investors Service, Inc. or its successor in
interest.

                  "Mortgage": The mortgage, deed of trust or other instrument
creating a first or second lien on, or first or second priority security
interest in, a Mortgaged Property securing a Mortgage Note.

                  "Mortgage File": The mortgage documents listed in Section 2.01
pertaining to a particular Mortgage Loan and any additional documents required
to be added to the Mortgage File pursuant to this Agreement.

                  "Mortgage Loan": Each mortgage loan transferred and assigned
to the Trustee and delivered to the Trustee pursuant to Section 2.01 or Section
2.03(b) of this Agreement, as held from time to time as a part of the Trust, the
Mortgage Loans so held being identified in the Mortgage Loan Schedule.

                  "Mortgage Loan Purchase Agreement": The agreement among the
Seller, the Originator and the Depositor, regarding the sale of the Mortgage
Loans by the Seller to the Depositor, substantially in the form of Exhibit D
annexed hereto.

                  "Mortgage Loan Schedule": As of any date, the list of Mortgage
Loans included in REMIC I on such date, attached hereto as Schedule 1. The
Mortgage Loan Schedule shall set forth

                                      -25-

<PAGE>

the following information with respect to each Mortgage Loan:

                  (1) the Mortgage Loan identifying number;

                  (2) [reserved];

                  (3) the state and zip code of the Mortgaged Property;

                  (4) a code indicating whether the Mortgaged Property was
         represented by the borrower, at the time of origination, as being
         owner-occupied;

                  (5) the type of Residential Dwelling constituting the
         Mortgaged Property;

                  (6) the original months to maturity;

                  (7) the stated remaining months to maturity from the Cut-off
         Date based on the original amortization schedule;

                  (8) the Loan-to-Value Ratio at origination;

                  (9) the Mortgage Rate in effect immediately following the
         Cut-off Date;

                  (10) the date on which the first Monthly Payment was due on
         the Mortgage Loan;

                  (11) the stated maturity date;

                  (12) the amount of the Monthly Payment at origination;

                  (13) the amount of the Monthly Payment due on the first Due
         Date after the Cut- off Date;

                  (14) the last Due Date on which a Monthly Payment was actually
         applied to the unpaid Stated Principal Balance;

                  (15) the original principal amount of the Mortgage Loan;

                  (16) the Stated Principal Balance of the Mortgage Loan as of
         the close of business on the Cut-off Date;

                  (17) a code indicating the purpose of the Mortgage Loan (I.E.,
         purchase financing, rate/term refinancing, cash-out refinancing);

                  (18) the Mortgage Rate at origination;

                  (19) a code indicating the documentation program (I.E., full
         documentation, limited documentation, stated income documentation);

                                      -26-

<PAGE>

                  (20) the risk grade;

                  (21) the Value of the Mortgaged Property;

                  (22) the sale price of the Mortgaged Property, if applicable;

                  (23) the actual unpaid principal balance of the Mortgage Loan
         as of the Cut-off Date;

                  (24) the type and term of the related Prepayment Charge;

                  (25) the rounding code;

                  (26) the program code;

                  (27) a code indicating the lien priority for Mortgage Loans;

                  (28) with respect to each Adjustable Rate Mortgage Loan, the
         Minimum Mortgage Rate, the Maximum Mortgage Rate, the Gross Margin, the
         next Adjustment Date and the
         Periodic Rate Cap;

                  (29) the credit score ("FICO") of such Mortgage Loan; and

                  (30) the total amount of points and fees charged such Mortgage
Loan.

                  The Mortgage Loan Schedule shall set forth the following
information with respect to the Mortgage Loans in the aggregate and for each
Loan Group as of the Cut-off Date: (1) the number of Mortgage Loans (separately
identifying the number of Fixed-Rate Mortgage Loans and the number of
Adjustable-Rate Mortgage Loans); (2) the current Principal Balance of the
Mortgage Loans; (3) the weighted average Mortgage Rate of the Mortgage Loans and
(4) the weighted average maturity of the Mortgage Loans. The Mortgage Loan
Schedule shall be amended from time to time by the Depositor in accordance with
the provisions of this Agreement. With respect to any Qualified Substitute
Mortgage Loan, the Cut-off Date shall refer to the related Cut-off Date for such
Mortgage Loan, determined in accordance with the definition of Cut-off Date
herein.

                  "Mortgage Note": The original executed note or other evidence
of the indebtedness of a Mortgagor under a Mortgage Loan.

                  "Mortgage Pool": The pool of Mortgage Loans, identified on
Schedule 1 and existing from time to time thereafter, and any REO Properties
acquired in respect thereof.

                  "Mortgage Rate": With respect to each Mortgage Loan, the
annual rate at which interest accrues on such Mortgage Loan from time to time in
accordance with the provisions of the related Mortgage Note, which rate with
respect to the Adjustable-Rate Mortgage Loans, (A) as of any date of
determination until the first Adjustment Date following the Cut-off Date shall
be the rate set forth in the Mortgage Loan Schedule as the Mortgage Rate in
effect immediately following the

                                      -27-

<PAGE>

Cut-off Date and (B) as of any date of determination thereafter shall be the
rate as adjusted on the most recent Adjustment Date equal to the sum, rounded to
the nearest or next highest 0.125% as provided in the Mortgage Note, of the
Index, as most recently available as of a date prior to the Adjustment Date as
set forth in the related Mortgage Note, plus the related Gross Margin; provided
that the Mortgage Rate on such Adjustable-Rate Mortgage Loan on any Adjustment
Date shall never be more than the lesser of (i) the sum of the Mortgage Rate in
effect immediately prior to the Adjustment Date plus the related Periodic Rate
Cap, if any, and (ii) the related Maximum Mortgage Rate, and shall never be less
than the greater of (i) the Mortgage Rate in effect immediately prior to the
Adjustment Date less the Periodic Rate Cap, if any, and (ii) the related Minimum
Mortgage Rate. With respect to each Mortgage Loan that becomes an REO Property,
as of any date of determination, the annual rate determined in accordance with
the immediately preceding sentence as of the date such Mortgage Loan became an
REO Property.

                  "Mortgaged Property": The underlying property securing a
Mortgage Loan, including any REO Property, consisting of an Estate in Real
Property improved by a Residential Dwelling.

                  "Mortgagor": The obligor on a Mortgage Note.

                  "Net Liquidation Proceeds": With respect to any Liquidated
Mortgage Loan or any other disposition of related Mortgaged Property (including
REO Property) the related Liquidation Proceeds and Insurance Proceeds net of
Advances, Servicing Advances, Servicing Fees and any other accrued and unpaid
servicing fees received and retained in connection with the liquidation of such
Mortgage Loan or Mortgaged Property.

                  "Net Monthly Excess Cashflow": With respect to each
Distribution Date, the sum of (a) any Overcollateralization Release Amount for
such Distribution Date and (b) the excess of (x) Available Funds for such
Distribution Date over (y) the sum for such Distribution Date of (A) the Monthly
Interest Distributable Amounts for the Class A Certificates and the Mezzanine
Certificates, (B) the Unpaid Interest Shortfall Amounts for the Class A
Certificates and (C) the Principal Remittance Amount.

                  "Net Mortgage Rate": With respect to any Mortgage Loan (or the
related REO Property) as of any date of determination, a per annum rate of
interest equal to the then applicable Mortgage Rate for such Mortgage Loan minus
the Servicing Fee Rate.

                  "Net WAC Rate": For any Distribution Date with respect to the
Class A-1 Certificates, a per annum rate equal to the product of (x) the
weighted average of the Adjusted Net Mortgage Rates of the Group I Mortgage
Loans, weighted based on their outstanding Principal Balances as of the first
day of the calendar month preceding the month in which the Distribution Date
occurs and (y) a fraction, the numerator of which is 30 and the denominator of
which is the actual number of days elapsed in the related Accrual Period. For
federal income tax purposes, the economic equivalent of such rate shall be
expressed as the weighted average of the REMIC I Remittance Rate on REMIC I
Regular Interest I-LT1GRP, weighted on the basis of the Uncertificated Balance
of such REMIC I Regular Interest.

                  For any Distribution Date with respect to the Class A-2
Certificates, a per annum rate

                                      -28-

<PAGE>

equal to the product of (x) the weighted average of the Adjusted Net Mortgage
Rates of the Group II Mortgage Loans, weighted based on their outstanding
Principal Balances as of the first day of the calendar month preceding the month
in which the Distribution Date occurs and (y) a fraction, the numerator of which
is 30 and the denominator of which is the actual number of days elapsed in the
related Accrual Period. For federal income tax purposes, the economic equivalent
of such rate shall be expressed as the weighted average of the REMIC I
Remittance Rate on REMIC I Regular Interest I-LT2GRP, weighted on the basis of
the Uncertificated Balance of such REMIC I Regular Interest.

                  For any Distribution Date with respect to the Group III
Certificates, a per annum rate equal to the product of (x) the weighted average
of the Adjusted Net Mortgage Rates of the Group III Mortgage Loans, weighted
based on their outstanding Principal Balances as of the first day of the
calendar month preceding the month in which the Distribution Date occurs and (y)
a fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period. For federal income
tax purposes, the economic equivalent of such rate shall be expressed as the
weighted average of the REMIC I Remittance Rate on REMIC I Regular Interest
I-LT3GRP, weighted on the basis of the Uncertificated Balance of such REMIC I
Regular Interest.

                  For any Distribution Date with respect to the Mezzanine
Certificates, a per annum rate equal to the product of (x) the weighted average
of the Adjusted Net Mortgage Rates of the Group I Mortgage Loans, the Group II
Mortgage Loans and the Group III Mortgage Loans, weighted in proportion to the
results of subtracting from the aggregate Stated Principal Balance of each Loan
Group the Certificate Principal Balance of the related Class of Class A
Certificates and (y) for each Class of Mezzanine Certificates, a fraction, the
numerator of which is 30 and the denominator of which is the actual number of
days elapsed in the related Accrual Period. For federal income tax purposes, the
economic equivalent of such rate shall be expressed as the weighted average of
the REMIC I Remittance Rates on (a) REMIC I Regular Interest I-LT1SUB, subject
to a cap and a floor equal to the Adjusted Net Mortgage Rates of the Group I
Mortgage Loans, (b) REMIC I Regular Interest I-LT2SUB, subject to a cap and a
floor equal to the Adjusted Net Mortgage Rates of the Group II Mortgage Loans
and (c) REMIC I Regular Interest I-LT3SUB, subject to a cap and a floor equal to
the Adjusted Net Mortgage Rates of the Group III Mortgage Loans, weighted on the
basis of the Uncertificated Balance of each such REMIC I Regular Interest.

                  "Net WAC Rate Carryover Amount": With respect to the Class A
Certificates and the Mezzanine Certificates and any Distribution Date, the sum
of (A) the positive excess of (i) the amount of interest accrued on such Class
of Certificates on such Distribution Date calculated at the related Formula
Rate, over (ii) the amount of interest accrued on such Class of Certificates at
the Net WAC Rate for such Distribution Date and (B) the Net WAC Rate Carryover
Amount for the previous Distribution Date not previously paid, together with
interest thereon at a rate equal to the Formula Rate for such Class of
Certificates for such Distribution Date and for such Accrual Period.

                  "Net WAC Rate Carryover Reserve Account": The account
established and maintained pursuant to Section 4.07.

                  "New Lease": Any lease of REO Property entered into on behalf
of REMIC I, including any lease renewed or extended on behalf of REMIC I, if
REMIC I has the right to renegotiate the terms of such lease.

                                      -29-

<PAGE>

                  "NIMS Insurer": Any insurer that is guaranteeing certain
payments under notes secured by collateral which includes all or a portion of
the Class CE Certificates, the Class P Certificates and/or the Class R
Certificates.

                  "Nonrecoverable Advance": Any Advance previously made or
proposed to be made in respect of a Mortgage Loan or REO Property that, in the
good faith business judgment of the Servicer, will not or, in the case of a
proposed Advance, would not, be ultimately recoverable from related Late
Collections, Insurance Proceeds or Liquidation Proceeds on such Mortgage Loan or
REO Property as provided herein.

                  "Nonrecoverable Servicing Advance": Any Servicing Advance
previously made or proposed to be made in respect of a Mortgage Loan or REO
Property that, in the good faith business judgment of the Servicer, will not or,
in the case of a proposed Servicing Advance, would not, be ultimately
recoverable from related Late Collections, Insurance Proceeds or Liquidation
Proceeds on such Mortgage Loan or REO Property as provided herein.

                  "Non-United States Person": Any Person other than a United
States Person.

                  "Notional Amount": With respect to the Class CE Interest and
any Distribution Date, the Uncertificated Balance of the REMIC I Regular
Interests (other than REMIC I Regular Interest I-LTP) for such Distribution
Date.

                  "Officer's Certificate": A certificate signed by the Chairman
of the Board, the Vice Chairman of the Board, the President or a vice president
(however denominated), and by the Treasurer, the Secretary, or one of the
assistant treasurers or assistant secretaries of the Servicer, the Originator,
the Seller or the Depositor, as applicable.

                  "One-Month LIBOR": With respect to the Class A Certificates,
the Mezzanine Certificates, REMIC I Regular Interest I-LTA1, REMIC I Regular
Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular Interest
I-LTA4, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC
I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular
Interest I-LTM5, REMIC I Regular Interest I-LTM6 and REMIC I Regular Interest
I-LTM7 and any Accrual Period therefor, the rate determined by the Trustee on
the related Interest Determination Date on the basis of the offered rate for
one-month U.S. dollar deposits, as such rate appears on Telerate Page 3750 as of
11:00 a.m. (London time) on such Interest Determination Date; provided that if
such rate does not appear on Telerate Page 3750, the rate for such date will be
determined on the basis of the offered rates of the Reference Banks for
one-month U.S. dollar deposits, as of 11:00 a.m. (London time) on such Interest
Determination Date. In such event, the Trustee will request the principal London
office of each of the Reference Banks to provide a quotation of its rate. If on
such Interest Determination Date, two or more Reference Banks provide such
offered quotations, One-Month LIBOR for the related Accrual Period shall be the
arithmetic mean of such offered quotations (rounded upwards if necessary to the
nearest whole multiple of 1/16%). If on such Interest Determination Date, fewer
than two Reference Banks provide such offered quotations, One-Month LIBOR for
the related Accrual Period shall be the higher of (i) LIBOR as determined on the
previous Interest Determination Date and (ii) the Reserve Interest Rate.
Notwithstanding the foregoing, if, under the priorities described above, LIBOR
for an Interest

                                      -30-

<PAGE>

Determination Date would be based on LIBOR for the previous Interest
Determination Date for the third consecutive Interest Determination Date, the
Trustee shall select, after consultation with the NIMS Insurer, an alternative
comparable index (over which the Trustee has no control), used for determining
one-month Eurodollar lending rates that is calculated and published (or
otherwise made available) by an independent party.

                  "Opinion of Counsel": A written opinion of counsel, who may,
without limitation, be salaried counsel for the Depositor, the Seller or the
Servicer, acceptable to the Trustee, except that any opinion of counsel relating
to (a) the qualification of any Trust REMIC as a REMIC or (b) compliance with
the REMIC Provisions must be an opinion of Independent counsel.

                  "Original Mortgage Loan": Any of the Mortgage Loans included
in REMIC I as of the Closing Date.

                  "Originator": WMC Mortgage Corp., a California corporation.

                  "Overcollateralization Deficiency Amount": With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount on such Distribution Date (after
giving effect to distributions in respect of the Group I Basic Principal
Distribution Amount, the Group II Basic Principal Distribution Amount and the
Group III Basic Principal Distribution Amount on such Distribution Date).

                  "Overcollateralization Release Amount": With respect to any
Distribution Date, the lesser of (x) the Principal Remittance Amount for such
Distribution Date and (y) the Excess Overcollateralized Amount.

                  "Overcollateralization Target Amount": With respect to any
Distribution Date, (i) approximately 1.00% of the Cut-off Date Principal Balance
of the Mortgage Loans, (ii) on or after the Stepdown Date provided a Trigger
Event is not in effect, the greater of (x) approximately 2.00% of the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during
the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) and (y)
$2,951,910.21, or (iii) on or after the Stepdown Date if a Trigger Event is in
effect, the Overcollateralization Target Amount for the immediately preceding
Distribution Date. Notwithstanding the foregoing, on and after any Distribution
Date following the reduction of the aggregate Certificate Principal Balance of
the Class A Certificates, the Mezzanine Certificates to zero, the
Overcollateralization Target Amount shall be zero.

                  "Overcollateralized Amount": For any Distribution Date, the
amount equal to (i) the aggregate Principal Balance of the Mortgage Loans as of
the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) as of the related Determination Date minus (ii) the
sum of the aggregate Certificate Principal Balance of the Class A Certificates,
the Mezzanine Certificates and the Class P Certificates as of such Distribution
Date after giving effect to distributions to be made on such Distribution Date.

                                      -31-

<PAGE>

                  "Ownership Interest": As to any Certificate, any ownership or
security interest in such Certificate, including any interest in such
Certificate as the Holder thereof and any other interest therein, whether direct
or indirect, legal or beneficial, as owner or as pledgee.

                  "Pass-Through Rate": With respect to the Class A Certificates
and the Mezzanine Certificates and any Distribution Date, a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.

                  With respect to the Class CE Interest and any Distribution
Date, a rate per annum equal to the percentage equivalent of a fraction, the
numerator of which is the sum of the amounts calculated pursuant to clauses (A)
through (N) below, and the denominator of which is the aggregate Uncertificated
Balance of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTA1, I-
REMIC I Regular Interest LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular
Interest I- LTA4, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC
I Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular
Interest I-LTM7 and REMIC I Regular Interest I-LTZZ. For purposes of calculating
the Pass-Through Rate for the Class CE Interest, the numerator is equal to the
sum of the following components:

                  (A) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTAA minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTAA;

                  (B) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTA1 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTA1;

                  (C) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTA2 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTA2;

                  (D) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTA3 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTA3;

                  (E) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTA4 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTA4;

                  (F) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM1 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM1;

                  (G) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM2 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I

                                      -32-

<PAGE>

         Regular Interest I-LTM2;

                  (H) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM3 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM3;

                  (I) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM4 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM4;

                  (J) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM5 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM5;

                  (K) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM6 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM6;

                  (L) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM7 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM7;

                  (M) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTZZ minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTZZ; and

                  (N) 100% of the interest on REMIC I Regular Interest I-LTP.

                  With respect to the Class CE Certificates, 100% of the
interest distributable to the Class CE Interest, expressed as a per annum rate.

                  "Percentage Interest": With respect to any Class of
Certificates (other than the Residual Certificates), the undivided percentage
ownership in such Class evidenced by such Certificate, expressed as a
percentage, the numerator of which is the initial Certificate Principal Balance
or Notional Amount represented by such Certificate and the denominator of which
is the aggregate initial Certificate Principal Balance or Notional Amount of all
of the Certificates of such Class. The Class A Certificates and the Mezzanine
Certificates are issuable only in minimum Percentage Interests corresponding to
minimum initial Certificate Principal Balances of $25,000 and integral multiples
of $1.00 in excess thereof. The Class P Certificates are issuable only in
Percentage Interests corresponding to initial Certificate Principal Balances of
$20 and integral multiples thereof. The Class CE Certificates are issuable only
in minimum Percentage Interests corresponding to minimum initial Certificate
Principal Balances of $10,000 and integral multiples of $1.00 in excess thereof;
provided, however, that a single Certificate of each such Class of Certificates
may be issued having a Percentage Interest corresponding to the remainder of the
aggregate initial Certificate Principal Balance or Notional Amount of such Class
or to an otherwise authorized denomination for such Class plus such remainder.
With respect to any Residual Certificate, the undivided percentage

                                      -33-

<PAGE>

ownership in such Class evidenced by such Certificate, as set forth on the face
of such Certificate. The Residual Certificates are issuable in Percentage
Interests of 20% and multiples thereof.

                  "Periodic Rate Cap": With respect to each Adjustable-Rate
Mortgage Loan and any Adjustment Date therefor, the fixed percentage set forth
in the related Mortgage Note, which is the maximum amount by which the Mortgage
Rate for such Mortgage Loan may increase or decrease (without regard to the
Maximum Mortgage Rate or the Minimum Mortgage Rate) on such Adjustment Date
(other than the first Adjustment Date) from the Mortgage Rate in effect
immediately prior to such Adjustment Date.

                  "Permitted Investments": Any one or more of the following
obligations or securities acquired at a purchase price of not greater than par,
regardless of whether issued or managed by the Depositor, the Servicer, the NIMS
Insurer, the Trustee or any of their respective Affiliates or for which an
Affiliate of the NIMS Insurer or the Trustee serves as an advisor:

                  (i) direct obligations of, or obligations fully guaranteed as
         to timely payment of principal and interest by, the United States or
         any agency or instrumentality thereof, provided such obligations are
         backed by the full faith and credit of the United States;

                  (ii) (A) demand and time deposits in, certificates of deposit
         of, bankers' acceptances issued by or federal funds sold by any
         depository institution or trust company (including the Trustee or its
         agent acting in their respective commercial capacities) incorporated
         under the laws of the United States of America or any state thereof and
         subject to supervision and examination by federal and/or state
         authorities, so long as, at the time of such investment or contractual
         commitment providing for such investment, such depository institution
         or trust company (or, if the only Rating Agency is S&P, in the case of
         the principal depository institution in a depository institution
         holding company, debt obligations of the depository institution holding
         company) or its ultimate parent has a short-term uninsured debt rating
         in the highest available rating of Moody's, Fitch and S&P and provided
         that each such investment has an original maturity of no more than 365
         days; and provided further that, if the only Rating Agency is S&P and
         if the depository or trust company is a principal subsidiary of a bank
         holding company and the debt obligations of such subsidiary are not
         separately rated, the applicable rating shall be that of the bank
         holding company; and, provided further that, if the original maturity
         of such short-term obligations of a domestic branch of a foreign
         depository institution or trust company shall exceed 30 days, the
         short- term rating of such institution shall be "A-1+" in the case of
         S&P if S&P is the Rating Agency; and (B) any other demand or time
         deposit or deposit which is fully insured by the FDIC;

                  (iii) repurchase obligations with a term not to exceed 30 days
         with respect to any security described in clause (i) above and entered
         into with a depository institution or trust company (acting as
         principal) rated "A-1+" or higher by S&P, "F-1+" or higher by Fitch and
         "A2" or higher by Moody's, provided, however, that collateral
         transferred pursuant to such repurchase obligation must be of the type
         described in clause (i) above and must (A) be valued daily at current
         market prices plus accrued interest, (B) pursuant to such valuation, be
         equal, at all times, to 105% of the cash transferred by the Trustee in
         exchange for such

                                      -34-

<PAGE>

         collateral and (C) be delivered to the Trustee or, if the Trustee is
         supplying the collateral, an agent for the Trustee, in such a manner as
         to accomplish perfection of a security interest in the collateral by
         possession of certificated securities;

                  (iv) securities bearing interest or sold at a discount that
         are issued by any corporation incorporated under the laws of the United
         States of America or any State thereof and that are rated by a Rating
         Agency in its highest long-term unsecured rating category at the time
         of such investment or contractual commitment providing for such
         investment;

                  (v) commercial paper (including both non-interest-bearing
         discount obligations and interest-bearing obligations payable on demand
         or on a specified date not more than 30 days after the date of
         acquisition thereof) that is rated by a Rating Agency in its highest
         short- term unsecured debt rating available at the time of such
         investment;

                  (vi) units of money market funds, including those managed or
         advised by the Trustee or its Affiliates, that have been rated "AAA" by
         S&P, "AAA" by Fitch (if so rated by Fitch) and "Aaa" by Moody's; and

                  (vii) if previously confirmed in writing to the Trustee and
         consented to by the NIMS Insurer, any other demand, money market or
         time deposit, or any other obligation, security or investment, as may
         be acceptable to the Rating Agencies in writing as a permitted
         investment of funds backing securities having ratings equivalent to its
         highest initial rating of the Class A Certificates;

provided, that no instrument described hereunder shall evidence either the right
to receive (a) only interest with respect to the obligations underlying such
instrument or (b) both principal and interest payments derived from obligations
underlying such instrument and the interest and principal payments with respect
to such instrument provide a yield to maturity at par greater than 120% of the
yield to maturity at par of the underlying obligations.

                  "Permitted Transferee": Any Transferee of a Residual
Certificate other than a Disqualified Organization or Non-United States Person.

                  "Person": Any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

                  "Plan": Any employee benefit plan or certain other retirement
plans and arrangements, including individual retirement accounts and annuities,
Keogh plans and bank collective investment funds and insurance company general
or separate accounts in which such plans, accounts or arrangements are invested,
that are subject to ERISA or Section 4975 of the Code.

                  "Prepayment Assumption": As defined in the Prospectus
Supplement.

                  "Prepayment Charge": With respect to any Prepayment Period,
any prepayment premium, fee, penalty or charge payable by a Mortgagor in
connection with any full or partial

                                      -35-

<PAGE>

Principal Prepayment on a Mortgage Loan pursuant to the terms of the related
Mortgage Note (other than any Servicer Prepayment Charge Payment Amount).

                  "Prepayment Charge Schedule": As of any date, the list of
Prepayment Charges on the Mortgage Loans included in REMIC I on such date,
attached hereto as Schedule 2 (including the Prepayment Charge Summary attached
thereto). The Prepayment Charge Schedule shall set forth the following
information with respect to each related Mortgage Loan:

                  (i) the Mortgage Loan identifying number;

                  (ii) a code indicating the type of Prepayment Charge;

                  (iii) the state of origination of the related Mortgage Loan;

                  (iv) the date on which the first monthly payment was due on
         the related Mortgage Loan;

                  (v) the term of the related Mortgage Loan; and

                  (vi) the Stated Principal Balance of the related Mortgage Loan
         as of the Cut-off Date.

                  The Prepayment Charge Schedule shall be amended from time to
time by the Depositor in accordance with the provisions of this Agreement and a
copy of such amended Prepayment Charge Schedule shall be furnished by the
Depositor to the NIMS Insurer.

                  "Prepayment Interest Excess": With respect to any Distribution
Date, for each Mortgage Loan that was the subject of a Principal Prepayment in
full during the portion of the related Prepayment Period occurring between the
first day and the fifteenth day of the calendar month in which such Distribution
Date occurs, an amount equal to interest (to the extent received) at the
applicable Net Mortgage Rate on the amount of such Principal Prepayment for the
number of days commencing on the first day of the calendar month in which such
Distribution Date occurs and ending on the date on which such prepayment is so
applied.

                  "Prepayment Interest Shortfall": With respect to any
Distribution Date, for each Mortgage Loan that was the subject of a Principal
Prepayment in full during the portion of the related Prepayment Period occurring
from the first day of the related Prepayment Period through the last day of the
calendar month preceding the month in which such Distribution Date occurs, an
amount equal to one month's interest on the Mortgage Loan less any payments in
respect of interest for such month made by the related Mortgagor.

                  "Prepayment Period": With respect to any Distribution Date and
any Principal Prepayment in full, the period commencing on the 16th day of the
calendar month preceding the calendar month in which such Distribution Date
occurs (or, in the case of the first Distribution Date, commencing on July 1,
2004) and ending on the 15th day of the calendar month in which such
Distribution Date occurs and for any Distribution Date and any Principal
Prepayment in part, the

                                      -36-

<PAGE>

calendar month preceding the month in which such Distribution Date occurs.

                  "Principal Balance": As to any Mortgage Loan other than a
Liquidated Mortgage Loan, and any day, the related Cut-off Date Principal
Balance, minus all collections credited against the Cut-off Date Principal
Balance of any such Mortgage Loan. For purposes of this definition, a Liquidated
Mortgage Loan shall be deemed to have a Principal Balance equal to the Principal
Balance of the related Mortgage Loan as of the final recovery of related
Liquidation Proceeds and a Principal Balance of zero thereafter. As to any REO
Property and any day, the Principal Balance of the related Mortgage Loan
immediately prior to such Mortgage Loan becoming REO Property minus any REO
Principal Amortization received with respect thereto on or prior to such day.

                  "Principal Prepayment": Any payment of principal made by the
Mortgagor on a Mortgage Loan which is received in advance of its scheduled Due
Date and which is not accompanied by an amount of interest representing the full
amount of scheduled interest due on any Due Date in any month or months
subsequent to the month of prepayment.

                  "Principal Remittance Amount": With respect to any
Distribution Date, the sum of the Group I Principal Remittance Amount, the Group
II Principal Remittance Amount and the Group III Principal Remittance Amount.

                  "Prospectus Supplement": That certain Prospectus Supplement
dated July 28, 2004 relating to the public offering of the Class A Certificates
and the Mezzanine Certificates (other than the Class M-7 Certificates).

                  "Purchase Price": With respect to any Mortgage Loan or REO
Property to be purchased pursuant to or as contemplated by Section 2.03, Section
3.16(c) or Section 9.01, and as confirmed by an Officer's Certificate from the
Servicer and to the Trustee an amount equal to the sum of (i) 100% of the Stated
Principal Balance thereof as of the date of purchase (or such other price as
provided in Section 9.01), (ii) in the case of (x) a Mortgage Loan, accrued
interest on such Stated Principal Balance at the applicable Net Mortgage Rate in
effect from time to time from the Due Date as to which interest was last covered
by a payment by the Mortgagor or an advance by the Servicer, which payment or
advance had as of the date of purchase been distributed pursuant to Section
4.01, through the end of the calendar month in which the purchase is to be
effected and (y) an REO Property, the sum of (1) accrued interest on such Stated
Principal Balance at the applicable Net Mortgage Rate in effect from time to
time from the Due Date as to which interest was last covered by a payment by the
Mortgagor or an advance by the Servicer through the end of the calendar month
immediately preceding the calendar month in which such REO Property was
acquired, plus (2) REO Imputed Interest for such REO Property for each calendar
month commencing with the calendar month in which such REO Property was acquired
and ending with the calendar month in which such purchase is to be effected, net
of the total of all net rental income, Insurance Proceeds, Liquidation Proceeds
and Advances that as of the date of purchase had been distributed as or to cover
REO Imputed Interest pursuant to Section 4.01, (iii) any unreimbursed Servicing
Advances and Advances (including Nonrecoverable Advances and Nonrecoverable
Servicing Advances) and any unpaid Servicing Fees allocable to such Mortgage
Loan or REO Property, (iv) any amounts previously withdrawn from the Collection
Account in respect of such Mortgage Loan or REO Property pursuant to Section
3.11(a)(ix) and Section 3.16(b), and (v) in the

                                      -37-

<PAGE>

case of a Mortgage Loan required to be purchased pursuant to Section 2.03,
expenses reasonably incurred or to be incurred by the Servicer, the NIMS Insurer
or the Trustee in respect of the breach or defect giving rise to the purchase
obligation including any costs and damages incurred by the Trust in connection
with any violation by such loan of any predatory or abusive lending law.

                  "Qualified Substitute Mortgage Loan": A mortgage loan
substituted for a Deleted Mortgage Loan pursuant to the terms of this Agreement
which must, on the date of such substitution, (i) have an outstanding Principal
Balance, after application of all scheduled payments of principal and interest
due during or prior to the month of substitution, not in excess of the Principal
Balance of the Deleted Mortgage Loan as of the Due Date in the calendar month
during which the substitution occurs, (ii) have a Mortgage Rate not less than
(and not more than one percentage point in excess of) the Mortgage Rate of the
Deleted Mortgage Loan, (iii) with respect to any Adjustable- Rate Mortgage Loan,
have a Maximum Mortgage Rate not less than the Maximum Mortgage Rate on the
Deleted Mortgage Loan, (iv) with respect to any Adjustable-Rate Mortgage Loan,
have a Minimum Mortgage Rate not less than the Minimum Mortgage Rate of the
Deleted Mortgage Loan, (v) with respect to any Adjustable-Rate Mortgage Loan,
have a Gross Margin equal to the Gross Margin of the Deleted Mortgage Loan, (vi)
with respect to any Adjustable-Rate Mortgage Loan, have a next Adjustment Date
not more than two months later than the next Adjustment Date on the Deleted
Mortgage Loan, (vii) have a remaining term to maturity not greater than (and not
more than one year less than) that of the Deleted Mortgage Loan, (viii) have the
same Due Date as the Due Date on the Deleted Mortgage Loan, (ix) have a
Loan-to-Value Ratio as of the date of substitution equal to or lower than the
Loan-to-Value Ratio of the Deleted Mortgage Loan as of such date, (x) have a
risk grading determined by the Originator at least equal to the risk grading
assigned on the Deleted Mortgage Loan, (xi) have a Prepayment Charge provision
at least equal to the Prepayment Charge provision in the Deleted Mortgage Loan,
(xii) [reserved] and (xiii) conform to each representation and warranty set
forth in Section 6 of the Mortgage Loan Purchase Agreement applicable to the
Deleted Mortgage Loan. In the event that one or more mortgage loans are
substituted for one or more Deleted Mortgage Loans, the amounts described in
clause (i) hereof shall be determined on the basis of aggregate principal
balances, the Mortgage Rates described in clause (ii) hereof shall be determined
on the basis of weighted average Mortgage Rates, the terms described in clause
(vii) hereof shall be determined on the basis of weighted average remaining term
to maturity, the Loan-to- Value Ratios described in clause (ix) hereof shall be
satisfied as to each such mortgage loan, the risk gradings described in clause
(x) hereof shall be satisfied as to each such mortgage loan and, except to the
extent otherwise provided in this sentence, the representations and warranties
described in clause (xi) hereof must be satisfied as to each Qualified
Substitute Mortgage Loan or in the aggregate, as the case may be.

                  "Rating Agency or Rating Agencies": Moody's, Fitch and S&P or
their successors. If such agencies or their successors are no longer in
existence, "Rating Agencies" shall be such nationally recognized statistical
rating agencies, or other comparable Persons, designated by the Depositor,
notice of which designation shall be given to the Trustee and the Servicer.

                  "Realized Loss": With respect to any Liquidated Mortgage Loan
or any Mortgage Loan charged off by the Servicer pursuant to this Agreement, the
amount of loss realized equal to the portion of the Stated Principal Balance
remaining unpaid after application of all Net Liquidation Proceeds in respect of
such Mortgage Loan. If the Servicer receives Subsequent Recoveries with

                                        -38-

<PAGE>

respect to any Mortgage Loan, the amount of the Realized Loss with respect to
that Mortgage Loan will be reduced to the extent such recoveries are applied to
principal distributions on any Distribution Date.

                  "Record Date": With respect to each Distribution Date and any
Book-Entry Certificate, the Business Day immediately preceding such Distribution
Date. With respect to each Distribution Date and any other Certificates,
including any Definitive Certificates, the last Business Day of the month
immediately preceding the month in which such Distribution Date occurs.

                  "Reference Banks": Bankers Trust Company, Barclay's Bank PLC,
The Tokyo Mitsubishi Bank and National Westminster Bank PLC and their successors
in interest; provided, however, that if any of the foregoing banks are not
suitable to serve as a Reference Bank, then any leading banks selected by the
Trustee(after consultation with the NIMS Insurer) which are engaged in
transactions in Eurodollar deposits in the international Eurocurrency market (i)
with an established place of business in London, (ii) not controlling, under the
control of or under common control with the Depositor or any Affiliate thereof
and (iii) which have been designated as such by the Trustee.

                  "Refinanced Mortgage Loan": A Mortgage Loan the proceeds of
which were not used to purchase the related Mortgaged Property.

                  "Regular Certificate": Any Class A Certificate, Mezzanine
Certificate, Class CE Certificate or Class P Certificate.

                  "Regular Interest": A "regular interest" in a REMIC within the
meaning of Section 860G(a)(1) of the Code.

                  "Relief Act": The Servicemembers Civil Relief Act.

                  "Relief Act Interest Shortfall": With respect to any
Distribution Date and any Mortgage Loan, any reduction in the amount of interest
collectible on such Mortgage Loan for the most recently ended calendar month as
a result of the application of the Relief Act or any similar state or local law.

                  "REMIC": A "real estate mortgage investment conduit" within
the meaning of Section 860D of the Code.

                  "REMIC I": The segregated pool of assets subject hereto,
constituting the primary trust created hereby and to be administered hereunder,
with respect to which a REMIC election is to be made, consisting of: (i) such
Mortgage Loans and Prepayment Charges as from time to time are subject to this
Agreement, together with the Mortgage Files relating thereto, and together with
all collections thereon and proceeds thereof; (ii) any REO Property, together
with all collections thereon and proceeds thereof; (iii) the Trustee's rights
with respect to the Mortgage Loans under all insurance policies, required to be
maintained pursuant to this Agreement and any proceeds thereof; (iv) the
Depositor's rights under the Mortgage Loan Purchase Agreement (including any
security interest created thereby); and (v) the Collection Account (other than
any amounts representing any Servicer Prepayment Charge Payment Amount), the
Distribution Account (other than any amounts

                                        -39-

<PAGE>

representing any Servicer Prepayment Charge Payment Amount) and any REO Account,
and such assets that are deposited therein from time to time and any investments
thereof, together with any and all income, proceeds and payments with respect
thereto. Notwithstanding the foregoing, however, REMIC I specifically excludes
the Net WAC Rate Carryover Reserve Account, the Cap Contracts, all payments and
other collections of principal and interest due on the Mortgage Loans on or
before the Cut-off Date and all Prepayment Charges payable in connection with
Principal Prepayments made before the Cut-off Date.

                  "REMIC I Interest Loss Allocation Amount": With respect to any
Distribution Date, an amount (subject to adjustment based on the actual number
of days elapsed in the respective Accrual Periods for the indicated Regular
Interests for such Distribution Date) equal to (a) the product of (i) 50% of the
aggregate Stated Principal Balance of the Mortgage Loans and REO Properties then
outstanding and (ii) the REMIC I Remittance Rate for REMIC I Regular Interest I-
LTAA minus the Marker Rate, divided by (b) 12.

                  "REMIC I Marker Allocation Percentage": 50% of any amount
payable or loss attributable from the Mortgage Loans, which shall be allocated
to the REMIC I Regular Interests.

                  "REMIC I Overcollateralized Amount": With respect to any date
of determination, (i) 0.50% of the aggregate Uncertificated Balance of the REMIC
I Regular Interests minus (ii) the aggregate Uncertificated Balance of REMIC I
Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I Regular
Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular Interest
I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC
I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular
Interest I-LTM6, REMIC I Regular Interest I-LTM7 and REMIC I Regular Interest
I-LTP, in each case as of such date of determination.

                  "REMIC I Principal Loss Allocation Amount": With respect to
any Distribution Date, an amount equal to the product of (i) 50% of the
aggregate Stated Principal Balance of the Mortgage Loans and REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate Uncertificated Balance of REMIC I Regular Interest I-LTA1, REMIC I
Regular Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular
Interest I-LTA4, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest
I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC
I Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6 and REMIC I Regular
Interest I-LTM7 and the denominator of which is the aggregate Uncertificated
Balance of REMIC I Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2,
REMIC I Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I
Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular
Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest
I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7 and
REMIC I Regular Interest I-LTZZ.

                  "REMIC I Regular Interest": Any of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a "regular interest" in REMIC I. Each REMIC I Regular Interest
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in

                                        -40-

<PAGE>

the Preliminary Statement hereto. The designations for the respective REMIC I
Regular Interests are set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTAA": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTAA
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTA1": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTA1
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTA2": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTA2
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTA3": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTA3
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTA4": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTA4
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM1": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM1
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM2": One of the separate
non-certificated beneficial

                                        -41-

<PAGE>

ownership interests in REMIC I issued hereunder and designated as a Regular
Interest in REMIC I. REMIC I Regular Interest I-LTM2 shall accrue interest at
the related REMIC I Remittance Rate in effect from time to time, and shall be
entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Balance as
set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM3": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM3
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM4": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM4
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM5": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM5
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM6": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM6
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM7": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM7
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTP": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTP
shall be entitled to any Prepayment Charges collected by the Servicer and to a
distribution of principal, subject to the terms and conditions hereof, in an
aggregate

                                        -42-

<PAGE>

amount equal to its initial Uncertificated Balance as set forth in the
Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTXX": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTXX
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTZZ": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTZZ
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LT1GRP": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT1GRP
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LT1SUB": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT1SUB
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LT2GRP": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT2GRP
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LT2SUB": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT2SUB
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LT3GRP": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in

                                        -43-

<PAGE>

REMIC I. REMIC I Regular Interest I-LT3GRP shall accrue interest at the related
REMIC I Remittance Rate in effect from time to time, and shall be entitled to
distributions of principal, subject to the terms and conditions hereof, in an
aggregate amount equal to its initial Uncertificated Balance as set forth in the
Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LT3SUB": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT3SUB
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Remittance Rate": With respect to REMIC I Regular
Interest I-LTAA, REMIC I Regular Interest I-LTA1, REMIC I Regular Interest
I-LTA2, REMIC I Regular Interest I- LTA3, REMIC I Regular Interest I-LTA4, REMIC
I Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular
Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest
I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC
I Regular Interest I-LTZZ, REMIC I Regular Interest I-LTP, REMIC I Regular
Interest I- LT1SUB, REMIC I Regular Interest I-LT2SUB, REMIC I Regular Interest
I-LT3SUB and REMIC I Regular Interest I-LTXX, the weighted average of the
Adjusted Net Mortgage Rates of the Mortgage Loans. With respect to REMIC I
Regular Interest I-LT1GRP, the weighted average of the Adjusted Net Mortgage
Rates of the Group I Mortgage Loans. With respect REMIC I Regular Interest
I-LT2GRP, the weighted average of the Adjusted Net Mortgage Rates of the Group
II Mortgage Loans. With respect REMIC I Regular Interest I-LT3GRP, the weighted
average of the Adjusted Net Mortgage Rates of the Group III Mortgage Loans.

                  "REMIC I Subordinated Balance Ratio": The ratio among the
Uncertificated Balance of each REMIC I Regular Interest ending with the
designation "SUB,", equal to the ratio among, with respect to each such REMIC I
Regular Interest, the excess of (x) the aggregate Stated Principal Balance of
the Mortgage Loans in the related Loan Group over (y) the current Certificate
Principal Balance of the Class A Certificates in the related Loan Group.

                  "REMIC I Sub WAC Allocation Percentage": 50% of any amount
payable or loss attributable from the Mortgage Loans, which shall be allocated
to REMIC I Regular Interest I- LT1SUB, REMIC I Regular Interest I-LT1GRP, REMIC
I Regular Interest I-LT2SUB, REMIC I Regular Interest I-LT2GRP, REMIC I Regular
Interest I-LT3SUB, REMIC I Regular Interest I- LT3GRP and REMIC I Regular
Interest I-LTXX.

                  "REMIC I Required Overcollateralized Amount": 1.00% of the
Overcollateralization Target Amount.

                  "REMIC II": The segregated pool of assets consisting of all of
the REMIC I Regular Interests conveyed in trust to the Trustee, for the benefit
of the REMIC II Certificateholders pursuant to Section 2.07, and all amounts
deposited therein, with respect to which a separate REMIC election is to be
made.

                                        -44-

<PAGE>

                  "REMIC II Certificate": Any Regular Certificate (other than a
Class CE Certificate or Class P Certificate) or Class R Certificate.

                  "REMIC II Certificateholder": The Holder of any REMIC II
Certificate.

                  "REMIC II Regular Interest": Any Class A Certificate,
Mezzanine Certificate, the Class CE Interest or the Class P Interest.

                  "REMIC III": The segregated pool of assets consisting of all
of the Class CE Interest conveyed in trust to the Trustee, for the benefit of
the Holders of the Regular Certificates and the Class R-X Certificate (in
respect of the Class R-III Interest), pursuant to Article II hereunder, and all
amounts deposited therein, with respect to which a separate REMIC election is to
be made.

                  "REMIC IV": The segregated pool of assets consisting of all of
the Class P Interest conveyed in trust to the Trustee, for the benefit of the
Holders of the Regular Certificates and the Class R-X Certificate (in respect of
the Class R-IV Interest), pursuant to Article II hereunder, and all amounts
deposited therein, with respect to which a separate REMIC election is to be
made.

                  "REMIC Provisions": Provisions of the federal income tax law
relating to real estate mortgage investment conduits, which appear at Section
860A through 860G of the Code, and related provisions, and proposed, temporary
and final regulations and published rulings, notices and announcements
promulgated thereunder, as the foregoing may be in effect from time to time.

                  "Remittance Report": A report prepared by the Servicer and
delivered to the Trustee and the NIMS Insurer pursuant to Section 4.03.

                  "Rents from Real Property": With respect to any REO Property,
gross income of the character described in Section 856(d) of the Code as being
included in the term "rents from real property."

                  "REO Account": The account or accounts maintained, or caused
to be maintained, by the Servicer in respect of an REO Property pursuant to
Section 3.23.

                  "REO Disposition": The sale or other disposition of an REO
Property on behalf of REMIC I.

                  "REO Imputed Interest": As to any REO Property, for any
calendar month during which such REO Property was at any time part of REMIC I,
one month's interest at the applicable Net Mortgage Rate on the Stated Principal
Balance of such REO Property (or, in the case of the first such calendar month,
of the related Mortgage Loan, if appropriate) as of the close of business on the
Distribution Date in such calendar month.

                  "REO Principal Amortization": With respect to any REO
Property, for any calendar month, the excess, if any, of (a) the aggregate of
all amounts received in respect of such REO Property during such calendar month,
whether in the form of rental income, sale proceeds (including, without
limitation, that portion of the Termination Price paid in connection with a
purchase of all

                                        -45-

<PAGE>

of the Mortgage Loans and REO Properties pursuant to Section 9.01 that is
allocable to such REO Property) or otherwise, net of any portion of such amounts
(i) payable pursuant to Section 3.23(c) in respect of the proper operation,
management and maintenance of such REO Property or (ii) payable or reimbursable
to the Servicer pursuant to Section 3.23(d) for unpaid Servicing Fees in respect
of the related Mortgage Loan and unreimbursed Servicing Advances and Advances in
respect of such REO Property or the related Mortgage Loan, over (b) the REO
Imputed Interest in respect of such REO Property for such calendar month.

                  "REO Property": A Mortgaged Property acquired by the Servicer
on behalf of REMIC I through foreclosure or deed-in-lieu of foreclosure, as
described in Section 3.23.

                  "Request for Release": A request for release in such
electronic or other format as shall be mutually agreeable by the Trustee and the
Servicer, in substantially the form of Exhibit E attached hereto.

                  "Reserve Interest Rate": With respect to any Interest
Determination Date, the rate per annum that the Trustee determines to be either
(i) the arithmetic mean (rounded upwards if necessary to the nearest whole
multiple of 1/16%) of the one-month U.S. dollar lending rates which New York
City banks selected by the Trustee are quoting on the relevant Interest
Determination Date to the principal London offices of leading banks in the
London interbank market or (ii) in the event that the Trustee can determine no
such arithmetic mean, the lowest one-month U.S. dollar lending rate which New
York City banks selected by the Trustee are quoting on such Interest
Determination Date to leading European banks.

                  "Residential Dwelling": Any one of the following: (i) a
detached one-family dwelling, (ii) a detached two- to four-family dwelling,
(iii) a one-family dwelling unit in a Fannie Mae eligible condominium project,
(iv) a manufactured home, or (v) a detached one-family dwelling in a planned
unit development, none of which is a co-operative or mobile home.

                  "Residual Certificate": Any one of the Class R Certificates
and the Class R-X Certificates.

                  "Residual Interest": The sole class of "residual interests" in
a REMIC within the meaning of Section 860G(a)(2) of the Code.

                  "Responsible Officer": When used with respect to the Trustee,
the Chairman or Vice Chairman of the Board of Directors or Trustees, the
Chairman or Vice Chairman of the Executive or Standing Committee of the Board of
Directors or Trustees, the President, the Chairman of the Committee on Trust
Matters, any vice president, any assistant vice president, the Secretary, any
assistant secretary, the Treasurer, any assistant treasurer, the Cashier, any
assistant cashier, any trust officer or assistant trust officer, the Controller
and any assistant controller or any other officer of the Trustee, customarily
performing functions similar to those performed by any of the above designated
officers and, with respect to a particular matter, to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject.

                  "S&P": Standard & Poor's Ratings Services, a division of the
McGraw-Hill

                                        -46-

<PAGE>

Companies, Inc., or its successor in interest.

                  "Seller": UBS Real Estate Securities Inc. or its successor in
interest, in its capacity as seller under the Mortgage Loan Purchase Agreement.

                  "Servicer": HomEq Servicing Corporation or its successor in
interest, in its capacity as servicer hereunder.

                  "Servicer Event of Default": One or more of the events
described in Section 7.01.

                  "Servicer Prepayment Charge Payment Amount": The amounts
payable by the Servicer in respect of any waived Prepayment Charges pursuant to
Section 2.05 or Section 3.01.

                  "Senior Principal Distribution Amount": With respect to any
Distribution Date, the sum of (i) the Group I Senior Principal Distribution
Amount, (ii) the Group II Senior Principal Distribution Amount and (iii) the
Group III Senior Principal Distribution Amount.

                  "Servicer Remittance Date": With respect to any Distribution
Date, by 1:00 p.m. New York time the Business Day immediately preceding the
related Distribution Date.

                  "Servicing Account": The account or accounts created and
maintained pursuant to Section 3.09.

                  "Servicing Advances": All customary, reasonable and necessary
"out of pocket" costs and expenses other than Advances (including reasonable
attorneys' fees and disbursements) incurred by the Servicer in the performance
of its servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration, inspection and protection of the Mortgaged Property,
(ii) any enforcement or judicial proceedings, including foreclosures, in respect
of a particular Mortgage Loan, (iii) the management and liquidation of the REO
Property and (iv) taxes, assessments, water rates, sewer rents and other charges
which are or may become a lien upon the Mortgaged Property. Servicing Advances
also include any reasonable "out-of-pocket" costs and expenses (including legal
fees) incurred by the Servicer in connection with executing and recording
instruments of satisfaction, deeds of reconveyance or Assignments of Mortgage in
connection with any foreclosure in respect of any Mortgage Loan to the extent
not recovered from the related Mortgagor or otherwise payable under this
Agreement. The Servicer shall not be required to make any Servicing Advance that
would be a Nonrecoverable Servicing Advance.

                  "Servicing Fee": With respect to each Mortgage Loan and for
any calendar month, an amount equal to one-twelfth of the Servicing Fee Rate
(without regards to the words "per annum" in the definition thereof) multiplied
by the Stated Principal Balance of the Mortgage Loans as of the first day of the
related Due Period.

                  "Servicing Fee Rate": 0.50% per annum.

                  "Servicing Officer": Any officer of the Servicer involved in
or responsible for, the administration and servicing of the Mortgage Loans,
whose name appears on a list of servicing

                                        -47-

<PAGE>

officers furnished by the Servicer to the Trustee upon request, as such list may
from time to time be amended.

                  "Servicing Transfer Costs": Shall mean all reasonable costs
and expenses incurred by the Trustee in connection with the transfer of
servicing from a predecessor servicer, including, without limitation, any
reasonable costs or expenses associated with the complete transfer of all
servicing data and the completion, correction or manipulation of such servicing
data as may be required by the Trustee to correct any errors or insufficiencies
in the servicing data or otherwise to enable the Trustee to service the Mortgage
Loans properly and effectively.

                  "Single Certificate": With respect to any Class of
Certificates (other than the Class P Certificates and the Residual
Certificates), a hypothetical Certificate of such Class evidencing a Percentage
Interest for such Class corresponding to an initial Certificate Principal
Balance of $1,000. With respect to the Class P Certificates and the Residual
Certificates, a hypothetical Certificate of such Class evidencing a 100%
Percentage Interest in such Class.

                  "Startup Day": With respect to each Trust REMIC, the day
designated as such pursuant to Section 10.01(b) hereof.

                  "Stated Principal Balance": With respect to any Mortgage Loan:
(a) as of any date of determination up to but not including the Distribution
Date on which the proceeds, if any, of a Liquidation Event with respect to such
Mortgage Loan would be distributed, the Cut-off Date Principal Balance of such
Mortgage Loan, as shown in the Mortgage Loan Schedule, minus the sum of (i) the
principal portion of each Monthly Payment due on a Due Date subsequent to the
Cut-off Date, to the extent received from the Mortgagor or advanced by the
Servicer and distributed pursuant to Section 4.01 on or before such date of
determination, (ii) all Principal Prepayments received after the Cut-off Date,
to the extent distributed pursuant to Section 4.01 on or before such date of
determination, (iii) all Liquidation Proceeds and Insurance Proceeds applied by
the Servicer as recoveries of principal in accordance with the provisions of
Section 3.16, to the extent distributed pursuant to Section 4.01 on or before
such date of determination, and (iv) any Realized Loss incurred with respect
thereto as a result of a Deficient Valuation made during or prior to the
Prepayment Period for the most recent Distribution Date coinciding with or
preceding such date of determination; and (b) as of any date of determination
coinciding with or subsequent to the Distribution Date on which the proceeds, if
any, of a Liquidation Event with respect to such Mortgage Loan would be
distributed, zero. With respect to any REO Property: (a) as of any date of
determination up to but not including the Distribution Date on which the
proceeds, if any, of a Liquidation Event with respect to such REO Property would
be distributed, an amount (not less than zero) equal to the Stated Principal
Balance of the related Mortgage Loan as of the date on which such REO Property
was acquired on behalf of REMIC I, minus the sum of (i) if such REO Property was
acquired before the Distribution Date in any calendar month, the principal
portion of the Monthly Payment due on the Due Date in the calendar month of
acquisition, to the extent advanced by the Servicer and distributed pursuant to
Section 4.01 on or before such date of determination, and (ii) the aggregate
amount of REO Principal Amortization in respect of such REO Property for all
previously ended calendar months, to the extent distributed pursuant to Section
4.01 on or before such date of determination; and (b) as of any date of
determination coinciding with or subsequent to the Distribution Date on which
the proceeds, if any, of a Liquidation Event with respect to such REO Property
would be

                                        -48-

<PAGE>

distributed, zero.

                  "Stepdown Date": The earlier to occur of (i) the Distribution
Date on which the aggregate Certificate Principal Balance of the Class A
Certificates has been reduced to zero and (ii) the later to occur of (x) the
Distribution Date occurring in August 2007 and (y) the first Distribution Date
on which the Credit Enhancement Percentage (calculated for this purpose only
after taking into account payments of principal on the Mortgage Loans but prior
to distribution of the Group I Principal Distribution Amount, the Group II
Principal Distribution Amount and the Group III Principal Distribution Amount to
the Certificates then entitled to distributions of principal on such
Distribution Date) is equal to or greater than 40.50%.

                  "Sub-Servicer": Any Person with which the Servicer has entered
into a Sub-Servicing Agreement which meets the requirements set forth in Section
3.02.

                  "Sub-Servicing Account": An account established by a
Sub-Servicer which meets the requirements set forth in Section 3.08 and is
otherwise acceptable to the Servicer.

                  "Sub-Servicing Agreement": The written contract between the
Servicer and a Sub- Servicer relating to servicing and administration of certain
Mortgage Loans meeting the requirements set forth in Section 3.02.

                  "Subsequent Recoveries": As of any Distribution Date,
unexpected amounts received by the Servicer (net of any related expenses
permitted to be reimbursed to the Servicer) specifically related to a Mortgage
Loan that was the subject of a liquidation or an REO Disposition prior to the
related Prepayment Period that resulted in a Realized Loss.

                  "Substitution Adjustment Amount": As defined in Section
2.03(b).

                  "Tax Returns": The federal income tax return on Internal
Revenue Service Form 1066, U.S. Real Estate Mortgage Investment Conduit Income
Tax Return, including Schedule Q thereto, Quarterly Notice to Residual Interest
Holders of REMIC Taxable Income or Net Loss Allocation, or any successor forms,
to be filed on behalf of the Trust Fund due to the classification of portions
thereof as REMICs under the REMIC Provisions, together with any and all other
information reports or returns that may be required to be furnished to the
Certificateholders or filed with the Internal Revenue Service or any other
governmental taxing authority under any applicable provisions of federal, state
or local tax laws.

                  "Telerate Page 3750": The display designated as page "3750" on
the Dow Jones Telerate Capital Markets Report (or such other page as may replace
page 3750 on that report for the purpose of displaying London interbank offered
rates of major banks).

                  "Termination Price": As defined in Section 9.01.

                  "Terminator": As defined in Section 9.01.

                  "Transfer": Any direct or indirect transfer, sale, pledge,
hypothecation, or other form

                                        -49-

<PAGE>

of assignment of any Ownership Interest in a Certificate.

                  "Transferee": Any Person who is acquiring by Transfer any
Ownership Interest in a Certificate.

                  "Transferor": Any Person who is disposing by Transfer of any
Ownership Interest in a Certificate.

                  "Trigger Event": A Trigger Event is in effect with respect to
any Distribution Date on or after the Stepdown Date if:

                  (a) the Delinquency Percentage exceeds 39.15% of the Credit
Enhancement Percentage; or

                  (b) the aggregate amount of Realized Losses incurred since the
Cut-off Date through the last day of the related Due Period (reduced by the
aggregate amount of Subsequent Recoveries received since the Cut-off Date
through the last day of the related Due Period) divided by the aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date exceeds the
applicable percentages set forth below with respect to such Distribution Date:

      DISTRIBUTION DATE OCCURRING IN             PERCENTAGE
      ------------------------------             ----------

August 2007 through July 2008                       3.50%
August 2008 through July 2009                       5.25%
August 2009 through July 2010                       6.50%
August 2010 and thereafter                          7.00%

                  "Trust Fund": Collectively, all of the assets of REMIC I,
REMIC II, REMIC III, REMIC IV, the Net WAC Rate Carryover Reserve Account, the
Cap Contracts and the other assets conveyed by the Depositor to the Trustee
pursuant to Section 2.01.

                  "Trust REMIC": Any of REMIC I, REMIC II, REMIC III or REMIC
IV.

                  "Trustee": U.S. Bank National Association, a national banking
association, or its successor in interest, or any successor trustee appointed as
herein provided.

                  "Trustee Fee": The amount payable to the Trustee on each
Distribution Date pursuant to Section 8.05 as compensation for all services
rendered by it in the execution of the trust hereby created and in the exercise
and performance of any of the powers and duties of the Trustee hereunder, which
amount shall be equal to one-twelfth of the Trustee Fee Rate (without regards to
the words "per annum" in the definition thereof) multiplied by the Stated
Principal Balance of the Mortgage Loans as of the first day of the related Due
Period.

                  "Trustee Fee Rate": 0.0215% per annum.

                  "Uncertificated Balance": The amount of any REMIC I Regular
Interest outstanding as of any date of determination. As of the Closing Date,
the Uncertificated Balance of each REMIC I Regular Interest shall equal the
amount set forth in the Preliminary Statement hereto as its initial

                                        -50-

<PAGE>

uncertificated balance. On each Distribution Date, the Uncertificated Balance of
each REMIC I Regular Interest shall be reduced by all distributions of principal
made on such REMIC I Regular Interest on such Distribution Date pursuant to
Section 4.01 and, if and to the extent necessary and appropriate, shall be
further reduced on such Distribution Date by Realized Losses as provided in
Section 4.04. The Uncertificated Balance of REMIC I Regular Interest I-LTZZ
shall be increased by interest deferrals as provided in Section 4.01(a)(1)(i).
The Uncertificated Balance of each REMIC I Regular Interest shall never be less
than zero. With respect to the Class CE Interest as of any date of
determination, an amount equal to the excess, if any, of (A) the then aggregate
Uncertificated Principal Balance of the REMIC I Regular Interests over (B) the
then aggregate Certificate Principal Balances of the Class A Certificates,
Mezzanine Certificates and the Class P Interest then outstanding.

                  "Uncertificated Interest": With respect to any REMIC I Regular
Interest for any Distribution Date, one month's interest at the REMIC I
Remittance Rate applicable to such REMIC I Regular Interest for such
Distribution Date, accrued on the Uncertificated Balance thereof immediately
prior to such Distribution Date. Uncertificated Interest in respect of any REMIC
I Regular Interest shall accrue on the basis of a 360-day year consisting of
twelve 30-day months. Uncertificated Interest with respect to each Distribution
Date, as to any REMIC I Regular Interest, shall be reduced by an amount equal to
the sum of (a) the aggregate Prepayment Interest Shortfall, if any, for such
Distribution Date to the extent not covered by payments pursuant to Section 3.24
and (b) the aggregate amount of any Relief Act Interest Shortfall, if any
allocated, in each case, to such REMIC I Regular Interest pursuant to Section
1.02. In addition, Uncertificated Interest with respect to each Distribution
Date, as to any REMIC I Regular Interest shall be reduced by Realized Losses, if
any, allocated to such REMIC I Regular Interest pursuant to Section 1.02 and
Section 4.04.

                  "Underwriters' Exemption": As defined in the Prospectus
Supplement.

                  "Uninsured Cause": Any cause of damage to a Mortgaged Property
such that the complete restoration of such property is not fully reimbursable by
the hazard insurance policies required to be maintained pursuant to Section
3.14.

                  "United States Person": A citizen or resident of the United
States, a corporation, partnership or other entity created or organized in, or
under the laws of, the United States, any state thereof or, District of Columbia
(except, in the case of a partnership, to the extent provided in regulations)
provided that, for purposes solely of the restrictions on the transfer of Class
R Certificates, no partnership or other entity treated as a partnership for
United States federal income tax purposes shall be treated as a United States
Person unless all persons that own an interest in such partnership either
directly or through any entity that is not a corporation for United States
federal income tax purposes are required by the applicable operative agreement
to be United States Persons or an estate whose income is subject to United
States federal income tax regardless of its source, or a trust if a court within
the United States is able to exercise primary supervision over the
administration of the trust and one or more United States persons have the
authority to control all substantial decisions of the trust. To the extent
prescribed in regulations by the Secretary of the Treasury, which have not yet
been issued, a trust which was in existence on August 20, 1996 (other than a
trust treated as owned by the grantor under subpart E of part I of subchapter J
of chapter 1 of the Code), and which was treated as a United States person on
August 20, 1996 may elect to continue

                                        -51-

<PAGE>

to be treated as a United States person notwithstanding the previous sentence.
The term "United States" shall have the meaning set forth in Section 7701 of the
Code.

                  "Unpaid Interest Shortfall Amount": With respect to the Class
A Certificates and the Mezzanine Certificates and (i) the first Distribution
Date, zero, and (ii) any Distribution Date after the first Distribution Date,
the amount, if any, by which (a) the sum of (1) the Monthly Interest
Distributable Amount for such Class for the immediately preceding Distribution
Date and (2) the outstanding Unpaid Interest Shortfall Amount, if any, for such
Class for such preceding Distribution Date exceeds (b) the aggregate amount
distributed on such Class in respect of interest pursuant to clause (a) of this
definition on such preceding Distribution Date, plus interest on the amount of
interest due but not paid on the Certificates of such Class on such preceding
Distribution Date, to the extent permitted by law, at the Pass-Through Rate for
such Class for the related Accrual Period.

                  "Value": With respect to any Mortgage Loan, and the related
Mortgaged Property, the lesser of:

         (i)      the lesser of (a) the value thereof as determined by an
                  appraisal made for the originator of the Mortgage Loan at the
                  time of origination of the Mortgage Loan by an appraiser who
                  met the minimum requirements of Fannie Mae and Freddie Mac,
                  and (b) the value thereof as determined by a review appraisal
                  conducted by the Originator in the event any such review
                  appraisal determines an appraised value more than 10% lower
                  than the value thereof, in the case of a Mortgaged Loan with a
                  Loan- to-Value Ratio less than or equal to 80%, or more than
                  5% lower than the value thereof, in the case of a Mortgage
                  Loan with a Loan-to-Value Ratio greater than 80%, as
                  determined by the appraisal referred to in clause (i)(a)
                  above; and

         (ii)     the purchase price paid for the related Mortgaged Property by
                  the Mortgagor with the proceeds of the Mortgage Loan;
                  provided, however, that in the case of a refinanced Mortgage
                  Loan (which is a Mortgage Loan the proceeds of which were not
                  used to purchase the related Mortgaged Property) or a Mortgage
                  Loan originated in connection with a "lease option purchase"
                  if the "lease option purchase price" was set 12 months or more
                  prior to origination, such value of the Mortgaged Property is
                  based solely upon clause (i) above.

                  "Voting Rights": The portion of the voting rights of all of
the Certificates which is allocated to any Certificate. With respect to any date
of determination, 98% of all Voting Rights will be allocated among the holders
of the Class A Certificates, the Mezzanine Certificates and the Class CE
Certificates in proportion to the then outstanding Certificate Principal
Balances of their respective Certificates, 1% of all Voting Rights will be
allocated to the holders of the Class P Certificates and 1% of all Voting Rights
will be allocated among the holders of the Residual Certificates. The Voting
Rights allocated to each Class of Certificate shall be allocated among Holders
of each such Class in accordance with their respective Percentage Interests as
of the most recent Record Date.

                  SECTION 1.02. Allocation of Certain Interest Shortfalls.

                                      -52-

<PAGE>

                  For purposes of calculating the amount of the Monthly Interest
Distributable Amount for the Class A Certificates, the Mezzanine Certificates
and the Class CE Certificates for any Distribution Date, (1) the aggregate
amount of any Prepayment Interest Shortfalls (to the extent not covered by
payments by the Servicer pursuant to Section 3.24) and any Relief Act Interest
Shortfall incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated first, to the Class CE Certificates based on, and to the
extent of, one month's interest at the then applicable respective Pass-Through
Rate on the respective Notional Amount of each such Certificate and, thereafter,
among the Class A Certificates and the Mezzanine Certificates on a PRO RATA
basis based on, and to the extent of, one month's interest at the then
applicable respective Pass-Through Rate on the respective Certificate Principal
Balance of each such Certificate and (2) the aggregate amount of any Realized
Losses and Net WAC Rate Carryover Amounts incurred for any Distribution Date
shall be allocated to the Class CE Certificates based on, and to the extent of,
one month's interest at the then applicable respective Pass-Through Rate on the
respective Notional Amount of each such Certificate.

                  For purposes of calculating the amount of Uncertificated
Interest for the REMIC I Regular Interests for any Distribution Date:

         (A)      The REMIC I Marker Allocation Percentage of the aggregate
                  amount of any Prepayment Interest Shortfalls (to the extent
                  not covered by payments by the Servicer pursuant to Section
                  3.24) and the REMIC I Marker Allocation Percentage of the
                  aggregate amount of any Relief Act Interest Shortfalls
                  incurred in respect of the Mortgage Loans for any Distribution
                  Date shall be allocated among REMIC I Regular Interest I-LTA1,
                  REMIC I Regular Interest I-LTA2, REMIC I Regular Interest
                  I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular
                  Interest I- LTM1, REMIC I Regular Interest I-LTM2, REMIC I
                  Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4,
                  REMIC I Regular Interest I-LTM5, REMIC I Regular Interest
                  I-LTM6, REMIC I Regular Interest I-LTM7 and REMIC I Regular
                  Interest I-LTZZ PRO RATA based on, and to the extent of, one
                  month's interest at the then applicable respective
                  Pass-Through Rate on the respective Uncertificated Balance of
                  each such REMIC I Regular Interest; and

         (B)      The REMIC I Sub WAC Allocation Percentage of the aggregate
                  amount of any Prepayment Interest Shortfalls (to the extent
                  not covered by payments by the Servicer pursuant to Section
                  3.24) and the REMIC I Sub WAC Allocation Percentage of the
                  aggregate amount of any Relief Act Interest Shortfalls
                  incurred in respect of the Mortgage Loans for any Distribution
                  Date shall be allocated to Uncertificated Interest payable to
                  REMIC I Regular Interest I-LT1SUB, REMIC I Regular Interest I-
                  LT1GRP, REMIC I Regular Interest I-LT2SUB, REMIC I Regular
                  Interest I- LT2GRP, REMIC I Regular Interest I-LT3SUB, REMIC I
                  Regular Interest I- LT3GRP and REMIC I Regular Interest
                  I-LTXX, pro rata based on, and to the extent of, one month's
                  interest at the then applicable respective Pass-Through Rate
                  on the respective Uncertificated Balance of each such REMIC I
                  Regular Interest.

                  SECTION 1.03 Rights of the NIMS Insurer.

                                        -53-

<PAGE>

                  Each of the rights of the NIMS Insurer set forth in this
Agreement shall exist so long as (i) the NIMS Insurer has undertaken to
guarantee certain payments of notes issued pursuant to the Indenture and (ii)
the notes issued pursuant to the Indenture remain outstanding or the NIMS
Insurer is owed amounts in respect of its guarantee of payment on such notes;
provided, however, the NIMS Insurer shall not have any rights hereunder (except
pursuant to Section 11.01 and any rights to indemnification hereunder in the
case of clause (ii) below) so long as (i) the NIMS Insurer has not undertaken to
guarantee certain payments of notes issued pursuant to the Indenture or (ii) any
default has occurred and is continuing under the insurance policy issued by the
NIMS Insurer with respect to such notes.

                                        -54-

<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

                  SECTION 2.01. Conveyance of the Mortgage Loans.

                  The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the
Trustee without recourse, for the benefit of the Certificateholders, all the
right, title and interest of the Depositor, including any security interest
therein for the benefit of the Depositor, in and to the Mortgage Loans
identified on the Mortgage Loan Schedule, the rights of the Depositor under the
Mortgage Loan Purchase Agreement, and all other assets included or to be
included in REMIC I. Such assignment includes all interest and principal
received by the Depositor or the Servicer on or with respect to the Mortgage
Loans (other than payments of principal and interest due on such Mortgage Loans
on or before the Cut-off Date). The Depositor herewith delivers to the Trustee
an executed original Mortgage Loan Purchase Agreement.

                  In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with, the Trustee (or the Custodian on
behalf of the Trustee) the following documents or instruments with respect to
each Mortgage Loan so transferred and assigned (a "Mortgage File"):

                  (i) the original Mortgage Note, endorsed in blank or in the
         following form: "Pay to the order of U.S. Bank National Association, as
         Trustee under the applicable agreement, without recourse," with all
         prior and intervening endorsements showing a complete chain of
         endorsement from the originator to the Person so endorsing to the
         Trustee;

                  (ii) the original Mortgage, noting the presence of the MIN of
         the Mortgage Loan and language indicating that the Mortgage Loan is a
         MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of recording
         thereon, and the original recorded power of attorney, if the Mortgage
         was executed pursuant to a power of attorney, with evidence of
         recording thereon;

                  (iii) unless the Mortgage Loan is registered on the MERS(R)
         System, an original Assignment in blank;

                  (iv) the original recorded Assignment or Assignments showing a
         complete chain of assignment from the originator to the Person
         assigning the Mortgage to the Trustee (or to MERS, if the Mortgage Loan
         is registered on the MERS(R) System and noting the presence of the MIN)
         as contemplated by the immediately preceding clause (iii);

                  (v) the original or copies of each assumption, modification,
         written assurance or substitution agreement, if any; and

                  (vi) the original lender's title insurance policy, together
         with all endorsements or riders that were issued with or subsequent to
         the issuance of such policy, insuring the priority

                                        -55-

<PAGE>

         of the Mortgage as a first or second lien on the Mortgaged Property
         represented therein as a fee interest vested in the Mortgagor, or in
         the event such original title policy is unavailable, a written
         commitment or uniform binder or preliminary report of title issued by
         the title insurance or escrow company.

                  With respect to a maximum of approximately 1.0% of the
Mortgage Loans, by outstanding principal balance of the Mortgage Loans as of the
Cut-off Date, if any original Mortgage Note referred to in Section 2.01(i) above
cannot be located, the obligations of the Depositor to deliver such documents
shall be deemed to be satisfied upon delivery to the Trustee (or the Custodian
on behalf of the Trustee) of a photocopy of such Mortgage Note, if available,
with a lost note affidavit substantially in the form of Exhibit I attached
hereto. If any of the original Mortgage Notes for which a lost note affidavit
was delivered to the Trustee (or the Custodian on behalf of the Trustee) is
subsequently located, such original Mortgage Note shall be delivered to the
Trustee (or the Custodian on behalf of the Trustee) within three Business Days.

                  Except with respect to any Mortgage Loan for which MERS is
identified on the Mortgage or on a properly recorded assignment of the Mortgage
as the mortgagee of record, the Trustee shall promptly (within sixty Business
Days following the later of the Closing Date and the date of receipt by the
Trustee or the Custodian of the recording information for a Mortgage, but in no
event later than ninety days following the Closing Date) enforce the obligations
of the Originator pursuant to the terms of the Mortgage Loan Purchase Agreement
to submit or cause to be submitted for recording, at no expense to the Trust
Fund, the Trustee, the Custodian, the Servicer or the Depositor, in the
appropriate public office for real property records, each Assignment referred to
in Sections 2.01(iii) and (iv) above and in connection therewith, the Trustee
shall enforce the obligation of the Originator pursuant to the terms of the
Mortgage Loan Purchase Agreement to execute each original Assignment in the
following form: "U.S. Bank National Association, as Trustee under the applicable
agreement." In the event that any such Assignment is lost or returned unrecorded
because of a defect therein, the Trustee shall enforce the obligation of the
Originator pursuant to the Mortgage Loan Purchase Agreement to promptly prepare
or cause to be prepared a substitute Assignment or cure or cause to be cured
such defect, as the case may be, and thereafter cause each such Assignment to be
duly recorded.

                  In connection with the assignment of any Mortgage Loan
registered on the MERS(R) System, the Depositor further agrees that it will
cause, within 30 Business Days after the Closing Date, the MERS(R) System to
indicate that such Mortgage Loans have been assigned by the Depositor to the
Trustee in accordance with this Agreement for the benefit of the
Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this Agreement) in such computer files
(a) the code in the field which identifies the specific Trustee and (b) the code
in the field "Pool Field" which identifies the series of the Certificates issued
in connection with such Mortgage Loans. The Depositor further agrees that it
will not, and will not permit the Servicer to, and the Servicer agrees that it
will not, alter the codes referenced in this paragraph with respect to any
Mortgage Loan during the term of this Agreement unless and until such Mortgage
Loan is repurchased in accordance with the terms of this Agreement.

                  If any of the documents referred to in Sections 2.01(ii),
(iii) or (iv) has, as of the Closing Date, been submitted for recording but
either (x) has not been returned from the applicable

                                        -56-

<PAGE>

public recording office or (y) has been lost or such public recording office has
retained the original of such document, the obligations of the Depositor to
deliver such documents shall be deemed to be satisfied upon (1) delivery to the
Trustee (or the Custodian on behalf of the Trustee) of a copy of each such
document certified by the Originator in the case of (x) above or the applicable
public recording office in the case of (y) above to be a true and complete copy
of the original that was submitted for recording and (2) if such copy is
certified by the Originator, delivery to the Trustee (or the Custodian on behalf
of the Trustee) promptly upon receipt thereof of either the original or a copy
of such document certified by the applicable public recording office to be a
true and complete copy of the original. Pursuant to the Mortgage Loan Purchase
Agreement, notice shall be provided to the Trustee and the Rating Agencies by
the Originator if delivery pursuant to clause (2) above will be made more than
180 days after the Closing Date.

                  If the original lender's title insurance policy was not
delivered pursuant to Section 2.01(vi) above, the Depositor shall deliver or
cause to be delivered to the Trustee (or the Custodian on behalf of the
Trustee), promptly after receipt thereof, the original lender's title insurance
policy. The Depositor shall deliver or cause to be delivered to the Trustee (or
the Custodian on behalf of the Trustee) promptly upon receipt thereof any other
original documents constituting a part of a Mortgage File received with respect
to any Mortgage Loan, including, but not limited to, any original documents
evidencing an assumption or modification of any Mortgage Loan.

                  All original documents relating to the Mortgage Loans that are
not delivered to the Trustee (or the Custodian on behalf of the Trustee) are and
shall be held by or on behalf of the Originator, the Seller, the Depositor or
the Servicer, as the case may be, in trust for the benefit of the Trustee on
behalf of the Certificateholders. In the event that any such original document
is required pursuant to the terms of this Section 2.01 to be a part of a
Mortgage File, such document shall be delivered promptly to the Trustee (or the
Custodian on behalf of the Trustee). Any such original document delivered to or
held by the Depositor that is not required pursuant to the terms of this Section
to be a part of a Mortgage File, shall be delivered promptly to the Servicer.

                  The Depositor and the Trustee hereto understand and agree that
it is not intended that any Mortgage Loan be included in the Trust that is a
"High-Cost Home Loan" as defined by the Homeownership and Equity Protection Act
of 1994 or any other applicable predatory or abusive lending laws.

                  The Depositor hereby directs the Trustee to, and the Trustee
hereby agrees to execute, deliver and perform its obligations under each of the
Cap Contracts on the Closing Date and thereafter on behalf of the Holders of the
Class A-1 Certificates, the Class A-2 Certificates, the Group III Certificates
and the Mezzanine Certificates. The Depositor, the Servicer and the Holders of
the Class A-1 Certificates, the Class A-2 Certificates, the Group III
Certificates and the Mezzanine Certificates by their acceptance of such
Certificates acknowledge and agree that the Trustee shall execute, deliver and
perform its obligations under each of the Cap Contracts and shall do so solely
in its capacity as Trustee of the Trust Fund and not in its individual capacity.

                  SECTION 2.02. Acceptance of REMIC I by Trustee.

                  The Trustee acknowledges receipt (or receipt by the Custodian
as the duly appointed

                                        -57-

<PAGE>

agent of the Trustee), subject to the provisions of Section 2.01 and subject to
any exceptions noted on the exception report described in the next paragraph
below, the documents referred to in Section 2.01 (other than such documents
described in Section 2.01(v)) above and all other assets included in the
definition of "REMIC I" under clauses (i), (iii), (iv) and (v) (to the extent of
amounts deposited into the Distribution Account) and declares that it holds and
will hold such documents and the other documents delivered to it constituting a
Mortgage File, and that it holds or will hold all such assets and such other
assets included in the definition of "REMIC I" in trust for the exclusive use
and benefit of all present and future Certificateholders.

                  The Trustee (or the Custodian on behalf of the Trustee) agrees
to execute and deliver to the Depositor and the NIMS Insurer on or prior to the
Closing Date an acknowledgment of receipt of the original Mortgage Note (with
any exceptions noted), substantially in the form attached as Exhibit C-3 hereto.

                  The Trustee (or the Custodian on behalf of the Trustee)
agrees, for the benefit of the Certificateholders and the NIMS Insurer, to
review each Mortgage File and, within 45 days of the Closing Date; to certify in
substantially the form attached hereto as Exhibit C-1 (or cause the Custodian to
certify in the form of the Initial Certification attached to the Custodial
Agreement) that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or any Mortgage Loan specifically
identified in the exception report annexed thereto as not being covered by such
certification), (i) all documents constituting part of such Mortgage File (other
than such documents described in Section 2.01(v)) required to be delivered to it
pursuant to this Agreement are in its possession, (ii) such documents have been
reviewed by it or the Custodian and appear regular on their face and relate to
such Mortgage Loan and (iii) based on its or the Custodian's examination and
only as to the foregoing, the information set forth in the Mortgage Loan
Schedule that corresponds to items (1), (3), (12), (15) and (18) of the
definition of "Mortgage Loan Schedule" accurately reflects information set forth
in the Mortgage File. It is herein acknowledged that, in conducting such review,
the Trustee (or the Custodian on behalf of the Trustee) is under no duty or
obligation (i) to inspect, review or examine any such documents, instruments,
certificates or other papers to determine whether they are genuine, enforceable,
or appropriate for the represented purpose or whether they have actually been
recorded or that they are other than what they purport to be on their face or
(ii) to determine whether any Mortgage File should include any of the documents
specified in clause (v) of Section 2.01.

                  Prior to the first anniversary date of this Agreement the
Trustee shall deliver to the Depositor, the NIMS Insurer and the Servicer a
final certification in the form annexed hereto as Exhibit C-2 (or shall cause
the Custodian to deliver to the Depositor, the NIMS Insurer and the Servicer a
final certification in the form attached to the Custodial Agreement) evidencing
the completeness of the Mortgage Files, with any applicable exceptions noted
thereon, and the Servicer shall forward a copy thereof to any Sub-Servicer.

                  If in the process of reviewing the Mortgage Files and making
or preparing, as the case may be, the certifications referred to above, the
Trustee (or the Custodian on behalf of the Trustee) finds any document or
documents constituting a part of a Mortgage File to be missing or defective in
any material respect, at the conclusion of its review the Trustee (or the
Custodian on behalf of the Trustee) shall so notify the Depositor, the NIMS
Insurer and the Servicer. In addition, upon the

                                        -58-

<PAGE>

discovery by the Depositor, the NIMS Insurer, the Servicer or the Trustee of a
breach of any of the representations and warranties made by the Originator or
the Seller in the Mortgage Loan Purchase Agreement in respect of any Mortgage
Loan which materially adversely affects such Mortgage Loan or the interests of
the related Certificateholders in such Mortgage Loan, the party discovering such
breach shall give prompt written notice to the other parties.

                  The Trustee (or the Custodian on behalf of the Trustee) shall,
at the written request and expense of any Certificateholder, provide a written
report to such Certificateholder of all Mortgage Files released to the Servicer
for servicing purposes.

                  The Depositor and the Trustee intend that the assignment and
transfer herein contemplated constitute a sale of the Mortgage Loans, the
related Mortgage Notes and the related documents, conveying good title thereto
free and clear of any liens and encumbrances, from the Depositor to the Trustee
in trust for the benefit of the Certificateholders and that such property not be
part of the Depositor's estate or property of the Depositor in the event of any
insolvency by the Depositor. In the event that such conveyance is deemed to be,
or to be made as security for, a loan, the parties intend that the Depositor
shall be deemed to have granted and does hereby grant to the Trustee a first
priority perfected security interest in all of the Depositor's right, title and
interest in and to the Mortgage Loans, the related Mortgage Notes and the
related documents, and that this Agreement shall constitute a security agreement
under applicable law.

                  SECTION 2.03. Repurchase or Substitution of Mortgage Loans by
                                the Originator or the Seller.

                  (a) Upon discovery or receipt of notice of any materially
defective document in, or that a document is missing from, a Mortgage File or of
the breach by the Originator or the Seller of any representation, warranty or
covenant under the Mortgage Loan Purchase Agreement (including any
representation, warranty or covenant regarding the Prepayment Charge Schedule)
in respect of any Mortgage Loan that materially adversely affects the value of
such Mortgage Loan or the interest therein of the Certificateholders, the
Trustee shall promptly notify the Originator, the NIMS Insurer, the Seller and
the Servicer of such defect, missing document or breach and request that the
Originator or the Seller, as applicable, deliver such missing document or cure
such defect or breach within 90 days from the date the Originator or the Seller,
as applicable, was notified of such missing document, defect or breach, and if
the Originator or the Seller, as applicable, does not deliver such missing
document or cure such defect or breach in all material respects during such
period, the Trustee shall enforce the obligations of the Originator or the
Seller, as applicable, under the Mortgage Loan Purchase Agreement to repurchase
such Mortgage Loan from REMIC I at the Purchase Price within 90 days after the
date on which the Originator or the Seller, as applicable, was notified (subject
to Section 2.03(c)) of such missing document, defect or breach, if and to the
extent that the Originator or the Seller, as applicable, is obligated to do so
under the Mortgage Loan Purchase Agreement. The Purchase Price for the
repurchased Mortgage Loan shall be remitted to the Servicer for deposit in the
Collection Account and the Trustee (or the Custodian on behalf of the Trustee),
upon receipt of written certification from the Servicer of such deposit, shall
release to the Originator or the Seller, as applicable, the related Mortgage
File and the Trustee (or the Custodian on behalf of the Trustee) shall execute
and deliver such instruments of transfer or assignment, in each case without
recourse, as the Originator or the Seller, as applicable, shall furnish to it
and as

                                      -59-

<PAGE>

shall be necessary to vest in the Originator or the Seller, as applicable, any
Mortgage Loan released pursuant hereto. In furtherance of the foregoing, if the
Originator or the Seller, as applicable, is not a member of MERS and repurchases
a Mortgage Loan which is registered on the MERS(R) System, the Originator or the
Seller, as applicable, at its own expense and without any right of
reimbursement, shall cause MERS to execute and deliver an assignment of the
Mortgage in recordable form to transfer the Mortgage from MERS to the Originator
or the Seller, as applicable, and shall cause such Mortgage to be removed from
registration on the MERS(R) System in accordance with MERS' rules and
regulations. Neither the Trustee nor the Custodian shall have any further
responsibility with regard to such Mortgage File. In lieu of repurchasing any
such Mortgage Loan as provided above, if so provided in the Mortgage Loan
Purchase Agreement, the Originator or the Seller, as applicable, may cause such
Mortgage Loan to be removed from REMIC I (in which case it shall become a
Deleted Mortgage Loan) and substitute one or more Qualified Substitute Mortgage
Loans in the manner and subject to the limitations set forth in Section 2.03(b);
provided, however, the Originator or the Seller, as applicable, may not
substitute a Qualified Substitute Mortgage Loan for any Deleted Mortgage Loan
that violates any predatory or abusive lending law. It is understood and agreed
that the obligation of the Originator or the Seller, as applicable, to cure or
to repurchase (or to substitute for) any Mortgage Loan as to which a document is
missing, a material defect in a constituent document exists or as to which such
a breach has occurred and is continuing shall constitute the sole remedy
respecting such omission, defect or breach available to the Trustee and the
Certificateholders.

                  (b) Any substitution of Qualified Substitute Mortgage Loans
for Deleted Mortgage Loans made pursuant to Section 2.03(a) must be effected
prior to the date which is two years after the Startup Day for REMIC I.

                  As to any Deleted Mortgage Loan for which the Originator or
the Seller, as applicable, substitutes a Qualified Substitute Mortgage Loan or
Loans, such substitution shall be effected by the Originator or the Seller, as
applicable, delivering to the Trustee (or the Custodian on behalf of the
Trustee), for such Qualified Substitute Mortgage Loan or Loans, the Mortgage
Note, the Mortgage, the Assignment in blank or to the Trustee, and such other
documents and agreements, with all necessary endorsements thereon, as are
required by Section 2.01, together with an Officers' Certificate providing that
each such Qualified Substitute Mortgage Loan satisfies the definition thereof
and specifying the Substitution Adjustment Amount (as described below), if any,
in connection with such substitution. The Trustee (or the Custodian on behalf of
the Trustee) shall acknowledge receipt for such Qualified Substitute Mortgage
Loan or Loans and, within ten Business Days thereafter, review such documents as
specified in Section 2.02 and deliver to the Depositor, the NIMS Insurer and the
Servicer, with respect to such Qualified Substitute Mortgage Loan or Loans, a
certification substantially in the form attached hereto as Exhibit C-1, with any
applicable exceptions noted thereon. Within one year of the date of
substitution, the Trustee (or the Custodian on behalf of the Trustee) shall
deliver to the Depositor, the NIMS Insurer and the Servicer a certification
substantially in the form of Exhibit C-2 hereto with respect to such Qualified
Substitute Mortgage Loan or Loans, with any applicable exceptions noted thereon.
Monthly Payments due with respect to Qualified Substitute Mortgage Loans in the
month of substitution are not part of REMIC I and will be retained by the
Originator or the Seller, as applicable. For the month of substitution,
distributions to Certificateholders will reflect the Monthly Payment due on such
Deleted Mortgage Loan on or before the Due Date in the month of substitution,
and the Originator or the Seller, as

                                        -60-

<PAGE>

applicable, shall thereafter be entitled to retain all amounts subsequently
received in respect of such Deleted Mortgage Loan. The Depositor shall give or
cause to be given written notice to the Certificateholders and the NIMS Insurer
that such substitution has taken place, shall amend the Mortgage Loan Schedule
to reflect the removal of such Deleted Mortgage Loan from the terms of this
Agreement and the substitution of the Qualified Substitute Mortgage Loan or
Loans and shall deliver a copy of such amended Mortgage Loan Schedule to the
Trustee, the Custodian, the Servicer and the NIMS Insurer. Upon such
substitution, such Qualified Substitute Mortgage Loan or Loans shall constitute
part of the Mortgage Pool and shall be subject in all respects to the terms of
this Agreement and the Mortgage Loan Purchase Agreement, including, all
applicable representations and warranties thereof included in the Mortgage Loan
Purchase Agreement.

                  For any month in which the Originator or the Seller, as
applicable, substitutes one or more Qualified Substitute Mortgage Loans for one
or more Deleted Mortgage Loans, the Servicer will determine the amount (the
"Substitution Adjustment Amount"), if any, by which the aggregate Purchase Price
of all such Deleted Mortgage Loans exceeds the aggregate of, as to each such
Qualified Substitute Mortgage Loan, the Stated Principal Balance thereof as of
the date of substitution, together with one month's interest on such Stated
Principal Balance at the applicable Net Mortgage Rate, plus all outstanding
Advances and Servicing Advances (including Nonrecoverable Advances and
Nonrecoverable Servicing Advances) related thereto. On the date of such
substitution, the Originator or the Seller, as applicable, will deliver or cause
to be delivered to the Servicer for deposit in the Collection Account an amount
equal to the Substitution Adjustment Amount, if any, and the Trustee (or the
Custodian on behalf of the Trustee), upon receipt of the related Qualified
Substitute Mortgage Loan or Loans and written notice by the Servicer of such
deposit, shall release to the Originator or the Seller, as applicable, the
related Mortgage File or Files and the Trustee (or the Custodian on behalf of
the Trustee) shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, the Originator or the Seller, as
applicable, shall deliver to it and as shall be necessary to vest therein any
Deleted Mortgage Loan released pursuant hereto.

                  In addition, the Originator or the Seller, as applicable,
shall obtain at its own expense and deliver to the Trustee and the NIMS Insurer
an Opinion of Counsel to the effect that such substitution will not cause (a)
any federal tax to be imposed on any Trust REMIC, including without limitation,
any federal tax imposed on "prohibited transactions" under Section 860F(a)(1) of
the Code or on "contributions after the startup date" under Section 860G(d)(1)
of the Code, or (b) any Trust REMIC to fail to qualify as a REMIC at any time
that any Certificate is outstanding.

                  (c) Upon discovery by the Depositor, the NIMS Insurer, the
Originator, the Seller, the Servicer or the Trustee that any Mortgage Loan does
not constitute a "qualified mortgage" within the meaning of Section 860G(a)(3)
of the Code, the party discovering such fact shall within two Business Days give
written notice thereof to the other parties hereto and the Trustee shall give
written notice to the Originator and the Seller. In connection therewith, the
Originator, the Seller or the Depositor shall repurchase or, subject to the
limitations set forth in Section 2.03(b), substitute one or more Qualified
Substitute Mortgage Loans for the affected Mortgage Loan within 90 days of the
earlier of discovery or receipt of such notice with respect to such affected
Mortgage Loan. Such repurchase or substitution shall be made by (i) the
Originator or the Seller, as the case may be, if the affected Mortgage Loan's
status as a non-qualified mortgage is or results from a breach of any

                                      -61-

<PAGE>

representation, warranty or covenant made by the Originator or the Seller, as
the case may be, under the Mortgage Loan Purchase Agreement, or (ii) the
Depositor, if the affected Mortgage Loan's status as a non-qualified mortgage is
a breach of no representation or warranty. Any such repurchase or substitution
shall be made in the same manner as set forth in Section 2.03(a). The Trustee
(or the Custodian on behalf of the Trustee) shall reconvey to the Depositor, the
Originator or the Seller, as the case may be, the Mortgage Loan to be released
pursuant hereto in the same manner, and on the same terms and conditions, as it
would a Mortgage Loan repurchased for breach of a representation or warranty.

                  SECTION 2.04. Reserved

                  SECTION 2.05. Representations, Warranties and Covenants of the
                                Servicer.

                  The Servicer hereby represents, warrants and covenants to the
Trustee, for the benefit of each of the Trustee and the Certificateholders, and
to the Depositor that as of the Closing Date or as of such date specifically
provided herein:

                  (i) The Servicer is duly organized, validly existing, and in
         good standing under the laws of the jurisdiction of its formation and
         has all licenses necessary to carry on its business as now being
         conducted and is licensed, qualified and in good standing in the states
         where the Mortgaged Property is located if the laws of such state
         require licensing or qualification in order to conduct business of the
         type conducted by the Servicer or to ensure the enforceability or
         validity of each Mortgage Loan; the Servicer has the power and
         authority to execute and deliver this Agreement and to perform in
         accordance herewith; the execution, delivery and performance of this
         Agreement (including all instruments of transfer to be delivered
         pursuant to this Agreement) by the Servicer and the consummation of the
         transactions contemplated hereby have been duly and validly authorized;
         this Agreement evidences the valid, binding and enforceable obligation
         of the Servicer, subject to applicable bankruptcy, insolvency,
         reorganization, moratorium or other similar laws affecting the
         enforcement of creditors' rights generally; and all requisite corporate
         action has been taken by the Servicer to make this Agreement valid and
         binding upon the Servicer in accordance with its terms;

                  (ii) The consummation of the transactions contemplated by this
         Agreement are in the ordinary course of business of the Servicer and
         will not result in the material breach of any term or provision of the
         charter or by-laws of the Servicer or result in the breach of any term
         or provision of, or conflict with or constitute a default under or
         result in the acceleration of any obligation under, any material
         agreement, indenture or loan or credit agreement or other instrument to
         which the Servicer or its property is subject, or result in the
         violation of any law, rule, regulation, order, judgment or decree to
         which the Servicer or its property is subject;

                  (iii) The execution and delivery of this Agreement by the
         Servicer and the performance and compliance with its obligations and
         covenants hereunder do not require the consent or approval of any
         governmental authority or, if such consent or approval is required, it
         has been obtained;

                                        -62-

<PAGE>

                  (iv) This Agreement, and all documents and instruments
         contemplated hereby which are executed and delivered by the Servicer,
         constitute and will constitute valid, legal and binding obligations of
         the Servicer, enforceable in accordance with their respective terms,
         except as the enforcement thereof may be limited by applicable
         bankruptcy laws and general principles of equity;

                  (v) The Servicer does not believe, nor does it have any reason
         or cause to believe, that it cannot perform each and every covenant
         contained in this Agreement

                  (vi) There is no action, suit, proceeding or investigation
         pending or, to its knowledge, threatened against the Servicer that,
         either individually or in the aggregate, (A) may result in any change
         in the business, operations, financial condition, properties or assets
         of the Servicer that might prohibit or materially and adversely affect
         the performance by such Servicer of its obligations under, or validity
         or enforceability of, this Agreement, or (B) may result in any material
         impairment of the right or ability of the Servicer to carry on its
         business substantially as now conducted, or (C) would draw into
         question the validity or enforceability of this Agreement or of any
         action taken or to be taken in connection with the obligations of the
         Servicer contemplated herein, or (D) would otherwise be likely to
         impair materially the ability of the Servicer to perform under the
         terms of this Agreement;

                  (vii) No information, certificate of an officer, statement
         furnished in writing or report delivered to the Trustee by the Servicer
         in connection with the transactions contemplated hereby contains any
         untrue statement of a material fact;

                  (viii) The Servicer covenants that its computer and other
         systems used in servicing the Mortgage Loans operate in a manner such
         that the Servicer can service the Mortgage Loans in accordance with the
         terms of this Agreement;

                  (ix) The Servicer will not waive any Prepayment Charge unless
         it is waived in accordance with the standard set forth in Section 3.01;

                  (x) The Servicer has accurately and fully reported, and will
         continue to accurately and fully report on a monthly basis, its
         borrower credit files to each of the three national credit repositories
         in a timely manner; and

                  (xii) The Servicer is a member of MERS in good standing, and
         will comply in all material respects with the rules and procedures of
         MERS in connection with the servicing of the Mortgage Loans that are
         registered with MERS.

                  It is understood and agreed that the representations,
warranties and covenants set forth in this Section 2.05 shall survive delivery
of the Mortgage Files to the Trustee or the Custodian and shall inure to the
benefit of the Trustee, the Depositor and the Certificateholders. Upon discovery
by any of the Depositor, the Servicer, the NIMS Insurer or the Trustee of a
breach of any of the foregoing representations, warranties and covenants which
materially and adversely affects the value of any Mortgage Loan or the interests
therein of the Certificateholders, the party discovering such breach shall give
prompt written notice (but in no event later than two Business Days following
such

                                      -63-

<PAGE>

discovery) to the Servicer, the NIMS Insurer and the Trustee. Notwithstanding
the foregoing, within 90 days of the earlier of discovery by the Servicer or
receipt of notice by the Servicer of the breach of the representation or
covenant of the Servicer set forth in Section 2.05(ix) above which materially
and adversely affects the interests of the Holders of the Class P Certificates
in any Prepayment Charge, the Servicer must pay the amount of such waived
Prepayment Charge, for the benefit of the Holders of the Class P Certificates,
by depositing such amount into the Collection Account. The foregoing shall not,
however, limit any remedies available to the Certificateholders, the Depositor
or the Trustee on behalf of the Certificateholders, pursuant to the Mortgage
Loan Purchase Agreement respecting a breach of the representations, warranties
and covenants of the Originator made in its capacity as a party to the Mortgage
Loan Purchase Agreement.

                  SECTION 2.06. Conveyance of REMIC Regular Interests and
                                Acceptance of REMIC I, REMIC II, REMIC III and
                                REMIC IV by the Trustee; Issuance of
                                Certificates.

                  (a) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all the right, title and interest of the
Depositor in and to the assets described in the definition of REMIC I for the
benefit of the holders of the REMIC I Regular Interests (which are
uncertificated) and the Class R Certificates (in respect of the Class R-I
Interest). The Trustee acknowledges receipt of the assets described in the
definition of REMIC I and declares that it holds and will hold the same in trust
for the exclusive use and benefit of the holders of the REMIC I Regular
Interests and the Class R Certificates (in respect of the Class R-I Interest).
The interests evidenced by the Class R-I Interest, together with the REMIC I
Regular Interests, constitute the entire beneficial ownership interest in REMIC
I.

                  (b) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all the right, title and interest of the
Depositor in and to the REMIC I Regular Interests (which are uncertificated) for
the benefit of the Holders of the REMIC II Regular Interests and the Class R
Certificates (in respect of the Class R-II Interest). The Trustee acknowledges
receipt of the REMIC I Regular Interests and declares that it holds and will
hold the same in trust for the exclusive use and benefit of the Holders of the
REMIC II Regular Interests and the Class R Certificates (in respect of the Class
R-II Interest). The interests evidenced by the Class R-II Interest, together
with the Regular Certificates (other than the Class CE Certificates and the
Class P Certificates), the Class CE Interest and the Class P Interest,
constitute the entire beneficial ownership interest in REMIC II.

                  (c) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all the right, title and interest of the
Depositor in and to the Class CE Interest (which is uncertificated) for the
benefit of the Holders of the Class CE Certificates and the Class R-X
Certificates (in respect of the Class R-III Interest). The Trustee acknowledges
receipt of the Class CE Interest and declares that it holds and will hold the
same in trust for the exclusive use and benefit of the Holders of the Class CE
Certificates and the Class R-X Certificates (in respect of the Class R-III
Interest). The interests evidenced by the Class R-III Interest, together with
the Class CE Certificates, constitute the entire beneficial ownership interest
in REMIC III.

                                        -64-

<PAGE>

                  (d) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all the right, title and interest of the
Depositor in and to the Class P Interest (which is uncertificated) for the
benefit of the Holders of the Class P Certificates and the Class R-X
Certificates (in respect of the Class R-IV Interest). The Trustee acknowledges
receipt of the Class P Interest and declares that it holds and will hold the
same in trust for the exclusive use and benefit of the Holders of the Class P
Certificates and the Class R-X Certificates (in respect of the Class R-IV
Interest). The interests evidenced by the Class R-IV Interest, together with the
Class P Certificates, constitute the entire beneficial ownership interest in
REMIC IV.

                  SECTION 2.07. Issuance of Class R Certificates and Class R-X
                                Certificates.

                  (a) The Trustee acknowledges the assignment to it of the REMIC
I Regular Interests and, concurrently therewith and in exchange therefor,
pursuant to the written request of the Depositor executed by an officer of the
Depositor, the Trustee has executed, authenticated and delivered to or upon the
order of the Depositor, the Class R Certificates in authorized denominations.
The interests evidenced by the Class R Certificates, together with the REMIC II
Certificates, constitute the entire beneficial ownership interest in REMIC II.

                  (b) The Trustee acknowledges the assignment to it of the Class
CE Interest and the Class P Interest and, concurrently therewith and in exchange
therefor, pursuant to the written request of the Depositor executed by an
officer of the Depositor, the Trustee has executed, authenticated and delivered
to or upon the order of the Depositor, the Class R-X Certificates in authorized
denominations. The interests evidenced by the Class R-X Certificates, together
with the Class CE Certificates and the Class P Certificates constitute the
entire beneficial ownership interest in REMIC III and REMIC IV.

                                      -65-

<PAGE>

                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                              OF THE MORTGAGE LOANS

                  SECTION 3.01. Servicer to Act as Servicer.

                  The Servicer shall service and administer the Mortgage Loans
on behalf of the Trust Fund and in the best interests of and for the benefit of
the Certificateholders (as determined by the Servicer in its reasonable
judgment) in accordance with the terms of this Agreement and the Mortgage Loans
and, to the extent consistent with such terms, in the same manner in which it
services and administers similar mortgage loans for its own portfolio, giving
due consideration to customary and usual standards of practice of mortgage
lenders and loan servicers administering similar mortgage loans but without
regard to:

                  (i) any relationship that the Servicer, any Sub-Servicer or
         any Affiliate of the Servicer or any Sub-Servicer may have with the
         related Mortgagor;

                  (ii) the ownership or non-ownership of any Certificate by the
         Servicer or any Affiliate of the Servicer;

                  (iii) the Servicer's obligation to make Advances or Servicing
         Advances; or

                  (iv) the Servicer's or any Sub-Servicer's right to receive
         compensation for its services hereunder or with respect to any
         particular transaction.

                  To the extent consistent with the foregoing, the Servicer (a)
shall seek to maximize the timely and complete recovery of principal and
interest on the Mortgage Notes and (b) shall waive (or permit a Sub-Servicer to
waive) a Prepayment Charge only under the following circumstances: (i) such
waiver is standard and customary in servicing similar Mortgage Loans and such
waiver relates to a default or a reasonably foreseeable default and would, in
the reasonable judgment of the Servicer, maximize recovery of total proceeds
taking into account the value of such Prepayment Charge and the related Mortgage
Loan, (ii) the collection of such Prepayment Charge would be in violation of
applicable laws, (iii) the amount of the Prepayment Charge set forth on the
Prepayment Charge Schedule is not consistent with the related Mortgage Note or
is otherwise unenforceable or (iv) the collection of such Prepayment Charge
would be considered "predatory" pursuant to written guidance published or issued
by any applicable federal, state or local regulatory authority acting in its
official capacity and having jurisdiction over such matters. If a Prepayment
Charge is waived as permitted by meeting the standard described in clauses (ii),
(iii) or (iv) above, then the Trustee shall enforce the obligation of the
Originator to pay the amount of such waived Prepayment Charge to the Servicer
for deposit in the Collection Account for the benefit of the Holders of the
Class P Certificates. Subject only to the above-described servicing standards
and the terms of this Agreement and of the Mortgage Loans, the Servicer shall
have full power and authority, acting alone or through Sub-Servicers as provided
in Section 3.02, to do or cause to be done any and all things in connection with
such servicing and administration which it may deem necessary or desirable.
Without limiting the generality of the foregoing, the Servicer in its own name
or in the name of a

                                      -66-

<PAGE>

Sub-Servicer is hereby authorized and empowered by the Trustee when the Servicer
believes it appropriate in its best judgment in accordance with the servicing
standards set forth above, to execute and deliver, on behalf of the
Certificateholders and the Trustee, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge, and all other
comparable instruments, with respect to the Mortgage Loans and the Mortgaged
Properties and to institute foreclosure proceedings or obtain a deed-in-lieu of
foreclosure so as to convert the ownership of such properties, and to hold or
cause to be held title to such properties, on behalf of the Trustee and
Certificateholders. The Servicer shall service and administer the Mortgage Loans
in accordance with applicable state and federal law and shall provide to the
Mortgagors any reports required to be provided to them thereby. The Servicer
shall also comply in the performance of this Agreement with all reasonable rules
and requirements of each insurer under any standard hazard insurance policy.
Subject to Section 3.17, within fifteen (15) days of the Closing Date, the
Trustee shall execute, at the written request of the Servicer, and furnish to
the Servicer and any Sub-Servicer any special or limited powers of attorney and
other documents necessary or appropriate to enable the Servicer or any
Sub-Servicer to carry out their servicing and administrative duties hereunder;
PROVIDED, such limited powers of attorney or other documents shall be prepared
by the Servicer and submitted to the Trustee for execution. The Trustee shall
not be liable for the actions of the Servicer or any Sub- Servicers under such
powers of attorney.

                  The Servicer further is authorized and empowered by the
Trustee, on behalf of the Certificateholders and the Trustee, in its own name or
in the name of the Sub-Servicer, when the Servicer or the Sub-Servicer, as the
case may be, believes it is appropriate in its best judgment to register any
Mortgage Loan on the MERS(R) System, or cause the removal from the registration
of any Mortgage Loan on the MERS(R) System, to execute and deliver, on behalf of
the Trustee and the Certificateholders or any of them, any and all instruments
of assignment and other comparable instruments with respect to such assignment
or re-recording of a Mortgage in the name of MERS, solely as nominee for the
Trustee and its successors and assigns. Any reasonable expenses incurred in
connection with the actions described in the preceding sentence or as a result
of MERS discontinuing or becoming unable to continue operations in connection
with the MERS(R) System, shall be reimbursable to the Servicer by withdrawal
from the Collection Account pursuant to Section 3.11.

                  Subject to Section 3.09 hereof, in accordance with the
standards of the preceding paragraph, the Servicer, on escrowed accounts, shall
advance or cause to be advanced funds as necessary for the purpose of effecting
the payment of taxes and assessments on the Mortgaged Properties, which advances
shall be Servicing Advances reimbursable in the first instance from related
collections from the Mortgagors pursuant to Section 3.09, and further as
provided in Section 3.11. Any cost incurred by the Servicer or by Sub-Servicers
in effecting the payment of taxes and assessments on a Mortgaged Property shall
not, for the purpose of calculating distributions to Certificateholders, be
added to the unpaid Stated Principal Balance of the related Mortgage Loan,
notwithstanding that the terms of such Mortgage Loan so permit.

                  Notwithstanding anything in this Agreement to the contrary,
the Servicer may not make any future advances with respect to a Mortgage Loan
(except as provided in Section 4.03) and the Servicer shall not (i) permit any
modification with respect to any Mortgage Loan that would change the Mortgage
Rate, reduce or increase the Stated Principal Balance (except for reductions

                                      -67-

<PAGE>

resulting from actual payments of principal) or change the final maturity date
on such Mortgage Loan (unless, as provided in Section 3.07, the Mortgagor is in
default with respect to the Mortgage Loan or such default is, in the judgment of
the Servicer, reasonably foreseeable) or (ii) permit any modification, waiver or
amendment of any term of any Mortgage Loan that would both (A) effect an
exchange or reissuance of such Mortgage Loan under Section 1001 of the Code (or
Treasury regulations promulgated thereunder) and (B) cause any REMIC created
hereunder to fail to qualify as a REMIC under the Code or the imposition of any
tax on "prohibited transactions" or "contributions after the startup date" under
the REMIC Provisions.

                  Notwithstanding anything in this Agreement to the contrary and
notwithstanding its ability to do so pursuant to the terms of the related
mortgage note, the Servicer shall not be required to enforce any provision in
any mortgage note the enforcement of which would violate federal, state or local
laws or ordinances designed to discourage predatory lending practices.

                  SECTION 3.02. Sub-Servicing Agreements Between Servicer and
                                Sub- Servicers.

                  (a) The Servicer may enter into Sub-Servicing Agreements with
Sub-Servicers, which may be Affiliates of the Servicer, for the servicing and
administration of the Mortgage Loans; provided, however, that (i) such
sub-servicing arrangement and the terms of the related Sub- Servicing Agreement
must provide for the servicing of the Mortgage Loans in a manner consistent with
the servicing arrangement contemplated hereunder and (ii) the NIMS Insurer shall
have consented to such Sub-Servicing Agreement. The Trustee is hereby authorized
to acknowledge, at the request of the Servicer, any Sub-Servicing Agreement that
meets the requirements applicable to Sub-Servicing Agreements set forth in this
Agreement and that is otherwise permitted under this Agreement.

                  Each Sub-Servicer shall be (i) authorized to transact business
in the state or states where the related Mortgaged Properties it is to service
are situated, if and to the extent required by applicable law to enable the
Sub-Servicer to perform its obligations hereunder and under the Sub- Servicing
Agreement and (ii) a Freddie Mac or Fannie Mae approved mortgage servicer. Each
Sub- Servicing Agreement must impose on the Sub-Servicer requirements conforming
to the provisions set forth in Section 3.08 and provide for servicing of the
Mortgage Loans consistent with the terms of this Agreement. The Servicer will
examine each Sub-Servicing Agreement and will be familiar with the terms
thereof. The terms of any Sub-Servicing Agreement will not be inconsistent with
any of the provisions of this Agreement. Any material variations in any
Sub-Servicing Agreements from the provisions set forth in Section 3.08 relating
to insurance or priority requirements of Sub- Servicing Accounts, or credits and
charges to the Sub-Servicing Accounts or the timing and amount of remittances by
the Sub-Servicers to the Servicer, are conclusively deemed to be inconsistent
with this Agreement and therefore prohibited. The Servicer shall deliver to the
NIMS Insurer and the Trustee copies of all Sub-Servicing Agreements, and any
amendments or modifications thereof, promptly upon the Servicer's execution and
delivery of such instruments.

                  (b) As part of its servicing activities hereunder, the
Servicer, for the benefit of the Trustee and the Certificateholders, shall
enforce the obligations of each Sub-Servicer under the related Sub-Servicing
Agreement, including, without limitation, any obligation to make advances

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in respect of delinquent payments as required by a Sub-Servicing Agreement. Such
enforcement, including, without limitation, the legal prosecution of claims,
termination of Sub-Servicing Agreements, and the pursuit of other appropriate
remedies, shall be in such form and carried out to such an extent and at such
time as the Servicer, in its good faith business judgment, would require were it
the owner of the related Mortgage Loans. The Servicer shall pay the costs of
such enforcement at its own expense, and shall be reimbursed therefor only (i)
from a general recovery resulting from such enforcement, to the extent, if any,
that such recovery exceeds all amounts due in respect of the related Mortgage
Loans, or (ii) from a specific recovery of costs, expenses or attorneys' fees
against the party against whom such enforcement is directed.

                  SECTION 3.03. Successor Sub-Servicers.

                  The Servicer, with the consent of the NIMS Insurer, shall be
entitled to terminate any Sub-Servicing Agreement and the rights and obligations
of any Sub-Servicer pursuant to any Sub- Servicing Agreement in accordance with
the terms and conditions of such Sub-Servicing Agreement. In the event of
termination of any Sub-Servicer, all servicing obligations of such Sub-Servicer
shall be assumed simultaneously by the Servicer without any act or deed on the
part of such Sub-Servicer or the Servicer, and the Servicer either shall service
directly the related Mortgage Loans or shall enter into a Sub-Servicing
Agreement with a successor Sub-Servicer which qualifies under Section 3.02.

                  Any Sub-Servicing Agreement shall include the provision that
such agreement may be immediately terminated by the Servicer or the Trustee (if
the Trustee is acting as Servicer) without fee, in accordance with the terms of
this Agreement, in the event that the Servicer (or the Trustee, if such party is
then acting as Servicer) shall, for any reason, no longer be the Servicer
(including termination due to a Servicer Event of Termination).

                  SECTION 3.04. Liability of the Servicer.

                  Notwithstanding any Sub-Servicing Agreement or the provisions
of this Agreement relating to agreements or arrangements between the Servicer
and a Sub-Servicer or reference to actions taken through a Sub-Servicer or
otherwise, the Servicer shall remain obligated and primarily liable to the
Trustee and the Certificateholders for the servicing and administering of the
Mortgage Loans in accordance with the provisions of Section 3.01, without
diminution of such obligation or liability by virtue of such Sub-Servicing
Agreements or arrangements or by virtue of indemnification from the Sub-Servicer
and to the same extent and under the same terms and conditions as if the
Servicer alone were servicing and administering the Mortgage Loans. The Servicer
shall be entitled to enter into any agreement with a Sub-Servicer for
indemnification of the Servicer by such Sub- Servicer and nothing contained in
this Agreement shall be deemed to limit or modify such indemnification.

                  SECTION 3.05. No Contractual Relationship Between
                                Sub-Servicers and the NIMS Insurer, Trustee or
                                Certificateholders.

                  Any Sub-Servicing Agreement that may be entered into and any
transactions or services relating to the Mortgage Loans involving a Sub-Servicer
in its capacity as such shall be deemed to be between the Sub-Servicer and the
Servicer alone, and the NIMS Insurer, the Trustee

                                        -69-

<PAGE>

or Certificateholders shall not be deemed parties thereto and shall have no
claims, rights, obligations, duties or liabilities with respect to the
Sub-Servicer except as set forth in Section 3.06. The Servicer shall be solely
liable for all fees owed by it to any Sub-Servicer, irrespective of whether the
Servicer's compensation pursuant to this Agreement is sufficient to pay such
fees.

                  SECTION 3.06. Assumption or Termination of Sub-Servicing
                                Agreements by Trustee.

                  In the event the Servicer shall for any reason no longer be
the servicer (including by reason of the occurrence of a Servicer Event of
Termination), the Trustee shall thereupon assume all of the rights and
obligations of the Servicer under each Sub-Servicing Agreement that the Servicer
may have entered into, unless the Trustee elects to terminate any Sub-Servicing
Agreement in accordance with its terms as provided in Section 3.03. Upon such
assumption, the Trustee (or the successor servicer appointed pursuant to Section
7.02) shall be deemed, subject to Section 3.03, to have assumed all of the
departing Servicer's interest therein and to have replaced the departing
Servicer as a party to each Sub-Servicing Agreement to the same extent as if
each Sub-Servicing Agreement had been assigned to the assuming party, except
that (i) the departing Servicer shall not thereby be relieved of any liability
or obligations under any Sub-Servicing Agreement that arose before it ceased to
be the Servicer and (ii) neither the Trustee nor any successor Servicer shall be
deemed to have assumed any liability or obligation of the Servicer that arose
before it ceased to be the Servicer.

                  The Servicer at its expense shall, upon request of the
Trustee, deliver to the assuming party all documents and records relating to
each Sub-Servicing Agreement and the Mortgage Loans then being serviced and an
accounting of amounts collected and held by or on behalf of it, and otherwise
use its best efforts to effect the orderly and efficient transfer of the
Sub-Servicing Agreements to the assuming party.

                  SECTION 3.07. Collection of Certain Mortgage Loan Payments.

                  The Servicer shall make reasonable efforts, in accordance with
the servicing standards set forth in Section 3.01, to collect all payments
called for under the terms and provisions of the Mortgage Loans and the
provisions of any applicable insurance policies provided to the Servicer.
Consistent with the foregoing, the Servicer may in its discretion (i) waive any
late payment charge or, if applicable, any penalty interest, (ii) waive any
provisions of any Mortgage Loan requiring the related Mortgagor to submit to
mandatory arbitration with respect to disputes arising thereunder or (iii)
extend the due dates for the Monthly Payments due on a Mortgage Note for a
period of not greater than 180 days; provided, however, that any extension
pursuant to clause (iii) above shall not affect the amortization schedule of any
Mortgage Loan for purposes of any computation hereunder, except as provided
below. In the event of any such arrangement pursuant to clause (iii) above, the
Servicer shall make timely Advances on such Mortgage Loan during such extension
pursuant to Section 4.04 and in accordance with the amortization schedule of
such Mortgage Loan without modification thereof by reason of such arrangement.
Notwithstanding the foregoing, in the event that any Mortgage Loan is in default
or, in the judgment of the Servicer, such default is reasonably foreseeable, the
Servicer, consistent with the standards set forth in Section 3.01, may also
waive, modify or vary any term of such Mortgage Loan (including modifications
that would change the

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<PAGE>

Mortgage Rate, forgive the payment of principal or interest or extend the final
maturity date of such Mortgage Loan), accept payment from the related Mortgagor
of an amount less than the Stated Principal Balance in final satisfaction of
such Mortgage Loan, or consent to the postponement of strict compliance with any
such term or otherwise grant indulgence to any Mortgagor (any and all such
waivers, modifications, variances, forgiveness of principal or interest,
postponements, or indulgences collectively referred to herein as "forbearance").
The Servicer's analysis supporting any forbearance and the conclusion that any
forbearance meets the standards of Section 3.01 shall be reflected in writing in
the Mortgage File or the Servicer's books and records.

                  SECTION 3.08. Sub-Servicing Accounts.

                  In those cases where a Sub-Servicer is servicing a Mortgage
Loan pursuant to a Sub- Servicing Agreement, the Sub-Servicer will be required
to establish and maintain one or more accounts (collectively, the "Sub-Servicing
Account"). The Sub-Servicing Account shall be an Eligible Account and shall
comply with all requirements of this Agreement relating to the Collection
Account. The Sub-Servicer shall deposit in the clearing account in which it
customarily deposits payments and collections on mortgage loans in connection
with its mortgage loan servicing activities on a daily basis, and in no event
more than one Business Day after the Sub-Servicer's receipt thereof, all
proceeds of Mortgage Loans received by the Sub-Servicer less its servicing
compensation to the extent permitted by the Sub-Servicing Agreement, and shall
thereafter deposit such amounts in the Sub-Servicing Account, in no event more
than two Business Days after the receipt of such amounts. The Sub-Servicer shall
thereafter deposit such proceeds in the Collection Account or remit such
proceeds to the Servicer for deposit in the Collection Account not later than
two Business Days after the deposit of such amounts in the Sub-Servicing
Account. For purposes of this Agreement, the Servicer shall be deemed to have
received payments on the Mortgage Loans when the Sub-Servicer receives such
payments.

                  SECTION 3.09. Collection of Taxes, Assessments and Similar
                                Items; Servicing Accounts.

                  The Servicer shall establish and maintain, or cause to be
established and maintained, one or more accounts (the "Servicing Accounts"),
into which all Escrow Payments shall be deposited and retained. Servicing
Accounts shall be Eligible Accounts. The Servicer shall deposit in the clearing
account in which it customarily deposits payments and collections on mortgage
loans in connection with its mortgage loan servicing activities on a daily
basis, and in no event more than one Business Day after the Servicer's receipt
thereof, all Escrow Payments collected on account of the Mortgage Loans and
shall thereafter deposit such Escrow Payments in the Servicing Accounts, in no
event more than two Business Days after the receipt of such Escrow Payments, all
Escrow Payments collected on account of the Mortgage Loans for the purpose of
effecting the payment of any such items as required under the terms of this
Agreement. Withdrawals of amounts from a Servicing Account may be made only to
(i) effect payment of taxes, assessments, hazard insurance premiums, and
comparable items in a manner and at a time that assures that the lien priority
of the Mortgage is not jeopardized (or, with respect to the payment of taxes, in
a manner and at a time that avoids the loss of the Mortgaged Property due to a
tax sale or the foreclosure as a result of a tax lien); (ii) reimburse the
Servicer (or a Sub-Servicer to the extent provided in the related Sub- Servicing
Agreement) out of related collections for any Servicing Advances made pursuant
to

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<PAGE>

Section 3.01 (with respect to taxes and assessments) and Section 3.14 (with
respect to hazard insurance); (iii) refund to Mortgagors any sums as may be
determined to be overages; (iv) pay interest, if required and as described
below, to Mortgagors on balances in the Servicing Account; or (v) clear and
terminate the Servicing Account at the termination of the Servicer's obligations
and responsibilities in respect of the Mortgage Loans under this Agreement in
accordance with Article X. In the event the Servicer shall deposit in a
Servicing Account any amount not required to be deposited therein or any amount
previously deposited therein is unpaid by the related Mortgagor's banking
institution, it may at any time withdraw such amount from such Servicing
Account, any provision herein to the contrary notwithstanding. The Servicer will
be responsible for the administration of the Servicing Accounts and will be
obligated to make Servicing Advances to such accounts when and as necessary to
avoid the lapse of insurance coverage on the Mortgaged Property, or which the
Servicer knows, or in the exercise of the required standard of care of the
Servicer hereunder should know, is necessary to avoid the loss of the Mortgaged
Property due to a tax sale or the foreclosure as a result of a tax lien. If any
such payment has not been made and the Servicer receives notice of a tax lien
with respect to the Mortgage being imposed, the Servicer will, within 10
Business Days of receipt of such notice, advance or cause to be advanced funds
necessary to discharge such lien on the Mortgaged Property. As part of its
servicing duties, the Servicer or Sub- Servicers shall pay to the Mortgagors
interest on funds in the Servicing Accounts, to the extent required by law and,
to the extent that interest earned on funds in the Servicing Accounts is
insufficient, to pay such interest from its or their own funds, without any
reimbursement therefor. The Servicer may pay to itself any excess interest on
funds in the Servicing Accounts, to the extent such action is in conformity with
the servicing standard set forth in Section 3.01, is permitted by law and such
amounts are not required to be paid to Mortgagors or used for any of the other
purposes set forth above.

                  SECTION 3.10. Collection Account and Distribution Account.

                  (a) On behalf of the Trust Fund, the Servicer shall establish
and maintain, or cause to be established and maintained, one or more accounts
(such account or accounts, the "Collection Account"), held in trust for the
benefit of the Trustee and the Certificateholders. On behalf of the Trust Fund,
the Servicer shall deposit or cause to be deposited in the clearing account in
which it customarily deposits payments and collections on mortgage loans in
connection with its mortgage loan servicing activities on a daily basis, and in
no event more than one Business Day after the Servicer's receipt thereof, and
shall thereafter deposit in the Collection Account, in no event more than two
Business Days after the Servicer's receipt thereof, as and when received or as
otherwise required hereunder, the following payments and collections received or
made by it subsequent to the Cut-off Date (other than in respect of principal or
interest on the Mortgage Loans due on or before the Cut-off Date) or payments
(other than Principal Prepayments) received by it on or prior to the Cut-off
Date but allocable to a Due Period subsequent thereto:

                  (i) all payments on account of principal, including Principal
         Prepayments (but not Prepayment Charges), on the Mortgage Loans;

                  (ii) all payments on account of interest (net of the Servicing
         Fee) on each Mortgage Loan;

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<PAGE>

                  (iii) all Insurance Proceeds, Liquidation Proceeds, Subsequent
         Recoveries and condemnation proceeds (other than proceeds collected in
         respect of any particular REO Property and amounts paid in connection
         with a purchase of Mortgage Loans and REO Properties pursuant to
         Section 9.01);

                  (iv) any amounts required to be deposited pursuant to Section
         3.12 in connection with any losses realized on Permitted Investments
         with respect to funds held in the Collection Account;

                  (v) any amounts required to be deposited by the Servicer
         pursuant to the second paragraph of Section 3.14(a) in respect of any
         blanket policy deductibles;

                  (vi) all proceeds of any Mortgage Loan repurchased or
         purchased in accordance with Section 2.03, Section 3.16(c) or Section
         9.01;

                  (vii) all amounts required to be deposited in connection with
         Substitution Adjustments pursuant to Section 2.03; and

                  (viii) all Prepayment Charges collected by the Servicer and
         any Servicer Prepayment Charge Payment Amounts in connection with the
         Principal Prepayment of any of the Mortgage Loans.

                  The foregoing requirements for deposit in the Collection
Account shall be exclusive, it being understood and agreed that, without
limiting the generality of the foregoing, payments in the nature of Servicing
Fees, late payment charges, Prepayment Interest Excess, assumption fees,
insufficient funds charges and ancillary income (other than Prepayment Charges)
need not be deposited by the Servicer in the Collection Account and may be
retained by the Servicer as additional compensation. In the event the Servicer
shall deposit in the Collection Account any amount not required to be deposited
therein, it may at any time withdraw such amount from the Collection Account,
any provision herein to the contrary notwithstanding.

                  (b) On behalf of the Trust Fund, the Trustee shall establish
and maintain one or more accounts (such account or accounts, the "Distribution
Account"), held in trust for the benefit of the Trustee and the
Certificateholders. On behalf of the Trust Fund, the Servicer shall deliver to
the Trustee in immediately available funds for deposit in the Distribution
Account on or before 1:00 p.m. New York time (i) on the Servicer Remittance
Date, that portion of the Available Funds (calculated without regard to the
references in the definition thereof to amounts that may be withdrawn from the
Distribution Account) for the related Distribution Date then on deposit in the
Collection Account, the amount of all Prepayment Charges collected during the
applicable Prepayment Period by the Servicer and Servicer Prepayment Charge
Payment Amounts in connection with the Principal Prepayment of any of the
Mortgage Loans then on deposit in the Collection Account, the amount of any
funds reimbursable to an Advancing Person pursuant to Section 3.29 (unless such
amounts are to be remitted in another manner as specified in the documentation
establishing the related Advance Facility) and (ii) on each Business Day as of
the commencement of which the balance on deposit in the Collection Account
exceeds $75,000 following any withdrawals pursuant to the next succeeding
sentence, the amount of such excess, but

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<PAGE>

only if the Collection Account constitutes an Eligible Account solely pursuant
to clause (ii) of the definition of "Eligible Account." If the balance on
deposit in the Collection Account exceeds $75,000 as of the commencement of
business on any Business Day and the Collection Account does not qualify as an
Eligible Account pursuant to clauses (i), (iii) or (iv) of the definition of
"Eligible Account," the Servicer shall, on or before 1:00 p.m. New York time on
such Business Day, withdraw from the Collection Account any and all amounts
payable or reimbursable to the Servicer, the Advancing Person, the Trustee or
any Sub-Servicer pursuant to Section 3.11 and shall pay such amounts to the
Persons entitled thereto.

                  (c) Funds in the Collection Account and the Distribution
Account may be invested in Permitted Investments in accordance with the
provisions set forth in Section 3.12. The Servicer shall give written notice to
the NIMS Insurer and the Trustee of the location of the Collection Account
maintained by it when established and prior to any change thereof. The Trustee
shall give notice to the NIMS Insurer, the Servicer and the Depositor of the
location of the Distribution Account when established and prior to any change
thereof.

                  (d) Funds held in the Collection Account at any time may be
delivered by the Servicer to the Trustee for deposit in an account (which may be
the Distribution Account and must satisfy the standards for the Distribution
Account as set forth in the definition thereof) and for all purposes of this
Agreement shall be deemed to be a part of the Collection Account; provided,
however, that the Trustee shall have the sole authority to withdraw any funds
held pursuant to this subsection (d). In the event the Servicer shall deliver to
the Trustee for deposit in the Distribution Account any amount not required to
be deposited therein, it may at any time request that the Trustee withdraw such
amount from the Distribution Account and remit to it any such amount, any
provision herein to the contrary notwithstanding. In addition, the Servicer,
with respect to items (i) through (iv) below, shall deliver to the Trustee from
time to time for deposit, and the Trustee, with respect to items (i) through
(iv) below, shall so deposit, in the Distribution Account:

                  (i) any Advances, as required pursuant to Section 4.04;

                  (ii) any amounts required to be deposited pursuant to Section
         3.23(d) or (f) in connection with any REO Property;

                  (iii) any amounts to be paid by the Servicer in connection
         with a purchase of Mortgage Loans and REO Properties pursuant to
         Section 10.01;

                  (iv) any Compensating Interest to be deposited pursuant to
         Section 3.24 in connection with any Prepayment Interest Shortfall; and

                  (v) any amounts required to be paid to the Trustee pursuant to
         the Agreement, including, but not limited to Section 3.06 and Section
         7.02.

                  SECTION 3.11. Withdrawals from the Collection Account and
                                Distribution Account.

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<PAGE>

                  (a) The Servicer shall, from time to time, make withdrawals
from the Collection Account for any of the following purposes or as described in
Section 4.04:

                  (i) to remit to the Trustee for deposit in the Distribution
         Account the amounts required to be so remitted pursuant to Section
         3.10(b) or permitted to be so remitted pursuant to the first sentence
         of Section 3.10(d);

                  (ii) subject to Section 3.16(d), to reimburse the Servicer for
         (a) any unreimbursed Advances to the extent of amounts received which
         represent Late Collections (net of the related Servicing Fees),
         Liquidation Proceeds and Insurance Proceeds on Mortgage Loans or REO
         Properties with respect to which such Advances were made in accordance
         with the provisions of Section 4.04; or (b) without limiting any right
         of withdrawal set forth in clause (vi) below, any unreimbursed Advances
         that, upon a Final Recovery Determination with respect to such Mortgage
         Loan, are Nonrecoverable Advances, but only to the extent that Late
         Collections, Liquidation Proceeds and Insurance Proceeds received with
         respect to such Mortgage Loan are insufficient to reimburse the
         Servicer for such unreimbursed Advances;

                  (iii) subject to Section 3.16(d), to pay the Servicer or any
         Sub-Servicer (a) any unpaid Servicing Fees, (b) any unreimbursed
         Servicing Advances with respect to each Mortgage Loan, but only to the
         extent of any Late Collections, Liquidation Proceeds and Insurance
         Proceeds received with respect to such Mortgage Loan or REO Property,
         and (c) without limiting any right of withdrawal set forth in clause
         (vi) below, any Servicing Advances made with respect to a Mortgage Loan
         that, upon a Final Recovery Determination with respect to such Mortgage
         Loan are Nonrecoverable Advances, but only to the extent that Late
         Collections, Liquidation Proceeds and Insurance Proceeds received with
         respect to such Mortgage Loan are insufficient to reimburse the
         Servicer or any Sub-Servicer for Servicing Advances;

                  (iv) to pay to the Servicer as additional servicing
         compensation (in addition to the Servicing Fee) on the Servicer
         Remittance Date any interest or investment income earned on funds
         deposited in the Collection Account;

                  (v) to pay itself or the Originator with respect to each
         Mortgage Loan that has previously been purchased or replaced pursuant
         to Section 2.03 or Section 3.16(c) all amounts received thereon
         subsequent to the date of purchase or substitution, as the case may be;

                  (vi) to reimburse the Servicer for any Advance or Servicing
         Advance previously made which the Servicer has determined to be a
         Nonrecoverable Advance in accordance with the provisions of Section
         4.04;

                  (vii) to pay, or to reimburse the Servicer for Servicing
         Advances in respect of, expenses incurred in connection with any
         Mortgage Loan pursuant to Section 3.16(b);

                  (viii) to reimburse the Servicer for expenses incurred by or
         reimbursable to the Servicer pursuant to Section 6.03;

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<PAGE>

                  (ix) to reimburse the NIMS Insurer, the Servicer (if the
         Servicer is not an Affiliate of the Originator) or the Trustee, as the
         case may be, for the enforcement expenses reasonably incurred in
         respect of the breach or defect giving rise to the purchase obligation
         under Section 2.03 of this Agreement that were included in the Purchase
         Price of the Mortgage Loan, including any expenses arising out of the
         enforcement of the purchase obligation;

                  (x) to pay itself any Prepayment Interest Excess (to the
         extent not otherwise retained); and

                  (xi) to clear and terminate the Collection Account pursuant to
         Section 9.01.

                  The foregoing requirements for withdrawal from the Collection
Account shall be exclusive. In the event the Servicer shall deposit in the
Collection Account any amount not required to be deposited therein or any amount
previously deposited therein is unpaid by the related Mortgagor's banking
institution, it may at any time withdraw such amount from the Collection
Account, any provision herein to the contrary notwithstanding.

                  The Servicer shall keep and maintain separate accounting, on a
Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any
withdrawal from the Collection Account, to the extent held by or on behalf of
it, pursuant to subclauses (ii), (iii), (iv), (v), (vi) and (vii) above. The
Servicer shall provide written notification to the NIMS Insurer and the Trustee,
on or prior to the next succeeding Servicer Remittance Date, upon making any
withdrawals from the Collection Account pursuant to subclause (vi) above;
provided that an Officers' Certificate in the form described under Section
4.04(d) shall suffice for such written notification to the Trustee in respect
hereof.

                  (b) The Trustee shall, from time to time, make withdrawals
from the Distribution Account, for any of the following purposes, without
priority:

                  (i) to make distributions in accordance with Section 4.01;

                  (ii) to pay itself the Trustee Fee and any Extraordinary Trust
         Fund Expenses pursuant to Section 8.05;

                  (iii) to pay any amounts in respect of taxes pursuant to
         Section 10.01(g);

                  (iv) to clear and terminate the Distribution Account pursuant
         to Section 9.01;

                  (v) to pay any amounts required to be paid to the Trustee
         pursuant to this Agreement, including but not limited to funds required
         to be paid pursuant to Section 3.06, Section 7.02 and Section 8.05;

                  (vi) to pay to the Trustee, any interest or investment income
         earned on funds deposited in the Distribution Account; and

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<PAGE>

                  (vii) to pay to an Advancing Person reimbursements for
         Advances and/or Servicing Advances pursuant to Section 3.29.

                  SECTION 3.12. Investment of Funds in the Collection Account
                                and the Distribution Account.

                  (a) The Servicer may direct any depository institution
maintaining the Collection Account and REO Account to invest the funds on
deposit in such accounts, and the Trustee may direct any depository institution
maintaining the Distribution Account to invest the funds on deposit in such
account or to hold such funds uninvested (each such account, for the purposes of
this Section 3.12, an "Investment Account"). All investments pursuant to this
Section 3.12 shall be in one or more Permitted Investments bearing interest or
sold at a discount, and maturing, unless payable on demand, (i) no later than
the Business Day immediately preceding the date on which such funds are required
to be withdrawn from such account pursuant to this Agreement, if a Person other
than the Trustee is the obligor thereon or if such investment is managed or
advised by a Person other than the Trustee or an Affiliate of the Trustee, and
(ii) no later than the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if the Trustee is the obligor
thereon or if such investment is managed or advised by the Trustee or any
Affiliate. All such Permitted Investments shall be held to maturity, unless
payable on demand. Any investment of funds in an Investment Account shall be
made in the name of the Trustee (in its capacity as such), or in the name of a
nominee of the Trustee. The Trustee shall be entitled to sole possession (except
with respect to investment direction of funds held in the Collection Account and
REO Account and any income and gain realized thereon) over each such investment,
and any certificate or other instrument evidencing any such investment shall be
delivered directly to the Trustee or its agent, together with any document of
transfer necessary to transfer title to such investment to the Trustee or its
nominee. In the event amounts on deposit in an Investment Account are at any
time invested in a Permitted Investment payable on demand, the Trustee shall:

                  (x) consistent with any notice required to be given
         thereunder, demand that payment thereon be made on the last day such
         Permitted Investment may otherwise mature hereunder in an amount equal
         to the lesser of (1) all amounts then payable thereunder and (2) the
         amount required to be withdrawn on such date; and

                  (y) demand payment of all amounts due thereunder promptly upon
         determination by a Responsible Officer of the Trustee that such
         Permitted Investment would not constitute a Permitted Investment in
         respect of funds thereafter on deposit in the Investment Account.

                  (b) All income and gain realized from the investment of funds
deposited in the Collection Account and any REO Account held by or on behalf of
the Servicer shall be for the benefit of the Servicer and shall be subject to
its withdrawal in accordance with Section 3.11 or Section 3.23, as applicable.
The Servicer shall deposit in the Collection Account or any REO Account, as
applicable, the amount of any loss of principal incurred in respect of any such
Permitted Investment made with funds in such Account immediately upon
realization of such loss.

                  (c) All income and gain realized from the investment of funds
deposited in the Distribution Account shall be for the benefit of the Trustee.
The Trustee shall deposit in the

                                      -77-

<PAGE>

Distribution Account the amount of any loss of principal incurred in respect of
any such Permitted Investment made with funds in such Account immediately upon
realization of such loss. Notwithstanding the foregoing, the Trustee may at its
discretion, and without liability, hold the funds in the Distribution Account
uninvested.

                  (d) Except as otherwise expressly provided in this Agreement,
if any default occurs in the making of a payment due under any Permitted
Investment, or if a default occurs in any other performance required under any
Permitted Investment, the Trustee may and, subject to Section 8.01 and Section
8.02(a)(v), upon the request of the NIMS Insurer or the Holders of Certificates
representing more than 50% of the Voting Rights allocated to any Class of
Certificates, shall take such action as may be appropriate to enforce such
payment or performance, including the institution and prosecution of appropriate
proceedings.

                  SECTION 3.13. [Reserved].

                  SECTION 3.14. Maintenance of Hazard Insurance and Errors and
                                Omissions and Fidelity Coverage.

                  (a) The Servicer shall cause to be maintained for each
Mortgage Loan hazard insurance with extended coverage on the Mortgaged Property
in an amount which is at least equal to the least of (i) the current Principal
Balance of such Mortgage Loan, (ii) the amount necessary to fully compensate for
any damage or loss to the improvements that are a part of such property on a
replacement cost basis and (iii) the maximum insurable value of the improvements
which are part of such Mortgaged Property, in each case in an amount not less
than such amount as is necessary to avoid the application of any coinsurance
clause contained in the related hazard insurance policy. The Servicer shall also
cause to be maintained hazard insurance with extended coverage on each REO
Property in an amount which is at least equal to the least of (i) the maximum
insurable value of the improvements which are a part of such property, (ii) the
outstanding Principal Balance of the related Mortgage Loan at the time it became
an REO Property and (iii) the maximum insurable value of the improvements which
are part of such REO Property. The Servicer will comply in the performance of
this Agreement with all reasonable rules and requirements of each insurer under
any such hazard policies. Any amounts to be collected by the Servicer under any
such policies (other than amounts to be applied to the restoration or repair of
the property subject to the related Mortgage or amounts to be released to the
Mortgagor in accordance with the procedures that the Servicer would follow in
servicing loans held for its own account, subject to the terms and conditions of
the related Mortgage and Mortgage Note) shall be deposited in the Collection
Account, subject to withdrawal pursuant to Section 3.11, if received in respect
of a Mortgage Loan, or in the REO Account, subject to withdrawal pursuant to
Section 3.23, if received in respect of an REO Property. Any cost incurred by
the Servicer in maintaining any such insurance shall not, for the purpose of
calculating distributions to Certificateholders, be added to the unpaid
Principal Balance of the related Mortgage Loan, notwithstanding that the terms
of such Mortgage Loan so permit. It is understood and agreed that no earthquake
or other additional insurance is to be required of any Mortgagor other than
pursuant to such applicable laws and regulations as shall at any time be in
force and as shall require such additional insurance. If the Mortgaged Property
or REO Property is at any time in an area identified in the Federal Register by
the Federal Emergency Management Agency as having special flood hazards and
flood insurance has been made available, the Servicer will cause to be
maintained

                                        -78-

<PAGE>

a flood insurance policy in respect thereof. Such flood insurance shall be in an
amount equal to the least of (i) the unpaid Principal Balance of the related
Mortgage Loan, (ii) the maximum amount of such insurance available for the
related Mortgaged Property under the national flood insurance program (assuming
that the area in which such Mortgaged Property is located is participating in
such program) and (iii) the maximum insurable value of the improvements which
are part of such Mortgaged Property.

                  In the event that the Servicer shall obtain and maintain a
blanket policy insuring against hazard losses on all of the Mortgage Loans, it
shall conclusively be deemed to have satisfied its obligations as set forth in
the first two sentences of this Section 3.14, it being understood and agreed
that such policy may contain a deductible clause on terms substantially
equivalent to those commercially available and maintained by competent
servicers, in which case the Servicer shall, in the event that there shall not
have been maintained on the related Mortgaged Property or REO Property a policy
complying with the first two sentences of this Section 3.14, and there shall
have been one or more losses which would have been covered by such policy,
deposit to the Collection Account from its own funds the amount not otherwise
payable under the blanket policy because of such deductible clause. In
connection with its activities as servicer of the Mortgage Loans, the Servicer
agrees to prepare and present, on behalf of itself, the Trustee and
Certificateholders, claims under any such blanket policy in a timely fashion in
accordance with the terms of such policy.

                  (b) The Servicer shall keep in force during the term of this
Agreement a policy or policies of insurance covering errors and omissions for
failure in the performance of the Servicer's obligations under this Agreement,
which policy or policies shall be in such form and amount that would meet the
requirements of Fannie Mae or Freddie Mac if it were the purchaser of the
Mortgage Loans, unless the Servicer has obtained a waiver of such requirements
from Fannie Mae or Freddie Mac. The Servicer shall also maintain a fidelity bond
in the form and amount that would meet the requirements of Fannie Mae or Freddie
Mac, unless the Servicer has obtained a waiver of such requirements from Fannie
Mae or Freddie Mac. The Servicer shall be deemed to have complied with this
provision if an Affiliate of the Servicer has such errors and omissions and
fidelity bond coverage and, by the terms of such insurance policy or fidelity
bond, the coverage afforded thereunder extends to the Servicer. Any such errors
and omissions policy and fidelity bond shall by its terms not be cancelable
without thirty days' prior written notice to the Trustee and the NIMS Insurer.
The Servicer shall also cause each Sub-Servicer to maintain a policy of
insurance covering errors and omissions and a fidelity bond which would meet
such requirements.

                  SECTION 3.15. Enforcement of Due-On-Sale Clauses; Assumption
                                Agreements.

                  The Servicer will, to the extent it has knowledge of any
conveyance or prospective conveyance of any Mortgaged Property by any Mortgagor
(whether by absolute conveyance or by contract of sale, and whether or not the
Mortgagor remains or is to remain liable under the Mortgage Note and/or the
Mortgage), exercise its rights to accelerate the maturity of such Mortgage Loan
under the "due-on-sale" clause, if any, applicable thereto; provided, however,
that the Servicer shall not be required to take such action if in its sole
business judgment the Servicer believes it is not in the best interests of the
Trust Fund and shall not exercise any such rights if prohibited by law from
doing so. If the Servicer reasonably believes it is unable under applicable law
to enforce such "due-

                                      -79-
<PAGE>

on-sale" clause, or if any of the other conditions set forth in the proviso to
the preceding sentence apply, the Servicer will enter into an assumption and
modification agreement from or with the person to whom such property has been
conveyed or is proposed to be conveyed, pursuant to which such person becomes
liable under the Mortgage Note and, to the extent permitted by applicable state
law, the Mortgagor remains liable thereon. The Servicer is also authorized, to
the extent permitted under the related Mortgage Note, to enter into a
substitution of liability agreement with such person, pursuant to which the
original Mortgagor is released from liability and such person is substituted as
the Mortgagor and becomes liable under the Mortgage Note, provided that no such
substitution shall be effective unless such person satisfies the underwriting
criteria of the Servicer for a mortgage loan similar to the Mortgage Loan. In
connection with any assumption, modification or substitution, the Servicer shall
apply such underwriting standards and follow such practices and procedures as
shall be normal and usual in its general mortgage servicing activities and as it
applies to other mortgage loans owned solely by it. The Servicer shall not take
or enter into any assumption and modification agreement, however, unless (to the
extent practicable in the circumstances) it shall have received confirmation, in
writing, of the continued effectiveness of any applicable hazard insurance
policy. Any fee collected by the Servicer in respect of an assumption,
modification or substitution of liability agreement shall be retained by the
Servicer as additional servicing compensation. In connection with any such
assumption, no material term of the Mortgage Note (including but not limited to
the related Mortgage Rate and the amount of the Monthly Payment) may be amended
or modified, except as otherwise required pursuant to the terms thereof. The
Servicer shall notify the Trustee and the Custodian that any such substitution,
modification or assumption agreement has been completed by forwarding to the
Custodian the executed original of such substitution, modification or assumption
agreement, which document shall be added to the related Mortgage File and shall,
for all purposes, be considered a part of such Mortgage File to the same extent
as all other documents and instruments constituting a part thereof.

                  Notwithstanding the foregoing paragraph or any other provision
of this Agreement, the Servicer shall not be deemed to be in default, breach or
any other violation of its obligations hereunder by reason of any assumption of
a Mortgage Loan by operation of law or by the terms of the Mortgage Note or any
assumption which the Servicer may be restricted by law from preventing, for any
reason whatsoever. For purposes of this Section 3.15, the term "assumption" is
deemed to also include a sale (of the Mortgaged Property) subject to the
Mortgage that is not accompanied by an assumption or substitution of liability
agreement.

                  SECTION 3.16. Realization Upon Defaulted Mortgage Loans.

                  (a) The Servicer shall use its best efforts, consistent with
the servicing standards set forth in Section 3.01, to foreclose upon or
otherwise comparably convert the ownership of properties securing such of the
Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments
pursuant to Section 3.07. The Servicer shall be responsible for all costs and
expenses incurred by it in any such proceedings; provided, however, that such
costs and expenses will be recoverable as Servicing Advances by the Servicer as
contemplated in Section 3.11(a) and Section 3.23. The foregoing is subject to
the provision that, in any case in which a Mortgaged Property shall have
suffered damage from an Uninsured Cause, the Servicer shall not be required to
expend its own funds toward the restoration of such property unless it shall
determine in its discretion that such restoration will

                                      -80-
<PAGE>

increase the proceeds of liquidation of the related Mortgage Loan after
reimbursement to itself for such expenses.

                  (b) Notwithstanding the foregoing provisions of this Section
3.16 or any other provision of this Agreement, with respect to any Mortgage Loan
as to which the Servicer has received actual notice of, or has actual knowledge
of, the presence of any toxic or hazardous substance on the related Mortgaged
Property, the Servicer shall not, on behalf of the Trustee, either (i) obtain
title to such Mortgaged Property as a result of or in lieu of foreclosure or
otherwise, or (ii) otherwise acquire possession of, or take any other action
with respect to, such Mortgaged Property, if, as a result of any such action,
the Trustee, the Trust Fund or the Certificateholders would be considered to
hold title to, to be a "mortgagee-in-possession" of, or to be an "owner" or
"operator" of such Mortgaged Property within the meaning of the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended from
time to time, or any comparable law, unless the Servicer has also previously
determined, based on its reasonable judgment and a report prepared by a Person
who regularly conducts environmental audits using customary industry standards,
that:

                  (1) such Mortgaged Property is in compliance with applicable
         environmental laws or, if not, that it would be in the best economic
         interest of the Trust Fund to take such actions as are necessary to
         bring the Mortgaged Property into compliance therewith; and

                  (2) there are no circumstances present at such Mortgaged
         Property relating to the use, management or disposal of any hazardous
         substances, hazardous materials, hazardous wastes, or petroleum-based
         materials for which investigation, testing, monitoring, containment,
         clean-up or remediation could be required under any federal, state or
         local law or regulation, or that if any such materials are present for
         which such action could be required, that it would be in the best
         economic interest of the Trust Fund to take such actions with respect
         to the affected Mortgaged Property.

                  The Servicer shall forward a copy of the environmental audit
                  report to the Depositor and
the NIMS Insurer. Notwithstanding the foregoing, if such environmental audit
reveals, or if the Servicer has actual knowledge or notice, that such Mortgaged
Property contains such wastes or substances, the Servicer shall not foreclose or
accept a deed in lieu of foreclosure without the prior written consent of the
NIMS Insurer.

                  The cost of the environmental audit report contemplated by
this Section 3.16 shall be advanced by the Servicer, subject to the Servicer's
right to be reimbursed therefor from the Collection Account as provided in
Section 3.11(a)(vii), such right of reimbursement being prior to the rights of
Certificateholders to receive any amount in the Collection Account received in
respect of the affected Mortgage Loan or other Mortgage Loans.

                  If the Servicer determines, as described above, that it is in
the best economic interest of the Trust Fund to take such actions as are
necessary to bring any such Mortgaged Property into compliance with applicable
environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials, hazardous

                                      -81-
<PAGE>

wastes or petroleum-based materials affecting any such Mortgaged Property, then
the Servicer shall take such action as it deems to be in the best economic
interest of the Trust Fund; provided that any amounts disbursed by the Servicer
pursuant to this Section 3.16(b) shall constitute Servicing Advances, subject to
Section 4.04(d). The cost of any such compliance, containment, clean-up or
remediation shall be advanced by the Servicer, subject to the Servicer's right
to be reimbursed therefor from the Collection Account as provided in Section
3.11(a)(vii), such right of reimbursement being prior to the rights of
Certificateholders to receive any amount in the Collection Account received in
respect of the affected Mortgage Loan or other Mortgage Loans.

                  (c) The Servicer or the NIMS Insurer may, at its option,
purchase a Mortgage Loan which has become 90 or more days delinquent or for
which the Servicer has accepted a deed in lieu of foreclosure. Prior to purchase
pursuant to this Section 3.16(c), the Servicer shall be required to continue to
make Advances pursuant to Section 4.04. If the Servicer or the NIMS Insurer
purchases any delinquent Mortgage Loans pursuant to this Section 3.16(c), it
must purchase Mortgage Loans that are delinquent the greatest number of days
before it may purchase any that are delinquent any fewer number of days. The
Servicer or the NIMS Insurer shall purchase such delinquent Mortgage Loan at a
price equal to the Purchase Price of such Mortgage Loan. Any such purchase of a
Mortgage Loan pursuant to this Section 3.16(c) shall be accomplished by deposit
in the Collection Account of the amount of the Purchase Price. Upon the
satisfaction of the requirements set forth in Section 3.17(a), the Trustee shall
immediately deliver the Mortgage File and any related documentation to the
Servicer or the NIMS Insurer and will execute such documents provided to it as
are necessary to convey the Mortgage Loan to the Servicer or the NIMS Insurer,
as applicable.

                  (d) Proceeds received in connection with any Final Recovery
Determination, as well as any recovery resulting from a partial collection of
Insurance Proceeds, Liquidation Proceeds or condemnation proceeds, in respect of
any Mortgage Loan, will be applied in the following order of priority: first, to
unpaid Servicing Fees; second, to reimburse the Servicer or any Sub-Servicer for
any related unreimbursed Servicing Advances pursuant to Section 3.11(a)(iii) and
Advances pursuant to Section 3.11(a)(ii); third, to accrued and unpaid interest
on the Mortgage Loan, to the date of the Final Recovery Determination, or to the
Due Date prior to the Distribution Date on which such amounts are to be
distributed if not in connection with a Final Recovery Determination; and
fourth, as a recovery of principal of the Mortgage Loan. The portion of the
recovery so allocated to unpaid Servicing Fees shall be reimbursed to the
Servicer or any Sub-Servicer pursuant to Section 3.11(a)(iii).

                  SECTION 3.17. Trustee to Cooperate; Release of Mortgage Files.

                  (a) Upon the payment in full of any Mortgage Loan, or the
receipt by the Servicer of a notification that payment in full shall be escrowed
in a manner customary for such purposes, the Servicer will immediately notify or
cause to be notified the Custodian by a certification and shall deliver to the
Custodian, in written (with two executed copies) or electronic format, a Request
for Release in the form of Exhibit E hereto (which certification shall include a
statement to the effect that all amounts received or to be received in
connection with such payment which are required to be deposited in the
Collection Account pursuant to Section 3.10 have been or will be so deposited)
signed by a Servicing Officer (or in a mutually agreeable electronic format that
will, in lieu of a

                                      -82-
<PAGE>

signature on its face, originate from a Servicing Officer) and shall request
delivery to it of the Mortgage File. Upon receipt of such certification and
request and pursuant to the terms of the Custodial Agreement, the Custodian
shall, within three Business Days, release the related Mortgage File to the
Servicer and the Servicer is authorized to cause the removal from the
registration on the MERS(R) System of any such Mortgage Loan, if applicable.
Except as otherwise provided herein, no expenses incurred in connection with any
instrument of satisfaction or deed of reconveyance shall be chargeable to the
Collection Account or the Distribution Account.

                  (b) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, including, for this purpose, collection under
any insurance policy relating to the Mortgage Loans, the Custodian, pursuant to
the terms of the Custodial Agreement shall, upon any request made by or on
behalf of the Servicer and delivery to the Custodian, in written (with two
executed copies) or electronic format, of a Request for Release in the form of
Exhibit E signed by a Servicing Officer (or in a mutually agreeable electronic
format that will, in lieu of a signature on its face, originate from a Servicing
Officer), release the related Mortgage File to the Servicer within three
Business Days, and the Custodian shall, at the written direction of the
Servicer, execute such documents as shall be necessary to the prosecution of any
such proceedings. Such Request for Release shall obligate the Servicer to return
each and every document previously requested from the Mortgage File to the
Custodian when the need therefor by the Servicer no longer exists, unless the
Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the
Mortgage Loan have been deposited in the Collection Account or the Mortgage File
or such document has been delivered to an attorney, or to a public trustee or
other public official as required by law, for purposes of initiating or pursuing
legal action or other proceedings for the foreclosure of the Mortgaged Property
either judicially or non-judicially, and the Servicer has delivered, or caused
to be delivered, to the Custodian an additional Request for Release certifying
as to such liquidation or action or proceedings. Upon the request of the
Trustee, the Servicer shall provide notice to the Trustee of the name and
address of the Person to which such Mortgage File or such document was delivered
and the purpose or purposes of such delivery. Upon receipt of a Request for
Release, in written (with two executed copies) or electronic format, from a
Servicing Officer stating that such Mortgage Loan was liquidated and that all
amounts received or to be received in connection with such liquidation that are
required to be deposited into the Collection Account have been so deposited, or
that such Mortgage Loan has become an REO Property, such Mortgage Loan shall be
released by the Custodian to the Servicer or its designee.

                  (c) Upon written certification of a Servicing Officer, the
Trustee shall execute and deliver to the Servicer or the Sub-Servicer, as the
case may be, copies of, any court pleadings, requests for trustee's sale or
other documents necessary to the foreclosure or trustee's sale in respect of a
Mortgaged Property or to any legal action brought to obtain judgment against any
Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency judgment,
or to enforce any other remedies or rights provided by the Mortgage Note or
Mortgage or otherwise available at law or in equity. Each such certification
shall include a request that such pleadings or documents be executed by the
Trustee and a statement as to the reason such documents or pleadings are
required and that the execution and delivery thereof by the Trustee will not
invalidate or otherwise affect the lien of the Mortgage, except for the
termination of such a lien upon completion of the foreclosure or trustee's sale.

                                      -83-
<PAGE>

                  SECTION 3.18. Servicing Compensation.

                  As compensation for the activities of the Servicer hereunder,
the Servicer shall be entitled to the Servicing Fee with respect to each
Mortgage Loan payable solely from payments of interest in respect of such
Mortgage Loan, subject to Section 3.24. In addition, the Servicer shall be
entitled to recover unpaid Servicing Fees out of Insurance Proceeds, Liquidation
Proceeds or condemnation proceeds to the extent permitted by Section
3.11(a)(iii) and out of amounts derived from the operation and sale of an REO
Property to the extent permitted by Section 3.23. Except as provided in Section
3.29 or Section 6.04, the right to receive the Servicing Fee may not be
transferred in whole or in part except in connection with the transfer of all of
the Servicer's responsibilities and obligations under this Agreement; provided,
however, that the Servicer may pay from the Servicing Fee any amounts due to a
Sub-Servicer pursuant to a Sub-Servicing Agreement entered into under Section
3.02.

                  Additional servicing compensation in the form of assumption
fees, late payment charges, insufficient funds charges, ancillary income or
otherwise (other than Prepayment Charges) shall be retained by the Servicer only
to the extent such fees or charges are received by the Servicer. The Servicer
shall also be entitled pursuant to Section 3.11(a)(iv) to withdraw from the
Collection Account and pursuant to Section 3.23(b) to withdraw from any REO
Account, as additional servicing compensation, interest or other income earned
on deposits therein, subject to Section 3.12 and Section 3.24. The Servicer
shall also be entitled to receive Prepayment Interest Excess pursuant to Section
3.10 and 3.11 as additional servicing compensation. The Servicer shall be
required to pay all expenses incurred by it in connection with its servicing
activities hereunder (including premiums for the insurance required by Section
3.14, to the extent such premiums are not paid by the related Mortgagors or by a
Sub-Servicer and servicing compensation of each Sub-Servicer) and shall not be
entitled to reimbursement therefor except as specifically provided herein.

                  SECTION 3.19. Reports to the Trustee; Collection Account
                                Statements.

                  Not later than twenty days after each Distribution Date, the
Servicer shall forward, upon request, to the Trustee, the NIMS Insurer and the
Depositor the most current available bank statement for the Collection Account.
Copies of such statement shall be provided by the Trustee to any
Certificateholder and to any Person identified to the Trustee as a prospective
transferee of a Certificate, upon request at the expense of the requesting
party, provided such statement is delivered by the Servicer to the Trustee.

                  SECTION 3.20. Statement as to Compliance.

                  The Servicer will deliver to the Trustee, the NIMS Insurer and
the Depositor not later than March 15th of each calendar year, commencing in
2005, an Officers' Certificate (in a form similar to Exhibit G attached hereto)
stating, as to each signatory thereof, that (i) a review of the activities of
the Servicer during the preceding year and of performance under this Agreement
has been made under such officers' supervision and (ii) to the best of such
officers' knowledge, based on such review, the Servicer has fulfilled all of its
obligations under this Agreement throughout such year, or, if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to such officer and the nature and status thereof. Copies of any such
statement shall

                                      -84-
<PAGE>

be provided by the Trustee to any Certificateholder and to any Person identified
to the Trustee as a prospective transferee of a Certificate, upon request at the
expense of the requesting party, provided such statement is delivered by the
Servicer to the Trustee. In addition to the foregoing, the Servicer will, to the
extent reasonable, give any other servicing information required by the
Securities and Exchange Commission pursuant to applicable law.

                  SECTION 3.21. Independent Public Accountants' Servicing
                                Report.

                   Not later than March 15th of each calendar year, commencing
in 2005, the Servicer, at its expense, shall cause a nationally recognized firm
of independent certified public accountants to furnish to the Servicer a report
stating that (i) it has obtained a letter of representation regarding certain
matters from the management of the Servicer which includes an assertion that the
Servicer has complied with certain minimum residential mortgage loan servicing
standards, identified in the Uniform Single Attestation Program for Mortgage
Bankers established by the Mortgage Bankers Association of America, with respect
to the servicing of residential mortgage loans during the most recently
completed calendar year and (ii) on the basis of an examination conducted by
such firm in accordance with standards established by the American Institute of
Certified Public Accountants, such representation is fairly stated in all
material respects, subject to such exceptions and other qualifications that may
be appropriate. In rendering its report such firm may rely, as to matters
relating to the direct servicing of residential mortgage loans by Sub-Servicers,
upon comparable reports of firms of independent certified public accountants
rendered on the basis of examinations conducted in accordance with the same
standards (rendered within one year of such report) with respect to those
Sub-Servicers. Immediately upon receipt of such report, the Servicer shall
furnish a copy of such report to the Trustee, the NIMS Insurer and each Rating
Agency. Copies of such statement shall be provided by the Trustee to any
Certificateholder upon request at the expense of the requesting party, provided
that such statement is delivered by the Servicer to the Trustee.

                  SECTION 3.22. Access to Certain Documentation; Filing of
                                Reports by Trustee.

                  The Servicer shall provide to the Office of Thrift
Supervision, the FDIC, and any other federal or state banking or insurance
regulatory authority that may exercise authority over any Certificateholder,
access to the documentation regarding the Mortgage Loans required by applicable
laws and regulations. Such access shall be afforded without charge, but only
upon reasonable request and during normal business hours at the offices of the
Servicer designated by it. Nothing in this Section shall limit the obligation of
the Servicer to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors (absent proof that it is in compliance with applicable
law) and the failure of the Servicer to provide access as provided in this
Section as a result of such obligation shall not constitute a breach of this
Section. In addition, access to the documentation regarding the Mortgage Loans
will be provided to the NIMS Insurer, the Trustee, on behalf of the
Certificateholders or a prospective transferee of a Certificate, upon reasonable
request during normal business hours at the offices of the Servicer designated
by it at the expense of the Person requesting such access. Nothing in this
Section 3.22 shall require the Servicer to collect, create, collate or otherwise
generate any information that it does not generate in its usual course of
business. The Servicer shall not be required to make copies of or ship documents
to any party unless provisions have been made for the reimbursement of the costs
thereof.

                                      -85-
<PAGE>

                  SECTION 3.23. Title, Management and Disposition of REO
                                Property.

                  (a) The deed or certificate of sale of any REO Property shall,
subject to applicable laws, be taken in the name of the Trustee, or its nominee,
in trust for the benefit of the Certificateholders. The Servicer, on behalf of
REMIC 1, shall sell any REO Property as soon as practicable and in any event no
later than the end of the third full taxable year after the taxable year in
which such REMIC acquires ownership of such REO Property for purposes of Section
860G(a)(8) of the Code or request from the Internal Revenue Service, no later
than 60 days before the day on which the three-year grace period would otherwise
expire, an extension of such three-year period, unless the Servicer shall have
delivered to the Trustee and the NIMS Insurer an Opinion of Counsel acceptable
to the NIMS Insurer and addressed to the Trustee, the NIMS Insurer and the
Depositor, to the effect that the holding by the REMIC of such REO Property
subsequent to three years after its acquisition will not result in the
imposition on the REMIC of taxes on "prohibited transactions" thereof, as
defined in Section 860F of the Code, or cause any of the REMICs created
hereunder to fail to qualify as a REMIC under Federal law at any time that any
Certificates are outstanding. The Servicer shall manage, conserve, protect and
operate each REO Property for the Certificateholders solely for the purpose of
its prompt disposition and sale in a manner which does not cause such REO
Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code or result in the receipt by any of the REMICs
created hereunder of any "income from non- permitted assets" within the meaning
of Section 860F(a)(2)(B) of the Code, or any "net income from foreclosure
property" which is subject to taxation under the REMIC Provisions.

                  (b) The Servicer shall separately account for all funds
collected and received in connection with the operation of any REO Property and
shall establish and maintain, or cause to be established and maintained, with
respect to REO Properties an account held in trust for the Trustee for the
benefit of the Certificateholders (the "REO Account"), which shall be an
Eligible Account. The Servicer shall be permitted to allow the Collection
Account to serve as the REO Account, subject to separate ledgers for each REO
Property. The Servicer shall be entitled to retain or withdraw any interest
income paid on funds deposited in the REO Account.

                  (c) The Servicer shall have full power and authority, subject
only to the specific requirements and prohibitions of this Agreement, to do any
and all things in connection with any REO Property as are consistent with the
manner in which the Servicer manages and operates similar property owned by the
Servicer or any of its Affiliates, all on such terms and for such period
(subject to the requirement of prompt disposition set forth in Section 3.23(a))
as the Servicer deems to be in the best interests of Certificateholders. In
connection therewith, the Servicer shall deposit, or cause to be deposited in
the clearing account in which it customarily deposits payments and collections
on mortgage loans in connection with its mortgage loan servicing activities on a
daily basis, and in no event more than one Business Day after the Servicer's
receipt thereof, and shall thereafter deposit in the REO Account, in no event
more than two Business Days after the Servicer's receipt thereof, all revenues
received by it with respect to an REO Property and shall withdraw therefrom
funds necessary for the proper operation, management and maintenance of such REO
Property including, without limitation:

                  (i) all insurance premiums due and payable in respect of such
         REO Property;

                                      -86-
<PAGE>

                  (ii) all real estate taxes and assessments in respect of such
         REO Property that may result in the imposition of a lien thereon; and

                  (iii) all costs and expenses necessary to maintain, operate
         and dispose of such REO Property.

                  To the extent that amounts on deposit in the REO Account with
respect to an REO Property are insufficient for the purposes set forth in
clauses (i) through (iii) above with respect to such REO Property, the Servicer
shall advance from its own funds such amount as is necessary for such purposes
if, but only if, the Servicer would make such advances if the Servicer owned the
REO Property and if in the Servicer's judgment, the payment of such amounts will
be recoverable from the rental or sale of the REO Property.

                  Notwithstanding the foregoing, neither the Servicer nor the
Trustee shall:

                  (A) authorize the Trust Fund to enter into, renew or extend
         any New Lease with respect to any REO Property, if the New Lease by its
         terms will give rise to any income that does not constitute Rents from
         Real Property;

                  (B) authorize any amount to be received or accrued under any
         New Lease other than amounts that will constitute Rents from Real
         Property;

                  (C) authorize any construction on any REO Property, other than
         the completion of a building or other improvement thereon, and then
         only if more than ten percent of the construction of such building or
         other improvement was completed before default on the related Mortgage
         Loan became imminent, all within the meaning of Section 856(e)(4)(B) of
         the Code; or

                  (D) authorize any Person to Directly Operate any REO Property
         on any date more than 90 days after its date of acquisition by the
         Trust Fund;

unless, in any such case, the Servicer has obtained an Opinion of Counsel,
provided to the Trustee and the NIMS Insurer, to the effect that such action
will not cause such REO Property to fail to qualify as "foreclosure property"
within the meaning of Section 860G(a)(8) of the Code at any time that it is held
by the REMIC, in which case the Servicer may take such actions as are specified
in such Opinion of Counsel.

                  The Servicer may contract with any Independent Contractor for
the operation and management of any REO Property, provided that:

                  (1) the terms and conditions of any such contract shall not be
         inconsistent herewith;

                  (2) any such contract shall require, or shall be administered
         to require, that the Independent Contractor pay all costs and expenses
         incurred in connection with the operation and management of such REO
         Property, including those listed above and remit all related

                                      -87-
<PAGE>

         revenues (net of such costs and expenses) to the Servicer as soon as
         practicable, but in no event later than thirty days following the
         receipt thereof by such Independent Contractor;

                  (3) none of the provisions of this Section 3.23(c) relating to
         any such contract or to actions taken through any such Independent
         Contractor shall be deemed to relieve the Servicer of any of its duties
         and obligations to the Trustee on behalf of the Certificateholders with
         respect to the operation and management of any such REO Property; and

                  (4) the Servicer shall be obligated with respect thereto to
         the same extent as if it alone were performing all duties and
         obligations in connection with the operation and management of such REO
         Property.

                  The Servicer shall be entitled to enter into any agreement
with any Independent Contractor performing services for it related to its duties
and obligations hereunder for indemnification of the Servicer by such
Independent Contractor, and nothing in this Agreement shall be deemed to limit
or modify such indemnification. The Servicer shall be solely liable for all fees
owed by it to any such Independent Contractor, irrespective of whether the
Servicer's compensation pursuant to Section 3.18 is sufficient to pay such fees;
provided, however, that to the extent that any payments made by such Independent
Contractor would constitute Servicing Advances if made by the Servicer, such
amounts shall be reimbursable as Servicing Advances made by the Servicer.

                  (d) In addition to the withdrawals permitted under Section
3.23(c), the Servicer may from time to time make withdrawals from the REO
Account for any REO Property: (i) to pay itself or any Sub-Servicer unpaid
Servicing Fees in respect of the related Mortgage Loan; and (ii) to reimburse
itself or any Sub-Servicer for unreimbursed Servicing Advances and Advances made
in respect of such REO Property or the related Mortgage Loan. On the Servicer
Remittance Date, the Servicer shall withdraw from each REO Account maintained by
it and deposit into the Distribution Account in accordance with Section
3.10(d)(ii), for distribution on the related Distribution Date in accordance
with Section 4.01, the income from the related REO Property received during the
prior calendar month, net of any withdrawals made pursuant to Section 3.23(c) or
this Section 3.23(d).

                  (e) Subject to the time constraints set forth in Section
3.23(a), each REO Disposition shall be carried out by the Servicer in a manner,
at such price and upon such terms and conditions as shall be normal and usual in
the servicing standard set forth in Section 3.01.

                  (f) The proceeds from the REO Disposition, net of any amount
required by law to be remitted to the Mortgagor under the related Mortgage Loan
and net of any payment or reimbursement to the Servicer or any Sub-Servicer as
provided above, shall be deposited in the Distribution Account in accordance
with Section 3.10(d)(ii) on the Servicer Remittance Date in the month following
the receipt thereof for distribution on the related Distribution Date in
accordance with Section 4.01. Any REO Disposition shall be for cash only (unless
changes in the REMIC Provisions made subsequent to the Startup Day allow a sale
for other consideration).

                  (g) The Servicer shall file information returns with respect
to the receipt of mortgage interest received in a trade or business, reports of
foreclosures and abandonments of any Mortgaged Property and cancellation of
indebtedness income with respect to any Mortgaged Property

                                      -88-
<PAGE>

as required by Sections 6050H, 6050J and 6050P of the Code, respectively. Such
reports shall be in form and substance sufficient to meet the reporting
requirements imposed by such Sections 6050H, 6050J and 6050P of the Code.

                  SECTION 3.24. Obligations of the Servicer in Respect of
                                Prepayment Interest Shortfalls.

                  Not later than 1:00 p.m. New York time on each Servicer
Remittance Date, the Servicer shall remit to the Distribution Account an amount
("Compensating Interest") equal to the lesser of (A) the aggregate of the
Prepayment Interest Shortfalls for the related Distribution Date and (B) its
aggregate Servicing Fee received in the related Due Period. The Servicer shall
not have the right to reimbursement for any amounts remitted to the Trustee in
respect of Compensating Interest. Such amounts so remitted shall be included in
the Available Funds and distributed therewith on the next Distribution Date. The
Servicer shall not be obligated to pay Compensating Interest with respect to
Relief Act Interest Shortfalls.

                  SECTION 3.25. [Reserved].

                  SECTION 3.26. Obligations of the Servicer in Respect of
                                Mortgage Rates and Monthly Payments.

                  In the event that a shortfall in any collection on or
liability with respect to the Mortgage Loans in the aggregate results from or is
attributable to adjustments to Mortgage Rates, Monthly Payments or Stated
Principal Balances that were made by the Servicer in a manner not consistent
with the terms of the related Mortgage Note and this Agreement, the Servicer,
upon discovery or receipt of notice thereof, immediately shall deposit in the
Collection Account from its own funds the amount of any such shortfall and shall
indemnify and hold harmless the Trust Fund, the Trustee, the Depositor and any
successor servicer in respect of any such liability. Such indemnities shall
survive the termination or discharge of this Agreement. Notwithstanding the
foregoing, this Section 3.26 shall not limit the ability of the Servicer to seek
recovery of any such amounts from the related Mortgagor under the terms of the
related Mortgage Note, as permitted by law.

                  SECTION 3.27. [Reserved].

                  SECTION 3.28. [Reserved]

                  SECTION 3.29. Advance Facility.

                  The Servicer is hereby authorized to enter into a financing or
other facility (any such arrangement, an "Advance Facility") under which (1) the
Servicer sells, assigns or pledges to another Person (together with such
Person's successors and assigns, an "Advancing Person") the Servicer's rights
under this Agreement to be reimbursed for any Advances or Servicing Advances
and/or (2) an Advancing Person agrees to fund some or all Advances and/or
Servicing Advances required to be made by the Servicer pursuant to this
Agreement. No consent of the Depositor, the Trustee, the Certificateholders or
any other party shall be required before the Servicer may enter into an Advance

                                      -89-
<PAGE>

Facility. The Servicer shall notify each other party to this Agreement prior to
or promptly after entering into or terminating any Advance Facility.
Notwithstanding the existence of any Advance Facility under which an Advancing
Person agrees to fund Advances and/or Servicing Advances on the Servicer's
behalf, the Servicer shall remain obligated pursuant to this Agreement to make
Advances and Servicing Advances pursuant to and as required by this Agreement.
If the Servicer enters into an Advance Facility, and for so long as an Advancing
Person remains entitled to receive reimbursement for any Advances including
Nonrecoverable Advances ("Advance Reimbursement Amounts") and/or Servicing
Advances including Nonrecoverable Advances ("Servicing Advance Reimbursement
Amounts" and together with Advance Reimbursement Amounts, "Reimbursement
Amounts") (in each case to the extent such type of Reimbursement Amount is
included in the Advance Facility), as applicable, pursuant to this Agreement,
then, the Servicer shall identify such Reimbursement Amounts consistent with the
reimbursement rights set forth in Section 3.11(a)(ii), (iii), (vi) and (vii) and
remit such Reimbursement Amounts in accordance with Section 3.10(b) or otherwise
in accordance with the documentation establishing the Advance Facility to such
Advancing Person or to a trustee, agent or custodian (an "Advance Facility
Trustee") designated by such Advancing Person. Notwithstanding anything to the
contrary herein, in no event shall Advance Reimbursement Amounts or Servicing
Advance Reimbursement Amounts be included in the Available Funds or distributed
to Certificateholders.

                  Reimbursement Amounts shall consist solely of amounts in
respect of Advances and/or Servicing Advances made with respect to the Mortgage
Loans for which the Servicer would be permitted to reimburse itself in
accordance with this Agreement, assuming the Servicer or the Advancing Person
had made the related Advance(s) and/or Servicing Advance(s). Notwithstanding the
foregoing, except with respect to reimbursement of Nonrecoverable Advances as
set forth in this Agreement, no Person shall be entitled to reimbursement from
funds held in the Collection Account for future distribution to
Certificateholders pursuant to this Agreement. None of the Depositor or the
Trustee shall have any duty or liability with respect to the calculation or
payment of any Reimbursement Amount, nor shall the Depositor or the Trustee have
any responsibility to track or monitor the administration of the Advance
Facility or the payment of Reimbursement Amounts to the related Advancing Person
or Advance Facility Trustee. The Servicer shall maintain and provide to any
successor servicer and (upon request) the Trustee a detailed accounting on a
loan by loan basis as to amounts advanced by, sold, pledged or assigned to, and
reimbursed to any Advancing Person. The successor servicer shall be entitled to
rely on any such information provided by the predecessor servicer, and the
successor servicer shall not be liable for any errors in such information.

                  An Advancing Person who receives an assignment or pledge of
the rights to be reimbursed for Advances and/or Servicing Advances, and/or whose
obligations hereunder are limited to the funding or purchase of Advances and/or
Servicing Advances shall not be required to meet the criteria for qualification
of a subservicer set forth in this Agreement.

                  Reimbursement Amounts distributed with respect to each
Mortgage Loan shall be allocated to outstanding unreimbursed Advances or
Servicing Advances (as the case may be) made with respect to that Mortgage Loan
on a "first in, first out" (FIFO) basis. Such documentation shall also require
the Servicer to provide to the related Advancing Person or Advance Facility
Trustee loan by loan information with respect to each Reimbursement Amount
distributed to such Advancing Person or Advance Facility Trustee, to enable the
Advancing Person or Advance Facility Trustee to

                                      -90-
<PAGE>

make the FIFO allocation of each Reimbursement Amount with respect to each
Mortgage Loan. The Servicer shall remain entitled to be reimbursed for all
Advances and Servicing Advances funded by the Servicer to the extent the related
rights to be reimbursed therefor have not been sold, assigned or pledged to an
Advancing Person.

                  The Servicer shall indemnify the Depositor, the Trustee, any
successor servicer and the Trust Fund resulting from any claim by the related
Advancing Person arising out of the Advance Facility, except to the extent that
such claim, loss, liability or damage resulted from or arose out of negligence,
recklessness or willful misconduct or breach of its duties hereunder on the part
of the Depositor, the Trustee or any successor servicer.

                  Any amendment to this Section 3.29 or to any other provision
of this Agreement that may be necessary or appropriate to effect the terms of an
Advance Facility as described generally in this Section 3.29, including
amendments to add provisions relating to a successor servicer, may be entered
into by the Trustee, the Depositor and the Servicer without the consent of any
Certificateholder, provided such amendment complies with Section 11.01 hereof.
All reasonable costs and expenses (including attorneys' fees) of each party
hereto of any such amendment shall be borne solely by the Servicer. Prior to
entering into an Advance Facility, the Servicer shall notify the Advancing
Person in writing that: (a) the Advances and/or Servicing Advances purchased,
financed by and/or pledged to the Advancing Person are obligations owed to the
Servicer on a non-recourse basis payable only from the cash flows and proceeds
received under this Agreement for reimbursement of Advances and/or Servicing
Advances only to the extent provided herein, and the Trustee and the Trust are
not otherwise obligated or liable to repay any Advances and/or Servicing
Advances financed by the Advancing Person; (b) the Servicer will be responsible
for remitting to the Advancing Person the applicable amounts collected by it as
reimbursement for Advances and/or Servicing Advances funded by the Advancing
Person, subject to the restrictions and priorities created in this Agreement;
and (c) the Trustee shall not have any responsibility to track or monitor the
administration of the Advance Facility between the Servicer and the Advancing
Person.

                                      -91-
<PAGE>

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

                  SECTION 4.01. Distributions.

                  (a)(1) On each Distribution Date, the following amounts, in
the following order of priority, shall be distributed by REMIC I to REMIC II on
account of the REMIC I Regular Interests or withdrawn from the Distribution
Account and distributed to the holders of the Class R Certificates (in respect
of the Class R-I Interest), as the case may be:

                  (i) (a) to Holders of REMIC I Regular Interest I-LTAA, REMIC I
         Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I
         Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I
         Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I
         Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I
         Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I
         Regular Interest I-LTM7, REMIC I Regular Interest I-LTZZ and REMIC I
         Regular Interest I-LTP, PRO RATA, in an amount equal to (A) the
         Uncertificated Interest for such Distribution Date, plus (B) any
         amounts in respect thereof remaining unpaid from previous Distribution
         Dates. Amounts payable as Uncertificated Interest in respect of REMIC I
         Regular Interest I-LTZZ shall be reduced and deferred when the REMIC I
         Overcollateralized Amount is less than the REMIC I Required
         Overcollateralization Amount, by the lesser of (x) the amount of such
         difference and (y) the Maximum I-LTZZ Uncertificated Interest Deferral
         Amount and such amount will be payable to the Holders of REMIC I
         Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I
         Regular Interest I-LTA3, REMIC I Regular Interest I- LTA4, REMIC I
         Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I
         Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I
         Regular Interest I- LTM5, REMIC I Regular Interest I-LTM6 and REMIC I
         Regular Interest I-LTM7 in the same proportion as the
         Overcollateralization Deficiency Amount is allocated to the
         Corresponding Certificates and the Uncertificated Balance of REMIC I
         Regular Interest I- LTZZ shall be increased by such amount; and

                           (b) to Holders of REMIC I Regular Interest I-LT1SUB,
         REMIC I Regular Interest I-LT1GRP, REMIC I Regular Interest I-LT2SUB,
         REMIC I Regular Interest I- LT2GRP, REMIC I Regular Interest I-LT3SUB,
         REMIC I Regular Interest I-LT3GRP and REMIC I Regular Interest I-LTXX,
         PRO RATA, in an amount equal to (A) the Uncertificated Interest for
         such Distribution Date, plus (B) any amounts in respect thereof
         remaining unpaid from previous Distribution Dates;

                  (ii) second, to the Holders of REMIC I Regular Interests, in
         an amount equal to the remainder of the REMIC I Marker Allocation
         Percentage of Available Funds for such Distribution Date after the
         distributions made pursuant to clause (i) above, allocated as follows:

                  (a) 98.00% of such remainder to the Holders of REMIC I Regular
                  Interest I- LTAA

                                      -92-
<PAGE>

          and REMIC I Regular Interest I-LTP, until the Uncertificated Balance
         of such REMIC I Regular Interest is reduced to zero, provided, however,
         that REMIC I Regular Interest I-LTP shall not be reduced until the
         Distribution Date immediately following the expiration of the latest
         Prepayment Charge as identified on the Prepayment Charge Schedule or
         any Distribution Date thereafter, at which point such amount shall be
         distributed to REMIC I Regular Interest I-LTP, until $100 has been
         distributed pursuant to this clause;

                           (b) 2.00% of such remainder, first to the Holders of
         REMIC I Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC
         I Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I
         Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I
         Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I
         Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6 and REMIC I
         Regular Interest I-LTM7, equal to 1.00% of and in the same proportion
         as principal payments are allocated to the Corresponding Certificates,
         until the Uncertificated Balances of such REMIC I Regular Interests are
         reduced to zero and second, to the Holders of REMIC I Regular Interest
         I-LTZZ, 1.00%, until the Uncertificated Balance of such REMIC I Regular
         Interest is reduced to zero; and

                           (c) any remaining amount to the Holders of the Class
                  R Certificates (in respect
         of the Class R-I Interest);

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that
are attributable to an Overcollateralization Release Amount shall be allocated
to Holders of (i) REMIC I Regular Interest I-LTAA and REMIC I Regular Interest
I-LTP, in that order and (ii) REMIC I Regular Interest I-LTZZ, respectively;
provided that REMIC I Regular Interest I-LTP shall not be reduced until the
Distribution Date immediately following the expiration of the latest Prepayment
Charge as identified on the Prepayment Charge Schedule or any Distribution Date
thereafter, at which point such amount shall be distributed to REMIC I Regular
Interest I-LTP, until $100 has been distributed pursuant to this clause.

                  On each Distribution Date, all amounts representing Prepayment
Charges in respect of the Mortgage Loans during the related Prepayment Period
and any Servicer Prepayment Charge Payment Amount paid by the Servicer during
the related Prepayment Period will be distributed by REMIC I to the Holders of
REMIC I Regular Interest I-LTP. The payment of the foregoing amounts to the
Holders of REMIC I Regular Interest I-LTP shall not reduce the Uncertificated
Balance thereof.

                  (iii) to the Holders of REMIC I Regular Interests, in an
         amount equal to the remainder of the REMIC I Sub WAC Allocation
         Percentage of Available Funds for such Distribution Date after the
         distributions made pursuant to clause (i) above, allocated so that
         distributions of principal shall be deemed to be made to the REMIC I
         Regular Interests first, so as to keep the Uncertificated Balance of
         each REMIC I Regular Interest ending with the designation "GRP" equal
         to 0.01% of the aggregate Stated Principal Balance of the Mortgage
         Loans in the related Loan Group; second, to each REMIC I Regular
         Interest ending with the designation "SUB," so that the Uncertificated
         Balance of each such REMIC I Regular

                                      -93-
<PAGE>

         Interest is equal to 0.01% of the excess of (x) the aggregate Stated
         Principal Balance of the Mortgage Loans in the related Loan Group over
         (y) the Certificate Principal Balance of the Class A Certificate in the
         related Loan Group (except that if any such excess is a larger number
         than in the preceding distribution period, the least amount of
         principal shall be distributed to such REMIC I Regular Interests such
         that the REMIC I Subordinated Balance Ratio is maintained); and third,
         any remaining principal to REMIC I Regular Interest I- LTXX.

                  (2)(I) On each Distribution Date, the Trustee shall withdraw
from the Distribution Account that portion of Available Funds for such
Distribution Date consisting of the Group I Interest Remittance Amount for such
Distribution Date, and make the following distributions in the order of priority
described below, in each case to the extent of the Group I Interest Remittance
Amount remaining for such Distribution Date:

                  (i) to the Holders of the Class A-1 Certificates, the Monthly
         Interest Distributable Amount and the Unpaid Interest Shortfall Amount,
         if any, for such Certificates for such Distribution Date; and

                  (ii) concurrently, to the Holders of the Class A-2
         Certificates and the Group III Certificates, on a PRO RATA basis, based
         on the entitlement of each such Class, an amount equal to the excess,
         if any, of (x) the amount required to be distributed pursuant to
         Section 4.01(a)(2)(II)(i) and Section 4.01(a)(2)(III)(i), as
         applicable, for such Distribution Date over (y) the amount actually
         distributed pursuant to such sections, from the Group II Interest
         Remittance Amount or the Group III Interest Remittance Amount, as
         applicable.

                  (II) On each Distribution Date the Trustee shall withdraw from
the Distribution Account that portion of Available Funds for such Distribution
Date consisting of the Group II Interest Remittance Amount for such Distribution
Date, and make the following distributions in the order of priority described
below, in each case to the extent of the Group II Interest Remittance Amount
remaining for such Distribution Date:

                  (i) to the Holders of the Class A-2 Certificates, the Monthly
         Interest Distributable Amount and the Unpaid Interest Shortfall Amount,
         if any, for such Certificates for such Distribution Date; and

                  (ii) concurrently, to the Holders of the Class A-1
         Certificates and the Group III Certificates, on a PRO RATA basis, based
         on the entitlement of each such Class, an amount equal to the excess,
         if any, of (x) the amount required to be distributed pursuant to
         Section 4.01(a)(2)(I)(i) and Section 4.01(a)(2)(III)(i), as applicable,
         for such Distribution Date over (y) the amount actually distributed
         pursuant to such sections from the Group I Interest Remittance Amount
         or the Group III Interest Remittance Amount, as applicable.

                  (III) On each Distribution Date, the Trustee shall withdraw
from the Distribution Account that portion of Available Funds for such
Distribution Date consisting of the Group III Interest Remittance Amount for
such Distribution Date, and make the following distributions in the

                                      -94-
<PAGE>

order of priority described below, in each case to the extent of the Group III
Interest Remittance Amount remaining for such Distribution Date:

                  (i) to the Holders of the Group III Certificates, on a PRO
         RATA basis based on the entitlement of each such Class, the Monthly
         Interest Distributable Amount and the Unpaid Interest Shortfall Amount,
         if any, for such Certificates for such Distribution Date; and

                  (ii) concurrently, to the Holders of the Class A-1
         Certificates and the Class A-2 Certificates, on a PRO RATA basis, based
         on the entitlement of each such Class, an amount equal to the excess,
         if any, of (x) the amount required to be distributed pursuant to
         Section 4.01(a)(2)(I)(i) and Section 4.01(a)(2)(II)(i), as applicable,
         for such Distribution Date over (y) the amount actually distributed
         pursuant to such sections from the Group I Interest Remittance Amount
         or the Group II Interest Remittance Amount, as applicable.

                  (IV) On each Distribution Date, following the distributions
made pursuant to Section 4.01(a)(2)(I), Section 4.01(a)(2)(II) and Section
4.01(a)(2)(III)(i) above, the Ttrustee shall make the following distributions in
the order of priority described below, in each case to the extent of the sum of
the Group I Interest Remittance Amount, the Group II Interest Remittance Amount
and the Group III Interest Remittance Amount remaining undistributed for such
Distribution Date:

                  (i) to the Holders of the Class M-1 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates;

                  (ii) to the Holders of the Class M-2 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates;

                  (iii) to the Holders of the Class M-3 Certificates, the
         Monthly Interest Distributable Amount allocable to such Certificates;

                  (iv) to the Holders of the Class M-4 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates;

                  (v) to the Holders of the Class M-5 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates;

                  (vi) to the Holders of the Class M-6 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates; and

                  (vii) to the Holders of the Class M-7 Certificates, the
         Monthly Interest Distributable Amount allocable to such Certificates.

                  (3)(I) On each Distribution Date (a) prior to the Stepdown
Date or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the Group I Principal Distribution Amount shall be
made in the following amounts and order of priority:

                                      -95-
<PAGE>

                  (i) first, to the Holders of the Class A-1 Certificates, until
         the Certificate Principal Balance thereof has been reduced to zero; and

                  (ii) second, concurrently, to the Holders of the Class A-2
         Certificates and the Group III Certificates (allocated among the Group
         III Certificates in the priority described below), on a PRO RATA basis
         based on the Certificate Principal Balance of each such Class or group,
         after taking into account the distribution of the Group II Principal
         Distribution Amount and the Group III Principal Distribution Amount
         already distributed, respectively, as described herein, until the
         Certificate Principal Balance of each such Class or group has been
         reduced to zero.

                  (II) On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the Group II Principal Distribution Amount shall be
made in the following amounts and order of priority:

                  (i) first, to the Holders of the Class A-2 Certificates, until
         the Certificate Principal Balance thereof has been reduced to zero; and

                  (ii) second, concurrently, to the Holders of the Class A-1
         Certificates and the Group III Certificates (allocated among the Group
         III Certificates in the priority described below), on a PRO RATA basis
         based on the Certificate Principal Balance of each such Class or group,
         after taking into account the distribution of the Group I Principal
         Distribution Amount and the Group III Principal Distribution Amount
         already distributed, respectively, as described herein, until the
         Certificate Principal Balance of each such Class or group has been
         reduced to zero.

                  (III) On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the Group III Principal Distribution Amount shall be
made in the following amounts and order of priority:

                  (i) first, to the Holders of the Group III Certificates
         (allocated among the Group III Certificates in the priority described
         below), until the Certificate Principal Balances thereof have been
         reduced to zero; and

                  (ii) second, concurrently, to the Holders of the Class A-1
         Certificates and the Class A-2 Certificates, on a PRO RATA basis based
         on the Certificate Principal Balance of each such Class, after taking
         into account the distribution of the Group I Principal Distribution
         Amount and the Group II Principal Distribution Amount already
         distributed, respectively, as described herein, until the Certificate
         Principal Balance of each Class has been reduced to zero.

                  (IV) On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the sum of the Group I Principal Distribution Amount,
the Group II Principal Distribution Amount and the Group III Principal
Distribution Amount remaining undistributed for such Distribution Date shall be
made in the following amounts and order of priority:

                                      -96-
<PAGE>

                  (i) first, to the Holders of the Class M-1 Certificates, until
         the Certificate Principal Balance thereof has been reduced to zero;

                  (ii) second, to the Holders of the Class M-2 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (iii) third, to the Holders of the Class M-3 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (iv) fourth, to the Holders of the Class M-4 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (v) fifth, to the Holders of the Class M-5 Certificates, until
         the Certificate Principal Balance thereof has been reduced to zero;

                  (vi) sixth, to the Holders of the Class M-6 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero; and

                  (vii) seventh, to the Holders of the Class M-7 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero.

                  (V) On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, distributions in respect
of principal to the extent of the Group I Principal Distribution Amount shall be
made in the following amounts and order of priority:

                  (i) first, to the Holders of the Class A-1 Certificates, the
         Group I Senior Principal Distribution Amount until the Certificate
         Principal Balance thereof has been reduced to zero; and

                  (ii) second, concurrently, to the Holders of the Class A-2
         Certificates and the Group III Certificates (allocated among the Group
         III Certificates in the priority described below), on a PRO RATA basis
         based on the remaining undistributed Group II Senior Principal
         Distribution Amount and Group III Senior Principal Distribution Amount,
         after taking into account the distribution of the Group II Principal
         Distribution Amount and the Group III Principal Distribution Amount,
         respectively, as described herein, up to an amount equal to the Group
         II Senior Principal Distribution Amount and the Group III Senior
         Principal Distribution Amount, respectively, remaining undistributed,
         until the Certificate Principal Balance of each such Class or group has
         been reduced to zero.

                  (VI) On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, distributions in respect
of principal to the extent of the Group II Principal Distribution Amount shall
be made in the following amounts and order of priority:

                  (i) first, to the Holders of the Class A-2 Certificates, the
         Group II Senior Principal Distribution Amount until the Certificate
         Principal Balance thereof has been reduced to zero; and

                                      -97-
<PAGE>

                  (ii) second, concurrently, to the Holders of the Class A-1
         Certificates and the Group III Certificates (allocated among the Group
         III Certificates in the priority described below), on a PRO RATA basis
         based on the remaining undistributed Group I Senior Principal
         Distribution Amount and Group III Senior Principal Distribution Amount,
         after taking into account the distribution of the Group I Principal
         Distribution Amount and the Group III Principal Distribution Amount,
         respectively, as described herein, up to an amount equal to the Group I
         Senior Principal Distribution Amount and the Group III Senior Principal
         Distribution Amount, respectively, remaining undistributed, until the
         Certificate Principal Balance of each such Class or group has been
         reduced to zero.

                  (VII) On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, distributions in respect
of principal to the extent of the Group III Principal Distribution Amount shall
be made in the following amounts and order of priority:

                  (i) first, to the Holders of the Group III Certificates
         (allocated among the Group III Certificates in the priority described
         below), the Group III Senior Principal Distribution Amount until the
         Certificate Principal Balances thereof have been reduced to zero; and

                  (ii) second, concurrently, to the Holders of the Class A-1
         Certificates and the Class A-2 Certificates, on a PRO RATA basis based
         on the remaining undistributed Group I Senior Principal Distribution
         Amount and Group II Senior Principal Distribution Amount, after taking
         into account the distribution of the Group I Principal Distribution
         Amount and the Group II Principal Distribution Amount, respectively, as
         described herein, up to an amount equal to the Group I Senior Principal
         Distribution Amount and the Group II Senior Principal Distribution
         Amount, respectively, remaining undistributed, until the Certificate
         Principal Balance of each Class has been reduced to zero.

                  (VIII) On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, distributions in respect
of principal to the extent of the sum of the Group I Principal Distribution
Amount, the Group II Principal Distribution Amount and the Group III Principal
Distribution Amount remaining undistributed for such Distribution Date shall be
made in the following amounts and order of priority:

                  (i) first, to the Holders of the Class M-1 Certificates, the
         Class M-1 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (ii) second, to the Holders of the Class M-2 Certificates, the
         Class M-2 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (iii) third, to the Holders of the Class M-3 Certificates, the
         Class M-3 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (iv) fourth, to the Holders of the Class M-4 Certificates, the
         Class M-4 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                                      -98-
<PAGE>

                  (v) fifth, to the Holders of the Class M-5 Certificates, the
         Class M-5 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (vi) sixth, to the Holders of the Class M-6 Certificates, the
         Class M-6 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero; and

                  (vii) seventh, to the Holders of the Class M-7 Certificates,
         the Class M-7 Principal Distribution Amount until the Certificate
         Principal Balance thereof has been reduced to zero.

                  With respect to the Group III Certificates, all principal
distributions will be distributed, first, to the Holders of the Class A-3
Certificates, until the Certificate Principal Balance of the Class A-3
Certificates has been reduced to the Class A-3 Scheduled Class Balance for such
Distribution Date, second, to the Holders of the Class A-4 Certificates, until
the Certificate Principal Balance of the Class A-4 Certificates has been reduced
to zero and third, to the Holders of the Class A-3 Certificates, without regard
to the Class A-3 Scheduled Class Balance for such Distribution Date, until the
Certificate Principal Balance of the Class A-3 Certificates has been reduced to
zero; provided, however, on any Distribution Date on which the aggregate
Certificate Principal Balance of the Mezzanine Certificates and the Class CE
Certificates has been reduced to zero, notwithstanding anything contained herein
to the contrary, all distributions of principal to the Group III Certificates
will be distributed concurrently, on a PRO RATA basis based on the Certificate
Principal Balance of each such Class.

                  (4) On each Distribution Date, the Net Monthly Excess Cashflow
shall be distributed as follows:

                  (i) to the Holders of the Class or Classes of Certificates
         then entitled to receive distributions in respect of principal, in an
         amount equal to any Extra Principal Distribution Amount, distributable
         to such Holders as part of the Group I Principal Distribution Amount,
         the Group II Principal Distribution Amount and/or the Group III
         Principal Distribution Amount as described under Section 4.01(a)(3)
         above;

                  (ii) to the Holders of the Class M-1 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (iii) to the Holders of the Class M-1 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (iv) to the Holders of the Class M-2 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (v) to the Holders of the Class M-2 Certificates, in an amount
         equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (vi) to the Holders of the Class M-3 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                                      -99-
<PAGE>

                  (vii) to the Holders of the Class M-3 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (viii) to the Holders of the Class M-4 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (ix) to the Holders of the Class M-4 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (x) to the Holders of the Class M-5 Certificates, in an amount
         equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xi) to the Holders of the Class M-5 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (xii) to the Holders of the Class M-6 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xiii) to the Holders of the Class M-6 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (xiv) to the Holders of the Class M-7 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xv) to the Holders of the Class M-7 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (xvi) to the Net WAC Rate Carryover Reserve Account, the
         amount by which any Net WAC Rate Carryover Amounts for such
         Distribution Date exceed the amounts received by the Trustee under the
         Cap Contracts;

                  (xvii) to the holders of the Class M-7 Certificates, in an
         amount equal to the Class M-7 Realized Loss Interest Amount allocable
         to such Certificates;

                  (xviii) to the Holders of the Class CE Certificates, (a) the
         Monthly Interest Distributable Amount and any Overcollateralization
         Release Amount for such Distribution Date and (b) on any Distribution
         Date on which the aggregate Certificate Principal Balance of the Class
         A Certificates and the Mezzanine Certificates has been reduced to zero,
         any remaining amounts in reduction of the Certificate Principal Balance
         of the Class CE Certificates, until the Certificate Principal Balance
         thereof has been reduced to zero;

                  (xix) if such Distribution Date follows the Prepayment Period
         during which occurs the latest date on which a Prepayment Charge may be
         required to be paid in respect of any Mortgage Loans, to the Holders of
         the Class P Certificates, in reduction of the Certificate Principal
         Balance thereof, until the Certificate Principal Balance thereof is
         reduced to zero; and

                                     -100-
<PAGE>

                  (xx) any remaining amounts to the Holders of the Residual
         Certificates (in respect of the appropriate Class R Interest).

                  Without limiting the provisions of Section 9.01(b), by
acceptance of the Residual Certificates the Holders of the Residual Certificates
agree, and it is the understanding of the parties hereto, that for so long as
any of the notes issued pursuant to the Indenture are outstanding or any amounts
are reimbursable or payable to the NIMS Insurer in accordance with the terms of
the Indenture, to pledge their rights to receive any amounts otherwise
distributable to the Holders of the Class R Certificates (and such rights are
hereby assigned and transferred) to the Holders of the Class CE Certificates.

                  On each Distribution Date, after making the distributions of
the Available Funds as set forth above, the Trustee will FIRST, withdraw from
the Net WAC Rate Carryover Reserve Account all income from the investment of
funds in the Net WAC Rate Carryover Reserve Account and distribute such amount
to the Holders of the Class CE Certificates, and SECOND, withdraw from the Net
WAC Rate Carryover Reserve Account, to the extent of amounts remaining on
deposit therein, the amount of any Net WAC Rate Carryover Amount for such
Distribution Date and distribute such amount in the following order of priority:

                  (A) to the Class A-1 Certificates, the Net WAC Rate Carryover
         Amount for such Class, but only to the extent of amounts paid under the
         Class A-1 Cap Contract;

                  (B) to the Class A-2 Certificates, the Net WAC Rate Carryover
         Amount for such Class, but only to the extent of amounts paid under the
         Class A-2 Cap Contract;

                  (C) to the Group III Certificates, on a PRO RATA basis based
         on the Net WAC Rate Carryover Amount for each such Class, the Net WAC
         Rate Carryover Amount for such Class, but only to the extent of amounts
         paid under the Group III Cap Contract;

                  (D) concurrently, to the Mezzanine Certificates, on a PRO RATA
         basis based on the Net WAC Rate Carryover Amount for each such Class,
         the Net WAC Rate Carryover Amount for each such Class, but only to the
         extent of amounts paid under the Mezzanine Cap Contract;

                  (E) to the Class A Certificates and the Mezzanine
         Certificates, any related unpaid Net WAC Rate Carryover Amount (after
         taking into account distributions pursuant to (A), (B), (C) and (D)
         above), distributed in the following order of priority:

                           (i) to the Class A Certificates, on a PRO RATA basis
                  based on the remaining Net WAC Rate Carryover Amount for each
                  such Class;

                           (ii) to the Class M-1 Certificates;

                           (iii) to the Class M-2 Certificates;

                           (iv) to the Class M-3 Certificates;

                                     -101-
<PAGE>

                           (v) to the Class M-4 Certificates;

                           (vi) to the Class M-5 Certificates;

                           (vii) to the Class M-6 Certificates; and

                           (viii) to the Class M-7 Certificates.

                  On each Distribution Date, the Trustee shall withdraw any
amounts then on deposit in the Distribution Account that represent (i)
Prepayment Charges collected by the Servicer in connection with the Principal
Prepayment of any of the Mortgage Loans or (ii) any Servicer Prepayment Charge
Payment Amount, and shall distribute such amounts to the Holders of the Class P
Certificates. Such distributions shall not be applied to reduce the Certificate
Principal Balance of the Class P Certificates.

                  Following the foregoing distributions, an amount equal to the
amount of Subsequent Recoveries remitted to the Servicer shall be applied to
increase the Certificate Principal Balance of the Class of Certificates with the
Highest Priority up to the extent of such Realized Losses previously allocated
to that Class of Certificates pursuant to Section 4.04. An amount equal to the
amount of any remaining Subsequent Recoveries shall be applied to increase the
Certificate Principal Balance of the Class of Certificates with the next Highest
Priority, up to the amount of such Realized Losses previously allocated to that
Class of Certificates pursuant to Section 4.04. Holders of such Certificates
will not be entitled to any distribution in respect of interest on the amount of
such increases for any Accrual Period preceding the Distribution Date on which
such increase occurs. Any such increases shall be applied to the Certificate
Principal Balance of each Certificate of such Class in accordance with its
respective Percentage Interest.

                  (c) All distributions made with respect to each Class of
Certificates on each Distribution Date shall be allocated PRO RATA among the
outstanding Certificates in such Class based on their respective Percentage
Interests. Distributions in respect of each Class of Certificates on each
Distribution Date will be made to the Holders of the respective Class of record
on the related Record Date (except as otherwise provided in Section 4.01(e) or
Section 9.01 respecting the final distribution on such Class), based on the
aggregate Percentage Interest represented by their respective Certificates, and
shall be made by wire transfer of immediately available funds to the account of
any such Holder at a bank or other entity having appropriate facilities
therefor, if such Holder shall have so notified the Trustee in writing at least
five Business Days prior to the Record Date immediately prior to such
Distribution Date and is the registered owner of Certificates having an initial
aggregate Certificate Principal Balance or Notional Amount that is in excess of
the lesser of (i) $5,000,000 or (ii) two-thirds of the initial Certificate
Principal Balance or Notional Amount of such Class of Certificates, or otherwise
by check mailed by first class mail to the address of such Holder appearing in
the Certificate Register. The final distribution on each Certificate will be
made in like manner, but only upon presentment and surrender of such Certificate
at the Corporate Trust Office of the Trustee or such other location specified in
the notice to Certificateholders of such final distribution.

                                     -102-
<PAGE>

                  Each distribution with respect to a Book-Entry Certificate
shall be paid to the Depository, as Holder thereof, and the Depository shall be
responsible for crediting the amount of such distribution to the accounts of its
Depository Participants in accordance with its normal procedures. Each
Depository Participant shall be responsible for disbursing such distribution to
the Certificate Owners that it represents and to each indirect participating
brokerage firm (a "brokerage firm" or "indirect participating firm") for which
it acts as agent. Each brokerage firm shall be responsible for disbursing funds
to the Certificate Owners that it represents. None of the Trustee, the Depositor
or the Servicer shall have any responsibility therefor except as otherwise
provided by this Agreement or applicable law.

                  (d) The rights of the Certificateholders to receive
distributions in respect of the Certificates, and all interests of the
Certificateholders in such distributions, shall be as set forth in this
Agreement. None of the Holders of any Class of Certificates, the Trustee or the
Servicer shall in any way be responsible or liable to the Holders of any other
Class of Certificates in respect of amounts properly previously distributed on
the Certificates.

                  (e) Except as otherwise provided in Section 9.01, whenever the
Trustee expects that the final distribution with respect to any Class of
Certificates will be made on the next Distribution Date, the Trustee shall, no
later than three (3) days before the related Distribution Date, mail to each
Holder on such date of such Class of Certificates a notice to the effect that:

                  (i) the Trustee expects that the final distribution with
         respect to such Class of Certificates will be made on such Distribution
         Date but only upon presentation and surrender of such Certificates at
         the office of the Trustee therein specified, and

                  (ii) no interest shall accrue on such Certificates from and
         after the end of the related Accrual Period.

                  Any funds not distributed to any Holder or Holders of
Certificates of such Class on such Distribution Date because of the failure of
such Holder or Holders to tender their Certificates shall, on such date, be set
aside and held in trust by the Trustee and credited to the account of the
appropriate non-tendering Holder or Holders. If any Certificates as to which
notice has been given pursuant to this Section 4.01(e) shall not have been
surrendered for cancellation within six months after the time specified in such
notice, the Trustee shall mail a second notice to the remaining non- tendering
Certificateholders to surrender their Certificates for cancellation in order to
receive the final distribution with respect thereto. If within one year after
the second notice all such Certificates shall not have been surrendered for
cancellation, the Trustee shall, directly or through an agent, mail a final
notice to the remaining non-tendering Certificateholders concerning surrender of
their Certificates but shall continue to hold any remaining funds for the
benefit of non-tendering Certificateholders. The costs and expenses of
maintaining the funds in trust and of contacting such Certificateholders shall
be paid out of the assets remaining in the Trust Fund. If within one year after
the final notice any such Certificates shall not have been surrendered for
cancellation, the Trustee shall pay to UBS Securities LLC all such amounts, and
all rights of non-tendering Certificateholders in or to such amounts shall
thereupon cease. No interest shall accrue or be payable to any Certificateholder
on any amount held in trust by the Trustee as a result of such
Certificateholder's failure to surrender its Certificate(s) for final payment
thereof in accordance with this Section

                                     -103-
<PAGE>

4.01(e). Any such amounts held in trust by the Trustee shall be held in an
Eligible Account and the Trustee may direct any depository institution
maintaining such account to invest the funds in one or more Permitted
Investments. All income and gain realized from the investment of funds deposited
in such accounts held in trust by the Trustee shall be for the benefit of the
Trustee; provided, however, that the Trustee shall deposit in such account the
amount of any loss of principal incurred in respect of any such Permitted
Investment made with funds in such accounts immediately upon the realization of
such loss.

                  (f) Notwithstanding anything to the contrary herein, (i) in no
event shall the Certificate Principal Balance of a Class A Certificate or a
Mezzanine Certificate be reduced more than once in respect of any particular
amount both (a) allocated to such Certificate in respect of Realized Losses
pursuant to Section 4.04 and (b) distributed to the Holder of such Certificate
in reduction of the Certificate Principal Balance thereof pursuant to this
Section 4.01 from Net Monthly Excess Cashflow and (ii) in no event shall the
Uncertificated Balance of a REMIC I Regular Interest be reduced more than once
in respect of any particular amount both (a) allocated to such REMIC I Regular
Interest in respect of Realized Losses pursuant to Section 4.04 and (b)
distributed on such REMIC I Regular Interest in reduction of the Uncertificated
Balance thereof pursuant to this Section 4.01.

                  SECTION 4.02. Statements to Certificateholders.

                  On each Distribution Date, the Trustee shall prepare and make
available on its website at www.usbank.com/abs for access by each Holder of the
Regular Certificates, the other parties hereto, and the NIMS Insurer, Rating
Agencies, a statement as to the distributions made on such Distribution Date
containing the following information:

                  (i) the amount of the distribution made on such Distribution
         Date to the Holders of the Certificates of each Class allocable to
         principal, and the amount of the distribution made on such Distribution
         Date to the Holders of the Class P Certificates allocable to Prepayment
         Charges and Servicer Prepayment Charge Payment Amounts;

                  (ii) the amount of the distribution made on such Distribution
         Date to the Holders of the Certificates of each Class allocable to
         interest;

                  (iii) the aggregate Servicing Fee (and any other compensation
         payable to the Servicer) and the Trustee Fee during the related Due
         Period and such other customary information as the Trustee deems
         necessary or desirable, or which a Certificateholder reasonably
         requests, to enable Certificateholders to prepare their tax returns;

                  (iv) the aggregate amount of Advances for such Distribution
         Date;

                  (v) the aggregate Stated Principal Balance of the Mortgage
         Loans and any REO Properties as of the close of business on such
         Distribution Date;

                                     -104-
<PAGE>

                  (vi) the number, aggregate Principal Balance, weighted average
         remaining term to maturity and weighted average Mortgage Rate of the
         Mortgage Loans as of the related Due Date;

                  (vii) the number and aggregate unpaid principal balance of
         Mortgage Loans (a) delinquent 30 to 59 days, (b) delinquent 60 to 89
         days, (c) delinquent 90 or more days, in each case, as of the last day
         of the preceding calendar month, (d) as to which foreclosure
         proceedings have been commenced and (e) with respect to which the
         related Mortgagor has filed for protection under applicable bankruptcy
         laws, with respect to whom bankruptcy proceedings are pending or with
         respect to whom bankruptcy protection is in force;

                  (viii) the total number and cumulative principal balance of
         all REO Properties as of the close of business on the last day of the
         preceding Prepayment Period;

                  (ix) [reserved];

                  (x) the aggregate amount of Principal Prepayments made during
         the related Prepayment Period;

                  (xi) the aggregate amount of Realized Losses incurred during
         the related Prepayment Period, the aggregate amount of Realized Losses
         incurred since the Closing Date and the aggregate amount of Subsequent
         Recoveries received during the related Prepayment Period and the
         cumulative amount of Subsequent Recoveries received since the Closing
         Date;

                  (xii) the aggregate amount of Extraordinary Trust Fund
         Expenses withdrawn from the Collection Account or the Distribution
         Account for such Distribution Date;

                  (xiii) the aggregate Certificate Principal Balance and
         Notional Amount, as applicable, of each Class of Certificates, after
         giving effect to the distributions, and allocations of Realized Losses,
         made on such Distribution Date, separately identifying any reduction
         thereof due to allocations of Realized Losses;

                  (xiv) the Certificate Factor for each such Class of
         Certificates applicable to such Distribution Date;

                  (xv) the Monthly Interest Distributable Amount in respect of
         the Class A Certificates, the Mezzanine Certificates and the Class CE
         Certificates for such Distribution Date and the Unpaid Interest
         Shortfall Amount, if any, with respect to the Class A Certificates and
         the Mezzanine Certificates on such Distribution Date, separately
         identifying any reduction thereof due to allocations of Realized
         Losses, Prepayment Interest Shortfalls and Relief Act Interest
         Shortfalls;

                  (xvi) the aggregate amount of any Prepayment Interest
         Shortfall for such Distribution Date, to the extent not covered by
         payments by the Servicer pursuant to Section 3.24;

                                     -105-
<PAGE>

                  (xvii) the aggregate amount of Relief Act Interest Shortfalls
         for such Distribution Date;

                  (xviii) the Overcollateralization Target Amount,
         Overcollateralized Amount and Overcollateralization Deficiency Amount
         and the Credit Enhancement Percentage for such Distribution Date;

                  (xix) the respective Pass-Through Rates applicable to the
         Class A Certificates, the Mezzanine Certificates and the Class CE
         Certificates for such Distribution Date and the Pass-Through Rate
         applicable to the Class A Certificates and the Mezzanine Certificates
         for the immediately succeeding Distribution Date;

                  (xx) the Aggregate Loss Severity Percentage;

                  (xxi) when the Stepdown Date or Trigger Event has occurred;

                  (xxii) the Available Funds;

                  (xxiii) the Net WAC Rate Carryover Amount for the Class A
         Certificates and the Mezzanine Certificates, if any, for such
         Distribution Date, the amount remaining unpaid after reimbursements
         therefor on such Distribution Date; and

                  (xxiv) payments, if any, made under the Cap Contracts.

                  In the case of information furnished pursuant to subclauses
(i) through (iii) above, the amounts shall be expressed as a dollar amount per
Single Certificate of the relevant Class.

                  Within a reasonable period of time after the end of each
calendar year, the Trustee shall, upon written request, forward to each Person
who at any time during the calendar year was a Holder of a Regular Certificate
and the NIMS Insurer a statement containing the information set forth in
subclauses (i) through (iii) above, aggregated for such calendar year or
applicable portion thereof during which such Person was a Certificateholder.
Such obligation of the Trustee shall be deemed to have been satisfied to the
extent that substantially comparable information shall be provided by the
Trustee pursuant to any requirements of the Code as from time to time are in
force.

                  On each Distribution Date, the Trustee shall make available on
its website at www.usbank.com/abs for access by the Depositor, the NIMS Insurer,
each Holder of a Residual Certificate and the Servicer, the reports available to
the Regular Certificateholders on such Distribution Date and a statement setting
forth the amounts, if any, actually distributed with respect to the Residual
Certificates, respectively, on such Distribution Date.

                  Within a reasonable period of time after the end of each
calendar year, the Trustee shall furnish to each Person who at any time during
the calendar year was a Holder of a Residual Certificate and the NIMS Insurer a
statement setting forth the amount, if any, actually distributed with respect to
the Residual Certificates, as appropriate, aggregated for such calendar year or
applicable portion thereof during which such Person was a Certificateholder.

                                     -106-
<PAGE>

                  The Trustee shall, upon request, furnish to each
Certificateholder and the NIMS Insurer, during the term of this Agreement, such
periodic, special, or other reports or information, whether or not provided for
herein, as shall be reasonable with respect to the Certificateholder, or
otherwise with respect to the purposes of this Agreement, all such reports or
information to be provided at the expense of the Certificateholder in accordance
with such reasonable and explicit instructions and directions as the
Certificateholder may provide. For purposes of this Section 4.02, the Trustee's
duties are limited to the extent that the Trustee receives timely reports as
required from the Servicer.

                  On each Distribution Date the Trustee shall provide Bloomberg
Financial Markets, L.P. ("Bloomberg") CUSIP level factors for each class of
Certificates as of such Distribution Date, using a format and media mutually
acceptable to the Trustee and Bloomberg.

                  SECTION 4.03. Remittance Reports; Advances.

                  (a) Not later than the eighteenth day of each calendar month
or if such eighteenth day is not a Business Day, the following Business Day, the
Servicer shall deliver to the Trustee and the NIMS Insurer by telecopy or
electronic mail (or by such other means as the Servicer and the Trustee may
agree from time to time) a Remittance Report with respect to the related
Distribution Date. Not later than the eighteenth day of each calendar month or
if such eighteenth day is not a Business Day, the following Business Day, the
Servicer shall deliver or cause to be delivered to the Trustee in addition to
the information provided on the Remittance Report, such other information
reasonably available to it with respect to the Mortgage Loans as the Trustee may
reasonably require to perform the calculations necessary to make the
distributions contemplated by Section 4.01 and to prepare the statements to
Certificateholders contemplated by Section 4.03. The Trustee shall not be
responsible to recompute, recalculate or verify any information provided to it
by the Servicer.

                  (b) The amount of Advances to be made by the Servicer for any
Distribution Date shall equal, subject to Section 4.03(d), the sum of (i) the
aggregate amount of Monthly Payments (net of the related Servicing Fee), due
during the related Due Period in respect of the Mortgage Loans, which Monthly
Payments were delinquent on a contractual basis as of the close of business on
the related Determination Date; provided however, that with respect to any
Balloon Mortgage Loan that is delinquent on its maturity date, the Servicer will
not be required to advance the related Balloon Payment but will be required to
continue to make Advances in accordance with this Section 4.04(b) with respect
to such Balloon Mortgage Loan in an amount equal to an assumed scheduled
interest that would otherwise be due based on the original amortization schedule
for that Balloon Mortgage Loan (with interest at the Mortgage Rate less the
Servicing Fee Rate) and (ii) with respect to each REO Property, which REO
Property was acquired during or prior to the related Due Period and as to which
REO Property an REO Disposition did not occur during the related Due Period, an
amount equal to the excess, if any, of the REO Imputed Interest on such REO
Property for the most recently ended calendar month, over the net income from
such REO Property transferred to the Distribution Account pursuant to Section
3.23 for distribution on such Distribution Date.

                  On or before 1:00 p.m. New York time on the Servicer
Remittance Date, the Servicer shall remit in immediately available funds to the
Trustee for deposit in the Distribution Account an amount equal to the aggregate
amount of Advances, if any, to be made in respect of the Mortgage

                                     -107-
<PAGE>

Loans and REO Properties for the related Distribution Date either (i) from its
own funds or (ii) from the Collection Account, to the extent of funds held
therein for future distribution (in which case it will cause to be made an
appropriate entry in the records of Collection Account that amounts held for
future distribution have been, as permitted by this Section 4.03, used by the
Servicer in discharge of any such Advance) or (iii) in the form of any
combination of (i) and (ii) aggregating the total amount of Advances to be made
by the Servicer with respect to the Mortgage Loans and REO Properties. Any
amounts held for future distribution used by the Servicer to make an Advance as
permitted in the preceding sentence shall be appropriately reflected in the
Servicer's records and replaced by the Servicer by deposit in the Collection
Account on or before any future Servicer Remittance Date to the extent that the
Available Funds for the related Distribution Date (determined without regard to
Advances to be made on the Servicer Remittance Date) shall be less than the
total amount that would be distributed to the Classes of Certificateholders
pursuant to Section 4.01 on such Distribution Date if such amounts held for
future distributions had not been so used to make Advances. The Trustee will
provide notice to the Servicer and the NIMS Insurer by telecopy by the close of
business on any Servicer Remittance Date in the event that the amount remitted
by the Servicer to the Trustee on such date is less than the Advances required
to be made by the Servicer for the related Distribution Date, as set forth in
the related Remittance Report.

                  (c) The obligation of the Servicer to make such Advances is
mandatory, notwithstanding any other provision of this Agreement but subject to
(d) below and (b) above with respect to Balloon Payments, and, with respect to
any Mortgage Loan, shall continue until the Mortgage Loan is paid in full or
until all Liquidation Proceeds thereon have been recovered, or a Final Recovery
Determination has been made thereon.

                  (d) Notwithstanding anything herein to the contrary, no
Advance or Servicing Advance shall be required to be made hereunder by the
Servicer if such Advance or Servicing Advance would, if made, constitute a
Nonrecoverable Advance or Nonrecoverable Servicing Advance, respectively. The
determination by the Servicer that it has made a Nonrecoverable Advance or a
Nonrecoverable Servicing Advance or that any proposed Advance or Servicing
Advance, if made, would constitute a Nonrecoverable Advance or Nonrecoverable
Servicing Advance, respectively, shall be evidenced by an Officers' Certificate
of the Servicer delivered to the Depositor, the NIMS Insurer and the Trustee.
Furthermore, the Servicer shall not be required to advance Relief Act Interest
Shortfalls.

                  SECTION 4.04. Allocation of Realized Losses.

                  (a) Not later than the eighteenth day of the calendar month in
which such Distribution Date occurs or if such eighteenth day is not a Business
Day, the following Business Day, the Servicer shall determine as to each
Mortgage Loan and REO Property: (i) the total amount of Realized Losses, if any,
incurred in connection with any Final Recovery Determinations made during the
related Prepayment Period; and (ii) the respective portions of such Realized
Losses allocable to interest and allocable to principal. Not later than the
eighteenth day of the calendar month in which such Distribution Date occurs or
if such eighteenth day is not a Business Day, the following Business Day, the
Servicer shall also determine as to each Mortgage Loan: (i) the total amount of
Realized Losses, if any, incurred in connection with any Deficient Valuations
made during the related Prepayment Period; and (ii) the total amount of Realized
Losses, if any, incurred in connection with

                                     -108-
<PAGE>

Debt Service Reductions in respect of Monthly Payments due during the related
Due Period. The information described in the preceding sentence that is to be
supplied by the Servicer shall be evidenced by an Officer's Certificate
delivered to the Trustee by the Servicer not later than the eighteenth day of
the calendar month in which such Distribution Date occurs or if such eighteenth
day is not a Business Day, the following Business Day, immediately following the
end of the Prepayment Period during which any such Realized Loss was incurred.

                  (b) All Realized Losses on the Mortgage Loans shall be
allocated by the Trustee on each Distribution Date as follows: first, to Net
Monthly Excess Cashflow; second, to the Class CE Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; third, to the
Class M-7 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero; fourth, to the Class M-6 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero; fifth, to the Class M-5
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; sixth, to the Class M-4 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; seventh, to the Class M-3
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; eighth, to the Class M-2 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; and ninth, to the Class M-1
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero. All Realized Losses to be allocated to the Certificate Principal
Balances of all Classes on any Distribution Date shall be so allocated after the
actual distributions to be made on such date as provided above. All references
above to the Certificate Principal Balance of any Class of Certificates shall be
to the Certificate Principal Balance of such Class immediately prior to the
relevant Distribution Date, before reduction thereof by any Realized Losses, in
each case to be allocated to such Class of Certificates, on such Distribution
Date.

                  Any allocation of Realized Losses to a Mezzanine Certificate
on any Distribution Date shall be made by reducing the Certificate Principal
Balance thereof by the amount so allocated; any allocation of Realized Losses to
a Class CE Certificate shall be made by reducing the amount otherwise payable in
respect thereof pursuant to Section 4.01(a)(4)(xviii). No allocations of any
Realized Losses shall be made to the Certificate Principal Balances of the Class
A Certificates or the Class P Certificates.

                  As used herein, an allocation of a Realized Loss on a "PRO
RATA basis" among two or more specified Classes of Certificates means an
allocation on a PRO RATA basis, among the various Classes so specified, to each
such Class of Certificates on the basis of their then outstanding Certificate
Principal Balances prior to giving effect to distributions to be made on such
Distribution Date. All Realized Losses and all other losses allocated to a Class
of Certificates hereunder will be allocated among the Certificates of such Class
in proportion to the Percentage Interests evidenced thereby.

                  (c)(i) The REMIC I Marker Percentage of all Realized Losses on
the Mortgage Loans shall be allocated by the Trustee on each Distribution Date
to the following REMIC I Regular Interests in the specified percentages, as
follows: first, to Uncertificated Interest payable to the REMIC I Regular
Interest I-LTAA and REMIC I Regular Interest I-LTZZ up to an aggregate amount
equal to the REMIC I Interest Loss Allocation Amount, 98% and 2%, respectively;
second, to the Uncertificated Balances of the REMIC I Regular Interest I-LTAA
and REMIC I Regular Interest I-

                                     -109-
<PAGE>

LTZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation
Amount, 98% and 2%, respectively; third, to the Uncertificated Balances of REMIC
I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM7 and REMIC I Regular
Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance
of REMIC I Regular Interest I-LTM7 has been reduced to zero; fourth, to the
Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
Interest I-LTM6 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC I Regular Interest
I-LTM6 has been reduced to zero; fifth, to the Uncertificated Balances of REMIC
I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM5 and REMIC I Regular
Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance
of REMIC I Regular Interest I-LTM5 has been reduced to zero; sixth, to the
Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
Interest I-LTM4 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC I Regular Interest
I-LTM4 has been reduced to zero; seventh, to the Uncertificated Balances of
REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM3 and REMIC I
Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Balance of REMIC I Regular Interest I-LTM3 has been reduced to zero; eighth to
the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
Interest I-LTM2 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC I Regular Interest
I-LTM2 has been reduced to zero; and ninth, to the Uncertificated Balances of
REMIC I Regular Interest I- LTAA, REMIC I Regular Interest I-LTM1 and REMIC I
Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Balance of REMIC I Regular Interest I-LTM1 has been reduced to zero.

                  (ii) The REMIC I Sub WAC Allocation Percentage of all Realized
Losses shall be applied after all distributions have been made on each
Distribution Date first, so as to keep the Uncertificated Balance of each REMIC
I Regular Interest ending with the designation "GRP" equal to 0.01% of the
aggregate Stated Principal Balance of the Mortgage Loans in the related Loan
Group; second, to each REMIC I Regular Interest ending with the designation
"SUB," so that the Uncertificated Balance of each such REMIC I Regular Interest
is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of
the Mortgage Loans in the related Loan Group over (y) the Certificate Principal
Balance of the Class A Certificate in the related Loan Group (except that if any
such excess is a larger number than in the preceding distribution period, the
least amount of Realized Losses shall be applied to such REMIC I Regular
Interests such that the REMIC I Subordinated Balance Ratio is maintained); and
third, any remaining Realized Losses shall be allocated to REMIC I Regular
Interest I-LTXX.

                  SECTION 4.05. Compliance with Withholding Requirements

                  Notwithstanding any other provision of this Agreement, the
Trustee shall comply with all federal withholding requirements respecting
payments to Certificateholders of interest or original issue discount that the
Trustee reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Trustee does withhold any amount from interest or original issue discount
payments or advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee shall indicate the amount withheld to such
Certificateholders.

                                     -110-
<PAGE>

                  SECTION 4.06. Exchange Commission; Additional Information.

                  (a) The Trustee and the Servicer shall reasonably cooperate
with the Depositor in connection with satisfying the reporting requirements of
the Trust Fund under the Exchange Act. The Trustee shall prepare and sign on
behalf of the Trust Fund any Forms 8-K customary for similar securities as
required by the Exchange Act and the Rules and Regulations of the Commission
thereunder, and the Trustee shall file (via the Commission's Electronic Data
Gathering and Retrieval System) such forms on behalf of the Trust Fund. The
Trustee shall prepare and sign any Form 10-K which includes as exhibits (i) the
Certification (as defined in (b) below), (ii) the Servicer's annual statement of
compliance described under Section 3.20 and (iii) the accountant's report
described under Section 3.21 and the Trustee shall file (via the Commission's
Electronic Data Gathering and Retrieval System) such forms on behalf of the
Trust Fund. To the extent that the Commission requires any additional
information to be filed pursuant to a Form 10-K, the Trustee, shall prepare,
sign and promptly file an amended Form 10-K containing such additional
information. To the extent that the Servicer acquires actual knowledge of
material information (as determined by the Servicer in good faith) concerning
the Trust Fund, it shall notify the Trustee of such information.

                  (b) Each Form 8-K shall be filed by the Trustee within 15 days
after each Distribution Date with a copy of the Monthly Statement for such
Distribution Date as an exhibit thereto. Prior to March 31st of each year (or
such earlier date as may be required by the Exchange Act and the Rules and
Regulations of the Commission), the Trustee shall file a Form 10-K, in substance
as required by applicable law or applicable Commission staff's interpretations.
Such Form 10-K shall include as exhibits the Servicer's annual statement of
compliance described under Section 3.20 and the accountant's report described
under Section 3.21, in each case to the extent they have been timely delivered
to the Trustee. If they are not so timely delivered, the Trustee shall file an
amended Form 10-K including such documents as exhibits reasonably promptly after
they are delivered to the Trustee. The Trustee shall have no liability with
respect to any failure to properly prepare or file such periodic reports
resulting from or relating to (a) the Trustee's inability or failure to obtain
any information not resulting from its own negligence or willful misconduct or
(b) any inaccuracy in such periodic reports resulting from incorrect information
provided to the Trustee by the Servicer in a Remittance Report or otherwise. The
Form 10-K shall also include a certification in the form attached hereto as
Exhibit J-1 (the "Certification"), which shall be signed by the Trustee.

                  (c) In addition, the Servicer shall sign a certification (in
the form attached hereto as Exhibit J-2) for the benefit of the Trustee and its
officers, directors and Affiliates regarding certain aspects of the
Certification (provided, however, that the Servicer shall not undertake an
analysis of the accountant's report attached as an exhibit to the Form 10-K).
The Servicer's certification shall be delivered to the Trustee by no later than
March 15th of each year (or if such day is not a Business Day, the immediately
preceding Business Day).

                  In addition, (i) the Trustee shall, subject to the provisions
of Sections 8.01 and 8.02, indemnify and hold harmless the Depositor and the
Servicer and their respective officers, directors and Affiliates from and
against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a breach of the Trustee's obligations under Section
4.06(b) or the Trustee's negligence, bad faith or willful misconduct in
connection therewith, and (ii) the Servicer shall indemnify and hold

                                     -111-
<PAGE>

harmless the Depositor, the Trustee and their respective officers, directors and
Affiliates from and against any losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments and other costs
and expenses arising out of or based upon a breach of the Servicer's obligations
under this Section 4.06(b) or the Servicer's negligence, bad faith or willful
misconduct in connection therewith. If the indemnification provided for herein
is unavailable or insufficient to hold harmless the Depositor or the Servicer,
then (i) the Trustee agrees that it shall contribute to the amount paid or
payable by the Depositor or the Servicer, as applicable, as a result of the
losses, claims, damages or liabilities of the Depositor or the Servicer, as
applicable, in such proportion as is appropriate to reflect the relative fault
of the or the Depositor or the Servicer, as applicable, on the one hand and the
Trustee on the other in connection with a breach of the Trustee's obligations
under this Section 4.06(b) or the Trustee's negligence, bad faith or willful
misconduct in connection therewith and (ii) the Servicer agrees that it shall
contribute to the amount paid or payable by the Depositor or the Trustee, as
applicable, as a result of the losses, claims, damages or liabilities of the
Depositor or the Trustee, as applicable, in such proportion as is appropriate to
reflect the relative fault of the Depositor or the Trustee, as applicable, on
the one hand and the Servicer on the other in connection with a breach of the
Servicer's obligations under this Section 4.06(b) or the Servicer's negligence,
bad faith or willful misconduct in connection therewith. Notwithstanding any
other provision in this Agreement to the contrary, the Servicer shall not have
any responsibility or liability to any party relating to the certification or
information prepared, certified or distributed by the Trustee or any other party
other than the Servicer unless such information was derived from erroneous or
incomplete information required to be provided by the Servicer under this
Agreement.

                  (d) Upon any filing with the Commission pursuant to this
Section 4.06(b), the Trustee shall promptly deliver to the Depositor a copy of
any executed report, statement or information.

                  (e) Prior to January 30 of the first year in which the Trustee
is able to do so under applicable law, the Trustee shall file a Form 15
Suspension Notification with respect to the Trust Fund.

                  SECTION 4.07. Net WAC Rate Carryover Reserve Account.

                  No later than the Closing Date, the Trustee shall establish
and maintain with itself a separate, segregated trust account titled, "U.S. Bank
National Association as Trustee, in trust for the registered holders of MASTR
Asset Backed Securities Trust 2004-WMC2, Mortgage Pass-Through Certificates,
Series 2004-WMC2--Net WAC Rate Carryover Reserve Account." Amounts deposited in
the Net WAC Rate Carryover Reserve Account will consist of any payments received
by the Trustee under the Cap Contracts and deposited into the Net WAC Rate
Carryover Reserve Account.

                  On each Distribution Date as to which there is a Net WAC Rate
Carryover Amount payable to the Class A Certificates and/or the Mezzanine
Certificates, the Trustee has been directed by the Class CE Certificateholders
to, and therefore will, deposit into the Net WAC Rate Carryover Reserve Account
the amounts described in Section 4.01(a)(4)(xvii), rather than distributing such
amounts to the Class CE Certificateholders. On each such Distribution Date, the
Trustee shall hold all such amounts for the benefit of the Holders of the Class
A Certificates and the Mezzanine

                                     -112-
<PAGE>

Certificates, and will distribute such amounts to the Holders of the Class A
Certificates and/or the Mezzanine Certificates in the amounts and priorities set
forth in Section 4.01(d).

                  For federal and state income tax purposes, the Class CE
Certificateholders will be deemed to be the owners of the Net WAC Rate Carryover
Reserve Account and all amounts deposited into the Net WAC Rate Carryover
Reserve Account shall be treated as amounts distributed by REMIC II to the
Holders of the Class CE Interest and by REMIC III to the Holders of the Class CE
Certificates. Upon the termination of the Trust Fund, or the payment in full of
the Class A Certificates and the Mezzanine Certificates, all amounts remaining
on deposit in the Net WAC Rate Carryover Reserve Account will be released by the
Trust Fund and distributed to the Class CE Certificateholders or their
designees. The Net WAC Rate Carryover Reserve Account will be part of the Trust
Fund but not part of any REMIC and any payments to the Holders of the Class A
Certificates or the Mezzanine Certificates of Net WAC Rate Carryover Amounts
will not be payments with respect to a "regular interest" in a REMIC within the
meaning of Code Section 860(G)(a)(1).

                  By accepting a Class CE Certificate, each Class CE
Certificateholder hereby agrees to direct the Trustee, and the Trustee hereby is
directed, to deposit into the Net WAC Rate Carryover Reserve Account the amounts
described above on each Distribution Date as to which there is any Net WAC Rate
Carryover Amount rather than distributing such amounts to the Class CE
Certificateholders. By accepting a Class CE Certificate, each Class CE
Certificateholder further agrees that such direction is given for good and
valuable consideration, the receipt and sufficiency of which is acknowledged by
such acceptance.

                  At the direction of the Holders of a majority in Percentage
Interest in the Class CE Certificates, the Trustee shall direct any depository
institution maintaining the Net WAC Rate Carryover Reserve Account to invest the
funds in such account in one or more Permitted Investments bearing interest or
sold at a discount, and maturing, unless payable on demand, (i) no later than
the Business Day immediately preceding the date on which such funds are required
to be withdrawn from such account pursuant to this Agreement, if a Person other
than the Trustee or an Affiliate manages or advises such investment, and (ii) no
later than the date on which such funds are required to be withdrawn from such
account pursuant to this Agreement, if the Trustee or an Affiliate manages or
advises such investment. If no investment direction of the Holders of a majority
in Percentage Interest in the Class CE Certificates with respect to the Net WAC
Rate Carryover Reserve Account is received by the Trustee, the Trustee shall
invest the funds in such account in Permitted Investments managed by the Trustee
or an Affiliate of the kind described in clause (vi) of the definition of
Permitted Investments. All income and gain earned upon such investment shall be
deposited into the Net WAC Rate Carryover Reserve Account.

                  For federal tax return and information reporting, the value of
the right of the Class A Certificateholders and the Mezzanine Certificateholders
to receive payments from the Net WAC Rate Carryover Reserve Account in respect
of any Net Wac Rate Carryover Amount shall be obtained from the Trustee upon
request to the extent the Trustee has been provided such information from the
Depositor.

                                     -113-
<PAGE>

                                    ARTICLE V

                                THE CERTIFICATES

                  SECTION 5.01. The Certificates.

                  (a) The Certificates in the aggregate will represent the
entire beneficial ownership interest in the Mortgage Loans and all other assets
included in REMIC I.

                  The Certificates will be substantially in the forms annexed
hereto as Exhibits A-1 through A-15. The Certificates of each Class will be
issuable in registered form only, in denominations of authorized Percentage
Interests as described in the definition thereof. Each Certificate will share
ratably in all rights of the related Class.

                  Upon original issue, the Certificates shall be executed by the
Trustee and authenticated and delivered by the Trustee to or upon the order of
the Depositor. The Certificates shall be executed by manual or facsimile
signature on behalf of the Trustee by an authorized signatory. Certificates
bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Trustee shall bind the Trustee notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Certificates or did not hold such offices at
the date of such Certificates. No Certificate shall be entitled to any benefit
under this Agreement or be valid for any purpose, unless there appears on such
Certificate a certificate of authentication substantially in the form provided
herein executed by the Trustee by manual signature, and such certificate of
authentication shall be conclusive evidence, and the only evidence, that such
Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.

                  (b) The Class A Certificates and the Mezzanine Certificates
shall initially be issued as one or more Certificates held by the Book-Entry
Custodian or, if appointed to hold such Certificates as provided below, the
Depository and registered in the name of the Depository or its nominee and,
except as provided below, registration of such Certificates may not be
transferred by the Trustee except to another Depository that agrees to hold such
Certificates for the respective Certificate Owners with Ownership Interests
therein. The Certificate Owners shall hold their respective Ownership Interests
in and to such Certificates through the book-entry facilities of the Depository
and, except as provided below, shall not be entitled to definitive, fully
registered Certificates ("Definitive Certificates") in respect of such Ownership
Interests. All transfers by Certificate Owners of their respective Ownership
Interests in the Book-Entry Certificates shall be made in accordance with the
procedures established by the Depository Participant or brokerage firm
representing such Certificate Owner. Each Depository Participant shall only
transfer the Ownership Interests in the Book-Entry Certificates of Certificate
Owners it represents or of brokerage firms for which it acts as agent in
accordance with the Depository's normal procedures. The Trustee is hereby
initially appointed as the Book-Entry Custodian and hereby agrees to act as such
in accordance herewith and in accordance with the agreement that it has with the
Depository authorizing it to act as such. The Book-Entry Custodian may, and, if
it is no longer qualified to act as such, the Book- Entry Custodian shall,
appoint, by a written instrument delivered to the Depositor, the Servicer and
the Trustee, any other transfer agent (including the Depository or any successor
Depository) to act

                                     -114-
<PAGE>

as Book-Entry Custodian under such conditions as the predecessor Book-Entry
Custodian and the Depository or any successor Depository may prescribe, provided
that the predecessor Book-Entry Custodian shall not be relieved of any of its
duties or responsibilities by reason of any such appointment of other than the
Depository. If the Trustee resigns or is removed in accordance with the terms
hereof, the successor trustee or, if it so elects, the Depository shall
immediately succeed to its predecessor's duties as Book-Entry Custodian. The
Depositor shall have the right to inspect, and to obtain copies of, any
Certificates held as Book-Entry Certificates by the Book-Entry Custodian.

                  The Trustee, the Servicer and the Depositor may for all
purposes (including the making of payments due on the Book-Entry Certificates)
deal with the Depository as the authorized representative of the Certificate
Owners with respect to the Book-Entry Certificates for the purposes of
exercising the rights of Certificateholders hereunder. The rights of Certificate
Owners with respect to the Book-Entry Certificates shall be limited to those
established by law and agreements between such Certificate Owners and the
Depository Participants and brokerage firms representing such Certificate
Owners. Multiple requests and directions from, and votes of, the Depository as
Holder of the Book-Entry Certificates with respect to any particular matter
shall not be deemed inconsistent if they are made with respect to different
Certificate Owners. The Trustee may establish a reasonable record date in
connection with solicitations of consents from or voting by Certificateholders
and shall give notice to the Depository of such record date.

                  If (i)(A) the Depositor advises the Trustee in writing that
the Depository is no longer willing or able to properly discharge its
responsibilities as Depository, and (B) the Depositor is unable to locate a
qualified successor or (ii) after the occurrence of a Servicer Event of Default,
Certificate Owners representing in the aggregate not less than 51% of the
Ownership Interests of the Book-Entry Certificates advise the Trustee through
the Depository, in writing, that the continuation of a book-entry system through
the Depository is no longer in the best interests of the Certificate Owners, the
Trustee shall notify all Certificate Owners, through the Depository, of the
occurrence of any such event and of the availability of Definitive Certificates
to Certificate Owners requesting the same. Upon surrender to the Trustee of the
Book-Entry Certificates by the Book-Entry Custodian or the Depository, as
applicable, accompanied by registration instructions from the Depository for
registration of transfer, the Trustee shall cause the Definitive Certificates to
be issued. Such Definitive Certificates will be issued in minimum denominations
of $25,000, except that any beneficial ownership that was represented by a
Book-Entry Certificate in an amount less than $25,000 immediately prior to the
issuance of a Definitive Certificate shall be issued in a minimum denomination
equal to the amount represented by such Book-Entry Certificate. None of the
Depositor, the Servicer or the Trustee shall be liable for any delay in the
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive
Certificates all references herein to obligations imposed upon or to be
performed by the Depository shall be deemed to be imposed upon and performed by
the Trustee, to the extent applicable with respect to such Definitive
Certificates, and the Trustee shall recognize the Holders of the Definitive
Certificates as Certificateholders hereunder.

                                     -115-
<PAGE>

                  SECTION 5.02. Registration of Transfer and Exchange of
                                Certificates.

                  (a) The Trustee shall cause to be kept at one of the offices
or agencies to be appointed by the Trustee in accordance with the provisions of
Section 8.11, a Certificate Register for the Certificates in which, subject to
such reasonable regulations as it may prescribe, the Trustee shall provide for
the registration of Certificates and of transfers and exchanges of Certificates
as herein provided.

                  (b) No transfer of any Class M-7 Certificate, Class CE
Certificate, Class P Certificate or Residual Certificate (the "Private
Certificates") shall be made unless that transfer is made pursuant to an
effective registration statement under the Securities Act of 1933, as amended
(the "1933 Act"), and effective registration or qualification under applicable
state securities laws, or is made in a transaction that does not require such
registration or qualification. In the event that such a transfer of a Class CE
Certificate, Class P Certificate or Residual Certificate is to be made without
registration or qualification (other than in connection with the initial
transfer of any such Certificate by the Depositor to an affiliate of the
Depositor), the Trustee shall require receipt of: (i) if such transfer is
purportedly being made in reliance upon Rule 144A under the 1933 Act, written
certifications from the Certificateholder desiring to effect the transfer and
from such Certificateholder's prospective transferee, substantially in the forms
attached hereto as Exhibit F-1; and (ii) in all other cases, an Opinion of
Counsel satisfactory to it that such transfer may be made without such
registration or qualification (which Opinion of Counsel shall not be an expense
of the Trust Fund or of the Depositor, the Trustee, the Servicer in its capacity
as such or any Sub-Servicer), together with copies of the written
certification(s) of the Certificateholder desiring to effect the transfer and/or
such Certificateholder's prospective transferee upon which such Opinion of
Counsel is based, if any. None of the Depositor, the Servicer or the Trustee is
obligated to register or qualify any such Certificates under the 1933 Act or any
other securities laws or to take any action not otherwise required under this
Agreement to permit the transfer of such Certificates without registration or
qualification. Any Certificateholder desiring to effect the transfer of any such
Certificate shall, and does hereby agree to, indemnify the Trustee, the
Depositor and the Servicer against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.
Notwithstanding anything to the contrary contained in this Agreement, all
transfers of the Class M-7 Certificates shall be made in reliance upon Rule 144A
under the 1933 Act.

                  (c) No transfer of a Private Certificate or any interest
therein shall be made to any Plan subject to ERISA or Section 4975 of the Code,
any Person acting, directly or indirectly, on behalf of any such Plan or any
Person acquiring such Certificates with "Plan Assets" of a Plan within the
meaning of the Department of Labor regulation promulgated at 29 C. F. R. ss.
2510.3-101 ("Plan Assets"), as certified by such transferee in the form of
Exhibit G, unless the Trustee is provided with an Opinion of Counsel for the
benefit of the Trustee, the Depositor and the Servicer and on which they may
rely which establishes to the satisfaction of the Depositor, the Trustee and the
Servicer that the purchase of such Certificates is permissible under applicable
law, will not constitute or result in any prohibited transaction under ERISA or
Section 4975 of the Code and will not subject the Depositor, the Servicer, the
NIMS Insurer, the Trustee or the Trust Fund to any obligation or liability
(including obligations or liabilities under ERISA or Section 4975 of the Code)
in addition to those undertaken in this Agreement, which Opinion of Counsel
shall not be an expense of the Depositor,

                                     -116-
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the Servicer, the Trustee or the Trust Fund. Neither an Opinion of Counsel nor
any certification will be required in connection with the initial transfer of
any such Certificate by the Depositor to an affiliate of the Depositor (in which
case, the Depositor or any affiliate thereof shall have deemed to have
represented that such affiliate is not a Plan or a Person investing Plan Assets)
and the Trustee shall be entitled to conclusively rely upon a representation
(which, upon the request of the Trustee, shall be a written representation) from
the Depositor of the status of such transferee as an affiliate of the Depositor.

                  Each beneficial owner of a Mezzanine Certificates or any
interest therein shall be deemed to have represented, by virtue of its
acquisition or holding of that certificate or interest therein, that either (i)
it is not a Plan investor, (ii) in the case of each class other than Class M-7
Certificates, it has acquired and is holding such Mezzanine Certificates in
reliance on the Underwriters' Exemption, and that it understands that there are
certain conditions to the availability of the Underwriters' Exemption, including
that the Mezzanine Certificates must be rated, at the time of purchase, not
lower than "BBB-" (or its equivalent) by Fitch, Moody's or S&P or (iii) (1) it
is an insurance company, (2) the source of funds used to acquire or hold the
certificate or interest therein is an "insurance company general account," as
such term is defined in PTCE 95-60, and (3) the conditions in Sections I and III
of PTCE 95-60 have been satisfied.

                  If any Mezzanine Certificate or Private Certificate or any
interest therein is acquired or held in violation of the provisions of the
preceding two paragraphs, the next preceding permitted beneficial owner will be
treated as the beneficial owner of that Certificate retroactive to the date of
transfer to the purported beneficial owner. Any purported beneficial owner whose
acquisition or holding of any such Certificate or interest therein was effected
in violation of the provisions of the preceding two paragraphs shall indemnify
and hold harmless the Depositor, the Servicer, the NIMS Insurer, the Trustee and
the Trust Fund from and against any and all liabilities, claims, costs or
expenses incurred by those parties as a result of that acquisition or holding.

                  (d)(i) Each Person who has or who acquires any Ownership
Interest in a Residual Certificate shall be deemed by the acceptance or
acquisition of such Ownership Interest to have agreed to be bound by the
following provisions and to have irrevocably authorized the Trustee or its
designee under clause (iii)(A) below to deliver payments to a Person other than
such Person and to negotiate the terms of any mandatory sale under clause
(iii)(B) below and to execute all instruments of Transfer and to do all other
things necessary in connection with any such sale. The rights of each Person
acquiring any Ownership Interest in a Residual Certificate are expressly subject
to the following provisions:

                  (A) Each Person holding or acquiring any Ownership Interest in
         a Residual Certificate shall be a Permitted Transferee and shall
         promptly notify the Trustee of any change or impending change in its
         status as a Permitted Transferee.

                  (B) In connection with any proposed Transfer of any Ownership
         Interest in a Residual Certificate, the Trustee shall require delivery
         to it, and shall not register the Transfer of any Residual Certificate
         until its receipt of, an affidavit and agreement (a "Transfer Affidavit
         and Agreement," in the form attached hereto as Exhibit F-2) from the
         proposed Transferee, in form and substance satisfactory to the Trustee,
         representing and warranting,

                                     -117-
<PAGE>

         among other things, that such Transferee is a Permitted Transferee,
         that it is not acquiring its Ownership Interest in the Residual
         Certificate that is the subject of the proposed Transfer as a nominee,
         trustee or agent for any Person that is not a Permitted Transferee,
         that for so long as it retains its Ownership Interest in a Residual
         Certificate, it will endeavor to remain a Permitted Transferee, and
         that it has reviewed the provisions of this Section 5.02(d) and agrees
         to be bound by them.

                  (C) Notwithstanding the delivery of a Transfer Affidavit and
         Agreement by a proposed Transferee under clause (B) above, if a
         Responsible Officer of the Trustee who is assigned to this transaction
         has actual knowledge that the proposed Transferee is not a Permitted
         Transferee, no Transfer of an Ownership Interest in a Residual
         Certificate to such proposed Transferee shall be effected.

                  (D) Each Person holding or acquiring any Ownership Interest in
         a Residual Certificate shall agree (x) to require a Transfer Affidavit
         and Agreement in the form attached hereto as Exhibit F-2 from any other
         Person to whom such Person attempts to transfer its Ownership Interest
         in a Residual Certificate and (y) not to transfer its Ownership
         Interest unless it provides a Transferor Affidavit (in the form
         attached hereto as Exhibit F-2) to the Trustee stating that, among
         other things, it has no actual knowledge that such other Person is not
         a Permitted Transferee.

                  (E) Each Person holding or acquiring an Ownership Interest in
         a Residual Certificate, by purchasing an Ownership Interest in such
         Certificate, agrees to give the Trustee written notice that it is a
         "pass-through interest holder" within the meaning of temporary Treasury
         regulation Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring an
         Ownership Interest in a Residual Certificate, if it is, or is holding
         an Ownership Interest in a Residual Certificate on behalf of, a
         "pass-through interest holder."

                  (ii) The Trustee will register the Transfer of any Residual
Certificate only if it shall have received the Transfer Affidavit and Agreement
and all of such other documents as shall have been reasonably required by the
Trustee as a condition to such registration. In addition, no Transfer of a
Residual Certificate shall be made unless the Trustee shall have received a
representation letter from the Transferee of such Certificate to the effect that
such Transferee is a Permitted Transferee.

                  (iii)(A) If any purported Transferee shall become a Holder of
         a Residual Certificate in violation of the provisions of this Section
         5.02(d), then the last preceding Permitted Transferee shall be
         restored, to the extent permitted by law, to all rights as holder
         thereof retroactive to the date of registration of such Transfer of
         such Residual Certificate. The Trustee shall be under no liability to
         any Person for any registration of Transfer of a Residual Certificate
         that is in fact not permitted by this Section 5.02(d) or for making any
         payments due on such Certificate to the holder thereof or for taking
         any other action with respect to such holder under the provisions of
         this Agreement.

                  (B) If any purported Transferee shall become a holder of a
         Residual Certificate in violation of the restrictions in this Section
         5.02(d) and to the extent that the retroactive

                                     -118-
<PAGE>

         restoration of the rights of the holder of such Residual Certificate as
         described in clause (iii)(A) above shall be invalid, illegal or
         unenforceable, then the Trustee shall have the right, without notice to
         the holder or any prior holder of such Residual Certificate, to sell
         such Residual Certificate to a purchaser selected by the Trustee on
         such terms as the Trustee may choose. Such purported Transferee shall
         promptly endorse and deliver each Residual Certificate in accordance
         with the instructions of the Trustee. Such purchaser may be the Trustee
         itself or any Affiliate of the Trustee. The proceeds of such sale, net
         of the commissions (which may include commissions payable to the
         Trustee or its Affiliates), expenses and taxes due, if any, will be
         remitted by the Trustee to such purported Transferee. The terms and
         conditions of any sale under this clause (iii)(B) shall be determined
         in the sole discretion of the Trustee, and the Trustee shall not be
         liable to any Person having an Ownership Interest in a Residual
         Certificate as a result of its exercise of such discretion.

                  (iv) The Trustee shall make available to the Internal Revenue
Service and those Persons specified by the REMIC Provisions all information
necessary to compute any tax imposed (A) as a result of the Transfer of an
Ownership Interest in a Residual Certificate to any Person who is a Disqualified
Organization, including the information described in Treasury regulations
sections 1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the "excess
inclusions" of such Residual Certificate and (B) as a result of any regulated
investment company, real estate investment trust, common Trust, partnership,
trust, estate or organization described in Section 1381 of the Code that holds
an Ownership Interest in a Residual Certificate having as among its record
holders at any time any Person which is a Disqualified Organization. Reasonable
compensation for providing such information may be accepted by the Trustee.

                  (v) The provisions of this Section 5.02(d) set forth prior to
this subsection (v) may be modified, added to or eliminated, provided that there
shall have been delivered to the Trustee and the NIMS Insurer at the expense of
the party seeking to modify, add to or eliminate any such provision the
following:

                  (A) written notification from each Rating Agency to the effect
         that the modification, addition to or elimination of such provisions
         will not cause such Rating Agency to downgrade its then-current ratings
         of any Class of Certificates; and

                  (B) an Opinion of Counsel, in form and substance satisfactory
         to the Trustee and the NIMS Insurer, to the effect that such
         modification of, addition to or elimination of such provisions will not
         cause any Trust REMIC to cease to qualify as a REMIC and will not cause
         any Trust REMIC to be subject to an entity-level tax caused by the
         Transfer of any Residual Certificate to a Person that is not a
         Permitted Transferee or a Person other than the prospective transferee
         to be subject to a REMIC-tax caused by the Transfer of a Residual
         Certificate to a Person that is not a Permitted Transferee.

                  The Trustee shall forward to the NIMS Insurer a copy of the
items delivered to it pursuant to (A) and (B) above.

                  (e) Subject to the preceding subsections, upon surrender for
registration of transfer of any Certificate at any office or agency of the
Trustee maintained for such purpose

                                     -119-
<PAGE>

pursuant to Section 8.11, the Trustee shall execute, authenticate and deliver,
in the name of the designated Transferee or Transferees, one or more new
Certificates of the same Class of a like aggregate Percentage Interest.

                  (f) At the option of the Holder thereof, any Certificate may
be exchanged for other Certificates of the same Class with authorized
denominations and a like aggregate Percentage Interest, upon surrender of such
Certificate to be exchanged at any office or agency of the Trustee maintained
for such purpose pursuant to Section 8.11. Whenever any Certificates are so
surrendered for exchange, the Trustee shall execute, authenticate and deliver,
the Certificates which the Certificateholder making the exchange is entitled to
receive. Every Certificate presented or surrendered for transfer or exchange
shall (if so required by the Trustee) be duly endorsed by, or be accompanied by
a written instrument of transfer in the form satisfactory to the Trustee duly
executed by, the Holder thereof or his attorney duly authorized in writing. In
addition, (i) with respect to each Class R Certificate, the holder thereof may
exchange, in the manner described above, such Class R Certificate for two
separate certificates, each representing such holder's respective Percentage
Interest in the Class R-I Interest and the Class R-II Interest, respectively, in
each case that was evidenced by the Class R Certificate being exchanged and (ii)
with respect to each Class R-X Certificate, the holder thereof may exchange, in
the manner described above, such Class R-X Certificate for two separate
certificates, each representing such holder's respective Percentage Interest in
the Class R-III Interest and the Class R-IV Interest, respectively, in each case
that was evidenced by the Class R-X Certificate being exchanged.

                  (g) No service charge to the Certificateholders shall be made
for any transfer or exchange of Certificates, but the Trustee may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

                  (h) All Certificates surrendered for transfer and exchange
shall be canceled and destroyed by the Trustee in accordance with its customary
procedures.

                  SECTION 5.03. Mutilated, Destroyed, Lost or Stolen
                                Certificates.

                  If (i) any mutilated Certificate is surrendered to the
Trustee, or the Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Certificate, and (ii) there is delivered to
the Trustee and the NIMS Insurer such security or indemnity as may be required
by it to save it harmless, then, in the absence of actual knowledge by the
Trustee that such Certificate has been acquired by a bona fide purchaser or the
Trustee shall execute, authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of
the same Class and of like denomination and Percentage Interest. Upon the
issuance of any new Certificate under this Section, the Trustee may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith. Any replacement Certificate
issued pursuant to this Section shall constitute complete and indefeasible
evidence of ownership in the applicable REMIC created hereunder, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

                                     -120-
<PAGE>

                  SECTION 5.04. Persons Deemed Owners.

                  The Depositor, the Servicer, the NIMS Insurer, the Trustee and
any agent of any of them may treat the Person in whose name any Certificate is
registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.01 and for all other purposes whatsoever,
and none of the Depositor, the Servicer, the NIMS Insurer, the Trustee or any
agent of any of them shall be affected by notice to the contrary.

                  SECTION 5.05. Certain Available Information.

                  On or prior to the date of the first sale of any Private
Certificate to an Independent third party, the Depositor shall provide to the
Trustee ten copies of any private placement memorandum or other disclosure
document used by the Depositor in connection with the offer and sale of such
Certificates. In addition, if any such private placement memorandum or
disclosure document is revised, amended or supplemented at any time following
the delivery thereof to the Trustee, the Depositor promptly shall inform the
Trustee of such event and shall deliver to the Trustee ten copies of the private
placement memorandum or disclosure document, as revised, amended or
supplemented. The Trustee shall maintain at its Corporate Trust Office and shall
make available free of charge during normal business hours for review by any
Holder of a Certificate or any Person identified to the Trustee as a prospective
transferee of a Certificate, originals or copies of the following items: (i) in
the case of a Holder or prospective transferee of a Private Certificate, the
related private placement memorandum or other disclosure document relating to
such Class of Certificates, in the form most recently provided to the Trustee;
and (ii) in all cases, (A) this Agreement and any amendments hereof entered into
pursuant to Section 11.01, (B) all monthly statements required to be delivered
to Certificateholders of the relevant Class pursuant to Section 4.02 since the
Closing Date, and all other notices, reports, statements and written
communications delivered to the Certificateholders of the relevant Class
pursuant to this Agreement since the Closing Date, (C) all certifications
delivered by a Responsible Officer of the Trustee since the Closing Date
pursuant to Section 10.01(h), (D) any and all Officers' Certificates delivered
to the Trustee by the Servicer since the Closing Date to evidence the Servicer's
determination that any Advance or Servicing Advance was, or if made, would be a
Nonrecoverable Advance or Nonrecoverable Servicing Advance, respectively, and
(E) any and all Officers' Certificates delivered to the Trustee by the Servicer
since the Closing Date pursuant to Section 4.04(a). Copies and mailing of any
and all of the foregoing items will be available from the Trustee upon request
at the expense of the Person requesting the same.

                                     -121-
<PAGE>

                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

                  SECTION 6.01. Liability of the Servicer and the Depositor.

                  The Servicer shall be liable in accordance herewith only to
the extent of the obligations specifically imposed upon and undertaken by
Servicer herein. The Depositor shall be liable in accordance herewith only to
the extent of the obligations specifically imposed upon and undertaken by the
Depositor.

                  SECTION 6.02. Merger or Consolidation of, or Assumption of the
                                Obligations of, the Servicer or the Depositor.

                  Any entity into which the Servicer or Depositor may be merged
or consolidated, or any entity resulting from any merger, conversion or
consolidation to which the Servicer or the Depositor shall be a party, or any
corporation succeeding to the business of the Servicer or the Depositor, shall
be the successor of the Servicer or the Depositor, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor Servicer shall satisfy
all the requirements of Section 7.02 with respect to the qualifications of a
successor Servicer.

                  SECTION 6.03. Limitation on Liability of the Servicer and
                                Others.

                  (a) The Servicer (except the Trustee if it is required to
succeed the Servicer hereunder) indemnifies and holds the NIMS Insurer, the
Trustee and the Depositor harmless against any and all claims, losses,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any other costs, fees and expenses that the NIMS Insurer, the
Trustee and the Depositor may sustain in any way related to the failure of the
Servicer to perform its duties and service the Mortgage Loans in compliance with
the terms of this Agreement. The Servicer shall immediately notify the NIMS
Insurer, the Trustee and the Depositor if a claim is made that may result in
such claims, losses, penalties, fines, forfeitures, legal fees or related costs,
judgments, or any other costs, fees and expenses, and the Servicer shall assume
(with the consent of the Trustee) the defense of any such claim and pay all
expenses in connection therewith, including reasonable counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be entered
against the NIMS Insurer, the Trustee and/or the Depositor in respect of such
claim. The provisions of this Section 6.03 shall survive the termination of this
Agreement and the payment of the outstanding Certificates. Any payment hereunder
made by the Servicer to the Trustee shall be from the Servicer's own funds,
without reimbursement from REMIC I therefor.

                  (b) None of the Servicer, the NIMS Insurer or the Depositor
nor any of the directors or officers or employees or agents of the Servicer, the
NIMS Insurer or the Depositor shall be under any liability to the Trust or the
Certificateholders for any action taken or for refraining from the taking of any
action by the Servicer or the Depositor in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Servicer, the Depositor or any such Person against any
liability which would otherwise be imposed by reason of

                                     -122-
<PAGE>

its willful misfeasance, bad faith or negligence in the performance of duties of
the Servicer or the Depositor, as the case may be, or by reason of its reckless
disregard of its obligations and duties of the Servicer or the Depositor, as the
case may be, hereunder. The NIMS Insurer, the Servicer and any director or
officer or employee or agent of the NIMS Insurer or the Servicer may rely in
good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising hereunder. The Servicer,
the NIMS Insurer and the Depositor, and any director or officer or employee or
agent of the Servicer, the NIMS Insurer or the Depositor, shall be indemnified
by the Trust and held harmless against any loss, liability or expense incurred
in connection with (i) any legal action relating to this Agreement or the
Certificates, other than any loss, liability or expense incurred by reason of
its willful misfeasance, bad faith or negligence or by reason of its reckless
disregard of obligations and duties hereunder or by reason of its failure to
perform its obligations or duties hereunder and (ii) any breach of a
representation or warranty by such party regarding the Mortgage Loans. The
Servicer, the NIMS Insurer or the Depositor may undertake any such action which
it may deem necessary or desirable in respect of this Agreement, and the rights
and duties of the parties hereto and the interests of the Certificateholders
hereunder. In such event, unless the Depositor or the Servicer acts without the
consent of the Holders of Certificates entitled to at least 51% of the Voting
Rights, the reasonable legal expenses and costs of such action and any liability
resulting therefrom shall be expenses, costs and liabilities of the Trust and
the Servicer, and the NIMS Insurer shall be entitled to be reimbursed therefor
from the Collection Account as and to the extent provided in Section 3.11, any
such right of reimbursement being prior to the rights of the Certificateholders
to receive any amount in the Collection Account. The Servicer's right to
indemnity or reimbursement pursuant to this Section shall survive any
resignation or termination of the Servicer pursuant to Section 6.04 or 7.01 with
respect to any losses, expenses, costs or liabilities arising prior to such
resignation or termination (or arising from events that occurred prior to such
resignation or termination). This paragraph shall apply to the Servicer solely
in its capacity as Servicer hereunder and in no other capacities.

                  SECTION 6.04. Servicer Not to Resign.

                  The Servicer shall not resign from the obligations and duties
hereby imposed on it except upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination pursuant to the
preceding sentence permitting the resignation of the Servicer shall be evidenced
by an Opinion of Counsel to such effect obtained at the expense of the Servicer
and delivered to the Trustee and the NIMS Insurer. No resignation of the
Servicer shall become effective until the Trustee or a successor servicer
acceptable to the NIMS Insurer shall have assumed the Servicer's
responsibilities, duties, liabilities (other than those liabilities arising
prior to the appointment of such successor) and obligations under this
Agreement.

                  Except as expressly provided in this Agreement, the Servicer
shall not assign or transfer any of its rights, benefits or privileges hereunder
to any other Person, or delegate to or subcontract with, or authorize or appoint
any other Person to perform any of the duties, covenants or obligations to be
performed by the Servicer hereunder. The foregoing prohibition on assignment
shall not prohibit the Servicer from designating a Sub-Servicer as payee of any
indemnification amount payable to the Servicer hereunder; provided, however, no
Sub-Servicer shall be a third-party beneficiary hereunder and the parties hereto
shall not be required to recognize any Subservicer as an indemnitee under this
Agreement.

                                     -123-
<PAGE>

                  SECTION 6.05. Delegation of Duties.

                  In the ordinary course of business, the Servicer at any time
may delegate any of its duties hereunder to any Person, including any of its
Affiliates, who agrees to conduct such duties in accordance with standards
comparable to those set forth in Section 3.01. Such delegation shall not relieve
the Servicer of its liabilities and responsibilities with respect to such duties
and shall not constitute a resignation within the meaning of Section 6.04.
Except as provided in Section 3.02, no such delegation is permitted that results
in the delegee subservicing any Mortgage Loans. The Servicer shall provide the
Trustee with 60 days prior written notice prior to the delegation of any of its
duties to any Person other than any of the Servicer's Affiliates or their
respective successors and assigns.

                  SECTION 6.06. Reserved.

                  SECTION 6.07. Inspection.

                  The Servicer, in its capacity as Servicer, shall afford the
Trustee, upon reasonable notice, during normal business hours, access to all
records maintained by the Servicer in respect of its rights and obligations
hereunder and access to officers of the Servicer responsible for such
obligations.

                                     -124-
<PAGE>

                                   ARTICLE VII

                                     DEFAULT

                  SECTION 7.01. Servicer Events of Default.

         (a) "Servicer Event of Default," wherever used herein, means any one of
the following events:

                  (i) any failure by the Servicer to remit to the Trustee for
         distribution to the Certificateholders any payment (other than an
         Advance required to be made from its own funds on any Servicer
         Remittance Date pursuant to Section 4.03) required to be made under the
         terms of the Certificates and this Agreement which continues unremedied
         for a period of one Business Day after the date upon which written
         notice of such failure, requiring the same to be remedied, shall have
         been given to the Servicer by the Depositor or the Trustee (in which
         case notice shall be provided by telecopy), or to the Servicer, the
         Depositor and the Trustee by the NIMS Insurer or the Holders of
         Certificates entitled to at least 25% of the Voting Rights; or

                  (ii) any failure on the part of the Servicer duly to observe
         or perform in any material respect any other of the covenants or
         agreements on the part of the Servicer contained in this Agreement, or
         the breach by the Servicer of any representation and warranty contained
         in Section 2.05, which continues unremedied for a period of 30 days (or
         if such failure or breach cannot be remedied within 30 days, then such
         remedy shall have been commenced within 30 days and diligently pursued
         thereafter; provided, however, that in no event shall such failure or
         breach be allowed to exist for a period of greater than 90 days) after
         the earlier of (i) the date on which written notice of such failure,
         requiring the same to be remedied, shall have been given to the
         Servicer by the Depositor, the Trustee or to the Servicer, the
         Depositor and the Trustee by the NIMS Insurer or the Holders of
         Certificates entitled to at least 25% of the Voting Rights and (ii)
         actual knowledge of such failure by a Servicing Officer of the
         Servicer; or

                  (iii) a decree or order of a court or agency or supervisory
         authority having jurisdiction in the premises in an involuntary case
         under any present or future federal or state bankruptcy, insolvency or
         similar law or the appointment of a conservator or receiver or
         liquidator in any insolvency, readjustment of debt, marshalling of
         assets and liabilities or similar proceeding, or for the winding-up or
         liquidation of its affairs, shall have been entered against the
         Servicer and such decree or order shall have remained in force
         undischarged or unstayed for a period of 90 days; or

                  (iv) the Servicer shall consent to the appointment of a
         conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshalling of assets and liabilities or similar proceedings
         of or relating to it or of or relating to all or substantially all of
         its property; or

                                     -125-
<PAGE>

                  (v) the Servicer shall admit in writing its inability to pay
         its debts generally as they become due, file a petition to take
         advantage of any applicable insolvency or reorganization statute, make
         an assignment for the benefit of its creditors, or voluntarily suspend
         payment of its obligations; or

                  (vi) [reserved]; or

                  (vii) any failure of the Servicer to make any Advance on any
         Servicer Remittance Date required to be made from its own funds
         pursuant to Section 4.03 which continues unremedied until 5:00 p.m. New
         York time on the Distribution Date.

                  If a Servicer Event of Default described in clauses (i)
through (vi) of this Section shall occur, then, and in each and every such case,
so long as such Servicer Event of Default shall not have been remedied, the
Depositor or the Trustee may, and at the written direction of the Holders of
Certificates entitled to at least 51% of Voting Rights or the NIMS Insurer, the
Trustee shall, by notice in writing to the Servicer (and to the Depositor if
given by the Trustee or to the Trustee if given by the Depositor), terminate,
subject to Section 7.02 hereof, all of the rights and obligations of the
Servicer in its capacity as Servicer under this Agreement, to the extent
permitted by law, and in and to the Mortgage Loans and the proceeds thereof. If
a Servicer Event of Default described in clause (vii) hereof, the Trustee shall
be obligated to make such Advance and, then so long as such Servicer Event of
Default shall not have been remedied during the applicable time period set forth
in clause (vii) above (including the reimbursement to the Trustee by the
Servicer, with interest thereon at the Prime Rate, for any Advance made), the
Trustee shall, by notice in writing to the Servicer, the Depositor and the NIMS
Insurer, terminate, subject to Section 7.02 hereof, all of the rights and
obligations of the Servicer in its capacity as Servicer under this Agreement and
in and to the Mortgage Loans and the proceeds thereof. On or after the receipt
by the Servicer of such written notice, all authority and power of the Servicer
under this Agreement, whether with respect to the Certificates (other than as a
Holder of any Certificate) or the Mortgage Loans or otherwise, shall pass to and
be vested in the Trustee pursuant to and under this Section, and, without
limitation, the Trustee is hereby authorized and empowered, as attorney-in-fact
or otherwise, to execute and deliver, on behalf of and at the expense of the
Servicer, any and all documents and other instruments and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and endorsement or
assignment of the Mortgage Loans and related documents, or otherwise. The
Servicer agrees to promptly (and in any event no later than ten Business Days
subsequent to such notice) provide the Trustee with all documents and records
requested by it to enable it to assume the Servicer's functions under this
Agreement, and to cooperate with the Trustee in effecting the termination of the
Servicer's responsibilities and rights under this Agreement, including, without
limitation, the transfer within one Business Day to the Trustee for
administration by it of all cash amounts which at the time shall be or should
have been credited by the Servicer to the Collection Account held by or on
behalf of the Servicer, the Distribution Account or any REO Account or Escrow
Account held by or on behalf of the Servicer or thereafter be received with
respect to the Mortgage Loans or any REO Property serviced by the Servicer
(provided, however, that the Servicer shall continue to be entitled to receive
all amounts accrued or owing to it under this Agreement on or prior to the date
of such termination, whether in respect of Advances or otherwise, and shall
continue to be entitled to the benefits of

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Section 6.03, notwithstanding any such termination, with respect to events
occurring prior to such termination). For purposes of this Section 7.01, the
Trustee shall not be deemed to have knowledge of a Servicer Event of Default
unless a Responsible Officer of the Trustee assigned to and working in the
Trustee's Corporate Trust Office has actual knowledge thereof or unless written
notice of any event which is in fact such a Servicer Event of Default is
received by the Trustee and such notice references the Certificates, the Trust
Fund or this Agreement.

                  SECTION 7.02. Trustee to Act; Appointment of Successor.

                  (a)(1) From the time the Servicer (and the Trustee, if notice
is sent by the Holders of Certificates entitled to at least 51% of Voting Rights
or the NIMS Insurer) receives a notice of termination, the Trustee (or such
other successor Servicer as is acceptable to the NIMS Insurer) shall be the
successor in all respects to the Servicer in its capacity as Servicer under this
Agreement and the transactions set forth or provided for herein, and all the
responsibilities, duties and liabilities relating thereto and arising thereafter
shall be assumed by the Trustee (except for any representations or warranties of
the Servicer under this Agreement, the responsibilities, duties and liabilities
contained in Section 2.05 (other than with respect to Section 2.05(x)) and the
obligation to deposit amounts in respect of losses pursuant to Section 3.12) by
the terms and provisions hereof; provided, however, the Trustee shall
immediately assume the Servicer's obligations to make Advances pursuant to
Section 4.03; provided, further, however, that if the Trustee is prohibited by
law or regulation from obligating itself to make advances regarding delinquent
mortgage loans, then the Trustee shall not be obligated to make Advances
pursuant to Section 4.03; and provided further, that any failure to perform such
duties or responsibilities caused by the Servicer's failure to provide
information required by Section 7.01 shall not be considered a default by the
Trustee as successor to the Servicer hereunder. As compensation therefor, the
Trustee shall be entitled to the Servicing Fee and all funds relating to the
Mortgage Loans to which the Servicer would have been entitled if it had
continued to act hereunder. Notwithstanding the above and subject to Section
7.02(a)(2) below, the Trustee if it shall be unwilling to so act, or shall, if
it is unable to so act or if it is prohibited by law from making advances
regarding delinquent mortgage loans or if the Holders of Certificates entitled
to at least 51% of the Voting Rights or the NIMS Insurer so request in writing
to the Trustee, promptly appoint or petition a court of competent jurisdiction
to appoint, an established mortgage loan servicing institution acceptable to
each Rating Agency and the NIMS Insurer and having a net worth of not less than
$15,000,000, as the successor to the Servicer under this Agreement in the
assumption of all or any part of the responsibilities, duties or liabilities of
the Servicer under this Agreement.

                  Pending appointment of a successor to the Servicer hereunder,
unless the Trustee is prohibited by law from so acting, the Trustee shall act in
such capacity as hereinabove provided. In connection with such appointment and
assumption, the successor shall be entitled to receive compensation out of
payments on Mortgage Loans in an amount equal to the compensation which the
Servicer would otherwise have received pursuant to Section 3.18 (or such other
compensation as the Trustee and such successor shall agree, not to exceed the
Servicing Fee). The appointment of a successor Servicer shall not affect any
liability of the predecessor Servicer which may have arisen under this Agreement
prior to its termination as Servicer to pay any deductible under an insurance
policy pursuant to Section 3.14 or to indemnify the NIMS Insurer pursuant to
Section 6.03, nor shall any successor Servicer be liable for any acts or
omissions of the predecessor Servicer or

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for any breach by such Servicer of any of its representations or warranties
contained herein or in any related document or agreement. The Trustee and such
successor shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession. All reasonable Servicing Transfer
Costs shall be paid by the predecessor Servicer upon presentation of reasonable
documentation of such costs, and if such predecessor Servicer defaults in its
obligation to pay such costs, such costs shall be paid by the successor Servicer
or the Trustee (in which case the successor Servicer or the Trustee, as
applicable, shall be entitled to reimbursement therefor from the assets of the
Trust Fund pursuant to Section 3.11(b)).

                  (2) Notwithstanding Section 7.01 or any other provision of
this Section 7.02, it is understood, agreed and acknowledged by the parties
hereto that there will be a period of transition (not to exceed 90 days) before
the transition of servicing obligations to the Trustee or other successor
Servicer is fully effective. Until completion of such transition, the
predecessor Servicer shall continue to perform such duties and obligations under
this Agreement as shall be reasonably required by the Trustee or other successor
Servicer, for which the predecessor Servicer shall receive such reasonable
compensation (not to exceed the Servicing Fee) as shall be agreed to by the
predecessor Servicer and the Trustee or other successor Servicer. The
predecessor Servicer will continue to be liable under this Agreement for the
performance of such duties and obligations subject to the provisions of Section
6.01 and Section 6.03 hereof, and neither the Trustee or other successor
Servicer shall have any liability for the predecessor Servicer's performance of,
or failure to perform, such duties and obligations.

                  (3) No appointment of a successor to the Servicer under this
Agreement shall be effective until the assumption by the successor of all of the
Servicer's responsibilities, duties and liabilities hereunder. In connection
with such appointment and assumption described herein, the Trustee may make such
arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted the Servicer as such
hereunder. The Depositor, the Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. Pending appointment of a successor to the Servicer under this
Agreement or the Trustee shall act in such capacity as hereinabove provided.

                  Any successor to the Servicer, including the Trustee, shall
during the term of its service as servicer continue to service and administer
the Mortgage Loans for the benefit of Certificateholders, and maintain in force
a policy or policies of insurance covering errors and omissions in the
performance of its obligations as Servicer hereunder and a Fidelity Bond in
respect of its officers, employees and agents to the same extent as the Servicer
is so required pursuant to Section 3.14.

                  (b) In connection with the termination or resignation of the
Servicer hereunder, either (i) the successor servicer, including the Trustee if
the Trustee is acting as successor Servicer, shall represent and warrant that it
is a member of MERS in good standing and shall agree to comply in all material
respects with the rules and procedures of MERS in connection with the servicing
of the Mortgage Loans that are registered with MERS, in which case the
predecessor Servicer shall cooperate with the successor Servicer in causing MERS
to revise its records to reflect the transfer of servicing to the successor
Servicer as necessary under MERS' rules and regulations, or (ii) the

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predecessor Servicer shall cooperate with the successor Servicer in causing MERS
to execute and deliver an assignment of Mortgage in recordable form to transfer
the Mortgage from MERS to the Trustee and to execute and deliver such other
notices, documents and other instruments as may be necessary or desirable to
effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan on
the MERS(R) System to the successor Servicer. The predecessor Servicer shall
file or cause to be filed any such assignment in the appropriate recording
office. The predecessor Servicer shall bear any and all fees of MERS, costs of
preparing any assignments of Mortgage, and fees and costs of filing any
assignments of Mortgage that may be required under this Section 7.02(b).

                  SECTION 7.03. Notification to Certificateholders.

                  (a) Upon any termination of the Servicer pursuant to Section
7.01 above or any appointment of a successor to the Servicer pursuant to Section
7.02 above, the Trustee shall give prompt written notice thereof to
Certificateholders and the NIMS Insurer at their respective addresses appearing
in the Certificate Register.

                  (b) Not later than the later of 60 days after the occurrence
of any event, which constitutes or which, with notice or lapse of time or both,
would constitute a Servicer Event of Default or five days after a Responsible
Officer of the Trustee becomes aware of the occurrence of such an event, the
Trustee shall transmit by mail to the NIMS Insurer and to all Holders of
Certificates notice of each such occurrence, unless such default or Servicer
Event of Default shall have been cured or waived.

                  SECTION 7.04. Waiver of Servicer Events of Default.

                  The Holders representing at least 66% of the Voting Rights
(with the consent of the NIMS Insurer) evidenced by all Classes of Certificates
affected by any default or Servicer Event of Default hereunder may waive such
default or Servicer Event of Default; provided, however, that a default or
Servicer Event of Default under clause (i) or (vii) of Section 7.01 may be
waived only by all of the Holders of the Regular Certificates (with the consent
of the NIMS Insurer). Upon any such waiver of a default or Servicer Event of
Default, such default or Servicer Event of Default shall cease to exist and
shall be deemed to have been remedied for every purpose hereunder. No such
waiver shall extend to any subsequent or other default or Servicer Event of
Default or impair any right consequent thereon except to the extent expressly so
waived. Notice of any such waiver shall be given by the Trustee to the Rating
Agencies and the NIMS Insurer.

                  SECTION 7.05. Survivability of Servicer Liabilities.

                  Notwithstanding anything herein to the contrary, upon
termination of the Servicer hereunder, any liabilities of the Servicer which
accrued prior to such termination shall survive such termination.

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<PAGE>

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

                  SECTION 8.01. Duties of Trustee

                  The Trustee prior to the occurrence of a Servicer Event of
Default and after the curing of all Servicer Events of Default which may have
occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. During a Servicer Event of Default,
the Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs. Any permissive right of the Trustee enumerated in
this Agreement shall not be construed as a duty.

                  The Trustee upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to it, which are specifically required to be furnished pursuant to any provision
of this Agreement, shall examine them to determine whether they conform to the
requirements of this Agreement; provided, however, that the Trustee will not be
responsible for the accuracy or content of any such resolutions, certificates,
statements, opinions, reports, documents or other instruments. If any such
instrument is found not to conform to the requirements of this Agreement in a
material manner, it shall take such action as it deems appropriate to have the
instrument corrected, and if the instrument is not corrected to its
satisfaction, it will provide notice thereof to the Certificateholders and the
NIMS Insurer.

                  No provision of this Agreement shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act or its own misconduct; provided, however, that:

                  (i) Prior to the occurrence of a Servicer Event of Default,
         and after the curing of all such Servicer Events of Default which may
         have occurred, the duties and obligations of the Trustee shall be
         determined solely by the express provisions of this Agreement, the
         Trustee shall be liable except for the performance of such duties and
         obligations as are specifically set forth in this Agreement, no implied
         covenants or obligations shall be read into this Agreement against the
         Trustee, and in the absence of bad faith on the part of the Trustee,
         the Trustee may conclusively rely, as to the truth of the statements
         and the correctness of the opinions expressed therein, upon any
         certificates or opinions furnished to the Trustee that conform to the
         requirements of this Agreement;

                  (ii) The Trustee shall not be personally liable for an error
         of judgment made in good faith by a Responsible Officer or Responsible
         Officers of it unless it shall be proved that it was negligent in
         ascertaining the pertinent facts;

                  (iii) The Trustee shall not be personally liable with respect
         to any action taken, suffered or omitted to be taken by it in good
         faith in accordance with the direction of the NIMS Insurer or the
         Holders of Certificates entitled to at least 25% of the Voting Rights

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<PAGE>

         relating to the time, method and place of conducting any proceeding for
         any remedy available to it or exercising any trust or power conferred
         upon it under this Agreement; and

                  (iv) The Trustee shall not be required to take notice or be
deemed to have notice or knowledge of any default or Master Servicer Event of
Termination unless a Responsible Officer of the Trustee at the Corporate Trust
Office obtains actual knowledge of such failure or the Trustee receives written
notice of such failure from the Depositor, the Servicer or the Holders of
Certificates evidencing not less than 51% of the Voting Rights.

         The Trustee shall not be required to expend or risk its own funds or
otherwise incur financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it, and
none of the provisions contained in this Agreement shall in any event require
the Trustee to perform, or be responsible for the manner of performance of, any
of the obligations of the Servicer under this Agreement, except during such
time, if any, as the Trustee shall be the successor to, and be vested with the
rights, duties, powers and privileges of, the Master Servicer in accordance with
the terms of this Agreement

                  SECTION 8.02. Certain Matters Affecting the Trustee

                  (a) Except as otherwise provided in Section 8.01:

                  (i) The Trustee may request and rely upon and shall be
         protected in acting or refraining from acting upon any resolution,
         Officers'Certificate, certificate of auditors or any other certificate,
         statement, instrument, opinion, report, notice, request, consent,
         order, appraisal, bond or other paper or document reasonably believed
         by it to be genuine and to have been signed or presented by the proper
         party or parties;

                  (ii) The Trustee may consult with counsel and any Opinion of
         Counsel shall be full and complete authorization and protection in
         respect of any action taken or suffered or omitted by it hereunder in
         good faith and in accordance with such Opinion of Counsel;

                  (iii) The Trustee shall not be under any obligation to
         exercise any of the trusts or powers vested in it by this Agreement or
         to institute, conduct or defend any litigation hereunder or in relation
         hereto at the request, order or direction of any of the
         Certificateholders or the NIMS Insurer, pursuant to the provisions of
         this Agreement, unless such Certificateholders or the NIMS Insurer, as
         applicable, shall have offered to the Trustee reasonable security or
         indemnity against the costs, expenses and liabilities which may be
         incurred therein or thereby; nothing contained herein shall, however,
         relieve the Trustee of the obligation, upon the occurrence of a
         Servicer Event of Default (which has not been cured or waived), to
         exercise such of the rights and powers vested in it by this Agreement,
         and to use the same degree of care and skill in their exercise as a
         prudent person would exercise or use under the circumstances in the
         conduct of such person's own affairs;

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<PAGE>

                  (iv) The Trustee shall not be personally liable for any action
         taken, suffered or omitted by it in good faith and believed by it to be
         authorized or within the discretion or rights or powers conferred upon
         it by this Agreement;

                  (v) Prior to the occurrence of a Servicer Event of Default
         hereunder and after the curing of all Servicer Events of Default which
         may have occurred, the Trustee shall not be bound to make any
         investigation into the facts or matters stated in any resolution,
         certificate, statement, instrument, opinion, report, notice, request,
         consent, order, approval, bond or other paper or document, unless
         requested in writing to do so by the NIMS Insurer or the Holders of
         Certificates entitled to at least 25% of the Voting Rights; provided,
         however, that if the payment within a reasonable time to the Trustee,
         of the costs, expenses or liabilities likely to be incurred by it in
         the making of such investigation is, in the opinion of the Trustee, not
         reasonably assured to the Trustee, by such Certificateholders, the
         Trustee may require reasonable indemnity against such expense, or
         liability from such Certificateholders or the NIMS Insurer, as
         applicable, as a condition to taking any such action;

                  (vi) The Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys; provided, that the Trustee shall not be
         responsible for any negligence or willful misconduct on the part of the
         Custodian or any such agents or attorneys appointed by it with due
         care; and

                  (vii) The Trustee shall not be personally liable for any loss
         resulting from the investment of funds held in the Collection Account
         at the direction of the Servicer pursuant to Section 3.12.

                  (b) All rights of action under this Agreement or under any of
the Certificates, enforceable by the Trustee, may be enforced by it without the
possession of any of the Certificates, or the production thereof at the trial or
other proceeding relating thereto, and any such suit, action or proceeding
instituted by the Trustee shall be brought in its name for the benefit of all
the Holders of such Certificates, subject to the provisions of this Agreement.

                  (c) [Reserved].

                  SECTION 8.03. Trustee not Liable for Certificates or Mortgage
                                Loans.

                  The recitals contained herein and in the Certificates (other
than the signature of the Trustee, the authentication of the Trustee on the
Certificates, the acknowledgments of the Trustee contained in Article II and the
representations and warranties of the Trustee in Section 8.12) shall be taken as
the statements of the Depositor and the Trustee shall not assume any
responsibility for their correctness. The Trustee shall not make any
representations or warranties as to the validity or sufficiency of this
Agreement (other than as specifically set forth in Section 8.12) or of the
Certificates (other than the signature of the Trustee, and authentication of the
Trustee on the Certificates) or of any Mortgage Loan or related document or of
MERS or the MERS(R) System. The Trustee shall not be accountable for the use or
application by the Depositor of any of the Certificates or of the proceeds of
such Certificates, or for the use or application of any funds paid to the
Depositor or the Servicer in respect of the Mortgage Loans or deposited in or
withdrawn from the

                                     -132-
<PAGE>

Collection Account by the Servicer, other than any funds held by or on behalf of
the Trustee in accordance with Section 3.10.

                  SECTION 8.04. Trustee May Own Certificates.

                  The Trustee in its individual capacity or any other capacity
may become the owner or pledgee of Certificates with the same rights it would
have if it were not the Trustee.

                  SECTION 8.05. Trustee's Fees and Expenses.

                  The Trustee shall be entitled to withdraw from the
Distribution Account, pursuant to Section 3.11(b), on each Distribution Date and
pay to itself the Trustee Fee. The Trustee and any director, officer, employee
or agent of the Trustee, shall be indemnified by the Trust Fund and held
harmless against any loss, liability or expense (not including expenses,
disbursements and advances incurred or made by the Trustee including the
compensation and the expenses and disbursements of its agents and counsel, in
the ordinary course of the Trustee's performance in accordance with the
provisions of this Agreement) incurred by the Trustee arising out of or in
connection with the acceptance or administration of its obligations and duties
under this Agreement up to a limit of $600,000 per calender year, other than any
loss, liability or expense (i) resulting from any breach of the Servicer's
obligations in connection with this Agreement, (ii) that constitutes a specific
liability of the Trustee pursuant to Section 10.01(g) or (iii) any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder as a result of a breach of the
Trustee's obligations under Article X hereof. It is understood by the parties
hereto that a "claim" as used in the preceding sentence includes any claim for
indemnification made by the Custodian under Section 11 of the Custodial
Agreement. Notwithstanding anything herein to the contrary, the Trustee shall be
reimbursed from the Trust Fund for all Servicing Transfer Costs without regard
to the annual limitation.

                  SECTION 8.06. Eligibility Requirements for Trustee

                  The Trustee hereunder shall at all times be a corporation or
an association (other than the Depositor, the Originator, the Seller, the
Servicer or any Affiliate of the foregoing) organized and doing business under
the laws of any state or the United States of America, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least $50,000,000 (or a member of a bank holding company whose capital and
surplus is at least $50,000,000) and subject to supervision or examination by
federal or state authority. If such corporation or association publishes reports
of conditions at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section the combined capital and surplus of such corporation or association
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of conditions so published. In case at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, the
Trustee shall resign immediately in the manner and with the effect specified in
Section 8.07.

                  SECTION 8.07. Resignation and Removal of the Trustee

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<PAGE>

                  The Trustee may at any time resign and be discharged from the
trust hereby created by giving written notice thereof to the Depositor, the NIMS
Insurer, the Servicer and to the Certificateholders. Upon receiving such notice
of resignation, the Depositor shall promptly appoint a successor trustee
acceptable to the NIMS Insurer by written instrument, in duplicate, which
instrument shall be delivered to the resigning Trustee and to the successor
trustee. A copy of such instrument shall be delivered to the Certificateholders,
the Trustee and the Servicer by the Depositor. If no successor trustee shall
have been so appointed and have accepted appointment within 30 days after the
giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee.

                  If at any time the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.06 and shall fail to resign after
written request therefor by the Depositor or the NIMS Insurer, or if at any time
the Trustee shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Depositor or the NIMS Insurer may remove the and appoint a
successor trustee acceptable to the NIMS Insurer by written instrument, in
duplicate, which instrument shall be delivered to the Trustee so removed and to
the successor trustee. A copy of such instrument shall be delivered to the
Certificateholders, the Trustee and the Servicer by the Depositor.

                  The Holders of Certificates entitled to at least 51% of the
Voting Rights (or the NIMS Insurer upon failure of the Trustee to perform its
obligations hereunder) may at any time remove the Trustee and appoint a
successor trustee acceptable to the NIMS Insurer by written instrument or
instruments, in triplicate, signed by such Holders or their attorneys-in-fact
duly authorized, one complete set of which instruments shall be delivered to the
Depositor, one complete set to the Trustee so removed and one complete set to
the successor so appointed. A copy of such instrument shall be delivered to the
Certificateholders and the Servicer by the Depositor.

                  Any resignation or removal of the Trustee and appointment of a
successor trustee, pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor trustee as
provided in Section 8.08. Notwithstanding the foregoing, in the event the
Trustee is unable to continue to perform its obligations pursuant to the terms
of this Agreement prior to the appointment of a successor, the Trustee shall be
obligated to perform such obligations until a new trustee is appointed. Such
performance shall be without prejudice to any claim by a party hereto or
beneficiary hereof resulting from the Trustee's breach of its obligations
hereunder.

                  SECTION 8.08. Successor Trustee

                  Any successor trustee appointed as provided in Section 8.07
shall execute, acknowledge and deliver to the Depositor, the NIMS Insurer and
its predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as trustee herein. The predecessor

                                     -134-
<PAGE>

trustee shall deliver to the successor trustee all Mortgage Files and related
documents and statements to the extent held by it hereunder, as well as all
moneys, held by it hereunder (other than any Mortgage Files at the time held by
the Custodian, which Custodian shall become the agent of any successor trustee
hereunder), and the Depositor and the predecessor trustee shall execute and
deliver such instruments and do such other things as may reasonably be required
for more fully and certainly vesting and confirming in the successor trustee all
such rights, powers, duties and obligations.

                  No successor trustee shall accept appointment as provided in
this Section unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 and the appointment of such
successor trustee shall not result in a downgrading of any Class of Certificates
by any Rating Agency, as evidenced by a letter from each Rating Agency.

                  Upon acceptance of appointment by a successor trustee, as
provided in this Section, the Depositor shall mail notice of the succession of
such trustee hereunder to all Holders of Certificates at their addresses as
shown in the Certificate Register. If the Depositor fails to mail such notice
within 10 days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the
Depositor.

                  SECTION 8.09. Merger or Consolidation of Trustee.

                  Any corporation or association into which either the Trustee
may be merged or converted or with which it may be consolidated or any
corporation or association resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation or
association succeeding to the business of the Trustee shall be the successor of
the Trustee hereunder, provided such corporation or association shall be
eligible under the provisions of Section 8.06, without the execution or filing
of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.

                  SECTION 8.10. Appointment of Co-Trustee or Separate Trustee.

                  Notwithstanding any other provisions hereof, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of REMIC I or property securing the same may at the time be located, the
Trustee shall have the power and shall execute and deliver all instruments to
appoint one or more Persons approved by the Trustee and the NIMS Insurer to act
as co-trustee or co-trustees, jointly with the Trustee, or separate trustee or
separate trustees, of all or any part of REMIC I, and to vest in such Person or
Persons, in such capacity, such title to REMIC I, or any part thereof, and,
subject to the other provisions of this Section 8.10, such powers, duties,
obligations, rights and trusts as the Trustee may consider necessary or
desirable. Any such co-trustee or separate trustee shall be subject to the
written approval of the NIMS Insurer. If the NIMS Insurer shall not have joined
in such appointment within 15 days after the receipt by it of a request to do
so, the Trustee alone shall have the power to make such appointment. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 8.06 hereunder and no notice to
Holders of Certificates of the appointment of co-trustee(s) or separate
trustee(s) shall be required under Section 8.08 hereof.

                                     -135-
<PAGE>

                  In the case of any appointment of a co-trustee or separate
trustee pursuant to this Section 8.10 all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed by the Trustee (whether as
Trustee hereunder or as successor to a defaulting Servicer hereunder), the
Trustee shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties and obligations (including the holding
of title to REMIC I or any portion thereof in any such jurisdiction) shall be
exercised and performed by such separate trustee or co-trustee at the direction
of the Trustee.

                  Any notice, request or other writing given to the Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article VIII. Each separate trustee and co-trustee, upon
its acceptance of the trust conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Trustee, or separately, as may be provided therein, subject to all the
provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Trustee. Every such instrument shall be filed with the
Trustee and a copy thereof given to the NIMS Insurer.

                  Any separate trustee or co-trustee may, at any time,
constitute the Trustee, its agent or attorney-in-fact, with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Agreement on its behalf and in its name. If any separate trustee
or co-trustee shall die, become incapable of acting, resign or be removed, all
of its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee or co-trustee.

                  SECTION 8.11. Appointment of Office or Agency; Appointment of
                                Custodian.

                  The Trustee will appoint an office or agency in the City of
St. Paul, Minnesota where the Certificates may be surrendered for registration
of transfer or exchange, and presented for final distribution, and where notices
and demands to or upon the Trustee in respect of the Certificates and this
Agreement may be served.

                  The Trustee may, with the consent of the Depositor, the
Servicer and the NIMS Insurer, appoint the Custodian to hold all or a portion of
the Mortgage Files as agent for the Trustee, by entering into the Custodial
Agreement. The appointment of the Custodian may at any time be terminated and a
substitute Custodian appointed therefor upon the reasonable request of the
Servicer or the NIMS Insurer to the Trustee, the consent to which shall not be
unreasonably withheld. The Trustee initially appoints Wells Fargo Bank, N.A. as
Custodian, and the Depositor and the Servicer each consent to such appointment.
Subject to Article VIII hereof, the Trustee agrees to comply with the terms of
the Custodial Agreement and to enforce the terms and provisions thereof against
the Custodian for the benefit of the Certificateholders having an interest in
any Mortgage File held by the Custodian. The Custodian shall be a depository
institution or trust company subject to supervision by federal or state
authority, shall have combined capital and surplus of at least

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$10,000,000 and shall be qualified to do business in the jurisdiction in which
it holds any Mortgage File. Subject to Section 8.02(a), in no event shall the
appointment of the Custodian pursuant to the Custodial Agreement diminish the
obligations of the Trustee hereunder.

                  SECTION 8.12. Representations and Warranties.

                  The Trustee hereby represents and warrants to the Servicer and
the Depositor, as of the Closing Date, that:

                  (i) It is a national banking association duly organized,
         validly existing and in good standing under the laws of the United
         States of America.

                  (ii) The execution and delivery of this Agreement by it, and
         the performance and compliance with the terms of this Agreement by it,
         will not violate its articles of association or bylaws or constitute a
         default (or an event which, with notice or lapse of time, or both,
         would constitute a default) under, or result in the breach of, any
         material agreement or other instrument to which it is a party or which
         is applicable to it or any of its assets.

                  (iii) It has the full power and authority to enter into and
         consummate all transactions contemplated by this Agreement, has duly
         authorized the execution, delivery and performance of this Agreement,
         and has duly executed and delivered this Agreement.

                  (iv) This Agreement, assuming due authorization, execution and
         delivery by the other parties hereto, constitutes a valid, legal and
         binding obligation of it, enforceable against it in accordance with the
         terms hereof, subject to (A) applicable bankruptcy, insolvency,
         receivership, reorganization, moratorium and other laws affecting the
         enforcement of creditors'rights generally, and (B) general principles
         of equity, regardless of whether such enforcement is considered in a
         proceeding in equity or at law.

                  (v) It is not in violation of, and its execution and delivery
         of this Agreement and its performance and compliance with the terms of
         this Agreement will not constitute a violation of, any law, any order
         or decree of any court or arbiter, or any order, regulation or demand
         of any federal, state or local governmental or regulatory authority,
         which violation, in its good faith and reasonable judgment, is likely
         to affect materially and adversely either the ability of it to perform
         its obligations under this Agreement or its financial condition.

                  (vi) No litigation is pending or, to the best of its
         knowledge, threatened against it, which would prohibit it from entering
         into this Agreement or, in its good faith reasonable judgment, is
         likely to materially and adversely affect either the ability of it to
         perform its obligations under this Agreement or its financial
         condition.

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<PAGE>

                                   ARTICLE IX

                                   TERMINATION

                  SECTION 9.01. Termination Upon Repurchase or Liquidation of
                                All Mortgage Loans.

                  (a) Subject to Section 9.02, the respective obligations and
responsibilities under this Agreement of the Depositor, the Servicer and the
Trustee (other than the indemnification obligations of the Servicer pursuant to
Section 6.03 and of the Servicer to make remittances to the Trustee and the
Trustee to make payments in respect of the REMIC I Regular Interests and the
Classes of Certificates as hereinafter set forth) shall terminate upon payment
to the Certificateholders and the deposit of all amounts held by or on behalf of
the Trustee and required hereunder to be so paid or deposited on the
Distribution Date coinciding with or following the earlier to occur of (i) the
purchase by the Terminator (as defined below) of all Mortgage Loans and each REO
Property remaining in REMIC I and (ii) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan or REO Property
remaining in REMIC I; provided, however, that in no event shall the trust
created hereby continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late ambassador of
the United States to the Court of St. James, living on the date hereof. Subject
to Section 3.10 hereof, the purchase by the Terminator of all Mortgage Loans and
each REO Property remaining in REMIC I shall be at a price (the "Termination
Price") equal to the greater of (i) the Stated Principal Balance of the Mortgage
Loans and the appraised value of any REO Properties, such appraisal to be
conducted by an Independent appraiser mutually agreed upon by the Terminator and
the Trustee in their reasonable discretion and (ii) the fair market value of all
of the assets of REMIC I (as determined by the Terminator and the Trustee, as of
the close of business on the third Business Day next preceding the date upon
which notice of any such termination is furnished to Certificateholders pursuant
to the third paragraph of this Section 9.01) in each case, plus accrued and
unpaid interest thereon at the weighted average of the Mortgage Rates through
the end of the Due Period preceding the final Distribution Date, plus
unreimbursed Servicing Advances, Advances, any unpaid Servicing Fees and Trustee
Fees allocable to such Mortgage Loans and REO Properties, any accrued and unpaid
Net WAC Rate Carryover Amount; provided, however, such option may only be
exercised if (i) the Termination Price is sufficient to pay all interest accrued
on, as well as amounts necessary to retire the principal balance of, each class
of notes issued pursuant to the Indenture and any remaining amounts owed to the
trustee under the Indenture and the NIMS Insurer on the date such notes are
retired and (ii) the fair market value of the Mortgage Loans and REO Properties
determined as described above is at least equal to the Principal Balance of the
Mortgage Loans (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and the appraised value of the REO Properties.

                  (b) The majority holder of the Class CE Certificates (so long
as such holder is not an affiliate of the Seller) or if such majority holder
fails to exercise such right, the Servicer (or if the Servicer fails to exercise
such right, the NIMS Insurer) shall have the right (the party exercising such
right, the "Terminator"), to purchase all of the Mortgage Loans and each REO
Property remaining in REMIC I pursuant to clause (i) of the preceding paragraph
no later than the Determination Date

                                     -138-
<PAGE>

in the month immediately preceding the Distribution Date on which the
Certificates will be retired; provided, however, that the Terminator may elect
to purchase all of the Mortgage Loans and each REO Property remaining in REMIC I
pursuant to clause (i) above only if the aggregate Stated Principal Balance of
the Mortgage Loans and each REO Property remaining in the Trust Fund at the time
of such election is reduced to less than 10% of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date. By acceptance of the
Residual Certificates, the Holder of the Residual Certificates agrees for so
long as any notes insured by the NIMS Insurer and secured by all or a portion of
the Class CE, Class P or Class R Certificates are outstanding, in connection
with any termination hereunder, to assign and transfer any amounts in excess of
par, and to the extent received in respect of such termination, to pay any such
amounts to the Holders of the Class CE Certificates.

                  (c) Notice of the liquidation of the Certificates shall be
given promptly by the Trustee by letter to Certificateholders and the NIMS
Insurer mailed (a) in the event such notice is given in connection with the
purchase of the Mortgage Loans and each REO Property by the Terminator, not
earlier than the 10th day and not later than the 20th day of the month next
preceding the month of the final distribution on the Certificates or (b)
otherwise during the month of such final distribution on or before the
Determination Date in such month, in each case specifying (i) the Distribution
Date upon which the Trust Fund will terminate and the final payment in respect
of the REMIC I Regular Interests and the Certificates will be made upon
presentation and surrender of the related Certificates at the office of the
Trustee therein designated, (ii) the amount of any such final payment, (iii)
that no interest shall accrue in respect of the REMIC I Regular Interests or the
Certificates from and after the Accrual Period relating to the final
Distribution Date therefor and (iv) that the Record Date otherwise applicable to
such Distribution Date is not applicable, payments being made only upon
presentation and surrender of the Certificates at the office of the Trustee . In
the event such notice is given in connection with the purchase of all of the
Mortgage Loans and each REO Property remaining in REMIC I by the Terminator, the
Terminator shall deliver to the Trustee for deposit in the Distribution Account
not later than the last Business Day of the month next preceding the month of
the final distribution on the Certificates an amount in immediately available
funds equal to the Termination Price. The Trustee shall remit to the Servicer
from such funds deposited in the Distribution Account (i) any amounts which the
Servicer would be permitted to withdraw and retain from the Collection Account
pursuant to Section 3.11 and (ii) any other amounts otherwise payable by the
Trustee to the Servicer from amounts on deposit in the Distribution Account
pursuant to the terms of this Agreement, in each case prior to making any final
distributions pursuant to Section 10.01(d) below. Upon certification to the
Trustee by the Terminator of the making of such final deposit, the Trustee shall
promptly release to the Terminator the Mortgage Files for the remaining Mortgage
Loans, and the Trustee shall execute all assignments, endorsements and other
instruments necessary to effectuate such transfer.

                  (d) Upon presentation of the Certificates by the
Certificateholders on the final Distribution Date, the Trustee shall distribute
to each Certificateholder so presenting and surrendering its Certificates the
amount otherwise distributable on such Distribution Date in accordance with
Section 4.01 in respect of the Certificates so presented and surrendered. Any
funds not distributed to any Holder or Holders of Certificates being retired on
such Distribution Date because of the failure of such Holder or Holders to
tender their Certificates shall, on such date, be set aside and held in trust
and credited to the account of the appropriate non-tendering Holder or

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<PAGE>

Holders. If any Certificates as to which notice has been given pursuant to this
Section 9.01 shall not have been surrendered for cancellation within six months
after the time specified in such notice, the Trustee shall mail a second notice
to the remaining non-tendering Certificateholders to surrender their
Certificates for cancellation in order to receive the final distribution with
respect thereto. If within one year after the second notice all such
Certificates shall not have been surrendered for cancellation, the Trustee
shall, directly or through an agent, mail a final notice to the remaining non-
tendering Certificateholders concerning surrender of their Certificates. The
costs and expenses of maintaining the funds in trust and of contacting such
Certificateholders shall be paid out of the assets remaining in the Trust Fund.
If within one year after the final notice any such Certificates shall not have
been surrendered for cancellation, the Trustee shall pay to UBS Securities LLC
all such amounts, and all rights of non-tendering Certificateholders in or to
such amounts shall thereupon cease. No interest shall accrue or be payable to
any Certificateholder on any amount held in trust by the Trustee as a result of
such Certificateholder's failure to surrender its Certificate(s) for final
payment thereof in accordance with this Section 9.01. Any such amounts held in
trust by the Trustee shall be held in an Eligible Account and the Trustee may
direct any depository institution maintaining such account to invest the funds
in one or more Permitted Investments. All income and gain realized from the
investment of funds deposited in such accounts held in trust by the Trustee
shall be for the benefit of the Trustee; provided, however, that the Trustee
shall deposit in such account the amount of any loss of principal incurred in
respect of any such Permitted Investment made with funds in such accounts
immediately upon the realization of such loss.

                  Immediately following the deposit of funds in trust hereunder
in respect of the Certificates, the Trust Fund shall terminate.

                  SECTION 9.02. Additional Termination Requirements.

                  (a) In the event that the Terminator purchases all the
Mortgage Loans and each REO Property or the final payment on or other
liquidation of the last Mortgage Loan or REO Property remaining in REMIC I
pursuant to Section 9.01, the Trust Fund shall be terminated in accordance with
the following additional requirements, unless the Trustee and the Servicer have
received an Opinion of Counsel, which Opinion of Counsel shall be at the expense
of the Terminator (or in connection with a termination resulting from the final
payment on or other liquidation of the last Mortgage Loan or REO Property
remaining in REMIC I, which Opinion of Counsel shall be at the expense of the
person seeking nonadherence to the following additional requirements but which
in no event shall be at the expense of the Trust Fund or, unless it is the
person seeking nonadherence to the following additional requirements, the
Servicer or the Trustee), to the effect that the failure of REMIC I to comply
with such additional requirements of this Section 9.02 will not (A) result in
the imposition on the Trust Fund of taxes on "prohibited transactions," as
described in Section 860F of the Code, or (B) cause REMIC I to fail to qualify
as a REMIC at any time that any Certificate is outstanding:

                  (i) The Trustee shall specify the first day in the 90-day
         liquidation period in a statement attached to each Trust REMIC's final
         Tax Return pursuant to Treasury regulation Section 1.860F-1 and shall
         satisfy all requirements of a qualified liquidation under Section 860F
         of the Code and any regulations thereunder, as evidenced by an Opinion
         of Counsel obtained at the expense of the Terminator;

                                     -140-
<PAGE>

                  (ii) During such 90-day liquidation period and, at or prior to
         the time of making of the final payment on the Certificates, the
         Trustee shall sell all of the assets of REMIC I to the Terminator for
         cash; and

                  (iii) At the time of the making of the final payment on the
         Certificates, the Trustee shall distribute or credit, or cause to be
         distributed or credited, to the Holders of the Residual Certificates
         all cash on hand in the Trust Fund (other than cash retained to meet
         claims), and the Trust Fund shall terminate at that time.

                  (b) At the expense of the Terminator, the Depositor shall
prepare or cause to be prepared the documentation required in connection with
the adoption of a plan of liquidation of each Trust REMIC pursuant to this
Section 9.02.

                  (c) By their acceptance of Certificates, the Holders thereof
hereby agree to authorize the Trustee to specify the 90-day liquidation period
for each Trust REMIC, which authorization shall be binding upon all successor
Certificateholders.

                                     -141-
<PAGE>

                                    ARTICLE X

                                REMIC PROVISIONS

                  SECTION 10.01. REMIC Administration.

                  (a) The Trustee shall elect to treat each Trust REMIC as a
REMIC under the Code and, if necessary, under applicable state law. Each such
election will be made by the Trustee on Form 1066 or other appropriate federal
tax or information return or any appropriate state return for the taxable year
ending on the last day of the calendar year in which the Certificates are
issued. For the purposes of the REMIC election in respect of REMIC I, the REMIC
I Regular Interests shall be designated as the Regular Interests in REMIC I and
the Class R-I Interest shall be designated as the Residual Interest in REMIC I.
The Class A Certificates, the Mezzanine Certificates, the Class CE Interest and
the Class P Interest shall be designated as the Regular Interests in REMIC II
and the Class R-II Interest shall be designated as the Residual Interest in
REMIC II. The CE Certificates shall be designated as the Regular Interests in
REMIC III and the Class R-III Interest shall be designated as the Residual
Interest in REMIC III. The P Certificates shall be designated as the Regular
Interests in REMIC IV and the Class R-IV Interest shall be designated as the
Residual Interest in REMIC IV. The Trustee shall not permit the creation of any
"interests" in any Trust REMIC (within the meaning of Section 860G of the Code)
other than the REMIC I Regular Interests, the Class CE Interest, the Class P
Interest and the interests represented by the Certificates.

                  (b) The Closing Date is hereby designated as the "Startup Day"
of each Trust REMIC within the meaning of Section 860G(a)(9) of the Code.

                  (c) The Trustee shall be reimbursed for any and all expenses
relating to any tax audit of the Trust Fund (including, but not limited to, any
professional fees or any administrative or judicial proceedings with respect to
any Trust REMIC that involve the Internal Revenue Service or state tax
authorities), including the expense of obtaining any tax related Opinion of
Counsel except as specified herein. The Trustee, as agent for each Trust REMIC's
tax matters person shall (i) act on behalf of the Trust Fund in relation to any
tax matter or controversy involving any Trust REMIC and (ii) represent the Trust
Fund in any administrative or judicial proceeding relating to an examination or
audit by any governmental taxing authority with respect thereto. The holder of
the largest Percentage Interest of the Residual Certificates shall be
designated, in the manner provided under Treasury regulations section
1.860F-4(d) and Treasury regulations section 301.6231(a)(7)-1, as the tax
matters person of the related REMIC created hereunder. By their acceptance
thereof, the holder of the largest Percentage Interest of the Residual
Certificates hereby agrees to irrevocably appoint the Trustee or an Affiliate as
its agent to perform all of the duties of the tax matters person for the Trust
Fund.

                  (d) The Trustee shall prepare, sign and file all of the Tax
Returns (including Form 8811, which must be filed within 30 days following the
Closing Date) in respect of each Trust REMIC. The expenses of preparing and
filing such returns shall be borne by the Trustee without any right of
reimbursement therefor.

                                     -142-
<PAGE>

                  (e) The Trustee shall perform on behalf of each Trust REMIC
all reporting and other tax compliance duties that are the responsibility of
such REMIC under the Code, the REMIC Provisions or other compliance guidance
issued by the Internal Revenue Service or any state or local taxing authority.
Among its other duties, as required by the Code, the REMIC Provisions or other
such compliance guidance, the Trustee shall provide (i) to any Transferor of a
Residual Certificate such information as is necessary for the application of any
tax relating to the transfer of a Residual Certificate to any Person who is not
a Permitted Transferee, (ii) to the Certificateholders such information or
reports as are required by the Code or the REMIC Provisions including reports
relating to interest, original issue discount and market discount or premium
(using the Prepayment Assumption as required) and (iii) to the Internal Revenue
Service the name, title, address and telephone number of the person who will
serve as the representative of each Trust REMIC. The Depositor shall provide or
cause to be provided to the Trustee, within ten (10) days after the Closing
Date, all information or data that the Trustee reasonably determines to be
relevant for tax purposes as to the valuations and issue prices of the
Certificates, including, without limitation, the price, yield, prepayment
assumption and projected cash flow of the Certificates.

                  (f) The Trustee shall take such action and shall cause each
Trust REMIC to take such action as shall be necessary to create or maintain the
status thereof as a REMIC under the REMIC Provisions. The Trustee shall not take
any action or cause the Trust Fund to take any action or fail to take (or fail
to cause to be taken) any action that, under the REMIC Provisions, if taken or
not taken, as the case may be, could (i) endanger the status of any Trust REMIC
as a REMIC or (ii) result in the imposition of a tax upon the Trust Fund
(including but not limited to the tax on prohibited transactions as defined in
Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set forth
in Section 860G(d) of the Code) (either such event, an "Adverse REMIC Event")
unless the Trustee and the NIMS Insurer has received an Opinion of Counsel,
addressed to the Trustee (at the expense of the party seeking to take such
action but in no event at the expense of the Trustee) to the effect that the
contemplated action will not, with respect to any Trust REMIC, endanger such
status or result in the imposition of such a tax, nor shall the Servicer take or
fail to take any action (whether or not authorized hereunder) as to which the
Trustee and the NIMS Insurer has advised it in writing that it has received an
Opinion of Counsel to the effect that an Adverse REMIC Event could occur with
respect to such action; provided that the Servicer may conclusively rely on such
Opinion of Counsel and shall incur no liability for its action or failure to act
in accordance with such Opinion of Counsel. In addition, prior to taking any
action with respect to any Trust REMIC or the respective assets of each, or
causing any Trust REMIC to take any action, which is not contemplated under the
terms of this Agreement, the Servicer will consult with the Trustee, the NIMS
Insurer or its designee, in writing, with respect to whether such action could
cause an Adverse REMIC Event to occur with respect to any Trust REMIC and the
Servicer shall not take any such action or cause any Trust REMIC to take any
such action as to which the Trustee or the NIMS Insurer has advised it in
writing that an Adverse REMIC Event could occur; provided that the Servicer may
conclusively rely on such writing and shall incur no liability for its action or
failure to act in accordance with such writing. The Trustee or the NIMS Insurer
may consult with counsel to make such written advice, and the cost of same shall
be borne by the party seeking to take the action not permitted by this
Agreement, but in no event shall such cost be an expense of the Trustee. At all
times as may be required by the Code, the Trustee will ensure that substantially
all of the assets of REMIC I will consist of "qualified mortgages" as defined in
Section 860G(a)(3) of the Code and

                                     -143-
<PAGE>

"permitted investments" as defined in Section 860G(a)(5) of the Code, to the
extent such obligations are within the Trustee's control and not otherwise
inconsistent with the terms of this Agreement.

                  (g) In the event that any tax is imposed on "prohibited
transactions" of any REMIC created hereunder as defined in Section 860F(a)(2) of
the Code, on the "net income from foreclosure property" of such REMIC as defined
in Section 860G(c) of the Code, on any contributions to any such REMIC after the
Startup Day therefor pursuant to Section 860G(d) of the Code, or any other tax
is imposed by the Code or any applicable provisions of state or local tax laws,
such tax shall be charged (i) to the Trustee pursuant to Section 10.03 hereof,
if such tax arises out of or results from a breach by the Trustee of any of its
obligations under this Article X, (ii) to the Servicer pursuant to Section 10.03
hereof, if such tax arises out of or results from a breach by the Servicer of
any of its obligations under Article III or this Article X, or (iii) against
amounts on deposit in the Distribution Account and shall be paid by withdrawal
therefrom.

                  (h) On or before April 15th of each calendar year, commencing
April 15, 2005, the Trustee shall deliver to each Rating Agency and the NIMS
Insurer an Officer's Certificate of the Trustee stating the Trustee's compliance
with this Article X (without regard to any action taken by any party other than
the Trustee).

                  (i) The Trustee shall, for federal income tax purposes,
maintain books and records with respect to each Trust REMIC on a calendar year
and on an accrual basis.

                  (j) Following the Startup Day, neither the Servicer nor the
Trustee shall accept any contributions of assets to any Trust REMIC other than
in connection with any Qualified Substitute Mortgage Loan delivered in
accordance with Section 2.03 unless it shall have received an Opinion of Counsel
to the effect that the inclusion of such assets in the Trust Fund will not cause
the related REMIC to fail to qualify as a REMIC at any time that any
Certificates are outstanding or subject such REMIC to any tax under the REMIC
Provisions or other applicable provisions of federal, state and local law or
ordinances.

                  (k) Neither the Trustee nor the Servicer shall enter into any
arrangement by which any Trust REMIC will receive a fee or other compensation
for services nor permit either REMIC to receive any income from assets other
than "qualified mortgages" as defined in Section 860G(a)(3) of the Code or
"permitted investments" as defined in Section 860G(a)(5) of the Code.

                  SECTION 10.02. Prohibited Transactions and Activities.

                  None of the Depositor, the Servicer or the Trustee shall sell,
dispose of or substitute for any of the Mortgage Loans (except in connection
with (i) the foreclosure of a Mortgage Loan, including but not limited to, the
acquisition or sale of a Mortgaged Property acquired by deed in lieu of
foreclosure, (ii) the bankruptcy of REMIC I, (iii) the termination of REMIC I
pursuant to Article IX of this Agreement, (iv) a substitution pursuant to
Article II of this Agreement or (v) a purchase of Mortgage Loans pursuant to
Article II or III of this Agreement), nor acquire any assets for any Trust REMIC
(other than REO Property acquired in respect of a defaulted Mortgage Loan), nor
sell or dispose of any investments in the Collection Account or the Distribution
Account for gain, nor

                                     -144-
<PAGE>

accept any contributions to any Trust REMIC after the Closing Date (other than a
Qualified Substitute Mortgage Loan delivered in accordance with Section 2.03),
unless it has received an Opinion of Counsel, addressed to the Trustee and the
NIMS Insurer (at the expense of the party seeking to cause such sale,
disposition, substitution, acquisition or contribution but in no event at the
expense of the Trustee) that such sale, disposition, substitution, acquisition
or contribution will not (a) affect adversely the status of any Trust REMIC as a
REMIC or (b) cause any Trust REMIC to be subject to a tax on "prohibited
transactions" or "contributions" pursuant to the REMIC Provisions.

                  SECTION 10.03. Servicer and Trustee Indemnification.

                  (a) In the event that any Trust REMIC fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to (i) the negligent performance by the Trustee of its duties and
obligations set forth herein or (ii) any state, local or franchise taxes imposed
upon the Trust Fund as a result of the location of the Trustee or any
co-trustee, the Trustee shall indemnify the NIMS Insurer, the Servicer and the
Trust Fund against any and all Losses resulting from such negligence, including,
without limitation, any reasonable attorneys' fees imposed on or incurred as a
result of a breach of the Trustee's or any co-trustee's covenants; PROVIDED,
HOWEVER, that the Trustee shall not be liable for any such Losses attributable
to the action or inaction of the Servicer, the Depositor or the Holder of such
Residual Certificate, as applicable, nor for any such Losses resulting from
misinformation provided by the Holder of such Residual Certificate on which the
Trustee has relied. The foregoing shall not be deemed to limit or restrict the
rights and remedies of the Holder of such Residual Certificate now or hereafter
existing at law or in equity. Notwithstanding the foregoing, however, in no
event shall the Trustee have any liability (1) for any action or omission that
is taken in accordance with and in compliance with the express terms of, or
which is expressly permitted by the terms of, this Agreement, (2) for any Losses
other than arising out of a negligent performance by the Trustee of its duties
and obligations set forth herein, and (3) for any special or consequential
damages to Certificateholders (in addition to payment of principal and interest
on the Certificates).

                  (b) In the event that any Trust REMIC fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to (i) the negligent performance by the Servicer of its duties
and obligations set forth herein or (ii) any state, local or franchise taxes
imposed upon the Trust Fund as a result of the location of the Servicer or any
sub-servicer, the Servicer shall indemnify the NIMS Insurer, the Trustee and the
Trust Fund against any and all losses, claims, damages, liabilities or expenses
("Losses") resulting from such negligence, including, without limitation, any
reasonable attorneys' fees imposed on or incurred as a result of a breach of the
Servicer's or any sub- servicer's covenants; PROVIDED, HOWEVER, that the
Servicer shall not be liable for any such Losses attributable to the action or
inaction of the Trustee, the Depositor or the Holder of such Residual
Certificate, as applicable, nor for any such Losses resulting from
misinformation provided by the Holder of such Residual Certificate on which the
Servicer has relied. The foregoing shall not be deemed to limit or restrict the
rights and remedies of the Holder of such Residual Certificate now or hereafter
existing at law or in equity. Notwithstanding the foregoing, however, in no
event shall the Servicer have any liability (1) for any action or omission that
is taken in accordance with and in

                                     -145-
<PAGE>

compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement, (2) for any Losses other than arising out of a
negligent performance by the Servicer of its duties and obligations set forth
herein, and (3) for any special or consequential damages to Certificateholders
(in addition to payment of principal and interest on the Certificates).

                                     -146-
<PAGE>

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  SECTION 11.01. Amendment.

                  This Agreement may be amended from time to time by the
Depositor, the Servicer and the Trustee with the consent of the NIMS Insurer and
without the consent of any of the Certificateholders, (i) to cure any ambiguity
or defect, (ii) to correct, modify or supplement any provisions herein
(including to give effect to the expectations of Certificateholders), or (iii)
to make any other provisions with respect to matters or questions arising under
this Agreement which shall not be inconsistent with the provisions of this
Agreement, provided that such action shall not adversely affect in any material
respect the interests of any Certificateholder as evidenced by either (i) an
Opinion of Counsel delivered to the Servicer, the Trustee and the NIMS Insurer
or (ii) confirmation from the Rating Agencies, delivered to the Servicer, the
Trustee and the NIMS Insurer, that such amendment will not result in the
reduction or withdrawal of the rating of any outstanding Class of Certificates.
No amendment shall be deemed to adversely affect in any material respect the
interests of any Certificateholder who shall have consented thereto, and no
Opinion of Counsel shall be required to address the effect of any such amendment
on any such consenting Certificateholder.

                  This Agreement may also be amended from time to time by the
Depositor, the Servicer, the NIMS Insurer and the Trustee with the consent of
the NIMS Insurer and the Holders of Certificates entitled to at least 66% of the
Voting Rights for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Holders of Certificates; provided, however, that no
such amendment shall (i) reduce in any manner the amount of, or delay the timing
of, payments received on Mortgage Loans which are required to be distributed on
any Certificate without the consent of the Holder of such Certificate, (ii)
adversely affect in any material respect the interests of the Holders of any
Class of Certificates (as evidenced by either (i) an Opinion of Counsel
delivered to the Trustee and the NIMS Insurer or (ii) confirmation from the
Rating Agencies, delivered to the Servicer, the Trustee and the NIMS Insurer,
that such action will not result in the reduction or withdrawal of the rating of
any outstanding Class of Certificates) in a manner, other than as described in
(i), or (iii) modify the consents required by the immediately preceding clauses
(i) and (ii) without the consent of the Holders of all Certificates then
outstanding. Notwithstanding any other provision of this Agreement, for purposes
of the giving or withholding of consents pursuant to this Section 11.01,
Certificates registered in the name of the Depositor or the Servicer or any
Affiliate thereof shall be entitled to Voting Rights with respect to matters
affecting such Certificates.

                  Notwithstanding any contrary provision of this Agreement,
neither the Trustee nor the NIMS Insurer shall consent to any amendment to this
Agreement unless it shall have first received an Opinion of Counsel satisfactory
to the NIMS Insurer to the effect that such amendment will not result in the
imposition of any tax on any Trust REMIC pursuant to the REMIC Provisions or
cause any Trust REMIC to fail to qualify as a REMIC at any time that any
Certificates are outstanding.

                                     -147-
<PAGE>

                  Promptly after the execution of any such amendment the Trustee
shall furnish a copy of such amendment to each Certificateholder and make
available to each Certificateholder and the NIMS Insurer.

                  It shall not be necessary for the consent of
Certificateholders under this Section 11.01 to approve the particular form of
any proposed amendment, but it shall be sufficient if such consent shall approve
the substance thereof. The manner of obtaining such consents and of evidencing
the authorization of the execution thereof by Certificateholders shall be
subject to such reasonable regulations as the Trustee may prescribe.

                  The cost of any Opinion of Counsel to be delivered pursuant to
this Section 11.01 shall be borne by the Person seeking the related amendment,
but in no event shall such Opinion of Counsel be an expense of the Trustee.

                  The Trustee may, but shall not be obligated to enter into any
amendment pursuant to this Section that affects its rights, duties and
immunities under this Agreement or otherwise.

                  SECTION 11.02. Recordation of Agreement; Counterparts.

                  To the extent permitted by applicable law, this Agreement is
subject to recordation in all appropriate public offices for real property
records in all the counties or other comparable jurisdictions in which any or
all of the properties subject to the Mortgages are situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by the Servicer at the expense of the Certificateholders, but only upon
direction of the Trustee accompanied by an Opinion of Counsel to the effect that
such recordation materially and beneficially affects the interests of the
Certificateholders.

                  For the purpose of facilitating the recordation of this
Agreement as herein provided and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall
constitute but one and the same instrument.

                  SECTION 11.03. Limitation on Rights of Certificateholders.

                  The death or incapacity of any Certificateholder shall not
operate to terminate this Agreement or the Trust, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of the
Trust Fund, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

                  No Certificateholder shall have any right to vote (except as
expressly provided for herein) or in any manner otherwise control the operation
and management of the Trust, or the obligations of the parties hereto, nor shall
anything herein set forth, or contained in the terms of any of the Certificates,
be construed so as to constitute the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholder be under
any liability to any

                                     -148-
<PAGE>

third person by reason of any action taken by the parties to this Agreement
pursuant to any provision hereof.

                  No Certificateholder shall have any right by virtue of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of default
and of the continuance thereof, as hereinbefore provided, and unless also the
Holders of Certificates entitled to at least 25% of the Voting Rights shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for 15 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and intended, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatsoever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement, except in the manner herein provided and for the equal,
ratable and common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

                  SECTION 11.04. Governing Law.

                  This Agreement shall be construed in accordance with the laws
of the State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws.

                  SECTION 11.05. Notices.

                  All directions, demands and notices hereunder shall be in
writing and shall be deemed to have been duly given when received if personally
delivered at or mailed by first class mail, postage prepaid, or by express
delivery service or delivered in any other manner specified herein, to (a) in
the case of the Depositor, 1285 Avenue of the Americas, New York, New York
10019, Attention: Glenn McIntyre (telecopy number (212) 713-2080), or such other
address or telecopy number as may hereafter be furnished to the Servicer, the
NIMS Insurer and the Trustee in writing by the Depositor, (b) in the case of the
Servicer, HomEq Servicing Corporation, 4837 Watt Avenue, North Highlands,
California 95660-5101, Attention: Portfolio Management, Facsimile No. (919)
339-6995 with a copy to HomEq Servicing Corporation, 1620 East Roseville
Parkway, Suite 210, 2nd Floor, Roseville, California 95661, Attention: Legal
Department, Facsimile No. (919) 339-6995, or such other address or telecopy
number as may hereafter be furnished to the Depositor and the Trustee in writing
by the Servicer, (c) in the case of the Trustee, 60 Livingston Avenue, St. Paul,
Minnesota 55107, Attention: Structured Finance/MASTR 2004-WMC2 (telecopy number
(651) 495- 8090), or such other address or telecopy number as may hereafter be
furnished to the Depositor, the NIMS Insurer, the Trustee and the Servicer in
writing by the Trustee, or such other address or telecopy number as may
hereafter be furnished to the Servicer, the NIMS Insurer and the Depositor

                                     -149-
<PAGE>

in writing by the Trustee and (d) in the case of the NIMS Insurer, if any, as
applicable, (i) Radian Insurance Inc., 1601 Market Street, Philadelphia,
Pennsylvania 19103, Attention: General Counsel and/or (ii) Financial Security
Assurance Inc., 350 Park Avenue, New York, New York 10022, Attn: Transaction
Oversight, or such other address or telecopy number as may hereafter be
furnished to the Servicer, the Depositor and the Trustee in writing by the NIMS
Insurer. Any notice required or permitted to be given to a Certificateholder
shall be given by first class mail, postage prepaid, at the address of such
Holder as shown in the Certificate Register. Any notice so mailed within the
time prescribed in this Agreement shall be conclusively presumed to have been
duly given when mailed, whether or not the Certificateholder receives such
notice. A copy of any notice required to be telecopied hereunder also shall be
mailed to the appropriate party in the manner set forth above.

                  SECTION 11.06. Severability of Provisions.

                  If any one or more of the covenants, agreements, provisions or
terms of this Agreement shall be for any reason whatsoever held invalid, then
such covenants, agreements, provisions or terms shall be deemed severable from
the remaining covenants, agreements, provisions or terms of this Agreement and
shall in no way affect the validity or enforceability of the other provisions of
this Agreement or of the Certificates or the rights of the Holders thereof.

                  SECTION 11.07. Notice to Rating Agencies and the NIMS Insurer.

                  The Trustee shall use its best efforts promptly to provide
notice to the Rating Agencies and the NIMS Insurer with respect to each of the
following of which it has actual knowledge:

                  1. Any material change or amendment to this Agreement;

                  2. The occurrence of any Servicer Event of Default that has
         not been cured or waived;

                  3. The resignation or termination of the Servicer or the
         Trustee;

                  4. The repurchase or substitution of Mortgage Loans pursuant
         to or as contemplated by Section 2.03;

                  5. The final payment to the Holders of any Class of
         Certificates;

                  6. Any change in the location of the Collection Account or the
         Distribution Account;

                  7. Any event that would result in the inability of the Trustee
         to make advances regarding delinquent Mortgage Loans; and

                  8. The filing of any claim under any Servicer's blanket bond
         and errors and omissions insurance policy required by Section 3.14 or
         the cancellation or material modification of coverage under any such
         instrument.

                                     -150-
<PAGE>

                  In addition, the Trustee shall promptly make available to each
Rating Agency and the NIMS Insurer copies of each report to Certificateholders
described in Section 4.02 and copies of the following:

                  1. Each annual statement as to compliance described in Section
         3.20; and

                  2. Each annual independent public accountants' servicing
         report described in Section 3.21.

                  Any such notice pursuant to this Section 11.07 shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by first class mail, postage prepaid, or by express delivery service
to Moody's Investors Service Inc., 99 Church Street, New York, New York 10004,
Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies,
Inc., 55 Water Street, New York, New York 10007 and Fitch Ratings, One State
Street Plaza, New York, New York 10004 or such other addresses as the Rating
Agencies may designate in writing to the parties hereto.

                  SECTION 11.08. Article and Section References.

                  All article and section references used in this Agreement,
unless otherwise provided, are to articles and sections in this Agreement.

                  SECTION 11.09. Grant of Security Interest.

                  It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans by the Depositor to the Trustee, be, and be
construed as, a sale of the Mortgage Loans by the Depositor and not a pledge of
the Mortgage Loans to secure a debt or other obligation of the Depositor.
However, in the event that, notwithstanding the aforementioned intent of the
parties, the Mortgage Loans are held to be property of the Depositor, then, (a)
it is the express intent of the parties that such conveyance be deemed a pledge
of the Mortgage Loans by the Depositor to the Trustee to secure a debt or other
obligation of the Depositor and (b)(1) this Agreement shall also be deemed to be
a security agreement within the meaning of Articles 8 and 9 of the Uniform
Commercial Code as in effect from time to time in the State of New York; (2) the
conveyance provided for in Section 2.01 hereof shall be deemed to be a grant by
the Depositor to the Trustee of a security interest in all of the Depositor's
right, title and interest in and to the Mortgage Loans and all amounts payable
to the holders of the Mortgage Loans in accordance with the terms thereof and
all proceeds of the conversion, voluntary or involuntary, of the foregoing into
cash, instruments, securities or other property, including without limitation
all amounts, other than investment earnings, from time to time held or invested
in the Collection Account and the Distribution Account, whether in the form of
cash, instruments, securities or other property; (3) the obligations secured by
such security agreement shall be deemed to be all of the Depositor's obligations
under this Agreement, including the obligation to provide to the
Certificateholders the benefits of this Agreement relating to the Mortgage Loans
and the Trust Fund; and (4) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, financial intermediaries, bailees or agents (as applicable) of the Trustee
for the purpose of perfecting such

                                     -151-
<PAGE>

security interest under applicable law. Accordingly, the Depositor hereby grants
to the Trustee a security interest in the Mortgage Loans and all other property
described in clause (2) of the preceding sentence, for the purpose of securing
to the Trustee the performance by the Depositor of the obligations described in
clause (3) of the preceding sentence. Notwithstanding the foregoing, the parties
hereto intend the conveyance pursuant to Section 2.01 to be a true, absolute and
unconditional sale of the Mortgage Loans and assets constituting the Trust Fund
by the Depositor to the Trustee.

                  SECTION 11.10. Third Party Rights.

                  The NIMs Insurer shall be deemed a third-party beneficiary of
this Agreement to the same extent as if it were a party hereto, and shall have
the right to enforce the provisions of this Agreement.

                                     -152-
<PAGE>

                  IN WITNESS WHEREOF, the Depositor, the Servicer and the
Trustee have caused their names to be signed hereto by their respective officers
thereunto duly authorized, in each case as of the day and year first above
written.

                                              MORTGAGE ASSET SECURITIZATION
                                              TRANSACTIONS, INC.,
                                              as Depositor

                                              By:     /s/ Glenn McIntyre
                                                    ---------------------------
                                              Name:   Glenn McIntyre
                                              Title:  Director

                                              By:     /s/ Jeffrey Lown
                                                    ---------------------------
                                              Name:   Jeffrey Lown
                                              Title:  Executive Director

                                              HOMEQ SERVICING CORPORATION
                                              as Servicer

                                              By:     /s/ Arthur Lyon
                                                    ---------------------------
                                              Name:   Arthur Lyon
                                              Title:  President

                                              U.S. BANK NATIONAL
                                              ASSOCIATION, as Trustee

                                              By:     /s/ Shannon Rantz
                                                    ---------------------------
                                              Name:   Shannon Rantz
                                              Title:  Vice President

                                     -153-
<PAGE>

STATE OF NEW YORK           )
                            ) ss.:
COUNTY OF NEW YORK          )

                  On the th day of July 2004, before me, a notary public in and
for said State, personally appeared ________________, known to me to be a
________________ of Mortgage Asset Securitization Transactions, Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

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

                                                  _____________________________
                                                          Notary Public

[Notarial Seal]

                                     -154-
<PAGE>

STATE OF ______________          )
                                 ) ss.:
COUNTY OF ____________           )

                  On the ____ day of July 2004, before me, a notary public in
and for said State, personally appeared _____________________, known to me to be
__________________ of HomEq Servicing Corporation, one of the corporations that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                                  _____________________________
                                                          Notary Public

[Notarial Seal]

                                     -155-
<PAGE>

STATE OF MINNESOTA         )
                           )ss.:
COUNTY OF RAMSEY           )

                  On the ____ day of July 2004, before me, a notary public in
and for said State, personally appeared ______________, known to me to be a
____________ of U.S. Bank National Association, one of the corporations that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                                  _____________________________
                                                          Notary Public

[Notarial Seal]

                                     -156-
<PAGE>

                                   EXHIBIT A-1

                          FORM OF CLASS A-1 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

<TABLE>
<CAPTION>

<S>                                                        <C>
Series: 2004-WMC2                                          Aggregate Certificate Principal Balance of the
                                                           Class A-1 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $212,636,000.00

Cut-off Date and date of Pooling and                       Denomination: $212,636,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L DD 5
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                      A-1-1

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-1 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-1 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class A-1 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
A-1 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-1-2

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer

                                      A-1-3

<PAGE>

and the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Depositor, the
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-1-4

<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                      A-1-6

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                      A-1-7

<PAGE>

                                   EXHIBIT A-2
                                   -----------

                          FORM OF CLASS A-2 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Certificate Principal Balance of the
                                                           Class A-2 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $111,042,000.00

Cut-off Date and date of Pooling and                       Denomination: $111,042,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L DE 3
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                      A-1-8

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-2 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-2 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-2 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class A-2 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
A-2 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-1-9

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer and the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer

                                     A-1-10

<PAGE>

or the Trustee may treat the Person in whose name this Certificate is registered
as the owner hereof for all purposes, and none of the Depositor, the Servicer,
the Trustee nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-1-11

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July ___, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                    Authorized Signatory

                                     A-1-12

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     A-1-13

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                     A-1-14

<PAGE>

                                   EXHIBIT A-3
                                   -----------

                          FORM OF CLASS A-3 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

<TABLE>
<CAPTION>

<S>                                                        <C>
Series: 2004-WMC2                                          Aggregate Certificate Principal Balance of the
                                                           Class A-3 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $89,868,000.00

Cut-off Date and date of Pooling and                       Denomination: $89,868,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L F 0
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                     A-1-15

<PAGE>

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-3 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-3 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-3 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class A-3 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class A
Certificates, or otherwise by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                                     A-1-16

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer

                                     A-1-17

<PAGE>

or the Trustee may treat the Person in whose name this Certificate is registered
as the owner hereof for all purposes, and none of the Depositor, the Servicer,
the Trustee nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-1-18

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:_________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                      Authorized Signatory

                                     A-1-19

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     A-1-20

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                     A-1-21

<PAGE>

                                   EXHIBIT A-4
                                   -----------

                          FORM OF CLASS A-4 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

<TABLE>
<CAPTION>

<S>                                                        <C>
Series: 2004-WMC2                                          Aggregate Certificate Principal Balance of the
                                                           Class A-4 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $57,284,000.00

Cut-off Date and date of Pooling and                       Denomination: $57,284,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643LD G 8
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                     A-1-22

<PAGE>

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-4 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-4 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-4 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class A-4 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class A
Certificates, or otherwise by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                                     A-1-23

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer

                                     A-1-24

<PAGE>

or the Trustee may treat the Person in whose name this Certificate is registered
as the owner hereof for all purposes, and none of the Depositor, the Servicer,
the Trustee nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-1-25

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

                                     A-1-26

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     A-1-27

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                     A-1-28

<PAGE>

                                   EXHIBIT A-5
                                   -----------

                          FORM OF CLASS M-1 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE
         CLASS A-2 CERTIFICATES, THE CLASS A-3 CERTIFICATES AND THE CLASS A-4
         CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
         AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                      A-2-1

<PAGE>

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Certificate Principal Balance of the
                                                           Class M-1 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $38,375,000.00

Cut-off Date and date of Pooling and                       Denomination: $38,375,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L DJ 2
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                      A-2-2

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-1 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-1 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-1 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-1 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-2-3

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be

                                      A-2-4

<PAGE>

made for any such registration of transfer or exchange of Certificates, but the
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-2-5

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

                                      A-2-6

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                      A-2-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                      A-2-8

<PAGE>

                                   EXHIBIT A-6
                                   -----------

                          FORM OF CLASS M-2 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE
         CLASS A-2 CERTIFICATES, THE CLASS A-3 CERTIFICATE, THE CLASS A-4
         CERTIFICATES AND THE CLASS M-1 CERTIFICATES TO THE EXTENT DESCRIBED IN
         THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                      A-3-1

<PAGE>

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Certificate Principal Balance of the
                                                           Class M-2 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $33,947,000.00

Cut-off Date and date of Pooling and                       Denomination: $33,947,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L DK 9
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                      A-3-2

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-2 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-2 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-2 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-2 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-2 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-3-3

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be

                                      A-3-4

<PAGE>

made for any such registration of transfer or exchange of Certificates, but the
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-3-5

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

                                      A-3-6

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                      A-3-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                      A-3-8

<PAGE>

                                   EXHIBIT A-7
                                   -----------

                          FORM OF CLASS M-3 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE
         CLASS A-2 CERTIFICATES, THE CLASS A-3 CERTIFICATES, THE CLASS A-4
         CERTIFICATES, THE CLASS M-1 CERTIFICATES AND THE CLASS M-2 CERTIFICATES
         TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED
         TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                      A-3-9

<PAGE>

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Certificate Principal Balance of the
                                                           Class M-3 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $10,332,000.00

Cut-off Date and date of Pooling and                       Denomination: $10,332,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L DL 7
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                     A-3-10

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-3 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-3 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-3 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-3 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-3 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-3-11

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be

                                     A-3-12

<PAGE>

made for any such registration of transfer or exchange of Certificates, but the
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-3-13

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:_________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

                                     A-3-14

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     A-3-15

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                     A-3-16

<PAGE>

                                   EXHIBIT A-8
                                   -----------

                          FORM OF CLASS M-4 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE
         CLASS A-2 CERTIFICATES, THE CLASS A-3 CERTIFICATES, THE CLASS A-4
         CERTIFICATES, THE CLASS M-1 CERTIFICATES, THE CLASS M- 2 CERTIFICATES
         AND THE CLASS M-3 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING
         AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                      A-5-1

<PAGE>

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Certificate Principal Balance of the
                                                           Class M-4 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $7,380,000.00

Cut-off Date and date of Pooling and                       Denomination: $7,380,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L DM 5
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                      A-5-2

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-4 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-4 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-4 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-4 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-4 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-5-3

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be

                                      A-5-4

<PAGE>

made for any such registration of transfer or exchange of Certificates, but the
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-5-5

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

                                      A-5-6

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                      A-5-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                      A-5-8

<PAGE>

                                   EXHIBIT A-9
                                   -----------

                          FORM OF CLASS M-5 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE
         CLASS A-2 CERTIFICATES, THE CLASS A-3 CERTIFICATES, THE CLASS A-4
         CERTIFICATES, THE CLASS M-1 CERTIFICATES, THE CLASS M- 2 CERTIFICATES,
         THE CLASS M-3 CERTIFICATES AND THE CLASS M-4 CERTIFICATES TO THE EXTENT
         DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                      A-5-9

<PAGE>

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Certificate Principal Balance of the
                                                           Class M-5 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $8,856,000.00

Cut-off Date and date of Pooling and                       Denomination: $8,856,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L DN 3
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                     A-5-10

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-5 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-5 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-5 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-5 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-5 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-5-11

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be

                                     A-5-12

<PAGE>

made for any such registration of transfer or exchange of Certificates, but the
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-5-13

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

                                     A-5-14

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     A-5-15

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                     A-5-16

<PAGE>

                                  EXHIBIT A-10
                                  ------------

                          FORM OF CLASS M-6 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE
         CLASS A-2 CERTIFICATES, THE CLASS A-3 CERTIFICATES, THE CLASS A-4
         CERTIFICATES, THE CLASS M-1 CERTIFICATES, THE CLASS M- 2 CERTIFICATES,
         THE CLASS M-3 CERTIFICATES, THE CLASS M-4 CERTIFICATES AND THE CLASS
         M-5 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
         AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                     A-5-17

<PAGE>

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Certificate Principal Balance of the
                                                           Class M-6 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $8,856,000.00

Cut-off Date and date of Pooling and                       Denomination: $8,856,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L DP 8
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                     A-5-18

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-6 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-6 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-6 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-6 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-6 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-5-19

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be

                                     A-5-20

<PAGE>

made for any such registration of transfer or exchange of Certificates, but the
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-5-21

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

                                     A-5-22

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     A-5-23

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                     A-5-24

<PAGE>

                                  EXHIBIT A-11
                                  ------------

                          FORM OF CLASS M-7 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE
         CLASS A-2 CERTIFICATES, THE CLASS A-3 CERTIFICATES, THE CLASS A-4
         CERTIFICATES, THE CLASS M-1 CERTIFICATES, THE CLASS M- 2 CERTIFICATES,
         THE CLASS M-3 CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5
         CERTIFICATES AND THE CLASS M-6 CERTIFICATES TO THE EXTENT DESCRIBED IN
         THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

                  THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
         THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
         ACT") AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
         EXCEPT TO A PERSON THAT IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
         MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN
         ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A
         TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, IN A TRANSACTION
         EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN
         WHICH THE TRANSFEREE MAKES OR IS DEEMED TO MAKE CERTAIN REPRESENTATIONS
         AND UNDERTAKINGS SET FORTH IN THE AGREEMENT AND IN ACCORDANCE WITH ANY
         APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

                                     A-5-25

<PAGE>

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Certificate Principal Balance of the
                                                           Class M-7 Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $5,904,000.00

Cut-off Date and date of Pooling and                       Denomination: $5,904,000.00
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004

                                                           CUSIP: 57643L DQ 6
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                     A-5-26

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-7 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-7 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-7 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-7 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-7 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                     A-5-27

<PAGE>

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be

                                     A-5-28

<PAGE>

made for any such registration of transfer or exchange of Certificates, but the
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-5-29

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

                                     A-5-30

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     A-5-31

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                     A-5-32

<PAGE>

                                  EXHIBIT A-12
                                  ------------

                          FORM OF CLASS CE CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A-1 CERTIFICATES, THE
         CLASS A-2 CERTIFICATES, THE CLASS A-3 CERTIFICATES, THE CLASS A-4
         CERTIFICATES, THE CLASS M-1 CERTIFICATES, THE CLASS M- 2 CERTIFICATES,
         THE CLASS M-3 CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5
         CERTIFICATES, THE CLASS M-6 CERTIFICATES AND THE CLASS M-7 CERTIFICATES
         TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED
         TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                     A-5-33

<PAGE>

<TABLE>
<CAPTION>

<S>                                                        <C>
Series 2004-WMC2                                           Aggregate Certificate Principal Balance of the
                                                           Class CE Certificates as of the Issue Date:
Pass-Through Rate: Variable                                $[____]

Cut-off Date and date of Pooling and                       Denomination: $[____]
Servicing Agreement: July 1, 2004
                                                           Servicer: HomEq Servicing Corporation
First Distribution Date: August 25, 2004
                                                           Trustee: U.S. Bank National Association
No. 1
                                                           Issue Date: July 29, 2004
Aggregate Notional Amount of the Class
CE Certificates as of the Issue Date: $[_____]

Notional Amount: $[____]
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                     A-5-34

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that UBS Securities LLC is the registered owner
of a Percentage Interest (obtained by dividing the denomination of this
Certificate by the aggregate Certificate Principal Balance of the Class CE
Certificates as of the Issue Date) in that certain beneficial ownership interest
evidenced by all the Class CE Certificates in a REMIC created pursuant to a
Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Mortgage Asset Securitization Transactions, Inc. (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer and the Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class CE Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class CE Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
CE Certificates, or otherwise by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                                     A-5-35

<PAGE>

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit F-1, and (ii) in
all other cases, an Opinion of Counsel satisfactory to it that such transfer may
be made without such registration or qualification (which Opinion of Counsel
shall not be an expense of the Trust Fund or of the Depositor, the Trustee or
the Servicer in their respective capacities as such), together with copies of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. None of the Depositor or the Trustee is obligated to
register or qualify the Class of Certificates specified on the face hereof under
the 1933 Act or any other securities law or to take any

                                     A-5-36

<PAGE>

action not otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any Holder desiring to
effect a transfer of this Certificate shall be required to indemnify the
Trustee, the Depositor and the Servicer against any liability that may result if
the transfer is not so exempt or is not made in accordance with such federal and
state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-5-37

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                    Authorized Signatory

                                     A-5-38

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                     A-5-39

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                     A-5-40

<PAGE>

                                  EXHIBIT A-13
                                  ------------

                           FORM OF CLASS P CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                      A-6-1

<PAGE>

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Certificate Principal Balance of the
                                                           Class P Certificates as of the Issue Date:
Cut-off Date and date of Pooling and                       $100.00
Servicing Agreement: July 1, 2004
                                                           Denomination: $100.00
First Distribution Date: August 25, 2004
                                                           Servicer: HomEq Servicing Corporation
No. 1
                                                           Trustee: U.S. Bank National Association

                                                           Issue Date: July 29, 2004
</TABLE>

                  DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
                  BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH
                  HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL
                  BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN
                  ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.

                                      A-6-2

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that UBS Securities LLC is the registered owner
of a Percentage Interest (obtained by dividing the denomination of this
Certificate by the aggregate Certificate Principal Balance of the Class P
Certificates as of the Issue Date) in that certain beneficial ownership interest
evidenced by all the Class P Certificates in REMIC IV created pursuant to a
Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Mortgage Asset Securitization Transactions, Inc. (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer and the Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class P Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class P Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class P
Certificates, or otherwise by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                                      A-6-3

<PAGE>

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit F-1, and (ii) in
all other cases, an Opinion of Counsel satisfactory to it that such transfer may
be made without such registration or qualification (which Opinion of Counsel
shall not be an expense of the Trust Fund or of the Depositor, the Trustee or
the Servicer in their respective capacities as such), together with copies of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. None of the Depositor or the Trustee is obligated to
register or qualify the Class of Certificates specified on the face hereof under
the 1933 Act or any other securities law or to take any

                                      A-6-4

<PAGE>

action not otherwise required under the Agreement to permit the transfer of such
Certificates without registration or qualification. Any Holder desiring to
effect a transfer of this Certificate shall be required to indemnify the
Trustee, the Depositor and the Servicer against any liability that may result if
the transfer is not so exempt or is not made in accordance with such federal and
state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-6-5

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                     Authorized Signatory

                                      A-6-6

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                      A-6-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                      A-6-8

<PAGE>

                                  EXHIBIT A-14
                                  ------------

                           FORM OF CLASS R CERTIFICATE

         THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED
         STATES PERSON.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT"
         ("REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
         AND 860D OF THE INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
         POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE
         TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
         POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
         FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
         INSTRUMENTALITY OF ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER
         THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) THAT IS EXEMPT
         FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION
         IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (3) ANY
         ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY SUCH
         PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR

                                      A-7-1

<PAGE>

         (3) SHALL HEREINAFTER BE REFERRED TO AS A "DISQUALIFIED ORGANIZATION")
         OR (4) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF
         SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND
         (II) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING
         TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING
         THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
         OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR
         AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE
         DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON
         SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
         HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS
         ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE
         HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
         PARAGRAPH AND THE PROVISIONS OF SECTION 5.02(D) OF THE POOLING AND
         SERVICING AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A
         DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL
         OWNERSHIP OF THIS CERTIFICATE.

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Percentage Interest of the Class R
                                                           Certificates as of the Issue Date: 100.00%
Cut-off Date and date of Pooling and
Servicing Agreement: July 1, 2004                          Servicer: HomEq Servicing Corporation

First Distribution Date: August 25, 2004                   Trustee: U.S. Bank National Association

No.1                                                       Issue Date: July 29, 2004
</TABLE>

                                      A-7-2

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that UBS Securities LLC is the registered owner
of a Percentage Interest (as specified above) in that certain beneficial
ownership interest evidenced by all the Certificates of the Class to which this
Certificate belongs created pursuant to a Pooling and Servicing Agreement, dated
as specified above (the "Agreement"), among Mortgage Asset Securitization
Transactions, Inc. (hereinafter called the "Depositor," which term includes any
successor entity under the Agreement), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class R Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class R Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class R
Certificates, or otherwise by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                                      A-7-3

<PAGE>

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer and the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit F-1, and (ii) in
all other cases, an Opinion of Counsel satisfactory to it that such transfer may
be made without such registration or qualification (which Opinion of Counsel
shall not be an expense of the Trust Fund or of the Depositor, the Trustee or
the Servicer in their respective capacities as such), together with copies of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. Neither the Depositor nor the Trustee is obligated to
register or qualify the Class of Certificates specified on the face hereof under
the 1933 Act or any other securities law or to take any action not otherwise
required under the Agreement to permit the transfer of such Certificates without

                                      A-7-4

<PAGE>

registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor and the
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  Prior to registration of any transfer, sale or other
disposition of this Certificate, the proposed transferee shall provide to the
Trustee (i) an affidavit to the effect that such transferee is any Person other
than a Disqualified Organization or the agent (including a broker, nominee or
middleman) of a Disqualified Organization, and (ii) a certificate that
acknowledges that (A) the Class R Certificates have been designated as a
residual interest in a REMIC, (B) it will include in its income a PRO RATA share
of the net income of the Trust Fund and that such income may be an "excess
inclusion," as defined in the Code, that, with certain exceptions, cannot be
offset by other losses or benefits from any tax exemption, and (C) it expects to
have the financial means to satisfy all of its tax obligations including those
relating to holding the Class R Certificates. Notwithstanding the registration
in the Certificate Register of any transfer, sale or other disposition of this
Certificate to a Disqualified Organization or an agent (including a broker,
nominee or middleman) of a Disqualified Organization, such registration shall be
deemed to be of no legal force or effect whatsoever and such Person shall not be
deemed to be a Certificateholder for any purpose, including, but not limited to,
the receipt of distributions in respect of this Certificate.

                  The Holder of this Certificate, by its acceptance hereof,
shall be deemed to have consented to the provisions of Section 5.02 of the
Agreement and to any amendment of the Agreement deemed necessary by counsel of
the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause the Trust
Fund to cease to qualify as a REMIC or cause the imposition of a tax upon the
REMIC.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to

                                      A-7-5

<PAGE>

be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all of the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 10% of the aggregate principal balance of the Mortgage
Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-7-6

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                    Authorized Signatory

                                      A-7-7

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                      A-7-8

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                      A-7-1

<PAGE>

                                  EXHIBIT A-15
                                  ------------

                          FORM OF CLASS R-X CERTIFICATE

         THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED
         STATES PERSON.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT"
         ("REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
         AND 860D OF THE INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
         POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE
         TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
         POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
         FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
         INSTRUMENTALITY OF ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER
         THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) THAT IS EXEMPT
         FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION
         IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (3) ANY
         ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY SUCH
         PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR

                                      A-7-1

<PAGE>

         (3) SHALL HEREINAFTER BE REFERRED TO AS A "DISQUALIFIED ORGANIZATION")
         OR (4) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF
         SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND
         (II) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING
         TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING
         THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
         OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR
         AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE
         DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON
         SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
         HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS
         ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE
         HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
         PARAGRAPH AND THE PROVISIONS OF SECTION 5.02(D) OF THE POOLING AND
         SERVICING AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A
         DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL
         OWNERSHIP OF THIS CERTIFICATE.

<TABLE>
<CAPTION>

<S>                                                        <C>
Series:  2004-WMC2                                         Aggregate Percentage Interest of the Class R-
                                                           X Certificates as of the Issue Date: 100.00%
Cut-off Date and date of Pooling and
Servicing Agreement: July 1, 2004                          Servicer: HomEq Servicing Corporation

First Distribution Date: August 25, 2004                   Trustee: U.S. Bank National Association

No.1                                                       Issue Date: July 29, 2004
</TABLE>

                                      A-7-2

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that UBS Securities LLC is the registered owner
of a Percentage Interest (as specified above) in that certain beneficial
ownership interest evidenced by all the Certificates of the Class to which this
Certificate belongs created pursuant to a Pooling and Servicing Agreement, dated
as specified above (the "Agreement"), among Mortgage Asset Securitization
Transactions, Inc. (hereinafter called the "Depositor," which term includes any
successor entity under the Agreement), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class R-X Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class R-X Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
R-X Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and only upon presentation and surrender of this Certificate
at the office or agency appointed by the Trustee for that purpose as provided in
the Agreement.

                                      A-7-3

<PAGE>

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer and the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit F-1, and (ii) in
all other cases, an Opinion of Counsel satisfactory to it that such transfer may
be made without such registration or qualification (which Opinion of Counsel
shall not be an expense of the Trust Fund or of the Depositor, the Trustee or
the Servicer in their respective capacities as such), together with copies of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. Neither the Depositor nor the Trustee is obligated to
register or qualify the Class of Certificates specified on the face hereof under
the 1933 Act or any other securities law or to take any action not otherwise
required under the Agreement to permit the transfer of such Certificates without

                                      A-7-4

<PAGE>

registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor and the
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  Prior to registration of any transfer, sale or other
disposition of this Certificate, the proposed transferee shall provide to the
Trustee (i) an affidavit to the effect that such transferee is any Person other
than a Disqualified Organization or the agent (including a broker, nominee or
middleman) of a Disqualified Organization, and (ii) a certificate that
acknowledges that (A) the Class R-X Certificates have been designated as a
residual interest in a REMIC, (B) it will include in its income a PRO RATA share
of the net income of the Trust Fund and that such income may be an "excess
inclusion," as defined in the Code, that, with certain exceptions, cannot be
offset by other losses or benefits from any tax exemption, and (C) it expects to
have the financial means to satisfy all of its tax obligations including those
relating to holding the Class R-X Certificates. Notwithstanding the registration
in the Certificate Register of any transfer, sale or other disposition of this
Certificate to a Disqualified Organization or an agent (including a broker,
nominee or middleman) of a Disqualified Organization, such registration shall be
deemed to be of no legal force or effect whatsoever and such Person shall not be
deemed to be a Certificateholder for any purpose, including, but not limited to,
the receipt of distributions in respect of this Certificate.

                  The Holder of this Certificate, by its acceptance hereof,
shall be deemed to have consented to the provisions of Section 5.02 of the
Agreement and to any amendment of the Agreement deemed necessary by counsel of
the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause the Trust
Fund to cease to qualify as a REMIC or cause the imposition of a tax upon the
REMIC.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to

                                      A-7-5

<PAGE>

be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all of the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 10% of the aggregate principal balance of the Mortgage
Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-7-6

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: July __, 2004

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            not in its individual capacity, but
                                            solely as Trustee for the MASTR
                                            Asset Backed Securities Trust
                                            2004-WMC2

                                            By:________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:________________________________
                                                   Authorized Signatory

                                      A-7-7

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------

TEN ENT - as tenants by the entireties              (Cust) (Minor) under
                                                    Uniform Gifts
JT TEN - as joint tenants with right                to Minors Act
         if survivorship and not as                 _______________
          tenants in common                            (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass- Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
_______________________________________________________________________________
______________________________________________________________________________.

Dated: _________________

                                         _____________________________________
                                         Signature by or on behalf of assignor

                                         _____________________________________
                                         Signature Guaranteed

                                      A-7-8

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to
_______________________________________________________________________________
_______________________________________________________________ for the account
of _______________________________, account number ___________________________,
or, if mailed by check, to_____________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to______________________________________
_______________________________________________________________________________
__________________________________________.This information is provided by
___________________________________________, the assignee named above, or
________________________________________, as its agent.

                                      A-7-1

<PAGE>

                                    EXHIBIT B
                                    ---------

                                   [Reserved]

                                       B-1

<PAGE>

                                   EXHIBIT C-1
                                   -----------

                     FORM OF TRUSTEE'S INITIAL CERTIFICATION

                                                           [Date]

<TABLE>
<CAPTION>

<S>                                                            <C>
Mortgage Asset Securitization Transactions, Inc.               U.S. Bank National Association,
1285 Avenue of the Americas                                    60 Livingston Street
New York, New York 10019                                       St. Paul, Minnesota 55107

HomEq Servicing Corporation
4837 Watt Avenue
North Highlands, California 95660
</TABLE>

         Re:      Pooling and Servicing Agreement, dated as of July1, 2004,
                  among Mortgage Asset Securitization Transactions, Inc., HomEq
                  Servicing Corporation and U.S. Bank National Association,
                  Mortgage Pass-Through Certificates, Series 2004-WMC2
                  ----------------------------------------------------------

Ladies and Gentlemen:

         Attached is the Trustee's preliminary exception report delivered in
accordance with Section 2.02 of the referenced Pooling and Servicing Agreement
(the "Pooling and Servicing Agreement"). Capitalized terms used but not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in the Mortgage File pertaining to the Mortgage Loans
identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan or (iii) whether any
Mortgage File included any of the documents specified in clause (vi) of Section
2.01 of the Pooling and Servicing Agreement.

                                      C-1-1

<PAGE>

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Pooling and Servicing Agreement.
This Certificate is qualified in all respects by the terms of said Pooling and
Servicing Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION

                                            By:________________________________
                                            Name:
                                            Title:

                                      C-1-2

<PAGE>

                                   EXHIBIT C-2
                                   -----------

                      FORM OF TRUSTEE'S FINAL CERTIFICATION

                                                          [Date]

<TABLE>
<CAPTION>

<S>                                                            <C>
Mortgage Asset Securitization Transactions, Inc.               U.S. Bank National Association,
1285 Avenue of the Americas                                    60 Livingston Street
New York, New York 10019                                       St. Paul, Minnesota 55107

HomEq Servicing Corporation
4837 Watt Avenue
North Highlands, California 95660
</TABLE>

         Re:      Pooling and Servicing Agreement, dated as of July 1, 2004,
                  among Mortgage Asset Securitization Transactions, Inc., HomEq
                  Servicing Corporation and U.S. Bank National Association,
                  Mortgage Pass-Through Certificates, Series 2004-WMC2
                  ----------------------------------------------------

Ladies and Gentlemen:

         In accordance with Section 2.02 of the Pooling and Servicing Agreement,
the undersigned, as Trustee, hereby certifies that as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage loan paid in full
or listed on Schedule I hereto) it (or its custodian) has received the
applicable documents listed in Section 2.01 of the Pooling and Servicing
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents listed above and has determined
that each such document appears to be complete and, based on an examination of
such documents, the information set forth in the Mortgage Loan Schedule is
correct.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in the Mortgage File pertaining to the Mortgage Loans
identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan or (iii) whether any
Mortgage File included any of the documents specified in clause (vi) of Section
2.01 of the Pooling and Servicing Agreement.

                                      C-2-1

<PAGE>

                  Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Pooling and Servicing Agreement.
This Certificate is qualified in all respects by the terms of said Pooling and
Servicing Agreement.

                                           U.S. BANK NATIONAL ASSOCIATION

                                           By:________________________________
                                           Name:
                                           Title:

                                      C-2-2

<PAGE>

                                   EXHIBIT C-3

                        FORM OF RECEIPT OF MORTGAGE NOTE

<TABLE>
<CAPTION>

<S>                                                           <C>
Mortgage Asset Securitization Transactions, Inc.              U.S. Bank National Association,
1285 Avenue of the Americas                                   60 Livingston Street
New York, New York 10019                                      St. Paul, Minnesota 55107

HomEq Servicing Corporation
4837 Watt Avenue
North Highlands, California 95660
</TABLE>

         Re:      Pooling and Servicing Agreement, dated as of July 1, 2004,
                  among Mortgage Asset Securitization Transactions, Inc., HomEq
                  Servicing Corporation and U.S. Bank National Association,
                  Mortgage Pass-Through Certificates, Series 2004-WMC2
                  ----------------------------------------------------

Ladies and Gentlemen:

         Pursuant to Section 2.01 of the Pooling and Servicing Agreement, dated
as of July 1, 2004, among Mortgage Asset Securitization Transactions, Inc. as
Depositor, HomEq Servicing Corporation as Servicer (the "Servicer") and U.S.
Bank National Association. as Trustee, we hereby acknowledge the receipt of the
original Mortgage Notes (a copy of which is attached hereto as Exhibit 1) with
any exceptions thereto listed on Exhibit 2.

                                   U.S. BANK NATIONAL ASSOCIATION, as Trustee

                                   By:_____________________________________
                                   Name:
                                   Title:

                                      C-2-3

<PAGE>

                                    EXHIBIT D
                                    ---------

                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

                                       D-1

<PAGE>

                        MORTGAGE LOAN PURCHASE AGREEMENT

                  This is a Mortgage Loan Purchase Agreement (this "Agreement"),
dated July 27, 2004, among UBS Real Estate Securities Inc., a Delaware
corporation (the "Seller"), Mortgage Asset Securitization Transactions, Inc., a
Delaware corporation (the "Purchaser") and WMC Mortgage Corp., a California
corporation (the "Originator").

                              PRELIMINARY STATEMENT

                  The Seller intends to sell the Mortgage Loans (as hereinafter
identified) and the Cap Contracts to the Purchaser on the terms and subject to
the conditions set forth in this Agreement. The Purchaser intends to deposit the
Mortgage Loans into a mortgage pool comprising the Trust Fund. The Trust Fund
will be evidenced by a single series of mortgage pass-through certificates
designated as Series 2004-WMC2 (the "Certificates"). The Certificates will
consist of fifteen classes of certificates. The Certificates will be issued
pursuant to a Pooling and Servicing Agreement for Series 2004-WMC2, dated as of
July 1, 2004 (the "Pooling and Servicing Agreement"), among the Depositor as
depositor, HomEq Servicing Corporation servicer (the "Servicer") and U.S. Bank
National Association as trustee (the "Trustee"). Capitalized terms used but not
defined herein shall have the meanings set forth in the Pooling and Servicing
Agreement.

                  The parties hereto agree as follows:

                  SECTION 1. AGREEMENT TO PURCHASE. The Seller agrees to sell
and the Purchaser agrees to purchase, on or before July 29, 2004 (the "Closing
Date"), certain fixed-rate and adjustable-rate conventional, one- to
four-family, residential mortgage loans (the "Mortgage Loans"), having an
aggregate principal balance as of the close of business on July 1, 2004, (the
"Cut-off Date") of approximately $590,382041.64 (the "Closing Balance"), after
giving effect to all payments due on the Mortgage Loans on or before the Cut-off
Date, whether or not received including the right to any Prepayment Charges
payable by the related Mortgagors in connection with any Principal Prepayments
on the Mortgage Loans.

                  SECTION 2. MORTGAGE LOAN SCHEDULE. The Purchaser and the
Seller have agreed upon which of the mortgage loans owned by the Seller are to
be purchased by the Purchaser pursuant to this Agreement and the Seller will
prepare or cause to be prepared on or prior to the Closing Date a final schedule
(the "Closing Schedule") that shall describe such Mortgage Loans and set forth
all of the Mortgage Loans to be purchased under this Agreement, including the
Prepayment Charges. The Closing Schedule will conform to the requirements set
forth in this Agreement and to the definitions of "Mortgage Loan Schedule" and
"Prepayment Charge Schedule" under the Pooling and Servicing Agreement, it being
understood that for purposes of this Agreement, "Mortgage Loan Schedule" shall
refer to the schedule delivered by the Originator to the Seller. The Closing
Schedule shall be used as the Mortgage Loan Schedule and Prepayment Charge
Schedule under the Pooling and Servicing Agreement.

<PAGE>

                  SECTION 3. CONSIDERATION.

                  (a) In consideration for the Mortgage Loans to be purchased
hereunder, the Purchaser shall, as described in Section 8, pay to or upon the
order of the Seller in immediately available funds an amount (the "Mortgage Loan
Purchase Price") equal to the net sale proceeds of the Certificates.

                  (b) The Purchaser or any assignee, transferee or designee of
the Purchaser shall be entitled to all scheduled payments of principal due after
the Cut-off Date, all other payments of principal due and collected after the
Cut-off Date, and all payments of interest on the Mortgage Loans allocable to
the period after the Cut-off Date. All scheduled payments of principal and
interest due on or before the Cut-off Date and collected after the Cut-off Date
shall belong to the Seller.

                  (c) Pursuant to the Pooling and Servicing Agreement, the
Purchaser will assign all of its right, title and interest in and to the
Mortgage Loans, together with its rights under this Agreement, to the Trustee
for the benefit of the Certificateholders.

                  SECTION 4. TRANSFER OF THE MORTGAGE LOANS.

                  (a) POSSESSION OF MORTGAGE FILES. The Seller does hereby sell,
transfer, assign, set over and convey to the Purchaser, without recourse but
subject to the terms of this Agreement, all of its right, title and interest in,
to and under the Mortgage Loans, including the related Prepayment Charges. The
contents of each Mortgage File not delivered to the Purchaser or to any
assignee, transferee or designee of the Purchaser on or prior to the Closing
Date are and shall be held in trust by the Seller for the benefit of the
Purchaser or any assignee, transferee or designee of the Purchaser. Upon the
sale of the Mortgage Loans, the ownership of each Mortgage Note, the related
Mortgage and the other contents of the related Mortgage File is vested in the
Purchaser and the ownership of all records and documents with respect to the
related Mortgage Loan prepared by or that come into the possession of the Seller
on or after the Closing Date shall immediately vest in the Purchaser and shall
be delivered immediately to the Purchaser or as otherwise directed by the
Purchaser.

                  (b) DELIVERY OF MORTGAGE LOAN DOCUMENTS. The Seller will, on
or prior to the Closing Date, deliver or cause to be delivered to the Purchaser
or any assignee, transferee or designee of the Purchaser each of the following
documents for each Mortgage Loan:

                  (i) the original Mortgage Note, endorsed in blank or in the
         following form: "Pay to the order of U.S. Bank National Association, as
         Trustee under the applicable agreement, without recourse," with all
         prior and intervening endorsements showing a complete chain of
         endorsement from the Originator to the Person so endorsing to the
         Trustee;

                  (ii) the original Mortgage, noting the presence of the MIN of
         the Mortgage Loan and language indicating that the Mortgage Loan is a
         MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of recording
         thereon, and the original recorded power of attorney, if the Mortgage
         was executed pursuant to a power of attorney, with evidence of
         recording thereon;

                                       -2-

<PAGE>

                  (iii) unless the Mortgage Loan is registered on the MERS(R)
         System, an original Assignment in blank;

                  (iv) the original recorded Assignment or Assignments showing a
         complete chain of assignment from the originator to the Person
         assigning the Mortgage to the Trustee as contemplated by the
         immediately preceding clause (iii);

                  (v) the original or copies of each assumption, modification,
         written assurance or substitution agreement, if any; and

                  (vi) the original lender's title insurance policy, together
         with all endorsements or riders that were issued with or subsequent to
         the issuance of such policy, insuring the priority of the Mortgage as a
         first lien on the Mortgaged Property represented therein as a fee
         interest vested in the Mortgagor, or in the event such original title
         policy is unavailable, a written commitment or uniform binder or
         preliminary report of title issued by the title insurance or escrow
         company.

                  With respect to a maximum of approximately 2.0% of the
Mortgage Loans, by outstanding principal balance of the Mortgage Loans as of the
Cut-off Date, if any original Mortgage Note referred to in Section 4(b)(i) above
cannot be located, the obligations of the Seller to deliver such documents shall
be deemed to be satisfied upon delivery to the Purchaser of a photocopy of such
Mortgage Note, if available, with a lost note affidavit substantially in the
form of Exhibit I to the Pooling and Servicing Agreement. If any of the original
Mortgage Notes for which a lost note affidavit was delivered to the Purchaser is
subsequently located, such original Mortgage Note shall be delivered to the
Purchaser within three Business Days.

                  Except with respect to any Mortgage Loan for which MERS is
identified on the Mortgage or on a properly recorded assignment of the Mortgage
as the mortgagee of record, the Originator promptly shall (within sixty Business
Days following the later of the Closing Date and the date of receipt by the
Originator of the recording information for a Mortgage, but in no event later
than ninety days following the Closing Date) submit or cause to be submitted for
recording, at no expense to the Purchaser, in the appropriate public office for
real property records, each Assignment referred to in Section 4(b)(iii) and (iv)
above and in connection therewith, the Originator shall execute each original
Assignment in the following form: "U.S. Bank National Association, as Trustee
under the applicable agreement." In the event that any such Assignment is lost
or returned unrecorded because of a defect therein, the Originator shall
promptly prepare or cause to be prepared a substitute Assignment or cure or
cause to be cured such defect, as the case may be, and thereafter cause each
such Assignment to be duly recorded. Notwithstanding the foregoing, to the
extent that the Originator has performed the duties with the respect to any
Mortgage Loan referenced in this paragraph in connection with the transfer of
such Mortgage Loan to the Seller, references to the Originator in this paragraph
shall be deemed to be references to the Seller.

                  In connection with the assignment of any Mortgage Loan
registered on the MERS(R) System, the Seller agrees that it will cause, within
30 Business Days after the Closing Date, the MERS(R) System to indicate that
such Mortgage Loans have been assigned by the Purchaser to the Trustee in
accordance with the Pooling and Servicing Agreement for the benefit of the

                                       -3-

<PAGE>

Certificateholders by including in such computer files (a) the code in the field
which identifies the specific Trustee and (b) the code in the field "Pool Field"
which identifies the series of the Certificates issued in connection with such
Mortgage Loans.

                  If any of the documents referred to in Sections 4(b)(ii),
(iii) or (iv) above has, as of the Closing Date, been submitted for recording
but either (x) has not been returned from the applicable public recording office
or (y) has been lost or such public recording office has retained the original
of such document, the obligations of the Seller to deliver such documents shall
be deemed to be satisfied upon (1) delivery to the Purchaser of a copy of each
such document certified by the Originator in the case of (x) above or the
applicable public recording office in the case of (y) above to be a true and
complete copy of the original that was submitted for recording and (2) if such
copy is certified by the Originator, delivery to the Purchaser promptly upon
receipt thereof of either the original or a copy of such document certified by
the applicable public recording office to be a true and complete copy of the
original. The Originator shall provide notice to the Seller and the Seller shall
provide such notice to the Trustee and the Rating Agencies if delivery pursuant
to clause (2) above will be made more than 180 days after the Closing Date.

                  If the original lender's title insurance policy was not
delivered pursuant to Section 4(b)(vi) above, the Seller shall deliver or cause
to be delivered to the Purchaser, promptly after receipt thereof, the original
lender's title insurance policy. The Seller shall deliver or cause to be
delivered to the Purchaser promptly upon receipt thereof any other original
documents constituting a part of a Mortgage File received with respect to any
Mortgage Loan, including, but not limited to, any original documents evidencing
an assumption or modification of any Mortgage Loan.

                  Each original document relating to a Mortgage Loan which is
not delivered to the Purchaser or its assignee, transferee or designee, if held
by the Seller, shall be so held for the benefit of the Purchaser, its assignee,
transferee or designee.

                  (c) ACCEPTANCE OF MORTGAGE LOANS. The documents delivered
pursuant to Section 4(b) hereof shall be reviewed by the Purchaser or any
assignee, transferee or designee of the Purchaser at any time before or after
the Closing Date (and with respect to each document permitted to be delivered
after the Closing Date, within seven days of its delivery) to ascertain that all
required documents have been executed and received and that such documents
relate to the Mortgage Loans identified on the Mortgage Loan Schedule.

                  (d) TRANSFER OF INTEREST IN AGREEMENTS. The Purchaser has the
right to assign its interest under this Agreement, in whole or in part, to the
Trustee, as may be required to effect the purposes of the Pooling and Servicing
Agreement, without the consent of the Seller, and the assignee shall succeed to
the rights and obligations hereunder of the Purchaser. Any expense reasonably
incurred by or on behalf of the Purchaser or the Trustee in connection with
enforcing any obligations of the Seller under this Agreement will be promptly
reimbursed by the Seller.

                  (e) EXAMINATION OF MORTGAGE FILES. Prior to the Closing Date,
the Seller shall either (i) deliver in escrow to the Purchaser, or to any
assignee, transferee or designee of the Purchaser for examination, the Mortgage
File pertaining to each Mortgage Loan or (ii) make such Mortgage Files available
to the Purchaser or to any assignee, transferee or designee of the Purchaser

                                      -4-
<PAGE>

for examination. Such examination may be made by the Purchaser or the Trustee,
and their respective designees, upon reasonable notice to the Seller during
normal business hours before the Closing Date and within 60 days after the
Closing Date. If any such person makes such examination prior to the Closing
Date and identifies any Mortgage Loans that do not conform to the requirements
of the Purchaser as described in this Agreement, such Mortgage Loans shall be
deleted from the Closing Schedule. The Purchaser may, at its option and without
notice to the Seller, purchase all or part of the Mortgage Loans without
conducting any partial or complete examination. The fact that the Purchaser or
any person has conducted or has failed to conduct any partial or complete
examination of the Mortgage Files shall not affect the rights of the Purchaser
or any assignee, transferee or designee of the Purchaser to demand repurchase or
other relief as provided herein or under the Pooling and Servicing Agreement.

                  SECTION 5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
                             SELLER AND THE ORIGINATOR.

                  (a) The Seller hereby represents and warrants to the
Originator and the Purchaser, as of the date hereof and as of the Closing Date,
and covenants, that:

                  (i) The Seller is duly organized, validly existing and in good
standing as a corporation under the laws of the State of Delaware with full
corporate power and authority to conduct its business as presently conducted by
it to the extent material to the consummation of the transactions contemplated
herein. The Seller has the full corporate power and authority to own the
Mortgage Loans and to transfer and convey the Mortgage Loans to the Purchaser
and has the full corporate power and authority to execute and deliver, engage in
the transactions contemplated by, and perform and observe the terms and
conditions of this Agreement.

                  (ii) The Seller has duly authorized the execution, delivery
and performance of this Agreement, has duly executed and delivered this
Agreement, and this Agreement, assuming due authorization, execution and
delivery by the Originator and the Purchaser, constitutes a legal, valid and
binding obligation of the Seller, enforceable against it in accordance with its
terms except as the enforceability thereof may be limited by bankruptcy,
insolvency or reorganization or by general principles of equity.

                  (iii) The execution, delivery and performance of this
Agreement by the Seller (x) does not conflict and will not conflict with, does
not breach and will not result in a breach of and does not constitute and will
not constitute a default (or an event, which with notice or lapse of time or
both, would constitute a default) under (A) any terms or provisions of the
articles of incorporation or by-laws of the Seller, (B) any term or provision of
any material agreement, contract, instrument or indenture, to which the Seller
is a party or by which the Seller or any of its property is bound or (C) any
law, rule, regulation, order, judgment, writ, injunction or decree of any court
or governmental authority having jurisdiction over the Seller or any of its
property and (y) does not create or impose and will not result in the creation
or imposition of any lien, charge or encumbrance which would have a material
adverse effect upon the Mortgage Loans or any documents or instruments
evidencing or securing the Mortgage Loans.

                                      -5-
<PAGE>

                  (iv) No consent, approval, authorization or order of,
registration or filing with, or notice on behalf of the Seller to any
governmental authority or court is required, under federal laws or the laws of
the State of Delaware, for the execution, delivery and performance by the Seller
of, or compliance by the Seller with, this Agreement or the consummation by the
Seller of any other transaction contemplated hereby and by the Pooling and
Servicing Agreement; provided, however, that the Seller makes no representation
or warranty regarding federal or state securities laws in connection with the
sale or distribution of the Certificates.

                  (v) This Agreement does not contain any untrue statement of
material fact or omit to state a material fact necessary to make the statements
contained herein not misleading. The written statements, reports and other
documents prepared and furnished or to be prepared and furnished by the Seller
pursuant to this Agreement or in connection with the transactions contemplated
hereby taken in the aggregate do not contain any untrue statement of material
fact or omit to state a material fact necessary to make the statements contained
therein not misleading.

                  (vi) The Seller is not in violation of, and the execution and
delivery of this Agreement by the Seller and its performance and compliance with
the terms of this Agreement will not constitute a violation with respect to, any
order or decree of any court or any order or regulation of any federal, state,
municipal or governmental agency having jurisdiction over the Seller or its
assets, which violation might have consequences that would materially and
adversely affect the condition (financial or otherwise) or the operation of the
Seller or its assets or might have consequences that would materially and
adversely affect the performance of its obligations and duties hereunder.

                  (vii) The Seller does not believe, nor does it have any reason
or cause to believe, that it cannot perform each and every covenant contained in
this Agreement.

                  (viii) Immediately prior to the sale of the Mortgage Loans to
the Purchaser as herein contemplated, the Seller will be the owner of the
related Mortgage and the indebtedness evidenced by the related Mortgage Note,
and, upon the payment to the Seller of the Mortgage Loan Purchase Price, the
Purchaser shall have good and marketable title to each Mortgage Loan, each
related Mortgage Note and the related Mortgage Files with respect thereto free
and clear of all liens, pledges, charges, claims security interests,
participations and other encumbrances.

                  (ix) There are no actions or proceedings against, or
investigations known to it of, the Seller before any court, administrative or
other tribunal (A) that might prohibit its entering into this Agreement, (B)
seeking to prevent the sale of the Mortgage Loans by the Seller or the
consummation of the transactions contemplated by this Agreement or (C) that
might prohibit or materially and adversely affect the performance by the Seller
of its obligations under, or validity or enforceability of, this Agreement.

                  (x) The consummation of the transactions contemplated by this
Agreement are in the ordinary course of business of the Seller, and the
transfer, assignment and conveyance of the Mortgage Notes and the Mortgages by
the Seller are not subject to the bulk transfer or any similar statutory
provisions.

                                      -6-
<PAGE>

                  (xi) The Seller has not dealt with any broker, investment
banker, agent or other person, except for the Purchaser or any of its
affiliates, that may be entitled to any commission or compensation in connection
with the sale of the Mortgage Loans (except that an entity that previously
financed the Seller's ownership of the Mortgage Loans may be entitled to a fee
to release its security interest in the Mortgage Loans, which fee shall have
been paid and which security interest shall have been released on or prior to
the Closing Date).

                  (xii) There is no litigation currently pending or, to the best
of the Seller's knowledge without independent investigation, threatened against
the Seller that would reasonably be expected to adversely affect the transfer of
the Mortgage Loans, the issuance of the Certificates or the execution, delivery,
performance or enforceability of this Agreement, or that would result in a
material adverse change in the financial condition of the Seller.

                  (xiii) As of the Closing Date, the Seller has no knowledge of
any circumstances or condition with respect to the Mortgaged Property, the
Mortgagor, the Mortgagor's credit standing or the Mortgage that can reasonably
be expected to cause the Mortgage Loan to be an unacceptable investment, cause
the Mortgage Loan to become delinquent, or adversely affect the value of the
Mortgage Loan.

                  (xiv) As of the Closing Date, the Mortgaged Property is
lawfully occupied under applicable law; all inspections, licenses and
certificates required to be made or issued with respect to all occupied portions
of the Mortgaged Property and, with respect to the use and occupancy of the
same, including but not limited to certificates of occupancy, have been made or
obtained from the appropriate authorities.

                  (xv) As of the Closing Date, the Mortgaged Property is in
compliance with all applicable environmental laws pertaining to environmental
hazards including, without limitation, asbestos, and neither the Originator nor
any related seller of the Mortgage Loan nor, to the Originator's knowledge and
the knowledge of any related seller of the Mortgage Loan, the related Mortgagor,
has received any notice of any violation or potential violation of such law.

                  (xvi) As of the Closing Date, there are no delinquent taxes,
ground rents, water charges, sewer rents, assessments, insurance premiums,
leasehold payments, including assessments payable in future installments or
other outstanding charges affecting the related Mortgaged Property.

                  (xvii) Each Mortgage Loan at the time it was made complied in
all material respects with applicable local, state, and federal laws, including,
but not limited to, all applicable predatory and abusive lending laws.

                  (xviii) None of the mortgage loans are (i) "High Cost" as such
term is defined in HOEPA or (ii) a reasonably equivalent provision as defined by
the applicable predatory and abusive lending laws.

                  (xix) To the best of the Seller's knowledge, with respect to
the Originator's representations and warranties set forth in Section 6 (d), (e),
(f), (g), (i), (j), (n), (o), (r), (z), (aa), (ff)

                                      -7-
<PAGE>

and (hh) nothing has occurred since the Servicing Transfer Date which would
cause such representation and warranty to be untrue in any material respect as
of the Closing Date.

                  (xx) No Mortgage Loan is a high cost loan or a covered loan,
as applicable (as such terms are defined in Standard & Poor's LEVELS Version 5.6
Glossary Revised, Appendix E);

                  (xxi) No Mortgage Loan originated on or after October 1, 2002
and before March 7, 2003 is secured by a Mortgaged Property located in the State
of Georgia; and no Mortgage Loan originated on or after March 7, 2003 is a "high
cost home loan" as defined under the Georgia Fair Lending Act;

         (b) The Originator hereby represents and warrants to the Seller and the
Purchaser, as of the date hereof and as of the Closing Date, and covenants,
that:

                  (i) The Originator is a corporation duly organized and validly
existing under the laws of California. The Originator has all licenses necessary
to carry out its business as now being conducted, and is licensed and qualified
to transact business in and is in good standing under the laws of each state in
which any Mortgaged Property is located or is otherwise exempt under applicable
law from such licensing or qualification or is otherwise not required under
applicable law to effect such licensing or qualification and no demand for such
licensing or qualification has been made upon the Originator by any such state,
and in any event the Originator is in compliance with the laws of any such state
to the extent necessary to ensure the enforceability of each Mortgage Loan. No
licenses or approvals obtained by the Originator have been suspended or revoked
by any court, administrative agency, arbitrator or governmental body and no
proceedings are pending which might result in such suspension or revocation,
which is reasonably likely to have a material adverse effect on any Mortgage
Loan (including the Seller's interest therein) or is reasonable likely to have a
material adverse effect on the transactions contemplated by this Agreement;

                  (ii) The Originator has the full power and authority and legal
right to execute, deliver and perform, and to enter into and consummate all
transactions contemplated by this Agreement and to conduct its business as
presently conducted; the Originator has duly authorized the execution, delivery
and performance of this Agreement and any agreements contemplated hereby, has
duly executed and delivered this Agreement, and any agreements contemplated
hereby, and this Agreement and each Assignment of Mortgage to the Seller and any
agreements contemplated hereby, constitute the legal, valid and binding
obligations of the Originator, enforceable against it in accordance with their
respective terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium, reorganization and similar laws, and by equitable
principles affecting the enforceability of the rights of creditors; and all
requisite corporate action has been taken by the Originator to make this
Agreement and all agreements contemplated hereby valid and binding upon the
Originator in accordance with their terms;

                  (iii) Neither the execution and delivery of this Agreement,
the sale of the Mortgage Loans to the Seller, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions of this Agreement has conflicted with or will conflict with
any of the terms, conditions or provisions of the Originator's charter or by
laws or materially conflict with or result in a material breach of any of the
terms, conditions or provisions of any legal

                                      -8-
<PAGE>

restriction or any agreement or instrument to which the Originator is now a
party or by which it is bound, or constitute a default or result in an
acceleration under any of the foregoing, or result in the material violation of
any law, rule, regulation, order, judgment or decree to which the Originator or
its property is subject;

                  (iv) There is no litigation, suit, proceeding or investigation
pending or, to the Originator's knowledge threatened, or any order or decree
outstanding, which is reasonably likely to have a material adverse effect on the
sale of the Mortgage Loans, the execution, delivery, performance or
enforceability of this Agreement, or which is reasonably likely to have a
material adverse effect on the financial condition of the Originator;

                  (v) No consent, approval, authorization or order of any court
or governmental agency or body is required for the execution, delivery and
performance by the Originator of or compliance by the Originator with this
Agreement, except for consents, approvals, authorizations and orders which have
been obtained;

                  (vi) The consummation of the transactions contemplated by this
Agreement are in the ordinary course of business of the Originator, and the
transfer, assignment and conveyance of the Mortgage Notes and the Mortgages by
the Originator pursuant to this Agreement are not subject to bulk transfer or
any similar statutory provisions in effect in any applicable jurisdiction;

                  (vii) The origination, servicing and collection practices with
respect to each Mortgage Note and Mortgage have been legal and in accordance
with applicable laws and regulations, and in all material respects in accordance
with Accepted Servicing Practices. The Originator further represents and
warrants that no escrow payments are required under the related Mortgage Loan
and no such payments are in the possession of, or under the control of, the
Originator or its delegate; no escrow deposits or other charges or payments due
under the Mortgage Note have been capitalized under any Mortgage or the related
Mortgage Note; all Mortgage Interest Rate adjustments have been made in strict
compliance with state and federal law and the terms of the related Mortgage
Note; and any interest required to be paid pursuant to state and local law has
been properly paid and credited;

                  (viii) The Originator has not used selection procedures that
identified the Mortgage Loans as being less desirable or valuable than other
comparable mortgage loans in the Originator's portfolio at the related Closing
Date;

                  (ix) [Reserved];

                  (x) The Originator is an approved seller of residential
mortgage loans for Fannie Mae or Freddie Mac and HUD. The Originator is duly
qualified, licensed, registered and otherwise authorized under all applicable
federal, state and local laws and regulations and is in good standing to sell
mortgage loans for Fannie Mae or Freddie Mac and no event has occurred which
would make the Originator unable to comply with eligibility requirements or
which would require notification to either Fannie Mae or Freddie Mac;

                                      -9-
<PAGE>

                  (xi) The Originator does not believe, nor does it have any
cause or reason to believe, that it cannot perform each and every covenant
contained in this Agreement applicable to it;

                  (xii) [Reserved];

                  (xiii) [Reserved];

                  (xiv) [Reserved];

                  (xv) The Originator has not dealt with any broker, investment
banker, agent or other person that may be entitled to any commission or
compensation in connection with the sale of the Mortgage Loans to the Seller;
and

                  (xvi) The Originator is a member of MERS in good standing, and
will comply in all material respects with the rules and procedures of MERS in
performing its obligations under the Agreement.

                  SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE ORIGINATOR
                             RELATING TO THE MORTGAGE LOANS.

                  The Originator hereby represents and warrants to the Purchaser
that as to each Mortgage Loan as of the Closing Date or the date on which the
Originator transferred the servicing for such Mortgage Loan (the "Servicing
Transfer Date") as noted below:

                  (a) The information set forth in the Mortgage Loan Schedule,
including any diskette or other related data tapes, is true and correct in all
material respects;

                  (b) The Mortgage creates a (A) first lien and first priority
security interest with respect to each Mortgage Loan which is indicated by the
Originator to be a first lien (as reflected on the Mortgage Loan Schedule) or
(B) second lien and second priority security interest with respect to each
Mortgage Loan which is indicated by the Originator to be a second lien (as
reflected on the Mortgage Loan Schedule), in either case, in the related
Mortgaged Property securing the related Mortgage Note;

                  (c) The Originator has not advanced funds, or induced,
solicited or knowingly received any advance of funds from a party other than the
owner of the Mortgaged Property subject to the Mortgage, directly or indirectly,
for the payment of any amount required by the Mortgage Loan; no payment with
respect to each Mortgage Loan has been 30 days or more delinquent during the
preceding twelve-month period;

                  (d) As of the Servicing Transfer Date, all taxes, governmental
assessments, insurance premiums, water, sewer and municipal charges, leasehold
payments or ground rents which previously became due and owing were paid;

                                      -10-
<PAGE>

                  (e) As of the Servicing Transfer Date, the terms of the
Mortgage Note and the Mortgage were not impaired, waived, altered or modified in
any respect, except by written instruments which were recorded to the extent any
such recordation was required by law. As of the Servicing Transfer Date, no
instrument of waiver, alteration or modification was executed, and no Mortgagor
was released, in whole or in part, from the terms thereof except in connection
with an assumption agreement and which assumption agreement was part of the
Mortgage File and the terms of which are reflected in the related Mortgage Loan
Schedule; the substance of any such waiver, alteration or modification has been
approved by the issuer of the title insurance policy, to the extent required by
the related policy;

                  (f) The Mortgage Note and the Mortgage are not subject to any
valid right of rescission, set off, counterclaim or defense, including, without
limitation, the defense of usury, nor will the operation of any of the terms of
the Mortgage Note or the Mortgage, or the exercise of any right thereunder,
render the Mortgage Note or Mortgage unenforceable, in whole or in part, or
subject to any valid right of rescission, set off, counterclaim or defense,
including the defense of usury, and no such right of rescission, set off,
counterclaim or defense has been asserted with respect thereto; and as of the
Servicing Transfer Date, the Mortgagor was not a debtor in any state or federal
bankruptcy or insolvency proceeding at the time the Mortgage Loan was
originated;

                  (g) All buildings or other customarily insured improvements
upon the Mortgaged Property are insured by a Qualified Insurer against loss by
fire and hazards of extended coverage, in an amount representing coverage not
less than the lesser of (i) the maximum insurable value of the improvements
securing such Mortgage Loans, and (ii) the greater of (a) either (1) the
outstanding principal balance of the Mortgage Loan with respect to each Mortgage
Loan which is indicated by the Originator to be a first lien (as reflected on
the Mortgage Loan Schedule) or (2) with respect to each second lien Mortgage
Loan, the sum of the outstanding principal balance of the first lien on such
Mortgage Loan and the outstanding principal balance of such second lien Mortgage
Loan, and (b) an amount such that the proceeds thereof shall be sufficient to
prevent the Mortgagor and/or the mortgagee from becoming a co-insurer, but in no
event greater than the maximum amount permitted under applicable law. As of the
Servicing Transfer Date, all such standard hazard policies were in full force
and effect and on the date of origination contained a standard mortgagee clause
naming the Originator and its successors in interest and assigns as loss payee
and such clause is still in effect and all premiums due thereon have been paid.
If required by the Flood Disaster Protection Act of 1973, as amended, the
Mortgage Loan is covered by a flood insurance policy meeting the requirements of
the current guidelines of the Federal Insurance Administration, in an amount not
less than the amount required by the Flood Disaster Protection Act of 1973, as
amended. Such policy was issued by a Qualified Insurer. The Mortgage obligates
the Mortgagor thereunder to maintain all such insurance at the Mortgagor's cost
and expense, and upon the Mortgagor's failure to do so, authorizes the holder of
the Mortgage to maintain such insurance at the Mortgagor's cost and expense and
to seek reimbursement therefor from the Mortgagor;

                  (h) Any and all requirements of any federal, state or local
law including, without limitation, usury, truth in lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity,
fair housing, or disclosure laws applicable to the Mortgage Loan have been
complied with in all material respects;

                                      -11-
<PAGE>

                  (i) As of the Servicing Transfer Date, the Mortgage was not
satisfied, canceled or subordinated (other than the subordination of any second
lien Mortgage Loan to the related first lien), in whole or in part, or
rescinded, and the Mortgaged Property was not released from the lien of the
Mortgage, in whole or in part nor was any instrument executed that would effect
any such release, cancellation, subordination or rescission. The Originator has
not waived the performance by the Mortgagor of any action, if the Mortgagor's
failure to perform such action would cause the Mortgage Loan to be in default,
nor has the Originator waived any default resulting from any action or inaction
by the Mortgagor;

                  (j) As of the Servicing Transfer Date, the related Mortgage
was a valid, subsisting, enforceable and perfected (A) first lien and first
priority security interest with respect to each Mortgage Loan which was
indicated by the Originator to be a first lien (as reflected on the Mortgage
Loan Schedule), or (B) second lien and second priority security interest with
respect to each Mortgage Loan which was indicated by the Originator to be a
second lien Mortgage Loan (as reflected on the Mortgage Loan Schedule), in
either case, on the Mortgaged Property including all buildings on the Mortgaged
Property and all installations and mechanical, electrical, plumbing, heating and
air conditioning systems affixed to such buildings, and all additions,
alterations and replacements consisting of real property or fixtures made at any
time with respect to the foregoing securing the Mortgage Note's original
principal balance. Such lien is free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only to
(1) the lien of non delinquent current real property taxes and assessments not
yet due and payable, (2) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of recording
which are acceptable to mortgage lending institutions generally and either (A)
which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, (3)
other matters which are disclosed in the applicable title commitment or policy,
or to which like properties are commonly subject which do not materially
interfere with the benefits of the security intended to be provided by the
Mortgage or the use, enjoyment, value or marketability of the related Mortgaged
Property and (4) with respect to each Mortgage Loan which is indicated by the
Originator to be a second lien Mortgage Loan (as reflected on the Mortgage Loan
Schedule) a first lien on the Mortgaged Property. Any security agreement,
chattel mortgage or equivalent document related to and delivered in connection
with the Mortgage Loan establishes and creates a valid, subsisting, enforceable
and perfected (A) first lien and first priority security interest with respect
to each Mortgage Loan which is indicated by the Originator to be a first lien
(as reflected on the Mortgage Loan Schedule), or (B) second lien and second
priority security interest with respect to each Mortgage Loan which is indicated
by the Originator to be a second lien Mortgage Loan (as reflected on the
Mortgage Loan Schedule), in either case, on the property described therein;

                  (k) The Mortgage Note and the related Mortgage are original
and genuine and each is the legal, valid and binding obligation of the maker
thereof, enforceable in all respects in accordance with its terms subject to
bankruptcy, insolvency, moratorium, reorganization and other laws of general
application affecting the rights of creditors and by general equitable
principles and the Originator has taken all action necessary to transfer such
rights of enforceability to the Seller. All parties to the Mortgage Note and the
Mortgage had the legal capacity to enter into the Mortgage Loan and to execute
and deliver the Mortgage Note and the Mortgage. The Mortgage Note and the

                                      -12-
<PAGE>

Mortgage have been duly and properly executed by such parties. No fraud, error,
misrepresentation, gross negligence or similar occurrence with respect to a
Mortgage Loan has taken place on the part of the Originator or the Mortgagor,
or, on the part of any other party involved in the origination of the Mortgage
Loan. The proceeds of the Mortgage Loan have been fully disbursed and there is
no requirement for future advances thereunder, and any and all requirements as
to completion of any on site or off site improvements and as to disbursements of
any escrow funds therefor have been complied with. All costs, fees and expenses
incurred in making or closing the Mortgage Loan and the recording of the
Mortgage were paid or are in the process of being paid, and the Mortgagor is not
entitled to any refund of any amounts paid or due under the Mortgage Note or
Mortgage;

                  (l) Either the Mortgagor is a natural person or the Mortgagor
is an inter-vivos trust acceptable to Fannie Mae. With respect to each
inter-vivos trust, holding title to the Mortgaged Property in such trust will
not diminish any rights as a creditor including the right to full title to the
Mortgaged Property in the event foreclosure proceedings are initiated;

                  (m) Each Mortgage Loan is covered by an ALTA lender's title
insurance policy issued by a title insurer acceptable to Fannie Mae or Freddie
Mac and qualified to do business in the jurisdiction where the Mortgaged
Property is located, insuring (subject to the exceptions contained in (j)(1),
(2) and (3) above and, with respect to each Mortgage Loan which is indicated by
the Originator to be a second lien Mortgage Loan (as reflected on the Mortgage
Loan Schedule) clause (4)) the Originator, its successors and assigns, as to the
first (or, where applicable, second) priority lien of the Mortgage in the
original principal amount of the Mortgage Loan and, with respect to each
Adjustable Rate Mortgage Loan, against any loss by reason of the invalidity or
unenforceability of the lien resulting from the provisions of the Mortgage
providing for adjustment in the Mortgage Rate and Monthly Payment. Additionally,
such policy affirmatively insures ingress and egress to and from the Mortgaged
Property. Where required by applicable state law or regulation, the Mortgagor
has been given the opportunity to choose the carrier of the required mortgage
title insurance. The Originator, its successors and assigns, are the sole
insureds of such lender's title insurance policy. No claims have been made under
such lender's title insurance policy, and no prior holder of the related
Mortgage, including the Originator, has done, by act or omission, anything which
would impair the coverage of such lender's title insurance policy;

                  (n) As of the Servicing Transfer Date, there was no default,
breach, violation or event of acceleration existing under the Mortgage or the
related Mortgage Note and, to the best of Originator's knowledge, no event
which, with the passage of time or with notice and the expiration of any grace
or cure period, would constitute a default, breach, violation or event
permitting acceleration; and neither the Originator nor any prior mortgagee has
waived any default, breach, violation or event permitting acceleration. With
respect to each Mortgage Loan which is indicated by the Originator to be a
second lien Mortgage Loan (as reflected on the Mortgage Loan Schedule) (i) the
first lien is in full force and effect, (ii) there is no default, breach,
violation or event of acceleration existing under such first lien mortgage or
the related mortgage note, (iii) to the best of Originator's knowledge, no event
which, with the passage of time or with notice and the expiration of any grace
or cure period, would constitute a default, breach, violation or event of
acceleration thereunder, and either (A) the first lien mortgage contains a
provision which allows or (B) applicable law requires, the mortgagee under the
second lien Mortgage Loan to receive notice of, and affords

                                      -13-
<PAGE>

such mortgagee an opportunity to cure any default by payment in full or
otherwise under the first lien mortgage;

                  (o) As of the Servicing Transfer Date, there were no
mechanics' or similar liens or claims which have been filed for work, labor or
material (and no rights are outstanding that under law could give rise to such
liens) affecting the related Mortgaged Property which were or may have been
liens prior to or equal to the lien of the related Mortgage, unless insured
against by the related title insurance policy;

                  (p) All improvements subject to the Mortgage which were
considered in determining the Appraised Value of the Mortgaged Property lie
wholly within the boundaries and building restriction lines of the Mortgaged
Property (and wholly within the project with respect to a condominium unit) and
no improvements on adjoining properties encroach upon the Mortgaged Property
except those which are insured against by the title insurance policy referred to
in clause (m) above and all improvements on the property comply un all material
respects with all applicable zoning and subdivision laws and ordinances;

                  (q) The Mortgage Loan was originated by the Originator or a
third-party originator and sold to the Originator. The Mortgage Loan complies
with all the terms, conditions and requirements of the Originator's Underwriting
Standards in effect at the time of origination of such Mortgage Loan, subject to
exceptions thereto made in the ordinary course of business. The Mortgage Notes
and Mortgages (exclusive of any riders) are on forms generally acceptable to
Fannie Mae or Freddie Mac. The Mortgage Loan bears interest at the Mortgage Rate
set forth in the related Mortgage Loan Schedule, and Monthly Payments under the
Mortgage Note are due and payable on the first day of each month (subject to any
grace period set forth in the Mortgage Note). The Mortgage contains the usual
and enforceable provisions of the Originator at the time of origination for the
acceleration of the payment of the unpaid principal amount of the Mortgage Loan
if the related Mortgaged Property is sold without the prior consent of the
mortgagee thereunder, subject to bankruptcy, insolvency, moratorium,
reorganization and other laws of general application affecting the rights of
creditors and by general equitable principles;

                  (r) As of the Servicing Transfer Date, the Mortgaged Property
was not subject to any material damage by waste, fire, earthquake, windstorm,
flood or other casualty. At origination of the Mortgage Loan there was no
proceeding pending or scheduled for the total or partial condemnation of the
Mortgaged Property; and as of the Closing Date, the Originator has not received
any notice of such a proceeding pending or scheduled. for the total or partial
condemnation of the Mortgaged Property;

                  (s) The related Mortgage contains customary and enforceable
provisions such as to render the rights and remedies of the holder thereof
adequate for the realization against the Mortgaged Property of the benefits of
the security provided thereby. There is no homestead or other exemption
available to the Mortgagor which would interfere with the right to sell the
Mortgaged Property at a trustee's sale or the right to foreclose the Mortgage;

                  (t) If the Mortgage constitutes a deed of trust, a trustee,
authorized and duly qualified if required under applicable law to act as such,
has been properly designated and currently

                                      -14-
<PAGE>

so serves and is named in the Mortgage, and no fees or expenses are or will
become payable by the Seller to the trustee under the deed of trust, except in
connection with a trustee's sale or attempted sale after default by the
Mortgagor;

                  (u) The Mortgage File contains an appraisal of the related
Mortgaged Property signed prior to the final approval of the mortgage loan
application by a Qualified Appraiser, who had no interest, direct or indirect,
in the Mortgaged Property or in any loan made on the security thereof, and whose
compensation is not affected by the approval or disapproval of the Mortgage
Loan, and the appraisal and appraiser both satisfy the requirements of Fannie
Mae or Freddie Mac and Title XI of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 and the regulations promulgated thereunder, all as
in effect on the date the Mortgage Loan was originated;

                  (v) Each of the Originator, any third-party originator, any
servicer and any intervening mortgagee which have had any interest in the
Mortgage, whether as mortgagee, assignee or otherwise, are (or, during the
period in which they held and disposed of such interest, were) (A) in compliance
with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located, and (B) (1) organized under the laws
of such state, or (2) qualified to do business in such state, or (3) federal
savings and loan associations or national banks or a Federal Home Loan Bank or
savings bank having principal offices in such state, or (4) not doing business
in such state or (5) not required to be so qualified;

                  (w) The related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security
interest of any applicable security agreement or chattel mortgage referred to in
(j) above;

                  (x) The Mortgagor has received all disclosure materials
required by applicable law with respect to the making of such mortgage loans;

                  (y) The Mortgage Loan does not contain "graduated payment"
features and does not have a shared appreciation or other contingent interest
feature; no Mortgage Loan contains any buydown provisions;

                  (z) As of the Servicing Transfer Date, the Mortgagor was not
in bankruptcy;

                  (aa) Principal payments on the Mortgage Loan commenced no more
than sixty (60) days after the funds were disbursed in connection with the
Mortgage Loan. The Mortgage Loans have an original term to maturity of not more
than 30 years, with interest payable in arrears on the first day of each month.
Each Mortgage Note, other than with respect to a Balloon Mortgage Loan, requires
a monthly payment which is sufficient to fully amortize the original principal
balance over the original term thereof and to pay interest at the related
Mortgage Rate. With respect to each Balloon Mortgage Loan and Interest- Only
Mortgage Loan, the Mortgage Note requires a monthly payment which is sufficient
to fully amortize the original principal balance over the original term thereof
and to pay interest at the related Mortgage Rate and requires a final Monthly
Payment substantially greater than the preceding monthly payment which is
sufficient to repay the remained unpaid principal balance of the Balloon
Mortgage Loan or the Interest-Only Mortgage Loan, as

                                      -15-
<PAGE>

applicable, as the Due Date of such monthly payment. No Mortgage Loan contains
terms or provisions which would result in negative amortization;

                  (bb) No Mortgage Loan is subject to a lender-paid mortgage
insurance policy;

                  (cc) As to any Mortgage Loan which is not a MERS Mortgage
Loan, the Assignment of Mortgage delivered by the Originator, is in recordable
form and is acceptable for recording under the laws of the jurisdiction in which
the Mortgaged Property is located;

                  (dd) The Mortgaged Property is located in the state identified
in the related Mortgage Loan Schedule and consists of a single parcel of real
property with a detached single family residence erected thereon, or a
townhouse, or a two-to four-family dwelling, or an individual condominium unit
in a condominium project, or an individual unit in a planned unit development or
a DE MINIMIS planned unit development, provided, however, that no residence or
dwelling is a single parcel of real property with a cooperative housing
corporation erected thereon, or a mobile home. As of the date of origination, no
portion of the Mortgaged Property was used for commercial purposes (other than a
DE MINIMIS use), and since the date or origination no portion of the Mortgaged
Property has been used for commercial purposes (other than a DE MINIMIS use);

                  (ee) Except as set forth on the Mortgage Loan Schedule, none
of the Mortgage Loans are subject to a Prepayment Penalty. For any Mortgage Loan
subject to a Prepayment Penalty, the Mortgage Loan Schedule accurately sets
forth the term and amount of such Prepayment Penalty;

                  (ff) As of the Servicing Transfer Date, the Mortgaged Property
was lawfully occupied under applicable law, and all inspections, licenses and
certificates required to be made or issued with respect to all occupied portions
of the Mortgaged Property and, with respect to the use and occupancy of the
same, including but not limited to certificates of occupancy and fire
underwriting certificates, have been made or obtained from the appropriate
authorities;

                  (gg) If the Mortgaged Property is a condominium unit or a
planned unit development (other than a DE MINIMIS planned unit development), or
stock in a cooperative housing corporation, such condominium, cooperative or
planned unit development project meets the eligibility requirements of Fannie
Mae and Freddie Mac;

                  (hh) As of the Servicing Transfer Date, there was no pending
action or proceeding directly involving the Mortgaged Property in which
compliance with any environmental law, rule or regulation was an issue; the
Originator has received no notice of any violation of any environmental law,
rule or regulation with respect to the Mortgaged Property;

                  (ii) The Mortgagor has not notified the Originator requesting
relief under the Servicemembers Relief Act, and the Originator has no knowledge
of any relief requested or allowed to the Mortgagor under the Servicemembers
Relief Act;

                  (jj) As of the related Closing Date, no Mortgage Loan was in
construction or rehabilitation status or has facilitated the trade-in or
exchange of a Mortgaged Property;

                                      -16-
<PAGE>

                  (kk) No action has been taken or failed to be taken on or
prior to the related Closing Date which has resulted or will result in an
exclusion from, denial of, or defense to coverage under any insurance policy
related to a Mortgage Loan (including, without limitation, any exclusions,
denials or defenses which would limit or reduce the availability of the timely
payment of the full amount of the loss otherwise due thereunder to the insured)
whether arising out of actions, representations, errors, omissions, negligence,
or fraud, or for any other reason under such coverage;

                  (ll) Except with respect to each Mortgage Loan identified on
the Mortgage Loan Schedule as a correspondent loan, the Mortgage Loan was
originated by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to sections 203 and 211 of the National Housing Act, a
savings and loan association, a savings bank, a commercial bank, credit union,
insurance Originator or similar institution which is supervised and examined by
a federal or state authority. With respect to each Mortgage Loan identified on
the Mortgage Loan Schedule as a correspondent loan, the Mortgage Loan was
re-underwritten by the Originator prior to Originator's purchase thereof;

                  (mm) [reserved];

                  (nn) With respect to any broker fees collected and paid on any
of the Mortgage Loans, all broker fees have been properly assessed to the
Mortgagor and no claims will arise as to broker fees that are double charged and
for which the Mortgagor would be entitled to reimbursement;

                  (oo) With respect to any Mortgage Loan as to which an
affidavit has been delivered to the Seller certifying that the original Mortgage
Note has been lost or destroyed and not been replaced, if such Mortgage Loan is
subsequently in default, the enforcement of such Mortgage Loan will not be
materially adversely affected by the absence of the original Mortgage Note;

                  (pp) Each Mortgage Loan constitutes a qualified mortgage under
Section 860G(a)(3)(A) of the Code and Treasury Regulations Section
1.860G-2(a)(1);

                  (qq) [reserved];

                  (rr) [reserved];

                  (ss) [reserved];

                  (tt) No Mortgage Loan had a Loan-to-Value Ratio at the time of
origination of more than 100%;

                  (uu) None of the Mortgage Loans are subject to, covered by, or
in violation of, the Home Ownership and Equity Protection Act of 1994 ("HOEPA")
or any comparable state law;

                  (vv) None of the proceeds of any Mortgage Loan were used to
finance single-premium credit insurance policies;

                                      -17-
<PAGE>

                  (ww) Any principal advances made to the Mortgagor prior to the
related Closing Date have been consolidated with the outstanding principal
amount secured by the Mortgage, and the secured principal amount, as
consolidated, bears a single interest rate and single repayment term. The lien
of the Mortgage securing the consolidated principal amount is expressly insured
as having (A) first lien priority with respect to each Mortgage Loan which is
indicated by the Originator to be a first lien (as reflected on the Mortgage
Loan Schedule), or (B) second lien priority with respect to each Mortgage Loan
which is indicated by the Originator to be a second lien Mortgage Loan (as
reflected on the Mortgage Loan Schedule), in either case, by a title insurance
policy, an endorsement to the policy insuring the mortgagee's consolidated
interest or by other title evidence acceptable to Fannie Mae and Freddie Mac.
The consolidated principal amount does not exceed the original principal amount
of the Mortgage Loan;

                  (xx) Interest on each Mortgage Loan is calculated on the basis
of a 360-day year consisting of twelve 30-day months;

                  (yy) Except with respect to approximately 0.05% of the
Mortgage Loans by outstanding principal balance, no first lien Mortgage Loan is
a Balloon Mortgage Loan; Except with respect to approximately 7.95% of the
Mortgage Loans by outstanding principal balance, no second lien Mortgage Loan is
a Balloon Mortgage Loan;

                  (zz) With respect to each MERS Mortgage Loan, a MIN has been
assigned by MERS and such MIN is accurately provided on the related Mortgage
Loan Schedule. The related assignment of Mortgage to MERS has been duly and
properly recorded;

                  (aaa) With respect to each MERS Mortgage Loan, the Originator
has not received any notice of liens or legal actions with respect to such
Mortgage Loan and no such notices have been electronically posted by MERS;

                  (bbb) Any Mortgaged Property that is considered manufactured
housing shall be legally classified as real property, is permanently affixed to
a foundation and must assume the characteristics of site-built housing and must
otherwise conform to the requirements (A) for inclusion in residential mortgage
backed securities transactions rated by Standard & Poor's and (B) of Fannie Mae
and Freddie Mac, including, but not limited to, the requirements that (i) the
related Mortgage Note or contract, as applicable, be secured by a "single family
residence"  within the meaning of Section  25(e)(10) of the Code,  (ii) the fair
market value of the  manufactured  home securing  each related  Mortgage Note or
contract,  as  applicable,  was at least equal to 80% of the original  principal
balance of such Mortgage Note or contract, as applicable, and (iii) each related
Mortgage  Note or  contract,  as  applicable,  is a "qualified  mortgage"  under
Section 860G(a)(3) of the Code;

                  (ccc) [reserved];

                  (ddd) The Originator has complied with all applicable
anti-money laundering laws and regulations, including without limitation the USA
Patriot Act of 2001 to the extent applicable to the Originator (collectively,
the "Anti-Money Laundering Laws");

                                      -18-
<PAGE>

                  (eee) No Mortgage Loan originated on or after October 1, 2002
and before March 7, 2003 is secured by a Mortgaged Property located in the State
of Georgia; and no Mortgage Loan originated on or after March 7, 2003 is a "high
cost home loan" as defined under the Georgia Fair Lending Act;

                  (fff) With respect to each Mortgage Loan which is a second
lien Mortgage Loan (i) if the related first lien provides for negative
amortization, the LTV was calculated at the maximum principal balance of such
first lien that could result upon application of such negative amortization
feature, and (ii) either no consent for the Mortgage Loan is required by the
holder of the first lien or such consent has been obtained and is contained in
the Mortgage File;

                  (ggg) No Mortgage Loan originated before October 1, 2002
Mortgage Loans has a Prepayment Charge term longer than five years after its
origination and no Mortgage Loan originated on or after October 1, 2002 has a
Prepayment Charge term longer than three years after its origination;

                  (hhh) Each Mortgage Loan is in compliance with the anti
predatory lending eligibility for purchase requirements of Fannie Mae's Selling
Guide (this representation and warranty shall be construed only to mean that
none of the representations and warranties specified in clauses (iii) through
(ppp) below have been breached);

                  (iii) No borrower was encouraged or required to select a
Mortgage Loan product of the same documentation type offered by the Originator
which is a higher cost product designed for less creditworthy borrowers, unless
at the time of the Mortgage Loan's origination, such borrower did not qualify
taking into account credit history and debt to income ratios for a lower cost
credit product then offered by the Originator or any affiliate of the
Originator. If, at the time of loan application, the borrower may have qualified
for a lower cost credit product of the same documentation type then offered by
any mortgage lending affiliate of the Originator, the Originator referred the
borrower's application to such affiliate for underwriting consideration;

                  (jjj) The methodology used in underwriting the extension of
credit for each Mortgage Loan employs objective mathematical principles which
relate the borrower's income, assets and liabilities to the proposed payment and
such  underwriting  methodology  does not rely on the  extent of the  borrower's
equity in the collateral as the principal  determining  factor in approving such
credit extension. Such underwriting methodology is designed to determine,  among
other  things,  that at the time of  origination  the  borrower had a reasonable
ability to make timely payments on the Mortgage Loan;

                  (kkk) With respect to any Mortgage Loan that contains a
provision permitting imposition of a premium upon a prepayment prior to
maturity: (i) prior to such Mortgage Loan's origination, the borrower agreed to
such premium in exchange for a monetary benefit (i.e., such Mortgage Loan would
have been more costly (including but not limited to a rate or fee increase) if
it did not contain such prepayment premium) (ii) prior to such Mortgage Loan's
origination, the borrower was offered the option of obtaining a Mortgage Loan
that did not require payment of such a premium; provided, that such offer may
have been evidenced by the Originator's rate sheet/pricing grid relating to such
Mortgage Loan, which provided that the Mortgage Loan had a full prepayment

                                      -19-
<PAGE>

premium buy out pricing adjustment available; and (iii) the prepayment premium
is disclosed to the borrower in the loan documents pursuant to applicable state
and federal law;

                  (lll) No borrower was required to purchase any credit life,
disability, accident or health insurance product as a condition of obtaining the
extension of credit. No borrower obtained a prepaid single premium credit life,
disability, accident or health insurance policy in connection with the
origination of the Mortgage Loan;

                  (mmm) No Mortgage Loan is a high cost loan or a covered loan,
as applicable (as such terms are defined in Standard & Poor's LEVELS Version 5.6
Glossary Revised, Appendix E);

                  (nnn) All fees and charges (including finance charges) and
whether or not financed, assessed, collected or to be collected in connection
with the origination and servicing of each Mortgage Loan has been disclosed in
writing to the borrower in accordance with applicable state and federal law and
regulation;

                  (ooo) No Mortgage Loan (a) is secured by property located in
the State of New York; (b) had an original principal balance of $300,000 or
less, and (c) has an application date on or after April 1, 2003, the terms of
which loan equal or exceed either the APR or the points and fees threshold for
"high cost home loans," as defined in Section 6 L of the New York State Banking
Law;

                  (ppp) The information set forth in the Prepayment Charge
Schedule (including the Prepayment Charge Summary attached thereto) is complete,
true and correct in all material respects on the date or dates when such
information is furnished and each Prepayment Charge is permissible, enforceable
and collectible in accordance with its terms (except to the extent that the
enforceability or collectibility thereof may be limited by bankruptcy,
insolvency, moratorium, receivership and other similar laws affecting creditor's
rights generally) under all applicable federal, state and local laws. Each
Prepayment Penalty was originated in compliance with all applicable federal,
state and local laws;

                  (qqq) Each Mortgage Loan at the time it was made complied in
all material respects with applicable local, state, and federal laws, including,
but not limited to, all applicable predatory and abusive lending laws;

                  (rrr) None of the Mortgage Loans are classified as a (a) "high
cost" loan under the HOEPA, (b) "High Cost Home Loan" as defined in New York
Banking Law 6-1, (c) "high-cost home loan" as defined in Kentucky HB 287 or (d)
"high cost", "predatory" or "threshold" loan under any other applicable federal,
state or local law, including any predatory or abusive lending laws, and no
Mortgage Loan is in violation of any state law or ordinance similar to HOEPA;

                  (sss) (a) No Mortgage Loan underlying the Certificates is
classified as a high cost mortgage loan under HOEPA; and (b) no Mortgage Loan in
the trust is a "high cost home," "covered," (excluding home loans defined as
"covered home loans" pursuant to clause (1) of the definition of that term in
the New Jersey Home Ownership Security Act of 2002), "high risk home" or
"predatory" loan under any other applicable state, federal or local law (or a
similarly classified

                                      -20-
<PAGE>

loan using  different  terminology  under a law imposing  heightened  regulatory
scrutiny or additional  legal  liability for  residential  mortgage loans having
high interest rates, points and/or fees);

                  (ttt) All points and fees related to each Mortgage Loan were
disclosed in writing to the borrower in accordance with applicable state and
federal law and regulation. Except in the case of a Mortgage Loan with an
original principal amount of less than $60,000 which would have resulted in an
unprofitable origination, no borrower was charged "points and fees" (whether or
not financed) in an amount greater than 5% of the principal amount of such loan,
such 5% limitation is calculated in accordance with Fannie Mae's anti-predatory
lending requirements as set forth in the Fannie Mae Selling Guide (i.e., for
this purpose, points and fees do not include bona fide discount points; fees
paid for actual services rendered in connection with the origination of the
mortgage, such as attorneys' fees, notary's fees and fees paid for property
appraisals, credit reports, surveys, title examinations and extracts, flood and
tax certifications, and home inspections; the cost of mortgage insurance or
credit-risk price adjustments; the cost of title, hazard and flood insurance
policies; state and local transfer taxes or fees; escrow deposits for the future
payment of taxes and insurance premiums; and other miscellaneous fees and
charges that, in total, do not exceed 0.25% of the loan amount);.

          SECTION 7. REPURCHASE  OBLIGATION FOR DEFECTIVE  DOCUMENTATION AND FOR
                     BREACH OF REPRESENTATION AND WARRANTY.

                  (a) The representations and warranties contained in Section 6
shall not be impaired by any review and examination of loan files or other
documents evidencing or relating to the Mortgage Loans or any failure on the
part of the Seller or the Purchaser to review or examine such documents and
shall inure to the benefit of any assignee, transferee or designee of the
Purchaser, including the Trustee for the benefit of holders of the Certificates.

                  With respect to the representations and warranties contained
herein that are made to the knowledge or the best knowledge of the Seller or as
to which the Seller has no knowledge, if it is discovered that the substance of
any such representation and warranty is inaccurate and the inaccuracy materially
and adversely affects the value of the related Mortgage Loan, or the interest
therein of the Purchaser or the Purchaser's assignee, designee or transferee,
then notwithstanding the Seller's lack of knowledge with respect to the
substance of such representation and warranty being inaccurate at the time the
representation and warranty was made, such inaccuracy shall be deemed a breach
of the applicable representation and warranty and the Seller shall take such
action described in the following paragraphs of this Section 3.03 in respect of
such Mortgage Loan. Upon discovery by the Seller, the Purchaser or any assignee,
transferee or designee of the Purchaser of any materially defective document in,
or that any material document was not transferred by the Seller (as listed on
the Trustee's Initial Certification) as part of any Mortgage File, or of a
breach of any of the representations and warranties contained in Section 6 that
materially and adversely affects the value of any Mortgage Loan or the interest
therein of the Purchaser or the Purchaser's assignee, transferee or designee,
the party discovering such breach shall give prompt written notice to the
Originator and the Seller; provided, that a breach of the representations and
warranties made in Section 6(uu), (vv), (bbb), (ccc), (eee), (ggg) and (sss)
shall be deemed to materially and adversely affects the value of any Mortgage
Loan or the interest therein of the Certificateholders. Within sixty (60) days
of its discovery or its receipt of notice of any such missing documentation that
was not transferred by the

                                      -21-
<PAGE>

Seller as described above, or of materially defective documentation, or of any
such breach of a representation and warranty, the Originator or the Seller, as
applicable, promptly shall deliver such missing document or cure such defect or
breach in all material respects or, in the event the Originator or the Seller,
as applicable, cannot deliver such missing document or cannot cure such defect
or breach, the Originator or the Seller, as applicable, shall, within ninety
(90) days of its discovery or receipt of notice, either (i) repurchase the
affected Mortgage Loan at the Purchase Price (as defined in the Pooling and
Servicing Agreement) or (ii) pursuant to the provisions of the Pooling and
Servicing Agreement, cause the removal of such Mortgage Loan from the Trust Fund
and substitute one or more Qualified Substitute Mortgage Loans. The Originator
or the Seller, as applicable, shall amend the Closing Schedule to reflect the
withdrawal of such Mortgage Loan from the terms of this Agreement and the
Pooling and Servicing Agreement. The Originator or the Seller, as applicable,
shall deliver to the Purchaser such amended Closing Schedule and shall deliver
such other documents as are required by this Agreement or the Pooling and
Servicing Agreement within five (5) days of any such amendment. Any repurchase
pursuant to this Section 7(a) shall be accomplished by transfer to an account
designated by the Purchaser of the amount of the Purchase Price in accordance
with Section 2.03 of the Pooling and Servicing Agreement. Any repurchase
required by this Section shall be made in a manner consistent with Section 2.03
of the Pooling and Servicing Agreement.

                  Notwithstanding the foregoing, to the extent a representation
or warranty of the Seller regarding the Mortgage Loans has been breached and the
circumstance constituting the breach also constitutes a breach of a like
representation or warranty given by the Originator as of an earlier date, the
Purchaser's remedy hereunder shall be solely against the Originator and not the
Seller.

                  Notwithstanding the foregoing, within 90 days of the earlier
of discovery by the Originator or receipt of notice by the Originator of the
breach of the representation of the Originator set forth in Section 6(ppp) above
which materially and adversely affects the interests of the Holders of the Class
P Certificates in any Prepayment Charge, the Originator shall pay the amount of
the scheduled Prepayment Charge, for the benefit of the Holders of the Class P
Certificates by remitting such amount to the Servicer for deposit into the
Collection Account, net of any amount previously collected by the Servicer or
paid by the Servicer, for the benefit of the Holders of the Class P Certificates
in respect of such Prepayment Charge.

                  (ii) The Originator hereby agrees that, in the event that any
Mortgage Loan prepays in full on or prior to the last day of the third full
month following the date on which the related Mortgage Loan was purchased from
the Originator by the Seller pursuant to the Master Seller's Purchase and
Warranties Agreement, dated February 1, 2003 (the "Master Agreement") between
the Seller and the Originator, it will pay to the Seller, with respect to each
Mortgage Loan repurchased, an amount (such amount, a "Repurchase Premium") equal
to the product of (a) the excess of the Purchase Price percentage paid by the
Seller to the Purchaser pursuant to the Master Agreement over 100% and (b) the
Stated Principal Balance of such Mortgage Loan as of the date of such prepayment
in full; provided, that, the amount reimbursed to the Seller shall be reduced by
the amount of any Prepayment Charges that are legally enforceable with respect
to such Mortgage Loan.

                  (c) It is understood and agreed that the obligations of the
Originator or the Seller, as applicable, set forth in this Section 7 to cure or
repurchase a defective Mortgage Loan constitute

                                      -22-
<PAGE>

the sole remedies of the Purchaser against the Originator or the Seller, as
applicable, respecting a missing document or a breach of the representations and
warranties contained in Section 6.

                  SECTION 8. CLOSING; PAYMENT FOR THE MORTGAGE LOANS. The
closing of the purchase and sale of the Mortgage Loans shall be held at the New
York City office of Thacher Proffitt & Wood LLP at 10:00 a.m. New York City time
on the Closing Date.

                  The closing shall be subject to each of the following
conditions:

                  (a) All of the representations and warranties of the Seller
         under this Agreement shall be true and correct in all material respects
         as of the date as of which they are made and no event shall have
         occurred which, with notice or the passage of time, would constitute a
         default under this Agreement;

                  (b) All of the representations and warranties of the
         Originator under this Agreement shall be true and correct in all
         material respects as of the date as of which they are made and no event
         shall have occurred which, with notice or the passage of time, would
         constitute a default under this Agreement;

                  (c) The Purchaser shall have received, or the attorneys of the
         Purchaser shall have received in escrow (to be released from escrow at
         the time of closing), all Closing Documents as specified in Section 9
         of this Agreement, in such forms as are agreed upon and acceptable to
         the Purchaser, duly executed by all signatories other than the
         Purchaser as required pursuant to the respective terms thereof;

                  (d) The Seller shall have delivered or caused to be delivered
         and released to the Purchaser or to its designee, all documents
         (including without limitation, the Mortgage Loans) required to be so
         delivered by the Purchaser pursuant to Section 2.01 of the Pooling and
         Servicing Agreement; and

                  (e) All other terms and conditions of this Agreement and the
         Pooling and Servicing Agreement shall have been complied with.

                  Subject to the foregoing conditions, the Purchaser shall
deliver or cause to be delivered to the Seller on the Closing Date, against
delivery and release by the Seller to the Trustee of all documents required
pursuant to the Pooling and Servicing Agreement, the Mortgage Loan Purchase
Price for the Mortgage Loans as specified in Section 3 of this Agreement.

                  SECTION 9. CLOSING DOCUMENTS. Without limiting the generality
of Section 8 hereof, the closing shall be subject to delivery of each of the
following documents:

                  (a) A Secretary's Certificate of the Seller, dated the Closing
         Date, in form satisfactory to and upon which the Originator, the
         Purchaser and UBS Securities LLC (the "Underwriter") may rely, and
         attached thereto copies of the certificate of incorporation, by-laws
         and certificate of good standing of the Seller under the laws of
         Delaware;

                                      -23-
<PAGE>

                  (b) An Opinion of Counsel of the Seller, dated the Closing
         Date, in form satisfactory to and addressed to the Underwriter;

                  (c) An Officer's Certificate of the Originator, dated the
         Closing Date, in form satisfactory to and upon which the Seller, the
         Purchaser and the Underwriter may rely, and attached thereto copies of
         the certificate of incorporation, by-laws and certificate of good
         standing of the Originator under the laws of its state of
         incorporation;

                  (d) An opinion of Counsel of the Originator, dated the Closing
         Date, in form satisfactory to and addressed to the Underwriter;

                  (e) Such opinions of counsel as the Rating Agencies, Trustee
         may request in connection with the sale of the Mortgage Loans by the
         Seller to the Purchaser or the Seller's execution and delivery of, or
         performance under, this Agreement;

                  (f) A letter from Deloitte & Touche, certified public
         accountants, to the effect that they have performed certain specified
         procedures as a result of which they determined that certain
         information of an accounting, financial or statistical nature set forth
         in the Prospectus Supplement contained under the captions
         "Summary--Mortgage Loans," "Risk Factors," (to the extent of
         information concerning the Mortgage Loans contained therein) and
         "Description of the Mortgage Loans" agrees with the records of the
         Originator;

                  (g) Such further information, certificates, opinions and
         documents as the Purchaser or the Underwriter may reasonably request.

                  SECTION 10. COSTS. The Seller shall pay (or shall reimburse
the Purchaser or any other Person to the extent that the Purchaser or such other
Person shall pay) the fees and expenses of the Seller's accountants and
attorneys and the costs and expenses incurred in connection with obtaining the
documents referred to in Sections 9(a), 9(b), 9(e) and 9(f), the costs and
expenses of printing (or otherwise reproducing) and delivering this Agreement,
the Pooling and Servicing Agreement, the Certificates, the prospectus and
Prospectus Supplement, and any private placement memorandum relating to the
Certificates and other related documents, the initial fees, costs and expenses
of the Trustee, the fees and expenses of the Purchaser's counsel in connection
with the preparation of all documents relating to the securitization of the
Mortgage Loans, the filing fee charged by the Securities and Exchange Commission
for registration of the Certificates and the fees charged by any rating agency
to rate the Certificates. All other costs and expenses in connection with the
transactions contemplated hereunder shall be borne by the party incurring such
expense.

                  SECTION 11. [RESERVED].

                  SECTION 12. INDEMNIFICATION. The Originator shall indemnify
and hold harmless each of (i) the Purchaser, (ii) the Underwriter, (iii) the
Person, if any, to which the Purchaser assigns its rights in and to a Mortgage
Loan and each of their respective successors and assigns and (iv) each person,
if any, who controls the Purchaser within the meaning of Section 15 of the
Securities Act of 1933, as amended (the "1933 Act") ((i) through (iv)
collectively, the "Indemnified Party") against any and all losses, claims,
expenses, damages or liabilities to which the Indemnified Party may

                                      -24-
<PAGE>

become subject, under the 1933 Act or otherwise, insofar as such losses, claims,
expenses, damages or liabilities (or actions in respect thereof) arise out of or
are based upon (a) any untrue statement or alleged untrue statement of any
material fact contained in the Prospectus Supplement under the caption "The
Originator--Underwriting Standards of the Originator" (such information, the
"WMC Information"), or the omission or the alleged omission by the Originator to
state therein the material fact necessary in order to make the statements
therein not misleading and, with respect to any private placement memorandum,
computational material, marketing material or any information provided by the
Underwriter to a purchaser of the Certificates, any information of a comparable
nature, or (ii) the data files containing information with respect to the
Mortgage Loans as transmitted by modem to the Purchaser by the Originator or any
of its affiliates (as such transmitted information may have been amended in
writing by the Originator or any of its affiliates with the written consent of
the Purchaser subsequent to such transmission) or any data that was correctly
and accurately derived therefrom (it being understood that the Originator shall
have no liability hereunder resulting from the aggregation or manipulation by
the Seller or any Affiliate thereof of information in the Prospectus Supplement
derived from information in the Mortgage Loan Schedule that is otherwise
accurate information) or (b) any representation, warranty or covenant made by
the Originator or any affiliate of the Originator herein, other than the
representations and warranties found in Section 6(hhh), (iii), (jjj), (kkk),
(lll), (mmm) and (nnn), on which the Purchaser has relied, being, or alleged to
be, untrue or incorrect; provided, however, that to the extent that any such
losses, claims, expenses, damages or liabilities to which the Indemnified Party
may become subject arise out of or are based upon both (1) statements,
omissions, representations, warranties or covenants of the Originator described
in clause (a) or (b) above and (2) any other factual basis, the Originator shall
indemnify and hold harmless the Indemnified Party only to the extent that the
losses, claims, expenses, damages, or liabilities of the person or persons
asserting the claim are determined to rise from or be based upon matters set
forth in clause (1) above and do not result from the gross negligence or willful
misconduct of such Indemnified Party. This indemnity shall be in addition to any
liability that the Originator may otherwise have.

                  SECTION 13. MANDATORY DELIVERY; GRANT OF SECURITY INTEREST.
The sale and delivery on the Closing Date of the Mortgage Loans described on the
Mortgage Loan Schedule in accordance with the terms and conditions of this
Agreement is mandatory. It is specifically understood and agreed that each
Mortgage Loan is unique and identifiable on the date hereof and that an award of
money damages would be insufficient to compensate the Purchaser for the losses
and damages incurred by the Purchaser in the event of the Seller's failure to
deliver the Mortgage Loans on or before the Closing Date. The Seller hereby
grants to the Purchaser a lien on and a continuing security interest in the
Seller's interest in each Mortgage Loan and each document and instrument
evidencing each such Mortgage Loan to secure the performance by the Seller of
its obligation hereunder, and the Seller agrees that it holds such Mortgage
Loans in custody for the Purchaser, subject to the Purchaser's (i) right, prior
to the Closing Date, to reject any Mortgage Loan to the extent permitted by this
Agreement, and (ii) obligation to deliver or cause to be delivered the
consideration for the Mortgage Loans pursuant to Section 8 hereof. Any Mortgage
Loans rejected by the Purchaser shall concurrently therewith be released from
the security interest created hereby. All rights and remedies of the Purchaser
under this Agreement are distinct from, and cumulative with, any other rights or
remedies under this Agreement or afforded by law or equity and all such rights
and remedies may be exercised concurrently, independently or successively.

                                      -25-
<PAGE>

                  Notwithstanding the foregoing, if on the Closing Date, each of
the conditions set forth in Section 8 hereof shall have been satisfied and the
Purchaser shall not have paid or caused to be paid the Mortgage Loan Purchase
Price, or any such condition shall not have been waived or satisfied and the
Purchaser determines not to pay or cause to be paid the Mortgage Loan Purchase
Price, the Purchaser shall immediately effect the re-delivery of the Mortgage
Loans, if delivery to the Purchaser has occurred, and the security interest
created by this Section 12 shall be deemed to have been released.

                  SECTION 14. NOTICES. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered to or mailed by registered mail, postage prepaid, or
transmitted by fax and, receipt of which is confirmed by telephone, if to the
Purchaser, addressed to the Purchaser at 1285 Avenue of the Americas, New York,
New York 10019, facsimile number (212) 713-7999, Attention: Glenn McIntyre, or
such other address as may hereafter be furnished to the Seller and the
Originator in writing by the Purchaser; if to the Seller, addressed to the
Seller at 1285 Avenue of the Americas, New York, New York 10019, facsimile
number (212) 713-7999, Attention: Glenn McIntyre, or to such other address as
the Seller may designate in writing to the Purchaser and the Originator; and if
to the Originator, addressed to WMC Mortgage Corp. at 6320 Canoga Avenue,
Woodland Hills, California 91367, facsimile number (818) 592-2605, Attention:
George Eshaghian, or such other address as may hereafter be furnished to the
Seller and the Purchaser in writing by the Originator.

                  SECTION 15. SEVERABILITY OF PROVISIONS. Any part, provision,
representation or warranty of this Agreement that is prohibited or that is held
to be void or unenforceable shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof. Any part, provision, representation or warranty of this Agreement that
is prohibited or unenforceable or is held to be void or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction as to any Mortgage Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereto waive any provision of law which prohibits
or renders void or unenforceable any provision hereof.

                  SECTION 16. AGREEMENT OF PARTIES. The Originator, the Seller
and the Purchaser each agree to execute and deliver such instruments and take
such actions as either of the others may, from time to time, reasonably request
in order to effectuate the purpose and to carry out the terms of this Agreement
and the Pooling and Servicing Agreement.

                  SECTION 17. SURVIVAL. (a) The Seller agrees that the
representations, warranties and agreements made by it herein and in any
certificate or other instrument delivered pursuant hereto shall be deemed to be
relied upon by the Purchaser, notwithstanding any investigation heretofore or
hereafter made by the Purchaser or on its behalf, and that the representations,
warranties and agreements made by the Seller herein or in any such certificate
or other instrument shall survive the delivery of and payment for the Mortgage
Loans and shall continue in full force and effect, notwithstanding any
restrictive or qualified endorsement on the Mortgage Notes and notwithstanding
subsequent termination of this Agreement, the Pooling and Servicing Agreement or
the Trust Fund. (b) the Originator agrees that the representations, warranties
and agreements made by it herein and

                                      -26-
<PAGE>

in any certificate or other instrument delivered pursuant hereto shall be deemed
to be relied upon by the Seller and the Purchaser notwithstanding any
investigation heretofore or hereafter made by the Seller or the Purchaser or on
the behalf of either of them, and that the representations, warranties and
agreements made by the Originator herein or in any such certificate shall
continue in full force and effect, notwithstanding subsequent termination of
this Agreement, the Pooling and Servicing Agreement or the Trust Fund.

                  SECTION 18. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS,
DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE PARTIES HERETO SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS (OTHER THAN THE CHOICE OF LAW
PROVISIONS THEREIN) AND DECISIONS OF THE STATE OF NEW YORK. THE PARTIES HERETO
INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW SHALL APPLY TO THIS AGREEMENT.

                  SECTION 19. MISCELLANEOUS. This Agreement may be executed in
two or more counterparts, each of which when so executed and delivered shall be
an original, but all of which together shall constitute one and the same
instrument. This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective successors and assigns. This Agreement
supersedes all prior agreements and understandings relating to the subject
matter hereof. Neither this Agreement nor any term hereof may be changed,
waived, discharged or terminated orally, but only by an instrument in writing
signed by the party against whom enforcement of the change, waiver, discharge or
termination is sought. The headings in this Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

                  It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans by the Seller to the Purchaser as provided in
Section 4 hereof be, and be construed as, a sale of the Mortgage Loans by the
Seller to the Purchaser and not as a pledge of the Mortgage Loans by the Seller
to the Purchaser to secure a debt or other obligation of the Seller. However, in
the event that, notwithstanding the aforementioned intent of the parties, the
Mortgage Loans are held to be property of the Seller, then (a) it is the express
intent of the parties that such conveyance be deemed a pledge of the Mortgage
Loans by the Seller to the Purchaser to secure a debt or other obligation of the
Seller and (b) (1) this Agreement shall also be deemed to be a security
agreement within the meaning of Articles 8 and 9 of the New York Uniform
Commercial Code; (2) the conveyance provided for in Section 4 hereof shall be
deemed to be a grant by the Seller to the Purchaser of a security interest in
all of the Seller's right, title and interest in and to the Mortgage Loans and
all amounts payable to the holders of the Mortgage Loans in accordance with the
terms thereof and all proceeds of the conversion, voluntary or involuntary, of
the foregoing into cash, instruments, securities or other property, including
without limitation all amounts, other than investment earnings, from time to
time held or invested in the Collection Account whether in the form of cash,
instruments, securities or other property; (3) the possession by the Purchaser
or its agent of Mortgage Notes, the related Mortgages and such other items of
property that constitute instruments, money, negotiable documents or chattel
paper shall be deemed to be "possession" by the secured party for purposes of
perfecting the security interest pursuant to the New York Uniform Commercial
Code; and (4) notifications to persons holding such property and
acknowledgments, receipts or confirmations from persons holding such property
shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, financial intermediaries, bailees or agents (as applicable) of the
Purchaser for

                                      -27-
<PAGE>

the purpose of perfecting such security interest under applicable law. Any
assignment of the interest of the Purchaser pursuant to Section 4(d) hereof
shall also be deemed to be an assignment of any security interest created
hereby. The Seller and the Purchaser shall, to the extent consistent with this
Agreement, take such actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans, such
security interest would be deemed to be a perfected security interest of first
priority under applicable law and will be maintained as such throughout the term
of this Agreement and the Pooling and Servicing Agreement.

                  The NIMS Insurer, if any, shall be a third party beneficiary
hereof and may enforce the terms hereof as if a party hereto.

                                      -28-
<PAGE>

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

                                MORTGAGE ASSET SECURITIZATION
                                TRANSACTIONS, INC.

                                By:________________________________
                                Name:
                                Title:

                                By:________________________________
                                Name:
                                Title:

                                UBS REAL ESTATE SECURITIES INC.

                                By:________________________________
                                Name:
                                Title:

                                By:________________________________
                                Name:
                                Title:

                                WMC MORTGAGE CORP.

                                By:________________________________
                                Name:
                                Title:

<PAGE>

                                    EXHIBIT E
                                    ---------

                               REQUEST FOR RELEASE
                                  OF DOCUMENTS

To:      U.S. Bank National Association,
         60 Livingston Street
         St. Paul, Minnesota 55107

         Re:      Pooling and Servicing Agreement, dated as of July 1, 2004,
                  among Mortgage Asset Securitization Transactions, Inc., HomEq
                  Servicing Corporation and U.S. Bank National Association,
                  Mortgage Pass- Through Certificates, Series 2004-WMC2
                  -----------------------------------------------------

         In connection with the administration of the Mortgage Loans held by you
as Trustee pursuant to the above-captioned Pooling and Servicing Agreement, we
request the release, and hereby acknowledge receipt of the Trustee's Mortgage
File Or the Mortgage Loan described below, for the reason indicated.

         In addition, all amounts have been received in connection with such
payment, repurchase or liquidation and have been credited to the related
Collection Account.

Mortgage Loan Number:
---------------------

Mortgagor Name. Address & Zip Code:
-----------------------------------

Reason for Requesting Documents (check one):
--------------------------------------------

         1.       Mortgage Paid in Full ____

         2.       Foreclosure ____

         3.       Substitution ____

         4.       Other Liquidation (Repurchases, etc.) ____

         5.       Nonliquidation Reason:
                  ______________________________________________

Address to which Trustee should deliver
the Trustee's Mortgage File:

                                      E-1-1

<PAGE>

                                   By:_______________________________________
                                            (authorized signer)

                                   Issuer:___________________________________

                                   Address:__________________________________

                                   Date:_____________________________________

Trustee
-------

U.S. Bank National Association

Please acknowledge the execution of the above request by your signature and date
below:

_____________________                       ___________
Signature                                   Date

Documents returned to Trustee:

_____________________                       ___________
Trustee                                     Date

                                      E-1-2

<PAGE>

                                   EXHIBIT F-1
                                   -----------

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                             [Date]

U.S. Bank National Association,
60 Livingston Street
St. Paul, Minnesota 55107

         Re:      MASTR Asset Backed Securities Trust, Series 2004-WMC2,
                  Mortgage Pass-Through Certificates, Class ___, representing a
                  ___% Class ___ Percentage Interest
                  ----------------------------------

Ladies and Gentlemen:

                  In connection with the transfer by ________________ (the
"Transferor") to ________________ (the "Transferee") of the captioned mortgage
pass-through certificates (the "Certificates"), the Transferor hereby certifies
as follows:

                  Neither the Transferor nor anyone acting on its behalf has (a)
offered, pledged, sold, disposed of or otherwise transferred any Certificate,
any interest in any Certificate or any other similar security to any person in
any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c) has
otherwise approached or negotiated with respect to any Certificate, any interest
in any Certificate or any other similar security with any person in any manner,
(d) has made any general solicitation by means of general advertising or in any
other manner, (e) has taken any other action, that (in the case of each of
subclauses (a) through (e) above) would constitute a distribution of the
Certificates under the Securities Act of 1933, as amended (the "1933 Act"), or
would render the disposition of any Certificate a violation of Section 5 of the
1933 Act or any state securities law or would require registration or
qualification pursuant thereto. The Transferor will not act, nor has it
authorized or will it authorize any person to act, in any manner set forth in
the foregoing sentence with respect to any Certificate. The Transferor will not
sell or otherwise transfer any of the Certificates, except in compliance with
the provisions of that certain Pooling and Servicing Agreement, dated as of July
1, 2004, among Mortgage Asset Securitization Transactions, Inc. as Depositor,
HomEq Servicing Corporation as Servicer and U.S. Bank National Association as
Trustee (the "Pooling and Servicing Agreement"), pursuant to which Pooling and
Servicing Agreement the Certificates were issued.

                                      F-1-1

<PAGE>

                  Capitalized terms used but not defined herein shall have the
meanings assigned thereto in the Pooling and Servicing Agreement.

                                               Very truly yours,

                                               [Transferor]

                                               By:___________________________
                                               Name:
                                               Title:

                                      F-1-2

<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER

                                                       [Date]

U.S. Bank National Association, 60 Livingston Street St. Paul, Minnesota 55107

         Re:      MASTR Asset Backed Securities Trust, Series 2004-WMC2,
                  Mortgage Pass-Through Certificates, Class ___, representing a
                  ___% Class ___ Percentage Interest
                  ----------------------------------

Ladies and Gentlemen:

                  In connection with the purchase from ______________________
(the "Transferor") on the date hereof of the captioned trust certificates (the
"Certificates"), _______________ (the "Transferee") hereby certifies as follows:

                  1. The Transferee is a "qualified institutional buyer" as that
term is defined in Rule 144A ("Rule 144A") under the Securities Act of 1933 (the
"1933 Act") and has completed either of the forms of certification to that
effect attached hereto as Annex 1 or Annex 2. The Transferee is aware that the
sale to it is being made in reliance on Rule 144A. The Transferee is acquiring
the Certificates for its own account or for the account of a qualified
institutional buyer, and understands that such Certificate may be resold,
pledged or transferred only (i) to a person reasonably believed to be a
qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the 1933 Act.

                  2. The Transferee has been furnished with all information
regarding (a) the Certificates and distributions thereon, (b) the nature,
performance and servicing of the Mortgage Loans, (c) the Pooling and Servicing
Agreement referred to below, and (d) any credit enhancement mechanism associated
with the Certificates, that it has requested.

                  All capitalized terms used but not otherwise defined herein
have the respective meanings assigned thereto in the Pooling and Servicing
Agreement, dated as of July 1, 2004, among Mortgage Asset Securitization
Transactions, Inc. as Depositor, HomEq Servicing Corporation as Servicer and
U.S. Bank National Association as Trustee, pursuant to which the Certificates
were issued.
                                          [TRANSFEREE]

                                          By:__________________________
                                          Name:
                                          Title:

                                      F-1-3

<PAGE>

                             ANNEX 1 TO EXHIBIT F-1
                             ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------
          [For Transferees Other Than Registered Investment Companies]

                  The undersigned hereby certifies as follows to [name of
Transferor] (the "Transferor") and U.S. Bank National Association, as Trustee,
with respect to the mortgage pass-through certificates (the "Certificates")
described in the Transferee Certificate to which this certification relates and
to which this certification is an Annex:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
entity purchasing the Certificates (the "Transferee").

                  2. In connection with purchases by the Transferee, the
Transferee is a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act of 1933 ("Rule 144A") because (i) the Transferee
owned and/or invested on a discretionary basis $______________________1 in
securities (except for the excluded securities referred to below) as of the end
of the Transferee's most recent fiscal year (such amount being calculated in
accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in the
category marked below.

         ___ CORPORATION, ETC. The Transferee is a corporation (other than a
bank, savings and loan association or similar institution), Massachusetts or
similar business trust, partnership, or any organization described in Section
501(c)(3) of the Internal Revenue Code of 1986.

         ___ BANK. The Transferee (a) is a national bank or banking institution
organized under the laws of any State, territory or the District of Columbia,
the business of which is substantially confined to banking and is supervised by
the State or territorial banking commission or similar official or is a foreign
bank or equivalent institution, and (b) has an audited net worth of at least
$25,000,000 as demonstrated in its latest annual financial statements, a copy of
which is attached hereto.

         ___ SAVINGS AND LOAN. The Transferee (a) is a savings and loan
association, building and loan association, cooperative bank, homestead
association or similar institution, which is supervised and examined by a State
or Federal authority having supervision over any such institutions or is a
foreign savings and loan association or equivalent institution and (b) has an
audited net worth of at least

         ___ BROKER-DEALER. The Transferee is a dealer registered pursuant to
Section 15 of the Securities Exchange Act of 1934.

-------------
         1 Transferee must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Transferee is a dealer, and, in that case,
Transferee must own and/or invest on a discretionary basis at least $10,000,000
in securities. $25,000,000 as demonstrated in its latest annual financial
statements, A COPY OF WHICH IS ATTACHED HERETO.

                                      F-1-4

<PAGE>

         ___ INSURANCE COMPANY. The Transferee is an insurance company whose
primary and predominant business activity is the writing of insurance or the
reinsuring of risks underwritten by insurance companies and which is subject to
supervision by the insurance commissioner or a similar official or agency of a
State, territory or the District of Columbia.

         ___ STATE OR LOCAL PLAN. The Transferee is a plan established and
maintained by a State, its political subdivisions, or any agency or
instrumentality of the State or its political subdivisions, for the benefit of
its employees.

         ___ ERISA PLAN. The Transferee is an employee benefit plan within the
meaning of Title I of the Employee Retirement Income Security Act of 1974.

         ___ INVESTMENT ADVISOR. The Transferee is an investment advisor
registered under the Investment Advisers Act of 1940.

                  3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i)
securities of issuers that are affiliated with the Transferee, (ii) securities
that are part of an unsold allotment to or subscription by the Transferee, if
the Transferee is a dealer, (iii) securities issued or guaranteed by the U.S. or
any instrumentality thereof, (iv) bank deposit notes and certificates of
deposit, (v) loan participations, (vi) repurchase agreements, (vii) securities
owned but subject to a repurchase agreement and (viii) currency, interest rate
and commodity swaps.

                  4. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Transferee, the
Transferee used the cost of such securities to the Transferee and did not
include any of the securities referred to in the preceding paragraph. Further,
in determining such aggregate amount, the Transferee may have included
securities owned by subsidiaries of the Transferee, but only if such
subsidiaries are consolidated with the Transferee in its financial statements
prepared in accordance with generally accepted accounting principles and if the
investments of such subsidiaries are managed under the Transferee's direction.
However, such securities were not included if the Transferee is a
majority-owned, consolidated subsidiary of another enterprise and the Transferee
is not itself a reporting company under the Securities Exchange Act of 1934.

                  5. The Transferee acknowledges that it is familiar with Rule
144A and understands that the Transferor and other parties related to the
Certificates are relying and will continue to rely on the statements made herein
because one or more sales to the Transferee may be in reliance on Rule 144A.

         ___      ___      Will the Transferee be purchasing the Certificates
         Yes      No       only for the Transferee's own account?

                  6. If the answer to the foregoing question is "no", the
Transferee agrees that, in connection with any purchase of securities sold to
the Transferee for the account of a third party (including any separate account)
in reliance on Rule 144A, the Transferee will only purchase for the account of a
third party that at the time is a "qualified institutional buyer" within the
meaning of Rule 144A. In addition, the Transferee agrees that the Transferee
will not purchase securities for a third

                                      F-1-5

<PAGE>

party unless the Transferee has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

                  7. The Transferee will notify each of the parties to which
this certification is made of any changes in the information and conclusions
herein. Until such notice is given, the Transferee's purchase of the
Certificates will constitute a reaffirmation of this certification as of the
date of such purchase. In addition, if the Transferee is a bank or savings and
loan as provided above, the Transferee agrees that it will furnish to such
parties updated annual financial statements promptly after they become
available.

Dated: ___________

                                    ____________________________________
                                    Print Name of Transferee

                                    By:_________________________________
                                    Name:
                                    Title:

                                      F-1-6

<PAGE>

                             ANNEX 2 TO EXHIBIT F-1
                             ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [For Transferees That Are Registered Investment Companies]

                  The undersigned hereby certifies as follows to [name of
Transferor] (the "Transferor") and U.S. Bank National Association, as Trustee,
with respect to the mortgage pass- through certificates (the "Certificates")
described in the Transferee Certificate to which this certification relates and
to which this certification is an Annex:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the entity purchasing the
Certificates (the "Transferee") or, if the Transferee is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because the Transferee is part of a Family of
Investment Companies (as defined below), is such an officer of the investment
adviser (the "Adviser").

                  2. In connection with purchases by the Transferee, the
Transferee is a "qualified institutional buyer" as defined in Rule 144A because
(i) the Transferee is an investment company registered under the Investment
Company Act of 1940, and (ii) as marked below, the Transferee alone, or the
Transferee's Family of Investment Companies, owned at least $100,000,000 in
securities (other than the excluded securities referred to below) as of the end
of the Transferee's most recent fiscal year. For purposes of determining the
amount of securities owned by the Transferee or the Transferee's Family of
Investment Companies, the cost of such securities was used.

         ____     The Transferee owned $___________________ in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Transferee's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

         ____     The Transferee is part of a Family of Investment Companies
                  which owned in the aggregate $______________ in securities
                  (other than the excluded securities referred to below) as of
                  the end of the Transferee's most recent fiscal year (such
                  amount being calculated in accordance with Rule 144A).

                  3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "SECURITIES" as used herein does not include (i)
securities of issuers that are affiliated with the Transferee or are part of the
Transferee's Family of Investment Companies, (ii) securities issued or
guaranteed by the U.S. or any instrumentality thereof, (iii) bank deposit notes
and certificates of deposit, (iv) loan participations, (v) repurchase
agreements, (vi) securities owned but subject to a repurchase agreement and
(vii) currency, interest rate and commodity swaps.

                                      F-1-7

<PAGE>

                  5. The Transferee is familiar with Rule 144A and understands
that the parties to which this certification is being made are relying and will
continue to rely on the statements made herein because one or more sales to the
Transferee will be in reliance on Rule 144A. In addition, the Transferee will
only purchase for the Transferee's own account.

                  6. The undersigned will notify the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Transferee's purchase of the Certificates will constitute
a reaffirmation of this certification by the undersigned as of the date of such
purchase.

Dated: __________

                                          ___________________________________
                                          Print Name of Transferee or Advisor

                                          By:________________________________
                                          Name:
                                          Title:

                                          IF AN ADVISER:

                                          ___________________________________
                                          Print Name of Transferee

                                      F-1-8

<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER
                    ----------------------------------------

                  The undersigned hereby certifies on behalf of the purchaser
named below (the "Purchaser") as follows:

                  1. I am an executive officer of the Purchaser.

                  2. The Purchaser is a "qualified institutional buyer", as
defined in Rule 144A, ("Rule 144A") under the Securities Act of 1933, as
amended.

                  3. As of the date specified below (which is not earlier than
the last day of the Purchaser's most recent fiscal year), the amount of
"securities", computed for purposes of Rule 144A, owned and invested on a
discretionary basis by the Purchaser was in excess of $100,000,000.

                                            Name of Purchaser

                                            _______________________________

                                            By:____________________________
                                            Name:
                                            Title:

Date of this certificate: ______________

Date of information provided in paragraph 3: ______________

                                      F-1-9

<PAGE>

                                   EXHIBIT F-2
                                   -----------

                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF NEW YORK             )

COUNTY OF NEW YORK            )

                  __________________________, being duly sworn, deposes,
represents and warrants as follows:

                  1. I am a ______________________ of
____________________________ (the "Owner") a corporation duly organized and
existing under the laws of ______________, the record owner of MASTR Asset
Backed Securities Trust, Series 2004-WMC2, Mortgage Pass-Through Certificates,
Class [R][R-X] Certificates, (the "Residual Certificates"), on behalf of whom I
make this affidavit and agreement. Capitalized terms used but not defined herein
have the respective meanings assigned thereto in the Pooling and Servicing
Agreement pursuant to which the Residual Certificates were issued.

                  2. The Owner (i) is and will be a "Permitted Transferee" as of
____________, 20__ and (ii) is acquiring the Residual Certificates for its own
account or for the account of another Owner from which it has received an
affidavit in substantially the same form as this affidavit. A "Permitted
Transferee" is any person other than a "disqualified organization" or a
possession of the United States. For this purpose, a "disqualified organization"
means the United States, any state or political subdivision thereof, any agency
or instrumentality of any of the foregoing (other than an instrumentality all of
the activities of which are subject to tax and, except for the Federal Home Loan
Mortgage Corporation, a majority of whose board of directors is not selected by
any such governmental entity) or any foreign government, international
organization or any agency or instrumentality of such foreign government or
organization, any rural electric or telephone cooperative, or any organization
(other than certain farmers' cooperatives) that is generally exempt from federal
income tax unless such organization is subject to the tax on unrelated business
taxable income.

                  3. The Owner is aware (i) of the tax that would be imposed on
transfers of the Residual Certificates to disqualified organizations under the
Internal Revenue Code of 1986 that applies to all transfers of the Residual
Certificates after March 31, 1988; (ii) that such tax would be on the transferor
or, if such transfer is through an agent (which person includes a broker,
nominee or middleman) for a non-Permitted Transferee, on the agent; (iii) that
the person otherwise liable for the tax shall be relieved of liability for the
tax if the transferee furnishes to such person an affidavit that the transferee
is a Permitted Transferee and, at the time of transfer, such person does not
have actual knowledge that the affidavit is false; and (iv) that each of the
Residual Certificates may be a "noneconomic residual interest" within the
meaning of proposed Treasury regulations promulgated under the Code and that the
transferor of a "noneconomic residual interest" will remain liable for any taxes
due with respect to the income on such residual interest, unless no significant
purpose of the transfer is to impede the assessment or collection of tax.

                                      F-2-1

<PAGE>

                  4. The Owner is aware of the tax imposed on a "pass-through
entity" holding the Residual Certificates if, at any time during the taxable
year of the pass-through entity, a non-Permitted Transferee is the record holder
of an interest in such entity. (For this purpose, a "pass-through entity"
includes a regulated investment company, a real estate investment trust or
common trust fund, a partnership, trust or estate, and certain cooperatives.)

                  5. The Owner is aware that the Trustee will not register the
transfer of any Residual Certificate unless the transferee, or the transferee's
agent, delivers to the Trustee, among other things, an affidavit in
substantially the same form as this affidavit. The Owner expressly agrees that
it will not consummate any such transfer if it knows or believes that any of the
representations contained in such affidavit and agreement are false.

                  6. The Owner consents to any additional restrictions or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable arrangement to ensure that the Residual Certificates will only be
owned, directly or indirectly, by an Owner that is a Permitted Transferee.

                  7. The Owner's taxpayer identification number is
_________________.

                  8. The Owner has reviewed the restrictions set forth on the
face of the Residual Certificates and the provisions of Section 5.02(d) of the
Pooling and Servicing Agreement under which the Residual Certificates were
issued (in particular, clauses (iii)(A) and (iii)(B) of Section 5.02(d) which
authorize the Trustee to deliver payments to a person other than the Owner and
negotiate a mandatory sale by the Trustee in the event that the Owner holds such
Certificate in violation of Section 5.02(d)); and that the Owner expressly
agrees to be bound by and to comply with such restrictions and provisions.

                  9. The Owner is not acquiring and will not transfer the
Residual Certificates in order to impede the assessment or collection of any
tax.

                  10. The Owner anticipates that it will, so long as it holds
the Residual Certificates, have sufficient assets to pay any taxes owed by the
holder of such Residual Certificates, and hereby represents to and for the
benefit of the person from whom it acquired the Residual Certificates that the
Owner intends to pay taxes associated with holding such Residual Certificates as
they become due, fully understanding that it may incur tax liabilities in excess
of any cash flows generated by the Residual Certificates.

                  11. The Owner has no present knowledge that it may become
insolvent or subject to a bankruptcy proceeding for so long as it holds the
Residual Certificates.

                  12. The Owner has no present knowledge or expectation that it
will be unable to pay any United States taxes owed by it so long as any of the
Certificates remain outstanding.

                  13. The Owner is not acquiring the Residual Certificates with
the intent to transfer the Residual Certificates to any person or entity that
will not have sufficient assets to pay any taxes owed by the holder of such
Residual Certificates, or that may become insolvent or subject to a

                                      F-2-2

<PAGE>

bankruptcy proceeding, for so long as the Residual Certificates remain
outstanding.

                  14. The Owner will, in connection with any transfer that it
makes of the Residual Certificates, obtain from its transferee the
representations required by Section 5.02(d) of the Pooling and Servicing
Agreement under which the Residual Certificate were issued and will not
consummate any such transfer if it knows, or knows facts that should lead it to
believe, that any such representations are false.

                  15. The Owner will, in connection with any transfer that it
makes of the Residual Certificates, deliver to the Trustee an affidavit, which
represents and warrants that it is not transferring the Residual Certificates to
impede the assessment or collection of any tax and that it has no actual
knowledge that the proposed transferee: (i) has insufficient assets to pay any
taxes owed by such transferee as holder of the Residual Certificates; (ii) may
become insolvent or subject to a bankruptcy proceeding for so long as the
Residual Certificates remains outstanding; and (iii) is not a "Permitted
Transferee".

                  16. The Owner is a citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, or an estate or
trust whose income from sources without the United States may be included in
gross income for United States federal income tax purposes regardless of its
connection with the conduct of a trade or business within the United States.

                  17. The Owner of the Residual Certificate, hereby agrees that
in the event that the Trust Fund created by the Pooling and Servicing Agreement
is terminated pursuant to Section 9.01 thereof, the undersigned shall assign and
transfer to the Holders of the Class CE Certificates (with respect to a
termination of REMIC I) any amounts in excess of par received in connection with
such termination. Accordingly, in the event of such termination, the Trustee is
hereby authorized to withhold any such amounts in excess of par and to pay such
amounts directly to the Holders of the Class CE Certificates. This agreement
shall bind and be enforceable against any successor, transferee or assignee of
the undersigned in the Residual Certificate. In connection with any transfer of
the Residual Certificate, the Owner shall obtain an agreement substantially
similar to this clause from any subsequent owner.

                                      F-2-3

<PAGE>

                  IN WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, pursuant to the authority of its Board of Directors, by
its [Vice] President, attested by its [Assistant] Secretary, this ____ day of
__________, 20__.

                                                  [OWNER]

                                                  By:__________________________
                                                  Name:
                                                  Title:  [Vice] President

ATTEST:

By:______________________________
Name:
Title:  [Assistant] Secretary

                  Personally appeared before me the above-named , known or
proved to me to be the same person who executed the foregoing instrument and to
be a [Vice] President of the Owner, and acknowledged to me that [he/she]
executed the same as [his/her] free act and deed and the free act and deed of
the Owner.

                  Subscribed and sworn before me this ____ day of __________,
20___.

                                                 ____________________________
                                                          Notary Public

                                                 County of __________________
                                                 State of ___________________

                                                 My Commission expires:

                                      F-2-4

<PAGE>

                          FORM OF TRANSFEROR AFFIDAVIT
                          ----------------------------

STATE OF NEW YORK            )

COUNTY OF NEW YORK           )

                  __________________________, being duly sworn, deposes,
represents and warrants as follows:

                  1. I am a ____________________ of ____________________________
(the "Owner"), a corporation duly organized and existing under the laws of
______________, on behalf of whom I make this affidavit.

                  2. The Owner is not transferring the Residual Certificates
(the "Residual Certificates") to impede the assessment or collection of any tax.

                  3. The Owner has no actual knowledge that the Person that is
the proposed transferee (the "Purchaser") of the Residual Certificates: (i) has
insufficient assets to pay any taxes owed by such proposed transferee as holder
of the Residual Certificates; (ii) may become insolvent or subject to a
bankruptcy proceeding for so long as the Residual Certificates remain
outstanding; and (iii) is not a Permitted Transferee.

                  4. The Owner understands that the Purchaser has delivered to
the Trustee a transfer affidavit and agreement in the form attached to the
Pooling and Servicing Agreement as Exhibit F-2. The Owner does not know or
believe that any representation contained therein is false.

                  5. At the time of transfer, the Owner has conducted a
reasonable investigation of the financial condition of the Purchaser as
contemplated by Treasury Regulations Section 1.860E-1(c)(4)(i) and, as a result
of that investigation, the Owner has determined that the Purchaser has
historically paid its debts as they became due and has found no significant
evidence to indicate that the Purchaser will not continue to pay its debts as
they become due in the future. The Owner understands that the transfer of a
Residual Certificate may not be respected for United States income tax purposes
(and the Owner may continue to be liable for United States income taxes
associated therewith) unless the Owner has conducted such an investigation.

                  6. Capitalized terms not otherwise defined herein shall have
the meanings ascribed to them in the Pooling and Servicing Agreement.

                                      F-2-5

<PAGE>

                  IN WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, pursuant to the authority of its Board of Directors, by
its [Vice] President, attested by its [Assistant] Secretary, this ____ day of
___________, 20__.

                                          [OWNER]

                                          By:________________________________
                                          Name:
                                          Title:  [Vice] President

ATTEST:

By:______________________________
Name:
Title:   [Assistant] Secretary

                  Personally appeared before me the above-named , known or
proved to me to be the same person who executed the foregoing instrument and to
be a [Vice] President of the Owner, and acknowledged to me that [he/she]
executed the same as [his/her] free act and deed and the free act and deed of
the Owner.

                  Subscribed and sworn before me this ____ day of __________,
20___.

                                                  ____________________________
                                                           Notary Public

                                                  County of __________________
                                                  State of ___________________

                                                  My Commission expires:

                                      F-2-6

<PAGE>

                                    EXHIBIT G
                                    ---------

            FORM OF CERTIFICATION WITH RESPECT TO ERISA AND THE CODE

                                             _____________, 2004

Mortgage Asset Securitization Transactions, Inc.
1285 Avenue of the Americas
New York, New York 10019

HomEq Servicing Corporation
4837 Watt Avenue
North Highlands, California 95660

U.S. Bank National Association
60 Livingston Street
St. Paul, Minnesota 55107

         Re:      MASTR Asset Backed Securities Trust, Series 2004-WMC2,
                  Mortgage Pass-Through Certificates, Class ___
                  ---------------------------------------------

Dear Sirs:

                  _______________________ (the "Transferee") intends to acquire
from _____________________ (the "Transferor") $____________ Initial Certificate
Principal Balance of MASTR Asset Backed Securities Trust, Series 2004-WMC2,
Mortgage Pass-Through Certificates, Class [CE] [P] [R](the "Certificates"),
issued pursuant to a Pooling and Servicing Agreement (the "Pooling and Servicing
Agreement") dated as of July 1, 2004, among Mortgage Asset Securitization
Transactions, Inc. as depositor (the "Depositor"), HomEq Servicing Corporation
as Servicer (the "Servicer") and U.S. Bank National Association as trustee (the
"Trustee"). Capitalized terms used herein and not otherwise defined shall have
the meanings assigned thereto in the Pooling and Servicing Agreement. The
Transferee hereby certifies, represents and warrants to, and covenants with the
Depositor, the Trustee and the Servicer that:

         The Certificates (i) are not being acquired by, and will not be
transferred to, any employee benefit plan within the meaning of section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
other retirement arrangement, including individual retirement accounts and
annuities, Keogh plans and bank collective investment funds and insurance
company general or separate accounts in which such plans, accounts or
arrangements are invested, that is subject to Section 406 of ERISA or Section
4975 of the Internal Revenue Code of 1986 (the "Code") (any of the foregoing, a
"Plan"), (ii) are not being acquired with "plan assets" of a Plan within the
meaning of the Department of Labor ("DOL") regulation, 29 C.F.R.ss.2510.3-101,
and (iii) will not be transferred to any entity that is deemed to be investing
in plan assets within the meaning of the DOL regulation at 29 C.F.R.ss.
2510.3-101.

                                       G-1

<PAGE>

                                            Very truly yours,

                                            _______________________________

                                            By:__________________________
                                            Name:
                                            Title:

                                       G-2

<PAGE>

                                    EXHIBIT H
                                    ---------

                     FORM OF REPORT PURSUANT TO SECTION 4.06

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

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 10-K

                                  Annual Report

                     Pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934 (Fee Required)

                     For fiscal year ended ________________

                       Commission file number: 333-_______

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
            (as depositor under the Pooling and Servicing Agreement,
             dated as of July1, 2004, providing for the issuance of
              Mortgage Pass-Through Certificates, Series 2004-WMC2)

                Mortgage Asset Securitization Transactions, Inc.
                ------------------------------------------------

             (Exact name of registrant as specified in its charter)
--------------------------------------------------------------------------------

           Delaware                                    [__]
----------------------------                           ----------------
(State or Other Jurisdiction                           (I.R.S. Employer
of Incorporation)                                      Identification Number)

1285 Avenue of the Americas
New York, New York 10019                                  10019
------------------------                                  -----
(Address of Principal Executive Offices)               (Zip Code)

Registrant's telephone number, including area code: [___]

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

                                       H-1

<PAGE>

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate whether the Registrant: (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.

                                                         X  YES       No
                                                       ----      ----

Item 1.  Business:

Not applicable

Item 2.  Properties:

Not applicable

Item 3.  Legal Proceedings:

None

Item 4.  Submission of Matters to a Vote of Security-Holders

None

Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

To the best knowledge of the registrant there is no established public trading
market for the certificates.

There are approximately _____ holders of record as of the end of the reporting
year.

Item 6.  Selected Financial Data.

Not applicable.

Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations

Not applicable

                                       H-2

<PAGE>

Item 8.  Financial Statements and Supplementary Data.

Not applicable.

Item 9. Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure

None

Item 10.

Not applicable

Item 11.  Executive Compensation

Not applicable

Item 12.  Security Ownership of Certain Beneficial Owners and Management

Not applicable

Item 13.  Certain Relationships and Related Transactions

Not applicable

Item 14.  Exhibits, Financial Statement Schedules, and Reports on Form 8-K

         a)       The company filed on Form 8-K, separately for each
                  distribution date, the distribution of funds related to the
                  trust for each of the following distribution dates:

                  Distribution Date                  Form 8-K Filing Date
                  -----------------                  --------------------
                  _________________                  ________________
                  _________________                  ________________
                  _________________                  ________________

         b)       99.1     Annual Report of Independent Public Accountants' as
                           to servicing activities,

                           (a)      HomEq Servicing Corporation, as Servicer

                  99.2     Annual Statement of Compliance with obligations under
                           the Pooling and Servicing Agreement or servicing
                           agreement, as applicable, of:

                           (a)      HomEq Servicing Corporation, as Servicer

Such document (i) is not filed herewith since such document was not received by
the Reporting Person at least three business days prior to the due date of this
report; and (ii) will be included in an

                                       H-3

<PAGE>

amendment to this report on Form 10-K/A to be filed within 30 days of the
Reporting Person's receipt of such document.

                                       H-4

<PAGE>

                                   Signatures

                  Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.

Date: ___________

                                   Mortgage Asset Securitization Transactions,
                                   Inc., by U.S. Bank National Association, as
                                   Trustee for MASTR Asset Backed Securities
                                   Trust, Series 2004-WMC2, Mortgage Pass-
                                   Through Certificates.

                                   By:_________________________________________
                                   Name:
                                   Title:
                                   Company:

                                       H-5

<PAGE>

                                    EXHIBIT I

                           FORM OF LOST NOTE AFFIDAVIT

                              Loan #: ____________
                             Borrower: _____________

                               LOST NOTE AFFIDAVIT

                  I, as ____________________ of ______________________, a
_______________ corporation am authorized to make this Affidavit on behalf of
_____________________ (the "Seller"). In connection with the administration of
the Mortgage Loans held by ____________________, a _________________ corporation
as Seller on behalf of Mortgage Asset Securitization Transactions, Inc. (the
"Purchaser"), _____________________ (the "Deponent"), being duly sworn, deposes
and says that:

         1. The Seller's address is: _____________________
                                     _____________________
                                     _____________________

         2.       The Seller previously delivered to the Purchaser a signed
                  Initial Certification with respect to such Mortgage and/or
                  Assignment of Mortgage;

         3.       Such Mortgage Note and/or Assignment of Mortgage was assigned
                  or sold to the Purchaser by ________________________, a
                  ____________ corporation pursuant to the terms and provisions
                  of a Mortgage Loan Purchase Agreement dated as of
                  __________ __, _____;

         4.       Such Mortgage Note and/or Assignment of Mortgage is not
                  outstanding pursuant to a request for release of Documents;

         5.       Aforesaid Mortgage Note and/or Assignment of Mortgage (the
                  "Original") has been lost;

         6.       Deponent has made or caused to be made a diligent search for
                  the Original and has been unable to find or recover same;

         7.       The Seller was the Seller of the Original at the time of the
                  loss; and

         8.       Deponent agrees that, if said Original should ever come into
                  Seller's possession, custody or power, Seller will immediately
                  and without consideration surrender the Original to the
                  Purchaser.

         9.       Attached hereto is a true and correct copy of (i) the Note,
                  endorsed in blank by the Mortgagee and (ii) the Mortgage or
                  Deed of Trust (strike one) which secures the Note, which
                  Mortgage or Deed of Trust is recorded in the county

                                      I-1
<PAGE>

                  where the property is located.

         10.      Deponent hereby agrees that the Seller (a) shall indemnify and
                  hold harmless the Purchaser, its successors and assigns,
                  against any loss, liability or damage, including reasonable
                  attorney's fees, resulting from the unavailability of any
                  Notes, including but not limited to any loss, liability or
                  damage arising from (i) any false statement contained in this
                  Affidavit, (ii) any claim of any party that has already
                  purchased a mortgage loan evidenced by the Lost Note or any
                  interest in such mortgage loan, (iii) any claim of any
                  borrower with respect to the existence of terms of a mortgage
                  loan evidenced by the Lost Note on the related property to the
                  fact that the mortgage loan is not evidenced by an original
                  note and (iv) the issuance of a new instrument in lieu thereof
                  (items (i) through (iv) above hereinafter referred to as the
                  "Losses") and (b) if required by any Rating Agency in
                  connection with placing such Lost Note into a Pass-Through
                  Transfer, shall obtain a surety from an insurer acceptable to
                  the applicable Rating Agency to cover any Losses with respect
                  to such Lost Note.

         11.      This Affidavit is intended to be relied upon by the Purchaser,
                  its successors and assigns. _____________________, a
                  ______________ corporation represents and warrants that is has
                  the authority to perform its obligations under this Affidavit
                  of Lost Note.

Executed this ____ day, of ___________ ______.

                                                SELLER

                                                By:__________________________
                                                Name:
                                                Title:

                  On this _____ day of ________, _____, before me appeared
_________________ to me personally known, who being duly sworn did say that he
is the _____________________ of ____________________ a ______________
corporation and that said Affidavit of Lost Note was signed and sealed on behalf
of such corporation and said acknowledged this instrument to be the free act and
deed of said corporation.

                                                 Signature:

                                                 [Seal]

                                      I-2
<PAGE>

                                   EXHIBIT J-1

                FORM CERTIFICATION TO BE PROVIDED BY THE TRUSTEE
                                 WITH FORM 10-K

                  Certification

                  I, [identify the certifying individual], certify that:

                  1. I have reviewed this annual report on Form 10-K, and all
reports on Form 8-K containing distribution or servicing reports filed in
respect of periods included in the year covered by this annual report, of
[identify issuer (i.e., the name of the specific deal to which this
certification relates rather than just the name of the Depositor)];

                  2. Based on my knowledge, the information in these reports,
taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading, as of
the last day of the period covered by this annual report;

                  3. Based on my knowledge, the distribution or servicing
information required to be provided to the trustee by the servicer under the
pooling and servicing, or similar, agreement, for inclusion in these reports is
included in these reports;

                  4. Based on my knowledge and upon the annual compliance
statement included in the report and required to be delivered to the Trustee in
accordance with the terms of the Pooling and Servicing Agreement, and except as
disclosed in the reports, the Servicer has fulfilled its obligations under the
servicing agreement; and

                  5. The reports disclose all significant deficiencies relating
to the servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public accountant, after conducting a review
in compliance with the Uniform Single Attestation Program for Mortgage Bankers
or similar procedure, as set forth in the pooling and servicing, or similar,
agreement, that is included in these reports.

                  In giving the certifications above, I have reasonably relied
on information provided to me by the following unaffiliated parties: HomEq
Servicing Corporation.

                                       J-1

<PAGE>

                                     U.S. BANK NATIONAL ASSOCIATION

                                     By:____________________________________
                                     Name:
                                     Title:
                                     Date:

                                       J-2

<PAGE>

                                   EXHIBIT J-2

         FORM OF CERTIFICATION TO BE PROVIDED TO TRUSTEE BY THE SERVICER

U.S. Bank National Association,
60 Livingston Street
St. Paul, Minnesota 55107

         Re:      MASTR Asset Backed Securities Trust 2004-WMC2

         HomEq Servicing Corporation, as Servicer hereby certifies to the
Trustee that:

         1. Based on my knowledge, the information in the Annual Statement of
Compliance, the Annual Independent Public Accountant's Servicing Report and all
servicing reports, officer's certificates and other information relating to the
servicing of the Mortgage Loans submitted to the Trustee taken as a whole, does
not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading, as of the date of this
certification;

         2. Based on my knowledge, the servicing information required to be
provided to the Trustee by the Servicer under the Pooling and Servicing
Agreement has been provided to the Trustee;

         3. I am responsible for reviewing the activities performed by the
Servicer under the Pooling and Servicing Agreement and based upon the review
required by such Pooling and Servicing Agreement, and except as disclosed in the
Annual Statement of Compliance and the Annual Independent Public Accountant's
Servicing Report submitted to the Trustee, the Servicer has, as of the date of
this certification fulfilled its obligations under such Pooling and Servicing
Agreement; and

         4. The servicer has disclosed to the Trustee all significant
deficiencies relating to the Servicer's compliance with the minimum servicing
standards in accordance with a review conducted in compliance with the Uniform
Single Attestation Program for Mortgage Bankers or similar standard as set forth
in the Pooling and Servicing Agreement.

         Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated as of July 1,
2004, among Mortgage Asset Securitization Transactions, Inc. as depositor, HomEq
Servicing Corporation, as servicer and U.S. Bank National Association, as
trustee
                                  HomEq Servicing Corporation, as Servicer

                                  By:_________________________________
                                  Name:
                                  Title:
                                  Date:

                                       K-1

<PAGE>

                                    EXHIBIT K
                                    ---------

             Annual Statement of Compliance pursuant to Section 3.20

                  MASTR Asset Backed Securities Trust 2004-WMC2
              Mortgage Pass Through Certificates, Series 2004-WMC2

                  I, _____________________, hereby certify that I am a duly
appointed __________________________ of HomEq Servicing Corporation (the
"Servicer"), and further certify as follows:

                  1. This certification is being made pursuant to Section 3.20
of the Pooling and Servicing Agreement, dated as of July 1, 2004 (the
"Agreement"), among Mortgage Asset Securitization Transactions, Inc., as
depositor, HomEq Servicing Corporation, as servicer, and U.S. Bank National
Association, as trustee.

                  2. I have reviewed the activities of the Servicer during the
preceding year and the Servicer's performance under the Agreement and to the
best of my knowledge, based on such review, the Servicer has fulfilled all of
its obligations under the Agreement throughout the year.

                  Capitalized terms not otherwise defined herein have the
meanings set forth in the Agreement.

Dated: _____________, 2004

                                       K-2

<PAGE>

                  IN WITNESS WHEREOF, the undersigned has executed this
Certificate as of _____________.

                                   By:  _____________________________
                                   Name:
                                   Title:

                  I, _________________________, a (an) __________________ of the
Servicer, hereby certify that _________________ is a duly elected, qualified,
and acting _______________________ of the Servicer and that the signature
appearing above is his/her genuine signature.

                  IN WITNESS WHEREOF, the undersigned has executed this
Certificate as of ______________.

                                   By:  ______________________________
                                   Name:
                                   Title:

                                       K-3

<PAGE>

                                    EXHIBIT L
                                    ---------

                             FORMS OF CAP CONTRACTS

                             Available Upon Request

                                       K-4

<PAGE>

                                   SCHEDULE 1

                             MORTGAGE LOAN SCHEDULE

                                [FILED BY PAPER]

                                       K-5

<PAGE>

                                   SCHEDULE 2

                           PREPAYMENT CHARGE SCHEDULE

                             Available Upon Request

                                  Schedule 2-1

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