Document:

THIS  WARRANT  AND THE  SHARES OF  COMMON  STOCK  ISSUABLE  UPON
      EXERCISE  OF THIS  WARRANT  HAVE NOT BEEN  REGISTERED  UNDER THE
      SECURITIES  ACT OF 1933,  AS  AMENDED,  OR ANY STATE  SECURITIES
      LAWS.  THIS WARRANT AND THE COMMON STOCK  ISSUABLE UPON EXERCISE
      OF THIS  WARRANT MAY NOT BE SOLD,  OFFERED FOR SALE,  PLEDGED OR
      HYPOTHECATED  IN  THE  ABSENCE  OF  AN  EFFECTIVE   REGISTRATION
      STATEMENT AS TO THIS WARRANT AND THE COMMON STOCK  ISSUABLE UPON
      EXERCISE OF THIS WARRANT UNDER SAID ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
      TO NATIONAL  INVESTMENT  MANAGERS INC. THAT SUCH REGISTRATION IS
      NOT REQUIRED.

        Right to Purchase up to ____ Shares of Common Stock of
                   National Investment Managers Inc.
              (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No.: DW _________________                            Issue Date:  ________, 2006

      NATIONAL INVESTMENT MANAGERS INC., a corporation  organized under the laws
of the State of Florida  ("NIM"),  hereby  certifies  that, for value  received,
_______, or permitted assigns (the "Holder"), is entitled,  subject to the terms
set forth below, to purchase from the Company (as defined herein) from and after
the Issue Date of this  Warrant and at any time or from time to time before 5:00
p.m.,  New York  time,  through  the  close of  business  __________,  2013 (the
"Expiration  Date"), up to _____ fully paid and  nonassessable  shares of Common
Stock (as  hereinafter  defined),  $0.001 par value per share, at the applicable
Exercise  Price per share (as defined  below).  The number and character of such
shares of Common Stock and the  applicable  Exercise Price per share are subject
to adjustment as provided herein.

      As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

            (a) The term "Company" shall include NIM and any  corporation  which
      shall succeed, or assume the obligations of, NIM hereunder.

            (b) The term "Common Stock" includes (i) the Company's common stock,
      par value $0.001 per share;  and (ii) any other  securities  into which or
      for which any of the securities  described in the preceding clause (i) may
      be  converted  or  exchanged  pursuant  to  a  plan  of  recapitalization,
      reorganization, merger, sale of assets or otherwise.

            (c) The term  "Other  Securities"  refers to any stock  (other  than
      Common  Stock) and other  securities  of the  Company or any other  person
      (corporate or otherwise) which the holder of the Warrant at any time shall
      be entitled to receive,  or shall have  received,  on the  exercise of the
      Warrant,  in lieu of or in addition to Common Stock,  or which at any time
      shall  be  issuable  or shall  have  been  issued  in  exchange  for or in
      replacement of Common Stock or Other  Securities  pursuant to Section 4 or
      otherwise.

<PAGE>

            (d) The  "Exercise  Price"  applicable  under this Warrant  shall be
      $0.50 per share.

            (e) The term  "Subscription  Agreement"  shall mean the subscription
      agreements,  dated September 14, 2006 (the "Subscription  Agreement"),  by
      and between the Holder and the Company.

      1. Exercise of Warrant.

            1.1 Number of Shares Issuable upon Exercise. From and after the date
hereof through and including the  Expiration  Date, the Holder shall be entitled
to receive, upon exercise of this Warrant in whole or in part, by delivery of an
original  or fax copy of an  exercise  notice  in the form  attached  hereto  as
Exhibit  A (the  "Exercise  Notice"),  shares of  Common  Stock of the  Company,
subject to adjustment pursuant to Sections 4 and 5.

            1.2 Fair Market Value. For purposes hereof,  the "Fair Market Value"
of a share of Common Stock as of a particular  date (the  "Determination  Date")
shall mean:

            (a) If the Common Stock is traded on the American  Stock Exchange or
      another  national  exchange or is quoted on the National or Capital Market
      of The Nasdaq Stock Market, Inc. ("Nasdaq"), then the closing or last sale
      price,  respectively,  reported  for the  last  business  day  immediately
      preceding the Determination Date.

            (b) If the Common Stock is not traded on the American Stock Exchange
      or another  national  exchange  or on the  Nasdaq  but is traded  over the
      counter,  then the mean of the average of the closing bid and asked prices
      reported for the last business day immediately preceding the Determination
      Date.

            (c) Except as provided in clause (d) below,  if the Common  Stock is
      not publicly  traded,  then as the Holder and the Company  agree or in the
      absence of agreement by arbitration  in accordance  with the rules then in
      effect of the American Arbitration Association, before a single arbitrator
      to be  chosen  by the  Holder  and the  Company  from a panel  of  persons
      qualified by education and training to pass on the matter to be decided.

            (d)  If  the  Determination  Date  is  the  date  of a  liquidation,
      dissolution  or  winding  up,  or any event  deemed  to be a  liquidation,
      dissolution  or winding up pursuant  to the  Company's  charter,  then all
      amounts to be payable per share to holders of the Common Stock pursuant to
      the charter in the event of such  liquidation,  dissolution or winding up,
      plus all other  amounts to be  payable  per share in respect of the Common
      Stock in liquidation under the charter,  assuming for the purposes of this
      clause  (d) that all of the  shares of Common  Stock  then  issuable  upon
      exercise of the Warrant are outstanding at the Determination Date.

                                       2
<PAGE>

            1.3 Company  Acknowledgment.  The Company  will,  at the time of the
exercise of the Warrant,  upon the request of the holder hereof  acknowledge  in
writing its  continuing  obligation to afford to such holder any rights to which
such holder shall continue to be entitled after such exercise in accordance with
the  provisions  of this  Warrant.  If the  holder  shall  fail to make any such
request,  such failure shall not affect the continuing obligation of the Company
to afford to such holder any such rights.

            1.4 Trustee for Warrant  Holders.  In the event that a bank or trust
company  shall have been  appointed  as trustee  for the  holders of the Warrant
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of a warrant agent (as  hereinafter  described) and shall accept,  in
its own name for the account of the Company or such  successor  person as may be
entitled  thereto,  all  amounts  otherwise  payable  to  the  Company  or  such
successor,  as the case may be, on  exercise  of this  Warrant  pursuant to this
Section 1.

      2. Procedure for Exercise.

      The Company agrees that the shares of Common Stock purchased upon exercise
of this  Warrant  shall be deemed to be issued to the Holder as the record owner
of such  shares as of the close of  business  on the date on which this  Warrant
shall have been  surrendered  and  payment  made for such  shares in  accordance
herewith.  As soon as practicable  after the exercise of this Warrant in full or
in part, and in any event within three (3) business days thereafter, the Company
at its expense  (including the payment by it of any applicable issue taxes) will
cause to be issued in the name of and delivered to the Holder, or as such Holder
(upon  payment by such Holder of any  applicable  transfer  taxes) may direct in
compliance with applicable  securities  laws, a certificate or certificates  for
the number of duly and validly issued,  fully paid and  nonassessable  shares of
Common  Stock (or Other  Securities)  to which such Holder  shall be entitled on
such exercise,  plus, in lieu of any fractional share to which such holder would
otherwise be entitled,  cash equal to such fraction  multiplied by the then Fair
Market  Value  of one  full  share,  together  with  any  other  stock  or other
securities and property  (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

      3. Effect of Reorganization, Etc.; Adjustment of Exercise Price.

            3.1 Reorganization,  Consolidation, Merger, Etc. In case at any time
or from  time to time,  the  Company  shall  (a)  effect a  reorganization,  (b)
consolidate  with or  merge  into  any  other  person,  or (c)  transfer  all or
substantially all of its properties or assets to any other person under any plan
or arrangement  contemplating the dissolution of the Company, then, in each such
case,  as a condition  to the  consummation  of such a  transaction,  proper and
adequate  provision  shall be made by the  Company  whereby  the  Holder of this
Warrant,  on the exercise  hereof as provided in Section 1 at any time after the
consummation of such  reorganization,  consolidation  or merger or the effective
date of such  dissolution,  as the case may be,  shall  receive,  in lieu of the
Common  Stock (or Other  Securities)  issuable  on such  exercise  prior to such
consummation or such effective date, the stock and other securities and property
(including  cash) to which  such  Holder  would  have  been  entitled  upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant,  immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

                                       3
<PAGE>

            3.2  Dissolution.  In the event of any  dissolution  of the  Company
following the transfer of all or substantially  all of its properties or assets,
the Company,  concurrently with any distributions  made to holders of its Common
Stock,  shall at its expense  deliver or cause to be delivered to the Holder the
stock and other  securities  and property  (including  cash,  where  applicable)
receivable  by the Holder of the  Warrant  pursuant to Section  3.1,  or, if the
Holder shall so instruct the Company,  to a bank or trust  company  specified by
the Holder and having its  principal  office in New York,  NY as trustee for the
Holder of the Warrant (the "Trustee").

            3.3 Continuation of Terms. Upon any  reorganization,  consolidation,
merger or transfer (and any dissolution  following any transfer)  referred to in
this  Section 3, this  Warrant  shall  continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property  receivable on the exercise of this Warrant after the  consummation  of
such   reorganization,   consolidation  or  merger  or  the  effective  date  of
dissolution  following  any such  transfer,  as the case  may be,  and  shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer,  the person acquiring all or substantially all of the
properties  or assets of the  Company,  whether  or not such  person  shall have
expressly  assumed  the terms of this  Warrant as  provided in Section 4. In the
event  this  Warrant  does not  continue  in full  force  and  effect  after the
consummation of the transactions described in this Section 3, then the Company's
securities and property  (including  cash, where  applicable)  receivable by the
Holders  of  the  Warrant  will  be  delivered  to  Holder  or  the  Trustee  as
contemplated by Section 3.2.

            3.4  Extraordinary  Events Regarding Common Stock. In the event that
the Company shall (a) issue additional  shares of the Common Stock as a dividend
or other distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common  Stock,  or (c)  combine its  outstanding  shares of the Common
Stock into a smaller  number of shares of the Common  Stock,  then, in each such
event,  the Exercise  Price  shall,  simultaneously  with the  happening of such
event,  be adjusted by multiplying  the then Exercise  Price by a fraction,  the
numerator  of which  shall be the number of shares of Common  Stock  outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common  Stock  outstanding  immediately  after such event,  and the
product so obtained shall  thereafter be the Exercise Price then in effect.  The
Exercise Price, as so adjusted,  shall be readjusted in the same manner upon the
happening of any successive  event or events described herein in this Section 4.
The  number of shares of Common  Stock  that the  holder of this  Warrant  shall
thereafter,  on the  exercise  hereof as  provided  in Section 1, be entitled to
receive shall be increased to a number  determined by multiplying  the number of
shares of Common  Stock that would  otherwise  (but for the  provisions  of this
Section 4) be issuable on such exercise by a fraction of which (a) the numerator
is the  Exercise  Price that would  otherwise  (but for the  provisions  of this
Section 4) be in effect, and (b) the denominator is the Exercise Price in effect
on the date of such exercise.

            3.5 Share  Issuance  Below  Exercise  Price.  Except for an Excepted
Issuance  (as  defined  in the  Subscription  Agreement),  in the event that the
Company  shall issue any Common  Stock,  prior to the complete  exercise of this
Warrant for a consideration less than the Exercise Price that would be in effect
at the time of such issue,  then,  and  thereafter  successively  upon each such
issue,  the Exercise Price shall be reduced to such other lower issue price. For
purposes of this adjustment,  the issuance of any security or debt instrument of
the Company  carrying the right to convert such security or debt instrument into
Common Stock or of any warrant,  right or option to purchase  Common Stock shall
result  in an  adjustment  to  the  Exercise  Price  upon  the  issuance  of the
above-described  security, debt instrument,  warrant, right, or option and again
at any time  upon any  subsequent  issuances  of shares  of  Common  Stock  upon
exercise of such  conversion  or purchase  rights if such issuance is at a price
lower than the Exercise Price in effect upon such issuance. The reduction of the
Exercise Price  described in this Section 3.5 is in addition to the other rights
of the Holder described in the Subscription Agreement.

                                       4
<PAGE>

      4.  Certificate  as to  Adjustments.  In each  case of any  adjustment  or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the  Warrant,  the Company at its expense  will  promptly  cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with the terms of the  Warrant  and  prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the facts upon which such  adjustment  or  readjustment  is based,  including  a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold,  (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding,  and (c) the Exercise Price
and the number of shares of Common  Stock to be received  upon  exercise of this
Warrant,  in effect  immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant.  The Company will  forthwith
mail a copy of each  such  certificate  to the  holder  of the  Warrant  and any
Warrant agent of the Company (appointed pursuant to Section 9 hereof).

      5.  Reservation  of Stock,  Etc.,  Issuable on  Exercise  of Warrant.  The
Company will at all times  reserve and keep  available,  solely for issuance and
delivery  on the  exercise  of the  Warrant,  shares of  Common  Stock (or Other
Securities) from time to time issuable on the exercise of the Warrant.

      6. Assignment;  Exchange of Warrant. Subject to compliance with applicable
securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred  by any  registered  holder hereof (a  "Transferor")  in whole or in
part.  On the  surrender  for exchange of this  Warrant,  with the  Transferor's
endorsement  in  the  form  of  Exhibit  B  attached  hereto  (the   "Transferor
Endorsement  Form") and together with evidence  reasonably  satisfactory  to the
Company  demonstrating  compliance with applicable  securities laws, which shall
include,  without  limitation,  the  provision  of  a  legal  opinion  from  the
Transferor's  counsel (at the  Company's  expense)  that such transfer is exempt
from the  registration  requirements  of applicable  securities  laws,  and with
payment by the  Transferor  of any  applicable  transfer  taxes)  will issue and
deliver  to or on the  order of the  Transferor  thereof a new  Warrant  of like
tenor, in the name of the Transferor and/or the transferee(s)  specified in such
Transferor  Endorsement Form (each a "Transferee"),  calling in the aggregate on
the face or faces thereof for the number of shares of Common Stock called for on
the face or faces of the Warrant so surrendered by the Transferor.

      7. Replacement of Warrant. On receipt of evidence reasonably  satisfactory
to the Company of the loss,  theft,  destruction  or  mutilation of this Warrant
and, in the case of any such loss,  theft or  destruction  of this  Warrant,  on
delivery of an indemnity agreement or security  reasonably  satisfactory in form
and amount to the Company or, in the case of any such  mutilation,  on surrender
and  cancellation  of this Warrant,  the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

                                       5
<PAGE>

      8. Warrant Agent. The Company may, by written notice to the each Holder of
the Warrant,  appoint an agent for the purpose of issuing Common Stock (or Other
Securities)  on the exercise of this Warrant  pursuant to Section 1,  exchanging
this  Warrant  pursuant to Section 7, and  replacing  this  Warrant  pursuant to
Section 8, or any of the foregoing,  and thereafter any such issuance,  exchange
or replacement, as the case may be, shall be made at such office by such agent.

      9. Transfer on the Company's  Books.  Until this Warrant is transferred on
the books of the Company,  the Company may treat the registered holder hereof as
the absolute  owner hereof for all purposes,  notwithstanding  any notice to the
contrary.

      10. Notices, Etc. All notices and other communications from the Company to
the  Holder  of this  Warrant  shall be  mailed  by first  class  registered  or
certified mail,  postage prepaid,  at such address as may have been furnished to
the Company in writing by such Holder or, until any such Holder furnishes to the
Company an  address,  then to, and at the  address  of, the last  Holder of this
Warrant who has so furnished an address to the Company.

      11.  Miscellaneous.  This  Warrant  and any term  hereof  may be  changed,
waived,  discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought.  This Warrant shall be governed by and  construed in accordance  with
the laws of State of New York without regard to principles of conflicts of laws.
Any action brought  concerning  the  transactions  contemplated  by this Warrant
shall be brought only in the state  courts of New York or in the federal  courts
located in the state of New York; provided,  however, that the Holder may choose
to waive this  provision and bring an action  outside the state of New York. The
individuals  executing  this Warrant on behalf of the Company agree to submit to
the  jurisdiction  of such courts and waive trial by jury. The prevailing  party
shall be entitled to recover from the other party its reasonable attorney's fees
and  costs.  In the event  that any  provision  of this  Warrant  is  invalid or
unenforceable  under any applicable  statute or rule of law, then such provision
shall be deemed  inoperative  to the extent that it may conflict  therewith  and
shall be deemed  modified to conform  with such statute or rule of law. Any such
provision  which  may prove  invalid  or  unenforceable  under any law shall not
affect the validity or  enforceability  of any other  provision of this Warrant.
The headings in this Warrant are for purposes of reference  only,  and shall not
limit  or  otherwise  affect  any  of  the  terms  hereof.   The  invalidity  or
unenforceability  of any provision hereof shall in no way affect the validity or
enforceability  of any other provision  hereof.  The Company  acknowledges  that
legal counsel  participated in the  preparation of this Warrant and,  therefore,
stipulates  that the rule of  construction  that  ambiguities are to be resolved
against the drafting  party shall not be applied in the  interpretation  of this
Warrant to favor any party against the other party.

                                       6
<PAGE>

Registration  Rights.  The shares of Common Stock issuable upon exercise of this
Warrant are entitled to the  registration  rights set forth in the  Subscription
Agreement.  All  terms,   representations,   warranties  and  covenants  of  the
Subscription Agreement are incorporated by reference herein.

         IN WITNESS  WHEREOF,  the Company has  executed  this Warrant as of the
date first written above.

                                    NATIONAL INVESTMENT MANAGERS INC.

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

                                       7
<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO:   NATIONAL INVESTMENT MANAGERS INC.

      Attention: Chief Financial Officer

      The  undersigned,  pursuant to the  provisions  set forth in the  attached
Warrant (No.____),  hereby irrevocably elects to purchase ________ shares of the
Common Stock covered by such Warrant.

      The undersigned herewith makes payment of the full Exercise Price for such
shares  at  the  price  per  share  provided  for  in  such  Warrant,  which  is
$___________.  Such payment takes the form of $__________ in lawful money of the
United States.

      The undersigned  requests that the  certificates for such shares be issued
in the name of, and delivered to  ______________________________________________
whose address is___________________________________________.

      The  undersigned  represents and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as amended  (the  "Securities  Act") or  pursuant  to an  exemption  from
registration under the Securities Act.

Dated:
      ----------------------        --------------------------------------------
                                    (Signature must conform to name of holder
                                    as specified on the face of the Warrant)

                                    Address:
                                              ----------------------------------

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

                                      A-1
<PAGE>

                                    EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To Be Signed Only On Transfer Of Warrant)

      For value received,  the undersigned hereby sells,  assigns, and transfers
unto the  person(s)  named  below  under  the  heading  "Transferees"  the right
represented  by the within  Warrant to  purchase  the  percentage  and number of
shares of Common  Stock of  National  Investment  Managers  Inc.  into which the
within Warrant relates specified under the headings "Percentage Transferred" and
"Number Transferred,"  respectively,  opposite the name(s) of such person(s) and
appoints each such person Attorney to transfer its respective right on the books
of National  Investment  Managers  Inc. with full power of  substitution  in the
premises.

<TABLE>
<CAPTION>

                                                                                 Percentage               Number
Transferees                               Address                                Transferred            Transferred

<S>                                       <C>                                   <C>                  <C>

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

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

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

--------------------------------------    -----------------------------------    -----------------    ----------------
</TABLE>

Dated:
      ----------------------        --------------------------------------------
                                    (Signature must conform to name of holder
                                    as specified on the face of the Warrant)

                                    Address:
                                            ------------------------------------

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

                                    SIGNED IN THE PRESENCE OF:

                                    --------------------------------------------
                                                       (Name)

ACCEPTED AND AGREED:
[TRANSFEREE]

------------------------------
         (Name)

                                       B-1Unassociated Document

    
       

      
        

        

      

       

       

      HSI
        ASSET
        SECURITIZATION CORPORATION,

      Depositor,

       

       

      WMC
        MORTGAGE CORP.,

      Originator,

       

       

      WELLS
        FARGO BANK, N.A.,

      Servicer,
        Master Servicer, Securities Administrator and Custodian,

       

       

      DEUTSCHE
        BANK NATIONAL TRUST COMPANY,

      Trustee

       

      and

       

      CLAYTON
        FIXED INCOME SERVICES INC.,

      Credit
        Risk Manager

       

       

      POOLING
        AND SERVICING AGREEMENT

       

      Dated
        as
        of July 1, 2006

       

       

      HSI
        ASSET
        SECURITIZATION CORPORATION TRUST 2006-WMC1

       

       

      MORTGAGE
        PASS-THROUGH CERTIFICATES,

      SERIES 2006-WMC1

       

       

       

      
        

        

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      TABLE
        OF
        CONTENTS

       

      Page

       

      
        	
                ARTICLE
                  I

                 

                DEFINITIONS

              
	 	 	 
	
                ARTICLE
                  II

                 

                CONVEYANCE
                  OF MORTGAGE LOANS;

                REPRESENTATIONS
                  AND WARRANTIES

              
	 	 	 
	
                Section
                  2.01

              	
                Conveyance
                  of Mortgage Loans

              	
                49

              
	
                Section
                  2.02

              	
                Acceptance
                  by the Custodian of the Mortgage Loans

              	
                53

              
	
                Section
                  2.03

              	
                Representations,
                  Warranties and Covenants of the Originator and the Servicer; Remedies
                  for
                  Breaches of Representations and Warranties with Respect to the
                  Mortgage
                  Loans

              	
                54

              
	
                Section
                  2.04

              	
                Execution
                  and Delivery of Certificates

              	
                57

              
	
                Section
                  2.05

              	
                REMIC
                  Matters

              	
                58

              
	
                Section
                  2.06

              	
                Representations
                  and Warranties of the Depositor

              	
                58

              
	 	 	 
	
                ARTICLE
                  III

                 

                ADMINISTRATION
                  AND SERVICING

                OF
                  MORTGAGE LOANS

              
	 	 	 
	
                Section
                  3.01

              	
                Servicer
                  to Service Mortgage Loans

              	
                59

              
	
                Section
                  3.02

              	
                Subservicing
                  Agreements between Servicer and Subservicers; Use of
                  Subcontractors

              	
                61

              
	
                Section
                  3.03

              	
                Successor
                  Subservicers

              	
                63

              
	
                Section
                  3.04

              	
                Liability
                  of the Servicer

              	
                63

              
	
                Section
                  3.05

              	
                No
                  Contractual Relationship between Subservicers and the Master
                  Servicer

              	
                63

              
	
                Section
                  3.06

              	
                Assumption
                  or Termination of Subservicing Agreements by Master
                  Servicer

              	
                63

              
	
                Section
                  3.07

              	
                Collection
                  of Certain Mortgage Loan Payments

              	
                64

              
	
                Section
                  3.08

              	
                Subservicing
                  Accounts

              	
                67

              
	
                Section
                  3.09

              	
                Collection
                  of Taxes, Assessments and Similar Items; Escrow Accounts

              	
                67

              
	
                Section
                  3.10

              	
                Collection
                  Account

              	
                68

              
	
                Section
                  3.11

              	
                Withdrawals
                  from the Collection Account

              	
                69

              
	
                Section
                  3.12

              	
                Investment
                  of Funds in the Collection Account, Escrow Accounts and the Distribution
                  Account

              	
                71

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  3.13

              	
                Maintenance
                  of Hazard Insurance and Errors and Omissions and Fidelity
                  Coverage

              	
                72

              
	
                Section
                  3.14

              	
                Enforcement
                  of Due-On-Sale Clauses; Assumption Agreements

              	
                73

              
	
                Section
                  3.15

              	
                Realization
                  upon Defaulted Mortgage Loans

              	
                74

              
	
                Section
                  3.16

              	
                Release
                  of Mortgage Files

              	
                76

              
	
                Section
                  3.17

              	
                Title,
                  Conservation and Disposition of REO Property

              	
                77

              
	
                Section
                  3.18

              	
                Notification
                  of Adjustments

              	
                78

              
	
                Section
                  3.19

              	
                Access
                  to Certain Documentation and Information Regarding the Mortgage
                  Loans

              	
                79

              
	
                Section
                  3.20

              	
                Documents,
                  Records and Funds in Possession of the Servicer to Be Held for
                  the
                  Trustee

              	
                79

              
	
                Section
                  3.21

              	
                Servicing
                  Compensation

              	
                79

              
	
                Section
                  3.22

              	
                Report
                  on Assessment of Compliance with Relevant Servicing
                  Criteria.

              	
                80

              
	
                Section
                  3.23

              	
                Report
                  on Attestation of Compliance with Relevant Servicing
                  Criteria.

              	
                81

              
	
                Section
                  3.24

              	
                Annual
                  Officer’s Certificates.

              	
                82

              
	
                Section
                  3.25

              	
                Master
                  Servicer to Act as Servicer

              	
                84

              
	
                Section
                  3.26

              	
                Compensating
                  Interest

              	
                84

              
	
                Section
                  3.27

              	
                Credit
                  Reporting; Gramm-Leach-Bliley Act

              	
                85

              
	
                Section
                  3.28

              	
                [Reserved]

              	
                85

              
	
                Section
                  3.29

              	
                Notifications
                  to Parties.

              	
                85

              
	
                Section
                  3.30

              	
                Indemnification.

              	
                85

              
	 	 	 
	
                ARTICLE
                  IV

                 

                DISTRIBUTIONS
                  AND

                ADVANCES
                  BY THE SERVICER

              
	 	 	 
	
                Section
                  4.01

              	
                Advances

              	
                86

              
	
                Section
                  4.02

              	
                Priorities
                  of Distribution

              	
                87

              
	
                Section
                  4.03

              	
                Monthly
                  Statements to Certificateholders

              	
                92

              
	
                Section
                  4.04

              	
                Certain
                  Matters Relating to the Determination of LIBOR

              	
                95

              
	
                Section
                  4.05

              	
                Allocation
                  of Applied Realized Loss Amounts

              	
                95

              
	
                Section
                  4.06

              	
                Supplemental
                  Interest Trust.

              	
                95

              
	
                Section
                  4.07

              	
                Rights
                  of the Swap Counterparty.

              	
                97

              
	
                Section
                  4.08

              	
                Termination
                  Receipts.

              	
                97

              
	 	 	 
	
                ARTICLE
                  V

                 

                THE
                  CERTIFICATES

              
	 	 	 
	
                Section
                  5.01

              	
                The
                  Certificates

              	
                99

              
	
                Section
                  5.02

              	
                Certificate
                  Register; Registration of Transfer and Exchange of
                  Certificates

              	
                100

              
	
                Section
                  5.03

              	
                Mutilated,
                  Destroyed, Lost or Stolen Certificates

              	
                106

              
	
                Section
                  5.04

              	
                Persons
                  Deemed Owners

              	
                106

              
	
                Section
                  5.05

              	
                Access
                  to List of Certificateholders’ Names and Addresses

              	
                106

              
	
                Section
                  5.06

              	
                Maintenance
                  of Office or Agency

              	
                107

              

      

       

      
        
          
          

        

        
          -ii-

          
            

          

        

        
          
          

        

      

       

      
        	
                ARTICLE
                  VI

                 

                THE
                  DEPOSITOR AND THE SERVICER

              
	 	 	 
	
                Section
                  6.01

              	
                Respective
                  Liabilities of the Depositor and the Servicer

              	
                107

              
	
                Section
                  6.02

              	
                Merger
                  or Consolidation of the Depositor or the Servicer

              	
                107

              
	
                Section
                  6.03

              	
                Limitation
                  on Liability of the Depositor, the Servicer and Others.

              	
                107

              
	
                Section
                  6.04

              	
                Limitation
                  on Resignation of the Servicer.

              	
                108

              
	
                Section
                  6.05

              	
                Additional
                  Indemnification by the Servicer; Third Party Claims.

              	
                108

              
	
                Section
                  6.06

              	
                Compliance
                  with Regulation AB; Cooperation of Parties

              	
                109

              
	 	 	 
	
                ARTICLE
                  VII

                 

                DEFAULT

              
	 	 	 
	
                Section
                  7.01

              	
                Events
                  of Default

              	
                110

              
	
                Section
                  7.02

              	
                Master
                  Servicer to Act; Appointment of Successor

              	
                112

              
	
                Section
                  7.03

              	
                Notification
                  to Certificateholders

              	
                114

              
	 	 	 
	
                ARTICLE
                  VIII

                 

                CONCERNING
                  THE TRUSTEE

              
	 	 	 
	
                Section
                  8.01

              	
                Duties
                  of the Trustee

              	
                114

              
	
                Section
                  8.02

              	
                Certain
                  Matters Affecting the Trustee

              	
                115

              
	
                Section
                  8.03

              	
                Trustee
                  Not Liable for Certificates or Mortgage Loans

              	
                117

              
	
                Section
                  8.04

              	
                Trustee
                  May Own Certificates

              	
                117

              
	
                Section
                  8.05

              	
                Trustee’s
                  Fees Indemnification and Expenses

              	
                117

              
	
                Section
                  8.06

              	
                Eligibility
                  Requirements for the Trustee

              	
                118

              
	
                Section
                  8.07

              	
                Resignation
                  and Removal of the Trustee

              	
                119

              
	
                Section
                  8.08

              	
                Successor
                  Trustee

              	
                119

              
	
                Section
                  8.09

              	
                Merger
                  or Consolidation of the Trustee

              	
                120

              
	
                Section
                  8.10

              	
                Appointment
                  of Co-Trustee or Separate Trustee

              	
                120

              
	
                Section
                  8.11

              	
                Tax
                  Matters

              	
                121

              
	
                Section
                  8.12

              	
                Commission
                  Reporting

              	
                125

              
	
                Section
                  8.13

              	
                Tax
                  Classification of the Excess Reserve Fund Account and the Supplemental
                  Interest Trust

              	
                132

              
	 	 	 
	
                ARTICLE
                  IX

                 

                ADMINISTRATION
                  OF THE MORTGAGE LOANS

                BY
                  THE MASTER SERVICER AND THE CREDIT RISK MANAGER

              
	 	 	 
	
                Section
                  9.01

              	
                Duties
                  of the Master Servicer; Enforcement of Servicer’s
                  Obligations.

              	
                132

              

      

       

      
        
          
          

        

        
          -iii-

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  9.02

              	
                [Reserved]

              	
                134

              
	
                Section
                  9.03

              	
                [Reserved]

              	
                134

              
	
                Section
                  9.04

              	
                Maintenance
                  of Fidelity Bond and Errors and Omissions Insurance.

              	
                134

              
	
                Section
                  9.05

              	
                Representations
                  and Warranties of the Master Servicer

              	
                134

              
	
                Section
                  9.06

              	
                Master
                  Servicer Events of Default

              	
                136

              
	
                Section
                  9.07

              	
                Waiver
                  of Default.

              	
                137

              
	
                Section
                  9.08

              	
                Successor
                  to the Master Servicer.

              	
                137

              
	
                Section
                  9.09

              	
                Compensation
                  of the Master Servicer.

              	
                139

              
	
                Section
                  9.10

              	
                Merger
                  or Consolidation.

              	
                139

              
	
                Section
                  9.11

              	
                Resignation
                  of the Master Servicer.

              	
                139

              
	
                Section
                  9.12

              	
                Assignment
                  or Delegation of Duties by the Master Servicer.

              	
                139

              
	
                Section
                  9.13

              	
                Limitation
                  on Liability of the Master Servicer.

              	
                140

              
	
                Section
                  9.14

              	
                Indemnification;
                  Third Party Claims.

              	
                140

              
	
                Section
                  9.15

              	
                Duties
                  of the Credit Risk Manager.

              	
                141

              
	
                Section
                  9.16

              	
                Limitation
                  Upon Liability of the Credit Risk Manager.

              	
                142

              
	
                Section
                  9.17

              	
                Removal
                  and Resignation of Credit Risk Manager.

              	
                142

              
	 	 	 
	
                ARTICLE
                  X

                 

                CONCERNING
                  THE SECURITIES ADMINISTRATOR

              
	 	 	 
	
                Section
                  10.01

              	
                Duties
                  of Securities Administrator.

              	
                143

              
	
                Section
                  10.02

              	
                Certain
                  Matters Affecting the Securities Administrator.

              	
                144

              
	
                Section
                  10.03

              	
                Securities
                  Administrator Not Liable for Certificates or Mortgage
                  Loans.

              	
                145

              
	
                Section
                  10.04

              	
                Securities
                  Administrator May Own Certificates.

              	
                146

              
	
                Section
                  10.05

              	
                Securities
                  Administrator’s Fees and Expenses.

              	
                146

              
	
                Section
                  10.06

              	
                Eligibility
                  Requirements for Securities Administrator.

              	
                147

              
	
                Section
                  10.07

              	
                Resignation
                  and Removal of Securities Administrator.

              	
                147

              
	
                Section
                  10.08

              	
                Successor
                  Securities Administrator.

              	
                148

              
	
                Section
                  10.09

              	
                Merger
                  or Consolidation of Securities Administrator.

              	
                149

              
	
                Section
                  10.10

              	
                Assignment
                  or Delegation of Duties by the Securities Administrator.

              	
                149

              
	 	 	 
	
                ARTICLE
                  XI

                 

                TERMINATION

              
	 	 	 
	
                Section
                  11.01

              	
                Termination
                  upon Liquidation or Purchase of the Mortgage Loans

              	
                150

              
	
                Section
                  11.02

              	
                Final
                  Distribution on the Certificates

              	
                150

              
	
                Section
                  11.03

              	
                Additional
                  Termination Requirements

              	
                152

              
	 	 	 
	
                ARTICLE
                  XII

                 

                MISCELLANEOUS
                  PROVISIONS

              
	 	 	 
	
                Section
                  12.01

              	
                Amendment

              	
                152

              
	
                Section
                  12.02

              	
                Recordation
                  of Agreement; Counterparts

              	
                154

              

      

       

      
        
          
          

        

        
          -iv-

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  12.03

              	
                Governing
                  Law

              	
                155

              
	
                Section
                  12.04

              	
                Intention
                  of Parties

              	
                155

              
	
                Section
                  12.05

              	
                Notices

              	
                156

              
	
                Section
                  12.06

              	
                Severability
                  of Provisions

              	
                157

              
	
                Section
                  12.07

              	
                Assignment

              	
                157

              
	
                Section
                  12.08

              	
                Limitation
                  on Rights of Certificateholders

              	
                157

              
	
                Section
                  12.09

              	
                Inspection
                  and Audit Rights

              	
                158

              
	
                Section
                  12.10

              	
                Certificates
                  Nonassessable and Fully Paid

              	
                158

              
	
                Section
                  12.11

              	
                Rule of
                  Construction

              	
                159

              
	
                Section
                  12.12

              	
                Waiver
                  of Jury Trial

              	
                159

              

      

    

     

     

     

    
      

      
        
          
            
            

          

          
            -v-

            
              

            

          

          
            
            

          

        

      

      

       

      SCHEDULES

       

      
        	
                Schedule I

              	
                Mortgage
                  Loan Schedule

              

      

       

      
        	
                Schedule II

              	
                Representations
                  and Warranties of Wells Fargo Bank, N.A., as Servicer as
                  to Corporate Matters

              

      

       

      
        	
                Schedule III

              	
                Representations
                  and Warranties of the Originator as to Corporate
                  Matters

              

      

       

      
        	
                Schedule IV

              	
                Representations
                  and Warranties of the Originator with respect to the Individual
                  Mortgage
                  Loans

              

      

       

      EXHIBITS

       

      
        	
                Exhibit A

              	
                Form
                  of Class A and Class M
                  Certificates

              

      

       

      
        	
                Exhibit B

              	
                Form
                  of Class P Certificate

              

      

       

      
        	
                Exhibit C

              	
                Form
                  of Class R Certificate

              

      

       

      
        	
                Exhibit D

              	
                Form
                  of Class X Certificate

              

      

       

      
        	
                Exhibit E

              	
                Form
                  of Initial Certification of
                  Custodian

              

      

       

      
        	
                Exhibit F

              	
                Form
                  of Document Certification and Exception Report of
                  Custodian

              

      

       

      
        	
                Exhibit G

              	
                Form
                  of Residual Transfer Affidavit

              

      

       

      
        	
                Exhibit H

              	
                Form
                  of Transferor Certificate

              

      

       

      
        	
                Exhibit I-A

              	
                Form
                  of Rule 144A Investment Letter

              

      

       

      
        	
                Exhibit
                  I-B

              	
                Form
                  of Regulation S Investment Letter

              

      

       

      
        	
                Exhibit J

              	
                Form
                  of Request for Release

              

      

       

      
        	
                Exhibit K

              	
                Contents
                  for Each Mortgage File

              

      

       

      
        	
                Exhibit L

              	
                Form
                  of Sarbanes-Oxley Certification to be Provided by Master Servicer
                  (or
                  other Certification Party) signing
                  Form 10-K

              

      

       

      
        	
                Exhibit M

              	
                Form
                  of Servicer (or Servicing Function Participant) Back-Up
                  Certification

              

      

       

      
        	
                Exhibit
                  N-1

              	
                Standard
                  File Layout - Master Servicing (Form of Monthly Remittance
                  Advice)

              

      

       

      
        	
                Exhibit
                  N-2

              	
                Standard
                  File Layout for Delinquency
                  Reporting

              

      

       

      
        	
                Exhibit
                  N-3

              	
                Form
                  332 Realized Loss Report

              

      

       

      
        
          
          

        

        
          -vi-

          
            

          

        

        
          
          

        

      

       

      
        	
                Exhibit
                  O

              	
                Form
                  of Swap Agreement

              

      

       

      
        	
                Exhibit
                  P 

              	
                Form
                  of Cap Agreement

              

      

       

      
        	
                Exhibit
                  Q

              	
                Master
                  Mortgage Loan Purchase and Interim Servicing
                  Agreement

              

      

       

      
        	
                Exhibit
                  R-1

              	
                Form
                  of Watchlist Report

              

      

       

      
        	
                Exhibit
                  R-2

              	
                Form
                  of Loss Severity Report

              

      

       

      
        	
                Exhibit
                  R-3

              	
                Form
                  of Prepayment Charges Report

              

      

       

      
        	
                Exhibit
                  R-4

              	
                Form
                  of Analytics Report

              

      

       

      
        	
                Exhibit
                  S

              	
                Servicing
                  Criteria Matrix

              

      

       

      
        	
                Exhibit
                  T

              	
                Transaction
                  Parties

              

      

       

      
        	
                Exhibit
                  U

              	
                Form
                  of Annual Compliance Certificate

              

      

       

      
        	
                Exhibit
                  V

              	
                Additional
                  Form 10-D Disclosure

              

      

       

      
        	
                Exhibit
                  W

              	
                Additional
                  Form 10-K Disclosure

              

      

       

      
        	
                Exhibit
                  X

              	
                Form
                  8-K Disclosure Information

              

      

       

      
        	
                Exhibit
                  Y

              	
                Additional
                  Disclosure Notification

              

      

       

      
        	
                Exhibit
                  Z

              	
                Class
                  Notional Balance Schedule for Class A-IO
                  Certificates

              

      

       

      

       

      

      

      
        
          
            
            

          

          
            -vii-

            
              

            

          

          
            
            

          

        

      

      

      THIS
        POOLING AND SERVICING AGREEMENT, dated as of July 1, 2006, among HSI ASSET
        SECURITIZATION CORPORATION, as depositor (the “Depositor”),
        WMC
        MORTGAGE CORP., a California corporation, as originator (the “Originator”),
        WELLS
        FARGO BANK, N.A., a national banking association, as servicer (in such capacity,
        the “Servicer”)
        as
        master servicer (in such capacity, the “Master
        Servicer”)
        as
        securities administrator (in such capacity, the “Securities
        Administrator”)
        and as
        custodian (in such capacity, “the Custodian”),
        CLAYTON FIXED INCOME SERVICES INC., as credit risk manager (the “Credit
        Risk Manager”),
        and
        DEUTSCHE BANK NATIONAL TRUST COMPANY, a national banking association, as
        trustee
        (the “Trustee”).

       

      WITNESSETH:

       

      In
        consideration of the mutual agreements herein contained, the parties hereto
        agree as follows:

       

      PRELIMINARY
        STATEMENT

       

      The
        Securities Administrator on behalf of the Trust Fund (exclusive of (i) the
        Swap
        Agreement, (ii) the Cap Agreement (iii) the right to receive and the obligation
        to pay Basis Risk Carryover Amounts, (iv) the Excess Reserve Fund Account,
        (v)
        the Supplemental Interest Trust and the Supplemental Interest Trust Account
        and
        (vi) the obligation to pay Class I Shortfalls (collectively, the “Excluded
        Trust Assets”)
        shall
        elect that the segregated asset pool within the Trust Fund be treated for
        federal income tax purposes as comprising four real estate mortgage investment
        conduits under Section 860D of the Code (each a “REMIC”
or,
        in
        the alternative, “REMIC
        1,”
        REMIC
        2,”
“REMIC
        3” and “REMIC
        4,”;
        REMIC
        4 also being referred to herein as the “Upper
        Tier REMIC.”)
        Any
        inconsistencies or ambiguities in this Agreement or in the administration
        of
        this Agreement shall be resolved in a manner that preserves the validity
        of such
        REMIC election. 

       

      Each
        Certificate, other than the Class R Certificates, represents ownership of
        a
        regular interest in the Upper Tier REMIC for purposes of the REMIC Provisions.
        In addition, each Certificate, other than the Class R, Class X and Class
        P
        Certificates, represents (i) the right to receive payments with respect to
        any
        Basis Risk Carryover Amounts and (ii) the obligation to pay Class I Shortfalls.
        The Class R Certificate represents ownership of the sole Class of residual
        interest in each of REMIC 1, REMIC 2, REMIC 3 and the Upper Tier REMIC for
        purposes of the REMIC Provisions.

       

      The
        Upper Tier REMIC shall hold as its assets the uncertificated Lower Tier
        Interests in REMIC 3, other than the Class LT3-R interest, and each such
        Lower
        Tier Interest is hereby designated as a regular interest in REMIC 3 for purposes
        of the REMIC Provisions. REMIC 3 shall hold as its assets the uncertificated
        Lower Tier Interests in REMIC 2, and each such Lower Tier Interest is hereby
        designated as a regular interest in REMIC 2. REMIC 2 shall hold as its assets
        the uncertificated Lower Tier Interests in REMIC 1, and each such Lower Tier
        Interest is hereby designated as a regular interest in REMIC 1. REMIC 1 shall
        hold as its assets the property of the Trust Fund other than the Lower Tier
        Interests in REMIC 1, REMIC 2 and REMIC 3 and the Excluded Trust
        Assets.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      REMIC
        1:

       

      The
        following table sets forth the designations, principal balances and interest
        rates for each interest in REMIC 1, each of which (other than the Class LT1-R
        Lower Tier Interest) is hereby designated as a regular interest in REMIC
        1 (the
“REMIC 1 Regular Interests”):

       

      
        	
                Class
                  Designation

              	
                Initial Principal 

                Balance

              	
                 

                Interest
                  Rate

              
	
                LT1-A

              	
                $      38,972,132.00

              	
                (1)

              
	
                LT1-F1

              	
                $        7,376,245.00

              	
                (2)

              
	
                LT1-V1

              	
                $        7,376,245.00

              	
                (3)

              
	
                LT1-F2

              	
                $        8,521,185.00

              	
                (2)

              
	
                LT1-V2

              	
                $        8,521,185.00

              	
                (3)

              
	
                LT1-F3

              	
                $        9,660,734.00

              	
                (2)

              
	
                LT1-V3

              	
                $        9,660,734.00

              	
                (3)

              
	
                LT1-F4

              	
                $      10,782,603.50

              	
                (2)

              
	
                LT1-V4

              	
                $      10,782,603.50

              	
                (3)

              
	
                LT1-F5

              	
                $      11,873,908.50

              	
                (2)

              
	
                LT1-V5

              	
                $      11,873,908.50

              	
                (3)

              
	
                LT1-F6

              	
                $      12,921,568.00

              	
                (2)

              
	
                LT1-V6

              	
                $      12,921,568.00

              	
                (3)

              
	
                LT1-F7

              	
                $      13,911,612.00

              	
                (2)

              
	
                LT1-V7

              	
                $      13,911,612.00

              	
                (3)

              
	
                LT1-F8

              	
                $      14,830,897.50

              	
                (2)

              
	
                LT1-V8

              	
                $      14,830,897.50

              	
                (3)

              
	
                LT1-F9

              	
                $      15,152,948.50

              	
                (2)

              
	
                LT1-V9

              	
                $      15,152,948.50

              	
                (3)

              
	
                LT1-F10

              	
                $      14,423,349.50

              	
                (2)

              
	
                LT1-V10

              	
                $      14,423,349.50

              	
                (3)

              
	
                LT1-F11

              	
                $      13,727,350.50

              	
                (2)

              
	
                LT1-V11

              	
                $      13,727,350.50

              	
                (3)

              
	
                LT1-F12

              	
                $      13,064,955.50

              	
                (2)

              
	
                LT1-V12

              	
                $      13,064,955.50

              	
                (3)

              
	
                LT1-F13

              	
                $      12,434,539.50

              	
                (2)

              
	
                LT1-V13

              	
                $      12,434,539.50

              	
                (3)

              
	
                LT1-F14

              	
                $      11,834,559.00

              	
                (2)

              
	
                LT1-V14

              	
                $      11,834,559.00

              	
                (3)

              
	
                LT1-F15

              	
                $      11,263,530.50

              	
                (2)

              
	
                LT1-V15

              	
                $      11,263,530.50

              	
                (3)

              
	
                LT1-F16

              	
                $      10,720,081.50

              	
                (2)

              
	
                LT1-V16

              	
                $      10,720,081.50

              	
                (3)

              
	
                LT1-F17

              	
                $      10,202,867.00

              	
                (2)

              
	
                LT1-V17

              	
                $      10,202,867.00

              	
                (3)

              
	
                LT1-F18

              	
                $        9,716,791.00

              	
                (2)

              

      

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      
        	
                Class
                  Designation

              	
                Initial Principal 

                Balance

              	
                 

                Interest
                  Rate

              
	
                LT1-V18

              	
                $        9,716,791.00

              	
                (3)

              
	
                LT1-F19

              	
                $      12,035,646.50

              	
                (2)

              
	
                LT1-V19

              	
                $      12,035,646.50

              	
                (3)

              
	
                LT1-F20

              	
                $      16,251,011.00

              	
                (2)

              
	
                LT1-V20

              	
                $      16,251,011.00

              	
                (3)

              
	
                LT1-F21

              	
                $      14,623,171.50

              	
                (2)

              
	
                LT1-V21

              	
                $      14,623,171.50

              	
                (3)

              
	
                LT1-F22

              	
                $      13,162,082.50

              	
                (2)

              
	
                LT1-V22

              	
                $      13,162,082.50

              	
                (3)

              
	
                LT1-F23

              	
                $      11,864,331.00

              	
                (2)

              
	
                LT1-V23

              	
                $      11,864,331.00

              	
                (3)

              
	
                LT1-F24

              	
                $        9,440,706.50

              	
                (2)

              
	
                LT1-V24

              	
                $        9,440,706.50

              	
                (3)

              
	
                LT1-F25

              	
                $        6,302,700.00

              	
                (2)

              
	
                LT1-V25

              	
                $        6,302,700.00

              	
                (3)

              
	
                LT1-F26

              	
                $        5,949,689.00

              	
                (2)

              
	
                LT1-V26

              	
                $        5,949,689.00

              	
                (3)

              
	
                LT1-F27

              	
                $        5,807,260.00

              	
                (2)

              
	
                LT1-V27

              	
                $        5,807,260.00

              	
                (3)

              
	
                LT1-F28

              	
                $        5,859,001.00

              	
                (2)

              
	
                LT1-V28

              	
                $        5,859,001.00

              	
                (3)

              
	
                LT1-F29

              	
                $        5,480,297.50

              	
                (2)

              
	
                LT1-V29

              	
                $        5,480,297.50

              	
                (3)

              
	
                LT1-F30

              	
                $        5,121,735.00

              	
                (2)

              
	
                LT1-V30

              	
                $        5,121,735.00

              	
                (3)

              
	
                LT1-F31

              	
                $        4,788,982.00

              	
                (2)

              
	
                LT1-V31

              	
                $        4,788,982.00

              	
                (3)

              
	
                LT1-F32

              	
                $        4,479,206.50

              	
                (2)

              
	
                LT1-V32

              	
                $        4,479,206.50

              	
                (3)

              
	
                LT1-F33

              	
                $        4,191,921.50

              	
                (2)

              
	
                LT1-V33

              	
                $        4,191,921.50

              	
                (3)

              
	
                LT1-F34

              	
                $        3,856,074.50

              	
                (2)

              
	
                LT1-V34

              	
                $        3,856,074.50

              	
                (3)

              
	
                LT1-F35

              	
                $        3,476,457.00

              	
                (2)

              
	
                LT1-V35

              	
                $        3,476,457.00

              	
                (3)

              
	
                LT1-F36

              	
                $        3,277,342.00

              	
                (2)

              
	
                LT1-V36

              	
                $        3,277,342.00

              	
                (3)

              
	
                LT1-F37

              	
                $        3,092,335.00

              	
                (2)

              
	
                LT1-V37

              	
                $        3,092,335.00

              	
                (3)

              
	
                LT1-F38

              	
                $        2,917,910.00

              	
                (2)

              
	
                LT1-V38

              	
                $        2,917,910.00

              	
                (3)

              
	
                LT1-F39

              	
                $        2,753,414.00

              	
                (2)

              
	
                LT1-V39

              	
                $        2,753,414.00

              	
                (3)

              
	
                LT1-F40

              	
                $        2,598,353.00

              	
                (2)

              

      

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      
        	
                Class
                  Designation

              	
                Initial Principal 

                Balance

              	
                 

                Interest
                  Rate

              
	
                LT1-V40

              	
                $        2,598,353.00

              	
                (3)

              
	
                LT1-F41

              	
                $        2,452,149.50

              	
                (2)

              
	
                LT1-V41

              	
                $        2,452,149.50

              	
                (3)

              
	
                LT1-F42

              	
                $      41,869,243.50

              	
                (2)

              
	
                LT1-V42

              	
                $      41,869,243.50

              	
                (3)

              
	
                LT1-R

              	
                (4)

              	
                (4)

              

      

       

      
        	 	
                (1)

              	
                For
                  any Distribution Date (and the related Interest Accrual Period)
                  the
                  interest rate for the Class LT1-A Interest shall be the Net WAC
                  Rate.
                  

              

      

       

      
        	 	
                (2)

              	
                For
                  any Distribution Date (and the related Interest Accrual Period)
                  the
                  interest rate for each of these Lower Tier Interests shall be the
                  lesser
                  of (i) 11.10% and (ii) the product of (a) the Net WAC Rate and
                  (b)
                  2.

              

      

       

      
        	 	
                (3)

              	
                For
                  any Distribution Date (and the related Interest Accrual Period)
                  the
                  interest rate for each of these Lower Tier Interests shall be the
                  excess,
                  if any, of (i) the product of (a) the Net WAC Rate and (b) 2, over
                  (ii)
                  11.10%.

              

      

       

      
        	 	
                (4)

              	
                The
                  Class LT1-R interest shall not have a principal amount and shall
                  not bear
                  interest. The Class LT1-R interest is hereby designated as the
                  sole class
                  of residual interest in REMIC 1.

              

      

       

      On
        each
        Distribution Date, the Securities Administrator shall first pay or charge
        as an
        expense of REMIC 1 all expenses of the Trust Fund for such Distribution Date,
        other than any Net Swap Payment or Swap Termination Payment required to be
        made
        from the Trust Fund.

       

      On
        each
        Distribution Date the Securities Administrator shall distribute the Interest
        Remittance Amount (net of expenses described in the preceding paragraph)
        with
        respect to each of the Lower Tier Interests in REMIC 1 based on the
        above-described interest rates.

       

      On
        each
        Distribution Date, the Securities Administrator shall distribute the Principal
        Remittance Amount with respect to the Lower Tier Interests in REMIC 1, first
        to
        the Class LT1-A Interest until its principal balance is reduced to zero,
        and
        then sequentially, to the other Lower Tier Interests in REMIC 1 in ascending
        order of their numerical class designation, and, with respect to each pair
        of
        classes having the same numerical designation, in equal amounts to each such
        class, until the principal balance of each such class is reduced to zero.
        All
        losses on the Mortgage Loans shall be allocated among the Lower Tier Interests
        in REMIC 1 in the same manner that principal distributions are
        allocated.

       

      On
        each
        Distribution Date, the Securities Administrator shall distribute the Prepayment
        Charges collected during the preceding Prepayment Period to the Class LT1-V42
        Lower Tier Interests. 

       

      
        
          
            
            

          

          
            -4-

            
              

            

          

          
            
            

          

        

      

      

      REMIC
        2:

       

      The
        following table sets forth the designations, principal balances, and interest
        rates for each interest in REMIC 2, each of which (other than the LT2-R
        Interest) is hereby designated as a regular interest in REMIC 2 (the “REMIC 2
        Regular Interests”):

      

        
          	
                  Class
                    

                  Designation

                	 	
                  Initial Principal

                  Balance

                	 	
                  Interest
                    Rate

                
	
                  LT2-1A-IO

                	 	
                  $      42,083,000.00

                	 	
                  (1)

                
	
                  LT2-2A-IO

                	 	
                  $      42,083,000.00

                	 	
                  (1)

                
	
                  LT2-3A-IO

                	 	
                  $    126,249,000.00

                	 	
                  (1)

                
	
                  LT2-Pool

                	 	
                  (2)

                	 	
                  (1)

                
	
                  LT2-IO-Swap

                	 	
                  (3)

                	 	
                  (3)

                
	
                  LT2-R

                	 	
                  (4)

                	 	
                  (4)

                

        

      

      
         

        
          	 	
                  (1)

                	
                  For
                    any Distribution Date (and the related Accrual Period) the interest
                    rate
                    for each of these REMIC 2 Regular Interests is a per annum rate
                    equal to
                    the weighted average of the interest rates on the Lower Tier
                    Interests in
                    REMIC 1 for such Distribution Date, provided,
                    however, that
                    (i) for any Distribution Date on which the LT2-IO-Swap Interest
                    is
                    entitled to a portion of the interest accruals on the Lower Tier
                    Interests
                    in REMIC 1 with an “F “ in its designation, as described in footnote three
                    below, such weighted average shall be computed by first subjecting
                    the
                    rate on such Lower Tier Interest in REMIC 1 to a cap equal to
                    Swap LIBOR
                    for such Distribution Date.

                

        

         

        
          	 	
                  (2)

                	
                  This
                    interest shall have an initial principal balance equal to the
                    excess of
                    (a) the aggregate Principal Balance of the Mortgage Loans as
                    of the
                    Cut-off Date over (b) the sum of the initial principal balances
                    of the
                    interests in REMIC 2 containing the letters “A-IO” in their class
                    designations.

                

        

         

        
          	 	
                  (3)

                	
                  The
                    LT2-IO-Swap Interest is an interest only class that does not
                    have a
                    principal balance. For only those Distribution Dates listed in
                    the first
                    column in the table below, the LT2-IO-Swap Interest shall be
                    entitled to
                    interest accrued on the Lower Tier Interest in REMIC 1 listed
                    in the
                    second column in the table below, at a per annum rate equal to
                    the excess,
                    if any, of (i) the interest rate for such Lower Tier Interest
                    in REMIC 1
                    for such Distribution Date over (ii) Swap LIBOR for such Distribution
                    Date.

                

        

        

          
            	
                    Distribution
                      Dates

                  	
                    REMIC
                      1
                      Class Designation

                  
	
                    2

                  	
                    Class
                      LT1-F1

                  
	
                    2-3

                  	
                    Class
                      LT1-F2

                  
	
                    2-4

                  	
                    Class
                      LT1-F3

                  
	
                    2-5

                  	
                    Class
                      LT1-F4

                  
	
                    2-6

                  	
                    Class
                      LT1-F5

                  
	
                    2-7

                  	
                    Class
                      LT1-F6

                  
	
                    2-8

                  	
                    Class
                      LT1-F7

                  
	
                    2-9

                  	
                    Class
                      LT1-F8

                  
	
                    2-10

                  	
                    Class
                      LT1-F9

                  
	
                    2-11

                  	
                    Class
                      LT1-F10

                  
	
                    2-12

                  	
                    Class
                      LT1-F11

                  
	
                    2-13

                  	
                    Class
                      LT1-F12

                  
	
                    2-14

                  	
                    Class
                      LT1-F13

                  
	
                    2-15

                  	
                    Class
                      LT1-F14

                  
	
                    2-16

                  	
                    Class
                      LT1-F15

                  
	
                    2-17

                  	
                    Class
                      LT1-F16

                  
	
                    2-18

                  	
                    Class
                      LT1-F17

                  
	
                    2-19

                  	
                    Class
                      LT1-F18

                  

          

           

          
            
              
              

            

            
              -5-

              
                

              

            

            
              
              

            

          

           

          
            	
                    Distribution
                      Dates

                  	
                    REMIC
                      1
                      Class Designation

                  
	
                    2-20

                  	
                    Class
                      LT1-F19

                  
	
                    2-21

                  	
                    Class
                      LT1-F20

                  
	
                    2-22

                  	
                    Class
                      LT1-F21

                  
	
                    2-23

                  	
                    Class
                      LT1-F22

                  
	
                    2-24

                  	
                    Class
                      LT1-F23

                  
	
                    2-25

                  	
                    Class
                      LT1-F24

                  
	
                    2-26

                  	
                    Class
                      LT1-F25

                  
	
                    2-27

                  	
                    Class
                      LT1-F26

                  
	
                    2-28

                  	
                    Class
                      LT1-F27

                  
	
                    2-29

                  	
                    Class
                      LT1-F28

                  
	
                    2-30

                  	
                    Class
                      LT1-F29

                  
	
                    2-31

                  	
                    Class
                      LT1-F30

                  
	
                    2-32

                  	
                    Class
                      LT1-F31

                  
	
                    2-34

                  	
                    Class
                      LT1-F32

                  
	
                    2-35

                  	
                    Class
                      LT1-F33

                  
	
                    2-36

                  	
                    Class
                      LT1-F34

                  
	
                    2-37

                  	
                    Class
                      LT1-F35

                  
	
                    2-38

                  	
                    Class
                      LT1-F36

                  
	
                    2-39

                  	
                    Class
                      LT1-F37

                  
	
                    2-40

                  	
                    Class
                      LT1-F38

                  
	
                    2-41

                  	
                    Class
                      LT1-F39

                  
	
                    2-42

                  	
                    Class
                      LT1-F40

                  
	
                    2-43

                  	
                    Class
                      LT1-F41

                  
	
                    2-44

                  	
                    Class
                      LT1-F42

                  

          

        

      

      

        
          	 	
                  (4)

                	
                  The
                    LT2-R Interest shall not have a principal amount and shall not
                    bear
                    interest. The LT2-R interest is hereby designated as the sole
                    class of
                    residual interest in REMIC 2.

                

        

      

       

      On
        each
        Distribution Date, interest distributable in respect of the REMIC 1 Interests
        for such Distribution Date shall be distributed to the Interests in REMIC
        2 at
        the rates shown above.

       

      On
        each
        Distribution Date, all Realized Losses and all payments of principal in respect
        of the Mortgage Loans shall be allocated to the LT2-Pool Interest until the
        principal balance of such Interest is reduced to zero, and then to the Interests
        having the letters “A-IO” in their Class designation in ascending order of their
        numerical designation until the principal balance of each such Interest is
        reduced to zero.

       

      On
        each
        Distribution Date, the Securities Administrator shall distribute the Prepayment
        Charges collected during the preceding Prepayment Period to the LT2-3A-IO
        Interest. 

       

      REMIC
        3:

       

      The
        following table sets forth the designations, principal balances, and interest
        rates for each interest in REMIC 3, each of which (other than the LT3-R
        Interest) is hereby designated as a regular interest in REMIC 3 (the “REMIC 3
        Regular Interests”):

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      
        	
                Class
                  

                Designation

              	
                Initial
                  Principal Balance

              	
                Interest
                  Rate

              	
                Corresponding
                  Class 

                of
                  Certificates

              
	
                LT3-A-1

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                A-1

              
	
                LT3-A-2

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                A-2

              
	
                LT3-A-3

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                A-3

              
	
                LT3-A-4

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                A-4

              
	
                LT3-A-5

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                A-5

              
	
                LT3-M-1
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-1

              
	
                LT3-M-2
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-2

              
	
                LT3-M-3
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-3

              
	
                LT3-M-4
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-4

              
	
                LT3-M-5
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-5

              
	
                LT3-M-6
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-6

              
	
                LT3-M-7
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-7

              
	
                LT3-M-8
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-8

              
	
                LT3-M-9
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-9

              
	
                LT3-M-10
                  

              	
                1⁄2
                  Corresponding Class balance

              	
                (1)

              	
                M-10

              
	
                LT3-Q

              	
                (2)

              	
                (1)

              	
                X

              
	
                LT3-A-IO

              	
                (3)

              	
                (3)

              	
                A-IO

              
	
                LT3-IO-Swap

              	
                (4)

              	
                (4)

              	
                N/A

              
	
                LT3-R

              	
                (5)

              	
                (5)

              	
                R

              

      

      

        
          	 	
                  (1)

                	
                  This
                    interest rate with respect to any Distribution Date (and the
                    related
                    Accrual Period) for each of these REMIC 3 Regular Interests is
                    a per annum
                    rate equal to the greater of (i) 0.00% and (ii) the weighted average
                    of the interest rates on each REMIC 2 Interest having an “A-IO” in its
                    designation and the LT2-Pool Interest, computed after reducing
                    the rate
                    payable on each such REMIC 2 Interest having an “A-IO” in its Class
                    designation by 1.50% for any Distribution Date on which interest
                    is
                    payable on its Corresponding REMIC 3 A-IO Interest (as described
                    in
                    footnote (3) below).

                

        

         

        
          	 	
                  (2)

                	
                  This
                    interest shall have an initial principal balance equal to the
                    excess of
                    (a) the aggregate Principal Balance of the Mortgage Loans as
                    of the
                    Cut-off Date over (b) the sum of the initial principal balances
                    of the
                    interests in REMIC 3 (other than any interest-only
                    classes).

                

        

         

        
          	 	
                  (3)

                	
                  This
                    REMIC 3 Interest is an interest-only Interest and does not have
                    a
                    principal balance. For each Distribution Date on the chart below,
                    this
                    REMIC 3 Interest shall be entitled to interest payable on the
                    REMIC 2
                    Interest corresponding to such Distribution Dates at a rate equal
                    to the
                    lesser of (i) 1.50% and (ii) the interest rate of the REMIC 2
                    Interest
                    corresponding to such Distribution Date.

                

        

      

       

      
        	
                Distribution
                  Date occurring in

              	
                Corresponding
                  

                REMIC
                  2 Interest

              
	
                August
                  2006 - January 2007

              	
                LT2-1A-IO
                  - LT2-3A-IO

              
	
                February
                  2007 - July 2007

              	
                LT2-2A-IO
                  - LT2-3A-IO

              
	
                August
                  2007 - November 2007

              	
                LT2-3A-IO

              

      

      

        
          	 	
                  (4)

                	
                  The
                    LT3-IO-Swap Interest shall not have a principal balance, but
                    shall be
                    entitled to receive, on each Distribution Date, 100% of the interest
                    distributable on the Class LT2-IO-Swap Interest in REMIC 2.
                    

                

        

        

        
          	 	
                  (5)

                	
                  The
                    LT3-R Interest shall not have a principal amount and shall not
                    bear
                    interest. The LT3-R interest is hereby designated as the sole
                    class of
                    residual interest in REMIC 3.

                

        

      

       

      On
        each Distribution Date, interest distributable in respect of the REMIC 2
        Regular
        Interests shall be distributed with respect to each of the Interests in REMIC
        3
        based on the above-described interest rates, provided, however,
        that interest that accrues on the LT3-Q Interest shall be deferred to the
        extent
        necessary to make the principal distributions described in priority (i) below
        for such Distribution Date. Any interest so deferred shall itself bear interest
        at the interest rate for the LT3-Q Interest.

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

      On
        each Distribution Date, the principal distributed on the REMIC 2 Regular
        Interests (together with an amount equal to the interest deferred on the
        Class
        LT3-Q Interest for such Distribution Date) shall be distributed, and Realized
        Losses shall be allocated, among the Interests in REMIC 3 in the following
        order
        of priority:

       

      (i)           first,
        to
        each interest in REMIC 3 having a Corresponding Class in REMIC 4 (other than
        a
        REMIC 3 interest having an “A-IO” in its class designation) until the
        outstanding principal amount of each such interest equals one-half of the
        outstanding principal amount of the Corresponding Class of Certificates for
        such
        interest immediately after such Distribution Date;

       

      (ii)           finally,
        to the Class LT3-Q Interest, any remaining amounts.

       

      On
        each
Distribution
        Date,
        the Securities Administrator shall distribute the Prepayment Charges collected
        during the preceding Prepayment Period to the LT3-Q Interest 

       

      Upper
        Tier REMIC

       

      The
        Upper
        Tier REMIC shall issue the following Classes of Upper Tier REMIC Regular
        Interests and each such interest, other than the Class R Interest, is hereby
        designated as a regular interest in the Upper Tier REMIC.

       

      Upper
        Tier REMIC

      

        
          	
                  Upper
                    Tier REMIC 

                  Class Designation

                	 	
                  Upper
                    Tier REMIC 

                  Interest
                    Rate and 

                  Corresponding
                    

                  Class Interest
                    Rate

                	 	
                  Initial Upper Tier

                  REMIC Principal

                  Amount and

                  Corresponding

                  Class Certificate

                  Balance or Class

                  Notional Balance

                	 	
                  Corresponding

                  Class of
                    Certificates

                
	
                  Class A-1

                	 	
                  (1)

                	 	
                  $370,019,000

                	 	
                  Class A-1(11)

                
	
                  Class A-2

                	 	
                  (2)

                	 	
                  $  90,908,000

                	 	
                  Class A-2(11)

                
	
                  Class A-3

                	 	
                  (3)

                	 	
                  $167,427,000

                	 	
                  Class A-3(11)

                
	
                  Class A-4

                	 	
                  (4)

                	 	
                  $  45,810,000

                	 	
                  Class A-4(11)

                
	
                  Class A-5

                	 	
                  (5)

                	 	
                  $    8,000,000

                	 	
                  Class A-5(11)

                
	
                  Class
                    A-IO

                	 	
                  (6)

                	 	
                  $210,415,000

                	 	
                  Class A-IO(11)

                
	
                  Class M-1

                	 	
                  (7)

                	 	
                  $  28,195,000

                	 	
                  Class M-1(11)

                
	
                  Class M-2

                	 	
                  (7)

                	 	
                  $  26,091,000

                	 	
                  Class M-2(11)

                
	
                  Class M-3

                	 	
                  (7)

                	 	
                  $  15,992,000

                	 	
                  Class M-3(11)

                
	
                  Class M-4

                	 	
                  (7)

                	 	
                  $  13,887,000

                	 	
                  Class M-4(11)

                

        

         

        
          
            
            

          

          
            -8-

            
              

            

          

          
            
            

          

        

         

        
          	
                  Upper
                    Tier REMIC 

                  Class Designation

                	 	
                  Upper
                    Tier REMIC 

                  Interest
                    Rate and 

                  Corresponding
                    

                  Class Interest
                    Rate

                	 	
                  Initial Upper Tier

                  REMIC Principal

                  Amount and

                  Corresponding

                  Class Certificate

                  Balance or Class

                  Notional Balance

                	 	
                  Corresponding

                  Class of
                    Certificates

                
	
                  Class M-5

                	 	
                  (7)

                	 	
                  $  13,046,000

                	 	
                  Class M-5(11)

                
	
                  Class M-6

                	 	
                  (7)

                	 	
                  $  12,625,000

                	 	
                  Class M-6(11)

                
	
                  Class M-7

                	 	
                  (7)

                	 	
                  $  11,362,000

                	 	
                  Class M-7(11)

                
	
                  Class M-8

                	 	
                  (7)

                	 	
                  $  10,521,000

                	 	
                  Class M-8(11)

                
	
                  Class M-9

                	 	
                  (7)

                	 	
                  $    6,312,000

                	 	
                  Class M-9(11)

                
	
                  Class M-10

                	 	
                  (7)

                	 	
                  $    8,417,000

                	 	
                  Class M-10(11)

                
	
                  Class X

                	 	
                  (8)

                	 	
                  (8)

                	 	
                  Class X

                
	
                  Class R

                	 	
                  (9)

                	 	
                  (9)

                	 	
                  Class R

                
	
                  Class P

                	 	
                  (10)

                	 	
                  (10)

                	 	
                  Class
                    P

                

        

      

       

      
        	
                (1)

              	
                The
                  Class A-1 Interest will bear interest during each Interest Accrual
                  Period
                  at a per annum rate equal to (a) on or prior to the Optional
                  Termination Date, the lesser of (i) LIBOR plus the applicable
                  Interest Margin and (ii) the Available Funds Cap or (b) after
                  the Optional Termination Date, the lesser of (i) LIBOR plus the
                  applicable Interest Margin and (ii) the Available Funds Cap. For
                  purposes of the REMIC Provisions, the reference to “Available Funds Cap”
                  in clause (ii) of the preceding sentence shall be deemed a reference
                  to
                  the REMIC 3 Net Funds Cap; therefore, on any Distribution Date
                  on which
                  the Interest Rate for the Class A-1 Certificates exceeds the REMIC
                  3 Net
                  Funds Cap, interest accruals based on such excess shall be treated
                  as
                  having been paid from the Excess Reserve Fund Account or the Supplemental
                  Interest Trust, as applicable; on any Distribution Date on which
                  the
                  Interest Rate on the Class A-1 Certificates is based on the Available
                  Funds Cap, the amount of interest that would have accrued on the
                  Class A-1
                  Certificates if the REMIC 3 Net Funds Cap were substituted for
                  the
                  Available Funds Cap shall be treated as having been paid by the
                  Class A-1
                  Certificateholders to the Supplemental Interest Trust, all pursuant
                  to and
                  as further provided in Section 8.11
                  hereof.

              

      

       

      
        	
                (2)

              	
                The
                  Class A-2 Interest will bear interest during each Interest Accrual
                  Period
                  at a per annum rate equal to (a) on or prior to the Optional
                  Termination Date, the lesser of (i) LIBOR plus the applicable
                  Interest Margin and (ii) the Available Funds Cap or (b) after
                  the Optional Termination Date, the lesser of (i) LIBOR plus the
                  applicable Interest Margin and (ii) the Available Funds Cap. For
                  purposes of the REMIC Provisions, the reference to “Available Funds Cap”
                  in clause (ii) of the preceding sentence shall be deemed a reference
                  to
                  the REMIC 3 Net Funds Cap; therefore, on any Distribution Date
                  on which
                  the Interest Rate for the Class A-2 Certificates exceeds the REMIC
                  3 Net
                  Funds Cap, interest accruals based on such excess shall be treated
                  as
                  having been paid from the Excess Reserve Fund Account or the Supplemental
                  Interest Trust, as applicable; on any Distribution Date on which
                  the
                  Interest Rate on the Class A-2 Certificates is based on the Available
                  Funds Cap, the amount of interest that would have accrued on the
                  Class A-2
                  Certificates if the REMIC 3 Net Funds Cap were substituted for
                  the
                  Available Funds Cap shall be treated as having been paid by the
                  Class A-2
                  Certificateholders to the Supplemental Interest Trust, all pursuant
                  to and
                  as further provided in Section 8.11
                  hereof.

              

      

       

      
        	
                (3)

              	
                The
                  Class A-3 Interest will bear interest during each Interest Accrual
                  Period
                  at a per annum rate equal to (a) on or prior to the Optional
                  Termination Date, the lesser of (i) LIBOR plus the applicable
                  Interest Margin and (ii) the Available Funds Cap or (b) after
                  the Optional Termination Date, the lesser of (i) LIBOR plus the
                  applicable Interest Margin and (ii) the Available Funds Cap. For
                  purposes of the REMIC Provisions, the reference to “Available Funds Cap”
                  in clause (ii) of the preceding sentence shall be deemed a reference
                  to
                  the REMIC 3 Net Funds Cap; therefore, on any Distribution Date
                  on which
                  the Interest Rate for the Class A-3 Certificates exceeds the REMIC
                  3 Net
                  Funds Cap, interest accruals based on such excess shall be treated
                  as
                  having been paid from the Excess Reserve Fund Account or the Supplemental
                  Interest Trust, as applicable; on any Distribution Date on which
                  the
                  Interest Rate on the Class A-3 Certificates is based on the Available
                  Funds Cap, the amount of interest that would have accrued on the
                  Class A-3
                  Certificates if the REMIC 3 Net Funds Cap were substituted for
                  the
                  Available Funds Cap shall be treated as having been paid by the
                  Class A-3
                  Certificateholders to the Supplemental Interest Trust, all pursuant
                  to and
                  as further provided in Section 8.11
                  hereof.

              

      

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      
        	
                (4)

              	
                The
                  Class A-4 Interest will bear interest during each Interest Accrual
                  Period
                  at a per annum rate equal to (a) on or prior to the Optional
                  Termination Date, the lesser of (i) LIBOR plus the applicable
                  Interest Margin and (ii) the Available Funds Cap or (b) after
                  the Optional Termination Date, the lesser of (i) LIBOR plus the
                  applicable Interest Margin and (ii) the Available Funds Cap. For
                  purposes of the REMIC Provisions, the reference to “Available Funds Cap”
                  in clause (ii) of the preceding sentence shall be deemed a reference
                  to
                  the REMIC 3 Net Funds Cap; therefore, on any Distribution Date
                  on which
                  the Interest Rate for the Class A-4 Certificates exceeds the REMIC
                  3 Net
                  Funds Cap, interest accruals based on such excess shall be treated
                  as
                  having been paid from the Excess Reserve Fund Account or the Supplemental
                  Interest Trust, as applicable; on any Distribution Date on which
                  the
                  Interest Rate on the Class A-4 Certificates is based on the Available
                  Funds Cap, the amount of interest that would have accrued on the
                  Class A-4
                  Certificates if the REMIC 3 Net Funds Cap were substituted for
                  the
                  Available Funds Cap shall be treated as having been paid by the
                  Class A-4
                  Certificateholders to the Supplemental Interest Trust, all pursuant
                  to and
                  as further provided in Section 8.11
                  hereof

              

      

       

      
        	
                (5)

              	
                The
                  Class A-5 Interest is a principal-only interest that will not accrue
                  interest on its Class Certificate
                  Balance.

              

      

       

      
        	
                (6)

              	
                The
                  Class A-IO Interest will bear interest during each Interest Accrual
                  Period based on its Class Notional Balance at a per annum rate
                  equal to
                  the lesser of (i) 1.50% per annum and (ii) the Class A-IO
                  Available Funds Cap. For purposes of the REMIC Provisions, the
                  reference
                  to the Class A-IO Available Funds Cap in clause (ii) of the preceding
                  sentence shall be deemed a reference to the REMIC A-IO Available
                  Funds
                  Cap; therefore, on any Distribution Date on which the Interest
                  Rate on the
                  Class A-IO Certificates is based on the Class A-IO Available Funds
                  Cap,
                  the amount of interest that would have accrued on the Class A-IO
                  Certificates if the REMIC A-IO Available Funds Cap were substituted
                  for
                  the Class A-IO Available Funds Cap shall be treated as having been
                  paid by
                  the Class A-IO Certificateholders to the Supplemental Interest
                  Trust, all
                  pursuant to and as further provided in Section 8.11 hereof. The
                  Class A-IO
                  Certificates will not bear interest after the Distribution Date
                  in October
                  2007.

              

      

       

      
        	
                (7)

              	
                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 and Class M-10 Interests will bear interest during
                  each Interest Accrual Period at a per annum rate equal to (a) on or
                  prior to the Optional Termination Date, the lesser of (i) LIBOR plus
                  the applicable Interest Margin and (ii) the Class M Available Funds
                  Cap or (b) after the Optional Termination Date, the lesser of
                  (i) LIBOR plus the applicable Interest Margin and (ii) the Class
                  M Available Funds Cap. For purposes of the REMIC Provisions, the
                  reference
                  to Class M Available Funds Cap in clause (ii) of the preceding
                  sentence
                  shall be deemed to be a reference to the REMIC 3 Net Funds Cap;
                  therefore,
                  on any Distribution Date on which the Interest Rate for the Class
                  M-1,
                  M-2, M-3, M-4, M-5, M-6, M-7, M-8, M-9 and M-10 Certificates, as
                  applicable, exceeds the REMIC 3 Net Funds Cap, interest accruals
                  based on
                  such excess shall be treated as having been paid from the Excess
                  Reserve
                  Fund Account or the Supplemental Interest Trust, as applicable;
                  on any
                  Distribution Date on which the Interest Rate on the Class M-1,
                  M-2, M-3,
                  M-4, M-5, M-6, M-7, M-8, M-9 and M-10 Certificates, as applicable,
                  is
                  based on the Class M Available Funds Cap, the amount of interest
                  that
                  would have accrued on each such Class of Certificates if the REMIC
                  3 Net
                  Funds Cap were substituted for the Class M Available Funds Cap
                  shall be
                  treated as having been paid by the Class M-1, M-2, M-3, M-4, M-5,
                  M-6,
                  M-7, M-8, M-9 and M-10 Certificateholders, as applicable, to the
                  Supplemental Interest Trust, all pursuant to and as further provided
                  in
                  Section 8.11 hereof. 

              

      

       

      
        	
                (8)

              	
                For
                  purposes of the REMIC Provisions, the Class X Interest shall have
                  an
                  initial principal balance of $13,046,439.92
                  (initial overcollateralization of $13,046,539.92
                  less $100.00 attributable to the Class P Principal Amount), and
                  the right
                  to receive distributions of such amount represents a regular interest
                  in
                  the Upper Tier REMIC. The Class X Certificate shall also comprise
                  two
                  notional components, each of which represents a regular interest
                  in the
                  Upper Tier REMIC. The first such component has a notional balance
                  that
                  will at all times equal the aggregate of the Class Principal Amounts
                  of
                  the Lower Tier Interests in REMIC 3, and, for each Distribution
                  Date (and
                  the related Interest Accrual Period) this notional component shall
                  bear
                  interest at a per annum rate equal to the excess, if any, of (i)
                  (a) the
                  weighted average of the interest rates on the Lower Tier Interests
                  in
                  REMIC 3 (other than any interest-only regular interest) minus (b)
                  the
                  Credit Risk Manager’s Fee Rate, over (ii) the Adjusted Lower Tier WAC. The
                  second notional component represents the right to receive all
                  distributions in respect of the Class LT3-IO-Swap in REMIC 3 (the
“LT4-I”
                  interest). In addition, for purposes of the REMIC Provisions, the
                  Class X
                  Certificate shall represent beneficial ownership of (i) the Excess
                  Reserve
                  Fund Account; (ii) the Supplemental Interest Trust, including the
                  Swap
                  Agreement and (iii) an interest in the notional principal contracts
                  described in Section 8.11 hereof.

              

      

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      
        	
                (9)

              	
                The
                  Class R Interest is the sole Class of residual interest in the Upper
                  Tier REMIC. The Class R Interest is issued without a principal amount
                  does not bear a stated Interest Rate. The Class R Certificate will
                  be
                  issued as a single certificate evidencing the initial Percentage
                  Interest
                  of such Class, and shall represent ownership of each of the Class
                  R, Class
                  LT1-R, Class LT2-R and Class LT3-R
                  Interests.

              

      

       

      
        	
                (10)

              	
                The
                  Class P Interest shall not bear interest at a stated Interest Rate.
                  Prepayment Charges paid with respect to the Mortgage Loans shall
                  be paid
                  to the Class P Certificateholders as provided in Section 4.02(b).
                  For
                  purposes of the REMIC Provisions, the Class P Interest shall represent
                  a
                  regular interest in the Upper Tier REMIC. The Class P Certificate
                  will
                  have a Class P Principal Amount of
                  $100.

              

      

       

      
        	
                (11)

              	
                Each
                  of these Certificates will represent not only the ownership of
                  the
                  Corresponding Class of Upper Tier REMIC Regular Interest but also the
                  right to receive payments from (i) the Excess Reserve Fund Account
                  in
                  respect of any Basis Risk Carryover Amounts and (ii) the Supplemental
                  Interest Trust in respect of proceeds from the Derivative Agreements.
                  For
                  federal income tax purposes, the Securities Administrator will
                  treat a
                  Certificateholder’s right to receive payments from the Excess Reserve Fund
                  Account as payments made pursuant to an a notional principal contract
                  written by the Class X
                  Certificateholders.

              

      

       

      The
        minimum denomination for each Class of Certificates, other than the
        Class P, Class R and the Class X Certificates, will be $25,000 of
        Certificate Balance (notional balance in the case of Class A-IO Certificates)
        ($100,000 with respect to initial investors resident in a Member State of
        the
        European Economic Area subject to Prospectus Directive 2003/71/EC) with integral
        multiples of $1 in excess thereof, except that one Certificate in each
        Class may be issued in a different amount. The minimum denomination for
        each of the Class P and Class X Certificates will be a 10.00%
        Percentage Interest in such Class, and the minimum denomination for the
        Class R Certificates shall be 100% Percentage Interest in such
        Class.

       

      Set
        forth
        below are designations of Classes of Certificates to the categories used
        herein:

      

      
        	
                Book-Entry
                  Certificates

              	
                All
                  Classes of Certificates other than the Physical
                  Certificates.

              
	 	 
	
                Class A
                  Certificates

              	
                Class
                  A-IO, Class A-1, Class A-2, Class A-3, Class  A-4 and Class A-5
                  Certificates.

              
	 	 
	
                Class M
                  Certificates

              	
                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 and
                  Class M-10 Certificates.

              
	 	 
	
                Delay
                  Certificates

              	
                The
                  Class A-IO Certificates.

              
	 	 
	
                ERISA-Restricted

              	 
	
                Certificates

              	
                Any
                  Class M-10, Class P, Class X and Class R Certificates and any Certificate
                  with a rating which falls below the lowest applicable permitted
                  rating
                  under the Underwriters’ Exemption.

              

      

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      
        	
                ERISA-Restricted

              	 
	
                Derivative
                  Certificates

              	
                Any
                  Offered Certificate prior to the termination of the Cap Agreement
                  and the
                  Swap Agreement.

              
	 	 
	
                Interest-Only
                  Certificates

              	
                The
                  Class A-IO Certificates.

              
	 	 
	
                LIBOR
                  Certificates

              	
                Collectively,
                  the Class A-1, Class  A-2, Class A-3, Class  A-4
                  Certificates and any Class M Certificate.

              
	 	 
	
                Non-Delay
                  Certificates

              	
                The
                  Class A Certificates (other than the Class A-IO Certificates),
                  the
                  Class M Certificates and Class X
                  Certificates.

              
	 	 
	
                Offered
                  Certificates

              	
                All
                  Classes of Certificates other than the Private
                  Certificates.

              
	 	 
	
                Principal-Only
                  Certificates

              	
                The
                  Class A-5 Certificates.

              
	 	 
	
                Physical
                  Certificates

              	
                Class P,
                  Class X and Class R Certificates.

              
	 	 
	
                Private
                  Certificates

              	
                Class
                  M-10, Class P, Class X and Class R
                  Certificates.

              
	 	 
	
                Rating
                  Agencies

              	
                Fitch,
                  Moody’s and Standard & Poor’s.

              
	 	 
	
                Regular
                  Certificates

              	
                All
                  Classes of Certificates other than the Class R
                  Certificates.

              
	 	 
	
                Residual
                  Certificates

              	
                Class R
                  Certificates.

              

      

       

      ARTICLE
        I

       

      DEFINITIONS

       

      Whenever
        used in this Agreement, the following words and phrases, unless the context
        otherwise requires, shall have the following meanings:

       

      10-K
        Filing Deadline:
        As
        defined in Section 8.12(a)(ii).

       

      Accepted
        Servicing Practices:
        With
        respect to any Mortgage Loan and the Servicer, the servicing and administration
        of such Mortgage Loan (i) in the same manner in which, and with the same
        care, skill, prudence and diligence with which the Servicer generally services
        and administers similar mortgage loans with similar mortgagors (A) for
        other third parties, giving due consideration to customary and usual standards
        of practice of prudent institutional residential mortgage lenders servicing
        their own mortgage loans or (B) held in the Servicer’s own portfolio,
        whichever standard is higher, and (ii) in accordance with applicable local,
        state and federal laws, rules and regulations.

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

       

      Account:
        Any of
        the Collection Account, the Distribution Account and any Escrow Account,
        and
        with respect to the Supplemental Interest Trust, the Excess Reserve Fund
        Account
        and the Supplemental Interest Trust Account. Each Account shall be an Eligible
        Account.

       

      Additional
        Disclosure Notification:
        The
        form of notice set forth on Exhibit Y.

       

      Additional
        Form 10-D Disclosure:
        As
        defined in Section 8.12(a)(i). 

       

      Additional
        Form 10-K Disclosure:
        As
        defined in Section 8.12(a)(ii). 

       

      Additional
        Termination Event:
        As
        defined in the Cap Agreement or the Swap Agreement, as applicable.

       

      Adjustable
        Rate Mortgage Loan:
        A
        Mortgage Loan which provides for the adjustment of the Mortgage Rate payable
        in
        respect thereto.

       

      Adjusted
        Lower Tier WAC:
        For
        any
        Distribution Date (and the related Accrual Period), an amount equal to (i)
        two,
        multiplied by (ii) the weighted average of the interest rates for such
        Distribution Date for the Class LT3-A-1, LT3-A-2, LT3-A-3, LT3-A-4, LT3-A-5,
        LT3- LT3-M-1, LT3-M-2, LT3-M-3, LT3-M-4, LT3-M-5, LT3-M-6, LT3-M-7, LT3-M-8,
        LT3-M-9, LT3-M-10 and LT3-Q Interests, weighted in proportion to their Class
        Principal Amounts as of the beginning of the related Accrual Period and computed
        by subjecting the rate on the Class LT3-Q Interest to a cap of 0.00%, and
        by
        subjecting the rate on each of the Class LT3-A-1, LT3-A-2, LT3-A-3, LT3-A-4,
        LT3-A-5, LT3-M-1, LT3-M-2, LT3-M-3, LT3-M-4, LT3-M-5, LT3-M-6, LT3-M-7, LT3-M-8,
        LT3-M-9 and LT3-M-10 Interests to a cap that corresponds to the Interest
        Rate
        (determined by substituting the REMIC 3 Net Funds Cap for the applicable
        Available Funds Cap) for the Corresponding Class of Certificates; provided,
        however,
        that
        for each Class of LIBOR Certificates, the Certificate Interest Rate shall
        be
        multiplied by the quotient of (a) the actual number of days in the Interest
        Accrual Period, divided by (b) 30.

       

      Adjustment
        Date:
        As to
        any Adjustable Rate Mortgage Loan, the first Due Date on which the related
        Mortgage Rate adjusts as set forth in the related Mortgage Note and each
        Due
        Date thereafter on which the Mortgage Rate adjusts as set forth in the related
        Mortgage Note.

       

      Advance:
        Any
        P&I Advance or Servicing Advance.

       

      Affected
        Party:
        As
        defined in the Swap Agreement.

       

      Affiliate:
        With
        respect to any Person, any other Person controlling, controlled by or under
        common control with such first Person. For the purposes of this definition,
        “control” 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.

       

      Agreement:
        This
        Pooling and Servicing Agreement and all amendments or supplements
        hereto.

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      Amounts
        Held for Future Distribution:
        As to
        the Certificates on any Distribution Date, the aggregate amount held in the
        Collection Account at the close of business on the related Determination
        Date on
        account of (i) Principal Prepayments, Insurance Proceeds, Condemnation
        Proceeds, Liquidation Proceeds and Subsequent Recoveries on the Mortgage
        Loans
        received after the end of the related Prepayment Period and (ii) all
        Scheduled Payments on the Mortgage Loans due after the end of the related
        Due
        Period.

       

      Applied
        Realized Loss Amount:
        With
        respect to any Distribution Date, the amount, if any, by which the aggregate
        Class Certificate Balance of the LIBOR Certificates and the Principal-Only
        Certificates after distributions of principal on such Certificates on such
        Distribution Date exceeds the aggregate Stated Principal Balance of the Mortgage
        Loans for such Distribution Date.

       

      Appraised
        Value:
        The
        value set forth in an appraisal made in connection with the origination of
        the
        related Mortgage Loan as the value of the Mortgaged Property.

       

      Assignment
        of Mortgage:
        An
        assignment of the Mortgage, notice of transfer or equivalent instrument in
        recordable form (other than the assignee’s name and recording information not
        yet returned from the recording office), reflecting the sale of the Mortgage
        to
        the Trustee.

       

      Available
        Funds:
        With
        respect to any Distribution Date and the Mortgage Loans to the extent received
        by the Master Servicer (x) the sum of (i) all scheduled installments
        of interest (net of the related Expense Fees) and principal due on the Due
        Date
        on such Mortgage Loans in the related Due Period and received by the Servicer
        on
        or prior to the related Determination Date, together with any
        P&I Advances in respect thereof; (ii) all Condemnation Proceeds,
        Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries received
        by
        the Servicer during the related Prepayment Period (in each case, net of
        unreimbursed expenses incurred in connection with a liquidation or foreclosure
        and unreimbursed Advances, if any); (iii) all partial or full prepayments
        on the Mortgage Loans received by the Servicer during the related Prepayment
        Period together with all Compensating Interest paid by the Servicer in
        connection therewith (excluding any Prepayment Charges); (iv) all
        Substitution Adjustment Amounts with respect to the substitutions of Mortgage
        Loans that occur on or prior to the related Determination Date; (v) all
        amounts received with respect to such Distribution Date as the Repurchase
        Price
        in respect of a Mortgage Loan repurchased by the Originator or the Sponsor
        on or
        prior to the related Determination Date; and (vi) the proceeds with respect
        to the termination of the Trust Fund pursuant to clause (a) of
        Section 11.01; reduced by (y) amounts in reimbursement for Advances
        previously made with respect to the Mortgage Loans and other amounts as to
        which
        the Servicer, the Depositor, the Master Servicer, the Credit Risk Manager,
        the
        Securities Administrator or the Trustee are entitled to be paid or reimbursed
        pursuant to this Agreement.

       

      Available
        Funds Cap:
        With
        respect to the Mortgage Loans as of any Distribution Date, the per annum
        rate
        (subject to adjustment based on the actual number of days elapsed in the
        related
        Interest Accrual Period) equal to (x) the weighted average of the Expense
        Adjusted Mortgage Rate for each Mortgage Loan then in effect at the beginning
        of
        the related Due Period (not including for this purpose any Mortgage Loans
        for
        which Principal Prepayments in Full have been received and distributed in
        the
        month prior to that Distribution Date) minus
        (y) a
        percentage equal to the product of (i) a fraction, the numerator of which
        is
        equal to the sum of (a) the Net Derivative Payment or Swap Termination Payment
        (other than a Swap Termination Payment caused by the Swap Counterparty) made
        to
        the Derivative Counterparty with respect to such Due Period and (b) the Senior
        Interest Payment Amount accrued on the Class A-IO Certificates and the
        denominator of which is equal to the aggregate Stated Principal Balance of
        the
        Mortgage Loans as of the beginning of the related Due Period and (ii)
        12.

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      Back-up
        Certification:
        As
        defined in Section 3.24.

       

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

       

      Basis
        Risk Carryover Amount:
        With
        respect to each Class of LIBOR Certificates, as of any Distribution Date,
        the sum of (A) if on such Distribution Date the Interest Rate for any
        Class of LIBOR Certificates is based upon the Available Funds Cap, the
        excess of (i) the amount of interest such Class of Certificates would
        otherwise be entitled to receive on such Distribution Date had such rate
        been
        calculated (x) as the sum of LIBOR and the applicable Interest Margin on
        such
        Class of Certificates for such Distribution Date, over (ii) the amount
        of interest payable on such Class of Certificates at the Available Funds
        Cap for such Distribution Date and (B) the portion of any such excess
        described in clause (A) for such Class of Certificates from all
        previous Distribution Dates not previously paid, together with interest thereon
        at a rate equal the applicable Interest Rate for each such Class of
        Certificates for such Distribution Date. With respect to the Interest-Only
        Certificates, as of any Distribution Date, the sum of (A) if on such
        Distribution Date the Interest Rate of the Interest-Only Certificates is
        based
        on the Class A-IO Available Funds Cap, the excess of (i) the amount of interest
        that the Interest-Only Certificates would otherwise have been entitled to
        receive on such Distribution Date had the Interest Rate equaled 1.50% per
        annum
        over (ii) the amount of interest payable on the Interest-Only Certificates
        if
        subject to the Class A-IO Available Funds Cap for such Distribution Date
        and (B)
        the portion of such excess described in clause (A) for the Interest-Only
        Certificates from all previous Distribution Dates not previously paid, together
        with interest thereon at a rate equal to 1.50% per annum.

       

      Basis
        Risk Payment:
        For any
        Distribution Date, an amount equal to the lesser of (i) the aggregate of
        the Basis Risk Carryover Amounts of the LIBOR Certificates and the Interest-Only
        Certificates for such Distribution Date and (ii) the Class X
        Distributable Amount (prior to any reduction for Basis Risk
        Payments).

       

      Best’s:
        Best’s
        Key Rating Guide, as the same shall be amended from time to time.

       

      Book-Entry
        Certificates:
        As
        specified in the Preliminary Statement.

       

      Business
        Day:
        Any day
        other than (i) Saturday or Sunday, or (ii) a day on which banking and
        savings and loan institutions, in (a) the States of New York, California,
        Maryland or Minnesota, (b) the Commonwealth of Pennsylvania or any other
        State in which the Servicer’s servicing operations are located, or (c) any
        State in which the Corporate Trust Office is located, are authorized or
        obligated by law or executive order to be closed.

      
        
          
          

        

        
          -15-

          
            

          

        

        
          
          

        

      

       

      Cap
        Account:
        The
        sub-account of the Supplemental Interest Trust Account created pursuant to
        Section 4.06(a).

       

      Cap
        Agreement:
        The
        interest rate cap agreement (Reference No. 3253560) entered into by the
        Supplemental Interest Trust and the Cap Counterparty, dated August 4, 2006,
        which agreement provides for the monthly payment specified to the Securities
        Administrator of the Supplemental Interest Trust (for the benefit of
        Certificateholders) commencing with the Distribution Date in February 2007
        and
        ending on the Distribution Date in August 2013, by the Cap Counterparty,
        but
        subject to the conditions set forth therein, together with any schedule,
        confirmations or other agreements relating thereto, attached as Exhibit
        P.

       

      Cap
        Amount:
        With
        respect to each Distribution Date, the amount of any Cap Payment deposited
        into
        the Cap Account.

       

      Cap
        Counterparty:
        The
        counterparty to the Supplemental Interest Trust under the Cap Agreement,
        and any
        successor in interest or its assigns. Initially, the Cap Counterparty shall
        be
        ABN AMRO Bank N.V.

       

      Cap
        Payment:
        With
        respect to each Distribution Date, any payment required to be made by the
        Cap
        Counterparty to the Supplemental Interest Trust pursuant to the terms of
        the Cap
        Agreement.

       

      Cap
        Payment Date:
        For as
        long as the Cap Agreement is in effect or any amounts remain unpaid thereunder,
        the Business Day immediately preceding each Distribution Date.

       

      Cap
        Replacement Receipts:
        As
        defined in Section 4.08(b)(i).

       

      Cap
        Replacement Receipts Account:
        As
        defined in Section 4.08(b)(i).

      

      Cap
        Termination Payment:
        Upon
        the designation of an “Early Termination Date” as defined in the Cap Agreement,
        the payment required to be made by the Cap Counterparty to the Supplemental
        Interest Trust pursuant to the terms of the Cap Agreement and any unpaid
        amounts
        due on previous Cap Payment Dates and accrued interest thereon as provided
        in
        the Cap Agreement, as calculated by the Cap Counterparty and furnished to
        the
        Securities Administrator.

       

      Cap
        Termination Receipts:
        As
        defined in Section 4.08(b)(i).

       

      Cap
        Termination Receipts Account:
        As
        defined in Section 4.08(b)(i).

       

      Certificate:
        Any one
        of the Certificates executed by the Securities Administrator in substantially
        the forms attached hereto as exhibits.

       

      Certificate
        Balance:
        With
        respect to any Certificate, other than a Class A-IO, Class X, Class P
        or Class R Certificate, at any date, the maximum dollar amount of principal
        to which the Holder thereof is then entitled hereunder, such amount being
        equal
        to the Denomination thereof minus all distributions of principal previously
        made
        with respect thereto and in the case of any Class M Certificates, reduced
        by any
        Applied Realized Loss Amounts allocated to such Class of Certificates
        pursuant to Section 4.05; provided,
        however,
        that
        immediately following the Distribution Date on which a Subsequent Recovery
        is
        distributed, the Class Certificate Balances of any Class or Classes of
        Certificates that have been previously reduced by Applied Realized Loss Amounts
        will be increased, in order of seniority, by the amount of any Subsequent
        Recovery distributed on such Distribution Date (up to the amount of Unpaid
        Realized Loss Amount for such Class or Classes for such Distribution Date).
        The Class P Certificates are issued with an initial Class P Principal
        Amount of $100. The Class X and Class R Certificates have no
        Certificate Balance. The Class A-IO Certificates are issued with a Class
        Notional Balance.

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

      

       

      Certificate
        Owner:
        With
        respect to a Book-Entry Certificate, the Person who is the beneficial owner
        of
        such Book-Entry Certificate.

       

      Certificate
        Register:
        The
        register maintained pursuant to Section 5.02.

       

      Certificateholder
        or
Holder:
        The
        person in whose name a Certificate is registered in the Certificate Register,
        except that, solely for the purpose of giving any consent pursuant to this
        Agreement, any Certificate registered in the name of the Depositor or any
        Affiliate of the Depositor shall be deemed not to be Outstanding and the
        Percentage Interest evidenced thereby shall not be taken into account in
        determining whether the requisite amount of Percentage Interests necessary
        to
        effect such consent has been obtained; provided,
        however,
        that if
        any such Person (including the Depositor) owns 100.00% of the Percentage
        Interests evidenced by a Class of Certificates, such Certificates shall be
        deemed to be Outstanding for purposes of any provision hereof that requires
        the
        consent of the Holders of Certificates of a particular Class as a condition
        to the taking of any action hereunder. The Securities Administrator is entitled
        to rely conclusively on a certification of the Depositor or any Affiliate
        of the
        Depositor in determining which Certificates are registered in the name of
        an
        Affiliate of the Depositor.

       

      Certification
        Parties:
        As
        defined in Section 3.24.

       

      Certifying
        Person:
        As
        defined in Section 3.24.

       

      Class:
        All
        Certificates bearing the same class designation as set forth in the Preliminary
        Statement.

       

      Class A-1
        Certificates:
        All
        Certificates bearing the Class designation of “Class A-1”.

       

      Class A-2
        Certificates:
        All
        Certificates bearing the Class designation of “Class A-2”.

       

      Class A-3
        Certificates:
        All
        Certificates bearing the Class designation of “Class A-3”.

       

      Class A-4
        Certificates:
        All
        Certificates bearing the Class designation of “Class A-4”.

      
        
          
          

        

        
          -17-

          
            

          

        

        
          
          

        

      

       

      Class A-5
        Certificates:
        All
        Certificates bearing the Class designation of “Class A-5”.

       

      Class A
        Certificates:
        As
        specified in the Preliminary Statement.

       

      Class A-IO
        Available Funds Cap:
        With
        respect to the Class A-IO Certificates and any Distribution Date, a per annum
        rate equal to (x) the weighted average of the Expense Adjusted Mortgage Rate
        of
        the Mortgage Loans then in effect on the beginning of the related Due Period
        minus
        (y) a
        percentage equal to the product of (i) a fraction, the numerator of which
        is
        equal to the Net Derivative Payment or Swap Termination Payment (other than
        a
        Swap Termination Payment resulting from a Derivative Counterparty Trigger
        Event)
        made to the Swap Counterparty with respect to such Due Period, and the
        denominator of which is equal to the Pool Balance as of the beginning of
        the
        related Due Period and (ii) 12.

       

      Class A-IO
        Certificates:
        All
        Certificates bearing the Class designation of “Class A-IO”.

       

      Class Certificate
        Balance:
        With
        respect to any Class of LIBOR Certificates and the Principal-Only Certificates
        and as to any date of determination, the aggregate of the Certificate Balances
        of all Certificates of such Class as of such date. With respect to the
        Class A-IO, Class X, Class P and Class R Certificates, zero. With respect
        to any
        Lower Tier Interest, the initial Class Principal Balance as shown or described
        in the table set forth in the Preliminary Statement to this Agreement for
        the
        issuing REMIC, as reduced by any principal distributed with respect to such
        Lower Tier Interest and Realized Losses allocated to such Lower Tier
        Interest.

       

      Class
        I Shortfalls:
        As
        defined in Section 8.11 hereof. For
        purposes of clarity, the Class I Shortfall for any Distribution Date shall
        equal
        the amount payable to the Derivative Counterparty on such Distribution Date
        in
        excess of the amount payable with respect to the Class LT4-I interest in
        the
        Upper Tier REMIC on such Distribution Date, all as further provided in Section
        8.11 hereof.

       

      Class M
        Certificates:
        As
        specified in the Preliminary Statement.

       

      Class M
        Principal Payment Amount:
        With
        respect to any Distribution Date and any Class of Class M
        Certificates, the lesser of (i) the excess of (a) the Principal
        Payment Amount over (b) the aggregate amount distributed on that
        Distribution Date as principal to all Classes of Certificates more senior
        than
        that Class of Class M Certificates (provided,
        however,
        for
        this purpose, the Class M-1, Class M-2 and Class M-3 Certificates will be
        treated as having the same seniority) and (ii) the excess of (a) the sum
        of the
        aggregate Class Certificate Balances of all Class of Certificates more
        senior than that Class of Class M Certificates (after giving effect to
        all amounts distributed on that Distribution Date to those Classes of more
        senior certificates (provided,
        however,
        for
        this purpose, the Class M-1, Class M-2 and Class M-3 Certificates will be
        treated as having the same seniority)) and the Class Certificate Balance of
        that Class of Class M Certificates immediately prior to that
        Distribution Date over (b) the lesser of:

       

      (x)           the
        percentage set forth in the table below for the applicable Class of
        Class M Certificates multiplied by the aggregate Stated Principal Balance
        of the Mortgage Loans for that Distribution Date:

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

      

      
        	
                Class

              	 	
                Percentage

              
	
                M-1,
                  M-2 and M-3

              	 	
                78.80%*

              
	
                M-4

              	 	
                82.10%

              
	
                M-5

              	 	
                85.20%

              
	
                M-6

              	 	
                88.20%

              
	
                M-7

              	 	
                90.90%

              
	
                M-8

              	 	
                93.40%

              
	
                M-9

              	 	
                94.90%

              
	
                M-10

              	 	
                96.90%

              

      

       

      and

       

      (y)           the
        excess, if any, of the aggregate Stated Principal Balance of the Mortgage
        Loans
        for that Distribution Date over 0.50% of the aggregate Stated Principal Balance
        of the Mortgage Loans as of the Cut-off Date, until the Class Certificate
        Balance of that Class of Class M Certificates has been reduced to
        zero.

      _______________

      
        	 	
                *

              	
                The
                  amount calculated according to such percentage will be allocated
                  sequentially to the Class M-1, Class M-2 and Class M-3
                  Certificates.

              

      

       

      Class M-1
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-1”.

       

      Class M-2
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-2”.

       

      Class M-3
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-3”.

       

      Class M-4
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-4”.

       

      Class M-5
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-5”.

       

      Class M-6
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-6”.

       

      Class M-7
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-7”.

       

      Class M-8
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-8”.

      
        
          
          

        

        
          -19-

          
            

          

        

        
          
          

        

      

       

      Class M-9
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-9”.

       

      Class M-10
        Certificates:
        All
        Certificates bearing the Class designation of “Class M-10”.

       

      Class Notional
        Balance:
        With
        respect to each Distribution Date and the related Interest Accrual Period and
        the Class A-IO Certificates, the lesser of (a) the Pool Balance as of the
        first
        day of the related Due Period and (b) the amount set forth in the schedule
        in
        Exhibit Z for such Distribution Date.

       

      Class P
        Certificates:
        All
        Certificates bearing the Class designation of “Class P”.

       

      Class R
        Certificates:
        All
        Certificates bearing the Class designation of “Class R”.

       

      Class P
        Principal Amount:
        As of
        the Closing Date, $100.00.

       

      Class X
        Certificates:
        All
        Certificates bearing the Class designation of “Class X”.

       

      Class
        X Distributable Amount:
        With
        respect to any Distribution Date, the amount of interest that has accrued
        on the
        Class X Notional Balance, as described in the Preliminary Statement, but
        that
        has not been distributed prior to such date. In addition, such amount shall
        include the initial Overcollateralization Amount of $ 13,046,439.92
        ($13,046,539.92 less $100 of such amount allocated to the Class P Certificates)
        to the extent such amount has not been distributed on an earlier Distribution
        Date as part of the Overcollateralization Reduction Amount.

       

      Class
        X Notional Balance:
        With respect to
        any Distribution Date (and the related Interest Accrual Period) the aggregate
        principal balance of the regular interests in REMIC 3 as specified in the
        Preliminary Statement hereto.

       

      Closing
        Date:
        August
        4, 2006.

       

      Code:
        The
        Internal Revenue Code of 1986, including any successor or amendatory
        provisions.

       

      Collection
        Account:
        As
        defined in Section 3.10(a).

       

      Commission:
        The
        United States Securities and Exchange Commission.

       

      Compensating
        Interest:
        For any
        Distribution Date, the lesser of (a) the amount, if any, by which the
        Prepayment Interest Shortfall, if any, for such Distribution Date, with respect
        to all voluntary Principal Prepayments (excluding any payments made upon
        liquidation of any Mortgage Loan) exceeds all Prepayment Interest Excesses
        for
        such Distribution Date, and (b) the aggregate amount of the Servicing Fee
        actually retained by or paid to the Servicer for such Distribution
        Date.

      
        
          
          

        

        
          -20-

          
            

          

        

        
          
          

        

      

       

      Condemnation
        Proceeds:
        All
        awards or settlements in respect of a Mortgaged Property, whether permanent
        or
        temporary, partial or entire, by exercise of the power of eminent domain
        or
        condemnation.

       

      Corporate
        Trust Office:
        With
        respect to the Securities Administrator, (i) for transfer, presentation or
        surrender of Certificates, the office at Wells Fargo Center, Sixth Street
        and
        Marquette Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust
        Services -HASCO 2006-WMC1, and (ii) for all other purposes, 9062 Old Annapolis
        Road, Columbia, Maryland 21045, Attention: Corporate Trust Services - HASCO
        2006-WMC1 or at such other address as the Securities Administrator may designate
        from time to time by notice to the Certificateholders, the Depositor, the
        Master
        Servicer and the Trustee. With respect to the Trustee, the designated office
        of
        the Trustee in the State of California at which any particular time its
        corporate trust business with respect to this Agreement is administered,
        which
        office at the date of the execution of this Agreement is located at 1761
        East
        St. Andrew Place, Santa Ana, California 92705-4934, Attention: Trust
        Administration - HB06W1, facsimile number (714) 247-6329, and its telephone
        number is (714) 247-6000 and which is also the address to which notices to
        and
        correspondence with the Trustee under this Agreement should be directed.
        

       

      Corresponding
        Class:
        As
        described in the Preliminary Statement.

       

      Credit
        Enhancement Percentage:
        With
        respect to any Distribution Date, the percentage obtained by dividing
        (x) the sum of (i) the aggregate Class Certificate Balance of the
        Class M Certificates and (ii) the Overcollateralization Amount
        (assuming the Overcollateralization Amount is not less than zero and in each
        case after taking into account the distributions of the Principal Payment
        Amount
        for such Distribution Date assuming no Trigger Event has occurred) by
        (y) the aggregate Stated Principal Balance of the Mortgage Loans for such
        Distribution Date.

       

      Credit
        Risk Manager:
        Clayton
        Fixed Income Services Inc., formerly known as The Murrayhill Company, a Colorado
        corporation, and its successors and assigns. 

       

      Credit
        Risk Management Agreement:
        Each of
        the Credit Risk Management Agreements, dated as of the Closing Date, entered
        into by (i) the Servicer and the Credit Risk Manager, and (ii) the Master
        Servicer and the Credit Risk Manager.

       

      Credit
        Risk Manager’s Fee:
        With
        respect to any Distribution Date and each Mortgage Loan, an amount equal
        to the
        product of (a) one twelfth, (b) the Credit Risk Manager’s Fee Rate and (c) the
        Stated Principal Balance of such Mortgage Loan as of the first day of the
        related Due Period.

       

      Credit
        Risk Manager’s Fee Rate:
        0.014% per
        annum.

       

      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 calendar month preceding the month in
        which
        such Distribution Date occurs and the denominator of which is the Cut-off
        Date
        Pool Principal Balance of the Mortgage Loans.

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

       

      Cumulative
        Loss Trigger Event:
        If,
        with respect to any Distribution Date, the quotient (expressed as a
        percentage) of (x) the aggregate amount of Realized Losses incurred since
        the Cut-off Date through the last day of the related Prepayment Period, divided
        by (y) the Cut-off Date Pool Principal Balance, exceeds the applicable loss
        percentages set forth below with respect to such Distribution Date:

       

      
        	
                Distribution
                  Date Occurring In:

              	 	
                Loss
                  Percentage:

              
	 	 	 
	
                August
                  2008 through July 2009 

              	 	
                1.45%
                  for the first month, plus an additional 1/12th of 1.85%
                  for each month thereafter 

              
	 	 	 
	
                August
                  2009 through July 2010 

              	 	
                3.30%
                  for the first month, plus an additional 1/12th of 1.85%
                  for each month thereafter 

              
	 	 	 
	
                August
                  2010 through July 2011 

              	 	
                5.15%
                  for the first month, plus an additional 1/12th of 1.50%
                  for each month thereafter 

              
	 	 	 
	
                August
                  2011 through July 2012

              	 	
                6.65%
                  for the first month, plus an additional 1/12th of 0.80%
                  for each month thereafter 

              
	 	 	 
	
                August
                  2012 and thereafter

              	 	
                7.45%
                  

              

      

       

      Custodial
        File:
        The
        meaning assigned to such term in Section 2.01(a).

       

      Custodian:
        Initially, Wells Fargo, or any successor custodian appointed
        hereunder.

       

      Cut-off
        Date:
        July 1,
        2006.

       

      Cut-off
        Date Pool Principal Balance:
        The
        aggregate Stated Principal Balances of all Mortgage Loans as of the Cut-off
        Date.

       

      Cut-off
        Date Principal Balance:
        As to
        any Mortgage Loan, the Stated Principal Balance thereof as of the close of
        business on the Cut-off Date.

       

      Data
        Tape Information:
        With
        respect to each Mortgage Loan, the same information (provided as of the Cut-off
        Date) included in the data fields specified under the definition of “Mortgage
        Loan Schedule” in the Master MLPSA, with such additions and modifications as
        agreed upon by the Originator and the Depositor. A copy of the Master MLPSA
        is
        attached as Exhibits Q hereto.

       

      Debt
        Service Reduction:
        With
        respect to any Mortgage Loan, a reduction by a court of competent jurisdiction
        in a proceeding under the United States Bankruptcy Code in the Scheduled
        Payment
        for such Mortgage Loan which became final and non-appealable, except such
        a
        reduction resulting from a Deficient Valuation or any reduction that results
        in
        a permanent forgiveness of principal.

      
        
          
          

        

        
          -22-

          
            

          

        

        
          
          

        

      

       

      Defaulting
        Party:
        As
        defined in the Swap Agreement or Cap Agreement, as applicable.

       

      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 then outstanding
        principal balance of the Mortgage Loan, which valuation results from a
        proceeding initiated under the United States Bankruptcy Code.

       

      Definitive
        Certificates:
        Any
        Certificate evidenced by a Physical Certificate and any Certificate issued
        in
        lieu of a Book-Entry Certificate pursuant to Section 5.02(e).

       

      Delay
        Certificates:
        As
        specified in the Preliminary Statement.

       

      Deleted
        Mortgage Loan:
        As
        defined in Section 2.03.

       

      Delinquency
        Rate:
        For any
        calendar month, a fraction, expressed as a percentage, the numerator of which
        is
        the aggregate Stated Principal Balance of 60+ Day Delinquent Mortgage Loans
        as
        of the close of business on the last day of such month (not including those
        Mortgage Loans that are liquidated as of the end of the related Prepayment
        Period), and the denominator of which is the aggregate Stated Principal Balance
        of the Mortgage Loans as of the close of business on the last day of such
        month
        (not including those Mortgage Loans that are liquidated as of the end of
        the
        related Prepayment Period).

       

      Delinquency
        Trigger Event:
        With
        respect to any Distribution Date on or after the Stepdown Date, the
        circumstances in which the Rolling Three Month Delinquency Rate as of the
        last
        day of the immediately preceding calendar month exceeds the applicable
        percentages of the Credit Enhancement Percentage for the prior Distribution
        Date
        as set forth below for the most senior Class of LIBOR Certificates then
        outstanding:

      

      
        	
                Class

              	
                Percentage

              
	
                A

              	
                37.30%

              
	
                M-1

              	
                45.26%

              
	
                M-2

              	
                56.39%

              
	
                M-3

              	
                66.41%

              
	
                M-4

              	
                78.51%

              
	
                M-5

              	
                94.74%

              
	
                M-6

              	
                118.42%

              
	
                M-7

              	
                152.81%

              
	
                M-8

              	
                208.98%

              
	
                M-9

              	
                268.13%

              
	
                M-10

              	
                430.63%

              

      

       

      Denomination:
        With
        respect to each Certificate, the amount set forth on the face thereof as
        the
“Initial Certificate Balance of this Certificate” (initial notional balance, in
        the case of the Class A-IO Certificates) or the Percentage Interest appearing
        on
        the face thereof.

       

      Depositor:
        HSI
        Asset Securitization Corporation, a Delaware corporation, and its successors
        in
        interest.

      
        
          
          

        

        
          -23-

          
            

          

        

        
          
          

        

      

       

      Depository:
        The
        initial Depository shall be The Depository Trust Company, the nominee of
        which
        is CEDE & Co., as the registered Holder of the Book-Entry Certificates.
        The Depository shall at all times be a “clearing corporation” as defined in
        Section 8-102(a)(5) of the Uniform Commercial Code of the State of New
        York.

      
         

      

      Depository
        Institution:
        Any
        depository institution or trust company, including the Trustee and the
        Securities Administrator, that (a) is incorporated under the laws of the
        United States of America or any State thereof, (b) is subject to
        supervision and examination by federal or state banking authorities and
        (c) has outstanding unsecured commercial paper or other short-term
        unsecured debt obligations that are rated P-1 by Moody’s, F1+ by Fitch and A-1
        by Standard & Poor’s.

       

      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.

       

      Derivative
        Agreement:
        The
        Swap Agreement and the Cap Agreement.

       

      Derivative
        Counterparty:
        Collectively, the Cap Counterparty and the Swap Counterparty.

       

      Derivative
        Payment Date:
        For so
        long as either the Cap Agreement or the Swap Agreement is in effect, the
        Business Day preceding each Distribution Date.

       

      Determination
        Date:
        With
        respect to each Remittance Date, the Business Day immediately preceding such
        Remittance Date.

       

      Disqualified
        Non-U.S. Person:
        With
        respect to a Class R Certificate, any Non-U.S. Person or agent thereof
        other than (i) a Non-U.S. Person that holds the Class R Certificate in
        connection with the conduct of a trade or business within the United States
        and
        has furnished the transferor and the Securities Administrator with an effective
        IRS Form W-8ECI or (ii) a Non-U.S. Person that has delivered to both the
        transferor and the Securities Administrator an opinion of a nationally
        recognized tax counsel to the effect that the transfer of the Class R
        Certificate to it is in accordance with the requirements of the Code and
        the
        regulations promulgated thereunder and that such transfer of the Class R
        Certificate will not be disregarded for federal income tax
        purposes.

       

      Distribution
        Account:
        The
        separate Eligible Account created and maintained by the Securities Administrator
        pursuant to Section 3.07(d) in the name of the Securities Administrator as
        paying agent for the benefit of the Trustee and the Certificateholders and
        designated “Wells Fargo Bank, N.A. as paying agent in trust for registered
        holders of HSI Asset Securitization Corporation Trust 2006-WMC1 Mortgage
        Pass-Through Certificates, Series 2006-WMC1”. Funds in the Distribution
        Account shall be held in trust for the Certificateholders for the uses and
        purposes set forth in this Agreement.

       

      Distribution
        Account Deposit Date:
        As to
        any Distribution Date, 12:00 noon New York City time on the third Business
        Day
        immediately preceding such Distribution Date.

      
        
          
          

        

        
          -24-

          
            

          

        

        
          
          

        

      

       

      Distribution
        Date:
        The
        25th day of each calendar month, or if such day is not a Business Day, the
        next
        succeeding Business Day, commencing in August 2006.

       

      Document
        Certification and Exception Report:
        The
        form of report attached to Exhibit F hereto.

       

      Due
        Date:
        The day
        of the month on which the Scheduled 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
        calendar month preceding the month in which such Distribution Date occurs
        and
        ending on the first day of the calendar month in which such Distribution
        Date
        occurs.

       

      EDGAR:
        The
        Commission’s Electronic Data Gathering and Retrieval System.

       

      Eligible
        Account:
        Either
        (i) an account maintained with a federal or state-chartered depository
        institution or trust company that complies with the definition of Eligible
        Institution, (ii) an account maintained with the corporate trust department
        of a
        federal depository institution or state-chartered depository institution
        subject
        to regulations regarding fiduciary funds on deposit similar to Title 12 of
        the
        U.S. Code of Federal Regulation Section 9.10(b), which, in either case, has
        corporate trust powers and is acting in its fiduciary capacity or (iii) any
        other account acceptable to each Rating Agency. Eligible Accounts may bear
        interest, and may include, if otherwise qualified under this definition,
        accounts maintained with the Securities Administrator.

       

      Eligible
        Institution:
        A
        federal or state-chartered depository institution or trust company the
        commercial paper, short-term debt obligations, or other short-term deposits
        of
        which are rated at least “A-1+” by Standard & Poor’s if the amounts on
        deposit are to be held in the account for no more than 365 days (or at least
        “A-2” if the amounts on deposit are to be held in the account for no more than
        30 days), “P-1” by Moody’s and “F1+” by Fitch (or a comparable rating if another
        Rating Agency is specified by the Depositor by written notice to each of
        the
        Servicer and the Securities Administrator) or long-term unsecured debt
        obligations are rated at least “AA-” by Standard & Poor’s if the amounts on
        deposit are to be held in the account for no more than 365 days.

       

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

       

      ERISA-Qualifying
        Underwriting:
        A best
        efforts or firm commitment underwriting or private placement that meets the
        requirements of Prohibited Transaction Exemption (“PTE”) 96-84,
        61 Fed. Reg. 58234 (1996), as amended by PTE 97-34, 62 Fed. Reg. 39021
        (1997), PTE 2000-58, 65 Fed. Reg. 67765 (2000) and PTE 2002-41, 67 Fed.
        Reg. 54487 (2002) (or any successor thereto), or any substantially
        similar administrative exemption granted by the U.S. Department of
        Labor.

       

      ERISA-Restricted
        Certificate:
        As
        specified in the Preliminary Statement.

       

      ERISA-Restricted
        Derivative Certificate:
        As
        specified in the Preliminary Statement.

      
        
          
          

        

        
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      Escrow
        Account:
        The
        Eligible Account or Accounts established and maintained by the Servicer pursuant
        to Section 3.09(b).

       

      Escrow
        Payments:
        As
        defined in Section 3.09(b).

       

      Event
        of Default:
        As
        defined in Section 7.01.

       

      Excess
        Overcollateralization
        Amount:
        With
        respect to any Distribution Date, the excess, if any, of (a) the
        Overcollateralization Amount on such Distribution Date over (b) the
        Overcollateralization Target Amount for such Distribution Date.

       

      Excess
        Reserve Fund Account:
        The
        separate Eligible Account created and maintained by the Securities Administrator
        under the Supplemental Interest Trust pursuant to Sections 3.07(b) and
        3.07(c) in the name of the Securities Administrator as paying agent for the
        benefit of the LIBOR Certificateholders, the Class A-IO Certificateholders
        and
        the Class X Certificateholders and designated “Wells Fargo Bank, N.A. as paying
        agent in trust for registered holders of HSI Asset Securitization Corporation
        Trust 2006-WMC1, Mortgage Pass-Through Certificates, Series 2006-WMC1”.
        Funds in the Excess Reserve Fund Account shall be held in trust for such
        Certificateholders for the uses and purposes set forth in this Agreement.
        Amounts on deposit in the Excess Reserve Fund Account shall not be invested.
        The
        Excess Reserve Fund Account shall be considered part of the Supplemental
        Interest Trust but not part of any REMIC.

       

      Exchange
        Act:
        The
        Securities Exchange Act of 1934, as amended, and the rules and regulations
        thereunder.

       

      Excluded
        Trust Assets:
        As
        defined in the Preliminary Statement.

       

      Expense
        Adjusted Mortgage Rate:
        With
        respect to any Distribution Date and as to each Mortgage Loan, the per annum
        rate equal to the Mortgage Rate as of the first day of the related Due Period
        less the Expense Fee Rate.

       

      Expense
        Fee Rate:
        As to
        each Mortgage Loan, a per annum rate equal to the sum of the Servicing Fee
        Rate
        and the Master Servicing Fee Rate.

       

      Expense
        Fees:
        As to
        each Mortgage Loan and any Distribution Date, the sum of the Servicing Fee
        and
        the Master Servicing Fee.

       

      Extra
        Principal Payment Amount:
        As of
        any Distribution Date, the lesser of (x) the related Total Monthly Excess
        Spread for such Distribution Date and (y) the related Overcollateralization
        Deficiency for such Distribution Date.

       

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

       

      FDIC:
        The
        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 Sponsor
        as
        contemplated by this Agreement or the Purchase Agreement, as applicable),
        a
        determination made by the Servicer that all Insurance Proceeds, Condemnation
        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.

      
        
          
          

        

        
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      Final
        Scheduled Distribution Date:
        The
        Final Scheduled Distribution Date for each Class of Certificates (other
        than the Class A-IO Certificates) is the Distribution Date occurring in July
        2036. The Final Scheduled Distribution Date for the Class A-IO Certificates
        is
        the Distribution Date occurring in October 2007.

       

      Fitch:
        Fitch,
        Inc., or any successor thereto. If Fitch is designated as a Rating Agency
        in the
        Preliminary Statement, for purposes of Section 12.05(c) the address for
        notices to Fitch shall be Fitch, Inc., One State Street Plaza, New York,
        New
        York 10004, Attention: MBS Monitoring - HASCO (HSI Asset Securitization
        Corporation Trust 2006-WMC1), or such other address as Fitch may hereafter
        furnish to the Depositor and the Securities Administrator.

       

      Fixed
        Rate Mortgage Loan:
        A
        Mortgage Loan with respect to which the Mortgage Rate set forth in the Mortgage
        Note is fixed for the term of such Mortgage Loan.

       

      Form
        8-K Disclosure Information:
        As
        defined in Section 8.12(a)(iii).

       

      Freddie
        Mac:
        The
        Federal Home Loan Mortgage Corporation, a corporate instrumentality of the
        United States created and existing under Title III of the Emergency Home
        Finance Act of 1970, as amended, or any successor thereto.

       

      Gross
        Margin:
        With
        respect to each Adjustable Rate Mortgage Loan, the fixed percentage amount
        set
        forth in the related Mortgage Note to be added to the Index to determine
        the
        Mortgage Rate.

       

      Independent:
        When
        used with respect to any accountants, a Person who is “independent” within the
        meaning of Rule 2-01(B) of the Commission’s Regulation S-X. Independent means,
        when used with respect to any other Person, a Person who (A) is in fact
        independent of another specified Person and any Affiliate of such other Person,
        (B) does not have any material direct or indirect financial interest in such
        other Person or any Affiliate of such other Person, (C) is not connected
        with
        such other Person or any Affiliate of such other Person as an officer, employee,
        promoter, underwriter, trustee, partner, director or Person performing similar
        functions and (D) is not a member of the immediate family of a Person defined
        in
        clause (B) or (C) above.

       

      Index:
        As to
        each Adjustable Rate Mortgage Loan, the six-month LIBOR index or one-year
        LIBOR
        index, as applicable, from time to time in effect for the adjustment of the
        Mortgage Rate as set forth in the related Mortgage Note.

       

      Initial
        Certification:
        As
        defined in Section 2.02.

      
        
          
          

        

        
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      Initial
        Sale Date:
        The
        date the Mortgage Loan was purchased by the Sponsor from the Originator under
        the Master MLPSA.

       

      Insurance
        Policy:
        With
        respect to any Mortgage Loan included in the Trust Fund, any insurance policy,
        including, but not limited to, any standard hazard insurance policy, flood
        insurance policy, earthquake insurance policy, title insurance policy or
        Primary
        Mortgage Insurance Policy (if any), including all riders and endorsements
        thereto in effect, including any replacement policy or policies.

       

      Insurance
        Proceeds:
        With
        respect to each Mortgage Loan, proceeds of Insurance Policies insuring the
        Mortgage Loan or the related Mortgaged Property.

       

      Interest
        Accrual Period:
        With
        respect to each Class of LIBOR Certificates and any Distribution Date, the
        period commencing on the Distribution Date occurring in the month preceding
        the
        month in which the current Distribution Date occurs and ending on the day
        immediately preceding the current Distribution Date (or, in the case of the
        first Distribution Date, the period from and including the Closing Date to
        but
        excluding such first Distribution Date). For purposes of computing interest
        accruals on each Class of LIBOR Certificates, each Interest Accrual Period
        has the actual number of days in such month and each year is assumed to have
        360 days. With respect to the Interest-Only Certificates and the
        Corresponding Class of Lower Tier REMIC Regular Interests and any Distribution
        Date, the calendar month immediately preceding the month in which such
        Distribution Date occurs. For purposes of computing interest accruals on
        the
        Interest-Only Certificates and each class of Lower Tier Interests, each Interest
        Accrual Period shall consist of a thirty day month and each year is assumed
        to
        have 360 days.

       

      Interest
        Carry Forward Amount:
        As of
        any Distribution Date and any Class of LIBOR Certificates and the
        Interest-Only Certificates, the sum of (i) the excess of (a) the sum of (x)
        the Interest Payment Amount with respect to the current Distribution Date
        (excluding any Basis Risk Carryover Amount with respect to such Class), plus
        (y)
        the portion of the Interest Payment Amount from Distribution Dates prior
        to the
        current Distribution Date remaining unpaid immediately prior to the current
        Distribution Date, over (b) the amount actually paid to such
        Class with respect to interest on such prior Distribution Dates, and (ii)
        interest on the amount in clause (i) above at the applicable Interest Rate
        (to
        the extent permitted by applicable law).

       

      Interest
        Margin:
        Except
        as set forth in the following sentence, with respect to each Class of
        Regular Certificates, the following percentages: Class A-1 Certificates,
        .050%; Class A-2 Certificates, 0.100%; Class A-3 Certificates, 0.150%;
        Class A-4 Certificates, 0.250%; Class M-1 Certificates, 0.250%;
        Class M-2 Certificates, 0.300%; Class M-3 Certificates, 0.320%;
        Class M-4 Certificates, 0.370%; Class M-5 Certificates, 0.390%;
        Class M-6 Certificates, 0.460%, Class M-7 Certificates, 0.900%,
        Class M-8 Certificates, 1.100%, Class M-9 Certificates, 1.950% and
        Class M-10 Certificates, 2.000%. On the first Distribution Date after the
        Optional Termination Date, the Interest Margins shall increase to the following
        percentages: Class A-1 Certificates, 0.100%; Class A-2 Certificates,
        0.200%; Class  A-3 Certificates, 0.300%; Class A-4 Certificates,
        0.500%; Class M-1 Certificates, 0.375%; Class M-2 Certificates,
        0.450%; Class M-3 Certificates, 0.480%; Class M-4 Certificates,
        0.555%; Class M-5 Certificates, 0.585%; Class M-6 Certificates,
        0.690%, Class M-7 Certificates, 1.350%, Class M-8 Certificates,
        1.650%, Class M-9 Certificates, 2.925% and Class M-10 Certificates,
        3.000%.

      
        
          
          

        

        
          -28-

          
            

          

        

        
          
          

        

      

       

      Interest
        Payment Amount:
        With
        respect to any Distribution Date for each Class of LIBOR Certificates and
        the Interest-Only Certificates, the amount of interest accrued during the
        related Interest Accrual Period at the applicable Interest Rate on the related
        Class Certificate Balance (Class Notional Balance, in the case of the Class
        A-IO Certificates) immediately prior to such Distribution Date, as reduced
        by
        such Class’s share of Net Prepayment Interest Shortfalls and Relief Act Interest
        Shortfalls for such Distribution Date allocated to such Class pursuant to
        Section 4.02.

       

      Interest
        Rate:
        For
        each Class of LIBOR Certificates and the Interest-Only Certificates, each
        Class
        of Upper Tier REMIC Regular Interest and each class of Lower Tier Interest,
        the
        per annum rate set forth or calculated in the manner described in the
        Preliminary Statement.

       

      Interest
        Remittance Amount:
        With
        respect to any Distribution Date, that portion of Available Funds attributable
        to interest.

       

      Investment
        Account:
        As
        defined in Section 3.12(a).

       

      Investor:
        With
        respect to each MERS Designated Mortgage Loan, the Person named on the MERS
        System as the investor pursuant to the MERS Procedures Manual.

       

      IRS:
        The
        Internal Revenue Service.

       

      Late
        Collections:
        With
        respect to any Mortgage Loan and any Due Period, all amounts received after
        the
        Determination Date immediately following such Due Period, whether as late
        payments of Scheduled Payments or as Insurance Proceeds, Condemnation Proceeds,
        Liquidation Proceeds, Subsequent Recoveries 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.

       

      LIBOR:
        With
        respect to any Interest Accrual Period for the LIBOR Certificates, the rate
        determined by the Securities Administrator on the related LIBOR 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
        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 rates at which one-month U.S. dollar
        deposits are offered by the Reference Banks at approximately 11:00 a.m.
        (London time) on such date to prime banks in the London interbank market.
        In
        such event, the Securities Administrator shall request the principal London
        office of each of the Reference Banks to provide a quotation of its rate.
        If at
        least two such quotations are provided, the rate for that date will be the
        arithmetic mean of the quotations (rounded upwards if necessary to the nearest
        whole multiple of 1/16%). If fewer than two quotations are provided as
        requested, the rate for that date will be the arithmetic mean of the rates
        quoted by major banks in New York City, selected by the Securities Administrator
        (after consultation with the Depositor), at approximately 11:00 a.m. (New
        York City time) on such date for one-month U.S. dollar loans to leading European
        banks.

      
        
          
          

        

        
          -29-

          
            

          

        

        
          
          

        

      

       

      LIBOR
        Certificates:
        As
        specified in the Preliminary Statement.

       

      LIBOR
        Determination Date:
        With
        respect to any Interest Accrual Period for the LIBOR Certificates, the second
        London Business Day preceding the commencement of such Interest Accrual
        Period.

       

      Liquidated
        Mortgage Loan:
        With
        respect to any Distribution Date, a defaulted Mortgage Loan (including any
        REO
        Property) which was liquidated in the calendar month preceding the month
        of such
        Distribution Date and as to which the Servicer has certified to the Securities
        Administrator that it has received all amounts it expects to receive in
        connection with the liquidation of such Mortgage Loan including the final
        disposition of an REO Property.

       

      Liquidation
        Proceeds:
        Cash
        received in connection with the liquidation of a Liquidated Mortgage Loan,
        whether through a trustee’s sale, foreclosure sale or otherwise.

       

      Loan-to-Value
        Ratio
        or
LTV:
        As of
        any date and as to any Mortgage Loan, the ratio (expressed as a
        percentage) of the outstanding principal balance of the Mortgage Loan to
        (a) in the case of a purchase, the lesser of (i) the sale price of the
        Mortgaged Property and (ii) its appraised value at the time of sale or
        (b) in the case of a refinancing or modification, the appraised value of
        the Mortgaged Property at the time of the refinancing or
        modification.

       

      London
        Business Day:
        Any day
        on which dealings in deposits of United States dollars are transacted in
        the
        London interbank market.

       

      Lower
        Tier Interest:
        An
        interest in any REMIC formed hereby other than the Upper Tier
        REMIC.

       

      Master
        MLPSA:
        The
        Master Mortgage Loan Purchase and Interim Servicing Agreement between the
        Originator, as seller, and the Sponsor, as initial purchaser, dated as of
        May 1,
        2006.

       

      Master
        Servicer:
        Wells
        Fargo, and if a successor master servicer is appointed hereunder, such
        successor.

       

      Master
        Servicer Event of Default:
        As
        defined in Section 9.06.

       

      Master
        Servicing Fee:
        As to
        any Distribution Date and each Mortgage Loan, an amount equal to
        1/12th
        the
        product of (a) the Master Servicing Fee Rate and (b) the outstanding Stated
        Principal Balance of such Mortgage Loan as of the prior Distribution Date
        (or as
        of the Cut-off Date in the case of the first Distribution Date).

       

      Master
        Servicing Fee Rate:
        With
        respect to any Mortgage Loan, a per annum rate equal to 0.000%.

      
        
          
          

        

        
          -30-

          
            

          

        

        
          
          

        

      

       

      Master
        Servicing Officer:
        Any
        officer of the Master Servicer involved in, or responsible for, the
        administration and master servicing of the Mortgage Loans.

       

      Maximum
        Mortgage Rate:
        With
        respect to each Adjustable Rate Mortgage Loan, a rate that (i) is set forth
        on the Data Tape Information and in the related Mortgage Note and (ii) is
        the maximum interest rate to which the Mortgage Rate on such Mortgage Loan
        may
        be increased during the lifetime of such Mortgage Loan.

       

      MERS:
        Mortgage Electronic Registration Systems, Inc., a Delaware corporation, and
        its
        successors in interest.

       

      MERS
        Designated Mortgage Loan:
        Mortgage Loans for which (a) any party that has designated or will
        designate MERS as, and has taken or will take such action as is necessary
        to
        cause MERS to be, the mortgagee of record, as nominee for the Originator
        of the
        Mortgage Loan, in accordance with the MERS Procedure Manual and (b) the
        Originator of the Mortgage Loan has designated or will designate the Trustee
        as
        the Investor on the MERS System.

       

      MERS
        Procedure Manual:
        The
        MERS Procedures Manual, as it may be amended, supplemented or otherwise modified
        from time to time.

       

      MERS®
        System:
        MERS
        mortgage electronic registry system, as more particularly described in the
        MERS
        Procedures Manual.

       

      MIN:
        The
        Mortgage Identification Number of Mortgage Loans registered with MERS on
        the
        MERS® System.

       

      Minimum
        Mortgage Rate:
        With
        respect to each Adjustable Rate Mortgage Loan, a rate that (i) is set forth
        on the Data Tape Information and in the related Mortgage Note and (ii) is
        the minimum interest rate to which the Mortgage Rate on such Mortgage Loan
        may
        be decreased during the lifetime of such Mortgage Loan.

       

      Monthly
        Statement:
        The
        statement made available to the Certificateholders by the Securities
        Administrator (through its website) pursuant to Section 4.03.

       

      Moody’s:
        Moody’s
        Investors Service, Inc. If Moody’s is designated as a Rating Agency in the
        Preliminary Statement, for purposes of Section 12.05(c) the address for
        notices to Moody’s shall be Moody’s Investors Service, Inc., 99 Church Street,
        New York, New York 10007, Attention: Residential Mortgage Pass-Through Group,
        HASCO (HSI Asset Securitization Corporation Trust Series 2006-WMC1), or such
        other address as Moody’s may hereafter furnish to the Depositor and the
        Securities Administrator.

       

      Mortgage:
        The
        mortgage, deed of trust or other instrument identified on the Mortgage Loan
        Schedule as securing a Mortgage Note.

       

      Mortgage
        File:
        The
        items pertaining to a particular Mortgage Loan contained in either the Servicing
        File or Custodial File.

      
        
          
          

        

        
          -31-

          
            

          

        

        
          
          

        

      

       

      Mortgage
        Loan:
        An
        individual Mortgage Loan that is the subject of this Agreement, each Mortgage
        Loan originally sold and subject to this Agreement being identified on the
        Mortgage Loan Schedule, which Mortgage Loan includes, without limitation, the
        Mortgage File, the Scheduled Payments, Principal Prepayments, Liquidation
        Proceeds, Subsequent Recoveries, Condemnation Proceeds, Insurance Proceeds,
        REO
        Disposition proceeds, Prepayment Charges, and all other rights, benefits,
        proceeds and obligations arising from or in connection with such Mortgage
        Loan,
        excluding replaced or repurchased Mortgage Loans.

       

      Mortgage
        Loan Schedule:
        A
        schedule of Mortgage Loans prepared by the Depositor, delivered to the Trustee
        on the Closing Date and referred to on Schedule I, such schedule setting
        forth the Data Tape Information with respect to each Mortgage Loan.

       

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

       

      Mortgage
        Rate:
        The
        annual rate of interest borne on a Mortgage Note, which shall be adjusted
        from
        time to time.

       

      Mortgaged
        Property:
        With
        respect to each Mortgage Loan, the real property (or leasehold estate, if
        applicable) identified on the Mortgage Loan Schedule as securing repayment
        of
        the debt evidenced by the related Mortgage Note.

       

      Mortgagor:
        The
        obligor(s) on a Mortgage Note.

       

      Net
        Derivative Payment:
        The net
        payment required to be made on the Derivative Payment Date either by (a)
        the
        Supplemental Interest Trust to the Derivative Counterparty, to the extent
        that
        the fixed amount payable by the Supplemental Interest Trust under the terms
        of
        the Swap Agreement exceeds the aggregate amount of the corresponding floating
        amount payable by the Derivative Counterparty under the terms of the Swap
        Agreement and any amounts payable by the Derivative Counterparty under the
        Cap
        Agreement, or (b) the Derivative Counterparty to the Supplemental Interest
        Trust, to the extent that the aggregate amount of the floating amount payable
        by
        the Derivative Counterparty under the terms of the Swap Agreement and any
        such
        amount payable by the Derivative Counterparty under the Cap Agreement exceeds
        the corresponding fixed amount payable by the Supplemental Interest Trust
        under
        the terms of the Swap Agreement, plus in the case of a payment made under
        either
        clause (a) or clause (b) any unpaid amounts due under such clause from previous
        Derivative Payment Dates, and accrued interest thereon as provided in the
        applicable Derivative Agreement, as calculated by the Derivative Counterparty
        and furnished to the Securities Administrator. Any Swap Termination Payment
        or
        Cap Termination Payment will be made exclusive of the Net Derivative Payment
        required to be made by the Derivative Counterparty or Supplemental Interest
        Trust, as applicable, under the Swap Agreement or the Cap
        Agreement.

       

      Net
        Monthly Excess Cash Flow:
        For any
        Distribution Date, the amount of interest and principal remaining for
        distribution pursuant to subsection 4.02(a)(iii) (before giving effect to
        distributions pursuant to such subsection).

      
        
          
          

        

        
          -32-

          
            

          

        

        
          
          

        

      

       

      Net
        Prepayment Interest Shortfall:
        For any
        Distribution Date, the amount by which the sum of the Prepayment Interest
        Shortfalls for such Distribution Date exceeds the sum of Compensating Interest
        payments made with respect to such Distribution Date.

       

      Net
        Swap Payment:
        With
        respect to each Swap Payment Date, the net payment (not including any Swap
        Termination Payment) required to be made pursuant to the terms of the Swap
        Agreement plus any unpaid amounts due on previous Swap Payment Dates and
        accrued
        interest thereon as provided in the Swap Agreement, as calculated by the
        Swap
        Counterparty and furnished to the Securities Administrator.

       

      Net
        WAC Rate:
        With
        respect to any Distribution Date (and the related Interest Accrual Period),
        a
        per annum rate equal to the weighted average of the Expense Adjusted Mortgage
        Rates of the Mortgage Loans as of the first day of the related Due Period
        (not
        including for this purpose Mortgage Loans for which Principal Prepayments
        in
        Full have been received and distributed in the month prior to that Distribution
        Date).

       

      NIM
        Issuer:
        The
        entity established as the issuer of the NIM Securities.

       

      NIM
        Securities:
        Any
        debt securities secured or otherwise backed by some or all of the Class X
        and Class P Certificates that are rated by any Rating Agency.

       

      NIM
        Trustee:
        The
        Indenture trustee for the NIM Securities.

       

      Non-Delay
        Certificates:
        As
        specified in the Preliminary Statement.

       

      Non-Permitted
        Transferee:
        A
        Person other than a Permitted Transferee.

       

      Non-U.S.
        Person:
        A
        person that is not a U.S. Person.

       

      Nonrecoverable
        P&I Advance:
        Any
        P&I Advance previously made or proposed to be made in respect of a Mortgage
        Loan or REO Property that, in the good faith business judgment (taking into
        account Accepted Servicing Practices) of the Servicer, the Master Servicer,
        as
        successor servicer, or any successor master servicer including the Trustee,
        as
        applicable, will not or, in the case of a proposed P&I Advance, would not be
        ultimately recoverable from related Late Collections on such Mortgage Loan
        or
        REO Property as provided herein.

       

      Nonrecoverable
        Servicing Advance:
        Any
        Servicing Advances previously made or proposed to be made in respect of a
        Mortgage Loan or REO Property, which, in accordance with Accepted Servicing
        Practices, will not or, in the case of a proposed Servicing Advance, would
        not
        be ultimately recoverable from related Late Collections. 

       

      Notice
        of Final Distribution:
        The
        notice to be provided by the Securities Administrator pursuant to
        Section 11.02 to the effect that final distribution on any of the
        Certificates shall be made only upon presentation and surrender
        thereof.

       

      Offered
        Certificates:
        As
        specified in the Preliminary Statement.

      
        
          
          

        

        
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      Offering
        Documents:
        The
        Prospectus and the Private Placement Memorandum.

       

      Officer’s
        Certificate:
        A
        certificate signed by an officer of the Servicer or the Master Servicer,
        as
        applicable, with responsibility for the servicing of the Mortgage Loans and
        listed on a list delivered to the Trustee and the Securities Administrator
        pursuant to this Agreement.

       

      Opinion
        of Counsel:
        A
        written opinion of counsel, who may be in-house counsel for the Servicer
        or any
        Subservicer, reasonably acceptable to the Trustee and/or the Securities
        Administrator, as applicable (and/or such other Persons as may be set forth
        herein); provided,
        that
        any Opinion of Counsel relating to (a) qualification of any REMIC created
        hereby or (b) compliance with the REMIC Provisions, must be (unless
        otherwise stated in such Opinion of Counsel) an opinion of counsel who
        (i) is in fact independent of the Servicer or the Master Servicer,
        (ii) does not have any material direct or indirect financial interest in
        the Servicer or the Master Servicer or in an affiliate of either and
        (iii) is not connected with the Servicer or the Master Servicer as an
        officer, employee, director or person performing similar functions.

       

      Option
        to Purchase:
        On the
        first Optional Termination Date and any Distribution Date thereafter, the
        Master
        Servicer, upon instruction by the Depositor, shall purchase
        the Mortgage Loans. If the Depositor fails to instruct the Master Servicer
        to
        purchase the Mortgage Loans, the Master Servicer has the right and, at its
        own
        option, may purchase the Mortgage Loans on the first Distribution Date and
        any
        Distribution Date thereafter on which the aggregate Stated Principal Balance
        of
        the Mortgage Loans as of the last day of the related Due Period is less than
        or
        equal to 5.00% of the aggregate Stated Principal Balance of the Mortgage
        Loans
        as of the Cut-off Date.

       

      Optional
        Termination Date:
        Any
        Distribution Date on which the aggregate Stated Principal Balance of the
        Mortgage Loans, as of the last day of the related Due Period, is less than
        or
        equal to 10.00% of the Cut-off Date Pool Principal Balance.

       

      Originator:
        WMC
        Mortgage Corp. and its successors in interest.

       

      OTS:
        Office
        of Thrift Supervision, and any successor thereto.

       

      Outstanding:
        With
        respect to the Certificates as of any date of determination, all Certificates
        theretofore executed and authenticated under this Agreement except:

       

      (i)           Certificates
        theretofore canceled by the Securities Administrator or delivered to the
        Securities Administrator for cancellation; and

       

      (ii)           Certificates
        in exchange for which or in lieu of which other Certificates have been executed
        and delivered by the Securities Administrator pursuant to this
        Agreement.

       

      Outstanding
        Mortgage Loan:
        As of
        any Due Date, a Mortgage Loan with a Stated Principal Balance greater than
        zero
        which was not the subject of a Principal Prepayment in Full prior to such
        Due
        Date and which did not become a Liquidated Mortgage Loan prior to such Due
        Date.

      
        
          
          

        

        
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      Overcollateralization
        Amount:
        As of
        any Distribution Date, the excess, if any, of (a) the aggregate Stated
        Principal Balance of the Mortgage Loans for such Distribution Date over
        (b) the aggregate of the Class Certificate Balances of the LIBOR
        Certificates and the Principal-Only Certificates as of such Distribution
        Date
        (after giving effect to the payment of the Principal Remittance Amount on
        such
        Certificates on such Distribution Date).

       

      Overcollateralization
        Deficiency:
        With
        respect to any Distribution Date, the excess, if any, of (a) the
        Overcollateralization Target Amount applicable to such Distribution Date
        over
        (b) the Overcollateralization Amount applicable to such Distribution
        Date.

       

      Overcollateralization
        Reduction Amount:
        With
        respect to any Distribution Date, an amount equal to the lesser of (a) the
        Excess Overcollateralization Amount and (b) the Net Monthly Excess Cash
        Flow.

       

      Overcollateralization
        Target Amount:
        Prior
        to the Stepdown Date, an amount equal to 1.55% of the aggregate Stated Principal
        Balance of the Mortgage Loans as of the Cut-off Date. On and after the Stepdown
        Date, an amount equal to the greater of (i) 3.10% of the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period and (ii) 0.50% of the aggregate Stated Principal Balance of the Mortgage
        Loans as of the Cut-off Date; provided,
        however,
        that
        if, on any Distribution Date a Trigger Event exists, the Overcollateralization
        Target Amount shall not be reduced to the applicable percentage of then current
        aggregate Stated Principal Balance of the Mortgage Loans until the Distribution
        Date on which a Trigger Event no longer exists but rather shall remain the
        Overcollateralization Target Amount as determined for the immediately preceding
        Distribution Date. When the Class Certificate Balance of each Class of
        LIBOR Certificates and the Principal-Only Certificates have been reduced
        to
        zero, the Overcollateralization Target Amount will thereafter equal
        zero.

       

      Ownership
        Interest:
        As to
        any Residual Certificate, any ownership 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.

       

      P&I
        Advance:
        As to
        any Mortgage Loan or REO Property, any advance made by the Servicer in respect
        of any Remittance Date representing the aggregate of all payments of principal
        and interest, net of the Servicing Fee, that were due during the related
        Due
        Period on the Mortgage Loans and that were delinquent on the related
        Determination Date, plus certain amounts representing assumed payments not
        covered by any current net income on the Mortgaged Properties acquired by
        foreclosure or deed in lieu of foreclosure as determined pursuant to
        Section 4.01.

       

      Pass
        Through Transfer Date:
        July 1,
        2006.

       

      Percentage
        Interest:
        As to
        any Certificate, the percentage interest evidenced thereby in distributions
        required to be made on the related Class, such percentage interest being
        set
        forth on the face thereof or equal to the percentage obtained by dividing
        the
        Denomination of such Certificate by the aggregate of the Denominations of
        all
        Certificates of the same Class.

      
        
          
          

        

        
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      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 by the Servicer, the
        Securities Administrator, the Trustee or any of their respective
        Affiliates:

       

      (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)           demand
        and time deposits in, certificates of deposit of, or bankers’ acceptances (which
        shall each have an original maturity of not more than 90 days and, in the
        case of bankers’ acceptances, shall in no event have an original maturity of
        more than 365 days or a remaining maturity of more than 30 days)
        denominated in United States dollars and issued by, any Depository Institution
        and rated F1+ by Fitch, A-1+ by Standard & Poor’s and P-1 by
        Moody’s;

       

      (iii)           repurchase
        obligations with respect to any security described in clause (i) above
        entered into with a Depository Institution (acting as principal);

       

      (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 Fitch, Moody’s and Standard & Poor’s (in each case, to
        the extent they are designated as Rating Agencies in the Preliminary Statement),
        and by each other Rating Agency that rates such securities, in its highest
        long-term unsecured rating categories 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 Fitch,
        Moody’s and Standard & Poor’s (in each case, to the extent they are
        designated as Rating Agencies in the Preliminary Statement), and by each
        other
        Rating Agency that rates such securities, in its highest short-term unsecured
        debt rating available at the time of such investment;

       

      (vi)           units
        of money market funds, including money market funds managed or advised by
        the
        Trustee, the Securities Administrator or an Affiliate thereof, that have
        been
        rated “Aaa” by Moody’s, “AAA” by Standard & Poor’s and, if rated by
        Fitch, “AAA” by Fitch; and

       

      (vii)           if
        previously confirmed in writing to the Securities Administrator, any other
        demand, money market or time deposit, or any other obligation, security or
        investment, as may be acceptable to each of the Rating Agencies as a permitted
        investment of funds backing “Aaa” or “AAA” rated securities;

       

      provided,
        however,
        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
        120.00% of the yield to maturity at par of the underlying
        obligations.

      
        
          
          

        

        
          -36-

          
            

          

        

        
          
          

        

      

       

      Permitted
        Transferee:
        Any
        Person other than (i) the United States, any State or political subdivision
        thereof, or any agency or instrumentality of any of the foregoing, (ii) a
        foreign government, international organization or any agency or instrumentality
        of either of the foregoing, (iii) an organization (except certain farmers’
cooperatives described in Section 521 of the Code) which is exempt from tax
        imposed by Chapter 1 of the Code (including the tax imposed by Section 511
        of the Code on unrelated business taxable income) on any excess inclusions
        (as
        defined in Section 860E(c)(1) of the Code) with respect to any Residual
        Certificate, (iv) rural electric and telephone cooperatives described in
        Section 1381(a)(2)(C) of the Code, (v) a Person that is a Disqualified
        Non-U.S. Person or a U.S. Person with respect to whom income from a Residual
        Certificate is attributable to a foreign permanent establishment or fixed
        base,
        within the meaning of an applicable income tax treaty, of such Person or
        any
        other U.S. Person, (vi) an “electing large partnership” within the meaning
        of Section 775 of the Code and (vii) any other Person so designated by
        the Depositor based upon an Opinion of Counsel that the Transfer of an Ownership
        Interest in a Residual Certificate to such Person may cause any REMIC formed
        hereby to fail to qualify as a REMIC at any time that the Certificates are
        outstanding. The terms “United States”, “State” and “international organization”
shall have the meanings set forth in Section 7701 of the Code or successor
        provisions. A corporation will not be treated as an instrumentality of the
        United States or of any State or political subdivision thereof for these
        purposes if all of its activities are subject to tax and, with the exception
        of
        Freddie Mac, a majority of its board of directors is not selected by such
        government unit.

       

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

       

      Physical
        Certificates:
        As
        specified in the Preliminary Statement.

       

      Pool
        Stated Principal Balance:
        As to
        any Distribution Date, the aggregate of the Stated Principal Balances of
        the
        Mortgage Loans for such Distribution Date that were Outstanding Mortgage
        Loans
        on the Due Date in the related Due Period.

       

      Prepayment
        Charge:
        Any
        prepayment premium, penalty or charge collected by the Servicer with respect
        to
        a Mortgage Loan from a Mortgagor in connection with any Principal Prepayment
        pursuant to the terms of the related Mortgage Note.

       

      Prepayment
        Interest Excess:
        With
        respect to any Distribution Date, any interest collected by the Servicer
        with
        respect to any Mortgage Loan as to which a Principal Prepayment in Full occurs
        from the 1st day of the month through the 13th day of the month in which
        such
        Distribution Date occurs and that represents interest that accrues from the
        1st
        day of such month to the date of such Principal Prepayment in Full.

       

      Prepayment
        Interest Shortfall:
        With
        respect to any Distribution Date, the sum of, for each Mortgage Loan that
        was,
        during the portion of the related Prepayment Period from the first day of
        such
        Prepayment Period through the last day of the month preceding the month in
        which
        such Distribution Date occurs, the subject of a Principal Prepayment which
        is
        not accompanied by an amount equal to one month of interest that would have
        been
        due on such Mortgage Loan on the Due Date that occurs during such Prepayment
        Period and which was applied by the Servicer to reduce the outstanding principal
        balance of such Mortgage Loan on a date preceding such Due Date, an amount
        equal
        to the product of (a) the Mortgage Rate net of the Servicing Fee Rate for
        such Mortgage Loan, (b) the amount of the Principal Prepayment for such
        Mortgage Loan, (c) 1/360 and (d) the number of days commencing on the
        date on which such Principal Prepayment was applied and ending on the last
        day
        of the calendar month in which the related Prepayment Period
        begins.

      
        
          
          

        

        
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      Prepayment
        Period:
        With
        respect to any Distribution Date and any Principal Prepayment in Full, the
        period commencing on the 14th day of the month preceding the month in which
        such
        Distribution Date occurs (or in the case of the first Distribution Date,
        commencing on the Cut-off Date) and ending on the 13th day of the month in
        which
        that Distribution Date occurs. With respect to any Distribution Date and
        any
        Principal Prepayment in part, the calendar month preceding the month in which
        such Distribution Date occurs.

       

      Primary
        Mortgage Insurance Policy:
        Any
        mortgage guaranty insurance, if any, on an individual Mortgage Loan as evidenced
        by a policy or certificate, whether such policy is obtained by the Originator,
        the lender or the borrower.

       

      Principal-Only
        Certificate:
        Any
        Class A-5 Certificate.

       

      Principal
        Payment Amount:
        For any
        Distribution Date, the sum of (i) the Basic Principal Payment Amount for
        such Distribution Date and (ii) the Extra Principal Payment Amount for such
        Distribution Date.

       

      Principal
        Prepayment:
        Any
        full or partial payment or other recovery of principal on a Mortgage Loan
        (including upon liquidation of a Mortgage Loan) that is received in advance
        of
        its scheduled Due Date, excluding any Prepayment Charge thereon, and that
        is not
        accompanied by an amount of interest representing scheduled interest due
        on any
        date or dates in any month or months subsequent to the month of prepayment.
        

       

      Principal
        Prepayment in Full:
        Any
        Principal Prepayment made by a Mortgagor of the entire principal balance
        of a
        Mortgage Loan.

       

      Principal
        Remittance Amount:
        With
        respect to any Distribution Date, the amount equal to the sum of the following
        amounts (without duplication) with respect to the related Due Period:
        (i) each scheduled payment of principal on a Mortgage Loan due during such
        Due Period and received by the Servicer on or prior to the related Determination
        Date or advanced by the Servicer for the related Remittance Date, (ii) all
        Principal Prepayments received during the related Prepayment Period;
        (iii) all net Liquidation Proceeds, Condemnation Proceeds and Insurance
        Proceeds on the Mortgage Loans allocable to principal, and all Subsequent
        Recoveries, actually collected by the Servicer during the related Prepayment
        Period; (iv) the portion of the Repurchase Price allocable to principal
        with respect to each Mortgage Loan repurchased by the Originator or the Sponsor,
        as the case may be, that was repurchased on or prior to the related
        Determination Date; and (v) all Substitution Adjustment Amounts allocable
        to principal with respect to the substitutions of Mortgage Loans that occur
        on
        or prior to the related Determination Date; (vi) the allocable portion of
        the proceeds received with respect to the termination of the Trust Fund pursuant
        to clause (a) of Section 11.01 (to the extent such proceeds
        relate to principal).

      
        
          
          

        

        
          -38-

          
            

          

        

        
          
          

        

      

       

      Private
        Certificates:
        As
        specified in the Preliminary Statement.

       

      Private
        Placement Memorandum:
        The
        Private Placement Memorandum, dated August 3, 2006, relating to the offering
        of
        the Class M-10 Certificates.

       

      Prospectus:
        The
        Prospectus, dated April 3, 2006, as supplemented by the Prospectus
        Supplement.

       

      Prospectus
        Supplement:
        The
        Prospectus Supplement, dated August 3, 2006, relating to the Offered
        Certificates.

       

      PTCE:
        As
        defined in Section 5.02(b).

       

      Purchase
        Agreement:
        The
        Mortgage Loan Purchase Agreement, dated as of July 1, 2006, between the
        Depositor and the Sponsor.

       

      Rating
        Agency:
        Each of
        the Rating Agencies specified in the Preliminary Statement. If such organization
        or a successor is no longer in existence, “Rating Agency” shall be such
        nationally recognized statistical rating organization, or other comparable
        Person, as is designated by the Depositor, notice of which designation shall
        be
        given to the Trustee and the Securities Administrator. References herein
        to a
        given rating or rating category of a Rating Agency shall mean such rating
        category without giving effect to any modifiers. For purposes of
        Section 12.05(c), the addresses for notices to each Rating Agency shall be
        the address specified therefor in the definition corresponding to the name
        of
        such Rating Agency, or such other address as either such Rating Agency may
        hereafter furnish to the Depositor and the Securities
        Administrator.

       

      Realized
        Losses:
        With
        respect to any date of determination and any Liquidated Mortgage Loan, the
        amount, if any, by which (a) the unpaid principal balance of such
        Liquidated Mortgage Loan together with accrued and unpaid interest thereon
        exceeds (b) the Liquidation Proceeds with respect thereto net of the
        expenses incurred by the Servicer in connection with the liquidation of such
        Liquidated Mortgage Loan and net of the amount of unreimbursed Servicing
        Advances with respect to such Liquidated Mortgage Loan.

       

      Record
        Date:
        With
        respect to any Distribution Date and any Certificate other than an Interest-Only
        Certificate, the close of business on the Business Day immediately preceding
        such Distribution Date; provided,
        however,
        that,
        for any Certificate issued in definitive form and for any Interest-Only
        Certificate, the Record Date shall be the close of business on the last Business
        Day of the month preceding the month in which such applicable Distribution
        Date
        occurs (or, in the case of the first Distribution Date, the Closing
        Date).

       

      Reference
        Bank:
        As
        defined in Section 4.04.

      
        
          
          

        

        
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      Regulation
        AB:
        Subpart
        229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject
        to
        such clarification and interpretation as have been provided by the Commission
        in
        the adopting release (Asset-Backed Securities, Securities Act Release No.
        33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
        Commission, or as may be provided by the Commission or its staff from time
        to
        time.

       

      Regulation
        S:
        Regulation S promulgated under the Securities Act or any successor provision
        thereto, in each case as the same may be amended from time to time; and all
        references to any rule, section or subsection of, or definition or term
        contained in, Regulation S means such rule, section, subsection, definition
        or
        term, as the case may be, or any successor thereto, in each case as the same
        may
        be amended from time to time.

       

      Regulation
        S Investment Letter: As defined in Section 5.02(b).

       

      Regular
        Certificates:
        As
        specified in the Preliminary Statement.

       

      Relevant
        Servicing Criteria:
        The
        Servicing Criteria applicable to the parties having reporting obligations
        hereunder, as set forth on Exhibit S attached hereto. For clarification
        purposes, multiple parties can have responsibility for the same Relevant
        Servicing Criteria. With respect to any Servicing Function Participant engaged
        by the Master Servicer, the Securities Administrator, the Custodian or the
        Servicer, the term “Relevant Servicing Criteria” may refer to a portion of the
        Relevant Servicing Criteria applicable to such parties.

       

      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
        Due Period as a result of the application of the Servicemembers Civil Relief
        Act
        or any applicable similar state statutes.

       

      REMIC:
        Each
        pool of assets in the Trust Fund designated as a REMIC pursuant to the
        Preliminary Statement.

       

      REMIC
        1:
        As
        described in the Preliminary Statement.

       

      REMIC
        2:
        As
        described in the Preliminary Statement.

       

      REMIC
        3:
        As
        described in the Preliminary Statement.

       

      REMIC
        3 Net Funds Cap:
        For any
        Distribution Date (and the related Interest Accrual Period) and any Class
        of
        LIBOR Certificates, an amount equal to (i) the weighted average of the interest
        rates on the Lower Tier Interests in REMIC 3 (other than any interest-only
        regular interest), weighted in proportion to their Class Certificate Balances
        as
        of the beginning of the related Interest Accrual Period, multiplied by (ii)
        the
        quotient of (a) 30, divided by (b) the actual number of days in the Interest
        Accrual Period.

       

      REMIC
        4:
        As
        described in the Preliminary Statement.

      
        
          
          

        

        
          -40-

          
            

          

        

        
          
          

        

      

       

      REMIC
        A-IO Available Funds Cap:
        For any
        Distribution Date (and the related Interest Accrual Period) and the Class
        A-IO
        Certificates the weighted average of the interest rates on the Lower Tier
        Interests in REMIC 2 weighted in proportion to their Class Certificate Balances
        at the beginning of the related Interest Accrual Period.

       

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

       

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

       

      REO
        Disposition:
        The
        final sale by the Servicer of any REO Property.

       

      REO
        Imputed Interest:
        As to
        any REO Property, for any period, an amount equivalent to interest (at the
        Mortgage Rate net of the applicable Servicing Fee Rate that would have been
        applicable to the related Mortgage Loan had it been outstanding) on the unpaid
        principal balance of the Mortgage Loan as of the date of acquisition thereof
        (as
        such balance is reduced pursuant to Section 3.17 by any income from the REO
        Property treated as a recovery of principal).

       

      REO
        Mortgage Loan:
        A
        Mortgage Loan where title to the related Mortgaged Property has been obtained
        by
        the Servicer in the name of the Trustee on behalf of the
        Certificateholders.

       

      REO
        Property:
        A
        Mortgaged Property acquired by the Trust Fund through foreclosure or
        deed-in-lieu of foreclosure in connection with a defaulted Mortgage
        Loan.

       

      Reportable
        Event:
        As
        defined in Section 8.12(a)(iii).

       

      Reporting
        Servicer:
        As
        defined in Section 8.12(a)(ii).

       

      Repurchase
        Price:
        With
        respect to any Mortgage Loan, an amount equal to the sum of (i) the unpaid
        principal balance of such Mortgage Loan as of the date of repurchase,
        (ii) interest on such unpaid principal balance of such Mortgage Loan at the
        Mortgage Rate from the last date through which interest has been paid to
        the
        date of repurchase, (iii) all unreimbursed Servicing Advances, and
        (iv) all expenses incurred by the Master Servicer, the Servicer or Trustee
        arising out of the Master Servicer’s, the Servicer’s or Trustee’s enforcement of
        the Originator’s or Sponsor’s repurchase obligation hereunder. 

       

      Request
        for Release:
        The
        Request for Release submitted by the Servicer to the Trustee, substantially
        in
        the form of Exhibit J.

       

      Residual
        Certificates:
        As
        specified in the Preliminary Statement.

      
        
          
          

        

        
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      Responsible
        Officer:
        When
        used with respect to the Trustee, the Securities Administrator, the Master
        Servicer, any vice president, any assistant vice president, any assistant
        secretary, any assistant treasurer, any associate, or any other officer of
        the
        Trustee, the Securities Administrator or the Master Servicer customarily
        performing functions similar to those performed by any of the above designated
        officers who at such time shall be officers to whom, with respect to a
        particular matter, such matter is referred because of such officer’s knowledge
        of and familiarity with the particular subject and who shall have direct
        responsibility for the administration of this Agreement.

       

      Rolling
        Three Month Delinquency Rate:
        With
        respect to any Distribution Date, the average of the Delinquency Rates for
        each
        of the three (or one or two, in the case of the first and second Distribution
        Dates) immediately preceding calendar months.

       

      Rule 144A
        Investment Letter:
        As
        defined in Section 5.02(b).

       

      Sarbanes-Oxley
        Act:
        The
        Sarbanes-Oxley Act of 2002 and the rules and regulations of the Commission
        promulgated thereunder (including any interpretations thereof by the
        Commission’s staff).

       

      Sarbanes-Oxley
        Certification:
        A
        written certification signed by an officer of the Master Servicer that complies
        with (i) the Sarbanes-Oxley Act, and (ii) Exchange Act Rules 13a-14(d) and
        15d-14(d), as in effect from time to time; provided that if, after the Closing
        Date (a) the Sarbanes-Oxley Act is amended, (b) the Rules referred to in
        clause
        (ii) are modified or superseded by any subsequent statement, rule or regulation
        of the Commission or any statement of a division thereof, or (c) any future
        releases, rules and regulations are published by the Commission from time
        to
        time pursuant to the Sarbanes-Oxley Act, which in any such case affects the
        form
        or substance of the required certification and results in the required
        certification being, in the reasonable judgment of the Master Servicer,
        materially more onerous that then form of the required certification as of
        the
        Closing Date, the Sarbanes-Oxley Certification shall be as agreed to by the
        Master Servicer and the Depositor following a negotiation in good faith to
        determine how to comply with any such new requirements.

       

      Scheduled
        Payment:
        The
        scheduled monthly payment on a Mortgage Loan due on any Due Date allocable
        to
        principal and/or interest on such Mortgage Loan which, unless otherwise
        specified herein, shall give effect to any related Debt Service Reduction
        and
        any Deficient Valuation that affects the amount of the monthly payment due
        on
        such Mortgage Loan.

       

      Securities
        Act:
        The
        Securities Act of 1933, as amended and the rules and regulations
        thereunder.

       

      Securities
        Administrator:
        Wells
        Fargo, and if a successor securities administrator is appointed hereunder,
        such
        successor.

       

      Securities
        Administrator Float Period:
        With
        respect to the Distribution Date and the related amounts in the Distribution
        Account, the period commencing on the Remittance Date immediately preceding
        such
        Distribution Date and ending on such Distribution Date. 

      
        
          
          

        

        
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      Senior
        Interest Payment Amount:
        With
        respect to any Distribution Date and any Class of Class A
        Certificates, the sum of the Interest Payment Amount and the Interest Carry
        Forward Amount, if any, for that Distribution Date for that Class.

       

      Senior
        Principal Payment Amount:
        With
        respect to any Distribution Date, the lesser of (i) the Principal Payment
        Amount
        for that Distribution Date and (ii) the excess of (a) the aggregate
        Class Certificate Balance of the Class A Certificates immediately prior to
        that Distribution Date over (b) the lesser of (x) 62.10% of the
        aggregate Stated Principal Balance of the Mortgage Loans for that Distribution
        Date and (y) the excess, if any, of the aggregate Stated Principal Balance
        of the Mortgage Loans for that Distribution Date over 0.50% of the aggregate
        Stated Principal Balance of the Mortgage Loans as of the Cut-off
        Date.

       

      Servicer:
        Wells
        Fargo, and any successor in interest.

       

      Servicer
        Remittance Report:
        As
        defined in Section 4.03(d).

       

      Service(s)(ing):
        In
        accordance with Regulation AB, the act of servicing and administering the
        Mortgage Loans or any other assets of the Trust Fund by an entity that meets
        the
        definition of “servicer’ set forth in Item 1101 of Regulation AB and is subject
        to the disclosure requirements set forth in Item 1108 of Regulation AB. For
        clarification purposes, any uncapitalized occurrence of this term in this
        Agreement shall have the meaning commonly understood by participants in the
        residential mortgage-backed securitization market.

       

      Servicing
        Advances:
        The
        reasonable “out-of-pocket” costs and expenses (including legal fees) incurred by
        the Servicer in the performance of its servicing obligations in connection
        with
        a default, delinquency or other unanticipated event, including, but not limited
        to, the cost of (i) the maintenance, preservation, restoration, inspection
        and protection of a Mortgaged Property, (ii) any enforcement or judicial
        proceedings, including foreclosures and litigation, in respect of a particular
        Mortgage Loan, (iii) the management (including reasonable fees in
        connection therewith) and liquidation of any REO Property and (iv) the
        performance of its obligations under Sections 3.01, 3.09, 3.13 and 3.15.
        The Servicing Advances shall 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 satisfaction or foreclosure
        in
        respect of any Mortgage Loan to the extent not recovered from the Mortgagor
        or
        otherwise payable under this Agreement and obtaining or correcting any legal
        documentation required to be included in the Mortgage File and necessary
        for the
        Servicer to perform its obligations under this Agreement. The Servicer shall
        not
        be required to make any Nonrecoverable Servicing Advances.

       

      Servicing
        Criteria:
        The
        criteria set forth in paragraph (d) of Item 1122 of Regulation AB, as such
        may
        be amended from time to time.

       

      Servicing
        Fee:
        With
        respect to each Mortgage Loan and for any calendar month, an amount equal
        to one
        month’s interest (or in the event of any payment of interest which accompanies
        a
        Principal Prepayment made by the Mortgagor during such calendar month, interest
        for the number of days covered by such payment of interest) at the applicable
        Servicing Fee Rate on the applicable Stated Principal Balance of such Mortgage
        Loan as of the first day of such calendar month. Such fee shall be payable
        monthly. The Servicing Fee is payable solely from the interest portion
        (including recoveries with respect to interest from Liquidation Proceeds,
        Subsequent Recoveries, Insurance Proceeds, Condemnation Proceeds and proceeds
        received with respect to REO Properties) of such Scheduled Payment
        collected by the Servicer, or as otherwise provided under
        Section 3.11.

      
        
          
          

        

        
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      Servicing
        Fee Rate:
        0.500%
        per annum.

       

      Servicing
        File:
        With
        respect to each Mortgage Loan, the file retained by the Servicer consisting
        of
        originals or copies of all documents in the Mortgage File which are not
        delivered to the Custodian on behalf of the Trustee in the Custodial File
        and
        copies of the Mortgage Loan Documents set forth in Exhibit K
        hereto.

       

      Servicing
        Function Participant:
        Any
        Sub-Servicer or Subcontractor of the Servicer, the Master Servicer, the
        Custodian or the Securities Administrator, respectively.

       

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

       

      Similar
        Law:
        As
        defined in Section 5.02(b).

       

      60+
        Day Delinquent Mortgage Loan:
        Each
        Mortgage Loan with respect to which any portion of a Scheduled Payment is,
        as of
        the last day of the prior Due Period, two months or more past due (including
        any
        such Mortgage Loan in foreclosure, any such Mortgage Loan related to REO
        Property and any such Mortgage Loan where the related Mortgagor has filed
        for
        bankruptcy), without giving effect to any grace period.

       

      Sponsor:
        HSBC
        Bank USA, National Association, a national banking association, and its
        successors in interest. 

       

      Standard &
        Poor’s:
        Standard & Poor’s Ratings Services, a division of The McGraw-Hill
        Companies, Inc. If Standard & Poor’s is designated as a Rating Agency
        in the Preliminary Statement, for purposes of Section 12.05(c) the address
        for notices to Standard & Poor’s shall be Standard & Poor’s,
        55 Water Street, New York, New York 10041, Attention: Residential Mortgage
        Surveillance Group - HASCO (HSI Asset Securitization Corporation Trust),
        Series 2006-WMC1, or such other address as Standard & Poor’s may
        hereafter furnish to the Depositor and the Securities
        Administrator.

       

      Standard &
        Poor’s Glossary:
        The
        Standard & Poor’s LEVELS® Glossary, as may be in effect from time to
        time.

       

      Startup
        Day:
        The
        Closing Date.

       

      Stated
        Principal Balance:
        As to
        each Mortgage Loan and as of any date of determination, (i) the principal
        balance of the Mortgage Loan at the Cut-off Date after giving effect to payments
        of principal due on or before such date (whether or not received), minus
        (ii) all amounts previously remitted to the Securities Administrator with
        respect to the related Mortgage Loan representing payments or recoveries
        of
        principal including advances in respect of scheduled payments of principal.
        For
        purposes of any Distribution Date, the Stated Principal Balance of any Mortgage
        Loan will give effect to any scheduled payments of principal received by
        the
        Servicer on or prior to the related Determination Date or advanced by the
        Servicer for the related Remittance Date and any unscheduled principal payments
        and other unscheduled principal collections received during the related
        Prepayment Period, and the Stated Principal Balance of any Mortgage Loan
        that
        has prepaid in full or has become a Liquidated Mortgage Loan during the related
        Prepayment Period shall be zero.

      
        
          
          

        

        
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      Stepdown
        Date:
        The
        earlier to occur of (i) the first Distribution Date following the Distribution
        Date on which the aggregate Class Certificate Balances of the Class A
        Certificates have been reduced to zero and (ii) the later to occur of (a)
        the
        Distribution Date in August 2009 and (b) the first Distribution Date on which
        the Credit Enhancement Percentage for the Class A Certificates (calculated
        for
        this purpose only after taking into account payments of principal applied
        to
        reduce the Stated Principal Balance of the Mortgage Loans for that Distribution
        Date but prior to any applications of Principal Payment Amount to the
        Certificates on that Distribution Date) is greater than or equal to
        37.90%.

       

      Subcontractor:
        Any
        vendor, subcontractor or other Person that is not responsible for the overall
        servicing of the Mortgage Loans but performs one or more discrete functions
        identified in Item 1122(d) of Regulation AB with respect to Mortgage Loans
        under
        the direction or authority of any Servicer (or a Sub-Servicer of any Servicer),
        the Master Servicer, the Custodian or the Securities Administrator.

       

      Subsequent
        Recovery:
        With
        respect to any Mortgage Loan or related Mortgaged Property that became a
        Liquidated Mortgage Loan or was otherwise disposed of, all amounts received
        in
        respect of such Liquidated Mortgage Loan after an Applied Realized Loss Amount
        related to such Mortgage Loan or Mortgaged Property is allocated to reduce
        the
        Class Certificate Balance of any Class of Class M Certificates.
        Any Subsequent Recovery that is received during a Prepayment Period will
        be
        included as part of the Principal Remittance Amount for the related Distribution
        Date.

       

      Sub-Servicer:
        Any
        Person that services Mortgage Loans on behalf of a Servicer, and is responsible
        for the performance (whether directly or through sub-servicers or
        Subcontractors) of servicing functions required to be performed under this
        Agreement, any related Servicing Agreement or any sub-servicing agreement
        that
        are identified in Item 1122(d) of Regulation AB.

       

      Subservicing
        Account:
        As
        defined in Section 3.08.

       

      Subservicing
        Agreement:
        As
        defined in Section 3.02(a).

       

      Substitute
        Mortgage Loan:
        A
        Mortgage Loan substituted by the Originator or the Sponsor for a Deleted
        Mortgage Loan which must, on the date of such substitution, as confirmed
        in a
        Request for Release, substantially in the form of Exhibit J,
        (i) have a Stated Principal Balance, after deduction of all Scheduled
        Payments due in the month of substitution, not in excess of the Stated Principal
        Balance of the Deleted Mortgage Loan; (ii) be accruing interest at a rate
        not lower than and not more than 1.00% higher than that of the Deleted Mortgage
        Loan; (iii) have a remaining term to maturity not greater than (and not
        more than one year less than) that of the Deleted Mortgage Loan; (iv) be of
        the same type as the Deleted Mortgage Loan; and (v) comply with each
        representation and warranty set forth in Section 2.03.

      
        
          
          

        

        
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      Substitution
        Adjustment Amount:  As
        defined in Section 2.03.

       

      Supplemental
        Interest Trust:
        The
        corpus of a trust created pursuant to Section 4.06 of this Agreement and
        designated as the “Supplemental Interest Trust,” consisting of the Swap
        Agreement, the Supplemental Interest Trust Account, the Swap Account, the
        Excess
        Reserve Fund Account, the Cap Agreement, the Cap Account, the right to receive
        the Class X Distributable Amount as provided in Section 4.02(a)(iii)(G),
        the
        Class LT4-I Interest in REMIC 4 and the right to receive Class I
        Shortfalls.

       

      Supplemental
        Interest Trust Account:
        The
        Account created pursuant to Section 4.06(a).

       

      Swap
        Account:
        The
        sub-account of the Supplemental Interest Trust Account created pursuant to
        Section 4.06(a).

       

      Swap
        Agreement:
        The
        interest rate swap agreement (Reference No. 3253013) entered into by the
        Supplemental Interest Trust and the Swap Counterparty, dated August 4, 2006,
        which agreement provides for, among other things, a Net Swap Payment to be
        paid
        pursuant to the conditions provided therein, commencing with the Distribution
        Date in September 2006 and ending on the Distribution Date in February 2010,
        together with any schedules, confirmations or other agreements relating thereto,
        attached hereto as Exhibit O.

       

      Swap
        Amount:
        With
        respect to each Distribution Date and the related Swap Payment Date, the
        sum of
        any Net Swap Payment and any Swap Termination Payment deposited in the Swap
        Account.

       

      Swap
        Counterparty:
        The
        counterparty to the Supplemental Interest Trust under the Swap Agreement,
        and
        any successor in interest or assigns. Initially, the Swap Counterparty shall
        be
        ABN AMRO Bank N.V.

       

      Swap
        Counterparty Trigger Event:
        A Swap
        Counterparty Trigger Event shall have occurred if any of a Swap Default with
        respect to which the Swap Counterparty is a Defaulting Party, a Termination
        Event (other than a “Tax Event” or “Illegality” as such terms are defined in the
        Master Agreement) with respect to which the Swap Counterparty is the sole
        Affected Party or an Additional Termination Event with respect to which the
        Swap
        Counterparty is the sole Affected Party has occurred.

       

      Swap
        Default:
        Any of
        the circumstances constituting an “Event of Default” under the Swap
        Agreement.

      
        
          
          

        

        
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      Swap
        LIBOR:
        With
        respect to any Distribution Date (and the Accrual Period relating to such
        Distribution Date), the product of (i) the Floating Rate Option (as defined
        in
        the Swap Agreement) for the related Swap Payment Date, (ii) two, and (iii)
        the
        quotient of (a) the actual number of days in the Accrual Period for the LIBOR
        Certificates and (b) 30, as calculated by the Swap Counterparty and furnished
        to
        the Securities Administrator.

       

      Swap
        Payment Date:
        For so
        long as the Swap Agreement is in effect or any amounts remain unpaid thereunder,
        the Business Day immediately preceding each Distribution Date.

       

      Swap
        Replacement Receipts:
        As
        defined in Section 4.08(a)(i).

       

      Swap
        Replacement Receipts Account:
        As
        defined in Section 4.08(a)(i).

       

      Swap
        Termination Payment:
        Upon
        the designation of an “Early Termination Date” as defined in the Swap Agreement,
        the payment required to be made by the Supplemental Interest Trust to the
        Swap
        Counterparty, or by the Swap Counterparty to the Supplemental Interest Trust,
        as
        applicable, pursuant to the terms of the Swap Agreement, and any unpaid amounts
        due on previous Distribution Dates and accrued interest thereon as provided
        in
        the Swap Agreement, as calculated by the Swap Counterparty and furnished
        to the
        Securities Administrator.

       

      Swap
        Termination Receipts:
        As
        defined in Section 4.08(a)(i).

       

      Swap
        Termination Receipts Account:
        As
        defined in Section 4.08(a)(i).

       

      Tax
        Matters Person:
        The Holder of the Class R Certificates designated as “tax matters person” of
        each REMIC created hereunder in the manner provided under Treasury Regulations
        Section 1.860F-4(d) and Treasury Regulations Section
        301.6231(a)(7)-1.

       

      Tax
        Service Contract:
        As defined in Section 3.09.

       

      Telerate
        Page 3750:
        The
        display page currently so designated on the Bridge Telerate Service (or such
        other page as may replace that page on that service for displaying
        comparable rates or prices).

       

      Termination
        Event:
        The
        occurrence of a termination event under the termination provision of the
        Cap
        Agreement or Swap Agreement, as applicable.

       

      Termination
        Price:
        As
        defined in Section 11.01.

       

      Total
        Monthly Excess Spread:
        As to
        any Distribution Date, an amount equal to the excess, if any, of (i) the
        interest on the Mortgage Loans (other than Prepayment Interest Excesses)
        received by the Servicer on or prior to the related Determination Date or
        advanced by the Servicer for the related Remittance Date (net of Expense
        Fees)
        over (ii) the sum of the amounts payable to the Certificates pursuant to
        Section 4.02(a)(i) (A) through (D) on such Distribution Date.

      
        
          
          

        

        
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      Transfer:
        Any
        direct or indirect transfer or sale of any Ownership Interest in a Residual
        Certificate.

       

      Transfer
        Affidavit:
        As
        defined in Section 5.02(c).

       

      Transferor
        Certificate:
        As
        defined in Section 5.02(b).

       

      Trigger
        Event:
        Either
        a Cumulative Loss Trigger Event or a Delinquency Trigger Event.

       

      Trust:
        The
        express trust created hereunder in Section 2.01(c).

       

      Trust
        Fund:
        The
        corpus of the trust created hereunder consisting of (i) the Mortgage Loans
        and all interest and principal with respect thereto received on or after
        the
        related Cut-off Date, other than such amounts which were due on the Mortgage
        Loans on or prior to the related Cut-off Date; (ii) the Collection Account,
        the Distribution Account, the Cap Termination Receipts Account, the Cap
        Replacement Receipts Account the Swap Termination Receipts Account, the Swap
        Replacement Receipts Account and
        all
        amounts deposited therein pursuant to the applicable provisions of this
        Agreement; (iii) property that secured a Mortgage Loan and has been
        acquired by foreclosure, deed-in-lieu of foreclosure or otherwise; (iv) the
        Depositor’s rights under the Purchase Agreement; (v) the Insurance
        Policies; and (vi) all proceeds of the conversion, voluntary or
        involuntary, of any of the foregoing.

       

      Trustee:
        Deutsche Bank National Trust Company, a national banking association, and
        its
        successors in interest and, if a successor trustee is appointed hereunder,
        such
        successor.

       

      Underwriters’
        Exemption:
        Any
        exemption listed under footnote 1 of, and amended by, Prohibited Transaction
        Exemption 96-84, 61 Fed. Reg. 58234 (1996), as amended by PTE 97-34,
        62 Fed. Reg. 39021 (1997), PTE 2000-58, 65 Fed. Reg. 67765 (2000) and
        PTE 2002-41, 67 Fed. Reg. 54487 (2002), or any successor
        exemption.

       

      Unpaid
        Realized Loss Amount:
        With
        respect to any Class of Class M Certificates and as to any
        Distribution Date, is the excess of (i) Applied Realized Loss Amounts with
        respect to such Class over (ii) the sum of (a) all distributions
        in reduction of such Applied Realized Loss Amounts on all previous Distribution
        Dates, and (b) the amount by which the Class Certificate Balance of
        such Class has been increased due to the distribution of any Subsequent
        Recoveries on all previous Distribution Dates. Any amounts distributed to
        a
        Class of Class M Certificates in respect of any Unpaid Realized Loss
        Amount will not be applied to reduce the Class Certificate Balance of such
        Class.

       

      Upper
        Tier REMIC:
        As
        described in the Preliminary Statement.

       

      Upper
        Tier REMIC Regular Interest:
        As
        described in the Preliminary Statement.

       

      U.S.
        Person:
        (i) A citizen or resident of the United States; (ii) a corporation (or
        entity treated as a corporation for tax purposes) created or organized in
        the
        United States or under the laws of the United States or of any State thereof,
        including, for this purpose, the District of Columbia; (iii) a partnership
        (or entity treated as a partnership for tax purposes) organized in the United
        States or under the laws of the United States or of any State thereof,
        including, for this purpose, the District of Columbia (unless provided otherwise
        by future Treasury regulations); (iv) an estate whose income is includible
        in gross income for United States income tax purposes regardless of its source;
        or (v) 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
        U.S.
        Persons have authority to control substantial decisions of the trust.
        Notwithstanding the last clause of the preceding sentence, to the extent
        provided in Treasury regulations, certain trusts in existence on August 20,
        1996, and treated as U.S. Persons prior to such date, may elect to continue
        to
        be U.S. Persons.

      
        
          
          

        

        
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      Voting
        Rights:
        The
        portion of the voting rights of all of the Certificates which is allocated
        to
        any Certificate. As of any date of determination, 1.00% of all Voting Rights
        shall be allocated to each of the Class A-IO, the Class A-5, Class X, Class
        P and Class R Certificates, if any (such Voting Rights to be allocated among
        the
        holders of Certificates of each such Class in accordance with their
        respective Percentage Interests) and the remaining Voting Rights shall be
        allocated among Holders of the remaining Classes of Certificates in proportion
        to the Certificate Balances of their respective Certificates on such date.
        After
        the Class Notional Balance of the Class A-IO Certificates have been reduced
        to
        zero, the Voting Rights allocated to the Class A-IO Certificates will be
        allocated to any outstanding Classes of LIBOR Certificates on a pro
        rata
        basis.

       

      Wells
        Fargo:
        Wells
        Fargo Bank, N.A., a national banking association, and its successors in
        interest.

       

      ARTICLE
        II

       

      CONVEYANCE
        OF MORTGAGE LOANS;

      REPRESENTATIONS
        AND WARRANTIES

       

      Section
        2.01           Conveyance
        of Mortgage Loans.
        (a) The Depositor, concurrently with the execution and delivery hereof,
        hereby sells, transfers, assigns, sets over and otherwise conveys to the
        Trustee
        for the benefit of the Certificateholders, without recourse, all the right,
        title and interest of the Depositor in and to the Trust Fund including all
        interest and principal received on or with respect to the Mortgage Loans
        on or
        after the Cut-off Date (other than Scheduled Payments due on the Mortgage
        Loans
        on or before the Cut-off Date).

       

      Concurrently
        with the execution of this Agreement, the Derivative Agreements shall be
        delivered to the Securities Administrator. In connection therewith, the
        Depositor hereby directs the Securities Administrator (solely in its capacity
        as
        securities administrator of the Supplemental Interest Trust) and the Securities
        Administrator is hereby authorized to execute and deliver each of the Derivative
        Agreements on behalf of the Supplemental Interest Trust, for the benefit
        of
        Certificateholders. The Depositor, the Sponsor, the Master Servicer, the
        Servicer, the Originator, the Credit Risk Manager and the Certificateholders
        (by
        their acceptance of such Certificates) acknowledge and agree that the Securities
        Administrator is executing and delivering the Derivative Agreements solely
        in
        its capacity as securities administrator of the Supplemental Interest Trust
        and
        not in its individual capacity. The Securities Administrator shall have no
        duty
        or responsibility to enter into any other interest rate swap agreement upon
        the
        expiration or termination of the Swap Agreement or interest rate cap agreement
        upon the termination of the Cap Agreement unless so directed by the
        Depositor.

      
        
          
          

        

        
          -49-

          
            

          

        

        
          
          

        

      

       

      Concurrently
        with the execution and delivery of this Agreement, the Depositor does hereby
        assign to the Trustee all of its rights and interest under the Purchase
        Agreement, including the right to enforce the Sponsor’s obligation to repurchase
        or substitute defective Mortgage Loans under Section 5 of the Purchase
        Agreement. The Trustee hereby accepts such assignment, and as set forth herein
        in Section 2.03(k), shall be entitled to exercise all the rights of the
        Depositor under the Purchase Agreement as if, for such purpose, it were the
        Depositor.

       

      (b)           In
        connection with the transfer and assignment of each Mortgage Loan, the Depositor
        has delivered or caused to be delivered to the Custodian for the benefit
        of the
        Certificateholders the following documents or instruments with respect to
        each
        Mortgage Loan so assigned:

       

      (i)           the
        original Mortgage Note bearing all intervening endorsements necessary to
        show a
        complete chain of endorsements from the original payee, endorsed in blank,
“Pay
        to the order of _____________, without recourse”, and, if previously endorsed,
        signed in the name of the last endorsee by a duly qualified officer of the
        last
        endorsee;

       

      (ii)           the
        original Assignment of Mortgage for each Mortgage Loan, in form and substance
        acceptable for recording. The Mortgage shall be assigned, with assignee’s name
        left blank;

       

      (iii)           the
        original of each guarantee executed in connection with the Mortgage Note,
        if
        any;

       

      (iv)           the
        original recorded Mortgage, with evidence of recording thereon. If in connection
        with any Mortgage Loan, the original Mortgage cannot be delivered with evidence
        of recording thereon on or prior to the Closing Date because of a delay caused
        by the public recording office where such Mortgage has been delivered for
        recordation or because such Mortgage has been lost or because such public
        recording office retains the original recorded Mortgage, the Originator shall
        deliver or cause to be delivered to the Custodian, (A) in the case of a
        delay caused by the public recording office, a copy of such Mortgage certified
        by the Originator, escrow agent, title insurer or closing attorney to be
        a true
        and complete copy of the original recorded Mortgage and (B) in the case
        where a public recording office retains the original recorded Mortgage or
        in the
        case where a Mortgage is lost after recordation in a public recording office,
        a
        copy of such Mortgage certified by such public recording office to be a true
        and
        complete copy of the original recorded Mortgage;

       

      (v)           originals
        or a certified copy of each modification agreement, if any;

       

      (vi)           the
        originals of all intervening assignments of Mortgage with evidence of recording
        thereon evidencing a complete chain of ownership from the originator of the
        Mortgage Loan to the last assignee, or if any such intervening assignment
        of
        Mortgage has not been returned from the applicable public recording office
        or
        has been lost or if such public recording office retains the original recorded
        intervening assignments of Mortgage, a photocopy of such intervening assignment
        of Mortgage, together with (A) in the case of a delay caused by the public
        recording office, an officer’s certificate of the Originator, escrow agent,
        closing attorney or the title insurer insuring the Mortgage stating that
        such
        intervening assignment of Mortgage has been delivered to the appropriate
        public
        recording office for recordation and that such original recorded intervening
        assignment of Mortgage or a copy of such intervening assignment of Mortgage
        certified by the appropriate public recording office to be a true and complete
        copy of the original recorded intervening assignment of Mortgage will be
        promptly delivered to the Custodian upon receipt thereof by the party delivering
        the officer’s certificate or by the Originator; or (B) in the case of an
        intervening assignment of mortgage where a public recording office retains
        the
        original recorded intervening assignment of Mortgage or in the case where
        an
        intervening assignment of Mortgage is lost after recordation in a public
        recording office, a copy of such intervening assignment of Mortgage with
        recording information thereon certified by such public recording office to
        be a
        true and complete copy of the original recorded intervening assignment of
        Mortgage;

      
        
          
          

        

        
          -50-

          
            

          

        

        
          
          

        

      

       

      (vii)           if
        the Mortgage Note, the Mortgage, any Assignment of Mortgage or any other
        related
        document has been signed by a Person on behalf of the Mortgagor, the copy
        of the
        power of attorney or other instrument that authorized and empowered such
        Person
        to sign;

       

      (viii)           the
        original lender’s title insurance policy (or a marked title insurance
        commitment, in the event that an original lender’s title insurance policy has
        not yet been issued) in the form of an ALTA mortgage title insurance policy,
        containing all required endorsements and insuring the Trustee and its successors
        and assigns as to the first priority lien of the Mortgage in the original
        principal amount of the Mortgage Loan;

       

      (ix)           if
        applicable, the original of any Primary Mortgage Insurance Policy or certificate
        or, an electronic certification, evidencing the existence of the Primary
        Mortgage Insurance Policy or certificate, if private mortgage guaranty insurance
        is required; and

       

      (x)           original
        of any security agreement, chattel mortgage or equivalent document executed
        in
        connection with the Mortgage, if any.

       

      To
        the
        extent not previously delivered to the Sponsor pursuant to the Master MLPSA,
        the
        Originator shall promptly upon receipt from the respective recording office
        cause to be delivered to the Custodian the original recorded document described
        in clauses (iv) and (vi) above.

       

      From
        time
        to time, the Originator, the Depositor or the Servicer, as applicable, shall
        forward to the Custodian additional original documents, additional documents
        evidencing an assumption, modification, consolidation or extension of a Mortgage
        Loan, in accordance with the terms of this Agreement upon receipt of such
        documents. All such mortgage documents held by the Custodian as to each Mortgage
        Loan shall constitute the “Custodial
        File”.

      
        
          
          

        

        
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      To
        the
        extent not previously delivered to the Sponsor pursuant to the Master MLPSA,
        on
        or prior to the Closing Date, the Originator shall deliver to the Custodian
        Assignments of Mortgages, in blank, for each Mortgage Loan. No later than
        thirty
        (30) Business Days following the later of the Closing Date and the date of
        receipt by the Servicer of the complete recording information for a Mortgage,
        the Servicer shall promptly submit or cause to be submitted for recording,
        at
        the expense of the Originator and at no expense to the Trust Fund, the Trustee,
        the Servicer or the Depositor, in the appropriate public office for real
        property records, each Assignment of Mortgage referred to in
        Section 2.01(b)(ii). Notwithstanding the foregoing, however, for
        administrative convenience and facilitation of servicing and to reduce closing
        costs, the Assignments of Mortgage shall not be required to be completed
        and
        submitted for recording with respect to any Mortgage Loan if the Trustee
        and each Rating Agency have received an Opinion of Counsel, satisfactory
        in form
        and substance to the Trustee and each Rating Agency to the effect that the
        recordation of such Assignments of Mortgage in any specific jurisdiction
        is not
        necessary to protect the Trust Fund’s interest in the related Mortgage Note. If
        the Assignment of Mortgage is to be recorded, the Mortgage shall be assigned
        by
        the Originator, at the expense of the Originator, to “Deutsche Bank National
        Trust Company, as trustee under the Pooling and Servicing Agreement dated
        as of
        July 1, 2006, for HSI Asset Securitization Corporation Trust 2006-WMC1”. In the
        event that any such Assignment of Mortgage is lost or returned unrecorded
        because of a defect therein, the Originator shall promptly cause to be delivered
        a substitute Assignment of Mortgage to cure such defect and thereafter cause
        each such assignment to be duly recorded at no expense to the Trust
        Fund.

       

      In
        the
        event that such original or copy of any document submitted for recordation
        to
        the appropriate public recording office is not so delivered to the Trustee
        within 180 days (or such other time period as may be required by any Rating
        Agency) following the Closing Date, and in the event that the Originator
        does
        not cure such failure within 30 days of discovery or receipt of written
        notification of such failure from the Depositor, the related Mortgage Loan
        shall, upon the request of the Depositor, be repurchased by the Originator
        at
        the price and in the manner specified in Section 2.03. The foregoing
        repurchase obligation shall not apply in the event that the Originator cannot
        deliver such original or copy of any document submitted for recordation to
        the
        appropriate public recording office within the specified period due to a
        delay
        caused by the recording office in the applicable jurisdiction; provided,
        that
        the Originator shall instead deliver a recording receipt of such recording
        office or, if such recording receipt is not available, an officer’s certificate
        of an officer of the Originator, confirming that such document has been accepted
        for recording.

       

      Notwithstanding
        anything to the contrary contained in this Section 2.01, in those instances
        where the public recording office retains or loses the original Mortgage
        or
        assignment after it has been recorded, the obligations of the Originator
        shall
        be deemed to have been satisfied upon delivery by the Originator to the Trustee,
        prior to the Closing Date of a copy of such Mortgage or assignment, as the
        case
        may be, certified (such certification to be an original thereof) by the public
        recording office to be a true and complete copy of the recorded original
        thereof.

       

      (c)           The
        Depositor does hereby establish, pursuant to the further provisions of this
        Agreement and the laws of the State of New York, an express trust (the
“Trust”)
        to be
        known, for convenience, as “HSI Asset Securitization Corporation Trust
        2006-WMC1” and Deutsche Bank National Trust Company is hereby appointed as
        Trustee and Wells Fargo Bank, N.A. is appointed as Securities Administrator
        in
        accordance with the provisions of this Agreement. The parties hereto acknowledge
        and agree that it is the policy and intention of the Trust to acquire only
        Mortgage Loans meeting the requirements set forth in this Agreement, including
        without limitation, the representations and warranties set forth in the
        Schedules hereto.

      
        
          
          

        

        
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      (d)           The
        Trust shall have the capacity, power and authority, and the Trustee on behalf
        of
        the Trust is hereby authorized, to accept the sale, transfer, assignment,
        set
        over and conveyance by the Depositor to the Trust of all the right, title
        and
        interest of the Depositor in and to the Trust Fund (including, without
        limitation, the Mortgage Loans) pursuant to Section 2.01(a). 

       

      Section
        2.02           Acceptance
        by the Custodian of the Mortgage Loans.
        The
        Custodian shall acknowledge, on the Closing Date, receipt by the Custodian
        of
        the documents identified in the Initial Certification in the form annexed
        hereto
        as Exhibit E (“Initial
        Certification”),
        and
        declares that it holds and will hold such documents and the other documents
        delivered to it pursuant to Section 2.01, and that it holds or will hold
        such other assets as are included in the Trust Fund, in trust for the exclusive
        use and benefit of all present and future Certificateholders. The Custodian
        shall maintain possession of the related Mortgage Notes in the States of
        Minnesota, California, and Utah unless otherwise permitted by the Rating
        Agencies.

       

      In
        connection with the Closing Date, the Custodian shall be required to deliver
        via
        facsimile (with original to follow the next Business Day) to the Depositor
        and
        the Trustee an Initial Certification prior to the Closing Date, or, as the
        Depositor agrees on the Closing Date, certifying receipt of a Mortgage Note
        and
        Assignment of Mortgage for each Mortgage Loan. The Custodian shall not be
        responsible to verify the validity, sufficiency or genuineness of any document
        in any Custodian File.

       

      Within
        45 days of the Closing Date (and every month thereafter until all
        exceptions are cleared), the Custodian shall ascertain that all documents
        identified in the Document Certification and Exception Report in the form
        attached hereto as Exhibit F are in its possession, and shall deliver to
        the Depositor, the Trustee, the Originator and Wells Fargo, as Servicer,
        a
        Document Certification and Exception Report, in the form annexed hereto as
        Exhibit F, to the effect 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 such certification as an exception
        and
        not covered by such certification): (i) all documents identified in the
        Document Certification and Exception Report and required to be reviewed by
        it
        are in its possession; (ii) such documents have been reviewed by it and
        appear regular on their face and relate to such Mortgage Loan; (iii) based
        on its examination and only as to the foregoing documents, the information
        set
        forth in items (1), (2), (3), (15), (18) and (22) of the Data Tape
        Information respecting such Mortgage Loan is correct; and (iv) each
        Mortgage Note has been endorsed as provided in Section 2.01 of this
        Agreement. Neither the Trustee nor the Custodian shall be responsible to
        verify
        the validity, sufficiency or genuineness of any document in any Custodial
        File.

       

      The
        Custodian shall retain possession and custody of each Custodial File in
        accordance with and subject to the terms and conditions set forth herein.
        The
        Servicer shall promptly deliver to the Custodian, upon the execution or receipt
        thereof, the originals of such other documents or instruments constituting
        the
        Custodial File as come into the possession of the Servicer from time to
        time.

      
        
          
          

        

        
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      The
        Originator shall deliver to the Servicer copies of all trailing documents
        required to be included in the Custodial File at the same time the original
        or
        certified copies thereof are delivered to the Custodian, including but not
        limited to such documents as the title insurance policy and any other Mortgage
        Loan documents upon return from the public recording office. The documents
        shall
        be delivered by the Originator at the Originator’s expense to the
        Servicer.

       

       

      Section
        2.03           Representations,
        Warranties and Covenants of the Originator and the Servicer; Remedies for
        Breaches of Representations and Warranties with Respect to the Mortgage
        Loans.
        (a)  Wells Fargo, in its capacity as Servicer, makes the representations
        and warranties set forth in Schedule II
        hereto,
        to the Depositor, the Master Servicer, the Securities Administrator and the
        Trustee as of the Closing Date.

       

      (b)           The
        Originator makes the representations and warranties set forth in
        Schedule III and Schedule IV hereto, to the Depositor, the Master Servicer,
        the Securities Administrator and the Trustee as of the date specified
        therein.

       

      (c)           It
        is understood and agreed by the Servicer and the Originator that the
        representations and warranties set forth in this Section 2.03 shall survive
        the transfer of the Mortgage Loans by the Depositor to the Trustee on the
        Closing Date, and shall inure to the benefit of the Depositor, the Trustee
        and
        the Trust Fund notwithstanding any restrictive or qualified endorsement on
        any
        Mortgage Note or Assignment of Mortgage or the examination or failure to
        examine
        any Mortgage File. Upon discovery by the Originator, the Depositor, the
        Securities Administrator, the Trustee, the Master Servicer or the Servicer
        of a
        breach of any of the foregoing representations and warranties, the party
        discovering such breach shall give prompt written notice to the
        others.

       

      (d)           Within
        30 days of the earlier of either discovery by or notice to the Originator
        that any Mortgage Loan does not conform to the requirements as determined
        in the
        Custodian’s review of the related Custodial File or within 60 days of the
        earlier of either discovery by or notice to the Originator of any breach
        of a
        representation or warranty referred to in Section 2.03(b) that materially
        and adversely affects the value of any Mortgage Loan or the interest of the
        Trustee or the Certificateholders therein, the Originator shall use commercially
        reasonable efforts to cause to be remedied a material defect in a document
        constituting part of a Mortgage File or promptly to cure such breach in all
        material respects and, if such defect or breach cannot be remedied, the
        Originator shall, at the Depositor’s option as specified in writing and provided
        to the Originator and the Trustee, (i) if such 30- or 60-day period, as
        applicable, expires prior to the second anniversary of the Closing Date,
        remove
        such Mortgage Loan (a “Deleted
        Mortgage Loan”)
        from
        the Trust Fund and substitute in its place a Substitute Mortgage Loan, in
        the
        manner and subject to the conditions set forth in this Section 2.03; or
        (ii) repurchase such Mortgage Loan at the Repurchase Price; provided,
        however,
        that
        any such substitution pursuant to clause (i) above shall not be
        effected prior to the delivery to the Custodian of a Request for Release
        substantially in the form of Exhibit J, and the delivery of the Mortgage
        File to the Custodian for any such Substitute Mortgage Loan. Notwithstanding
        the
        foregoing, a breach (i) that causes a Mortgage Loan not to constitute a
“qualified mortgage” within the meaning of Section 860G(a)(3) of the Code
        or (ii) of any of the representations and warranties set forth in items number
         (6), (56), (64), (66), (67), (68). (69), (70), (72). (74), (75), (76),
        (78) and (79) of Schedule IV with respect to any Mortgage Loan will be deemed
        automatically to materially and adversely affect the value of such Mortgage
        Loan
        and the interests of the Trustee and Certificateholders in such Mortgage
        Loan,
        thus requiring the repurchase or substitution of such Mortgage Loan by the
        Originator. In the event that the Trustee receives notice of a breach by
        the
        Originator of any of the representations and warranties described in the
        immediately preceding sentence, the Trustee shall give notice of such breach
        to
        the Originator and request the Originator to substitute such Mortgage Loan
        or to
        repurchase such Mortgage Loan at the Repurchase Price within sixty
        (60) days of the receipt of such notice. The Originator shall repurchase
        each such Mortgage Loan within 60 days of the earlier of discovery or
        receipt of notice with respect to each such Mortgage Loan.

      
        
          
          

        

        
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      (e)           With
        respect to any Substitute Mortgage Loan or Loans, the Originator shall deliver
        to the Custodian for the benefit of the Certificateholders the Mortgage Note,
        the Mortgage, the related assignment of the Mortgage, and such other documents
        and agreements as are required by Section 2.01, with the Mortgage Note
        endorsed and the Mortgage assigned as required by Section 2.01. No
        substitution is permitted to be made with respect to any Distribution Date
        after
        the end of the related Prepayment Period. Scheduled Payments due with respect
        to
        Substitute Mortgage Loans in the Due Period of substitution shall not be
        part of
        the Trust Fund and will be retained by the Originator on the next succeeding
        Distribution Date. For the Due Period of substitution, distributions to
        Certificateholders will include the Scheduled Payment due on any Deleted
        Mortgage Loan for such Due Period and thereafter the Originator shall be
        entitled to retain all amounts received in respect of such Deleted Mortgage
        Loan.

       

      (f)           The
        Servicer shall amend the Mortgage Loan Schedule for the benefit of the
        Certificateholders to reflect the removal of such Deleted Mortgage Loan and
        the
        substitution of the Substitute Mortgage Loan or Loans and the Servicer shall
        deliver the amended Mortgage Loan Schedule to the Trustee and the Custodian.
        Upon such substitution, the Substitute Mortgage Loan or Loans shall be subject
        to the terms of this Agreement in all respects, and the Originator shall
        be
        deemed to have made with respect to such Substitute Mortgage Loan or Loans,
        as
        of the date of substitution, the representations and warranties made pursuant
        to
        Section 2.03(b) with respect to such Mortgage Loan. Upon any such
        substitution and the deposit to the Collection Account of the amount required
        to
        be deposited therein in connection with such substitution as described in
        the
        following paragraph, the Custodian shall release the Mortgage File held for
        the
        benefit of the Certificateholders relating to such Deleted Mortgage Loan
        to the
        Originator and the Trustee, upon receipt of a Request for Release certifying
        that all amounts required to be deposited in accordance with this Section
        2.03(f) have been deposited in the Collection Account, shall execute and
        deliver
        at the Originator’s direction such instruments of transfer or assignment
        prepared by the Originator in each case without recourse, as shall be necessary
        to vest title in the Originator of the Trustee’s interest in any Deleted
        Mortgage Loan substituted for pursuant to this Section 2.03.

      
        
          
          

        

        
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      (g)           For
        any month in which the Originator substitutes one or more Substitute Mortgage
        Loans for one or more Deleted Mortgage Loans, the Servicer will determine
        the
        amount (if any) by which the aggregate unpaid principal balance of all such
        Substitute Mortgage Loans as of the date of substitution is less than the
        aggregate unpaid principal balance of all such Deleted Mortgage Loans. The
        amount of such shortage plus an amount equal to the aggregate of any
        unreimbursed Advances with respect to such Deleted Mortgage Loans (collectively,
        the “Substitution
        Adjustment Amount”)
        shall
        be remitted by the Originator to the Servicer for deposit into the Collection
        Account on or before the Distribution Account Deposit Date for the Distribution
        Date in the month succeeding the calendar month during which the related
        Mortgage Loan became required to be purchased or replaced
        hereunder.

       

      (h)           In
        addition to the repurchase or substitution obligations referred to in
        Section 2.03(d) above and Section 2.03 (k) below, the Originator or
        the Sponsor, as applicable, shall indemnify the Depositor, any of its
        Affiliates, the Master Servicer, the Servicer, the Securities Administrator,
        the
        Trustee and the Trust and hold such parties harmless against any losses,
        damages, penalties, fines, forfeitures, reasonable and necessary legal fees
        and
        related costs, judgments and other costs and expenses (including, without
        limitation, any taxes payable by the Trust) resulting from any third party
        claim, demand, defense or assertion based on or grounded upon, or resulting
        from, a breach by the Originator or the Sponsor, as applicable, of any of
        its
        representations and warranties or obligations contained in this
        Agreement.

       

      (i)           The
        Servicer shall amend the Mortgage Loan Schedule for the benefit of the
        Certificateholders to reflect the removal of such Deleted Mortgage Loan and
        the
        Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee,
        the
        Custodian, the Master Servicer and the Securities Administrator.

       

      (j)           In
        the event that a Mortgage Loan shall have been repurchased pursuant to this
        Agreement or the Purchase Agreement, the proceeds from such repurchase shall
        be
        deposited by the Servicer in the Collection Account pursuant to
        Section 3.10 on or before the Remittance Date for the Distribution Date in
        the month following the month during which the Originator or Sponsor became
        obligated to repurchase or replace such Mortgage Loan and upon such deposit
        of
        the Repurchase Price, and receipt of a Request for Release in the form of
        Exhibit J hereto, the Custodian shall release the related Custodial File
        held for the benefit of the Certificateholders to the Originator or the Sponsor,
        as applicable, as directed by the Servicer, and the Trustee shall execute
        and
        deliver at such Person’s direction such instruments of transfer or assignment
        prepared by such Person, in each case without recourse, as shall be necessary
        to
        transfer title from the Trustee. In accordance with Section 12.05(a), the
        Securities Administrator shall promptly notify each Rating Agency of a purchase
        of a Mortgage Loan pursuant to this Section 2.03.

       

      It
        is
        understood and agreed that the obligation of the Originator under this Agreement
        to cure, repurchase or substitute any Mortgage Loan as to which a breach
        of a
        representation and warranty has occurred and is continuing, together with
        any
        related indemnification obligations of the Originator set forth in
        Section 2.03(h), shall constitute the sole remedies against such Person
        respecting such breach available to Certificateholders, the Depositor and
        any of
        its Affiliates, or the Trustee on their behalf.

      
        
          
          

        

        
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      (k)           The
        Trustee acknowledges that, except as provided in Section 5 of the Purchase
        Agreement, the Sponsor shall not have any obligation or liability with respect
        to any breach of a representation or warranty made by it with respect to
        a
        Mortgage Loan sold by it, provided that such representation or warranty was
        also
        made by the Originator with respect to the related Mortgage Loan. It is
        understood and agreed that the representations and warranties of the Sponsor
        set
        forth in Section 4 of the Purchase Agreement and assigned to the Trustee
        by the
        Depositor hereunder shall survive the transfer of the Mortgage Loans by the
        Depositor to the Trustee on the Closing Date, and shall inure to the benefit
        of
        the Trustee and the Certificateholders notwithstanding any restrictive or
        qualified endorsement on any Mortgage Note or Assignment of Mortgage and
        shall
        continue throughout the term of this Agreement. Upon the discovery by any
        of the
        Sponsor, the Depositor, the Securities Administrator, the Trustee, the Master
        Servicer or the Servicer of a breach of any of the Sponsor’s representations and
        warranties set forth in Section 4 of the Purchase Agreement, the party
        discovering the breach shall give prompt written notice to the others. Within
        30 days of the earlier of either discovery by or notice to the Sponsor of
        any breach of any of the foregoing representations or warranties that materially
        and adversely affects the value of any Mortgage Loan or the interest of the
        Trustee or the Certificateholders therein, the Sponsor shall use its best
        efforts to cure such breach in all material respects and, if such defect
        or
        breach cannot be remedied, the Sponsor shall, at the Depositor’s instructions as
        specified in writing and provided to the Sponsor and the Trustee, (i) if
        such 30-day period expires prior to the second anniversary of the Closing
        Date,
        remove such Mortgage Loan from the Trust Fund and substitute in its place
        a
        Substitute Mortgage Loan, in the same manner and subject to the same conditions
        set forth in this Section 2.03 that apply to repurchases or substitutions
        of Mortgage Loans by the Originator or (ii) repurchase such Mortgage Loan
        at the Repurchase Price; provided,
        however,
        that
        any such substitution pursuant to clause (i) above shall not be
        effected prior to the delivery to the Custodian of a Request for Release
        substantially in the form of Exhibit J, and the delivery of the Mortgage
        File to the Custodian for any such Substitute Mortgage Loan. In the event
        of any
        such repurchase or substitution of a Mortgage Loan by the Sponsor, the
        procedures set forth in Sections 2.03(e), (f), (g), (h), (i) and (j) shall
        apply
        to the Sponsor in the same manner and to the same extent that they are
        applicable to the Originator. It is understood and agreed that the obligations
        of the Sponsor under this Agreement to cure, repurchase or substitute any
        Mortgage Loan as to which a breach of a representation and warranty has occurred
        and is continuing, together with any related indemnification obligations
        of the
        Sponsor set forth in Section 2.03(h), shall constitute the sole remedies
        against
        the Sponsor available to the Certificateholders, the Depositor and any of
        its
        affiliates, or the Trustee on their behalf.

       

      The
        provisions of this Section 2.03 shall survive delivery of the respective
        Custodial Files to the Custodian for the benefit of the
        Certificateholders.

       

      Section
        2.04           Execution
        and Delivery of Certificates.
        The
        Trustee acknowledges the transfer and assignment to it of the Trust Fund
        and,
        concurrently with such transfer and assignment, the Securities Administrator
        has
        executed and delivered to, or upon the order of the Depositor, the Certificates
        in authorized denominations evidencing directly or indirectly the entire
        ownership of the Trust Fund. The Trustee agrees to hold the Trust Fund and
        exercise the rights referred to above for the benefit of all present and
        future
        Holders of the Certificates.

      
        
          
          

        

        
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      Section
        2.05           REMIC
        Matters.
        The
        Preliminary Statement sets forth the designations for federal income tax
        purposes of all interests created hereby. The “Startup
        Day”
for
        purposes of the REMIC Provisions shall be the Closing Date. The “latest
        possible maturity date”
is
        the
        Distribution Date occurring in July 2041, which is the Distribution Date
        in the
        month following the month in which the latest Mortgage Loan maturity date
        occurs.

       

      Section
        2.06           Representations
        and Warranties of the Depositor.
        The
        Depositor hereby represents, warrants and covenants to the other parties
        to this
        agreement that as of the date of this Agreement or as of such date specifically
        provided herein:

       

      (a)           The
        Depositor is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Delaware;

       

      (b)           The
        Depositor has the power and authority to convey the Mortgage Loans and to
        execute, deliver and perform, and to enter into and consummate transactions
        contemplated by, this Agreement;

       

      (c)           This
        Agreement has been duly and validly authorized, executed and delivered by
        the
        Depositor, all requisite company action having been taken, and, assuming
        the due
        authorization, execution and delivery hereof by the other parties hereto,
        constitutes or will constitute the legal, valid and binding agreement of
        the
        Depositor, enforceable against the Depositor in accordance with its terms,
        except as such enforcement may be limited by bankruptcy, insolvency,
        reorganization, moratorium or other similar laws relating to or affecting
        the
        rights of creditors generally, and by general equity principles (regardless
        of
        whether such enforcement is considered in a proceeding in equity or at
        law);

       

      (d)           No
        consent, approval, authorization or order of, or registration or filing with,
        or
        notice to, any governmental authority or court is required for the execution,
        delivery and performance of or compliance by the Depositor with this Agreement
        or the consummation by the Depositor of any of the transactions contemplated
        hereby, except as have been received or obtained on or prior to the Closing
        Date;

       

      (e)           None
        of the execution and delivery of this Agreement, the consummation of the
        transactions contemplated hereby or thereby, or the fulfillment of or compliance
        with the terms and conditions of this Agreement, (i) conflicts or will
        conflict with or results or will result in a breach of, or constitutes or
        will
        constitute a default or results or will result in an acceleration under
        (A) the charter or bylaws of the Depositor, or (B) of any term,
        condition or provision of any material indenture, deed of trust, contract
        or
        other agreement or instrument to which the Depositor or any of its subsidiaries
        is a party or by which it or any of its subsidiaries is bound; (ii) results
        or will result in a violation of any law, rule, regulation, order, judgment
        or
        decree applicable to the Depositor of any court or governmental authority
        having
        jurisdiction over the Depositor or its subsidiaries; or (iii) results 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;

       

      (f)           There
        are no actions, suits or proceedings before or against or investigations
        of, the
        Depositor pending, or to the knowledge of the Depositor, threatened, before
        any
        court, administrative agency or other tribunal, and no notice of any such
        action, which, in the Depositor’s reasonable judgment, might materially and
        adversely affect the performance by the Depositor of its obligations under
        this
        Agreement, or the validity or enforceability of this Agreement;

      
        
          
          

        

        
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      (g)           The
        Depositor is not in default with respect to any order or decree of any court
        or
        any order, regulation or demand of any federal, state, municipal or governmental
        agency that would materially and adversely affect its performance hereunder;
        and

       

      (h)           Immediately
        prior to the transfer and assignment by the Depositor to the Trustee on the
        Closing Date, the Depositor had good title to, and was the sole owner of
        each
        Mortgage Loan, free of any interest of any other Person, and the Depositor
        has
        transferred all right, title and interest in each Mortgage Loan to the Trustee.
        The transfer of the Mortgage Note and the Mortgage as and in the manner
        contemplated by this Agreement is sufficient either (i) fully to transfer
        to the Trustee, for the benefit of the Certificateholders, all right, title,
        and
        interest of the Depositor thereto as note holder and mortgagee or (ii) to
        grant to the Trustee, for the benefit of the Certificateholders, the security
        interest referred to in Section 12.04.

       

      It
        is
        understood and agreed that the representations, warranties and covenants
        set
        forth in this Section 2.06 shall survive delivery of the respective
        Mortgage Files to the Custodian and shall inure to the benefit of the
        Trustee.

       

      ARTICLE
        III

       

      ADMINISTRATION
        AND SERVICING

      OF
        MORTGAGE LOANS

       

      Section
        3.01           Servicer
        to Service Mortgage Loans.
        (a)  For and on behalf of the Certificateholders, the Servicer shall
        service and administer the Mortgage Loans in accordance with the terms of
        this
        Agreement and the respective Mortgage Loans and, to the extent consistent
        with
        such terms, in accordance with Accepted Servicing Practices, but without
        regard
        to:

       

      (i)           any
        relationship that the Servicer, any Subservicer or any Affiliate of the Servicer
        or any Subservicer 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 P&I Advances or Servicing Advances;
        or

       

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

      
        
          
          

        

        
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      To
        the
        extent consistent with the foregoing, the Servicer shall seek to maximize
        the
        timely and complete recovery of principal and interest on the Mortgage Notes.
        Subject only to the above-described servicing standards and the terms of
        this
        Agreement and of the respective Mortgage Loans, the Servicer shall have full
        power and authority, acting alone or through Subservicers 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 Subservicer is hereby authorized and empowered by the
        Trustee when the Servicer believes it appropriate in its best judgment in
        accordance with Accepted Servicing Practices to execute and deliver 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; provided,
        further,
        that
        upon the full release or discharge, the Servicer shall notify the Custodian
        of
        the Mortgage Loan of any such full release or discharge with respect to the
        Mortgage Loan and related Mortgage Properties. The Servicer shall at its
        own
        expense be responsible for preparing and recording all lien releases and
        mortgage satisfactions in accordance with state and local regulations. 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 or any Primary Mortgage
        Insurance Policy (if applicable). Subject to Section 3.16, the Trustee
        shall execute, at the written request of the Servicer, and furnish to the
        Servicer and any Subservicer such documents provided to the Trustee as are
        necessary or appropriate to enable the Servicer or any Subservicer to carry
        out
        their servicing and administrative duties hereunder, and the Trustee hereby
        grants to the Servicer, and this Agreement shall constitute, a power of attorney
        to carry out such duties including a power of attorney to take title to
        Mortgaged Properties after foreclosure on behalf of the Trustee. The Trustee
        shall execute a separate power of attorney, furnished to it by the Servicer,
        in
        favor of the Servicer for the purposes described herein to the extent necessary
        or desirable to enable the Servicer to perform its duties hereunder. The
        Trustee
        shall not be liable for the actions of the Servicer or any Subservicers under
        such powers of attorney. Notwithstanding anything contained herein to the
        contrary, no Servicer or Subservicer shall without the Trustee’s consent: (i)
        initiate any action, suit or proceeding solely under the Trustee’s name without
        indicating the Servicer’s or Subservicer’s, as applicable, representative
        capacity, or (ii) knowingly take any action with the intent to, or which
        actually does cause, the Trustee to be registered to do business in any
        state.

       

      (b)           Subject
        to Section 3.09(b), in accordance with the standards of the preceding
        paragraph, the Servicer shall advance or cause to be advanced funds as necessary
        for the purpose of effecting the timely payment of taxes and assessments
        on the
        Mortgaged Properties, which advances shall be Servicing Advances reimbursable
        in
        the first instance from the collection from the Mortgagors pursuant to
        Section 3.09(b), and further as provided in Section 3.11. Any cost
        incurred by the Servicer or by Subservicers in effecting the timely payment
        of
        taxes and assessments on a Mortgaged Property shall not be added to the unpaid
        principal balance of the related Mortgage Loan, notwithstanding that the
        terms
        of such Mortgage Loan so permit.

      
        
          
          

        

        
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      (c)           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 4.01) and except as provided in Section 3.07(a), the Servicer shall
        not (i) permit any modification with respect to any Mortgage Loan that
        would change the Mortgage Rate, reduce or increase the principal balance
        (except
        for reductions resulting from actual payments of principal) or change the
        final
        maturity date on such Mortgage Loan (except for a reduction of interest payments
        resulting from the application of the Servicemembers Civil Relief Act or
        any
        similar state statutes) 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 final, temporary or proposed Treasury regulations promulgated thereunder)
        and (B) cause any REMIC formed hereby to fail to qualify as a REMIC under
        the Code or the imposition of any tax on “prohibited transactions” or
“contributions after the startup day” under the REMIC Provisions.

       

      (d)           The
        Servicer may delegate its responsibilities under this Agreement; provided,
        however,
        that no
        such delegation shall release the Servicer from the responsibilities or
        liabilities arising under this Agreement.

       

       

      Section
        3.02           Subservicing
        Agreements between Servicer and Subservicers; Use of
        Subcontractors.
        (a) The
        Servicer may enter into a subservicing agreement with a Subservicer, for
        the
        servicing and administration of the Mortgage Loans (“Subservicing
        Agreement”)
        without obtaining the prior consent of the Trustee, the Depositor, the Master
        Servicer, Securities Administrator or other parties hereto to the utilization
        of
        any such Subservicer, provided the provisions of such Subservicing Agreement
        comply with the requirements set forth in this Section 3.02. None of the
        Trustee, the Master Servicer or the Depositor shall be required to review
        or
        consent to such Subservicing Agreement and none shall have any liability
        in
        connection therewith.

       

      (b)           Each
        Subservicer shall be (i) authorized to transact business in the state or
        states in which the related Mortgaged Properties it is to service are situated,
        if and to the extent required by applicable law to enable the Subservicer
        to
        perform its obligations hereunder and under the Subservicing Agreement and
        (ii)
        a Freddie Mac or Fannie Mae approved mortgage servicer. Each Subservicing
        Agreement must impose on the Subservicer requirements conforming to the
        provisions set forth in Sections 3.08, 3.22, 3.23, 3.24, 3.29, 6.05, 6.06,
        7.01(i), 8.12 and Exhibit S of this Agreement to the same extent as if such
        Subservicer were the Servicer and otherwise provide for servicing of the
        Mortgage Loans consistent with the terms of this Agreement. The Servicer
        shall
        examine each Subservicing Agreement and will be familiar with the terms thereof
        in order to determine that the foregoing requirements have been incorporated
        into the Subservicing Agreement and that the terms thereof are not otherwise
        inconsistent with any of the provisions of this Agreement. The Servicer and
        the
        Subservicers may enter into and make amendments to the Subservicing Agreements
        or enter into different forms of Subservicing Agreements; provided,
        however,
        that
        any such amendments or different forms shall be consistent with and not violate
        the provisions of this Agreement, and that no such amendment or different
        form
        shall be made or entered into which could be reasonably expected to be
        materially adverse to the interests of the Trustee, the Depositor, the Master
        Servicer or the Securities Administrator without their prior written consent.
        Any variation without the consent of the Trustee, Depositor and Master Servicer
        from the requirements set forth in Sections 3.08, 3.22, 3.23, 3.24, 3.29,
        6.05, 6.06, 7.01(i), 8.12 and Exhibit S, are conclusively deemed to be
        inconsistent with this Agreement and therefore prohibited. The Servicer shall
        deliver to the Master Servicer, the Securities Administrator, the Trustee
        and
        the Depositor copies of all Subservicing Agreements, and any amendments or
        modifications thereof, promptly upon the Servicer’s execution and delivery of
        such instruments.

      
        
          
          

        

        
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      (c)           As
        part of its servicing activities hereunder, the Servicer (except as otherwise
        provided in the last sentence of this paragraph) shall enforce the obligations
        of each Subservicer under the related Subservicing Agreement, including,
        without
        limitation, (i) any obligation to make advances in respect of delinquent
        payments as required by a Subservicing Agreement and (ii) the reporting
        obligations set forth under Section 3.22, 3.23, 3.24 and 3.29 hereof to the
        same
        extent as if such Subservicer were the Servicer. The Servicer shall be
        responsible for obtaining from each Subservicer and delivering to the Master
        Servicer, the Securities Administrator and the Depositor (i) any servicer
        annual
        compliance statement required to be delivered by such Subservicer under Section
        3.24(b); (ii) any report on assessments and attestations of compliance with
        Relevant Servicing Criteria required to be delivered by the Subservicer pursuant
        to Sections 3.22 and 3.23; and (iii) any certifications required to be delivered
        under Section 3.24(a) to the Master Servicer or such other Person that will
        be
        responsible for signing the Sarbanes-Oxley Certification as and where required
        to be delivered hereunder. Such enforcement, including, without limitation,
        the
        legal prosecution of claims, termination of Subservicing 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.

       

      (d)           It
        shall not be necessary for the Servicer to seek the consent of the Depositor,
        the Trustee, the Master Servicer, the Securities Administrator or other parties
        hereto to the utilization of a Subcontractor. The Servicer shall give prompt
        written notice to the Master Servicer and the Depositor of the appointment
        of
        any Subcontractor and provide a written description (in form and substance
        satisfactory to the Depositor) of the role and function of each Subcontractor
        specifying which elements of the Servicing Criteria set forth under Item
        1122(d)
        of Regulation AB will be addressed in assessments and attestations of compliance
        with Relevant Servicing Criteria provided by such Subcontractor.

       

      (e)           As
        a condition to the utilization of any Subcontractor determined to be a Servicing
        Function Participant, the Servicer shall cause any such Subcontractor used
        by
        the Servicer (or by any Subservicer) to comply with the provisions of Sections
        3.22, 3.23, 3.24, 3.29, 6.05, 6.06, 7.01(i), 8.12 and Exhibit S of this
        Agreement to the same extent as if such Subcontractor were the Servicer.
        The
        Servicer shall be responsible for obtaining from each Subcontractor and
        delivering to the Securities Administrator, the Master Servicer and the
        Depositor any assessments and attestations of compliance required to be
        delivered by such Subcontractor pursuant to Sections 3.22 and 3.23, in each
        case
        as and when required to be delivered. 

      
        
          
          

        

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

       

      Any
        Subservicing Agreement shall include the provision that such agreement may
        be
        immediately terminated by the Master Servicer without fee, in accordance
        with
        the terms of this Agreement, in the event that the Servicer shall, for any
        reason, no longer be the Servicer (including termination due to an Event
        of
        Default).

       

      Section
        3.04           Liability
        of the Servicer.
        Notwithstanding any subservicing agreement or the provisions of this Agreement
        relating to agreements or arrangements between the Servicer and a Subservicer,
        Subcontractor or other third party or reference to actions taken through a
        Subservicer, a Subcontractor, another third party or otherwise, the Servicer
        shall remain obligated and primarily liable to the Trustee and the Trust
        Fund
        for the servicing and administering of the Mortgage Loans in accordance with
        the
        provisions hereof without diminution of such obligation or liability by virtue
        of any subservicing, subcontracting or other agreements or arrangements or
        by
        virtue of indemnification from a Subservicer, Subcontractor or a third party
        and
        to the same extent and under the same terms and conditions as if the Servicer
        alone were servicing the Mortgage Loans, including with respect to compliance
        with Item 1122 of Regulation AB. The Servicer shall be entitled to enter
        into
        any agreement with a Subservicer, Subcontractor or other third party for
        indemnification of the Servicer by such Subservicer, Subcontractor or third
        party and nothing contained in the Agreement shall be deemed to limit or
        modify
        such indemnification.

      

      Section
        3.05           No
        Contractual Relationship between Subservicers and the Master
        Servicer.
        Any
        Subservicing Agreement that may be entered into and any transactions or services
        relating to the Mortgage Loans involving a Subservicer in its capacity as
        such
        shall be deemed to be between the Subservicer and the Servicer alone, and
        none
        of the Trustee, the Depositor, the Securities Administrator, or the Master
        Servicer (nor any successor master servicer) shall be deemed a party thereto
        and
        shall have no claims, rights, obligations, duties or liabilities with respect
        to
        the Subservicer except as set forth in Section 3.06. The Servicer shall be
        solely liable for all fees owed by it to any Subservicer, irrespective of
        whether the Servicer’s compensation pursuant to this Agreement is sufficient to
        pay such fees.

       

      Section
        3.06           Assumption
        or Termination of Subservicing Agreements by Master Servicer.
        In the
        event the Servicer at any time shall for any reason no longer be the Servicer
        (including by reason of the occurrence of an Event of Default), the Master
        Servicer (or, if the Master Servicer and the Servicer are the same entity,
        the
        Trustee (as successor Master Servicer)), or other successor servicer, shall
        thereupon assume all of the rights and obligations of the Servicer under
        each
        Subservicing Agreement that the Servicer may have entered into, with copies
        thereof provided to the Master Servicer, the Trustee (as successor Master
        Servicer) or other successor servicer, as applicable, prior to such party
        assuming such rights and obligations, unless such party elects to terminate
        any
        Subservicing Agreement in accordance with its terms as provided in
        Section 3.03.

      
        
          
          

        

        
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      Upon
        such
        assumption, the Master Servicer, the Trustee (as successor Master Servicer)
        or
        other successor servicer, as applicable, shall be deemed, subject to
        Section 3.03, to have assumed all of the Servicer’s interest therein and to
        have replaced the Servicer as a party to each Subservicing Agreement to the
        same
        extent as if each Subservicing Agreement had been assigned to the assuming
        party, except that (i) the Servicer shall not thereby be relieved of any
        liability or obligations under any Subservicing Agreement that arose before
        it
        ceased to be the Servicer and (ii) none of the Trustee, the Depositor, the
        Master Servicer, the Securities Administrator, their designees or 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 Master Servicer, or other
        successor servicer, as applicable, deliver to the assuming party all documents
        and records relating to the Subservicing 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 Subservicing Agreements to the assuming party.

       

      Section
        3.07           Collection
        of Certain Mortgage Loan Payments.
        (a)  The Servicer shall make reasonable efforts to collect all
        payments called for under the terms and provisions of the Mortgage Loans,
        and
        shall, to the extent such procedures shall be consistent with this Agreement
        and
        the terms and provisions of any applicable Insurance Policies, follow such
        collection procedures as it would follow with respect to mortgage loans
        comparable to the Mortgage Loans and held for its own account. Consistent
        with
        the foregoing and Accepted Servicing Practices, the Servicer may (i) waive
        any late payment charge or, if applicable, any penalty interest, or
        (ii) extend the due dates for the Scheduled Payments due on a Mortgage Note
        for a period of not greater than 180 days; provided,
        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 4.01 and in
        accordance with the amortization schedule of such Mortgage Loan without
        modification thereof by reason of such arrangements, subject to
        Section 4.01(d) pursuant to which the Servicer shall not be required to
        make any such advances that are Nonrecoverable P&I Advances. 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, but not limited
        to,
        modifications that would change the Mortgage Rate, forgive the payment of
        principal or interest, extend the final maturity date of such Mortgage Loan
        or
        waive, in whole or in part, a Prepayment Charge), 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”);
        provided,
        however,
        that
        the final maturity date of any Mortgage Loan may not be extended beyond the
        Final Scheduled Distribution Date for the LIBOR Certificates. 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
        Servicing File or on the Servicer’s servicing records. In addition,
        notwithstanding the foregoing, the Servicer may also waive (or permit a
        Subservicer to waive), in whole or in part, a Prepayment Charge if such waiver
        would, in the Servicer’s judgment, maximize recoveries on the related Mortgage
        Loan or if such Prepayment Charge is (i) not permitted to be collected by
        applicable law, or the collection of the Prepayment Charge would be considered
        “predatory” pursuant to written guidance published by any applicable federal,
        state or local regulatory authority having jurisdiction over such matters,
        or
        (ii) the enforceability of such Prepayment Charge is limited (1) by
        bankruptcy, insolvency, moratorium, receivership or other similar laws relating
        to creditors’ rights or (2) due to acceleration in connection with a
        foreclosure or other involuntary payment. If a Prepayment Charge is waived
        other
        than as permitted in this Section 3.07(a), then the Servicer is required to
        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 together with and at the time that the amount prepaid on the related
        Mortgage Loan is required to be deposited into the Collection Account;
provided,
        however,
        that
        the Servicer shall not have an obligation to pay the amount of any uncollected
        Prepayment Charge if the failure to collect such amount is the direct result
        of
        inaccurate or incomplete information on the Mortgage Loan Schedule in effect
        at
        such time. The Master Servicer shall have no responsibility for verifying
        the
        accuracy of the amount of Prepayment Charges waived or remitted by the
        Servicer.

      
        
          
          

        

        
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      (b)           (i)           The
        Securities Administrator shall establish and maintain the Excess Reserve
        Fund
        Account as an asset of the Supplemental Interest Trust, on behalf of the
        Class X Certificateholders, to receive any Basis Risk Payment and to secure
        their limited recourse obligation to pay to the LIBOR Certificateholders
        and the
        Class A-IO Certificateholders any Basis Risk Carryover Amounts. The Excess
        Reserve Fund Account shall be funded on the Closing Date with an initial
        deposit
        of $1,000 by the Depositor.

       

      (ii)           On
        each Distribution Date, the Securities Administrator shall deposit the amount
        of
        any Basis Risk Payment for such date into the Excess Reserve Fund
        Account.

       

      (c)           (i)           On
        each Distribution Date on which there exists a Basis Risk Carryover Amount
        on
        any Class of LIBOR Certificates or Interest-Only Certificates, the
        Securities Administrator shall (1) withdraw from the Distribution Account
        and deposit in the Excess Reserve Fund Account, as set forth in
        Section 4.02(a)(iii)(D), the lesser of (x) the Class X
        Distributable Amount (without regard to the reduction in the definition thereof
        with respect to the Basis Risk Payment (to the extent remaining after the
        distributions specified in Sections  4.02(a)(iii)(A)
        through (F)) and (y) the aggregate Basis Risk Carryover Amounts for such
        Distribution Date and (2) withdraw from the Excess Reserve Fund Account
        amounts necessary to pay to such Class or Classes of LIBOR Certificates and
        the Interest-Only Certificates the applicable Basis Risk Carryover Amount.
        Such
        payments shall be allocated to those Classes on a pro rata
        basis
        based upon the amount of Basis Risk Carryover Amount owed to each such
        Class and shall be paid in the priority set forth in
        Sections 4.02(a)(iii)(E).

       

      (ii)           The
        Securities Administrator shall account for the Excess Reserve Fund Account
        as an
        asset of a grantor trust under subpart E, Part I of subchapter J
        of the Code and not as an asset of any REMIC created pursuant to this Agreement.
        The beneficial owners of the Excess Reserve Fund Account are the Class X
        Certificateholders. For all federal tax purposes, amounts transferred by
        the
        Upper Tier REMIC to the Excess Reserve Fund Account shall be treated as
        distributions by the Securities Administrator to the Class X
        Certificateholders.

      
        
          
          

        

        
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      (iii)           Any
        Basis Risk Carryover Amounts paid by the Securities Administrator to the
        LIBOR
        Certificateholders or holders of Interest-Only Certificates shall be accounted
        for by the Securities Administrator as amounts paid first to the Holders
        of the
        Class X Certificates and then to the respective Class or Classes of
        LIBOR Certificates and Interest-Only Certificates. In addition, the Securities
        Administrator shall account for such Certificateholders’ rights to receive
        payments of Basis Risk Carryover Amounts as rights in a limited recourse
        notional principal contract written by the Class X Certificateholders in
        favor of such Certificateholders.

       

      (iv)           Notwithstanding
        any provision contained in this Agreement, the Securities Administrator shall
        not be required to make any payments to and from the Excess Reserve Fund
        Account
        except as expressly set forth in this Section 3.07(c) and
        Sections 4.02(a)(iii)(D) and (E).

       

      (d)           The
        Securities Administrator shall establish and maintain the Distribution Account
        on behalf of the Certificateholders. The Master Servicer shall, promptly
        upon
        receipt, deposit in the Distribution Account and retain therein the
        following:

       

      (i)           the
        aggregate amount remitted by the Servicer to the Master Servicer pursuant
        to
        Section 3.11;

       

      (ii)           any
        amount deposited by the Servicer pursuant to Section 3.12(b) in connection
        with any losses on Permitted Investments; and

       

      (iii)           any
        other amounts deposited hereunder which are required to be deposited in the
        Distribution Account.

       

      In
        the
        event that the Servicer shall remit any amount not required to be remitted,
        it
        may at any time direct the Securities Administrator in writing to withdraw
        such
        amount from the Distribution Account, any provision herein to the contrary
        notwithstanding. Such direction may be accomplished by delivering notice
        to the
        Securities Administrator which describes the amounts deposited in error in
        the
        Distribution Account. All funds deposited in the Distribution Account shall
        be
        held by the Securities Administrator in trust for the Certificateholders
        until
        disbursed in accordance with this Agreement or withdrawn in accordance with
        Section 4.02. 

       

      (e)           The
        Securities Administrator may invest the funds in the Distribution Account
        during
        the Securities Administrator Float Period in one or more Permitted Investments
        in accordance with Section 3.12. The Securities Administrator may withdraw
        from the Distribution Account any income or gain earned from the investment
        of
        funds deposited therein for its own benefit.

      
        
          
          

        

        
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      (f)           The
        Servicer shall give notice to the Securities Administrator of any proposed
        change of the location of the Collection Account (to a depository other than
        an
        affiliate of the Servicer) not later than 30 days prior to any change
        thereof and the Securities Administrator shall forward such notice to each
        Rating Agency and the Depositor.

       

      Section
        3.08           Subservicing
        Accounts.
        In
        those cases where a Subservicer is servicing a Mortgage Loan pursuant to
        a
        Subservicing Agreement, the Subservicer will be required to establish and
        maintain one or more segregated accounts (collectively, the “Subservicing
        Account”).
        The
        Subservicing Account shall be an Eligible Account and shall otherwise be
        acceptable to the Servicer. The Subservicer shall deposit in the clearing
        account (which account must be an Eligible 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 Subservicer’s receipt thereof, all proceeds of
        Mortgage Loans received by the Subservicer less its servicing compensation
        to
        the extent permitted by the Subservicing Agreement, and shall thereafter
        deposit
        such amounts in the Subservicing Account, in no event more than two Business
        Days after the deposit of such funds into the clearing account. The Subservicer
        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 Subservicing Account.
        For purposes of this Agreement, the Servicer shall be deemed to have received
        payments on the Mortgage Loans when the Subservicer receives such payments.
        Funds in the clearing account and any Subservicing Account may, in the
        discretion of the Servicer, be invested in Permitted Investments pending
        their
        deposit into the Subservicing Account and the Collection Account, respectively;
        provided,
        however,
        the
        Servicer shall be responsible for any losses incurred on such investments
        immediately upon realization.

       

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

       

      (a)           The
        Servicer shall enforce the obligations under each paid-in-full, life-of-the-loan
        tax service contract in effect with respect to each Mortgage Loan (each,
        a
“Tax
        Service Contract”).
        Each
        Tax Service Contract shall be assigned to a successor servicer, at the
        Servicer’s expense in the event that the Servicer is terminated as the Servicer
        of the related Mortgage Loan.

       

      (b)           To
        the extent that the services described in this paragraph (b) are not
        otherwise provided pursuant to the Tax Service Contracts described in
        paragraph (a) hereof, the Servicer undertakes to perform such
        functions. To the extent the related Mortgage provides for Escrow Payments,
        the
        Servicer shall establish and maintain, or cause to be established and
        maintained, one or more segregated accounts (the “Escrow
        Accounts”),
        which
        shall be Eligible Accounts. The Servicer shall deposit in the clearing account
        (which account must be an Eligible 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 collections from the Mortgagors
        (or related advances from Subservicers) for the payment of taxes, assessments,
        hazard insurance premiums and comparable items for the account of the Mortgagors
        (“Escrow
        Payments”)
        collected on account of the Mortgage Loans and shall thereafter deposit such
        Escrow Payments in the Escrow Accounts, in no event more than two Business
        Days
        after the deposit of such funds in the clearing account, 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; (ii) reimburse the Servicer (or a Subservicer to the
        extent provided in the related Subservicing Agreement) out of the collection
        for
        any advances made pursuant to Section 3.01 (with respect to taxes and
        assessments) and Section 3.13 (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; (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; or (vi) recover amounts
        deposited in error. As part of its servicing duties, the Servicer or
        Subservicers shall pay to the Mortgagors interest on funds in 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. To the extent that a Mortgage
        does not provide for Escrow Payments, the Servicer shall determine whether
        any
        such payments are made by the Mortgagor in a manner and at a time that avoids
        the loss of the Mortgaged Property due to a tax sale or the foreclosure of
        a tax
        lien. The Servicer assumes full responsibility for the payment of all such
        bills
        within such time and shall effect payments of all such bills irrespective
        of the
        Mortgagor’s faithful performance in the payment of same or the making of the
        Escrow Payments and shall make advances from its own funds to effect such
        payments; provided,
        however,
        that
        such advances are deemed to be Servicing Advances.

      
        
          
          

        

        
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      Section
        3.10           Collection
        Account.
        (a)  On behalf of the Trustee, the Servicer shall establish and
        maintain, or cause to be established and maintained, one or more segregated
        Eligible Accounts (such account or accounts, the “Collection
        Account”),
        held
        in trust for the benefit of the Trustee. On behalf of the Trustee, the Servicer
        shall deposit or cause to be deposited in the clearing account (which account
        must be an Eligible 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 into the Collection
        Account, in no event more than two Business Days after the deposit of such
        funds
        into the clearing account, 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 related 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, on the
        Mortgage Loans;

       

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

       

      (iii)           all
        Insurance Proceeds and Condemnation Proceeds to the extent such Insurance
        Proceeds and Condemnation Proceeds are not to be applied to the restoration
        of
        the related Mortgaged Property or released to the related Mortgagor in
        accordance with the express requirements of law or in accordance with Accepted
        Servicing Practices, Liquidation Proceeds and Subsequent
        Recoveries;

      
        
          
          

        

        
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      (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 3.13(a) in respect of any blanket policy
        deductibles;

       

      (vi)           all
        proceeds of any Mortgage Loan repurchased or purchased in accordance with
        this
        Agreement; and

       

      (vii)           all
        Prepayment Charges collected by the Servicer.

       

      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 late payment charges, NSF fees,
        reconveyance fees, assumption fees and other similar fees and charges need
        not
        be deposited by the Servicer in the Collection Account and shall, upon
        collection, belong to the Servicer as additional compensation for its servicing
        activities. 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)           Funds
        in the Collection 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 Securities Administrator and the Master Servicer of the location
        of the Collection Account maintained by it when established and prior to
        any
        change thereof.

       

      Section
        3.11           Withdrawals
        from the Collection Account.
        (a) The Servicer shall, from time to time, make withdrawals from the
        Collection Account maintained by it for any of the following purposes or
        as
        described in Section 4.01:

       

      (i)           on
        or prior to each Remittance Date, to remit to the Master Servicer (A) the
        Master Servicing Fee with respect to such Distribution Date and (B) all
        Available Funds in respect of the related Distribution Date together with
        all
        amounts representing Prepayment Charges (payable to the Class P
        Certificateholders) from the Mortgage Loans received during the related
        Prepayment Period;

       

      (ii)           to
        reimburse the Servicer for (A) P&I Advances, but only to the extent of
        amounts received which represent Late Collections (net of the related Servicing
        Fees) of Scheduled Payments on Mortgage Loans with respect to which such
        P&I
        Advances were made by the Servicer in accordance with the provisions of
        Section 4.01 and (B) any unreimbursed P&I Advances to the extent of
        funds held in the Collection Account for a future Distribution Date that
        were
        not included in Available Funds for the preceding Distribution
        Date;

      
        
          
          

        

        
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      (iii)           to
        pay the Servicer or any Subservicer (A) any unpaid Servicing Fees or
        (B) any unreimbursed Servicing Advances with respect to each Mortgage Loan,
        but only to the extent of any Late Collections or other amounts as may be
        collected by the Servicer from a Mortgagor, or otherwise received with respect
        to such Mortgage Loan (or the related REO Property);

       

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

       

      (v)           to
        pay to the Originator, with respect to each Mortgage Loan that has previously
        been repurchased or replaced pursuant to this Agreement, all amounts received
        thereon subsequent to the date of purchase or substitution, as the case may
        be;

       

      (vi)           to
        reimburse the Servicer for (A) any P&I Advance or Servicing Advance
        previously made which the Servicer has determined to be a Nonrecoverable
        P&I
        Advance or Nonrecoverable Servicing Advance in accordance with the provisions
        of
        Section 4.01 and (B) any unpaid Servicing Fees to the extent not
        recoverable from Late Collections or other amounts received with respect
        to the
        related Mortgage Loan under Section 3.11(a)(iii);

       

      (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 3.15;

       

      (viii)           to
        reimburse the Master Servicer, the Servicer, the Depositor, the Securities
        Administrator or the Trustee for expenses incurred by or reimbursable to
        the
        Master Servicer, the Servicer, the Depositor, the Securities Administrator
        or
        the Trustee, as the case may be, pursuant to Section 6.03,
        Section 7.02, Section 8.05, Section 9.13 or
        Section 10.02;

       

      (ix)           to
        reimburse the Master Servicer, the Servicer or the Trustee, as the case may
        be,
        for expenses reasonably incurred in respect of the breach or defect giving
        rise
        to the repurchase obligation of the Originator or the Sponsor under this
        Agreement that were included in the Repurchase Price of the Mortgage Loan,
        including any expenses arising out of the enforcement of the repurchase
        obligation, to the extent not otherwise paid pursuant to the terms
        hereof;

       

      (x)           to
        withdraw any amounts deposited in the Collection Account in error;
        and

       

      (xi)           to
        clear and terminate the Collection Account upon termination of this
        Agreement.

       

      (b)           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 (a)(ii), (iii), (v), (vi), (vii), (viii) and (ix) above.
        The Servicer shall provide written notification (as set forth in
        Section 4.01(d)) to the Master Servicer, on or prior to the next succeeding
        Remittance Date, upon making any withdrawals from the Collection Account
        pursuant to subclause (a)(vi) above.

      
        
          
          

        

        
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      Section
        3.12           Investment
        of Funds in the Collection Account, Escrow Accounts and the Distribution
        Account.
        (a)  The Servicer may invest the funds in the Collection Account
        maintained by it and the Escrow Accounts (to the extent permitted by law
        and the
        related Mortgage Loan documents) and the Securities Administrator may invest
        funds in the Distribution Account during the Securities Administrator’s Float
        Period and shall invest such funds in the Distribution Account (for purposes
        of
        this Section 3.12, each such Account is referred to as an “Investment
        Account”),
        in
        one or more Permitted Investments bearing interest or sold at a discount,
        and
        maturing, unless payable on demand, 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; provided,
        however,
        that
        any such Permitted Investment managed by or advised by the Securities
        Administrator or any of its Affiliates may mature, unless payable on demand,
        no
        later than the date on which such funds are required to be withdrawn from
        such
        account pursuant to this Agreement. 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 Servicer or the Securities
        Administrator, as applicable. The Servicer or the Securities Administrator,
        as
        applicable, shall be entitled to sole possession over each such investment,
        and
        any certificate or other instrument evidencing any such investment shall
        be
        delivered directly to the Servicer or the Securities Administrator or its
        agent,
        as applicable, together with any document of transfer necessary to transfer
        title to such investment to the Servicer or the Securities Administrator
        or its
        agent, as applicable. In the event amounts on deposit in an Investment Account
        are at any time invested in a Permitted Investment payable on demand, the
        Servicer or the Securities Administrator, as applicable, may:

       

      
        	 	
                (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 that such Permitted Investment
                  would
                  not constitute a Permitted Investment in respect of funds thereafter
                  on
                  deposit in an Investment Account.

              

      

       

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

       

      (c)           All
        income and gain realized from the investment of funds deposited in the
        Distribution Account held by the Securities Administrator during the Securities
        Administrator’s Float Period, shall be for the benefit of the Securities
        Administrator, and shall be subject to the Securities Administrator’s withdrawal
        in the manner set forth in Section 3.07(d). Notwithstanding anything in
        this Section 3.12(c), the Securities Administrator shall be liable to the
        Trust
        for any such loss on any funds it has invested under this Section 3.12(c)
        only
        during the Securities Administrator Float Period, and the Securities
        Administrator 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.

      
        
          
          

        

        
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      (d)           Except
        as otherwise expressly provided in this Agreement, if any default occurs
        in the
        making of a payment due under any Permitted Investment of funds held in the
        Escrow Account or any Collection Account, or if a default occurs in any other
        performance required under any Permitted Investment of funds held in the
        Escrow
        Account or any Collection Account, the Servicer or the Securities Administrator,
        as applicable, shall take such action as may be appropriate to enforce such
        payment or performance, including the institution and prosecution of appropriate
        proceedings.

       

      (e)           The
        Securities Administrator or its Affiliates are permitted to receive additional
        compensation that could be deemed to be in the Securities Administrator’s
        economic self-interest for (i) serving as investment adviser,
        administrator, shareholder, servicing agent, custodian or sub-custodian with
        respect to certain of the Permitted Investments, (ii) using Affiliates to
        effect transactions in certain Permitted Investments and (iii) effecting
        transactions in certain Permitted Investments. Such compensation shall not
        be
        considered an amount that is reimbursable for payable pursuant to this
        Agreement.

       

      Section
        3.13           Maintenance
        of Hazard Insurance and Errors and Omissions and Fidelity
        Coverage.
        (a)  The Servicer shall cause to be maintained for each Mortgage Loan
        fire insurance with extended coverage on the related Mortgaged Property in
        an
        amount which is at least equal to the least of (i) the outstanding
        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 a 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 fire 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, plus accrued interest
        at the Mortgage Rate and related Servicing Advances. 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 required to be deposited
        in
        the Escrow Account and 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. Any cost incurred by the
        Servicer in maintaining any such insurance shall not, for the purpose of
        calculating distributions to the Master Servicer, 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 minimum amount
        required, under the terms of coverage, to compensate for any damage or loss
        on a
        replacement cost basis (or the unpaid balance of the mortgage if replacement
        cost coverage is not available for the type of building insured) 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).

      
        
          
          

        

        
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      In
        the
        event that the Servicer shall obtain and maintain a blanket policy with an
        insurer having a general policy rating of A:VI or better in Best’s (or such
        other rating that is comparable to such rating) 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 3.13, it being understood and agreed that such policy may contain a
        deductible clause, 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 3.13, 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 administrator and servicer of the Mortgage
        Loans, the Servicer agrees to prepare and present, on behalf of itself and
        the
        Trustee, 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 amounts as shall be consistent with Accepted
        Servicing Practices. The Servicer shall also maintain a fidelity bond in
        such
        form and amount as shall be consistent with Accepted Servicing Practices.
        The
        Servicer shall provide the Master Servicer with copies of any such insurance
        policies and fidelity bond; provided
        however,
        so long
        as the Servicer hereunder is Wells Fargo, the Servicer may satisfy such
        requirement by providing the Master Servicer with a certification of any
        such
        insurance upon request. 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 Master Servicer. The
        Servicer shall also cause each Subservicer to maintain a policy of insurance
        covering errors and omissions and a fidelity bond which would meet such
        requirements.

       

      Section
        3.14           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 exercise any such rights if prohibited by law from
        doing
        so or if the exercise of such rights would impair or threaten to impair recovery
        under the related Primary Mortgage Insurance Policy, if any. If the Servicer
        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 either (i) 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 or (ii) a
        substitution agreement as provided in the succeeding sentence. The Servicer
        is
        also authorized 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 Originator and has a credit risk rating at least
        equal to that of the original Mortgagor. The Mortgage Loan, as assumed, shall
        conform in all respects to the requirements, representations and warranties
        of
        this Agreement. 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, or a new policy
        meeting
        the requirements of this Section is obtained. Any fee collected by the
        Servicer in respect of an assumption or substitution of liability agreement
        will
        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 Scheduled
        Payment) may be amended or modified, except as otherwise required pursuant
        to
        the terms thereof. The Servicer shall notify the Master Servicer that any
        such
        substitution, modification or assumption agreement has been completed and
        shall
        forward to the Custodian the executed original of such substitution 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.

      
        
          
          

        

        
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      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 3.14, 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
        3.15           Realization
        upon Defaulted Mortgage Loans.
        The
        Servicer shall use its best efforts, consistent with Accepted Servicing
        Practices, to foreclose upon or otherwise comparably convert (which may include
        an acquisition of REO Property) 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, and which are not released from this Agreement
        pursuant to any other provision hereof. The Servicer shall use reasonable
        efforts to realize upon such defaulted Mortgage Loans in such manner as will
        maximize the receipt of principal and interest by the Securities Administrator,
        taking into account, among other things, the timing of foreclosure
        proceedings; provided,
        however, with respect to any second-lien Mortgage Loan, if, after such Mortgage
        Loan becomes 180 days or more delinquent, the applicable Servicer determines
        that a significant net recovery is not possible through foreclosure, such
        Mortgage Loan may be charged-off and the Mortgage Loan will be treated as
        a
        Liquidated Mortgage Loan giving rise to a Realized Loss. The foregoing is
        subject to the provisions that the Servicer shall not be required to expend
        its
        own funds in connection with foreclosure or other conversion, correction
        of a
        default on a senior mortgage or restoration of any property unless it shall
        determine in its sole discretion (i) that such foreclosure, correction or
        restoration will increase the net Liquidation Proceeds of the related Mortgage
        Loan to the Securities Administrator, after reimbursement to itself for such
        expenses and (ii) that such expenses will be recoverable by the Servicer
        through Insurance Proceeds, Condemnation Proceeds, Liquidation Proceeds or
        Subsequent Recoveries from the related Mortgaged Property, as contemplated
        in
        Section 3.11. The Servicer shall be responsible for all other costs and
        expenses incurred by it in any such proceedings; provided,
        however,
        that it
        shall be entitled to reimbursement thereof from the related property, as
        contemplated in Section 3.11.

      
        
          
          

        

        
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      The
        proceeds of any liquidation or REO Disposition, as well as any recovery
        resulting from a partial collection of Insurance Proceeds, Condemnation
        Proceeds, Liquidation Proceeds or Subsequent Recoveries or any income from
        an
        REO Property, will be applied in the following order of priority: first,
        to
        reimburse the Servicer or any Subservicer for any related unreimbursed Servicing
        Advances, pursuant to Section 3.11 or 3.17; second,
        to
        reimburse the Servicer for any related unreimbursed P&I Advances, pursuant
        to Section 3.11; third,
        to
        accrued and unpaid interest on the Mortgage Loan or REO Imputed Interest,
        at the
        Mortgage Rate, to the date of the liquidation or REO Disposition, or to the
        Due
        Date prior to the Remittance Date on which such amounts are to be distributed
        if
        not in connection with a liquidation or REO Disposition; and fourth,
        as a
        recovery of principal of the Mortgage Loan. If the amount of the recovery
        so
        allocated to interest is less than a full recovery thereof, that amount will
        be
        allocated as follows: first,
        to
        unpaid Servicing Fees; and second,
        as
        interest at the Mortgage Rate (net of the Servicing Fee Rate). The portion
        of
        the recovery so allocated to unpaid Servicing Fees shall be reimbursed to
        the
        Servicer or any Subservicer pursuant to Section 3.11 or 3.17. The portions
        of the recovery so allocated to interest at the Mortgage Rate (net of the
        Servicing Fee Rate) and to principal of the Mortgage Loan shall be applied
        as
        follows: first,
        to
        reimburse the Servicer or any Subservicer for any related unreimbursed Servicing
        Advances in accordance with Section 3.11 or 3.17, and second,
        to the
        Securities Administrator in accordance with the provisions of Section 4.02,
        subject to paragraph (e) of Section 3.17 with respect to certain
        excess recoveries from an REO Disposition.

       

      Notwithstanding
        anything to the contrary contained herein, in connection with a foreclosure
        or
        acceptance of a deed in lieu of foreclosure, in the event the Servicer has
        received actual notice of, or has actual knowledge of the presence of, hazardous
        or toxic substances or wastes on the related Mortgaged Property, or if the
        Trustee or the Master Servicer otherwise requests, the Servicer shall cause
        an
        environmental inspection or review of such Mortgaged Property to be conducted
        by
        a qualified inspector. Upon completion of the inspection, the Servicer shall
        promptly provide the Trustee, the Master Servicer and the Depositor with
        a
        written report of the environmental inspection.

      
        
          
          

        

        
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      After
        reviewing the environmental inspection report, the Servicer shall determine
        consistent with Accepted Servicing Practices how to proceed with respect
        to the
        Mortgaged Property. In the event (a) the environmental inspection report
        indicates that the Mortgaged Property is contaminated by hazardous or toxic
        substances or wastes and (b) the Servicer proceeds with foreclosure or
        acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed
        for all reasonable costs associated with such foreclosure or acceptance of
        a
        deed in lieu of foreclosure and any related environmental clean-up costs,
        as
        applicable, from the related Liquidation Proceeds, or if the Liquidation
        Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall
        be
        entitled to be reimbursed from amounts in the Collection Account pursuant
        to
        Section 3.11. In the event the Servicer does not proceed with foreclosure
        or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed
        from general collections for all Servicing Advances made with respect to
        the
        related Mortgaged Property from the Collection Account pursuant to
        Section 3.11. The Trustee shall not be responsible for any determination
        made by the Servicer pursuant to this paragraph or otherwise.

       

      Section
        3.16           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, within two
        (2) Business Days of the payment in full, notify the Custodian by a
        certification (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) of a Servicing Officer and shall request
        delivery to it of the Custodial File by submitting a Request for Release,
        which
        Request for Release may be in an electronic format in a form acceptable to
        the
        Custodian, to the Custodian. Upon receipt of such certification and Request
        for
        Release, the Custodian shall promptly release the related Custodial File
        to the
        Servicer within two (2) Business Days. No expenses incurred in connection
        with
        any instrument of satisfaction or deed of reconveyance shall be chargeable
        to
        the Collection 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 shall, upon request of the
        Servicer and delivery to the Custodian of a Request for Release, which Request
        for Release may be in an electronic format in a form acceptable to the
        Custodian, release the related Custodial File to the Servicer, and the Custodian
        shall, at the direction of the Servicer, execute such documents as shall
        be
        necessary to the prosecution of any such proceedings and the Servicer shall
        retain the Mortgage File in trust for the benefit of the Trustee. Such Request
        for Release shall obligate the Servicer to return each and every document
        previously requested from the Custodial 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 to the Custodian a certificate
        of
        a Servicing Officer certifying as to 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 certificate of 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, a copy of the Request for Release shall be released
        by the Custodian to the Servicer or its designee.

      
        
          
          

        

        
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      Upon
        written certification of a Servicing Officer, the Trustee shall execute and
        deliver to the Servicer copies of any court pleadings, requests for trustee’s
        sale or other documents reasonably 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, or
        shall
        exercise and deliver to the Servicer a power of attorney sufficient to authorize
        the Servicer to execute such documents on its behalf. 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
        3.17           Title,
        Conservation and Disposition of REO Property.
        (a)  This Section shall apply only to REO Properties acquired for the
        account of the Trustee and shall not apply to any REO Property relating to
        a
        Mortgage Loan which was purchased or repurchased from the Trustee pursuant
        to
        any provision hereof. In the event that title to any such REO Property is
        acquired, the deed or certificate of sale shall be issued to the Trust, or
        if
        not permitted by law, to Deutsche Bank National Trust Company (or, if
        applicable, the name of the successor Trustee) as Trustee for HSI Asset
        Securitization Corporation Trust 2006-WMC1 Mortgage Pass-Through Certificates,
        Series 2006-WMC1, or to its nominee, for the benefit of the
        Certificateholders.

       

      (b)           The
        Servicer shall manage, conserve, protect and operate each REO Property for
        the Trustee solely for the purpose of its prompt disposition and sale. The
        Servicer, either itself or through an agent selected by the Servicer, shall
        manage, conserve, protect and operate the REO Property in the same manner
        that
        it manages, conserves, protects and operates other foreclosed property for
        its
        own account, and in the same manner that similar property in the same locality
        as the REO Property is managed. The Servicer shall attempt to sell the same
        (and
        may temporarily rent the same for a period not greater than one year, except
        as
        otherwise provided below) on such terms and conditions as the Servicer deems
        to
        be in the best interest of the Trustee on behalf of the Certificateholders.
        The
        Servicer shall notify the Trustee from time to time as to the status of each
        REO
        Property.

       

      (c)           The
        Servicer shall segregate and hold all funds collected and received in connection
        with the operation of any REO Property separate and apart from its own funds
        and
        general assets and shall deposit such funds in the Collection
        Account.

      
        
          
          

        

        
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      (d)           The
        Servicer shall deposit net of reimbursement to the Servicer for any related
        outstanding Servicing Advances and unpaid Servicing Fees provided in
        Section 3.11, or cause to be deposited in the Collection Account, in no
        event later than two Business Days after the deposit of such funds into the
        clearing account, all revenues received with respect to the related REO Property
        and shall withdraw therefrom funds necessary for the proper operation,
        management and maintenance of the REO Property.

       

      (e)           The
        Servicer, upon an REO Disposition, shall be entitled to reimbursement for
        any
        related unreimbursed Servicing Advances as well as any unpaid Servicing Fees
        from proceeds received in connection with the REO Disposition, as further
        provided in Section 3.11.

       

      (f)           Any
        net proceeds from an REO Disposition which are in excess of the unpaid principal
        balance of the related Mortgage Loan plus all unpaid REO Imputed Interest
        thereon through the date of the REO Disposition shall be retained by the
        Servicer as additional servicing compensation.

       

      (g)           The
        Servicer shall use Accepted Servicing Practices to sell, or cause the
        Subservicer to sell, in accordance with Accepted Servicing Practices, any
        REO
        Property as soon as possible, but in no event later than the conclusion of
        the
        third calendar year beginning after the year of its acquisition by the REMIC
        1
        unless (i) the Servicer applies for an extension of such period from the
        Internal Revenue Service pursuant to the REMIC Provisions and Code
        Section 856(e)(3), in which event such REO Property shall be sold within
        the applicable extension period, or (ii) the Servicer obtains for the
        Trustee an Opinion of Counsel, addressed to the Depositor, the Trustee and
        the
        Servicer, to the effect that the holding by the REMIC of such REO Property
        subsequent to such period will not result in the imposition of taxes on
“prohibited transactions” as defined in Section 860F of the Code or cause
        any REMIC created under this Agreement to fail to qualify as a REMIC under
        the
        REMIC Provisions or comparable provisions of relevant state laws at any time.
        The Servicer shall manage, conserve, protect and operate each REO Property
        for
        the Trustee 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) or result in the receipt
        by any REMIC 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 Section 860G(a)(1)
        of the Code. Pursuant to its efforts to sell such REO Property, the Servicer
        shall either itself or through an agent selected by the Servicer protect
        and
        conserve such REO Property in the same manner and to such extent as is customary
        in the locality where such REO Property is located and may, incident to its
        conservation and protection of the interests of the Trustee on behalf of
        the
        Certificateholders, rent the same, or any part thereof, as the Servicer deems
        to
        be in the best interest of the Trustee on behalf of the Certificateholders
        for
        the period prior to the sale of such REO Property; provided,
        however,
        that
        any rent received or accrued with respect to such REO Property qualifies
        as
“rents from real property” as defined in Section 856(d) of the
        Code.

       

      Section
        3.18           Notification
        of Adjustments.
        With
        respect to each Adjustable Rate Mortgage Loan, the Servicer shall adjust
        the
        Mortgage Rate on the related Adjustment Date and shall adjust the Scheduled
        Payment on the related mortgage payment adjustment date, if applicable, in
        compliance with the requirements of applicable law and the related Mortgage
        and
        Mortgage Note. In the event that an Index becomes unavailable or otherwise
        unpublished, the Servicer shall select a comparable alternative index over
        which
        it has no direct control and which is readily verifiable. The Servicer shall
        execute and deliver any and all necessary notices required under applicable
        law
        and the terms of the related Mortgage Note and Mortgage regarding the Mortgage
        Rate and Scheduled Payment adjustments. The Servicer shall promptly, upon
        written request therefor, deliver to the Master Servicer such notifications
        and
        any additional applicable data regarding such adjustments and the methods
        used
        to calculate and implement such adjustments. Upon the discovery by the Servicer
        or the receipt of notice from the Master Servicer that the Servicer has failed
        to adjust a Mortgage Rate or Scheduled Payment in accordance with the terms
        of
        the related Mortgage Note, the Servicer shall deposit in the Collection Account
        from its own funds the amount of any interest loss caused as such interest
        loss
        occurs.

      
        
          
          

        

        
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      Section
        3.19           Access
        to Certain Documentation and Information Regarding the Mortgage
        Loans.
        The
        Servicer shall provide, or cause the Subservicer to provide, to the Depositor
        and the Trustee, at the request of the OTS or the FDIC and the examiners
        and
        supervisory agents thereof, access to the documentation regarding the Mortgage
        Loans in its possession required by applicable regulations of the OTS. Such
        access shall be afforded without charge, but only upon 10 days (or, if an
        Event
        of Default has occurred and is continuing, 3 Business Days) prior written
        request and during normal business hours at the offices of the Servicer or,
        if
        applicable, any Subservicer. Nothing in this Section shall derogate from
        the
        obligation of any such party to observe any applicable law prohibiting
        disclosure of information regarding the Mortgagors and the failure of any
        such
        party to provide access as provided in this Section as a result of such
        obligation shall not constitute a breach of this Section.

       

      Nothing
        in this Section 3.19 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 to ship
        documents to any Person who is not a party to this Agreement, and then only
        if
        provisions have been made for the reimbursement of the costs
        thereof.

       

      Section
        3.20           Documents,
        Records and Funds in Possession of the Servicer to Be Held for the
        Trustee.
        Not
        later than thirty days after each Distribution Date, the Servicer shall
        forward to the Trustee, the Master Servicer and the Securities Administrator
        a
        statement prepared by the Servicer setting forth the status of the Collection
        Account as of the close of business on the last day of the calendar month
        relating to such Distribution Date and showing, for the period covered by
        such
        statement, the aggregate amount of deposits into and withdrawals from the
        Collection Account of each category of deposit specified in Section 3.10(a)
        and each category of withdrawal specified in Section 3.11. Such statement
        shall be provided substantially in the form of Exhibit N-1 hereto. Copies
        of such statement shall be provided by the Securities Administrator to any
        Certificateholder and to any Person identified to the Securities Administrator
        as a prospective transferee of a Certificate, upon the request and at the
        expense of the requesting party, provided such statement is delivered by
        the
        Servicer to the Securities Administrator.

      
        
          
          

        

        
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      Section
        3.21           Servicing
        Compensation.
        (a)  As compensation for its activities hereunder, the Servicer shall,
        with respect to each Mortgage Loan, be entitled to retain from deposits to
        the
        Collection Account and from applicable Liquidation Proceeds, Condemnation
        Proceeds, Insurance related Proceeds, Subsequent Recoveries and REO Proceeds
        related to such Mortgage Loan, the Servicing Fee with respect to each Mortgage
        Loan (less any portion of such amounts retained by any Subservicer). In
        addition, the Servicer shall be entitled to recover unpaid Servicing Fees
        out of
        related Late Collections and as otherwise permitted under Section 3.11. 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 Subservicer
        pursuant to a Subservicing Agreement entered into under
        Section 3.02.

       

      (b)           Additional
        servicing compensation in the form of assumption or modification fees, late
        payment charges, NSF fees, reconveyance fees and other similar fees and charges
        (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, as additional servicing compensation, interest or other
        income earned on deposits therein. The Servicer shall also be entitled as
        additional servicing compensation, to interest or other income earned on
        deposits in the Escrow Account (to the extent permitted by law and the related
        Mortgage Loan documents) in accordance with Section 3.12. The Servicer
        shall also be entitled to retain net Prepayment Interest Excesses (to the
        extent
        not required to offset Prepayment Interest Shortfalls), but only to the extent
        such amounts are received by the Servicer.

       

      (c)           The
        Servicer shall be required to pay all expenses incurred by it in connection
        with
        its servicing activities hereunder (including payment of premiums for any
        blanket policy insuring against hazard losses pursuant to Section 3.13,
        servicing compensation of the Subservicer to the extent not retained by it
        and
        the fees and expenses of independent accountants and any agents appointed
        by the
        Servicer), and shall not be entitled to reimbursement therefor from the Trust
        Fund except as specifically provided in Section 3.11.

       

      Section
        3.22           Report
        on Assessment of Compliance with Relevant Servicing Criteria.
        On or
        before March 15th
        of each
        calendar year, commencing in March 2007, the Master Servicer, the Securities
        Administrator and the Custodian, each at its own expense, shall furnish or
        otherwise make available, and each such party shall cause any Servicing Function
        Participant engaged by it to furnish, each at its own expense, to the Securities
        Administrator and the Depositor, a report on an assessment of compliance
        with
        the Relevant Servicing Criteria set forth in Exhibit S that contains (A)
        a
        statement by such party of its responsibility for assessing compliance with
        the
        Relevant Servicing Criteria, (B) a statement that such party used the Relevant
        Servicing Criteria to assess compliance with the Relevant Servicing Criteria,
        (C) such party’s assessment of compliance with the Relevant Servicing Criteria
        as of and for the fiscal year covered by the Form 10-K required to be filed
        pursuant to Section 8.12, including, if there has been any material instance
        of
        noncompliance with the Relevant Servicing Criteria, a discussion of each
        such
        failure and the nature and status thereof, and (D) a statement that a registered
        public accounting firm has issued an attestation report on such party’s
        assessment of compliance with the Relevant Servicing Criteria as of and for
        such
        period. 

      
        
          
          

        

        
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      On
        or
        before March 10th
        of each
        calendar year, commencing in March 2007, the Servicer, at its own expense,
        shall
        furnish or otherwise make available, and shall cause any Servicing Function
        Participant engaged by it to furnish, each at its own expense, to the Securities
        Administrator, a report on an assessment of compliance with the Relevant
        Servicing Criteria set forth in Exhibit S that contains (A) a statement by
        such
        party of its responsibility for assessing compliance with the Relevant Servicing
        Criteria, (B) a statement that such party used the Relevant Servicing Criteria
        to assess compliance with the Relevant Servicing Criteria, (C) such party’s
        assessment of compliance with the Relevant Servicing Criteria as of and for
        the
        fiscal year covered by the Form 10-K required to be filed pursuant to Section
        8.12, including, if there has been any material instance of noncompliance
        with
        the Relevant Servicing Criteria, a discussion of each such failure and the
        nature and status thereof, and (D) a statement that a registered public
        accounting firm has issued an attestation report on such party’s assessment of
        compliance with the Relevant Servicing Criteria as of and for such period.
        A
        copy of any report delivered to the Securities Administrator under this
        paragraph shall be promply delivered by the Securities Administrator to the
        Depositor, provided that,
        in no
        event shall the Depositor receive any such report later than March
        15th
        of such
        calendar year.

       

      Promptly
        after receipt of each such report on assessment of compliance, (i) the Depositor
        shall review each such report and, if applicable, consult with the Master
        Servicer, the Securities Administrator, the Servicer and any Servicing Function
        Participant engaged by such parties as to the nature of any material instance
        of
        noncompliance with the Relevant Servicing Criteria by each such party, and
        (ii)
        the Securities Administrator shall confirm that the assessments, taken as
        a
        whole, address all of the Servicing Criteria and taken individually address
        the
        Relevant Servicing Criteria for each party as set forth on Exhibit
        S.

       

      The
        Master Servicer shall enforce any obligation of the Servicer (and the Servicer
        shall enforce any obligation of a Sub-Servicer or Subcontractor engaged by
        the
        Servicer) to cause to be delivered to the Securities Administrator an annual
        report on assessment of compliance within the time frame set
        forth
        in this Section 3.22, and in such form and
        substance required by this Agreement. 

       

      In
        the
        event the Master Servicer, the Securities Administrator, the Custodian or
        any
        Servicing Function Participant engaged by any such party is terminated, assigns
        its rights and obligations under, or resigns pursuant to, the terms of this
        Agreement, or any other applicable agreement, as the case may be, such party
        shall provide a report on assessment of compliance pursuant to this Section
        3.22, or to such other applicable agreement, notwithstanding any such
        termination, assignment or resignation.

       

      Section
        3.23           Report
        on Attestation of Compliance with Relevant Servicing Criteria. 
        On or
        before March 15th
        of each
        calendar year, commencing in March 2007, the Master Servicer, the Securities
        Administrator and the Custodian, each at its own expense, shall cause, and
        each
        such party shall cause any Servicing Function Participant engaged by it to
        cause, each at its own expense, a registered public accounting firm (which
        may
        also render other services to the Master Servicer, the Securities Administrator,
        the Custodian or such other Servicing Function Participants, as the case
        may be)
        that is a member of the American Institute of Certified Public Accountants
        to
        furnish an attestation report to the Securities Administrator and the Depositor,
        to the effect that (i) it has obtained a representation regarding certain
        matters from the management of such party, which includes an assertion that
        such
        party has complied with the Relevant Servicing Criteria, and (ii) on the
        basis
        of an examination conducted by such firm in accordance with standards for
        attestation engagements issued or adopted by the Public Company Accounting
        Oversight Board, it is expressing an opinion as to whether such party’s
        compliance with the Relevant Servicing Criteria was fairly stated in all
        material respects, or it cannot express an overall opinion regarding such
        party’s assessment of compliance with the Relevant Servicing Criteria. In the
        event that an overall opinion cannot be expressed, such registered public
        accounting firm shall state in such report why it was unable to express such
        an
        opinion. Such report must be available for general use and not contain
        restricted use language. 

      
        
          
          

        

        
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      On
        or
        before March 10th
        of each
        calendar year, commencing in March 2007, the Servicer, at its own expense,
        shall
        cause, and shall cause any Servicing Function Participant engaged by it to
        cause, each at its own expense, a registered public accounting firm (which
        may
        also render other services to the Servicer or such other Servicing Function
        Participants, as the case may be) that is a member of the American Institute
        of
        Certified Public Accountants to furnish an attestation report to the Securities
        Administrator, to the effect that (i) it has obtained a representation regarding
        certain matters from the management of such party, which includes an assertion
        that such party has complied with the Relevant Servicing Criteria, and (ii)
        on
        the basis of an examination conducted by such firm in accordance with standards
        for attestation engagements issued or adopted by the Public Company Accounting
        Oversight Board, it is expressing an opinion as to whether such party’s
        compliance with the Relevant Servicing Criteria was fairly stated in all
        material respects, or it cannot express an overall opinion regarding such
        party’s assessment of compliance with the Relevant Servicing Criteria. In the
        event that an overall opinion cannot be expressed, such registered public
        accounting firm shall state in such report why it was unable to express such
        an
        opinion. Such report must be available for general use and not contain
        restricted use language. A copy of any report delivered to the Securities
        Administrator under this paragraph shall be promply delivered by the Securities
        Administrator to the Depositor, provided that,
        in no
        event shall the Depositor receive any such report later than March
        15th
        of such
        calendar year.

       

      Promptly
        after receipt of each such assessment of compliance and attestation report,
        the
        Securities Administrator shall confirm that each assessment submitted pursuant
        to Section 3.22 is coupled with an attestation meeting the requirements of
        this
        Section and notify the Depositor of any exceptions. 

       

      The
        Master Servicer shall enforce any obligation of the Servicer (and the Servicer
        shall enforce any obligation of a Sub-Servicer or Subcontractor engaged by
        the
        Servicer) to cause to be delivered to the Master Servicer an attestation
        within
        the time frame set forth in this Section 3.23, and in such form and substance
        as
        may be required by this Agreement. 

       

      In
        the
        event the Servicer, the Master Servicer, the Securities Administrator, the
        Custodian or any Servicing Function Participant engaged by any such party,
        is
        terminated, assigns its rights and duties under, or resigns pursuant to the
        terms of, this Agreement or any other applicable agreement, as the case may
        be,
        such party shall cause a registered public accounting firm to provide an
        attestation pursuant to this Section 3.23, or to such other applicable
        agreement, notwithstanding any such termination, assignment or resignation.
        

      
        
          
          

        

        
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      Section
        3.24           Annual
        Officer’s Certificates.
        (a) Each
        Form 10-K filed with the Commission shall include a Sarbanes-Oxley Certification
        exactly as set forth in Exhibit L attached hereto, required to be included
        therewith pursuant to the Sarbanes-Oxley Act. The Servicer, the Master Servicer
        and the Securities Administrator shall, and shall cause any Servicing Function
        Participant engaged by it to, provide to the Person who signs the Sarbanes-Oxley
        Certification (the “Certifying
        Person”),
        by
        March 10th
        of each
        year in which the Trust is subject to the reporting requirements of the Exchange
        Act and otherwise within a reasonable period of time upon request, a
        certification (each, a “Back-Up
        Certification”),
        in
        the form attached hereto as Exhibit M, upon which the Certifying Person,
        the
        entity for which the Certifying Person acts as an officer, and such entity’s
        officers, directors and Affiliates (collectively with the Certifying Person,
        “Certification
        Parties”)
        can
        reasonably rely. The senior officer of the Master Servicer in charge of the
        master servicing function shall serve as the Certifying Person on behalf
        of the
        Trust. Such officer of the Certifying Person can be contacted by e-mail at
        cts.sec.notifications@wellsfargo.com
        or by
        facsimile at 410-715-2380. In the event any such party or any Servicing Function
        Participant engaged by any such party is terminated or resigns pursuant to
        the
        terms of this Agreement, or any applicable sub-servicing agreement, as the
        case
        may be, such party shall provide a Back-Up Certification to the Certifying
        Person pursuant to this Section 3.24 with respect to the period of time it
        was
        subject to this Agreement or any applicable sub-servicing agreement, as the
        case
        may be. Notwithstanding the foregoing, (i) the Master Servicer and the
        Securities Administrator shall not be required to deliver a Back-Up
        Certification to each other if both are the same Person and the Master Servicer
        is the Certifying Person and (ii) the Master Servicer shall not be obligated
        to
        sign the Sarbanes-Oxley Certification in the event that it does not receive
        any
        Back-Up Certification required to be furnished to it pursuant to this section
        or
        any Servicing Agreement or Custodial Agreement.

       

      (b)           On
        or before March 15th
        of each
        calendar year, commencing in March 2007, the Servicer, the Master Servicer
        and
        the Securities Administrator shall deliver (or otherwise make available)
        (and
        the Servicer, the Master Servicer and Securities Administrator shall cause
        any
        Servicing Function Participant engaged by it to deliver) to the Depositor
        and
        the Securities Administrator, an Officer’s Certificate substantially in the form
        of Exhibit U stating, as to the signer thereof, that (A) a review of such
        party’s activities during the preceding calendar year or portion thereof and of
        such party’s performance under this Agreement, or such other applicable
        agreement in the case of a Servicing Function Participant, has been made
        under
        such officer’s supervision and (B) to the best of such officer’s knowledge,
        based on such review, such party has fulfilled all its obligations under
        this
        Agreement, or such other applicable agreement in the case of a Servicing
        Function Participant, in all material respects throughout such year or portion
        thereof, or, if there has been a failure to fulfill any such obligation in
        any
        material respect, specifying each such failure known to such officer and
        the
        nature and status thereof.

       

      In
        the
        event the Servicer, the Master Servicer, the Securities Administrator or
        any
        Servicing Function Participant engaged by any such party is terminated or
        resigns pursuant to the terms of this Agreement, or any applicable agreement
        in
        the case of a Servicing Function Participant, as the case may be, such party
        shall provide an Officer’s Certificate pursuant to this Section 3.24 or to such
        applicable agreement, as the case may be, notwithstanding any such termination,
        assignment or resignation. 

      
        
          
          

        

        
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      (c)           The
        Servicer shall indemnify and hold harmless the Trustee, the Master Servicer,
        the
        Securities Administrator, the Depositor and their respective officers,
        directors, agents and affiliates from and against any losses, damages,
        penalties, fines, forfeitures, reasonable legal fees and related costs,
        judgments and other costs and expenses arising out of or based upon a breach
        by
        the Servicer or any of its officers, directors, agents or affiliates of its
        obligations under this Section 3.24 or the negligence, bad faith or willful
        misconduct of the Servicer in connection therewith. If the indemnification
        provided for herein is unavailable or insufficient to hold harmless the Trustee,
        the Master Servicer, the Securities Administrator and the Depositor, then
        the
        Servicer agrees that it shall contribute to the amount paid or payable by
        the
        Trustee, the Master Servicer, the Securities Administrator, the Depositor
        or
        their respective officers, directors, agents or affiliates as a result of
        the
        losses, claims, damages or liabilities of any such party in such proportion
        as
        is appropriate to reflect the relative fault of such party or parties on
        the one
        hand and the Servicer on the other in connection with a breach of the Servicer’s
        obligations under this Section 3.24 or the Servicer’s negligence, bad faith or
        willful misconduct in connection therewith.

       

      Section
        3.25           Master
        Servicer to Act as Servicer.
        (a)  Subject to Section 7.02, in the event that the Servicer
        shall for any reason no longer be the Servicer hereunder (including by reason
        of
        an Event of Default), the Master Servicer or its successor shall thereupon
        assume all of the rights and obligations of the Servicer hereunder arising
        thereafter, except that the Master Servicer shall not be (i) liable for
        losses of the predecessor Servicer pursuant to Section 3.10 or any acts or
        omissions of the predecessor Servicer hereunder, (ii) obligated to
        effectuate repurchases or substitutions of Mortgage Loans hereunder, including
        but not limited to repurchases or substitutions pursuant to Section 2.03,
        (iii) responsible for expenses of the predecessor Servicer pursuant to
        Section 2.03 or (iv) deemed to have made any representations and
        warranties of the Servicer hereunder. Any such assumption shall be subject
        to
        Section 7.02.

       

      (b)           Every
        Subservicing Agreement entered into by the Servicer shall contain a provision
        giving the successor servicer the option to terminate such agreement in the
        event a successor servicer is appointed.

       

      (c)           If
        the Servicer shall for any reason no longer be the Servicer (including by
        reason
        of any Event of Default), the Master Servicer or the Trustee (as successor
        Master Servicer), as applicable, (or any other successor servicer) may, at
        its
        option, succeed to any rights and obligations of the Servicer under any
        Subservicing Agreement in accordance with the terms thereof; provided,
        that
        the Master Servicer or the Trustee (as successor Master Servicer), as
        applicable, (or any other successor servicer) shall not incur any liability
        or
        have any obligations in its capacity as successor servicer under a Subservicing
        Agreement arising prior to the date of such succession unless it expressly
        elects to succeed to the rights and obligations of the Servicer thereunder;
        and
        the Servicer shall not thereby be relieved of any liability or obligations
        under
        the Subservicing Agreement arising prior to the date of such
        succession.

       

      (d)           The
        Servicer shall, upon request of the Master Servicer or the Trustee (as successor
        Master Servicer), as applicable, but at the expense of the Servicer, deliver
        to
        the assuming party all documents and records relating to each Subservicing
        Agreement (if any) and the Mortgage Loans then being serviced thereunder
        and an
        accounting of amounts collected and held by it, and otherwise use its best
        efforts to effect the orderly and efficient transfer of the Subservicing
        Agreement to the assuming party.

      
        
          
          

        

        
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      Section
        3.26           Compensating
        Interest.
        The
        Servicer shall remit to the Master Servicer on each Remittance Date an amount
        from its own funds equal to the Compensating Interest payable by the Servicer
        for the related Distribution Date.

       

      Section
        3.27           Credit
        Reporting; Gramm-Leach-Bliley Act.
        (a)  With respect to each Mortgage Loan serviced by it, the Servicer
        agrees to fully furnish, in accordance with the Fair Credit Reporting Act
        and
        its implementing regulations, accurate and complete information (e.g., favorable
        and unfavorable) on the primary borrower of such Mortgage Loan to Equifax,
        Experian and TransUnion Credit Information Company (three of the credit
        repositories) on a monthly basis.

       

      (b)           The
        Servicer shall comply with Title V of the Gramm-Leach-Bliley Act of 1999
        and all applicable regulations promulgated thereunder, relating to the Mortgage
        Loans and the related borrowers and shall provide all required notices
        thereunder.

       

      Section
        3.28           [Reserved].

       

      Section
        3.29           Notifications
        to Parties.
        The
        Servicer shall promptly notify the Master Servicer and the Depositor (i)
        of any
        legal proceedings pending against the Servicer of the type described in Item
        1117 (§ 229.1117) of Regulation AB and (ii) if the Servicer shall become (but
        only to the extent not previously disclosed to the Master Servicer and the
        Depositor) at any time an affiliate of any of the parties listed on Exhibit
        T to
        this Agreement. If so requested by the Master Servicer or the Depositor on
        any
        date following the date on which information was first provided to the Master
        Servicer and the Depositor, pursuant to the preceding sentence, the Servicer
        shall within five Business Days following such request, confirm in writing
        the
        accuracy of the representations and warranties set forth in item number (7)
        of
Schedule
        II
        hereto,
        or, the Servicer shall, if such a representation and warranty is not accurate
        as
        of the date of such request, provide reasonable adequate disclosure of the
        pertinent facts, in writing, to the requesting party. 

       

      The
        Servicer shall provide to the Master Servicer and the Depositor prompt notice
        of
        the occurrence of any of the following: (i) any event of default under the
        terms
        of this Agreement; (ii) any merger, consolidation or sale of substantially
        all
        of the assets of the Servicer; (iii) the Servicer’s engagement of any
        Subservicer or Subcontractor; (iv) any material litigation involving the
        Servicer; and (v) any affiliation or other significant relationship between
        the
        Servicer and other transaction parties.

       

      Section
        3.30           Indemnification.
        (a)           Each of the
        Depositor, the Servicer, the Master Servicer, the Securities Administrator
        and
        any Servicing Function Participant (each, an “Indemnifying Party”) engaged by
        any such party, shall indemnify and hold harmless the Servicer, the Master
        Servicer, the Securities Administrator, the Trustee and the Depositor,
        respectively, and each of its directors, officers, employees, agents, and
        affiliates from and against any and all claims, losses, damages, penalties,
        fines, forfeitures, reasonable legal fees and related costs, judgments and
        other
        costs and expenses arising out of or based upon (a) any breach by such party
        of
        any if its obligations hereunder, including particularly its obligations
        to
        provide any annual statement of compliance, annual assessment of compliance
        with
        Servicing Criteria or attestation report or any information, data or materials
        required to be included in any Exchange Act report, (b) any material
        misstatement or omission in any information, data or materials provided by
        such
        party including any material misstatement or material omission in (i) any
        annual
        statement of compliance, annual assessment of compliance with Servicing Criteria
        or attestation report delivered by it, or by any Servicing Function Participant
        engaged by it, pursuant to this Agreement, or (ii) any Additional Form 10-D
        Disclosure, Additional Form 10-K Disclosure or Form 8-K Disclosure Information
        provided by it, or (c) the negligence, bad faith or willful misconduct of
        such
        indemnifying party in connection with its performance hereunder. If the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless the Servicer, the Master Servicer, the Securities
        Administrator,
        the
        Trustee
        or the
        Depositor, as the case may be, then each Indemnifying Party agrees that it
        shall
        contribute to the amount paid or payable by the Servicer, the Master Servicer,
        the Securities Administrator, the Trustee or the Depositor, as applicable,
        as a
        result of any claims, losses, damages or liabilities incurred by such party
        in
        such proportion as is appropriate to reflect the relative fault of the
        indemnified party on the one hand and the indemnifying party on the other.
        This
        indemnification shall survive the termination of this Agreement or the
        termination of any party to this Agreement.

      
        
          
          

        

        
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      (b)           The
        Depositor, the Servicer, the Securities Administrator and the Trustee shall
        immediately notify the Master Servicer if a claim is made by a third party
        with
        respect to this Agreement or the Mortgage Loans which would entitle the
        Depositor, the Servicer, the Securities Administrator, the Trustee or the
        Trust
        to indemnification from the Master Servicer, whereupon the Master Servicer
        shall
        assume the defense of any such claim and pay all expenses in connection
        therewith, including counsel fees, and promptly pay, discharge and satisfy
        any
        judgment or decree which may be entered against it or them in respect of
        such
        claim. If the Master Servicer and any such indemnified party have a conflict
        of
        interest with respect to any such claim, the indemnified party shall have
        the
        right to retain separate counsel.

       

      ARTICLE
        IV

       

      DISTRIBUTIONS
        AND

      ADVANCES
        BY THE SERVICER

       

      Section
        4.01           Advances.
        (a)  The amount of P&I Advances to be made by the Servicer for any
        Remittance Date shall equal, subject to Section 4.01(c), the sum of
        (i) the aggregate amount of Scheduled Payments (with each interest portion
        thereof net of the related Servicing Fee), due during the Due Period immediately
        preceding such Remittance Date in respect of the Mortgage Loans, which Scheduled
        Payments were not received as of the close of business on the related
        Determination Date, plus (ii) with respect to each REO Property, which REO
        Property was acquired during or prior to the related Prepayment Period and
        as to
        which such REO Property an REO Disposition did not occur during the related
        Prepayment Period, an amount equal to the excess, if any, of the Scheduled
        Payments (with each interest portion thereof net of the related Servicing
        Fee)
        that would have been due on the related Due Date in respect of the related
        Mortgage Loans, over the net income from such REO Property transferred to
        the
        Collection Account for distribution on such Remittance Date.

      
        
          
          

        

        
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      (b)           On
        each Remittance Date, the Servicer shall remit in immediately available funds
        to
        the Master Servicer an amount equal to the aggregate amount of P&I Advances,
        if any, to be made in respect of the Mortgage Loans and REO Properties for
        the
        related Remittance 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 4.01, used by it in discharge of any such P&I
        Advance) or (iii) in the form of any combination of (i) and
        (ii) aggregating the total amount of P&I Advances to be made by the
        Servicer with respect to the Mortgage Loans and REO Properties. Any Amounts
        Held
        for Future Distribution and so used 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 Remittance Date to the extent
        required.

       

      (c)           The
        obligation of the Servicer to make such P&I Advances is mandatory,
        notwithstanding any other provision of this Agreement but subject to
        (d) below, and, with respect to any Mortgage Loan or REO Property, shall
        continue until a Final Recovery Determination in connection therewith or
        the
        removal thereof from coverage under this Agreement, except as otherwise provided
        in this Section.

       

      (d)           Notwithstanding
        anything herein to the contrary, no P&I Advance or Servicing Advance shall
        be required to be made hereunder by the Servicer if such P&I Advance or
        Servicing Advance would, if made, constitute a Nonrecoverable P&I Advance or
        Nonrecoverable Servicing Advance. The determination by the Servicer that
        it has
        made a Nonrecoverable P&I Advance or a Nonrecoverable Servicing Advance or
        that any proposed P&I Advance or Servicing Advance, if made, would
        constitute a Nonrecoverable P&I Advance or a Nonrecoverable Servicing
        Advance, respectively, shall be evidenced by a Servicing Officer’s certificate
        of the Servicer delivered to the Master Servicer. In addition, the Servicer
        shall not be required to advance any Relief Act Interest
        Shortfalls.

       

      (e)           Except
        as otherwise provided herein, the Servicer shall be entitled to reimbursement
        pursuant to Section 3.11 for Servicing Advances from recoveries from the
        related Mortgagor or from all Liquidation Proceeds and other payments or
        recoveries (including Insurance Proceeds, Condemnation Proceeds and Subsequent
        Recoveries) with respect to the related Mortgage Loan.

       

      (f)           On
        each Remittance Date, the Master Servicer shall deposit in the Distribution
        Account all funds remitted to it by the Servicer pursuant to Sections 3.11(a)(i)
        and 3.26 and this Section 4.01. The Securities Administrator may retain or
        withdraw from the Distribution Account, (i) the Master Servicing Fee, (ii)
        amounts necessary to reimburse the Servicer for any previously unreimbursed
        Advances and any Advances the Servicer deems to be nonrecoverable from the
        related Mortgage Loan proceeds, (iii) amounts necessary to reimburse the
        Master
        Servicer for any previously unreimbursed Advances and any Advances the Master
        Servicer deems to be nonrecoverable from the related Mortgage Loan proceeds,
        (iv) an amount to indemnify the Master Servicer or the Servicer for amounts
        due
        in accordance with this Agreement, and (v) any other amounts that each of
        the
        Master Servicer and the Securities Administrator is entitled to receive
        hereunder for reimbursement, indemnification or otherwise.

      
        
          
          

        

        
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      Section
        4.02           Priorities
        of Distribution.
        (a)  On each Distribution Date (or, in the case of deposits into the
        Supplemental Interest Trust, on the Derivative Payment Date), the Securities
        Administrator will make the disbursements and transfers from amounts then
        on
        deposit in the Distribution Account and from amounts that are available for
        payment to the Swap Counterparty, and shall allocate such amounts to the
        interests issued in respect of each REMIC created pursuant to this Agreement
        and
        shall distribute such amounts in the following order of priority and to the
        extent of the Available Funds remaining:

       

      (i)           to
        the Supplemental Interest Trust and the holders of the Class A-IO Certificates
        and each Class of LIBOR Certificates in the following order of
        priority:

       

      (A)           from
        the Interest Remittance Amount, for deposit into the Supplemental Interest
        Trust
        Account, the amount of any Net Derivative Payment or Swap Termination Payment
        (other than a Swap Termination Payment resulting from a Swap Counterparty
        Trigger Event) owed to the Derivative Counterparty, including any such amounts
        remaining unpaid from previous Distribution Dates;

       

      (B)           from
        the Interest-Remittance Amount, to the Class A-IO Certificates, the related
        Senior Interest Payment Amount for such Class;

       

      (C)           from
        the Interest Remittance Amount, to the Class A-1, Class A-2, Class A-3 and
        Class
        A-4 Certificates, pro
        rata,
        the
        Senior Interest Payment Amount for each such Class of Certificates on such
        Distribution Date; and

       

      (D)           from
        any remaining Interest Remittance Amount after taking into account the
        distributions made under clauses (i)(A) through (i)(C) above, sequentially,
        to
        each Class of Class M Certificates, in ascending order by numerical Class
        designation, the Interest Payment Amount for such Class and such Distribution
        Date;

       

      (ii)           (A)  on
        each Distribution Date (or, in the case of deposits into the Supplemental
        Interest Trust, on the Derivative Payment Date) (1) before the Stepdown
        Date or (2) with respect to which a Trigger Event is in effect, to the
        Supplemental Interest Trust and to the holders of the Class or Classes of
        LIBOR Certificates and the Class A-5 Certificates then entitled to distributions
        of principal as set forth below, from amounts remaining on deposit in the
        Distribution Account after making distributions pursuant to paragraph (a)(i)
        of
        this Section 4.02, an amount equal to, in the aggregate, the Principal Payment
        Amount, in the following amounts and order of priority:

       

      (a)           for
        deposit into the Supplemental Interest Trust Account, any Net Derivative
        Payment
        or Swap Termination Payment (other than a Swap Termination Payment resulting
        from a Swap Counterparty Trigger Event) owed to the Derivative Counterparty
        to
        the extent unpaid pursuant to clause (i)(A) above;

       

      (b)           to
        the Class A-1, Class A-2, Class A-3, Class A-4 and Class A-5 Certificates,
        the
        Principal Payment Amount, allocated among such Classes as set forth in Section
        4.02(c), until their respective Class Certificate Balances are reduced to
        zero;

      
        
          
          

        

        
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      (c)           sequentially,
        to each Class of Class M Certificates, in ascending order by numerical
        Class designation, until their respective Class Certificate Balances are
        reduced to zero; and

       

      (B)           on
        each Distribution Date (or, in the case of deposits into the Supplemental
        Interest Trust, on the Derivative Payment Date) (1) on and after the
        Stepdown Date and (2) as long as a Trigger Event is not in effect, to the
        Supplemental Interest Trust and to the holders of the Class or Classes of
        LIBOR Certificates and the Class A-5 Certificates then entitled to distributions
        of principal, from amounts remaining on deposit in the Distribution Account
        after making distributions pursuant to paragraph (a)(i) of this Section 4.02
        above, an amount equal to, in the aggregate, the Principal Payment Amount,
        in
        the following amounts and order of priority:

       

      (a)           for
        deposit into the Supplemental Interest Trust Account, any Net Derivative
        Payment
        or Swap Termination Payment (other than a Swap Termination Payment resulting
        from a Swap Counterparty Trigger Event) owed to the Derivative Counterparty
        to
        the extent unpaid pursuant to clause (a)(i)(A) of this Section
        4.02;

       

      (b)           to
        the Class A-1, Class A-2, Class A-3, Class A-4 and Class A-5 Certificates,
        the
        Senior Principal Payment Amount, allocated as described in Section 4.02(c),
        until their respective Certificate Principal Balances are reduced to zero;
        and

       

      (c)           sequentially,
        to each Class of Class M Certificates, in the order set forth in the
        definition of Class M Principal Payment Amount, the Class M Principal
        Payment Amount for the related Class of Class M certificates, until their
        respective Class Certificate Balances are reduced to zero;

       

      (iii)           any
        amounts remaining after the distributions in paragraphs (i) and (ii) of
        this Section 4.02(a), plus, as specifically indicated below, from amounts
        on
        deposit in the Excess Reserve Fund Account, shall be distributed in the
        following order of priority:

       

      (A)
        to
        the Class A-IO Certificates, any Senior Interest Payment Amount not paid
        pursuant to clause (a)(i)(B) of this Section 4.02;

       

      (B)           to
        the Class A Certificates (other than the Class A-IO and Class A-5 Certificates),
        any Senior Interest Payment Amount not paid pursuant to clause (a)(i)(C)
        of this
        Section 4.02 allocated pro
        rata
        in
        proportion to the amount of such shortfalls;

       

      (C)           sequentially,
        to the holders of the Class M Certificates, in ascending order by numerical
        Class designation, first,
        any
        Interest Payment Amount for that Class not paid for such Distribution Date
        pursuant to clause (a)(i)(D) of this Section 4.02, second,
        any
        Interest Carry Forward Amount for that Class, and third,
        any
        Unpaid Realized Loss Amount for that Class;

      
        
          
          

        

        
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      (D)           to
        the Excess Reserve Fund Account, the amount of any Basis Risk Payment for
        such
        Distribution Date;

       

      (E)           from
        amounts on deposit in the Excess Reserve Fund Account with respect to such
        Distribution Date, an amount equal to any unpaid Basis Risk Carryover Amount
        with respect to the LIBOR Certificates and Class A-IO Certificates for such
        Distribution Date, allocated in the same order and priority as set forth
        in
        clauses (a)(i)(B), (a)(i)(C) and (a)(i)(D) of this Section 4.02;

       

      (F)           to
        the Credit Risk Manger, the Credit Risk Manager Fee;

       

      (G)           to
        the Swap Counterparty, any Swap Termination Payment resulting from a Swap
        Counterparty Trigger Event;

       

      (H)           to
        the holders of the Class X Certificates, the remainder of the Class X
        Distributable Amount not distributed pursuant to Sections 4.02(a)(iii)(A)
        through (G); and

       

      (I)           to
        the holders of the Class R Certificates, any remaining amount;

       

      If
        on any
        Distribution Date, as a result of the foregoing allocation rules, any
        Class of Class A Certificates does not receive in full the related
        Senior Interest Payment Amount or the related Interest Carry Forward Amount,
        if
        any, then such shortfall will be allocated to the Holders of such Class,
        with
        interest thereon, on future Distribution Dates, as Interest Carry Forward
        Amounts, subject to the priorities described above.

       

      (b)           On
        each Distribution Date, prior to any distributions on any other Class of
        Certificates, all amounts representing Prepayment Charges from the Mortgage
        Loans received during the related Prepayment Period shall be distributed
        by the
        Securities Administrator to the holders of the Class P
        Certificates.

       

      (c)           Any
        principal distributions allocated to the Class A Certificates will be allocated
        as follows:

       

      (i)           to
        the Class A-1 Certificates, until the Class Certificate Balance of such Class
        has been reduced to zero;

       

      (ii)           
        to the Class A-2 Certificates, until the Class Certificate Balance of such
        Class
        has been reduced to zero;

       

      (iii)           to
        the Class A-3 Certificates, until the Class Certificate Balance of such Class
        has been reduced to $59,604,000;

       

      (iv)           to
        the Class A-5 Certificates, until the Class Certificate Balance of such Class
        has been reduced to zero;

       

      (v)           to
        the Class A-3 Certificates, until the Class Certificate Balance of such Class
        has been reduced to zero; and

      
        
          
          

        

        
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      (vi)           to
        the Class A-4 Certificates, until the Class Certificate Balance of such Class
        has been reduced to zero.

       

      However,
        on and after the Distribution Date on which the aggregate Class Certificate
        Balances of the Class M Certificates been reduced to zero, any principal
        distributions allocated to the Class A-1, Class A-2, Class A-3, Class A-4
        and
        Class A-5 Certificates are required to be allocated pro
        rata,
        among
        such Classes of Certificates, based upon their respective Class Certificate
        Balances.

       

      (d)           On
        any Distribution Date, any Relief Act Shortfalls and Net Prepayment Interest
        Shortfalls for such Distribution Date shall be allocated by the Securities
        Administrator as a reduction in the following order:

       

      (1)           First,
        to the
        amount of interest payable to the Class X Certificates; and

       

      (2)           Second,
        pro
        rata,
        as a
        reduction of the Interest Payment Amount for the Class A and Class M
        Certificates, based on the amount of interest to which such Classes would
        otherwise be entitled.

       

      (e)           On
        any Distribution Date (or any Derivative Payment Date, as applicable), the
        Securities Administrator shall distribute any Swap Amount and Cap Amount
        for
        such date as follows:

       

      (i)           to
        the Derivative Counterparty, any Net Derivative Payment owed to the Derivative
        Counterparty pursuant to the Swap Agreement for such Derivative Payment Date
        to
        the extent not previously paid in Sections 4.02(a)(i)(A), 4.02(a)(ii)(A)
        or
        4.02(a)(ii)(B);

       

      (ii)           to
        the Swap Counterparty, any Swap Termination Payment not resulting from a
        Swap
        Counterparty Trigger Event owed to the Swap Counterparty pursuant to the
        Swap
        Agreement for such Derivative Payment Date;

       

      (iii)           to
        the extent not paid and in the order of priority provided in clauses (a)(i)(B),
        (a)(i)(C) and (a)(i)(D) of this Section 4.02, to the Class A Certificates
        (other
        than the Class A-5 Certificates) any Senior Interest Payment Amounts, and
        to the
        Class M Certificates, in ascending order by numerical class designation,
        any
        Interest Payment Amounts;

       

      (iv)           to
        the Class A Certificates (other than the Class A-IO Certificates) and the
        Class
        M Certificates in the order of priority set forth in clauses (a)(ii)(A)(b),
        (a)(ii)(A)(c), (a)(ii)(B)(b) and (a)(ii)(B)(c) of this Section 4.02, an amount
        necessary to maintain the Overcollateralization Target Amount for such
        Distribution Date after giving effect to distributions pursuant to such
        clauses;

       

      (v)           to
        the extent not paid pursuant to clause (a)(iii)(C) of this Section 4.02,
        sequentially, to the each Class of Class M Certificates, in ascending order
        by
        numerical Class designation, first,
        any
        Interest Carry Forward Amount for that Class, and second,
        any
        Unpaid Realized Loss Amount for that Class;

      
        
          
          

        

        
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      (vi)           to
        the extent not paid pursuant to clause (a)(iii)(D) of this Section 4.02,
        to the
        Excess Reserve Fund Account, the amount of any Basis Risk Payment for such
        Distribution Date;

       

      (vii)           to
        the extent not paid pursuant to clause (a)(iii)(E) of this Section 4.02,
        to the
        LIBOR Certificates and the Class A-IO Certificates, any remaining unpaid
        Basis
        Risk Carryover Amount with respect to such Certificates for that Distribution
        Date, allocated in the same order and priority as set forth in such
        clause;

       

      (viii)           if
        applicable, to the Swap Termination Receipts Account or Cap Termination Receipts
        Account for application to the purchase of a replacement swap agreement or
        replacement cap agreement pursuant to Section 4.08;

       

      (ix)           to
        the extent not paid pursuant to clause (a)(iii)(F) of this Section 4.02,to
        the
        Credit Risk Manger, the Credit Risk Manager Fee;

       

      (x)           to
        the extent not paid pursuant to clause (a)(iii)(G) of this Section 4.02,
        to the
        Swap Counterparty, any Swap Termination Payment resulting from a Swap
        Counterparty Trigger Event; and

       

      (xi)           to
        the extent not paid pursuant to clause (a)(iii)(H) of this Section 4.02,
        to the
        holders of the Class X Certificates, the remainder of the Class X
        Distributable Amount.

       

      With
        respect to each Distribution Date, the sum of all amounts distributed in
        priorities (e)(iv) and (e)(v) second
        of this
        Section 4.02(e) cannot exceed the amount of cumulative Realized Losses incurred
        up to such Distribution Date minus any distributions made on previous
        Distribution Dates pursuant to such priorities.

       

      Section
        4.03           Monthly
        Statements to Certificateholders.
        (a)  Not
        later than each Distribution Date, the Securities Administrator shall make
        available to each Certificateholder, the Master Servicer, the Servicer, the
        Depositor, the Credit Risk Manager, the Trustee, the Derivative Counterparty
        and
        each Rating Agency a statement, based on information provided by the Servicer
        and the Derivative Counterparty, setting forth with respect to the related
        distribution:

       

      (i)           the
        amount thereof allocable to principal (other than the Interest-Only
        Certificates), separately identifying the aggregate amount of any Principal
        Prepayments, Liquidation Proceeds and Subsequent Recoveries;

       

      (ii)           the
        amount thereof allocable to interest (other than the Principal-Only
        Certificates), any Interest Carry Forward Amounts included in such distribution
        and any remaining Interest Carry Forward Amounts after giving effect to such
        distribution, any Basis Risk Carryover Amount for such Distribution Date
        and the
        amount of all Basis Risk Carryover Amount covered by withdrawals from the
        Excess
        Reserve Fund Account on such Distribution Date;

      
        
          
          

        

        
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      (iii)           if
        the distribution to the Holders of such Class of Certificates is less than
        the full amount that would be distributable to such Holders if there were
        sufficient funds available therefor, the amount of the shortfall and the
        allocation thereof as between principal and interest, including any Basis
        Risk
        Carryover Amount not covered by amounts in the Excess Reserve Fund
        Account;

       

      (iv)           the
        Class Certificate Balance of each Class of Certificates after giving
        effect to the distribution of principal on such Distribution Date;

       

      (v)           the
        Pool Stated Principal Balance for the following Distribution Date;

       

      (vi)           the
        amount of the Expense Fees (in the aggregate and separately stated) paid
        to or
        retained by the Servicer, any Subservicer and the Master Servicer with respect
        to such Distribution Date;

       

      (vii)           the
        Interest Rate for each such Class of Certificates (other than the
        Principal-Only Certificates) with respect to such Distribution
        Date;

       

      (viii)           the
        amount of P&I Advances included in the distribution on such Distribution
        Date and the aggregate amount of P&I Advances outstanding as of the close of
        business on the Determination Date immediately preceding such Distribution
        Date;

       

      (ix)           the
        number and aggregate outstanding principal balances of Mortgage Loans (except
        those Mortgage Loans that are liquidated as of the end of the related Prepayment
        Period) (1) as to which the Scheduled Payment is delinquent 31 to
        60 days, 61 to 90 days and 91 or more days, (2) that have
        become REO Property, (3) that are in foreclosure and (4) that are in
        bankruptcy, in each case as of the close of business on the last Business
        Day of
        the immediately preceding month;

       

      (x)           with
        respect to Mortgage Loans that became REO Properties during the preceding
        calendar month, the number and the aggregate Stated Principal Balance of
        such
        Mortgage Loans as of the close of business on the Determination Date preceding
        such Distribution Date and the date of acquisition thereof;

       

      (xi)           the
        total number and aggregate principal balance of any REO Properties as of
        the
        close of business on the Determination Date preceding such Distribution
        Date;

       

      (xii)           whether
        a Trigger Event has occurred and is continuing;

       

      (xiii)           the
        amount on deposit in the Excess Reserve Fund Account (after giving effect
        to
        distributions on such Distribution Date);

       

      (xiv)           in
        the aggregate and for each Class of Certificates, the aggregate amount of
        Applied Realized Loss Amounts incurred during the preceding calendar month
        and
        aggregate Applied Realized Loss Amounts through such Distribution
        Date.;

      
        
          
          

        

        
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      (xv)           the
        amount of any Net Monthly Excess Cash Flow on such Distribution Date and
        the
        allocation thereof to the Certificateholders with respect to Applied Realized
        Loss Amounts and Interest Carry Forward Amounts;

       

      (xvi)           the
        Overcollateralization Amount and Overcollateralization Target
        Amount;

       

      (xvii)           Prepayment
        Charges collected by the Servicer;

       

      (xviii)           the
        amount of Credit Risk Management Fees paid during the Due Period to which
        such
        Distribution Date relates;

       

      (xix)           the
        Cumulative Loss Percentage; and

       

      (xx)           the
        amount of any Net Derivative Payment made to the Supplemental Interest Trust
        pursuant to Section 4.02, any Net Derivative Payment made to the Derivative
        Counterparty pursuant to Section 4.02, any Swap Termination Payment or Cap
        Termination Payment made to the Supplemental Interest Trust pursuant to Section
        4.02 and any Swap Termination Payment made to the Swap Counterparty pursuant
        to
        Section 4.02.

       

      (a)           For
        purposes of preparing the Monthly Statement, delinquencies shall be determined
        and reported by the Master Servicer based on the so-called “OTS” methodology
        irrespective of the method for determining delinquencies utilized by the
        Servicer on mortgage loans similar to the Mortgage Loans. By way of example,
        a
        Mortgage Loan would be delinquent with respect to a Scheduled Payment due
        on a
        Due Date if such Scheduled Payment is not made by the close of business on
        the
        Mortgage Loan’s next succeeding Due Date, and a Mortgage Loan would be more than
        30-days Delinquent with respect to such Scheduled Payment if such Scheduled
        Payment were not made by the close of business on the Mortgage Loan’s second
        succeeding Due Date.

       

      (b)           The
        Securities Administrator’s responsibility for providing the above statement to
        the Certificateholders, each Rating Agency, the Master Servicer, the Servicer,
        the Trustee and the Depositor is limited to the availability, timeliness
        and
        accuracy of the information derived from the Master Servicer and the Servicer.
        The Securities Administrator will provide the above statement via the Securities
        Administrator’s internet website. The Securities Administrator’s website will
        initially be located at https://www.ctslink.com
        and
        assistance in using the website can be obtained by calling the Securities
        Administrator’s customer service desk at (301) 815-6600. Parties that are unable
        to use the above distribution method are entitled to have a paper copy mailed
        to
        them via first Class mail by calling the customer service desk and indicating
        such. The Securities Administrator shall have the right to change the manner
        in
        which the above statement is distributed in order to make such distribution
        more
        convenient and/or more accessible, and the Securities Administrator shall
        provide timely and adequate notification to the Certificateholders and the
        parties hereto regarding any such changes. A paper copy of the statement
        will
        also be made available upon request.

      
        
          
          

        

        
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      (c)           Within
        a reasonable period of time after the end of each calendar year, the Securities
        Administrator shall, upon request, cause to be furnished to each Person who
        at
        any time during the calendar year was a Certificateholder, a statement
        containing the information set forth in clauses (a)(i), (a)(ii) and (a)(vi)
        of this Section 4.03 aggregated for such calendar year or applicable
        portion thereof during which such Person was a Certificateholder. Such
        obligation of the Securities Administrator shall be deemed to have been
        satisfied to the extent that substantially comparable information shall have
        previously been provided by the Securities Administrator pursuant to any
        requirements of the Code as from time to time in effect.

      

      (d)           On
        the 10th
        day of
        each calendar month (or, if such 10th
        day is
        not a Business Day, then on the next succeeding Business Day), the Servicer
        shall furnish to the Master Servicer (i) a monthly remittance advice in the
        format set forth in Exhibit N-1 hereto, (ii) a monthly defaulted loan report
        in
        the format set forth in Exhibit N-2 hereto and (iii) a realized loss report
        in
        the format set forth in Exhibit N-3 hereto (or in such other format mutually
        agreed to between the Servicer and the Master Servicer) relating to the period
        ending on the last day of the preceding calendar month on a magnetic tape
        or
        other similar media reasonably acceptable to the Master Servicer. No later
        than
        two Business Days after the thirteenth day of each calendar month, the Servicer
        shall furnish to the Master Servicer a monthly report containing such
        information regarding prepayments of Mortgage Loans during the applicable
        Prepayment Period and in a format as mutually agreed to between the Servicer
        and
        the Master Servicer.

       

      The
        Depositor shall have the right upon providing ten Business Days prior written
        notice to the Servicer to receive any report provided by the Servicer to
        the
        Master Servicer under this Section 4.03(d) and to disseminate or otherwise
        utilize such information in its discretion, subject to applicable laws and
        regulations.

       

      Section
        4.04           Certain
        Matters Relating to the Determination of LIBOR.
        LIBOR
        shall be calculated by the Securities Administrator in accordance with the
        definition of LIBOR. Until all of the LIBOR Certificates are paid in full,
        the
        Securities Administrator will at all times retain at least four Reference
        Banks
        for the purpose of determining LIBOR with respect to each LIBOR Determination
        Date. The Securities Administrator initially shall designate the Reference
        Banks
        (after consultation with the Depositor). Each “Reference
        Bank”
shall
        be a leading bank engaged in transactions in Eurodollar deposits in the
        international Eurocurrency market, shall not control, be controlled by, or
        be
        under common control with, the Securities Administrator and shall have an
        established place of business in London. If any such Reference Bank should
        be
        unwilling or unable to act as such or if the Securities Administrator should
        terminate its appointment as Reference Bank, the Securities Administrator
        shall
        promptly appoint or cause to be appointed another Reference Bank (after
        consultation with the Depositor). The Securities Administrator shall have
        no
        liability or responsibility to any Person for (i) the selection of any
        Reference Bank for purposes of determining LIBOR or (ii) any inability to
        retain at least four Reference Banks which is caused by circumstances beyond
        its
        reasonable control.

       

      The
        Interest Rate for each Class of LIBOR Certificates for each Interest
        Accrual Period shall be determined by the Securities Administrator on each
        LIBOR
        Determination Date so long as the LIBOR Certificates are outstanding on the
        basis of LIBOR and the respective formulae appearing in footnotes corresponding
        to the LIBOR Certificates in the table relating to the Certificates in the
        Preliminary Statement. The Securities Administrator shall not have any liability
        or responsibility to any Person for its inability, following a good-faith
        reasonable effort, to obtain quotations from the Reference Banks or to determine
        the arithmetic mean referred to in the definition of LIBOR, all as provided
        for
        in this Section 4.04 and the definition of LIBOR. The establishment of
        LIBOR and each Interest Rate for the LIBOR Certificates by the Securities
        Administrator shall (in the absence of manifest error) be final, conclusive
        and
        binding upon each Holder of a Certificate and the Trustee.

      
        
          
          

        

        
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      Section
        4.05           Allocation
        of Applied Realized Loss Amounts.
        Any
        Applied Realized Loss Amounts shall be allocated by the Securities Administrator
        to the most junior Class of Class M Certificates then outstanding in
        reduction of the Class Certificate Balance thereof.

       

      Section
        4.06           Supplemental
        Interest Trust. (a)
        A
        separate trust is hereby established (the “Supplemental
        Interest Trust”),
        the
        corpus of which shall be held by the securities administrator of the
        Supplemental Interest Trust for the benefit of the Class X Certificateholders.
        The Securities Administrator is hereby appointed trustee of the Supplemental
        Interest Trust. The Securities Administrator is also hereby appointed securities
        administrator of the Supplemental Interest Trust and, in such capacity, shall
        act on behalf of the trustee of the Supplemental Interest Trust. The securities
        administrator of the Supplemental Interest Trust shall establish an account
        (the
“Supplemental Interest Trust Account”) consisting of two sub-accounts (the
“Swap
        Account”
and
        the
“Cap
        Account,”
        respectively), into each of which the Depositor shall deposit $500 on the
        Closing Date. The Supplemental Interest Trust Account shall be an Eligible
        Account, and funds on deposit therein shall be held separate and apart from,
        and
        shall not be commingled with, any other monies, including, without limitation,
        other monies of the Securities Administrator held pursuant to this Agreement.
        

       

      (b)           The
        securities administrator of the Supplemental Interest Trust shall deposit
        into
        the Swap Account any Net Derivative Payment required pursuant to Sections
        4.02(a)(i)(A), 4.02(a)(ii)(A)(a) and 4.02(a)(ii)(B)(a), any Swap Termination
        Payment required pursuant to Sections 4.02(a)(i)(A), 4.02(a)(ii)(A)(a),
        4.02(a)(ii)(B)(a) and 4.02(a)(iii)(G), and any amounts received from the
        Swap
        Counterparty under the Swap Agreement, and shall distribute from the
        Supplemental Interest Trust Account any Net Derivative Payment required pursuant
        to Section 4.02(e)(i) or any Swap Termination Payment required pursuant to
        Sections 4.02(e)(ii) or 4.02(e)(x), as applicable.

       

      (c)           The
        securities administrator of the Supplemental Interest Trust shall deposit
        into
        the Cap Account any amounts received from the Cap Counterparty under the
        Cap
        Agreement.

       

      (d)           Funds
        in the Swap Account shall be invested in Permitted Investments constituting
        time
        deposits under clause (ii) of the definition thereof. Any earnings on such
        amounts shall be distributed on each Distribution Date pursuant to Section
        4.02(e). The Class X Certificates shall evidence ownership of the Swap Account
        for federal income tax purposes and the Holder thereof shall direct the
        securities administrator of the Supplemental Interest Trust, in writing,
        as to
        investment of amounts on deposit therein. The Sponsor shall be liable for
        any
        losses incurred on such investments. In the absence of written instructions
        from
        the Class X Certificateholders as to investment of funds on deposit in the
        Swap
        Account, such funds shall be invested in the Wells Fargo Advantage Prime
        Investment Money Market Fund or a comparable investment vehicle. Any amounts
        on
        deposit in the Swap Account in excess of the Swap Amount on any Distribution
        Date shall be held for distribution pursuant to Section 4.02(e) on the following
        Distribution Date.

      
        
          
          

        

        
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      (e)           Funds
        in the Cap Account shall be invested in Permitted Investments constituting
        time
        deposits under clause (ii) of the definition thereof. Any earnings on such
        amounts shall be distributed on each Distribution Date pursuant to Section
        4.02(e). The Class X Certificates shall evidence ownership of the Cap Account
        for federal income tax purposes and the Holder thereof shall direct the
        securities administrator of the Supplemental Interest Trust, in writing,
        as to
        investment of amounts on deposit therein. The Sponsor shall be liable for
        any
        losses incurred on such investments. In the absence of written instructions
        from
        the Class X Certificateholders as to investment of funds on deposit in the
        Cap
        Account, such funds shall be invested in the Wells Fargo Advantage Prime
        Investment Money Market Fund or a comparable investment vehicle. Any amounts
        on
        deposit in the Cap Account in excess of the Cap Amount on any Distribution
        Date
        shall be held for distribution pursuant to Section 4.02(e) on the following
        Distribution Date.

       

      (f)           Upon
        termination of the Trust Fund, any amounts remaining in the Swap Account
        or the
        Cap Account shall be distributed pursuant to the priorities set forth in
        Section
        4.02(e).

       

      (g)           It
        is the intention of the parties hereto that, for federal and state income
        and
        state and local franchise tax purposes, the Supplemental Interest Trust be
        disregarded as an entity separate from the holder of the Class X Certificates
        unless and until the date when either (i) there is more than one Class X
        Certificateholder or (ii) any Class of Certificates in addition to the Class
        X
        Certificates is recharacterized as an equity interest in the Supplemental
        Interest Trust for federal income tax purposes. Neither the Securities
        Administrator nor the Trustee shall be responsible for any entity level tax
        reporting for the Supplemental Interest Trust.

       

      (h)           Any
        obligation of the securities administrator of the Supplemental Interest Trust
        under the Swap Agreement or Cap Agreement shall be deemed to be an obligation
        of
        the Supplemental Interest Trust.

       

      Section
        4.07           Rights
        of the Swap Counterparty. 
        The Swap
        Counterparty 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
        its
        rights under this Agreement, which rights include but are not limited to
        the
        obligation of the securities administrator of the Supplemental Interest Trust
        (A) to deposit any Net Derivative Payment required pursuant to Sections
        4.02(a)(i)(A), 4.02(a)(ii)(A)(a) and 4.02(a)(ii)(B)(a), and any Swap Termination
        Payment required pursuant to Sections 4.02(a)(i)(A), 4.02(a)(ii)(A)(a),
        4.02(a)(ii)(B)(a) and 4.02(a)(iii)(G), into the Supplemental Interest Trust
        Account (B) to pay any Net Derivative Payment required pursuant to Section
        4.02(e)(i) or Swap Termination Payment required pursuant to Sections 4.02(e)(ii)
        or Section 4.02(e)(x), as applicable, to the Swap Counterparty and (C) to
        establish and maintain the Swap Account, to make such deposits thereto,
        investments therein and distributions therefrom as are required pursuant
        to
        Section 4.06. For the protection and enforcement of the provisions of this
        Section the Swap Counterparty shall be entitled to such relief as can be
        given
        either at law or in equity.

      
        
          
          

        

        
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      Section
        4.08           Termination
        Receipts.
        (a)(i)
        In the event of an “Early Termination Event” as defined under the Swap
        Agreement, (a) any Swap Termination Payment made by the Swap Counterparty
        to the
        Swap Account and paid pursuant to Section 4.02(e)(viii) (“Swap
        Termination Receipts”)
        will
        be deposited in a segregated non-interest bearing account which shall be
        an
        Eligible Account established by the Securities Administrator (the “Swap
        Termination Receipts Account”)
        and
        (b) any amounts received from a replacement swap counterparty (“Swap
        Replacement Receipts”)
        will
        be deposited in a segregated non-interest bearing account which shall be
        an
        Eligible Account established by the Securities Administrator (the “Swap
        Replacement Receipts Account”).
        The
        Securities Administrator shall invest, or cause to be invested, funds held
        in
        the Swap Termination Receipts Account and the Swap Replacement Receipts Account
        in time deposits of the Securities Administrator as permitted pursuant to
        clause
        (ii) of the definition of Permitted Investments or as otherwise directed
        in
        writing by a majority of the Certificateholders. All such Permitted Investments
        must be payable on demand or mature on a Distribution Date or such other
        date as
        directed by the Certificateholders. All such Eligible Investments will be
        made
        in the name of the Trustee of the Supplemental Interest Trust (in its capacity
        as such) or its nominee. All income and gain realized from any such investment
        shall be deposited in the Termination Receipts Account or the Replacement
        Receipts Account, as applicable, and all losses, if any, shall be borne by
        the
        related account. 

       

      (ii)           Unless
        otherwise permitted by the Rating Agencies as evidenced in a written
        confirmation, the Depositor shall arrange for replacement swap agreement(s)
        and
        the Securities Administrator shall promptly, with the assistance and cooperation
        of the Depositor, use amounts on deposit in the Swap Termination Receipts
        Account, if necessary, to enter into replacement swap agreement(s) which
        shall
        be executed and delivered by the Securities Administrator on behalf of the
        Supplemental Interest Trust upon receipt of written confirmation from each
        Rating Agency that such replacement swap agreement(s) 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. 

       

      Amounts
        on deposit in the Swap Replacement Receipts Account shall be held for the
        benefit of the related Swap Counterparty and paid to such Swap Counterparty
        if
        the Supplemental Interest Trust is required to make a payment to such Swap
        Counterparty following an event of default or termination event with respect
        to
        the Supplemental Interest Trust under the related Swap Agreement. Any amounts
        not so applied shall, following the termination or expiration of such Swap
        Agreement, be paid to the Class X Certificates.

       

      (b)           (i)
        In the event of an “Early Termination Event” as defined under the Cap Agreement,
        (a) any Cap Termination Payment made by the Cap Counterparty to the Cap Account
        and paid pursuant to Section 4.02(e)(viii) (“Cap Termination Receipts”) shall be
        deposited in a segregated non-interest bearing account which shall be an
        Eligible Account established by the Securities Administrator (the “Cap
        Termination Receipts Account”) and (b) any amounts received from a replacement
        cap counterparty (“Cap Replacement Receipts”) will be deposited in a segregated
        non-interest bearing account which shall be an Eligible Account established
        by
        the Securities Administrator (the “Cap Replacement Receipts Account”). The
        Securities Administrator shall invest, or cause to be invested, funds held
        in
        the Cap Termination Receipts Account in time deposits of the Securities
        Administrator as permitted by clause (ii) of the definition of Permitted
        Investments or as otherwise directed in writing by a majority of the
        Certificateholders. All such Permitted Investments must be payable on demand
        or
        mature on a Cap Payment Date, a Distribution Date or such other date as directed
        by the Certificateholders. All such Eligible Investments shall be made in
        the
        name of the Trustee as trustee of the Supplemental Interest Trust (in its
        capacity as such) or its nominee. All income and gain realized from any such
        investment shall be deposited in the Cap Termination Receipts Account and
        all
        losses, if any, shall be borne by such account. 

      
        
          
          

        

        
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      (ii)           Unless
        otherwise permitted by the Rating Agencies as evidenced in a written
        confirmation, the Depositor shall arrange for one or more replacement interest
        rate cap agreements and the Securities Administrator shall promptly, with
        the
        assistance and cooperation of the Depositor, use amounts on deposit in the
        Cap
        Termination Receipts Account, if necessary, to enter into any such replacement
        interest rate cap agreement which shall be executed and delivered by Wells
        Fargo
        as securities administrator on behalf of the Supplemental Interest Trust
        upon
        receipt of written confirmation from each Rating Agency that any such
        replacement interest rate cap agreement 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

       

      ARTICLE
        V

       

      THE
        CERTIFICATES

       

      Section
        5.01           The
        Certificates.
        The
        Certificates shall be substantially in the forms attached hereto as exhibits.
        The Certificates shall be issuable in registered form, in the minimum
        denominations, integral multiples in excess thereof (except that one Certificate
        in each Class may be issued in a different amount) and aggregate
        denominations per Class set forth in the Preliminary
        Statement.

       

      The
        Depositor hereby directs the Securities Administrator to register the
        Class X, Class P and Class X Certificates in the name of HSBC
        Securities (USA) Inc. or its designee. On a date as to which the Depositor
        notifies the Securities Administrator, the Securities Administrator shall
        transfer the Class X and Class P Certificates in the name of the NIM
        Trustee, or such other name or names as the Depositor shall request, and
        to
        deliver the Class X and Class P Certificates to the NIM Trustee or to
        such other Person or Persons as the Depositor shall request.

       

      Subject
        to Section 11.02 respecting the final distribution on the Certificates, on
        each Distribution Date the Securities Administrator shall make distributions
        to
        each Certificateholder of record on the preceding Record Date either (x) by
        wire transfer in immediately available funds to the account of such holder
        at a
        bank or other entity having appropriate facilities therefor, if such Holder
        has
        so notified the Securities Administrator at least five Business Days prior
        to
        the related Record Date or (y) by check mailed by first Class mail to such
        Certificateholder at the address of such holder appearing in the Certificate
        Register; provided,
        however,
        so long
        as such Certificate is a Book-Entry Certificate, all distributions on such
        Certificate will be made through the Depository or the Depository
        Participant.

      
        
          
          

        

        
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      The
        Certificates shall be executed by manual or facsimile signature on behalf
        of the
        Securities Administrator by an authorized officer. Certificates bearing the
        manual or facsimile signatures of individuals who were, at the time such
        signatures were affixed, authorized to sign on behalf of the Securities
        Administrator shall bind the Securities Administrator, notwithstanding that
        such
        individuals or any of them have ceased to be so authorized prior to the
        authentication and delivery of any 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 authenticated
        by the Securities Administrator by manual signature, and such authentication
        upon any Certificate shall be conclusive evidence, and the only evidence,
        that
        such Certificate has been duly executed and delivered hereunder. All
        Certificates shall be dated the date of their authentication. On the Closing
        Date, the Securities Administrator shall authenticate the Certificates to
        be
        issued at the direction of the Depositor, or any affiliate thereof.

       

      Section
        5.02           Certificate
        Register; Registration of Transfer and Exchange of Certificates.
        (a)  The Securities Administrator shall maintain, or cause to be
        maintained in accordance with the provisions of Section 5.06, a Certificate
        Register for the Trust Fund in which, subject to the provisions of subsections
        (b) and (c) below and to such reasonable regulations as it may prescribe,
        the Securities Administrator shall provide for the registration of Certificates
        and of transfers and exchanges of Certificates as herein provided. Upon
        surrender for registration of transfer of any Certificate, the Securities
        Administrator shall execute and deliver, in the name of the designated
        transferee or transferees, one or more new Certificates of the same
        Class and aggregate Percentage Interest.

       

      At
        the
        option of a Certificateholder, Certificates may be exchanged for other
        Certificates of the same Class in authorized denominations and evidencing
        the same aggregate Percentage Interest upon surrender of the Certificates
        to be
        exchanged at the office or agency of the Securities Administrator. Whenever
        any
        Certificates are so surrendered for exchange, the Securities Administrator
        shall
        execute, 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 be accompanied
        by a
        written instrument of transfer in form satisfactory to the Securities
        Administrator duly executed by the holder thereof or his attorney duly
        authorized in writing.

       

      No
        service charge to the Certificateholders shall be made for any registration
        of
        transfer or exchange of Certificates, but 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 may be required.

       

      All
        Certificates surrendered for registration of transfer or exchange shall be
        cancelled and subsequently destroyed by the Securities Administrator in
        accordance with the Securities Administrator’s customary
        procedures.

      
        
          
          

        

        
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      (b)           No
        transfer of a Private Certificate shall be made unless such transfer is made
        pursuant to an effective registration statement under the Securities Act
        and any
        applicable state securities laws or is exempt from the registration requirements
        under said Act and such state securities laws. In determining whether a transfer
        is being made pursuant to an effective registration statement, the Securities
        Administrator shall be entitled to rely solely upon a written notice to such
        effect from the Depositor. Except with respect to (i) the transfer of the
        Class X, Class P or Class R Certificates to the Depositor or an
        Affiliate of the Depositor, (ii) the transfer of the Class X or
        Class P Certificates to the NIM Issuer or the NIM Trustee, or (iii) a
        transfer of the Class X or Class P Certificates from the NIM Issuer or
        the NIM Trustee to the Depositor or an Affiliate of the Depositor, in the
        event
        that a transfer of a Private Certificate which is a Physical Certificate
        is to
        be made in reliance upon an exemption from the Securities Act and such laws,
        in
        order to assure compliance with the Securities Act and such laws, the
        Certificateholder desiring to effect such transfer shall certify to the
        Securities Administrator in writing the facts surrounding the transfer in
        substantially the form set forth in Exhibit H (the “Transferor
        Certificate”)
        and
        either (i) there shall be delivered to the Securities Administrator a
        letter in substantially the form of Exhibit I-A (the “Rule 144A
        Investment Letter”)
        or
        Exhibit I-B (the “Regulation
        S Investment Letter”)
        or
        (ii) there shall be delivered to the Securities Administrator at the
        expense of the transferor an Opinion of Counsel stating that such transfer
        may
        be made without registration under the Securities Act. In the event that
        a
        transfer of a Private Certificate which is a Book-Entry Certificate is to
        be
        made in reliance upon an exemption from the Securities Act and such laws,
        in
        order to assure compliance with the Securities Act and such laws, the
        Certificateholder desiring to effect such transfer will be deemed to have
        made
        as of the transfer date each of the certifications set forth in the Transferor
        Certificate in respect of such Certificate and the transferee will be deemed
        to
        have made as of the transfer date each of the certifications set forth in
        the
        Rule 144A Investment Letter or Regulation S Investment Letter, as
        applicable, in respect of such Certificate, in each case as if such Certificate
        were evidenced by a Physical Certificate. As directed by the Depositor, the
        Securities Administrator shall provide to any Holder of a Private Certificate
        and any prospective transferee designated by any such Holder, information
        regarding the related Certificates and the Mortgage Loans and such other
        information as shall be necessary to satisfy the condition to eligibility
        set
        forth in Rule 144A(d)(4) for transfer of any such Certificate without
        registration thereof under the Securities Act pursuant to the registration
        exemption provided by Rule 144A. The Depositor, the Master Servicer, the
        Servicer and the Trustee shall cooperate with the Securities Administrator
        in
        providing the Rule 144A information referenced in the preceding sentence,
        including providing to the Securities Administrator such information regarding
        the Certificates, the Mortgage Loans and other matters regarding the Trust
        Fund
        as the Securities Administrator shall reasonably determine to meet its
        obligation under the preceding sentence. Each Holder of a Private Certificate
        desiring to effect such transfer shall, and does hereby agree to, indemnify
        the
        Securities Administrator, the Trustee, the Servicer, the Master Servicer
        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.

      
        
          
          

        

        
          -101-

          
            

          

        

        
          
          

        

      

       

      Except
        with respect to (i) the transfer of the Class X, Class P or
        Class R Certificates to the Depositor or an Affiliate of the Depositor,
        (ii) the transfer of the Class X or Class P Certificates to the
        NIM Issuer or the NIM Trustee, or (iii) a transfer of the Class X or
        Class P Certificates from the NIM Issuer or the NIM Trustee to the
        Depositor or an Affiliate of the Depositor, no transfer of an ERISA-Restricted
        Certificate shall be made unless the Securities Administrator shall have
        received either (i) a representation from the transferee of such
        Certificate acceptable to and in form and substance satisfactory to the
        Securities Administrator (in the event such Certificate is a Private Certificate
        or a Residual Certificate, such requirement is satisfied only by the Securities
        Administrator’s receipt of a representation letter from the transferee
        substantially in the form of Exhibit I-A or Exhibit I-B), to the effect
        that such transferee is not an employee benefit plan or arrangement subject
        to
        Section 406 of ERISA, a plan subject to Section 4975 of the Code or a
        plan subject to any Federal, state or local law (“Similar
        Law”)
        materially similar to the foregoing provisions of ERISA or the Code, nor
        a
        person acting on behalf of any such plan or arrangement nor using the assets
        of
        any such plan or arrangement to effect such transfer, or (ii) in the case
        of an ERISA-Restricted Certificate (other than a Residual Certificate, Class
        X
        Certificate or a Class P Certificate) that has been the subject of an
        ERISA-Qualifying Underwriting, and the purchaser is an insurance company,
        a
        representation that the purchaser is an insurance company that is purchasing
        such Certificates with funds contained in an “insurance company general account”
(as such term is defined in Section V(e) of Prohibited Transaction
        Class Exemption (“PTCE”)
        95-60)
        and that the purchase and holding of such Certificates are covered under
        Sections I and III of PTCE 95-60 or (iii) in the case of any such
        ERISA-Restricted Certificate other than a Residual Certificate, Class X
        Certificate or Class P Certificate presented for registration in the name
        of an employee benefit plan subject to Title I of ERISA, a plan or
        arrangement subject to Section 4975 of the Code (or comparable provisions
        of any subsequent enactments), or a plan subject to Similar Law, or a trustee
        of
        any such plan or any other person acting on behalf of any such plan or
        arrangement or using such plan’s or arrangement’s assets, an Opinion of Counsel
        satisfactory to the Securities Administrator, which Opinion of Counsel shall
        not
        be an expense of the Depositor, the Trustee, the Master Servicer, the Servicer,
        the Securities Administrator or the Trust Fund, addressed to the Securities
        Administrator, to the effect that the purchase or holding of such
        ERISA-Restricted Certificate will not constitute or result in a non-exempt
        prohibited transaction within the meaning of ERISA, Section 4975 of the
        Code or any Similar Law and will not subject the Trustee, the Depositor,
        the
        Securities Administrator, the Master Servicer or the Servicer to any obligation
        in addition to those expressly undertaken in this Agreement or to any liability.
        For purposes of the preceding sentence, with respect to an ERISA-Restricted
        Certificate that is not a Physical Certificate or a Residual Certificate,
        in the
        event the representation letter referred to in the preceding sentence is
        not
        furnished, such representation shall be deemed to have been made to the
        Securities Administrator by the transferee’s (including an initial acquirer’s)
        acceptance of the ERISA-Restricted Certificates. Notwithstanding anything
        else
        to the contrary herein, (a) any purported transfer of an ERISA-Restricted
        Certificate that is a Physical Certificate, other than a Class P
        Certificate, Class X Certificate or Residual Certificate, to or on behalf
        of an
        employee benefit plan subject to ERISA, the Code or Similar Law without the
        delivery to the Securities Administrator of a representation letter or an
        Opinion of Counsel satisfactory to the Securities Administrator as described
        above shall be void and of no effect and (b) any purported transfer of a
        Class P Certificate, Class X Certificate or Residual Certificate to a
        transferee that does not make the representation in clause (i) above
        shall be void and of no effect.

       

      None
        of
        the Class R, Class X or Class P Certificates may be sold to any
        employee benefit plan subject to Title I of ERISA, any plan subject to
        Section 4975 of the Code, or any plan subject to any Similar Law or any
        person investing on behalf or with plan assets of such plan.

      
        
          
          

        

        
          -102-

          
            

          

        

        
          
          

        

      

       

      No
        transfer of an ERISA-Restricted Derivative Certificate prior to the termination
        of the Cap Agreement and the Swap Agreement shall be made unless the Securities
        Administrator shall have received a representation letter from the transferee
        of
        such Certificate, substantially in the form set forth in Exhibit I-A or Exhibit
        I-B, to the effect that either (i) such transferee is neither an employee
        benefit plan or arrangement subject to Section 406 of ERISA, a plan subject
        to
        Section 4975 of the Code or a plan subject to Similar Law nor a Person acting
        on
        behalf of any such Plan or using the assets of any such Plan to effect such
        transfer or (ii) the acquisition and holding of the ERISA-Restricted Derivative
        Certificate are eligible for exemptive relief under the statutory exemption
        for
        nonfiduciary service providers under Section 408(b)(17) of ERISA and Section
        4975 of the Code, PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23
        or
        some other applicable exemption. Notwithstanding anything else to the contrary
        herein, any purported transfer of an ERISA-Restricted Derivative Certificate
        prior to the termination of the Cap Agreement and the Swap Agreement on behalf
        of such Plan without the delivery to the Securities Administrator of a
        representation letter as described above shall be void and of no effect.
        If the
        ERISA-Restricted Derivative Certificate is a Book-Entry Certificate, the
        transferee will be deemed to have made a representation as provided in clause
        (i) or (ii) of this paragraph, as applicable.

       

      If
        any
        ERISA-Restricted Derivative Certificate, or any interest therein, is acquired
        or
        held in violation of the provisions of the preceding paragraph, 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
        an ERISA-Restricted Derivative Certificate, or interest therein, was effected
        in
        violation of the provisions of the preceding paragraph shall indemnify to
        the
        extent permitted by law and hold harmless the Depositor, the Securities
        Administrator, the Trustee, the Servicer and the Master Servicer from and
        against any and all liabilities, claims, costs or expenses incurred by such
        parties as a result of such acquisition or holding.

       

      To
        the
        extent permitted under applicable law (including, but not limited to, ERISA),
        the Securities Administrator shall be under no liability to any Person for
        any
        registration of transfer of any ERISA-Restricted Certificate or ERISA-Restricted
        Derivative Certificate that is in fact not permitted by this
        Section 5.02(b) or for making any payments due on such Certificate to the
        Holder thereof or taking any other action with respect to such Holder under
        the
        provisions of this Agreement so long as, in the case of a Physical Certificate,
        the transfer was registered by the Securities Administrator in accordance
        with
        the foregoing requirements.

       

      (c)           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 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 Securities
        Administrator of any change or impending change in its status as a Permitted
        Transferee;

       

      (ii)           No
        Ownership Interest in a Residual Certificate may be registered on the Closing
        Date or thereafter transferred, and the Securities Administrator shall not
        register the Transfer of any Residual Certificate unless, in addition to
        the
        certificates required to be delivered to the Securities Administrator under
        subparagraph (b) above, the Securities Administrator shall have been
        furnished with an affidavit (a “Transfer
        Affidavit”)
        of the
        initial owner or the proposed transferee in the form attached hereto as
        Exhibit G;

      
        
          
          

        

        
          -103-

          
            

          

        

        
          
          

        

      

       

      (iii)           Each
        Person holding or acquiring any Ownership Interest in a Residual Certificate
        shall agree (A) to obtain a Transfer Affidavit from any other Person to
        whom such Person attempts to Transfer its Ownership Interest in a Residual
        Certificate, (B) to obtain a Transfer Affidavit from any Person for whom
        such Person is acting as nominee, trustee or agent in connection with any
        Transfer of a Residual Certificate and (C) not to Transfer its Ownership
        Interest in a Residual Certificate or to cause the Transfer of an Ownership
        Interest in a Residual Certificate to any other Person if it has actual
        knowledge that such Person is a Non-Permitted Transferee;

       

      (iv)           Any
        attempted or purported Transfer of any Ownership Interest in a Residual
        Certificate in violation of the provisions of this Section 5.02(c) shall be
        absolutely null and void and shall vest no rights in the purported Transferee.
        If any purported transferee shall become a Holder of a Residual Certificate
        in
        violation of the provisions of this Section 5.02(c), then the last
        preceding Permitted Transferee shall be restored to all rights as Holder
        thereof
        retroactive to the date of registration of Transfer of such Residual
        Certificate. The Securities Administrator shall be under no liability to
        any
        Person for any registration of Transfer of a Residual Certificate that is
        in
        fact not permitted by Section 5.02(a) and this Section 5.02(c) or for
        making any payments due on such 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 Transfer was registered after receipt of the related Transfer
        Affidavit, Transferor Certificate and the Rule 144A Letter. The Securities
        Administrator shall be entitled but not obligated to recover from any Holder
        of
        a Residual Certificate that was in fact a Non-Permitted Transferee at the
        time
        it became a Holder or, at such subsequent time as it became a Non-Permitted
        Transferee, all payments made on such Residual Certificate at and after either
        such time. Any such payments so recovered by the Securities Administrator
        shall
        be paid and delivered by the Securities Administrator to the last preceding
        Permitted Transferee of such Certificate; and

       

      (v)           The
        Depositor shall use its best efforts to make available, upon receipt of written
        request from the Securities Administrator, all information necessary to compute
        any tax imposed under Section 860E(e) of the Code as a result of a Transfer
        of an Ownership Interest in a Residual Certificate to any Holder who is a
        Non-Permitted Transferee.

       

      The
        restrictions on Transfers of a Residual Certificate set forth in this
        Section 5.02(c) shall cease to apply (and the applicable portions of the
        legend on a Residual Certificate may be deleted) with respect to Transfers
        occurring after delivery to the Securities Administrator of an Opinion of
        Counsel, which Opinion of Counsel shall not be an expense of the Trust Fund,
        the
        Trustee, the Securities Administrator or the Servicer, to the effect that
        the
        elimination of such restrictions will not cause any REMIC created hereunder
        to
        fail to qualify as a REMIC at any time that the Certificates are outstanding
        or
        result in the imposition of any tax on the Trust Fund, a Certificateholder
        or
        another Person. Each Person holding or acquiring any Ownership Interest in
        a
        Residual Certificate hereby consents to any amendment of this Agreement which,
        based on an Opinion of Counsel furnished to the Securities Administrator,
        is
        reasonably necessary (a) to ensure that the record ownership of, or any
        beneficial interest in, a Residual Certificate is not transferred, directly
        or
        indirectly, to a Person that is a Non-Permitted Transferee and (b) to
        provide for a means to compel the Transfer of a Residual Certificate which
        is
        held by a Person that is a Non-Permitted Transferee to a Holder that is a
        Permitted Transferee.

      
        
          
          

        

        
          -104-

          
            

          

        

        
          
          

        

      

       

      (d)           The
        preparation and delivery of all certificates and opinions referred to above
        in
        this Section 5.02 in connection with transfer shall be at the expense of
        the parties to such transfers.

       

      (e)           Except
        as provided 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 the Certificates may not be transferred by the
        Securities Administrator 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 Book-Entry Certificates;
        (iii) ownership and transfers of registration of the Book-Entry
        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 Securities Administrator shall deal with the Depository, Depository
        Participants and indirect participating firms as representatives of the
        Certificate Owners of the Book-Entry Certificates for purposes of exercising
        the
        rights of holders under this Agreement, and requests and directions for and
        votes of such representatives shall not be deemed to be inconsistent if they
        are
        made with respect to different Certificate Owners; and (vi) the Securities
        Administrator 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.

       

      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 Owner. Each Depository Participant
        shall only transfer 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.

       

      If
        (x) (i) the Depository or the Depositor advises the Securities
        Administrator in writing that the Depository is no longer willing or able
        to
        properly discharge its responsibilities as Depository, and (ii) the
        Securities Administrator or the Depositor is unable to locate a qualified
        successor, or (y) the Depositor notifies the Depository (and the Securities
        Administrator consents) of its intent to terminate the book-entry system
        through
        the Depository and, upon receipt of notice of such intent from the Depository,
        the Depository Participants holding beneficial interests in the Book-Entry
        Certificates agree to initiate such termination, the Securities Administrator
        shall notify all Certificate Owners, through the Depository, of the occurrence
        of any such event and of the availability of definitive, fully registered
        Certificates (the “Definitive
        Certificates”)
        to
        Certificate Owners requesting the same. Upon surrender to the Securities
        Administrator of the related Class of Certificates by the Depository,
        accompanied by the instructions from the Depository for registration, the
        Securities Administrator shall issue the Definitive Certificates. None of
        the
        Servicer, the Depositor or the Securities Administrator shall be liable for
        any
        delay in delivery of such instruction and each may conclusively rely on,
        and
        shall be protected in relying on, such instructions. The Depositor shall
        provide
        the Securities Administrator with an adequate inventory of Certificates to
        facilitate the issuance and transfer of Definitive Certificates. 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 Securities Administrator, to the extent applicable with
        respect
        to such Definitive Certificates and the Securities Administrator shall recognize
        the Holders of the Definitive Certificates as Certificateholders hereunder;
        provided,
        that
        the Securities Administrator shall not by virtue of its assumption of such
        obligations become liable to any party for any act or failure to act of the
        Depository.

      
        
          
          

        

        
          -105-

          
            

          

        

        
          
          

        

      

       

      (f)           Each
        Private Certificate presented or surrendered for registration of transfer
        or
        exchange shall be accompanied by a written instrument of transfer and
        accompanied by IRS Form W-8ECI, W-8BEN, W-8IMY (and all appropriate attachments)
        or W-9 in form satisfactory to the Securities Administrator, duly executed
        by
        the Certificateholder or his attorney duly authorized in writing. Each
        Certificate presented or surrendered for registration of transfer or exchange
        shall be canceled and subsequently disposed of by the Securities Administrator
        in accordance with its customary practice. No service charge shall be made
        for
        any registration of transfer or exchange of Private Certificates, but the
        Securities Administrator 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 Private Certificates.

       

      Section
        5.03           Mutilated,
        Destroyed, Lost or Stolen Certificates.
        If
        (a) any mutilated Certificate is surrendered to the Securities
        Administrator, or the Securities Administrator receives evidence to its
        satisfaction of the destruction, loss or theft of any Certificate and
        (b) there is delivered to the Depositor, the Securities Administrator and
        the Trustee such security or indemnity as may be required by them to hold
        each
        of them harmless, then, in the absence of notice to the Securities Administrator
        that such Certificate has been acquired by a bona fide purchaser, the Securities
        Administrator shall execute, authenticate and deliver, in exchange for or
        in
        lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
        Certificate of like Class, tenor and Percentage Interest. In connection with
        the
        issuance of any new Certificate under this Section 5.03, the Securities
        Administrator 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 Securities Administrator)
        connected therewith. Any replacement Certificate issued pursuant to this
        Section 5.03 shall constitute complete and indefeasible evidence of
        ownership, 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
        Trustee, the Depositor, the Securities Administrator and any agent of the
        Trustee, the Depositor or the Securities Administrator may treat the Person
        in
        whose name any Certificate is registered as the owner of such Certificate
        for
        the purpose of receiving distributions as provided in this Agreement and
        for all
        other purposes whatsoever, and neither the Trustee, the Depositor, the
        Securities Administrator nor any agent of the Trustee, the Depositor or the
        Securities Administrator shall be affected by any notice to the
        contrary.

      
        
          
          

        

        
          -106-

          
            

          

        

        
          
          

        

      

       

      Section
        5.05           Access
        to List of Certificateholders’ Names and Addresses.
        If
        three or more Certificateholders (a) request such information in writing
        from the Securities Administrator, (b) state that such Certificateholders
        desire to communicate with other Certificateholders with respect to their
        rights
        under this Agreement or under the Certificates and (c) provide a copy of
        the communication which such Certificateholders propose to transmit, or if
        the
        Depositor or the Servicer shall request such information in writing from
        the
        Securities Administrator, then the Securities Administrator shall, within
        ten
        Business Days after the receipt of such request, provide the Depositor, the
        Servicer or such Certificateholders at such recipients’ expense the most recent
        list of the Certificateholders of such Trust Fund held by the Securities
        Administrator, if any. The Depositor and every Certificateholder, by receiving
        and holding a Certificate, agree that the Securities Administrator shall
        not be
        held accountable by reason of the disclosure of any such information as to
        the
        list of the Certificateholders hereunder, regardless of the source from which
        such information was derived.

       

      Section
        5.06           Maintenance
        of Office or Agency.
        The
        Securities Administrator will maintain or cause to be maintained at its expense
        an office or offices or agency or agencies where Certificates may be surrendered
        for registration of transfer or exchange. The Securities Administrator initially
        designates its offices located at Sixth Street and Marquette Avenue,
        Minneapolis, Minnesota 55479. The Securities Administrator shall give prompt
        written notice to the Certificateholders of any change in such location of
        any
        such office or agency.

       

      ARTICLE
        VI

       

      THE
        DEPOSITOR AND THE SERVICER

       

      Section
        6.01           Respective
        Liabilities of the Depositor and the Servicer.
        The
        Depositor and the Servicer shall each be liable in accordance herewith only
        to
        the extent of the obligations specifically and respectively imposed upon
        and
        undertaken by them herein.

       

      Section
        6.02           Merger
        or Consolidation of the Depositor or the Servicer.
        (a) The Depositor and the Servicer will each keep in full effect its
        existence, rights and franchises as a corporation, under the laws of the
        United
        States or under the laws of one of the states thereof and will each obtain
        and
        preserve its qualification to do business as a foreign corporation in each
        jurisdiction in which such qualification is or shall be necessary to protect
        the
        validity and enforceability of this Agreement, or any of the Mortgage Loans
        and
        to perform its respective duties under this Agreement.

       

      (b)           The
        Servicer shall maintain a net worth of at least $30,000,000 (as determined
        in
        accordance with generally accepted accounting principles) and, to the extent
        that any licenses or permits are applicable to its operations shall maintain
        such licenses or permits as are required for it to do business or service
        residential mortgage loans in any jurisdictions in which the Mortgaged
        Properties are located.

       

      (c)           Any
        Person into which the Depositor or the Servicer may be merged or consolidated,
        or any Person resulting from any merger or consolidation to which the Depositor
        or the Servicer shall be a party, or any person succeeding to the business
        of
        the Depositor or the Servicer, shall be the successor of the Depositor or
        the
        Servicer, 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 or surviving Person to the Servicer shall make the covenant
        set
        forth in Section 6.02(a) and (b).

      
        
          
          

        

        
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      Section
        6.03           Limitation
        on Liability of the Depositor, the Servicer and Others. 
        Neither
        the Depositor, the Servicer, nor any of their respective directors, officers,
        employees or agents, shall be under any liability to the Certificateholders
        for
        any action taken or for refraining from the taking of any action in good
        faith
        pursuant to this Agreement, or for errors in judgment; provided,
        however,
        that
        this provision shall not protect the Depositor, the Servicer or any such
        Person
        against any breach of representations or warranties made by it herein or
        protect
        the Depositor, the Servicer or any such Person from any liability which would
        otherwise be imposed by reasons of willful misfeasance, bad faith or negligence
        (or gross negligence in the case of the Depositor) in the performance of
        duties
        or by reason of reckless disregard of obligations and duties hereunder. The
        Depositor, its Affiliates, the Servicer and any of their respective directors,
        officers, employees or agents may rely in good faith on any document of any
        kind
        prima facie properly executed and submitted by any Person respecting any
        matters
        arising hereunder. The Depositor, its Affiliates, the Servicer and any of
        their
        respective directors, officers, employees or agents shall be indemnified
        by the
        Trust Fund and held harmless against any loss, liability or expense incurred
        in
        connection with any audit, controversy or judicial proceeding relating to
        a
        governmental taxing authority or any legal action relating to this Agreement
        or
        the Certificates other than any loss, liability or expense related to any
        specific Mortgage Loan or Mortgage Loans (except as any such loss, liability
        or
        expense shall be otherwise reimbursable pursuant to this Agreement and any
        loss,
        liability or expense incurred by reason of willful misfeasance, bad faith
        or
        negligence (or gross negligence in the case of the Depositor) in the performance
        of duties hereunder or by reason of reckless disregard of obligations and
        duties
        hereunder. Neither the Depositor nor the Servicer shall be under any obligation
        to appear in, prosecute or defend any legal action that is not incidental
        to its
        respective duties hereunder and which in its opinion may involve it in any
        expense or liability; provided,
        however,
        that
        the Depositor may in its discretion undertake any such action (or direct
        the
        Trustee to undertake such actions pursuant to Section 2.03 for the benefit
        of the Certificateholders) that it may deem necessary or desirable in respect
        of
        this Agreement and the rights and duties of the parties hereto and interests
        of
        the Trustee and the Certificateholders hereunder. In such event, the legal
        expenses and costs of such action and any liability resulting therefrom shall
        be
        expenses, costs and liabilities of the Trust Fund, and the Depositor and
        the
        Servicer shall be entitled to be reimbursed therefor out of the Collection
        Account.

       

      Section
        6.04           Limitation
        on Resignation of the Servicer. 
        Subject
        to Section 7.01, the Servicer shall not assign this Agreement or resign
        from the obligations and duties hereby imposed on it except by mutual consent
        of
        the Servicer, the Depositor, the Master Servicer and the Securities
        Administrator with prior written notice to the Trustee or upon the determination
        that its duties hereunder are no longer permissible under applicable law
        and
        such incapacity cannot be cured by the Servicer. 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
        termination of the Servicer. Any such determination permitting the resignation
        of the Servicer shall be evidenced by an Opinion of Counsel to such effect
        delivered to the Depositor, the Securities Administrator and the Master Servicer
        which Opinion of Counsel shall be in form and substance acceptable to the
        Depositor, the Securities Administrator and the Master Servicer. No such
        resignation shall become effective until a successor shall have assumed the
        Servicer’s responsibilities and obligations hereunder. 

      
        
          
          

        

        
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      Section
        6.05           Additional
        Indemnification by the Servicer; Third Party Claims. 
        Notwithstanding the limitations set forth in Section 6.03, the Servicer shall
        indemnify the Depositor, the Master Servicer, the Securities Administrator,
        the
        Trustee, the Trust Fund and any Affiliate, director, officer, employee or
        agent
        of the Depositor and hold each of them harmless against any and all claims,
        losses, damages, penalties, fines, forfeitures, reasonable and necessary
        legal
        fees and related costs, judgments, and any other costs, fees and expenses
        that
        any of them may sustain in any way related to any breach by the Servicer,
        of
        (i) any of its representations and warranties referred to in
        Section 2.03(a), (ii) any error in any tax or information return
        prepared by the Servicer, (iii) the failure of the Servicer to perform its
        duties and service the Mortgage Loans in compliance with the terms of this
        Agreement or (iv) any
        failure by the
        Servicer,
        any Subservicer or any Subcontractor to
        deliver any information, report, certification, accountants’ letter or other
        material when and as required under this Agreement, including any report
        under
        Sections 3.22, 3.23, 3.24 and 3.30 or any failure by the Servicer to identify
        pursuant to Section 3.02(c) any Subcontractor that is a Servicing Function
        Participant. The Servicer immediately shall notify the Depositor, the Master
        Servicer, the Securities Administrator and the Trustee if a claim is made
        by a
        third party with respect to this Agreement or the Mortgage Loans, assume
        (with
        the prior written consent of the Depositor and the Securities Administrator)
        the
        defense of any such claim and pay all expenses in connection therewith,
        including counsel fees, and promptly pay, discharge and satisfy any judgment
        or
        decree which may be entered against it or the Depositor, the Securities
        Administrator or the Trustee in respect of such claim. In
        the
        case of any failure of performance described in clause (iv) of this Section
        6.05, the Servicer shall promptly reimburse the Trustee, the Master Servicer,
        the Securities Administrator or the Depositor, as applicable, and each Person
        responsible for the preparation, execution or filing of any report required
        to
        be filed with the Commission with respect to the transaction relating to
        this
        Agreement, or for execution of a certification pursuant to Rule 13a-14(d)
        or
        Rule 15d-14(d) under the Exchange Act with respect to this transaction, for
        all
        costs reasonably incurred by each such party in order to obtain the information,
        report, certification, accountants’ letter or other material not delivered as
        required by the Servicer, any
        Subservicer or any Subcontractor.
        This
        indemnity shall survive the termination of this Agreement and the earlier
        resignation or removal of the Servicer and the parties indemnified by the
        Servicer under this paragraph.

       

      Section
        6.06           Compliance
        with Regulation AB; Cooperation of Parties.
        Notwithstanding any other provision of this Agreement, the Servicer acknowledges
        and agrees that the purpose of Sections 3.02, 3.22, 3.23, 3.24, 3.30, 6.05
        and
        7.01(i) and Exhibit S of this Agreement is to facilitate compliance by the
        Securities Administrator, the Master Servicer and the Depositor with the
        provisions of Regulation AB. Therefore, the Servicer agrees that (a) the
        obligations of the Servicer hereunder shall be interpreted in such a manner
        as
        to accomplish that purpose, (b) such obligations may change over time due
        to
        interpretive advice or guidance of the Commission, convention or consensus
        among
        active participants in the asset-backed securities markets, advice of counsel,
        or otherwise in respect of the requirements of Regulation AB, (c) the Servicer
        shall agree to enter into such amendments to this Agreement as may be necessary,
        in the judgment of the Servicer, the Depositor, the Master Servicer and the
        Securities Administrator and their respective counsel, to comply with such
        interpretive advice or guidance, convention, consensus, advice of counsel,
        or
        otherwise, (d) the Servicer shall otherwise comply with requests made by
        the
        Trustee, the Securities Administrator, the Master Servicer or the Depositor,
        and
        mutually agreed upon by the Servicer, for delivery of additional or different
        information reasonably available to the Servicer as such parties may determine
        in good faith is necessary to comply with the provisions of Regulation AB
        and
        (e) the Servicer
        shall (i) agree to such modifications and enter into such amendments to this
        Agreement as may be necessary, in the judgment of the Depositor, the Master
        Servicer and
        the
        Securities Administrator and
        their respective counsel
        and
        mutually agreed upon by the Servicer, to
        comply with any such clarification, interpretive guidance, convention or
        consensus and (ii) promptly
        upon request provide to the Depositor or the Securities Administrator for
        inclusion in any periodic report required to be filed under the Securities
        Exchange Act, such items of information reasonably available to the Servicer
        regarding this Agreement and matters related to the Servicer (collectively,
        the
“Servicer Information”), provided
        that
        such
        information shall be required to be provided by the Servicer only to the
        extent
        that such shall be determined by the Depositor or the Master Servicer in
        its
        sole discretion and its counsel to be necessary or advisable to comply with
        any
        Commission and industry guidance and convention.

      
        
          
          

        

        
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      ARTICLE
        VII

       

      DEFAULT

       

      Section
        7.01           Events
        of Default.
        “Event
        of Default”,
        wherever used herein, means any one of the following events:

       

      (a)           any
        failure by the Servicer to remit to the Master Servicer any payment required
        to
        be made under the terms of this Agreement which continues unremedied for
        a
        period of two Business Days 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 by the Master Servicer, or to the Servicer,
        the
        Depositor, the Master Servicer, the Securities Administrator and the Trustee
        by
        Certificateholders entitled to at least 25.00% of the Voting Rights in the
        Certificates; or

       

      (b)           subject
        to clause (i) of this Section 7.01, the 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 set forth in this Agreement which
        continues unremedied for a period of sixty days (except that such
        number of days shall be fifteen in the case of a failure to pay any premium
        for
        any insurance policy required to be maintained under this Agreement)
        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 or by the Master Servicer, or to the Servicer,
        the
        Depositor, the Master Servicer, the Securities Administrator and the Trustee
        by
        Certificateholders entitled to at least 25.00% of the Voting Rights in the
        Certificates and (ii) actual knowledge of such failure by a Servicing
        Officer of the Servicer; or

       

      (c)           a
        decree or order of a court or agency or supervisory authority having
        jurisdiction for the appointment of a conservator or receiver or liquidator
        in
        any insolvency, bankruptcy, 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 or unstayed for a period of sixty
        consecutive days; or

      
        
          
          

        

        
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      (d)           the
        Servicer shall consent to the appointment of a conservator or receiver or
        liquidator in any insolvency, bankruptcy, 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

       

      (e)           the
        Servicer shall admit in writing its inability generally to pay its debts
        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

       

      (f)           any
        failure of the Servicer to make any P&I Advance on any Remittance Date
        required to be made from its own funds pursuant to Section 4.01 which
        continues unremedied for one Business Day immediately following the Remittance
        Date; or

       

      (g)           a
        breach of any representation and warranty of the Servicer referred to in
        Section 2.03(a), which materially and adversely affects the interests of
        the Certificateholders and which continues unremedied for a period of
        thirty days after the date upon which written notice of such breach is
        given to the Servicer by the Master Servicer or by the Depositor, or to the
        Servicer, the Master Servicer, the Depositor, the Securities Administrator
        and
        the Trustee by Certificateholders entitled to at least 25.00% of the Voting
        Rights in the Certificates; or

       

      (h)           Fitch
        reduces its primary subprime servicer rating of the Servicer to “RPS3-“ or
        lower, Moody’s reduces its primary subprime servicer rating of the Servicer to
“SQ3” or lower, or Standard & Poor’s reduces its primary subprime servicer
        rating of the Servicer to “Below Average” or lower, and any such downgrade
        continues unremedied for a period of ninety days; or 

       

      (i)           any
        failure by the Servicer to duly perform, within the required time period,
        its
        obligations under Sections 3.02, 3.22, 3.23, 3.24, 3.29 or 8.12 or any other
        information, data or materials required to be provided hereunder, including
        any
        items required to be included in any Exchange Act report; or

       

      (j)           a
        breach of the representations and warranties of the
        Servicer set forth in Schedule II hereto, which materially and adversely
        affects
        the interests of the Certificateholders and which continues unremedied for
        a
        period of five days after the date upon which written notice of such breach
        is
        given to the Servicer by the Master Servicer (or if the Servicer and the
        Master
        Servicer are the same entity, by the Trustee) or by the Depositor, or to
        the
        Servicer,
        the Master Servicer, the Depositor, the Securities Administrator and the
        Trustee
        by Certificateholders entitled to at least 25.00% of the Voting Rights in
        the
        Certificates.
        

      
        
          
          

        

        
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      If
        an
        Event of Default described in clauses (a) through (j) of this
        Section 7.01 shall occur, then, and in each and every such case, so long as
        such Event of Default shall not have been remedied, the Master Servicer (or,
        if
        the Master Servicer and the Servicer are the same entity, the Trustee) may,
        or
        at the direction of a majority of the Voting Rights shall, by notice in writing
        to the Servicer related to such Event of Default (with a copy to each Rating
        Agency and the Derivative Counterparty), terminate all of the rights and
        obligations of the Servicer under this Agreement and in and to the Mortgage
        Loans and the proceeds thereof, other than its rights as a Certificateholder
        hereunder; provided,
        however,
        that
        the Master Servicer or the Trustee (as successor Master Servicer), as
        applicable, shall not be required to give written notice to the Servicer
        of the
        occurrence of an Event of Default described in clauses (b) through
        (j) of this Section 7.01 unless and until a Responsible Officer of the
        Master Servicer or the Trustee (as successor Master Servicer), as applicable,
        has actual knowledge of the occurrence of such an event; provided further,
        that
        the Depositor shall give written notice to the Servicer, Master Servicer
        and the
        Trustee of the occurrence of an Event of Default described in
        clause (h) of this Section 7.01 upon obtaining actual knowledge
        of the occurrence of such an event. In the event that a Responsible Officer
        of
        the Master Servicer or the Trustee (as successor Master Servicer), as
        applicable, has actual knowledge of the occurrence of an event of default
        described in clause (a) or (f) of this Section 7.01, the Master
        Servicer or the Trustee (as successor Master Servicer), as applicable, shall
        give written notice to the Servicer of the occurrence of such an event within
        one Business Day of the first day on which such Responsible Officer obtains
        actual knowledge of such occurrence. On and after receipt by the Servicer
        of
        such written notice, all authority and power of the Servicer hereunder, whether
        with respect to the Mortgage Loans or otherwise, shall pass to and be vested
        in
        the Master Servicer or the Trustee (as successor Master Servicer), as
        applicable,. Subject to Section 7.02, the Master Servicer or the Trustee
        (as successor Master Servicer), as applicable, 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 or assignment of the Mortgage Loans and related documents, or
        otherwise. Unless expressly provided in such written notice, no such termination
        shall affect any obligation of the Servicer to pay amounts owed pursuant
        to
        Article VIII. The Servicer agrees to cooperate with the Master Servicer or
        the Trustee, as applicable, in effecting the termination of the Servicer’s
        responsibilities and rights hereunder, including, without limitation, the
        transfer to the Master Servicer or the Trustee (as successor Master Servicer),
        as applicable, of all cash amounts which shall at the time be credited to
        the
        Collection Account, or thereafter be received with respect to the Mortgage
        Loans.

       

      Notwithstanding
        any termination of the activities of the Servicer hereunder, the Servicer
        shall
        be entitled to receive from the Trust Fund, prior to transfer of its servicing
        obligations hereunder, payment of all accrued and unpaid Servicing Fees and
        reimbursement for all outstanding P&I Advances and Servicing
        Advances.

       

      Section
        7.02           Master
        Servicer to Act; Appointment of Successor.
        On and
        after the time the Servicer receives a notice of termination pursuant to
        Section 3.25 or Section 7.01, the Master Servicer or the Trustee (as
        successor Master Servicer) , as applicable, shall, subject to and to the
        extent
        provided in Section 3.05, and subject to the rights of the Master Servicer
        or the Trustee(as successor Master Servicer) , as applicable, to appoint
        a
        successor servicer pursuant to this Section 7.02, be the successor 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 and applicable law, including the obligation
        to make P&I Advances and Servicing Advances pursuant to Section 3.25 or
        Section 7.01. 

      
        
          
          

        

        
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      It
        is
        understood and acknowledged by the parties hereto that there will be a period
        of
        transition before the transfer of servicing obligations is fully effective.
        Notwithstanding the foregoing, the Master Servicer or the Trustee (as successor
        Master Servicer), as applicable, will have a period (not to exceed 90 days)
        to complete the transfer of all servicing data and correct or manipulate
        such
        servicing data as may be required by the Master Servicer or the Trustee (as
        successor Master Servicer), as applicable, to correct any errors or
        insufficiencies in the servicing data or otherwise enable the Master Servicer
        or
        the Trustee (as successor Master Servicer), as applicable, to service the
        Mortgage Loans in accordance with Accepted Servicing Practices. As compensation
        therefor, the Master Servicer or the Trustee (as successor Master Servicer),
        as
        applicable, shall be entitled to all funds relating to the Mortgage Loans
        that
        the Servicer would have been entitled to charge to the Collection Account
        if the
        Servicer had continued to act hereunder including, if the Servicer was receiving
        the Servicing Fee, the Servicing Fee and the income on investments or gain
        related to the Collection Account which the Servicer would be entitled to
        receive. Notwithstanding the foregoing, if the Master Servicer or the Trustee
        (as successor Master Servicer) , as applicable, has become the successor
        to the
        Servicer in accordance with Section 7.01, the Master Servicer or the
        Trustee (as successor Master Servicer) , as applicable, may, if it shall
        be
        unwilling to so act, or shall, if it is prohibited by applicable law from
        making
        P&I Advances and Servicing Advances pursuant to Section 4.01, if it is
        otherwise unable to so act, or at the written request of Certificateholders
        entitled to at least a majority of the Voting Rights, appoint, or petition
        a
        court of competent jurisdiction to appoint, any established mortgage loan
        servicing institution the appointment of which does not adversely affect
        the
        then current rating of the Certificates by each Rating Agency, 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. Any successor
        to the Servicer shall make the covenant set forth in Section 6.02(b). Any
        successor to the Servicer shall be an institution which is willing to service
        the Mortgage Loans and which executes and delivers to the Depositor, the
        Master
        Servicer and the Trustee (as successor Master Servicer) an agreement accepting
        such delegation and assignment, containing an assumption by such Person of
        the
        rights, powers, duties, responsibilities, obligations and liabilities of
        the
        Servicer (other than liabilities of the Servicer under Section 6.03
        incurred prior to termination of the Servicer under Section 7.01), with
        like effect as if originally named as a party to this Agreement; provided,
        that
        each Rating Agency acknowledges that its rating of the Certificates in effect
        immediately prior to such assignment and delegation will not be qualified
        or
        reduced, as a result of such assignment and delegation. Pending appointment
        of a
        successor to the Servicer hereunder, the Master Servicer or the Trustee (as
        successor Master Servicer), as applicable, unless such party is prohibited
        by
        law from so acting, shall, subject to Section 3.05, act in such capacity as
        hereinabove provided. In connection with such appointment and assumption,
        the
        Master Servicer or the Trustee (as successor Master Servicer), as applicable,
        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 the Servicing Fee Rate and amounts
        paid
        to the Servicer from investments. The Master Servicer or the Trustee (as
        successor Master Servicer), as applicable, and such successor servicer shall
        take such action, consistent with this Agreement, as shall be necessary to
        effectuate any such succession. Neither the Master Servicer, the Trustee
        (as
        successor Master Servicer), nor any other successor to the Servicer shall
        be
        deemed to be in default hereunder by reason of any failure to make, or any
        delay
        in making, any distribution hereunder or any portion thereof or any failure
        to
        perform, or any delay in performing, any duties or responsibilities hereunder,
        in either case caused by the failure of the Servicer to deliver or provide,
        or
        any delay in delivering or providing, any cash, information, documents or
        records to it.

      
        
          
          

        

        
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      Notwithstanding
        the foregoing, the parties hereto agree that the Master Servicer or the Trustee
        (as successor Master Servicer), as applicable, in its capacity as successor
        servicer, immediately shall assume all of the obligations of the Servicer
        to
        make Advances and the Master Servicer or the Trustee(as successor Master
        Servicer), as applicable, will assume the other duties of the Servicer as
        soon
        as practicable, but in no event later than 90 days after the Master Servicer
        or
        the Trustee (as successor Master Servicer), as applicable, becomes successor
        servicer pursuant to the preceding paragraph. Notwithstanding the foregoing,
        the
        Master Servicer or the Trustee (as successor Master Servicer), as applicable,
        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;
        provided,
        however,
        that
        any failure to perform any duties or responsibilities caused by the Servicer’s
        failure to provide information required by this Agreement shall not be
        considered a default by the Trustee (as successor Master Servicer) hereunder.
        In
        the Trustee’s capacity as such successor, the Trustee (as successor Master
        Servicer) shall have the same limitations on liability herein granted to
        the
        Servicer.

       

      In
        the
        event that the Servicer is terminated pursuant to Section 7.01, the
        terminated Servicer shall provide notices to the Mortgagors, transfer the
        Servicing Files to a successor servicer and pay all of its own out-of-pocket
        costs and expenses at its own expense. In addition, in the event that the
        Servicer is terminated pursuant to Section 7.01, the terminated Servicer
        shall pay all reasonable out-of-pocket costs and expenses of a servicing
        transfer incurred by parties other than the terminated Servicer promptly
        upon
        presentation of reasonable documentation of such costs. If the Master Servicer
        or the Trustee (as successor Master Servicer), as applicable, is the terminated
        Servicer (except in the case where the Master Servicer in its role as successor
        servicer is being terminated pursuant to Section 7.01 by reason of an Event
        of Default caused solely by the Master Servicer as the successor servicer
        and
        not by the predecessor Servicer’s actions or omissions), such costs shall be
        paid by the prior terminated Servicer promptly upon presentation of reasonable
        documentation of such costs. If the terminated Servicer defaults in its
        obligation to pay such costs and expenses, the same shall be paid by the
        successor servicer, the Master Servicer or the Trustee (as successor Master
        Servicer), in which case the successor servicer, the Master Servicer or the
        Trustee (as successor Master Servicer), as applicable, shall be entitled
        to
        reimbursement therefor from the Trust Fund. 

       

      Any
        successor to the Servicer as servicer shall give notice to the Mortgagors
        of
        such change of servicer and shall, during the term of its service as servicer,
        maintain in force the policy or policies that the Servicer is required to
        maintain pursuant to Section 3.13.

       

      Section
        7.03           Notification
        to Certificateholders.
        (a)  Upon any termination of or appointment of a successor to the
        Servicer, the Securities Administrator shall give prompt written notice thereof
        to Certificateholders, each Rating Agency and the Derivative
        Counterparty.

       

      (b)           Within
        60 days after the occurrence of any Event of Default, the Securities
        Administrator shall transmit by mail to all Certificateholders, each Rating
        Agency and the Derivative Counterparty notice of each such Event of Default
        hereunder known to the Securities Administrator, unless such event shall
        have
        been cured or waived.

      
        
          
          

        

        
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      ARTICLE
        VIII

       

      CONCERNING
        THE TRUSTEE

       

      Section
        8.01           Duties
        of the Trustee.
        The
        Trustee, before the occurrence of a Master Servicer Event of Default and
        after
        the curing of all Master Servicer Events of Default that may have occurred,
        shall undertake to perform such duties and only such duties as are specifically
        set forth in this Agreement. In case a Master Servicer Event of Default has
        occurred and remains uncured, 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.

       

      The
        Trustee, upon receipt of all resolutions, certificates, statements, opinions,
        reports, documents, orders or other instruments furnished to the Trustee
        that
        are specifically required to be furnished pursuant to any provision of this
        Agreement, shall examine them to determine whether they are in the form required
        by this Agreement. The Trustee shall not be responsible for the accuracy
        or
        content of any resolution, certificate, statement, opinion, report, document,
        order, or other instrument.

       

      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 willful misconduct.

       

      Unless
        an
        Event of Default known to the Trustee has occurred and is
        continuing:

       

      (a)           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 the duties and obligations specifically set forth in this
        Agreement, no implied covenants or obligations shall be read into this Agreement
        against the Trustee, and 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 which it believes in good faith to be genuine
        and
        to have been duly executed by the proper authorities respecting any matters
        arising hereunder;

       

      (b)           the
        Trustee shall not be liable for an error of judgment made in good faith by
        a
        Responsible Officer or Responsible Officers of the Trustee, unless it is
        finally
        proven that the Trustee was negligent in ascertaining the pertinent facts;
        and

       

      (c)           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
        Holders of Certificates evidencing not less than 25.00% of the Voting Rights
        of
        Certificates relating to the time, method, and place of conducting any
        proceeding for any remedy available to the Trustee, or exercising any trust
        or
        power conferred upon the Trustee under this Agreement.

      
        
          
          

        

        
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      Section
        8.02           Certain
        Matters Affecting the Trustee.
        Except
        as otherwise provided in Section 8.01:

       

      (a)           the
        Trustee may rely upon and shall be protected in acting or refraining from
        acting
        upon any resolution, Officer’s Certificate, certificate of auditors or any other
        certificate, statement, instrument, opinion, report, notice, request, consent,
        order, appraisal, bond or other paper or document believed by it to be genuine
        and to have been signed or presented by the proper party or parties and the
        Trustee shall have no responsibility to ascertain or confirm the genuineness
        of
        any signature of any such party or parties;

       

      (b)           the
        Trustee may consult with counsel, financial advisers or accountants and the
        advice of any such counsel, financial advisers or accountants 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 advice or Opinion of Counsel;

       

      (c)           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;

       

      (d)           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 Holders of Certificates evidencing
        not less than 25.00% of the Voting Rights allocated to each Class of
        Certificates;

       

      (e)           the
        Trustee may execute any of the trusts or powers hereunder or perform any
        duties
        hereunder either directly or by or through agents, accountants, custodians,
        nominees or attorneys and the Trustee shall not be responsible for any
        misconduct or negligence on the part of any agents, accountants or attorneys
        appointed with due care by it hereunder;

       

      (f)           the
        Trustee shall not be required to risk or expend its own funds or otherwise
        incur
        any financial liability in the performance of any of its duties or in the
        exercise of any of its rights or powers hereunder if it shall have reasonable
        grounds for believing that repayment of such funds or indemnity satisfactory
        to
        it against such risk or liability is not assured to it;

       

      (g)           the
        Trustee shall not be liable for any loss on any investment of funds pursuant
        to
        this Agreement;

       

      (h)           unless
        a Responsible Officer of the Trustee has actual knowledge of the occurrence
        of a
        Master Servicer Event of Default or an Event of Default, the Trustee shall
        not
        be deemed to have knowledge of a Master Servicer Event of Default or an Event
        of
        Default until a Responsible Officer of the Trustee shall have received written
        notice thereof;

       

      (i)           the
        Trustee shall be under no obligation to exercise any of the trusts, 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 this Agreement, unless such
        Certificateholders shall have offered to the Trustee reasonable security
        or
        indemnity satisfactory to the Trustee against the costs, expenses and
        liabilities which may be incurred therein or thereby; and

      
        
          
          

        

        
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      (j)           if
        the Trustee, in its role as successor master servicer under this Agreement,
        assumes the servicing or master servicing with respect to any of the Mortgage
        Loans, it shall not assume liability for the representations and warranties
        of
        the Servicer or Master Servicer, as applicable, or for any errors or omissions
        of the Servicer or Master Servicer, as applicable.

       

      (k)           In
        order to comply with laws, rules, regulations and executive orders in effect
        from time to time applicable to banking institutions, including those relating
        to the funding of terrorist activities and money laundering (“Applicable Law”),
        the Trustee is required to obtain, verify and record certain information
        relating to individuals and entities which maintain a business relationship
        with
        the Trustee. Accordingly, each of the parties agrees to provide to the Trustee
        upon its request from time to time such identifying information and
        documentation as may be available to such party in order to enable the Trustee
        to comply with Applicable Law.

       

      Section
        8.03           Trustee
        Not Liable for Certificates or Mortgage Loans.
        The
        recitals contained herein and in the Certificates shall be taken as the
        statements of the Depositor and the Trustee assumes no responsibility for
        their
        correctness. The Trustee makes no representations as to the validity or
        sufficiency of this Agreement, the Cap Agreement, the Swap Agreement, or
        of the
        Certificates or of any Mortgage Loan or related document. The Trustee shall
        not
        be accountable for the use or application by the Depositor, the Master Servicer,
        the Servicer, the Securities Administrator or the Derivative Counterparty
        of any
        funds paid to the Depositor, the Master Servicer, the Servicer, the Securities
        Administrator or the Derivative Counterparty in respect of the Mortgage Loans
        or
        deposited in or withdrawn from the Collection Account, the Distribution Account
        or any other fund or account with respect to the Certificates by the Depositor,
        the Master Servicer, the Servicer, the Securities Administrator or the
        Derivative Counterparty.

       

      The
        Trustee shall have no responsibility for filing or recording 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.

       

      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 the
        Trustee.

       

      Section
        8.05           Trustee’s
        Fees Indemnification and Expenses.
        (a) As compensation for its activities under this Agreement, the Trustee
        shall be paid its fee by the Master Servicer from the Master Servicer’s own
        funds pursuant to a separate agreement. The Trustee shall have no lien on
        the
        Trust Fund for the payment of such fees. 

       

      (b)            The
        Trustee shall be entitled to be reimbursed, from funds on deposit in the
        Distribution Account, amounts sufficient to indemnify and hold harmless the
        Trustee and any director, officer, employee, or agent of the Trustee against
        any
        loss, liability, or expense (including reasonable attorneys’ fees) incurred in
        connection with any claim or legal action relating to:

      
        
          
          

        

        
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      (i)           this
        Agreement,

       

      (ii)           the
        Certificates, or

       

      (iii)           the
        performance of any of the Trustee’s duties under this Agreement,

       

      other
        than any loss, liability, or expense (i) resulting from any breach of the
        Servicer’s obligations in connection with this Agreement for which the Servicer
        has performed its obligation to indemnify the Trustee pursuant to
        Section 6.05, (ii) resulting from any breach of the Originator’s
        obligations in connection with this Agreement for which the Originator has
        performed its obligation to indemnify the Trustee pursuant to
        Section 2.03(h), (iii) resulting from any breach of the Master
        Servicer’s obligation hereunder for which the Master Servicer has performed its
        obligation to indemnify the Trustee pursuant to this Agreement or
        (iv) incurred because of willful misconduct, bad faith, or negligence in
        the performance of any of the Trustee’s duties under this Agreement. Without
        limiting the foregoing, except as otherwise agreed upon in writing by the
        Depositor and the Trustee, and except for any expense, disbursement, or advance
        arising from the Trustee’s negligence, bad faith, or willful misconduct, the
        Trust Fund shall pay or reimburse the Trustee for all reasonable expenses,
        disbursements, and advances incurred or made by the Trustee in accordance
        with
        this Agreement with respect to:

       

      (A)           the
        reasonable compensation, expenses, and disbursements of its counsel not
        associated with the closing of the issuance of the Certificates,
        and

       

      (B)           the
        reasonable compensation, expenses, and disbursements of any accountant,
        engineer, or appraiser that is not regularly employed by the Trustee, to
        the
        extent that the Trustee must engage them to perform services under this
        Agreement.

       

      The
        Trustee’s right to indemnity and reimbursement under this Section 8.05(b) shall
        survive the termination of this Agreement and the resignation or removal
        of the
        Trustee under this Agreement. 

       

      Except
        as
        otherwise provided in this Agreement or a separate letter agreement between
        the
        Trustee and the Depositor, the Trustee shall not be entitled to payment or
        reimbursement for any routine ongoing expenses incurred by the Trustee in
        the
        ordinary course of its duties as Trustee under this Agreement or for any
        other
        routine expenses incurred by the Trustee; provided,
        further,
        that no
        expense shall be reimbursed hereunder if it would not constitute an
“unanticipated expense incurred by the REMIC” within the meaning of the REMIC
        Provisions.

       

      Section
        8.06           Eligibility
        Requirements for the Trustee.
        The
        Trustee hereunder shall at all times be a corporation or association organized
        and doing business under the laws of a 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, subject to supervision or
        examination by federal or state authority and with a credit rating which
        would
        not cause any of the Rating Agencies to reduce their respective then current
        ratings of the Certificates (or having provided such security from time to
        time
        as is sufficient to avoid such reduction) as evidenced in writing by each
        Rating
        Agency. If such corporation or association publishes reports of condition
        at
        least annually, pursuant to law or to the requirements of the aforesaid
        supervising or examining authority, then for the purposes of this
        Section 8.06 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 condition so published. In case at any time
        the
        Trustee shall cease to be eligible in accordance with this Section 8.06,
        the Trustee shall resign immediately in the manner and with the effect specified
        in Section 8.07. The entity serving as Trustee may have normal banking and
        trust relationships with the Depositor and its affiliates, the Master Servicer,
        the Securities Administrator or the Servicer and its affiliates; provided,
        however,
        that
        such entity cannot be an affiliate of the Depositor or the Servicer other
        than
        the Trustee in its role as successor to the Master Servicer.

      
        
          
          

        

        
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      Section
        8.07           Resignation
        and Removal of the Trustee.
        The
        Trustee may at any time resign and be discharged from the trusts hereby created
        by giving written notice of resignation to the Depositor, the Master Servicer,
        the Securities Administrator and each Rating Agency not less than 60 days
        before the date specified in such notice, when, subject to Section 8.08,
        such resignation is to take effect and acceptance by a successor trustee
        in
        accordance with Section 8.08 meeting the qualifications set forth in
        Section 8.06. If no successor trustee meeting such qualifications shall
        have been so appointed and have accepted appointment within 30 days after
        the giving of such notice or 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 Section 8.06
        and shall fail to resign after written request thereto by the Depositor,
        or if
        at any time the Trustee shall become incapable of acting, or shall be adjudged
        as 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, or a tax is imposed with respect to the Trust Fund by any state
        in
        which the Trustee or the Trust Fund is located and the imposition of such
        tax
        would be avoided by the appointment of a different trustee, then the Depositor
        or the Servicer may remove the Trustee and, subject
        to the approval of the Rating Agencies,
        appoint
        a successor trustee by written instrument, in triplicate, one copy of which
        shall be delivered to the Trustee, one copy to the Servicer and one copy
        to the
        successor trustee.

       

      The
        Holders of Certificates entitled to at least a majority of the Voting Rights
        may
        at any time remove the Trustee and, subject to the approval of the Rating
        Agencies, appoint a successor trustee by written instrument or instruments,
        in
        triplicate, signed by such Holders or their attorneys-in-fact duly authorized,
        one complete set of which shall be delivered by the successor Trustee to
        the
        Servicer, one complete set to the Trustee so removed and one complete set
        to the
        successor so appointed. The successor trustee shall notify each Rating Agency
        of
        any removal of the Trustee.

       

      Any
        resignation or removal of the Trustee and appointment of a successor trustee
        pursuant to this Section 8.07 shall become effective upon acceptance of
        appointment by the successor trustee as provided in
        Section 8.08.

      
        
          
          

        

        
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      Section
        8.08           Successor
        Trustee.
        Any
        successor trustee appointed as provided in Section 8.07 shall execute,
        acknowledge and deliver to the Depositor and to its predecessor trustee and
        the
        Servicer 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
        herein. 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 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 8.08
        unless at the time of its acceptance, the successor trustee is eligible under
        Section 8.06 and its appointment does not adversely affect then the current
        rating of the Certificates.

       

      Upon
        acceptance of appointment by a successor trustee as provided in this
        Section 8.08, the Depositor shall mail notice of the succession of such
        trustee hereunder to all Holders of Certificates. 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 the Trustee.
        Any
        corporation into which the Trustee may be merged or converted or with which
        it
        may be consolidated or any corporation resulting from any merger, conversion
        or
        consolidation to which the Trustee shall be a party, or any corporation
        succeeding to the business of the Trustee, shall be the successor of the
        Trustee
        hereunder; provided,
        that
        such corporation shall be eligible under Section 8.06 without the execution
        or filing of any paper or 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 Fund or property securing any Mortgage Note 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 Fund, and to vest in such Person or Persons, in such capacity and for
        the
        benefit of the Certificateholders, such title to the Trust Fund or any part
        thereof, whichever is applicable, 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 appropriate. If the Servicer shall
        not
        have joined in such appointment within 15 days after the receipt by it of a
        request to do so, or in the case an Event of Default 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.

      
        
          
          

        

        
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      Every
        separate trustee and co-trustee shall, to the extent permitted by law, be
        appointed and act subject to the following provisions and
        conditions:

       

      (a)           To
        the extent necessary to effectuate the purposes of this Section 8.10, all
        rights, powers, duties and obligations conferred or imposed upon the Trustee,
        except for the obligation of the Trustee (as successor Master Servicer) under
        this Agreement to advance funds on behalf of the Master Servicer, 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 Master 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 applicable Trust Fund 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;

       

      (b)           No
        trustee hereunder shall be held personally liable because of any act or omission
        of any other trustee hereunder and such appointment shall not, and shall
        not be
        deemed to, constitute any such separate trustee or co-trustee as agent of
        the
        Trustee;

       

      (c)           The
        Trustee may at any time accept the resignation of or remove any separate
        trustee
        or co-trustee; and

       

      (d)           The
        Trust Fund, and not the Trustee, shall be liable for the payment of reasonable
        compensation, reimbursement and indemnification to any such 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 separate trustees and co-trustees, when and 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 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 and
        indemnity to, the Trustee. Every such instrument shall be filed with the
        Trustee
        and a copy thereof given to the Master Servicer and the Depositor.

       

      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           Tax
        Matters.
        It is
        intended that the assets with respect to which any REMIC election pertaining
        to
        the Trust Fund is to be made, as set forth in the Preliminary Statement,
        shall
        constitute, and that the conduct of matters relating to such assets shall
        be
        such as to qualify such assets as, a “real estate mortgage investment conduit”
as defined in and in accordance with the REMIC Provisions. In furtherance
        of
        such intention, the Securities Administrator covenants and agrees that it
        shall
        act as agent (and the Securities Administrator is hereby appointed to act
        as
        agent) on behalf of each REMIC created hereunder and that in such capacity
        it
        shall:

      
        
          
          

        

        
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      (a)           prepare
        and file in a timely manner, a U.S. Real Estate Mortgage Investment Conduit
        (REMIC) Income Tax Return (Form 1066 or any successor form adopted by the
        Internal Revenue Service), which return the Trustee shall sign upon receipt
        from
        the Securities Administrator, and the Securities Administrator shall prepare
        and
        file with the Internal Revenue Service and applicable state or local tax
        authorities income tax or information returns for each taxable year with
        respect
        to each REMIC hereunder containing such information and at the times and
        in the
        manner as may be required by the Code or state or local tax laws, regulations,
        or rules, and furnish to Certificateholders the schedules, statements or
        information at such times and in such manner as may be required
        thereby;

       

      (b)           within
        thirty days of the Closing Date, apply for an employer identification
        number from the Internal Revenue Service via Form SS-4 or any other
        acceptable method for all tax entities and shall also furnish to the Internal
        Revenue Service, on Form 8811 or as otherwise may be required by the Code,
        the name, title, address, and telephone number of the person that the holders
        of
        the Certificates may contact for tax information relating thereto, together
        with
        such additional information as may be required by such Form, and update such
        information at the time or times in the manner required by the
        Code;

       

      (c)           make
        an election that each REMIC created hereunder be treated as a REMIC on the
        federal tax return for its first taxable year (and, if necessary, under
        applicable state law);

       

      (d)           prepare
        and forward to the Certificateholders and to the Internal Revenue Service
        and,
        if necessary, state tax authorities, all information returns and reports
        as and
        when required to be provided to them in accordance with the REMIC Provisions,
        including the calculation of any original issue discount using the prepayment
        assumption (as described in the Prospectus Supplement);

       

      (e)           provide
        information necessary for the computation of tax imposed on the transfer
        of a
        Residual Certificate to a Person that is a Non-Permitted Transferee, or an
        agent
        (including a broker, nominee or other middleman) of a Non-Permitted Transferee,
        or a pass-through entity in which a Non-Permitted Transferee is the record
        holder of an interest (the reasonable cost of computing and furnishing such
        information may be charged to the Person liable for such tax);

       

      (f)           to
        the extent that they are under its control, conduct matters relating to such
        assets at all times that any Certificates are outstanding so as to maintain
        the
        status of each REMIC created hereunder as a REMIC under the REMIC
        Provisions;

      
        
          
          

        

        
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      (g)           not
        knowingly or intentionally take any action or omit to take any action that
        would
        cause the termination of the REMIC status of any of the REMICs created
        hereunder;

       

      (h)           pay,
        from the sources specified in the last paragraph of this Section 8.11,
        the amount of any federal or state tax, including prohibited transaction
        taxes
        as described below, imposed on each REMIC created hereunder before its
        termination when and as the same shall be due and payable (but such obligation
        shall not prevent the Securities Administrator or any other appropriate Person
        from contesting any such tax in appropriate proceedings and shall not prevent
        the Securities Administrator from withholding payment of such tax, if permitted
        by law, pending the outcome of such proceedings);

       

      (i)           cause
        federal, state or local income tax or information returns to be signed by
        the
        Securities Administrator or, if required by applicable tax law, the Trustee
        or
        such other person as may be required to sign such returns by the Code or
        state
        or local laws, regulations or rules; and

       

      (j)           maintain
        records relating to each REMIC created hereunder, including the income,
        expenses, assets, and liabilities thereof on a calendar year basis and on
        the
        accrual method of accounting and the adjusted basis of the assets determined
        at
        such intervals as may be required by the Code, as may be necessary to prepare
        the foregoing returns, schedules, statements or information.

       

      The
        Holder of the largest Percentage Interest of the Class R Certificates shall
        act as Tax Matters Person for each REMIC created hereunder, within the meaning
        of Treasury Regulations Section 1.860F-4(d), and the Securities
        Administrator is hereby designated as agent of such Certificateholder for
        such
        purpose (or if the Securities Administrator is not so permitted, such Holder
        shall be the Tax Matters Person in accordance with the REMIC Provisions).
        In
        such capacity, the Securities Administrator shall, as and when necessary
        and
        appropriate, represent each REMIC created hereunder 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
        each REMIC created hereunder, enter into settlement agreements with any
        governmental taxing agency, extend any statute of limitations relating to
        any
        tax item of each REMIC created hereunder, and otherwise act on behalf of
        each
        REMIC in relation to any tax matter or controversy involving it.

       

      The
        Securities Administrator shall treat the beneficial owners of the Certificates
        (other than the Class A-5, Class P, Class X and Class R Certificates) as
        having
        entered into a notional principal contract with the beneficial owners of
        the
        Class X Certificates. Pursuant to each such notional principal contract,
        all
        beneficial owners of the LIBOR Certificates and the Class A-IO Certificates
        shall be treated as having agreed to pay, on each Distribution Date, to the
        beneficial owners of the Class X Certificates an aggregate amount equal to
        the
        excess, if any, of (i) the amount payable on such Distribution Date on the
        interest in the Upper Tier REMIC corresponding to such Class of Certificates
        over (ii) the amount payable on such Class of Certificates on such Distribution
        Date (such excess, a “Class I Shortfall”). A Class I Shortfall payable from
        interest collections shall be allocated to each Class of Certificates (other
        than the Class A-5, Class P, Class X and Class R Certificates) to the extent
        that interest accrued on such Class for the related Interest Accrual Period
        at
        the Interest Rate for a Class, computed by substituting “REMIC 3 Net Funds Cap”
for “Available Funds Cap” and “REMIC A-IO Available Funds Cap” for “Class A-IO
        Available Funds Cap” in the definition thereof, exceeds the amount of interest
        accrued for the related Interest Accrual Period based on the applicable
        Available Funds Cap, and a Class I Shortfall payable from principal collections
        shall be allocated to the most subordinate Class of Certificates with an
        outstanding principal balance to the extent of such balance. In addition,
        pursuant to such notional principal contract, the beneficial owner of the
        Class
        X Certificates shall be treated as having agreed to pay Basis Risk Carryover
        Amounts to the Owners of the LIBOR Certificates and the Class A-IO Certificates
        in accordance with the terms of this Agreement. Any
        payments to the Certificates in light of the foregoing shall not be payments
        with respect to a “regular interest” in a REMIC within the meaning of Code
        Section 860G(a)(1). However, any payment from the Certificates of a Class
        I
        Shortfall shall be treated for tax purposes as having been received by the
        beneficial
        owners
        of such
        Certificates in respect of their Interests in the Upper Tier REMIC and as
        having
        been paid by such beneficial
        owners
        to the
        Supplemental Interest Trust pursuant to the notional principal
        contract. Thus,
        each Certificate (other than a Class A-5, Class P and Class R Certificate)
        shall
        be treated as representing not only ownership of regular interests in the
        Upper
        Tier REMIC, but also ownership of an interest in (and obligations with respect
        to) a notional principal contract. For tax purposes, the notional principal
        contract shall be deemed to have a value in favor of the Certificates entitled
        to receive Basis Risk Carryover Amounts of $10,000 as of the Closing
        Date.

      
        
          
          

        

        
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      Notwithstanding
        the priority and sources of payments set forth in Article IV hereof or
        otherwise, the Securities Administrator shall account for all distributions
        on
        the Certificates as set forth in this Section 8.11. In no event shall any
        payments of Basis Risk Carryover Amounts provided for in this Section 8.11
        be
        treated as payments
        with respect to a “regular interest” in a REMIC within the meaning of Code
        Section 860G(a)(1). The
        Securities Administrator shall file or cause to be filed with the IRS together
        with Form 1041 or such other form as may be applicable and shall furnish
        or
        cause to be furnished, to the Class A-IO Certificateholders, the
        Class X Certificateholders and the LIBOR Certificateholders, the respective
        amounts described above that are received, in the time or times and in the
        manner required by the Code.

       

      To
        enable
        the Securities Administrator to perform its duties under this Agreement,
        the
        Depositor shall provide to the Securities Administrator within ten days
        after the Closing Date all information or data that the Securities Administrator
        requests in writing and determines to be relevant for tax purposes to the
        valuations and offering prices of the Certificates, including the price,
        yield,
        prepayment assumption, and projected cash flows of the Certificates and the
        Mortgage Loans. Moreover, the Depositor shall provide information to the
        Securities Administrator concerning the value to each Class of Certificates
        of the right to receive Basis Risk Carryover Amounts from the Excess Reserve
        Fund Account. Unless otherwise advised by the Depositor, for federal income
        tax
        purposes, the Securities Administrator is hereby directed to assign a value
        of
        zero to the right of each Holder allocating the purchase price of an initial
        Offered Certificateholder between such right and the related Upper Tier Regular
        Interest. Thereafter, the Depositor shall provide to the Securities
        Administrator promptly upon written request therefor any additional information
        or data that the Securities Administrator may, from time to time, reasonably
        request to enable the Securities Administrator to perform its duties under
        this
        Agreement; provided,
        however,
        that
        the Depositor shall not be required to provide any information regarding
        the
        Mortgage Loans that the Servicer is required to provide to the Securities
        Administrator pursuant to this Agreement. The Depositor hereby indemnifies
        the
        Securities Administrator for any losses, liabilities, damages, claims, or
        expenses of the Securities Administrator arising from any errors or
        miscalculations of the Securities Administrator that result from any failure
        of
        the Depositor to provide, pursuant to this paragraph, accurate information
        or
        data to the Securities Administrator on a timely basis.

      
        
          
          

        

        
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      None
        of the Master Servicer, the Securities Administrator or the Trustee shall
        (i)
        permit the creation of any interests in any REMIC other than the regular
        and
        residual interests set forth in the Preliminary Statement, (ii) receive any
        amount representing a fee or other compensation for services (except as
        otherwise permitted by this Agreement or the related Mortgage Loan documents)
        or
        (iii) otherwise knowingly or intentionally take any action, cause the Trust
        Fund
        to take any action or fail to take (or fail to cause to be taken) any action
        reasonably within its control and the scope of duties more specifically set
        forth herein, that, under the REMIC Provisions, if taken or not taken, as
        the
        case may be, could (i) endanger the status of any REMIC as a REMIC or (ii)
        result in the imposition of a tax upon any REMIC or 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, or the tax on “net income from foreclosure
        property”) unless the Securities Administrator receives an Opinion of Counsel
        (at the expense of the party seeking to take such action or, if such party
        fails
        to pay such expense, and the Securities Administrator determines that taking
        such action is in the best interest of the Trust Fund and the
        Certificateholders, at the expense of the Trust Fund, but in no event at
        the
        expense of the Securities Administrator) to the effect that the contemplated
        action will not, with respect to the Trust Fund or any REMIC created hereunder,
        endanger such status or result in the imposition of such a tax).

       

      If
        any
        tax is imposed on “prohibited transactions” of a REMIC created hereunder as
        defined in Section 860F(a)(2) of the Code, on the “net income from
        foreclosure property” of any REMIC created hereunder as defined in
        Section 860G(c) of the Code, on any contribution to any REMIC created
        hereunder after the Startup Day pursuant to Section 860G(d) of the Code, or
        any other tax is imposed, including any minimum tax imposed on either REMIC
        pursuant to Sections 23153 and 24874 of the California Revenue and Taxation
        Code, if not paid as otherwise provided for herein, the tax shall be paid
        by
        (i) the Master Servicer, the Trustee, or the Securities Administrator, as
        applicable, if such tax arises out of or results from negligence of the Master
        Servicer, the Trustee or the Securities Administrator, as applicable, in
        the
        performance of any of its obligations under this Agreement, (ii) the Originator
        if such tax arises out of or results from the Originator’s obligation to
        repurchase a Mortgage Loan pursuant to Section 2.03, (iii) the Sponsor, if
        such
        tax arises out of or results from the Sponsor’s obligation to repurchase a
        Mortgage Loan pursuant to Section 2.03(k), (iv) the Servicer, in the case
        of any
        such minimum tax, and otherwise if such tax arises out of or results from
        a
        breach by the Servicer of any of its obligations under this Agreement, or
        (v) in all other cases, or if the Master Servicer, the Trustee, the
        Securities Administrator or the Servicer fails to honor its obligations under
        the preceding clause (i) or (ii), any such tax will be paid with
        amounts otherwise to be distributed to the Certificateholders, as provided
        in
        Section 4.02(a).

       

      Section
        8.12           Commission
        Reporting.
        (a) The
        Securities Administrator shall, in accordance with industry standards, prepare
        and file with the Commission, via EDGAR, the following reports in respect
        of the
        Trust as and to the extent required under the Exchange Act: 

      
        
          
          

        

        
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      (i)           (A)
        Within 15 days after each Distribution Date (subject to permitted extensions
        under the Exchange Act), the Securities Administrator shall prepare and file
        on
        behalf of the Trust any Form 10-D required by the Exchange Act, in form and
        substance as required by the Exchange Act. The Securities Administrator shall
        file each Form 10-D with a copy of the related Monthly Statement attached
        thereto. Any disclosure in addition to the Monthly Statement that is required
        to
        be included on Form 10-D (“Additional Form 10-D Disclosure”) shall be reported
        by the parties set forth on Exhibit V to the Depositor and the Securities
        Administrator and directed and approved by the Depositor pursuant to the
        following paragraph and the Securities Administrator will have no duty or
        liability for any failure hereunder to determine or prepare any Additional
        Form
        10-D Disclosure, except to the extent of its obligations set forth in the
        next
        paragraph. 

       

      (B)
        As
        set forth on Exhibit V hereto, within 5 calendar days after the related
        Distribution Date, (i) the parties specified in Exhibit V hereto, shall be
        required to provide to the Securities Administrator and to the Depositor,
        to the
        extent known, in EDGAR-compatible format, or in such other format as agreed
        upon
        by the Securities Administrator and such party, the form and substance of
        any
        Additional Form 10-D Disclosure, if applicable, together with an Additional
        Disclosure Notification, and (ii) the Depositor will approve, as to form
        and
        substance, or disapprove, as the case may be, the inclusion of the Additional
        Form 10-D Disclosure on Form 10-D. The Securities Administrator has no duty
        under this Agreement to monitor or enforce the performance by the parties
        listed
        on Exhibit V of their duties under this paragraph or proactively solicit
        or
        procure from such parties any Additional Form 10-D Disclosure information.
        The
        Depositor shall be responsible for any reasonable fees and expenses assessed
        or
        incurred by the Securities Administrator in connection with including any
        Additional Form 10-D Disclosure on Form 10-D pursuant to this paragraph.
        

       

      (C)
        After
        preparing the Form 10-D, the Securities Administrator shall, upon request,
        forward electronically a copy of the Form 10-D to the Depositor (provided
        that
        such Form 10-D includes any Additional Form 10-D Disclosure). Within two
        Business Days after receipt of such copy, but no later than the 12th
        calendar
        day after the Distribution Date, the Depositor shall notify the Securities
        Administrator in writing (which may be furnished electronically) of any changes
        to or approval of such Form 10-D. In the absence of receipt of any written
        changes or approval, or if the Depositor does not request a copy of a Form
        10-D,
        the Securities Administrator shall be entitled to assume that such Form 10-D
        is
        in final form and the Securities Administrator may proceed with the process
        for
        execution and filing of the Form 10-D. A duly authorized representative of
        the
        Master Servicer shall sign each Form 10-D. If a Form 10-D cannot be filed
        on
        time or if a previously filed Form 10-D needs to be amended, the Securities
        Administrator will follow the procedures set forth in paragraph (d) of this
        Section 8.12. Promptly (but no later than one Business Day) after filing
        with
        the Commission, the Securities Administrator will make available on its internet
        website (located at www.ctslink.com)
        a final
        executed copy of each Form 10-D prepared and filed by the Securities
        Administrator. Each party to this Agreement acknowledges that the performance
        by
        each of the Master Servicer and the Securities Administrator of its duties
        under
        this Section 8.12(a)(i) related to the timely preparation, execution and
        filing
        of Form 10-D is contingent upon such parties strictly observing all applicable
        deadlines in the performance of their duties under this Section 8.12(a)(i).
        The
        Depositor acknowledges that the performance by each of the Master Servicer
        and
        the Securities Administrator of its duties under this Section 8.12(i) related
        to
        the timely preparation, execution and filing of Form 10-D is also contingent
        upon any Servicing Function Participant strictly observing deadlines no later
        than those set forth in this paragraph that are applicable to the parties
        to
        this Agreement in the delivery to the Securities Administrator of any necessary
        Additional Form 10-D Disclosure pursuant to any applicable agreement. Neither
        the Master Servicer nor the Securities Administrator shall have any liability
        for any loss, expense, damage, claim arising out of or with respect to any
        failure to properly prepare, execute and/or timely file such Form 10-D, where
        such failure results from the Securities Administrator’s inability or failure to
        receive, on a timely basis, any information from any other party hereto or
        any
        Servicing Function Participant needed to prepare, arrange for execution or
        file
        such Form 10-D, not resulting from its own negligence, bad faith or willful
        misconduct. 

      
        
          
          

        

        
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      (D)
                   Form 10-D
        requires the registrant to indicate (by checking “yes” or “no”) that it “(1) has
        filed all reports required to be filed by Section 13 or 15(d) of the Exchange
        Act 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.” The Depositor hereby instructs the
        Administrator to check “Yes” for each item, unless the Depositor shall notify
        the Securities Administrator in writing, no later than the fifth calendar
        day
        after the related Distribution Date with respect to the filing of a report
        on
        Form 10-D, that the answer to either item should be “no.” The Depositor has
        filed all reports required to be filed by Section 13 or 15(d) of the Exchange
        Act during the preceding 12 months (or for such shorter period that the
        Depositor was required to file such reports) and it has been subject to such
        filing requirement for the past 90 days.” The Securities Administrator shall be
        entitled to rely on such representations in preparing, executing and/or filing
        any such Form 10-D.

       

      (ii)           (A)
        On or prior to the 90th
        day
        after the end of each fiscal year of the Trust or such earlier date as may
        be
        required by the Exchange Act (the “10-K
        Filing Deadline”)
        (it
        being understood that the fiscal year for the Trust ends on December
        31st
        of each
        year), commencing in March 2007, the Securities Administrator shall prepare
        and
        file on behalf of the Trust a Form 10-K, in form and substance as required
        by
        the Exchange Act. Each such Form 10-K shall include the following items,
        in each
        case to the extent they have been delivered to the Securities Administrator
        within the applicable time frames set forth in this Agreement, (i) an annual
        compliance statement for the Servicer, the Master Servicer and the Securities
        Administrator and any Servicing Function Participant engaged by any such
        party
        (together with the Custodian, each a “Reporting
        Servicer”)
        as
        described under Section 3.24(b), (ii)(A) the annual reports on assessment
        of
        compliance with Servicing Criteria for each Reporting Servicer, as described
        under Section 3.22, and (B) if each Reporting Servicer’s report on assessment of
        compliance with Servicing Criteria described under Section 3.22 identifies
        any
        material instance of noncompliance, disclosure identifying such instance
        of
        noncompliance, or if each Reporting Servicer’s report on assessment of
        compliance with Servicing Criteria described under Section 3.22 is not included
        as an exhibit to such Form 10-K, disclosure that such report is not included
        and
        an explanation why such report is not included, provided,
        however,
        that
        the Securities Administrator, at its discretion, may omit from the Form 10-K
        any
        assessment of compliance or attestation report described in clause (iii)
        below
        that is not required to be filed with such Form 10-K pursuant to Regulation
        AB;
        (iii)(A) the registered public accounting firm attestation report for each
        Reporting Servicer, as described under Section 3.23, and (B) if any registered
        public accounting firm attestation report described under Section 3.23
        identifies any material instance of noncompliance, disclosure identifying
        such
        instance of noncompliance, or if any such registered public accounting firm
        attestation report is not included as an exhibit to such Form 10-K, disclosure
        that such report is not included and an explanation why such report is not
        included, and (iv) a Sarbanes-Oxley Certification as described in Section
        3.24.
        Any disclosure or information in addition to (i) through (iv) above that
        is
        required to be included on Form 10-K (“Additional
        Form 10-K Disclosure”)
        shall
        be reported by the parties set forth on Exhibit W to the Depositor and the
        Securities Administrator and directed and approved by the Depositor pursuant
        to
        the following paragraph and the Securities Administrator will have no duty
        or
        liability for any failure hereunder to determine or prepare any Additional
        Form
        10-K Disclosure, except to the extent of its obligations set forth in the
        next
        paragraph. 

      
        
          
          

        

        
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      (B)
        As
        set forth on Exhibit W hereto, no later than March 10 (with a 5 calendar
        day
        cure period, but in no event later than March 15) of each year that the Trust
        is
        subject to the Exchange Act reporting requirements, commencing in 2007, (i)
        the
        parties specified on Exhibit W shall be required to provide to the Securities
        Administrator and to the Depositor, to the extent known, in EDGAR-compatible
        format, or in such other format as agreed upon by the Securities Administrator
        and such party, the form and substance of any Additional Form 10-K Disclosure,
        if applicable, together with an Additional Disclosure Notification, and (ii)
        the
        Depositor will approve, as to form and substance, or disapprove, as the case
        may
        be, the inclusion of the Additional Form 10-K Disclosure on Form 10-K. The
        Securities Administrator has no duty under this Agreement to monitor or enforce
        the performance by the parties listed on Exhibit W of their duties under
        this
        paragraph or proactively solicit or procure from such parties any Additional
        Form 10-K Disclosure information. The Depositor will be responsible for any
        reasonable fees and expenses assessed or incurred by the Securities
        Administrator in connection with including any Additional Form 10-K Disclosure
        on Form 10-K pursuant to this Section 8.12 (a) (ii) (B).

       

      (C)
        After
        preparing the Form 10-K, the Securities Administrator shall, upon request,
        forward electronically a copy of the Form 10-K to the Depositor. Within three
        Business Days after receipt of such copy, but no later than March 25th, the
        Depositor shall notify the Securities Administrator in writing (which may
        be
        furnished electronically) of any changes to or approval of such Form 10-K.
        In
        the absence of receipt of any written changes or approval, or if the Depositor
        does not request a copy of a Form 10-K, the Securities Administrator shall
        be
        entitled to assume that such Form 10-K is in final form and the Securities
        Administrator may proceed with the process for execution and filing of the
        Form
        10-K. A senior officer of the Master Servicer in charge of the master servicing
        function shall sign the Form 10-K. If a Form 10-K cannot be filed on time
        or if
        a previously filed Form 10-K needs to be amended, the Securities Administrator
        will follow the procedures set forth in paragraph (d) of this Section 8.12.
        Promptly (but no later than one Business Day) after filing with the Commission,
        the Securities Administrator will make available on its internet website
        a final
        executed copy of each Form 10-K prepared and filed by the Securities
        Administrator. The parties to this Agreement acknowledge that the performance
        by
        the Securities Administrator of its duties under this Section 8.12(a)(ii)
        related to the timely preparation, execution and filing of Form 10-K is
        contingent upon such parties strictly observing all applicable deadlines
        in the
        performance of their duties under this Section 8.12(a)(ii) and Sections 3.22,
        3.23 and 3.24. The Depositor acknowledges that the performance by the Master
        Servicer and the Securities Administrator of its duties under this Section
        8.12(ii) related to the timely preparation, execution and filing of Form
        10-K is
        also contingent upon any Servicing Function Participant strictly observing
        deadlines no later than those set forth in this paragraph that are applicable
        to
        the parties to this Agreement in the delivery to the Securities Administrator
        of
        any necessary Additional Form 10-K Disclosure, any annual statement of
        compliance and any assessment of compliance and attestation pursuant to any
        applicable agreement. Neither the Master Servicer nor the Securities
        Administrator shall have any liability for any loss, expense, damage, claim
        arising out of or with respect to any failure to properly prepare, execute
        and/or timely file such Form 10-K, where such failure results from the
        Securities Administrator’s inability or failure to obtain or receive, on a
        timely basis, any information from any other party hereto or any Servicing
        Function Participant needed to prepare, arrange for execution or file such
        Form
        10-K, not resulting from its own negligence, bad faith or willful
        misconduct.

      
        
          
          

        

        
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      (D)           Form
        10-K requires the registrant to indicate (by checking “yes” or “no”) that it
“(1) has filed all reports required to be filed by Section 13 or 15(d) of
        the
        Exchange Act 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 requirement for the past 90 days.” The Depositor hereby instructs the
        Securities Administrator to check “Yes” for each item, unless the Depositor
        shall notify the Securities Administrator in writing, no later than the
        15th
        calendar
        day of March in any year in which the Trust is subject to the reporting
        requirements of the Exchange Act, that the answer to either item should be
“no.”
The Depositor has filed all reports required to be filed by Section 13 or
        15(d)
        of the Exchange Act during the preceding 12 months (or for such shorter period
        that the Depositor was required to file such reports) and it has been subject
        to
        such filing requirement for the past 90 days.” The Securities Administrator
        shall be entitled to rely on such representations in preparing, executig
        and/or
        filing any such Form 10-K. 

      
         

      

      (iii)           (A)
        Within four (4) Business Days after the occurrence of an event requiring
        disclosure on Form 8-K (each such event, a “Reportable
        Event”),
        if
        directed by the Depositor, the Securities Administrator shall prepare and
        file
        on behalf of the Trust Fund any Form 8-K, as required by the Exchange Act,
        provided
        that the
        Depositor shall file the initial Form 8-K in connection with the issuance
        of the
        Certificates. Any disclosure or information related to a Reportable Event
        or
        that is otherwise required to be included on Form 8-K (“Form
        8-K Disclosure Information”)
        shall
        be reported by the parties set forth on Exhibit X to the Depositor and the
        Securities Administrator and directed and approved by the Depositor pursuant
        to
        the following paragraph and the Securities Administrator will have no duty
        or
        liability for any failure hereunder to determine or prepare any Form 8-K
        Disclosure Information or any Form 8-K, except to the extent of its obligations
        set forth in the next paragraph. 

      
        
          
          

        

        
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      (B)
        As
        set forth on Exhibit X hereto, for so long as the Trust is subject to the
        Exchange Act reporting requirements, no later than the close of business
        New
        York City time on the 2nd Business Day after the occurrence of a Reportable
        Event (i) the parties hereto shall be required to provide to the Securities
        Administrator and the Depositor, to the extent known, in EDGAR-compatible
        format, or in such other format as agreed upon by the Securities Administrator
        and such party, the form and substance of any Form 8-K Disclosure Information,
        if applicable, together with an Additional Disclosure Notification, and (ii)
        the
        Depositor will approve, as to form and substance, or disapprove, as the case
        may
        be, the inclusion of the Form 8-K Disclosure Information. The Depositor will
        be
        responsible for any reasonable fees and expenses assessed or incurred by
        the
        Securities Administrator in connection with including any Form 8-K Disclosure
        Information on Form 8-K pursuant to this paragraph. 

       

      (C)
        After
        preparing the Form 8-K, the Securities Administrator shall, upon request,
        forward electronically a copy of the Form 8-K to the Depositor. Promptly,
        but no
        later than the close of business on the third Business Day after the Reportable
        Event, the Depositor shall notify the Securities Administrator in writing
        (which
        may be furnished electronically) of any changes to or approval of such Form
        8-K.
        In the absence of receipt of any written changes or approval, or if the
        Depositor does not request a copy of a Form 8-K, the Securities Administrator
        shall be entitled to assume that such Form 8-K is in final form and the
        Securities Administrator may proceed with the process for execution and filing
        of the Form 8-K. A duly authorized representative of the Master Servicer
        shall
        sign each Form 8-K. If a Form 8-K cannot be filed on time or if a previously
        filed Form 8-K needs to be amended, the Securities Administrator will follow
        the
        procedures set forth in paragraph (d) of this Section 8.12. Promptly (but
        no
        later than one Business Day) after filing with the Commission, the Securities
        Administrator will make available on its internet website (located at
www.ctslink.com)
        a final
        executed copy of each Form 8-K prepared and filed by the Securities
        Administrator. The parties to this Agreement acknowledge that the performance
        by
        the Securities Administrator of its duties under this Section 8.12(d)(iii)
        related to the timely preparation, execution and filing of Form 8-K is
        contingent upon such parties strictly observing all applicable deadlines
        in the
        performance of their duties under this Section 8.12(d)(iii). The Depositor
        acknowledges that the performance by the Master Servicer and the Securities
        Administrator of its duties under this Section 8.12(iii) related to the timely
        preparation, execution and filing of Form 10-D is also contingent upon any
        Servicing Function Participant strictly observing deadlines no later than
        those
        set forth in this paragraph that are applicable to the parties to this Agreement
        in the delivery to the Securities Administrator of any necessary Form 8-K
        Disclosure Information pursuant to the related any applicable agreement.
        The
        Securities Administrator shall have no liability for any loss, expense, damage,
        claim arising out of or with respect to any failure to properly prepare and/or
        timely file such Form 8-K, where such failure results from the Securities
        Administrator’s inability or failure to obtain or receive, on a timely basis,
        any information from any other party hereto or any Servicing Function
        Participant needed to prepare, arrange for execution or file such Form 8-K,
        not
        resulting from its own negligence, bad faith or willful misconduct.

      
        
          
          

        

        
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      (b)           The
        Depositor acknowledges and agrees that the Securities Administrator may include
        in any Exchange Act report all relevant information, data, and exhibits as
        the
        Securities Administrator may receive in connection with such report irrespective
        of any provision or Regulation AB that may permit the exclusion of such
        material. By the way of example, the Securities Administrator may file all
        assessments of compliance, attestation reports and compliance statements
        timely
        received from any Item 1122 Servicing Function Participant irrespective of
        any
        applicable minimum pool asset percentage requirement for disclosure related
        to
        such Servicing Function Participant.

      

      (c)           The
        Depositor agrees to furnish promptly to the Securities Administrator, from
        time
        to time upon request, such additional information, data, reports, documents,
        and
        financial statements within the Depositor’s possession or control as the
        Securities Administrator reasonably requests as necessary or appropriate
        to
        prepare and file the foregoing reports. The Securities Administrator shall
        make
        available to the Depositor copies of all Exchange Act reports filed
        hereunder.

       

      (d)
        (i)           On or
        before January 30 of the first year in which the Securities Administrator
        is
        able to do so under applicable law, the Securities Administrator shall prepare
        and file a Form 15 relating to the automatic suspension of reporting in respect
        of the Trust under the Exchange Act. 

      

      (ii)
        In
        the event that the Securities Administrator is unable to timely file with
        the
        Commission all or any required portion of any Form 8-K, 10-D or 10-K required
        to
        be filed by this Agreement because required disclosure information was either
        not delivered to it or delivered to it after the delivery deadlines set forth
        in
        this Agreement or for any other reason, the Securities Administrator will
        promptly notify electronically the Depositor. In the case of Form 10-D and
        10-K,
        the parties to this Agreement will cooperate to prepare and file a Form 12b-25
        and a 10-DA and 10-KA as applicable, pursuant to Rule 12b-25 of the Exchange
        Act. In the case of Form 8-K, the Securities Administrator will, upon receipt
        of
        all required Form 8-K Disclosure Information and upon the approval and direction
        of the Depositor, include such disclosure information on the next Form 10-D.
        In
        the event that any previously filed Form 8-K, 10-D or 10-K needs to be amended
        in connection with any Additional Form 10-D Disclosure (other than, in the
        case
        of Form 10-D, for the purpose of restating any Monthly Statement), Additional
        Form 10-K Disclosure or Form 8-K Disclosure Information, the Securities
        Administrator will notify electronically the Depositor and such other parties
        to
        this Agreement as are affected by this Amendment and such parties will cooperate
        to prepare any necessary 8-KA, 10-DA or 10-KA. Any Form 15, Form 12b-25 or
        any
        amendment to Form 8-K, 10-D or 10-K shall be signed by a duly authorized
        representative or senior officer in charge of master servicing, as applicable,
        of the Master Servicer. The parties to this Agreement acknowledge that the
        performance by each of the Master Servicer and the Securities Administrator
        of
        its duties under this Section 8.12(d) related to the timely preparation,
        execution and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K,
        10-D or 10-K is contingent upon each such party performing its duties under
        this
        Section. Neither the Master Servicer nor the Securities Administrator shall
        have
        any liability for any loss, expense, damage, claim arising out of or with
        respect to any failure to properly prepare, execute and/or timely file any
        such
        Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where
        such
        failure results from the Securities Administrator’s inability or failure to
        obtain or receive, on a timely basis, any information from any other party
        hereto or any Servicing Function Participant needed to prepare, arrange for
        execution or file such Form 15, Form 12b-25 or any amendments to Forms 8-K,
        10-D
        or 10-K, not resulting from its own negligence, bad faith or willful misconduct.
        The Depositor shall be responsible for all costs and expenses of the Securities
        Administrator related to the preparation and filing of any such amendment.
        Notwithstanding the foregoing, if any Form 10-D needs to be amended solely
        to
        change the information contained in the Monthly Statement, the Securities
        Administrator shall not be required to notify the Depositor of such
        amendment.

      
        
          
          

        

        
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      (e)           Other
        than the Exchange Act reports specified above, the Securities Administrator
        shall have no responsibility to file any items or reports with the Commission
        under the Exchange Act or otherwise; provided,
        however,
        the
        Securities Administrator and Master Servicer will cooperate with the Depositor
        in connection with any additional filings with respect to the Trust as the
        Depositor deems necessary under the Exchange Act.

       

      (f)           The
        Depositor shall pay all costs and expenses of the Securities Administrator
        related to the preparation and filing of any current report on Form 8-K,
        any
        periodic report on Form 10-D (other than the costs and expense of the Securities
        Administrator associated with the preparation and filing of the Monthly
        Statement), or any amendment to any Exchange Act report. Except as otherwise
        provided herein, all expenses incurred by the Securities Administrator in
        connection with its preparation and filing of Exchange Act reports hereunder
        shall not be reimbursable from the Trust.

      

      (g)           Any
        notice required under this Section 8.12 may be given by facsimile or by
        electronic mail.

       

      Section
        8.13           Tax
        Classification of the Excess Reserve Fund Account and the Supplemental Interest
        Trust.
        For
        federal income tax purposes, the Securities Administrator shall treat the
        Excess
        Reserve Fund Account and the Supplemental Interest Trust as beneficially
        owned
        by the holders of the Class X Certificates and shall treat such portion of
        the Trust Fund as a grantor trust, within the meaning of subpart E,
        Part I of subchapter J of the Code. 

      
        
          
          

        

        
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      ARTICLE
        IX

       

      ADMINISTRATION
        OF THE MORTGAGE LOANS

      BY
        THE MASTER SERVICER
        AND THE CREDIT RISK MANAGER

       

      Section
        9.01           Duties
        of the Master Servicer; Enforcement of Servicer’s Obligations.
        (a)  The Master Servicer, on behalf of the Trustee, the Securities
        Administrator, the Depositor and the Certificateholders, shall monitor the
        performance of the obligations of the Servicer under this Agreement, and
        (except
        as set forth below) shall use its reasonable good faith efforts to cause
        the
        Servicer to duly and punctually perform its duties and obligations hereunder.
        Upon the occurrence of an Event of Default of which a Responsible Officer
        of the
        Master Servicer or, if the Master Servicer and the Servicer are the same
        entity,
        the Trustee, has actual knowledge, the Master Servicer or the Trustee, as
        applicable, shall promptly notify the Securities Administrator and the Trustee,
        as applicable, and shall specify in such notice the action, if any, the Master
        Servicer or the Trustee, as applicable, plans to take in respect of such
        default. So long as an Event of Default shall occur and be continuing, the
        Master Servicer or the Trustee, as applicable, shall take the actions specified
        in Article VII. Notwithstanding anything in this Agreement or any Credit
        Risk Management Agreement entered into by a Servicer to the contrary, the
        Master
        Servicer or the Trustee, as applicable, shall have no duty or obligation
        to
        enforce any such Credit Risk Management Agreement or to supervise, monitor
        or
        oversee the activities of the Servicer under such Credit Risk Management
        Agreement with respect to any action taken or not taken by the Servicer at
        the
        direction of the Sponsor or pursuant to a recommendation of the Credit Risk
        Manager.

       

      If
        (i) the Servicer reports a delinquency on a monthly report and
        (ii) the Servicer, by 11 a.m. (New York Time) on the related
        Remittance Date, neither makes an Advance nor provides the Securities
        Administrator, the Master Servicer and the Trustee with an Officer’s Certificate
        certifying that such an Advance would be a Nonrecoverable P&I Advance or
        Nonrecoverable Servicing Advance, then the Master Servicer or, if the Master
        Servicer and the Servicer and the Servicer are the same entity, the Trustee,
        shall deposit in the Distribution Account not later than the Business Day
        immediately preceding the related Distribution Date an Advance in an amount
        equal to the difference between (x) with respect to each Monthly Payment
        due on a Mortgage Loan that is delinquent (other than Relief Act Interest
        Shortfalls) and for which the Servicer was required to make an Advance pursuant
        to this Agreement and (y) amounts deposited in the Collection Account to be
        used for Advances with respect to such Mortgage Loan, except to the extent
        the
        Master Servicer or the Trustee, as applicable, determines any such Advance
        to be
        a Nonrecoverable P&I Advance or Nonrecoverable Servicing Advance. Subject to
        the foregoing and Section 7.02, the Master Servicer or the Trustee, as
        applicable, shall continue to make such Advances for so long as the Servicer
        is
        required to do so under this Agreement. If applicable, on the Business Day
        immediately preceding the Distribution Date, the Master Servicer shall deliver
        an Officer’s Certificate to the Trustee stating that the Master Servicer elects
        not to make an Advance in a stated amount and detailing the reason(s) it
        deems
        the Advance to be a Nonrecoverable P&I Advance or Nonrecoverable Servicing
        Advance. Any amounts deposited by the Master Servicer or the Trustee, as
        applicable, pursuant to this Section 9.01 shall be net of the Servicing Fee
        for the related Mortgage Loans.

      
        
          
          

        

        
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      (b)           The
        Master Servicer or the Trustee (as successor Master Servicer), as applicable,
        shall pay the costs of monitoring the Servicer as required hereunder (including
        costs associated with (i) termination of the Servicer, (ii) the
        appointment of a successor servicer or (iii) the transfer to and assumption
        of the servicing by the Master Servicer or the Trustee, as applicable) and
        shall, to the extent permitted hereunder, seek reimbursement therefor initially
        from the terminated Servicer. In the event the full costs associated with
        the
        transition of servicing responsibilities to the Master Servicer or the Trustee
        (as successor Master Servicer), as applicable, are not paid for by the
        predecessor or successor servicer (provided such successor servicer is not
        the
        Master Servicer or the Trustee(as successor Master Servicer)), the Master
        Servicer or the Trustee, as applicable, may be reimbursed therefor by the
        Trust
        for all costs incurred by the Master Servicer or the Trustee (as successor
        Master Servicer), as applicable, associated with any such transfer of servicing
        duties from the Servicer to the Master Servicer or the Trustee, as applicable,
        or any other successor servicer.

       

      (c)           If
        the Master Servicer or the Trustee (as successor Master Servicer), as
        applicable, assumes the servicing with respect to any of the Mortgage Loans,
        it
        will not assume liability for the representations and warranties of the Servicer
        it replaces or for any errors or omissions of the Servicer.

       

      (d)           Neither
        the Depositor nor the Securities Administrator shall consent to the assignment
        by the Servicer of the Servicer’s rights and obligations under this Agreement
        without the prior written consent of the Master Servicer and the Trustee,
        which
        consent shall not be unreasonably withheld.

       

      Section
        9.02           [Reserved].
        

       

      Section
        9.03           [Reserved].
        

       

      Section
        9.04           Maintenance
        of Fidelity Bond and Errors and Omissions Insurance.
        The
        Master Servicer, at its expense, shall maintain in effect a blanket fidelity
        bond and an errors and omissions insurance policy, affording coverage with
        respect to all directors, officers, directors, employees and other Persons
        acting on such Master Servicer’s behalf, and covering errors and omissions in
        the performance of the Master Servicer’s obligations hereunder. The errors and
        omissions insurance policy and the fidelity bond shall be in such form and
        amount generally acceptable for entities serving as master servicers or
        trustees. 

       

      Section
        9.05           Representations
        and Warranties of the Master Servicer.
        (a) The
        Master Servicer hereby represents and warrants to the Depositor, the Securities
        Administrator and the Trustee, for the benefit of the Certificateholders,
        as of
        the Closing Date that:

       

      (i)           it
        is a national banking association validly existing and in good standing under
        the laws of the United States of America, and as Master Servicer has full
        power
        and authority to transact any and all business contemplated by this Agreement
        and to execute, deliver and comply with its obligations under the terms of
        this
        Agreement, the execution, delivery and performance of which have been duly
        authorized by all necessary corporate action on the part of the Master
        Servicer;

      
        
          
          

        

        
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      (ii)           the
        execution and delivery of this Agreement by the Master Servicer and its
        performance and compliance with the terms of this Agreement will not
        (A) violate the Master Servicer’s charter or bylaws, (B) violate any
        law or regulation or any administrative decree or order to which it is subject
        or (C) 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 contract, agreement or other instrument to which the Master
        Servicer is a party or by which it is bound or to which any of its assets
        are
        subject, which violation, default or breach would materially and adversely
        affect the Master Servicer’s ability to perform its obligations under this
        Agreement;

       

      (iii)           this
        Agreement constitutes, assuming due authorization, execution and delivery
        hereof
        by the other respective parties hereto, a legal, valid and binding obligation
        of
        the Master Servicer, enforceable against it in accordance with the terms
        hereof,
        except as such enforcement may be limited by bankruptcy, insolvency,
        reorganization, moratorium and other laws affecting the enforcement of
        creditors’ rights in general, and by general equity principles (regardless of
        whether such enforcement is considered in a proceeding in equity or at
        law);

       

      (iv)           the
        Master Servicer is not in default with respect to any order or decree of
        any
        court or any order or regulation of any federal, state, municipal or
        governmental agency to the extent that any such default would materially
        and
        adversely affect its performance hereunder;

       

      (v)           the
        Master Servicer is not a party to or bound by any agreement or instrument
        or
        subject to any charter provision, bylaw or any other corporate restriction
        or
        any judgment, order, writ, injunction, decree, law or regulation that may
        materially and adversely affect its ability as Master Servicer to perform
        its
        obligations under this Agreement or that requires the consent of any third
        person to the execution of this Agreement or the performance by the Master
        Servicer of its obligations under this Agreement;

       

      (vi)           no
        litigation is pending or, to the best of the Master Servicer’s knowledge,
        threatened against the Master Servicer which would prohibit its entering
        into
        this Agreement or performing its obligations under this Agreement;

       

      (vii)           no
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Master
        Servicer of or compliance by the Master Servicer with this Agreement or the
        consummation of the transactions contemplated by this Agreement, except for
        such
        consents, approvals, authorizations and orders (if any) as have been obtained;
        and

       

      (viii)           the
        consummation of the transactions contemplated by this Agreement are in the
        ordinary course of business of the Master Servicer.

       

      (b)           It
        is understood and agreed that the representations and warranties set forth
        in
        this Section shall survive the execution and delivery of this Agreement.
        The
        Master Servicer shall indemnify the Depositor, the Servicer, Securities
        Administrator, the Trustee and the Trust and hold them harmless against any
        loss, damages, penalties, fines, forfeitures, reasonable legal fees and related
        costs, judgments, and other reasonable costs and expenses resulting from
        any
        claim, demand, defense or assertion based on or grounded upon, or resulting
        from, a material breach of the Master Servicer’s representations and warranties
        contained in Section 9.05(a) above. It is understood and agreed that the
        enforcement of the obligation of the Master Servicer set forth in this
        Section 9.05 to indemnify the Depositor, the Servicer, Securities
        Administrator, the Trustee and the Trust constitutes the sole remedy of the
        Depositor and the Trustee, respecting a breach of the foregoing representations
        and warranties. Such indemnification shall survive any termination of the
        Master
        Servicer as Master Servicer hereunder, any termination of this Agreement
        and
        resignation or removal of the Trustee.

      
        
          
          

        

        
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      Any
        cause
        of action against the Master Servicer relating to or arising out of the breach
        of any representations and warranties made in this Section shall accrue upon
        discovery of such breach by either the Depositor, the Master Servicer,
        Securities Administrator or the Trustee or notice thereof by any one of such
        parties to the other parties.

       

      Section
        9.06           Master
        Servicer Events of Default.
        Each of
        the following shall constitute a “Master
        Servicer Event of Default”:

       

      (a)           any
        failure by the Master Servicer to deposit in the Distribution Account any
        payment received by it from the Servicer to make any P&I Advance or required
        to be made by the Master Servicer under the terms of this Agreement which
        continues unremedied for a period of two (2) Business Days after the date
        upon which written notice of such failure, requiring the same to be remedied,
        shall have been given to the Master Servicer by any other party
        hereto;

       

      (b)           failure
        by the Master Servicer to duly observe or perform, in any material respect,
        any
        other covenants, obligations or agreements of the Master Servicer as set
        forth
        in this Agreement which failure continues unremedied for a period of thirty
        (30) days after the date on which written notice of such failure, requiring
        the same to be remedied, shall have been given to the Master Servicer by
        the
        Trustee or to the Master Servicer and Trustee by the holders of Certificates
        evidencing at least 25.00% of the Voting Rights;

       

      (c)           a
        decree or order of a court or agency or supervisory authority having
        jurisdiction for the appointment of a conservator or receiver or liquidator
        in
        any insolvency, bankruptcy, readjustment of debt, marshaling of assets and
        liabilities or similar proceedings, or for the winding-up or liquidation
        of its
        affairs, shall have been entered against the Master Servicer and such decree
        or
        order shall have remained in force, undischarged or unstayed for a period
        of
        sixty (60) days;

       

      (d)           the
        Master Servicer shall consent to the appointment of a conservator or receiver
        or
        liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling
        of
        assets and liabilities or similar proceedings of or relating to the Master
        Servicer or relating to all or substantially all of its property;

       

      (e)           the
        Master Servicer shall admit in writing its inability to pay its debts 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 for three (3) Business
        Days;

      
        
          
          

        

        
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      (f)           Except
        as otherwise set forth herein, the Master Servicer attempts to assign this
        Agreement or its responsibilities hereunder or to delegate its duties hereunder
        (or any portion thereof) without the consent of the Securities Administrator
        and
        the Depositor; 

       

      (g)           the
        indictment of the Master Servicer for the taking of any action by the Master
        Servicer, any Affiliate or any director or employee thereof that constitutes
        fraud or criminal activity in the performance of its obligations under this
        Agreement, in each case, where such indictment materially and adversely affects
        the ability of the Master Servicer to perform its obligations under this
        Agreement (subject to the condition that such indictment is not dismissed
        within
        ninety (90) days); or

       

      (h)           failure
        of the Master Servicer to timely provide the Depositor with the assessment,
        attestation and annual statement of compliance required by Item 1122 of
        Regulation AB in accordance with Sections 3.22, 3.23 and 3.24.

       

      In
        each
        and every such case, so long as a Master Servicer Event of Default shall
        not
        have been remedied, in addition to whatever rights the Trustee may have at
        law
        or equity or to damages, including injunctive relief and specific performance,
        the Trustee, by notice in writing to the Master Servicer, may, and upon the
        request of the Holders of Certificates representing at least 51.00% of the
        Voting Rights shall, terminate with cause all the rights and obligations
        of the
        Master Servicer under this Agreement.

       

      Upon
        receipt by the Master Servicer of such written notice, all authority and
        power
        of the Master Servicer under this Agreement, shall pass to and be vested
        in any
        successor master servicer appointed hereunder which accepts such appointments.
        Upon written request from the Trustee or the Depositor, the Master Servicer
        shall prepare, execute and deliver to the successor entity designated by
        the
        Trustee any and all documents and other instruments related to the performance
        of its duties hereunder as the Master Servicer and, place in such successor’s
        possession all such documents with respect to the master servicing of the
        Mortgage Loans and do or cause to be done all other acts or things necessary
        or
        appropriate to effect the purposes of such notice of termination, at the
        Master
        Servicer’s sole expense. The Master Servicer shall cooperate with the Trustee
        and such successor master servicer in effecting the termination of the Master
        Servicer’s responsibilities and rights hereunder, including without limitation,
        the transfer to such successor master servicer for administration by it of
        all
        cash amounts which shall at the time be credited to the Distribution Account
        or
        are thereafter received with respect to the Mortgage Loans.

       

      Section
        9.07           Waiver
        of Default. 
        By a
        written notice, the Trustee may at the direction of Holders of Certificates
        evidencing at least 51.00% of the Voting Rights waive any default by the
        Master
        Servicer in the performance of its obligations hereunder and its consequences.
        Upon any waiver of a past default, such default shall cease to exist, and
        any
        Master Servicer Event of Default 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 thereon except
        to the
        extent expressly so waived.

      
        
          
          

        

        
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      Section
        9.08           Successor
        to the Master Servicer. 
        Upon
        termination of the Master Servicer’s responsibilities and duties under this
        Agreement, the Depositor shall use its reasonable good faith efforts to appoint
        a successor, which shall succeed to all rights and assume all of the
        responsibilities, duties and liabilities of the Master Servicer under this
        Agreement prior to the termination of the Master Servicer. Any successor
        shall
        be a Fannie Mae and Freddie Mac approved servicer in good standing and
        acceptable to the Rating Agencies. In connection with such appointment and
        assumption, the Depositor 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 in
        no event shall the master servicing fee paid to such successor master servicer
        exceed that paid to the Master Servicer hereunder. In the event that the
        Master
        Servicer’s duties, responsibilities and liabilities under this Agreement are
        terminated, the Master Servicer shall continue to discharge its duties and
        responsibilities hereunder until the effective date of such termination with
        the
        same degree of diligence and prudence which it is obligated to exercise under
        this Agreement and shall take no action whatsoever that might impair or
        prejudice the rights of its successor. The termination of the Master Servicer
        shall not become effective until a successor shall be appointed pursuant
        hereto
        and shall in no event (i) relieve the Master Servicer of responsibility for
        the representations and warranties made pursuant to Section 9.05(a) hereof
        and the remedies available to the Trustee under Section 9.05(b) hereof, it
        being understood and agreed that the provisions of Section 9.05 hereof
        shall be applicable to the Master Servicer notwithstanding any such sale,
        assignment, resignation or termination of the Master Servicer or the termination
        of this Agreement; or (ii) affect the right of the Master Servicer to
        receive payment and/or reimbursement of any amounts accruing to it hereunder
        prior to the date of termination (or during any transition period in which
        the
        Master Servicer continues to perform its duties hereunder prior to the date
        the
        successor master servicer fully assumes its duties).

       

      If
        no
        successor master servicer has accepted its appointment within 90 days of
        the time the Trustee receives the resignation of the Master Servicer, the
        Trustee shall be the successor Master Servicer in all respects under this
        Agreement and shall have all the rights and powers and be subject to all
        the
        responsibilities, duties and liabilities relating thereto, including the
        obligation to make Advances; provided,
        however,
        that
        any failure to perform any duties or responsibilities caused by the Master
        Servicer’s failure to provide information required by this Agreement shall not
        be considered a default by the Trustee hereunder. In the Trustee’s capacity as
        such successor, the Trustee shall have the same limitations on liability
        herein
        granted to the Master Servicer. Notwithstanding anything herein to the contrary,
        the Trustee in its role as successor Master Servicer shall have no obligation
        to
        monitor or supervise the Servicer, shall only have the obligation to make
        Advances if it terminates the Servicer pursuant to Section 7.01 (in its role
        as
        successor Master Servicer), and shall make such Advances only pursuant to
        Section 7.02. As compensation therefor, the Trustee shall be entitled to
        receive
        the compensation, reimbursement and indemnities otherwise payable to the
        Master
        Servicer, including the fees and other amounts payable pursuant to
        Section 9.09 hereof. 

       

      Any
        successor master servicer appointed as provided herein, shall execute,
        acknowledge and deliver to the Master Servicer, the Depositor and to the
        Trustee
        an instrument accepting such appointment, wherein the successor shall make
        the
        representations and warranties set forth in Section 9.05 hereof, and
        whereupon such successor shall become fully vested with all of the rights,
        powers, duties, responsibilities, obligations and liabilities of the Master
        Servicer, with like effect as if originally named as a party to this Agreement.
        Any termination or resignation of the Master Servicer or termination of this
        Agreement shall not affect any claims that the Trustee may have against the
        Master Servicer arising out of the Master Servicer’s actions or failure to act
        prior to any such termination or resignation or in connection with the Trustee’s
        assumption of such obligations, duties and responsibilities. 

      
        
          
          

        

        
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      Upon
        a
        successor’s acceptance of appointment as such, the Master Servicer shall notify
        by mail the Trustee and the Depositor of such appointment.

       

      Section
        9.09           Compensation
        of the Master Servicer. 
        As
        compensation for its activities under this Agreement, the Master Servicer
        shall
        be paid the Master Servicing Fee.

       

      Section
        9.10           Merger
        or Consolidation. 
        Any
        Person into which the Master Servicer may be merged or consolidated, or any
        Person resulting from any merger, conversion, other change in form or
        consolidation to which the Master Servicer shall be a party, or any Person
        succeeding to the business of the Master Servicer, shall be the successor
        to the
        Master Servicer 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 or resulting Person to the Master Servicer shall (i) be a
        Person (or have an Affiliate) that is qualified and approved to service mortgage
        loans for Fannie Mae and Freddie Mac (provided further
        that a
        successor Master Servicer that satisfies subclause (i) through an
        Affiliate agrees to service the Mortgage Loans in accordance with all applicable
        Fannie Mae and Freddie Mac guidelines) and (ii) have a net worth of not
        less than $25,000,000.

       

      Section
        9.11           Resignation
        of the Master Servicer. 
        Except
        as otherwise provided in Sections 9.08 and 9.10 hereof, the Master Servicer
        shall not resign from the obligations and duties hereby imposed on it unless
        the
        Master Servicer’s duties hereunder are no longer permissible under applicable
        law or are in material conflict by reason of applicable law with any other
        activities carried on by it and cannot be cured. Any such determination
        permitting the resignation of the Master Servicer shall be evidenced by an
        Opinion of Counsel that shall be independent to such effect delivered to
        the
        Trustee. No such resignation shall become effective until the Trustee shall
        have
        assumed, or a successor master servicer satisfactory to the Trustee and the
        Depositor shall have assumed, the Master Servicer’s responsibilities and
        obligations under this Agreement. Notice of such resignation shall be given
        promptly by the Master Servicer and the Depositor to the Trustee.

       

      If
        at any
        time, Wells Fargo, as Master Servicer, resigns under this Section 9.11, or
        is removed as Master Servicer pursuant to Section 9.06, then at such time
        Wells Fargo shall also resign (and shall be entitled to resign) as Securities
        Administrator under this Agreement.

       

      Section
        9.12           Assignment
        or Delegation of Duties by the Master Servicer. 
        Except
        as expressly provided herein, the Master 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
        Master Servicer; provided,
        however,
        that
        the Master Servicer shall have the right with the prior written consent of
        the
        Depositor (which shall not be unreasonably withheld or delayed), and upon
        delivery to the Trustee and the Depositor of a letter from each Rating Agency
        to
        the effect that such action shall not result in a downgrade of the ratings
        assigned to any of the Certificates, to delegate or assign to or subcontract
        with or authorize or appoint any qualified Person to perform and carry out
        any
        duties, covenants or obligations to be performed and carried out by the Master
        Servicer hereunder. Notice of such permitted assignment shall be given promptly
        by the Master Servicer to the Depositor and the Trustee. If, pursuant to
        any
        provision hereof, the duties of the Master Servicer are transferred to a
        successor master servicer, the entire compensation payable to the Master
        Servicer pursuant hereto shall thereafter be payable to such successor master
        servicer but in no event shall the fee payable to the successor master servicer
        exceed that payable to the predecessor master servicer.

      
        
          
          

        

        
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      Section
        9.13           Limitation
        on Liability of the Master Servicer. 
        Neither
        the Master Servicer nor any of the directors, officers, employees or agents
        of
        the Master Servicer shall be under any liability to the Trustee or the
        Certificateholders for any action taken or for refraining from the taking
        of any
        action in good faith pursuant to this Agreement, or for errors in judgment;
        provided,
        however,
        that
        this provision shall not protect the Master Servicer or any such person against
        any liability that would otherwise be imposed by reason of willful malfeasance,
        bad faith or negligence in the performance of its duties or by reason of
        reckless disregard for its obligations and duties under this Agreement. The
        Master Servicer and any director, officer, employee or agent of the Master
        Servicer may rely in good faith on any document prima facie properly executed
        and submitted by any Person respecting any matters arising hereunder. The
        Master
        Servicer shall be under no obligation to appear in, prosecute or defend any
        legal action that is not incidental to its duties as Master Servicer with
        respect to the Mortgage Loans under this Agreement and that in its opinion
        may
        involve it in any expenses or liability; provided,
        however,
        that
        the Master Servicer may in its sole discretion undertake any such action
        that it
        may deem necessary or desirable in respect to this Agreement and the rights
        and
        duties of the parties hereto and the interests of the Certificateholders
        hereunder. In such event, the legal expenses and costs of such action and
        any
        liability resulting therefrom, shall be liabilities of the Trust, and the
        Master
        Servicer shall be entitled to be reimbursed therefor out of the Distribution
        Account in accordance with the provisions of Section 9.09 and
        Section 9.14.

       

      The
        Master Servicer shall not be liable under this Agreement for any acts or
        omissions of the Servicer except to the extent that damages or expenses are
        incurred as a result of such acts or omissions and such damages and expenses
        would not have been incurred but for the negligence, willful malfeasance,
        bad
        faith or recklessness of the Master Servicer in supervising, monitoring and
        overseeing the performance of the obligations of the Servicer as required
        under
        this Agreement. 

       

      Section
        9.14           Indemnification;
        Third Party Claims. 
        The
        Master Servicer agrees to indemnify and hold harmless the Trustee as successor
        Master Servicer from and against any and all claims, losses, penalties, fines,
        forfeitures, legal fees and related costs, judgments, and any other costs,
        liability, fees and expenses (including reasonable attorneys’ fees) that the
        Trustee may sustain as a result of such liability or obligations of the Master
        Servicer and in connection with the Trustee’s assumption (not including the
        Trustee’s performance, except to the extent that costs or liability of the
        Trustee are created or increased as a result of negligent or wrongful acts
        or
        omissions of the Master Servicer prior to its replacement as Master Servicer)
        of
        the Master Servicer’s obligations, duties or responsibilities under such
        agreement. 

      
        
          
          

        

        
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      The
        Trust
        will indemnify the Master Servicer and hold it harmless against any and all
        claims, losses, penalties, fines, forfeitures, legal fees and related costs,
        judgments, and any other costs, liabilities, fees and expenses that the Master
        Servicer may incur or sustain in connection with, arising out of or related
        to
        this Agreement or the Certificates, except to the extent that any such loss,
        liability or expense is related to (i) a material breach of the Master
        Servicer’s representations and warranties in this Agreement, (ii) the
        Master Servicer’s willful malfeasance, bad faith or negligence or by reason of
        its reckless disregard of its duties and obligations under this Agreement
        or
        (iii) failure to provide the assessment, attestation and annual statement
        of
        compliance in accordance with Sections 3.22, 3.23 and 3.24; provided that
        any
        such loss, liability or expense constitutes an “unanticipated expense incurred
        by the REMIC” within the meaning of Treasury Regulations
        Section 1.860G-1(b)(3)(ii). The Master Servicer shall be entitled to
        reimbursement for any such indemnified amount from funds on deposit in the
        Distribution Account. The Master Servicer shall not be liable for any course
        of
        action taken by the Servicer with respect to loss mitigation of defaulted
        Mortgage Loans at the direction of the Credit Risk Manager or the Sponsor
        pursuant to a Credit Risk Management Agreement or otherwise. Further, the
        Master
        Servicer shall not be liable for the performance by the Servicer under any
        Credit Risk Management Agreement.

       

      Section
        9.15           Duties
        of the Credit Risk Manager.

       

      (a)           The
        Certificateholders, by their purchase and acceptance of the Certificates,
        appoint Clayton Fixed Income Services Inc., formerly known as The Murrayhill
        Company, as Credit Risk Manager. For and on behalf of the Depositor and the
        Trust, the Credit Risk Manager will provide reports and recommendations
        concerning certain delinquent and defaulted Mortgage Loans, and as to the
        collection of any Prepayment Charges with respect to the Mortgage Loans.
        Such
        reports and recommendations will be based upon information provided pursuant
        to
        Credit Risk Management Agreements to the Credit Risk Manager by the Servicer
        and
        the Master Servicer. The Credit Risk Manager shall look solely to the Servicer
        and the Master Servicer for all information and data (including loss and
        delinquency information and data) and loan level information and data relating
        to the servicing of the Mortgage Loans and neither the Securities Administrator
        nor the Trustee shall have any obligation to provide any such information
        to the
        Credit Risk Manager and shall not otherwise have any responsibility under
        the
        Credit Risk Management Agreements. The Credit Risk Manager shall be entitled
        to
        compensation from the Trust equal to the Credit Risk Manager Fee.

       

      (b)           On
        or about the 15th calendar day of each month, the Credit Risk Manager shall
        have
        prepared and shall make available to the Depositor, the following
        reports:

       

      (i)           Watchlist
        Report:
        A
        listing of individual Mortgage Loans that are of concern to the Credit Risk
        Manager. Each Watchlist Report shall contain a listing of Mortgage Loans
        in any
        delinquency status, including current and paid-off loans, and may contain
        the
        comments of the Credit Risk Manager in its sole discretion. The Watchlist
        Report
        shall be presented in substantially the same format attached hereto as Exhibit
        R-1;

       

      (ii)           Loss
        Severity Report:
        A
        compilation and summary of all losses, indicating the loan loss severity
        of the
        Mortgage Loans. Each Loss Severity Report shall include detail of all losses
        reported by the Servicer, as Realized Losses, except those for which the
        Servicer has not provided detail adequate for reporting purposes. The Loss
        Severity Report shall be presented in substantially the same format attached
        hereto as Exhibit R-2;

      
        
          
          

        

        
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      (iii)           Prepayment
        Charges Report:
        A
        summary of Prepayment Charges assessed or waived by the Servicer. The Prepayment
        Charges Report shall be presented in substantially the same format attached
        hereto as Exhibit R-3; and

       

      (iv)           Analytics
        Report:
        Analytics Reports shall include statistical and/or graphical portrayals
        of:

       

      (A)           
        Delinquency
        Trend:
        The
        delinquency trend, over time, of the Mortgage Loans;

       

      (B)           
        Prepayment
        Analysis:
        The
        constant prepayment rate “CPR” experience of the Mortgage Loans;
        and

       

      (C)           
        Standard
        Default Assumption:
        The
        Standard Default Assumption experience of the Mortgage Loans.

       

      The
        Analytics Report shall be presented in substantially the same format attached
        hereto as Exhibit R-4.

       

      Section
        9.16           Limitation
        Upon Liability of the Credit Risk Manager.
        Neither
        the Credit Risk Manager, nor any of the directors, officers, employees or
        agents
        of the Credit Risk Manager, shall be under any liability to the Trustee,
        the
        Securities Administrator, the Certificateholders or the Depositor for any
        action
        taken or for refraining from the taking of any action in good faith pursuant
        to
        this Agreement, in reliance upon information provided by the Servicer, and
        the
        Master Servicer under the Credit Risk Management Agreements or for errors
        in
        judgment; provided, however,
        that
        this provision shall not protect the Credit Risk Manager or any such person
        against liability that would otherwise be imposed by reason of willful
        malfeasance, bad faith or gross negligence in its performance of its duties
        or
        by reason of reckless disregard for its obligations and duties under this
        Agreement or the Credit Risk Management Agreements. The Credit Risk Manager
        and
        any director, officer, employee or agent of the Credit Risk Manager 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, and may
        rely
        in good faith upon the accuracy of information furnished the Servicer and
        the
        Master Servicer pursuant to the Credit Risk Management Agreements in the
        performance of its duties thereunder and hereunder.

       

      Section
        9.17           Removal
        and Resignation of Credit Risk Manager.
        The
        Credit Risk Manager may be removed as Credit Risk Manager by Certificateholders
        holding not less than 66-2/3% of the Voting Rights of Certificates, in the
        exercise of its or their sole discretion, at any time, without cause, upon
        ten
        (10) days prior written notice. The Certificateholders shall provide such
        written notice to the Trustee and upon receipt of such notice, the Trustee
        shall
        provide written notice to the Credit Risk Manager of its removal, effective
        upon
        receipt of such notice. In addition, on August 4, 2011 and each anniversary
        date
        thereafter, upon thirty (30) days prior written notice, the Credit Risk Manager
        will have the option to resign as Credit Risk Manager and the Depositor shall
        have the option to terminate the Credit Risk Manager without cause.

      
        
          
          

        

        
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      ARTICLE
        X

       

      CONCERNING
        THE SECURITIES ADMINISTRATOR

       

      Section
        10.01           Duties
        of Securities Administrator. 
        The
        Securities Administrator shall undertake to perform such duties and only
        such
        duties as are specifically set forth in this Agreement.

       

      The
        Securities Administrator, upon receipt of all resolutions, certificates,
        statements, opinions, reports, documents, orders or other instruments furnished
        to the Securities Administrator that are specifically required to be furnished
        pursuant to any provision of this Agreement, shall examine them to determine
        whether they are in the form required by this Agreement; provided,
        however,
        that
        the Securities Administrator shall not be responsible for the accuracy or
        content of any such resolution, certificate, statement, opinion, report,
        document, order or other instrument. If any such instrument is found not
        to
        conform in any material respect to the requirements of this Agreement, the
        Securities Administrator shall notify the Certificateholders of such
        non-conforming instrument in the event the Securities Administrator, after
        so
        requesting, does not receive a satisfactorily corrected instrument.

       

      No
        provision of this Agreement shall be construed to relieve the Securities
        Administrator of liability for its own negligent action, its own negligent
        failure to act or its own willful misconduct; provided,
        however,
        that:

       

      (i)           the
        duties and obligations of the Securities Administrator shall be determined
        solely by the express provisions of this Agreement, the Securities Administrator
        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 Securities
        Administrator and the Securities Administrator 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 Securities Administrator
        and
        conforming to the requirements of this Agreement which it believed in good
        faith
        to be genuine and to have been duly executed by the proper authorities
        respecting any matters arising hereunder;

       

      (ii)           the
        Securities Administrator shall not be liable for any error of judgment made
        in
        good faith by a Responsible Officer or Responsible Officers of the Securities
        Administrator, unless it shall be conclusively determined by a court of
        competent jurisdiction, such determination not subject to appeal, that the
        Securities Administrator was negligent in ascertaining the pertinent
        facts;

       

      (iii)           the
        Securities Administrator shall not be liable with respect to any action or
        inaction taken, suffered or omitted to be taken by it in good faith in
        accordance with the direction of Holders of Certificates evidencing not less
        than 25.00% of the Voting Rights of Certificates relating to the time, method
        and place of conducting any proceeding for any remedy available to the
        Securities Administrator, or exercising or omitting to exercise any trust
        or
        power conferred upon the Securities Administrator under this Agreement;
        and

      
        
          
          

        

        
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      (iv)           the
        Securities Administrator shall not be accountable, shall have no liability
        and
        makes no representation as to any acts or omissions hereunder of the Master
        Servicer or the Trustee.

       

      Section
        10.02           Certain
        Matters Affecting the Securities Administrator. 
        Except
        as otherwise provided in Section 10.01:

       

      (i)           the
        Securities Administrator may request and conclusively rely upon and shall
        be
        fully protected in acting or refraining from acting upon any resolution,
        Officer’s Certificate, certificate of auditors or any other certificate,
        statement, instrument, opinion, report, notice, request, consent, order,
        appraisal, bond or other paper or document believed by it to be genuine and
        to
        have been signed or presented by the proper party or parties and the Securities
        Administrator shall have no responsibility to ascertain or confirm the
        genuineness of any signature of any such party or parties;

       

      (ii)           the
        Securities Administrator may consult with counsel, financial advisers or
        accountants and the advice of any such counsel, financial advisers or
        accountants 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
        Securities Administrator shall not be liable for any action or inaction 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;

       

      (iv)           the
        Securities Administrator 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 so to do by Holders of Certificates
        evidencing not less than 25.00% of the Voting Rights allocated to each
        Class of Certificates; provided,
        however,
        that if
        the payment within a reasonable time to the Securities Administrator of the
        costs, expenses or liabilities likely to be incurred by it in the making
        of such
        investigation is, in the opinion of the Securities Administrator, not reasonably
        assured to the Securities Administrator by the security afforded to it by
        the
        terms of this Agreement, the Securities Administrator may require reasonable
        indemnity against such expense or liability as a condition to so proceeding.
        Nothing in this clause (iv) shall derogate from the obligation of the
        Master Servicer to observe any applicable law prohibiting disclosure of
        information regarding the Mortgagors, provided that the Master Servicer shall
        have no liability for disclosure required by this Agreement;

       

      (v)           the
        Securities Administrator 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 the Securities Administrator shall not be
        responsible for any misconduct or negligence on the part of any such agent,
        attorney or custodian appointed by the Securities Administrator with due
        care;

      
        
          
          

        

        
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      (vi)           the
        Securities Administrator shall not be required to risk or expend its own
        funds
        or otherwise incur any financial liability in the performance of any of its
        duties or in the exercise of any of its rights or powers hereunder if it
        shall
        have reasonable grounds for believing that repayment of such funds or adequate
        indemnity against such risk or liability is not assured to it, and none of
        the
        provisions contained in this Agreement shall in any event require the Securities
        Administrator to perform, or be responsible for the manner of performance
        of,
        any of the obligations of the Master Servicer or the Trustee under this
        Agreement;

       

      (vii)           the
        Securities Administrator shall be under no obligation to exercise any of
        the
        trusts, 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
        Securities Administrator reasonable security or indemnity satisfactory to
        the
        Securities Administrator against the costs, expenses and liabilities which
        may
        be incurred therein or thereby; and

       

      (viii)           the
        Securities Administrator shall have no obligation to appear in, prosecute
        or
        defend any legal action that is not incidental to its duties hereunder and
        which
        in its opinion may involve it in any expense or liability; provided,
        however,
        that in the event of a breach or default by the Derivative
        Counterparty
        under the Cap Agreement or the Swap Agreement, the Securities Administrator
        shall pursue all legal remedies available against the Derivative
        Counterparty
        under the Cap Agreement or the Swap Agreement, as applicable, in consultation
        with the Depositor; provided,
        further,
        that
        the Securities Administrator may in its discretion undertake any such action
        that 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 Trustee,
        the
        Securities Administrator and the Certificateholders hereunder. In such event,
        the legal expenses and costs of such action and any liability resulting
        therefrom shall be expenses, costs and liabilities of the Trust Fund, and
        the
        Securities Administrator shall be entitled to be reimbursed therefor out
        of the
        Collection Account.

       

      The
        Securities Administrator shall have no duty (A) to undertake or ensure any
        recording, filing, or depositing of this Agreement or any agreement referred
        to
        herein or any financing statement or continuation statement evidencing a
        security interest, or to see to the maintenance of any such recording or
        filing
        or depositing or to any rerecording, refiling or redepositing thereof,
        (B) to procure or maintain any insurance or (C) to pay or discharge
        any tax, assessment, or other governmental charge or any lien or encumbrance
        of
        any kind owing with respect to, assessed or levied against, any part of the
        Trust Fund other than from funds available in the Distribution
        Account.

       

      Section
        10.03           Securities
        Administrator Not Liable for Certificates or Mortgage Loans. 
        The
        recitals contained herein and in the Certificates shall be taken as the
        statements of the Depositor or the transferor, as the case may be, and the
        Securities Administrator assumes no responsibility for their correctness.
        The
        Securities Administrator makes no representations as to the validity or
        sufficiency of this Agreement, the Cap Agreement, the Swap Agreement, or
        of the
        Certificates or of any Mortgage Loan or related document other than with
        respect
        to the Securities Administrator’s execution and authentication of the
        Certificates. The Securities Administrator shall not be accountable for the
        use
        or application by the Depositor, the Trustee, the Master Servicer, or the
        Derivative Counterparty of any funds paid to the Depositor, the Trustee,
        the
        Master Servicer or the Derivative Counterparty in respect of the Mortgage
        Loans
        or deposited in or withdrawn from any Collection Account or any other fund
        or
        account with respect to the Certificates by the Depositor, the Trustee, the
        Master Servicer or the Derivative Counterparty.

      
        
          
          

        

        
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      The
        Securities Administrator executes the Certificates not in its individual
        capacity but solely as Securities Administrator of the Trust Fund created
        by
        this Agreement, in the exercise of the powers and authority conferred and
        vested
        in it by this Agreement. Each of the undertakings and agreements made on
        the
        part of the Securities Administrator on behalf of the Trust Fund in the
        Certificates is made and intended not as a personal undertaking or agreement
        by
        the Securities Administrator but is made and intended for the purpose of
        binding
        only the Trust Fund.

       

      Section
        10.04           Securities
        Administrator May Own Certificates. 
        The
        Securities Administrator in its individual or any other capacity may become
        the
        owner or pledgee of Certificates and may transact business with the parties
        hereto and their Affiliates with the same rights as it would have if it were
        not
        the Securities Administrator.

       

      Section
        10.05           Securities
        Administrator’s Fees and Expenses. 
        The
        Securities Administrator shall be entitled to the investment income earned
        on
        amounts in the Distribution Account during the Securities Administrator Float
        Period. The Securities Administrator and any director, officer, employee,
        agent
        or “control person” within the meaning of the Securities Act of 1933, as
        amended, and the Securities Exchange Act of 1934, as amended (“Control
        Person”),
        of
        the Securities Administrator shall be indemnified by the Trust and held harmless
        against any loss, liability or expense (including reasonable attorney’s fees)
        (i) incurred in connection with any claim or legal action relating to
        (a) this Agreement, (b) the Mortgage Loans or (c) the
        Certificates, other than any loss, liability or expense incurred by reason
        of
        willful misfeasance, bad faith or negligence in the performance of any of
        the
        Securities Administrator’s duties hereunder, (ii) incurred in connection
        with the performance of any of the Securities Administrator’s duties hereunder,
        other than any loss, liability or expense incurred by reason of willful
        misfeasance, bad faith or negligence in the performance of any of the Securities
        Administrator’s duties hereunder or (iii) incurred by reason of any action
        of the Securities Administrator taken at the direction of the
        Certificateholders, provided that any such loss, liability or expense
        constitutes an “unanticipated expense incurred by the REMIC” within the meaning
        of Treasury Regulations Section 1.860G 1(b)(3)(ii). Such indemnity shall
        survive the termination of this Agreement or the resignation or removal of
        the
        Securities Administrator hereunder. Without limiting the foregoing, and except
        for any such expense, disbursement or advance as may arise from the Securities
        Administrator’s negligence, bad faith or willful misconduct, or which would not
        be an “unanticipated expense” within the meaning of the second preceding
        sentence, the Securities Administrator shall be reimbursed by the Trust for
        all
        reasonable expenses, disbursements and advances incurred or made by the
        Securities Administrator in accordance with any of the provisions of this
        Agreement with respect to: (A) the reasonable compensation and the expenses
        and disbursements of its counsel not associated with the closing of the issuance
        of the Certificates, (B) the reasonable compensation, expenses and
        disbursements of any accountant, engineer, appraiser or other agent that
        is not
        regularly employed by the Securities Administrator, to the extent that the
        Securities Administrator must engage such Persons to perform acts or services
        hereunder and (C) printing and engraving expenses in connection with
        preparing any Definitive Certificates. The Trust shall fulfill its obligations
        under this paragraph from amounts on deposit from time to time in the
        Distribution Account.

      
        
          
          

        

        
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      The
        Securities Administrator shall be required to pay all expenses incurred by
        it in
        connection with its activities hereunder and shall not be entitled to
        reimbursement therefor except as provided in this Agreement.

       

      Section
        10.06           Eligibility
        Requirements for Securities Administrator. 
        The
        Securities Administrator hereunder shall at all times be a corporation or
        association organized and doing business under the laws 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,
        subject to supervision or examination by federal or state authority and with
        a
        credit rating of at least investment grade. If such corporation or association
        publishes reports of condition at least annually, pursuant to law or to the
        requirements of the aforesaid supervising or examining authority, then for
        the
        purposes of this Section 10.06 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 condition so published.
        In
        case at any time the Securities Administrator shall cease to be eligible
        in
        accordance with the provisions of this Section 10.06, the Securities
        Administrator shall resign immediately in the manner and with the effect
        specified in Section 10.07 hereof. The entity serving as Securities
        Administrator may have normal banking and trust relationships with the Depositor
        and its affiliates or the Trustee and its affiliates.

       

      Any
        successor securities administrator (i) may not be the Originator, the
        Master Servicer, the Servicer, the Depositor or an affiliate of the Depositor
        unless such successor securities administrator’s functions are operated through
        an institutional trust department of the Securities Administrator,
        (ii) must be authorized to exercise corporate trust powers under the laws
        of its jurisdiction of organization, and (iii) must be rated at least
“A/F1” by Fitch, if Fitch is a Rating Agency and if rated by Fitch, or the
        equivalent rating by Standard & Poor’s or Moody’s. If no successor
        securities administrator shall have been appointed and shall have accepted
        appointment within 60 days after the Securities Administrator ceases to be
        the Securities Administrator pursuant to Section 10.07, then the Trustee
        may (but shall not be obligated to) become the successor securities
        administrator. The Depositor shall appoint a successor to the Securities
        Administrator in accordance with Section 10.07. The Trustee shall notify
        the Rating Agencies of any change of Securities Administrator.

       

      Section
        10.07           Resignation
        and Removal of Securities Administrator. 
        The
        Securities Administrator may at any time resign by giving written notice
        of
        resignation to the Depositor and the Trustee and each Rating Agency not less
        than 60 days before the date specified in such notice when, subject to
        Section 10.08, such resignation is to take effect, and acceptance by a
        successor securities administrator in accordance with Section 10.08 meeting
        the qualifications set forth in Section 10.06. If no successor securities
        administrator meeting such qualifications shall have been so appointed by
        the
        Depositor and have accepted appointment within 30 days after the giving of
        such notice of resignation, the resigning Securities Administrator may petition
        any court of competent jurisdiction for the appointment of a successor
        securities administrator.

      
        
          
          

        

        
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      If
        at any
        time the Securities Administrator shall cease to be eligible in accordance
        with
        the provisions of Section 10.06 hereof and shall fail to resign after
        written request thereto by the Depositor, or if at any time the Securities
        Administrator shall become incapable of acting, or shall be adjudged as bankrupt
        or insolvent, or a receiver of the Securities Administrator or of its property
        shall be appointed, or any public officer shall take charge or control of
        the
        Securities Administrator or of its property or affairs for the purpose of
        rehabilitation, conservation or liquidation, or a tax is imposed with respect
        to
        the Trust Fund by any state in which the Securities Administrator or the
        Trust
        Fund is located and the imposition of such tax would be avoided by the
        appointment of a different securities administrator, then the Depositor may
        remove the Securities Administrator and appoint a successor securities
        administrator by written instrument, in triplicate, one copy of which instrument
        shall be delivered to the Securities Administrator so removed, one copy of
        which
        shall be delivered to the Master Servicer and one copy to the successor
        securities administrator.

       

      The
        Holders of Certificates entitled to at least 51.00% of the Voting Rights
        may at
        any time remove the Securities Administrator and appoint a successor securities
        administrator 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 by the successor securities administrator
        to the Trustee, one complete set to the Securities Administrator so removed
        and
        one complete set to the successor so appointed. Notice of any removal of
        the
        Securities Administrator shall be given to the Derivative Counterparty and
        each
        Rating Agency by the successor securities administrator.

       

      Any
        resignation or removal of the Securities Administrator and appointment of
        a
        successor securities administrator pursuant to any of the provisions of this
        Section 10.07 shall become effective upon acceptance by the successor
        securities administrator of appointment as provided in Section 10.08
        hereof.

       

      If
        at any
        time, Wells Fargo, as Securities Administrator, resigns under this
        Section 10.07, or is removed as Securities Administrator pursuant to this
        Section 10.07, then at such time Wells Fargo shall also resign (and shall
        be entitled to resign) as Master Servicer under this Agreement.

       

      Section
        10.08           Successor
        Securities Administrator. 
        Any
        successor securities administrator (which may be the Trustee) appointed as
        provided in Section 10.07 hereof shall execute, acknowledge and deliver to
        the Depositor and to its predecessor Securities Administrator and the Trustee
        an
        instrument accepting such appointment hereunder and thereupon the resignation
        or
        removal of the predecessor Securities Administrator shall become effective
        and
        such successor securities administrator, 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 Securities Administrator herein. The Depositor, the Trustee, the
        Master
        Servicer and the predecessor Securities Administrator 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 securities
        administrator all such rights, powers, duties, and obligations.

      
        
          
          

        

        
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      No
        successor securities administrator shall accept appointment as provided in
        this
        Section 10.08 unless at the time of such acceptance such successor
        securities administrator shall be eligible under the provisions of
        Section 10.06 hereof and its appointment shall not adversely affect then
        current rating of the Certificates, as confirmed in writing by each Rating
        Agency.

       

      Upon
        acceptance by a successor securities administrator of appointment as provided
        in
        this Section 10.08, the Depositor shall mail notice of the succession of
        such Securities Administrator hereunder to all Holders of Certificates and
        the
        Derivative Counterparty. If the Depositor fails to mail such notice within
        10 days after acceptance by the successor securities administrator of
        appointment, the successor securities administrator shall cause such notice
        to
        be mailed at the expense of the Depositor.

       

      Section
        10.09           Merger
        or Consolidation of Securities Administrator. 
        Any
        corporation or other entity into which the Securities Administrator may be
        merged or converted or with which it may be consolidated or any corporation
        or
        other entity resulting from any merger, conversion or consolidation to which
        the
        Securities Administrator shall be a party, or any corporation or other entity
        succeeding to the business of the Securities Administrator, shall be the
        successor of the Securities Administrator hereunder, provided that such
        corporation or other entity shall be eligible under the provisions of
        Section 10.06 hereof, without the execution or filing of any paper or
        further act on the part of any of the parties hereto, anything herein to
        the
        contrary notwithstanding.

       

      Section
        10.10           Assignment
        or Delegation of Duties by the Securities Administrator. 
        Except
        as expressly provided herein, the Securities Administrator 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 Securities Administrator; provided,
        however,
        that
        the Securities Administrator shall have the right with the prior written
        consent
        of the Depositor (which shall not be unreasonably withheld or delayed), and
        upon
        delivery to the Trustee, the Derivative Counterparty and the Depositor of
        a
        letter from each Rating Agency to the effect that such action shall not result
        in a downgrade of the ratings assigned to any of the Certificates, to delegate
        or assign to or subcontract with or authorize or appoint any qualified Person
        to
        perform and carry out any duties, covenants or obligations to be performed
        and
        carried out by the Securities Administrator hereunder. Notice of such permitted
        assignment shall be given promptly by the Securities Administrator to the
        Depositor and the Trustee. If, pursuant to any provision hereof, the duties
        of
        the Securities Administrator are transferred to a successor securities
        administrator, the entire compensation payable to the Securities Administrator
        pursuant hereto shall thereafter be payable to such successor securities
        administrator but in no event shall the fee payable to the successor securities
        administrator exceed that payable to the predecessor securities
        administrator.

      
        
          
          

        

        
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      ARTICLE
        XI

       

      TERMINATION

       

      Section
        11.01           Termination
        upon Liquidation or Purchase of the Mortgage Loans.
        Subject
        to Section 11.03, the obligations and responsibilities of the Depositor,
        the Master Servicer, the Servicer, the Credit Risk Manager the Securities
        Administrator and the Trustee created hereby with respect to the Trust Fund
        shall terminate upon the earlier of (a) the exercise of an Option to Purchase,
        on or after the Optional Termination Date, in the aggregate of all Mortgage
        Loans (and REO Properties) at the price (the “Termination
        Price”)
        equal
        to the sum of (i) 100.00% of the unpaid principal balance of each Mortgage
        Loan (other than in respect of REO Property) plus accrued and unpaid interest
        thereon at the applicable Mortgage Rate, (ii) the lesser of (x) the
        appraised value of any REO Property as determined by the higher of two
        appraisals completed by two independent appraisers selected by the Servicer
        at
        the expense of that Trust Fund and (y) the unpaid principal balance of each
        Mortgage Loan related to any REO Property, in each case plus accrued and
        unpaid
        interest thereon at the applicable Mortgage Rate, (iii) all unreimbursed
        P&I Advances, Servicing Advances and indemnification payments payable to the
        Servicer, (iv) any unreimbursed indemnification payments payable to the
        Trustee, the Securities Administrator, the Master Servicer or the Depositor
        under this Agreement and (v) any Swap Termination Payments payable to the
        Swap
        Counterparty as a result of a termination pursuant to this Section 11.01
        and
        (b) the later of (i) the maturity or other liquidation (or any Advance
        with respect thereto) of the last Mortgage Loan remaining in the Trust Fund
        and
        the disposition of all REO Property and (ii) the distribution to
        Certificateholders of all amounts required to be distributed to them pursuant
        to
        this Agreement. In no event shall the trusts created hereby continue beyond
        the
        expiration of 21 years from the death of the 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.

       

      Notwithstanding
        anything to the contrary contained herein, no such purchase by the Master
        Servicer (either upon instruction from the Depositor or voluntarily) shall
        be
        permitted unless (i) after distribution of the proceeds thereof to the
        Certificateholders (other than the Holders of the Class X, Class P and
        Residual Certificates and any other Classes of Certificates which constitute
        NIM
        Securities) pursuant to Section 11.02, the distribution of the remaining
        proceeds to the Class X and Class P Certificates is sufficient to pay
        the outstanding principal amount of and accrued and unpaid interest on the
        NIM
        Securities, to the extent the NIM Securities are then outstanding, or
        (ii) prior to such purchase, the Master Servicer, remits to the Securities
        Administrator an amount that, together with such remaining proceeds, will
        be
        sufficient to pay the outstanding principal amount of, and accrued and unpaid
        interest on, the NIM Securities, to the extent the NIM Securities are then
        outstanding.

       

      Section
        11.02           Final
        Distribution on the Certificates.
        If on
        any Remittance Date, the Master Servicer determines that there are no
        Outstanding Mortgage Loans and no other funds or assets in the Trust Fund
        other
        than the funds in any Collection Account, the Master Servicer shall direct
        the
        Securities Administrator promptly to send a Notice of Final Distribution
        to each
        Certificateholder and to the Swap Counterparty. If the Master Servicer (upon
        instruction from the Depositor or voluntarily) elects to exercise their option
        to purchase the Mortgage Loans pursuant to clause (a) of
        Section 11.01, at least 20 days prior to the date the Notice of Final
        Distribution is to be mailed to the affected Certificateholders, the Master
        Servicer shall notify the Depositor, the Swap Counterparty and the Securities
        Administrator of (a) the date on which the Master Servicer intends to
        exercise such purchase option and (b) the Termination Price.

      
        
          
          

        

        
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      A
        Notice
        of Final Distribution, specifying the Distribution Date on which
        Certificateholders may surrender their Certificates for payment of the final
        distribution and cancellation, shall be given promptly by the Securities
        Administrator by letter to Certificateholders mailed not earlier than the
        10th
        day and not later than the 15th day of the month of such final distribution.
        Any
        such Notice of Final Distribution shall specify (a) the Distribution Date
        upon which final distribution on the Certificates will be made upon presentation
        and surrender of Certificates at the office therein designated, (b) the
        amount of such final distribution, (c) the location of the office or agency
        at which such presentation and surrender must be made and (d) 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 therein specified. The Securities Administrator
        will
        give such Notice of Final Distribution to the Swap Counterparty and to each
        Rating Agency at the time such Notice of Final Distribution is given to
        Certificateholders.

       

      In
        the
        event such Notice of Final Distribution is given, the Servicer shall cause
        all
        funds in the Collection Account to be remitted to the Master Servicer for
        deposit in the Distribution Account on the Business Day prior to the applicable
        Distribution Date in an amount equal to the final distribution in respect
        of the
        Certificates. Upon such final deposit with respect to the Trust Fund and
        the
        receipt by the Custodian of a Request for Release therefor, the Custodian
        shall
        promptly release to the Servicer the Custodial Files for the Mortgage
        Loans.

       

      Upon
        presentation and surrender of the Certificates, the Securities Administrator
        shall cause to be distributed to the Certificateholders of each
        Class (after reimbursement of all amounts due to the Servicer, the Master
        Servicer, the Securities Administrator, the Depositor, the Trustee and the
        Swap
        Counterparty hereunder), in each case on the final Distribution Date and
        in the
        order set forth in Section 4.02, in proportion to their respective
        Percentage Interests, with respect to Certificateholders of the same Class,
        up
        to an amount equal to (i) as to each Class of Regular Certificates
        (except the Class X Certificates), the Certificate Balance thereof plus for
        each such Class and the Class X Certificates accrued interest thereon
        in the case of an interest-bearing Certificate and all other amounts to which
        such Classes are entitled pursuant to Section 4.02 and (ii) as to the
        Residual Certificates, the amount, if any, which remains on deposit in the
        Distribution Account (other than the amounts retained to meet claims) after
        application pursuant to clause (i) above.

       

      In
        the
        event that any affected Certificateholders shall not surrender Certificates
        for
        cancellation within six months after the date specified in the Notice of
        Final
        Distribution, the Securities Administrator 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
        six months after such second notice all the applicable Certificates shall
        not
        have been surrendered for cancellation, the Securities Administrator may
        take
        appropriate steps, or may appoint an agent to take appropriate steps, to
        contact
        the remaining Certificateholders concerning surrender of their Certificates,
        and
        the cost thereof shall be paid out of the funds and other assets which remain
        a
        part of the Trust Fund. If within one year after the second notice all
        Certificates shall not have been surrendered for cancellation, the Class R
        Certificateholders shall be entitled to all unclaimed funds and other assets
        of
        the Trust Fund which remain subject hereto.

      
        
          
          

        

        
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      Section
        11.03           Additional
        Termination Requirements.
        In the
        event an Option to Purchase is exercised with respect to the Mortgage Loans
        as
        provided in Section 11.01, the Trust Fund shall be terminated in accordance
        with the following additional requirements, unless the Trustee has been supplied
        with an Opinion of Counsel, at the expense of the party upon whose instruction
        causes the exercise of an Option to Purchase, to the effect that the failure
        to
        comply with the requirements of this Section 11.03 will not (i) result
        in the imposition of taxes on “prohibited transactions” on any REMIC formed
        hereby as defined in Section 860F of the Code or (ii) cause any REMIC
        formed hereby to fail to qualify as a REMIC at any time that any Certificates
        are outstanding:

       

      (a)           The
        Securities Administrator on behalf of the Trustee shall sell all of the assets
        of the Trust Fund to the party exercising the Option to Purchase, and, within
        90 days of such sale, shall distribute to the Certificateholders the
        proceeds of such sale in complete liquidation of each REMIC formed hereby;
        and

       

      (b)           The
        Securities Administrator shall attach a statement to the final federal income
        tax return for each REMIC formed hereby stating that pursuant to Treasury
        Regulations Section 1.860F-1, the first day of the 90-day liquidation
        period for each such REMIC was the date on which the Securities Administrator
        on
        behalf of the Trustee sold the assets of the Trust Fund to the Master
        Servicer.

       

      ARTICLE
        XII

       

      MISCELLANEOUS
        PROVISIONS

       

      Section
        12.01           Amendment.
        This
        Agreement may be amended from time to time by the Depositor, the Originator,
        the
        Master Servicer, the Servicer, the Securities Administrator and the Trustee,
        without the consent of any of the Certificateholders or the Derivative
        Counterparty (except to the extent that the rights or obligations of the
        Derivative Counterparty under the Cap Agreement or the Swap Agreement are
        affected thereby, and except to the extent that the ability of the Securities
        Administrator to perform fully and timely its obligations under the Cap
        Agreement or the Swap Agreement is adversely affected, in which case prior
        written consent of the Derivative Counterparty is required) (i) to cure any
        ambiguity or mistake, (ii) to correct any defective provision herein or to
        supplement any provision herein which may be inconsistent with any other
        provision herein, (iii) to add to the duties of the Depositor, the Master
        Servicer, the Servicer, the Securities Administrator or the Trustee,
        (iv) to add any other provisions with respect to matters or questions
        arising hereunder, (v) to modify, alter, amend, add to or rescind any of
        the terms or provisions contained in this Agreement, (vi) to comply with
        the
        requirements of the Internal Revenue Code or (vii) to conform this agreement
        to
        the Offering Documents provided to investors in connection with the offering
        of
        the Certificates; provided,
        that
        any action pursuant to clause (iv) or (v) above shall not, as
        evidenced by an Opinion of Counsel (which Opinion of Counsel shall not be
        an
        expense of the Trustee, the Master Servicer, the Securities Administrator
        or the
        Trust Fund), adversely affect in any material respect the interests of any
        Certificateholder; provided,
        further,
        that
        any such action pursuant to clause (iv) or (v) above shall not be
        deemed to adversely affect in any material respect the interests of the
        Certificateholders if the Person requesting the amendment obtains a letter
        from
        each Rating Agency stating that the amendment would not result in the
        downgrading or withdrawal of the respective ratings then assigned to the
        Certificates; it being understood and agreed that any such letter in and
        of
        itself will not represent a determination as to the materiality of any such
        amendment and will represent a determination only as to the credit issues
        affecting any such rating. The Trustee, the Depositor, the Master Servicer,
        the
        Originator, the Servicer and the Securities Administrator also may at any
        time
        and from time to time amend this Agreement, but without the consent of the
        Certificateholders or the Derivative Counterparty (except to the extent that
        the
        rights or obligations of the Derivative Counterparty hereunder or under the
        Cap
        Agreement or the Swap Agreement are affected thereby, and except to the extent
        that the ability of the Securities Administrator to perform fully and timely
        its
        obligations under the Cap Agreement or the Swap Agreement is adversely affected,
        in which case prior written consent of the Derivative Counterparty is required)
        to modify, eliminate or add to any of its provisions to such extent as shall
        be
        necessary or helpful to (i) maintain the qualification of each REMIC
        created hereunder under the Code, (ii) avoid or minimize the risk of the
        imposition of any tax on any REMIC created hereunder pursuant to the Code
        that
        would be a claim at any time prior to the final redemption of the Certificates
        or (iii) comply with any other requirements of the Code; provided,
        that
        the Trustee and the Master Servicer have been provided an Opinion of Counsel,
        which opinion shall be an expense of the party requesting such opinion but
        in
        any case shall not be an expense of the Trustee or the Trust Fund, to the
        effect
        that such action is necessary or helpful to, as applicable, (i) maintain
        such qualification, (ii) avoid or minimize the risk of the imposition of
        such a tax or (iii) comply with any such requirements of the
        Code.

      
        
          
          

        

        
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      This
        Agreement may also be amended from time to time by the Depositor, the Master
        Servicer, the Servicer, the Originator, the Securities Administrator and
        the
        Trustee, but with the consent of the Holders of Certificates evidencing
        Percentage Interests aggregating not less than 662/3%
        of each
        Class of Certificates affected thereby 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 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
        in a manner other than as described in clause (i), without the consent of
        the Holders of Certificates of such Class evidencing, as to such Class,
        Percentage Interests aggregating not less than 662/3%,
        (iii) reduce the aforesaid percentages of Certificates the Holders of which
        are required to consent to any such amendment, without the consent of the
        Holders of all such Certificates then outstanding or (iv) adversely affect
        the
        rights or obligations of the Derivative Counterparty hereunder or under the
        Cap
        Agreement or the Swap Agreement or the rights of the Securities Administrator
        to
        fully and timely perform its obligations under the Cap Agreement or the Swap
        Agreement without obtaining the prior written consent of the Derivative
        Counterparty.

       

      Notwithstanding
        any contrary provision of this Agreement, the Trustee and the Master Servicer
        shall not consent to any amendment to this Agreement unless (i) it shall
        have first received an Opinion of Counsel, which opinion shall not be an
        expense
        of the Trustee, the Master Servicer or the Trust Fund, to the effect that
        such
        amendment will not cause the imposition of any tax on any REMIC created
        hereunder or the Certificateholders or cause any such REMIC to fail to qualify
        as a REMIC or the grantor trust to fail to qualify as a grantor trust at
        any
        time that any Certificates are outstanding and (ii) the party seeking such
        amendment shall have provided written notice to the Rating Agencies (with
        a copy
        of such notice to the Trustee, the Master Servicer and the Derivative
        Counterparty) of such amendment, stating the provisions of the Agreement
        to be
        amended.

      
        
          
          

        

        
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      Notwithstanding
        the foregoing provisions of this Section 12.01, with respect to any
        amendment that significantly modifies the permitted activities of the Trustee
        or
        the Servicer, any Certificate beneficially owned by the Depositor shall be
        deemed not to be outstanding (and shall not be considered when determining
        the
        percentage of Certificateholders consenting or when calculating the total
        number
        of Certificates entitled to consent) for purposes of determining if the
        requisite consents of Certificateholders under this Section 12.01 have been
        obtained.

       

      Promptly
        after the execution of any amendment to this Agreement requiring the consent
        of
        Certificateholders, the Trustee shall furnish written notification of the
        substance or a copy of such amendment to each Certificateholder and each
        Rating
        Agency.

       

      It
        shall
        not be necessary for the consent of Certificateholders under this
        Section 12.01 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.

       

      Nothing
        in this Agreement shall require the Trustee, the Master Servicer or the
        Securities Administrator to enter into an amendment without receiving an
        Opinion
        of Counsel (which opinion shall not be an expense of the Trustee, the Master
        Servicer, the Securities Administrator or the Trust Fund), satisfactory to
        the
        Trustee, the Master Servicer and the Securities Administrator, as applicable,
        that (i) such amendment is permitted and is not prohibited by this
        Agreement and that all requirements for amending this Agreement have been
        complied with and (ii) either (A) the amendment does not adversely
        affect in any material respect the interests of any Certificateholder or
        (B) the conclusion set forth in the immediately preceding
        clause (A) is not required to be reached pursuant to this
        Section 12.01.

       

      Notwithstanding
        the foregoing, the consent of Originator shall not be required to enter into
        any
        amendment to this Agreement unless such amendment would potentially have
        an
        adverse effect on the rights or obligations of the Originator under this
        Agreement.

       

      Section
        12.02           Recordation
        of Agreement; Counterparts.
        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 Mortgaged Properties are situated, and in any other
        appropriate public recording office or elsewhere, such recordation to be
        effected by the Servicer at the direction and expense of the Depositor, but
        only
        upon receipt of an Opinion of Counsel to the effect that such recordation
        materially and beneficially affects the interests of the
        Certificateholders.

      
        
          
          

        

        
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      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
        12.03           Governing
        Law.
        THIS
        AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
        LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
        IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
        PARTIES
        HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH
        SUCH
        LAWS.

       

      Section
        12.04           Intention
        of Parties.
        (a) It
        is intended that the conveyance of the Depositor’s right, title and interest in
        and to property constituting the Trust Fund pursuant to this Agreement shall
        constitute, and shall be construed as, a sale of such property and not a
        grant
        of a security interest to secure a loan. However, if such conveyance is deemed
        to be in respect of a loan, it is intended that: (1) the rights and obligations
        of the parties shall be established pursuant to the terms of this Agreement;
        (2)
        the Depositor hereby grants to the Trustee for the benefit of the Holders
        of the
        Certificates a first priority security interest to secure repayment of an
        obligation in an amount equal to the aggregate Class Principal Amount of
        the
        Certificates in all of the Depositor’s right, title and interest in, to and
        under, whether now owned or hereafter acquired, the Trust Fund and the
        Supplemental Interest Trust and all proceeds of any and all property
        constituting the Trust Fund and the Supplemental Interest Trust to secure
        payment of the Certificates (such security interest being, to the extent
        of the
        assets that constitute the Supplemental Interest Trust, pari
        passu
        with the
        security interest as provided in clause (4) below); (3) this Agreement shall
        constitute a security agreement under applicable law; and (4) the Derivative
        Counterparty shall be deemed, during the term of such agreement and while
        such
        agreement is the property of the Trustee, to have a security interest in
        all of
        the assets that constitute the Supplemental Interest Trust, but only to the
        extent of such Derivative Counterparty’s right to payment under the Derivative
        Agreements (such security interest being pari
        passu
        with the
        security interest as provided in clause (2) above). If such conveyance is
        deemed
        to be in respect of a loan and the trust created by this Agreement terminates
        prior to the satisfaction of the claims of any Person holding any Certificate,
        the security interest created hereby shall continue in full force and effect
        and
        the Trustee shall be deemed to be the collateral agent for the benefit of
        such
        Person, and all proceeds shall be distributed by the Securities Administrator
        as
        herein provided.

       

      (b)           The
        Depositor shall, to the extent consistent with this Agreement, take such
        reasonable actions as may be necessary to ensure that, if this Agreement
        were
        deemed to create a security interest in the Mortgage Loans and the other
        property described above, such security interest would be deemed to be a
        perfected security interest of first priority under applicable law and shall
        be
        maintained as such throughout the term of this Agreement. The Depositor shall,
        at its own expense, make all initial filings on or about the Closing Date
        and
        shall forward a copy of such filing or filings to the Trustee. Without limiting
        the generality of the foregoing, the Depositor shall prepare and forward
        for
        filing, or shall cause to be forwarded for filing, at the expense of the
        Depositor, all filings necessary to maintain the effectiveness of any original
        filings necessary under the relevant UCC to perfect the Trustee’s security
        interest in or lien on the Mortgage Loans, including without limitation (x)
        continuation statements, and (y) such other statements as may be occasioned
        by
        (1) any change of name of the Sponsor, the Depositor or the Trustee, (2)
        any
        change of location of the jurisdiction of organization of the Sponsor or
        the
        Depositor, (3) any transfer of any interest of the Sponsor or the Depositor
        in
        any Mortgage Loan or (4) any change under the relevant UCC or other applicable
        laws. Neither the Sponsor nor the Depositor shall organize under the law
        of any
        jurisdiction other than the State under which each is organized as of the
        Closing Date (whether changing its jurisdiction of organization or organizing
        under an additional jurisdiction) without giving 30 days prior written notice
        of
        such action to its immediate and intermediate transferee, including the Trustee.
        Before effecting such change, the Sponsor or the Depositor proposing to change
        its jurisdiction of organization shall prepare and file in the appropriate
        filing office any financing statements or other statements necessary to continue
        the perfection of the interests of its immediate and intermediate transferees,
        including the Trustee, in the Mortgage Loans. In connection with the
        transactions contemplated by this Agreement, each of the Sponsor and the
        Depositor authorizes its immediate or intermediate transferee to file in
        any
        filing office any initial financing statements, any amendments to financing
        statements, any continuation statements, or any other statements or filings
        described in this paragraph (b).

      
        
          
          

        

        
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      Section
        12.05           Notices.
        (a)  The Securities Administrator shall use its best efforts to
        promptly provide notice to each Rating Agency 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 Event of Default that has not been cured;

       

      3.           The
        resignation or termination of the Servicer, the Master Servicer, the Securities
        Administrator or the Trustee and the appointment of any successor;

       

      4.           The
        repurchase or substitution of Mortgage Loans pursuant to Section 2.03;
        and

       

      5.           The
        final payment to Certificateholders.

       

      (b)           In
        addition, the Securities Administrator shall promptly make available on its
        internet website to each Rating Agency copies of the following:

       

      1.           Each
        report to Certificateholders described in Section 4.03; and

       

      2.           Any
        notice of a purchase of a Mortgage Loan pursuant to
        Section 2.03.

       

      (c)           All
        directions, demands, consents and notices hereunder shall be in writing and
        shall be deemed to have been duly given when delivered to: 

       

      (i)           in
        the
        case of the Depositor,
        HSI
        Asset Securitization Corporation, 452 Fifth Avenue, 10th
        Floor,
        New York, New York 10018, Attention: Head MBS Principal Finance, or such
        other
        address as may be hereafter furnished to the other parties by the Depositor
        in
        writing;

      
        
          
          

        

        
          -156-

          
            

          

        

        
          
          

        

      

       

      (ii)           in
        the
        case of the Originator,
        to WMC
        Mortgage Corp., 3100 Thornton Avenue, Burbank, California 91504, Attention:
        Mardy Grossman;

       

      (iii)           in
        the
        case of Wells Fargo as Servicer,
        to
        Wells Fargo Bank, N.A., 1 Home Campus, Des Moines, IA 50328-0001,
        Attention: John B. Brown, MAC X2302-033 with a copy to Wells Fargo Bank,
        N.A., 1 Home Campus, Des Moines, IA 50328-0001, Attention: General Counsel,
        MAC X2401-06T;

       

      (iv)           in
        the
        case of Wells Fargo as Master Servicer,
        Wells
        Fargo Bank, N.A., P.O. Box 98, Columbia, Maryland 21046, with a copy to 9062
        Old
        Annapolis Road, Columbia, Maryland 21045, Attention: Client Service Manager
        --
        HASCO 2006-WMC1, or such other address as may be hereafter furnished to the
        to
        the other parties by Wells Fargo in writing;

       

      (v)           in
        the
        case of the Trustee,
        the
        Corporate Trust Office (Attention: HB06W1), or such other address as may
        be
        hereafter furnished to the to the other parties by the Trustee in
        writing;

       

      (vi)           in
        the
        case of the Derivative Counterparty,
        ABN
        AMRO Bank, N.V., Chicago Branch, Global
        Documentation Unit, 540 W. Madison Street, 22nd
        Floor, Chicago, IL 60661, Attention: Treasury Documentation,
        with a
        copy to ABN AMRO Bank, N.V., Amsterdam
        Head Office, P.O. Box 283, 1000 AE Amsterdam, The Netherlands, Attention:
        Operations Derivatives Markets;

       

      (vii)           in
        the
        case of each of the Rating Agencies,
        the
        address specified therefor in the definition corresponding to the name of
        such
        Rating Agency; and 

       

      (viii)           in
        the
        case of the Credit Risk Manager,
        Clayton
        Fixed Income Services Inc., 1700 Lincoln Street, Suite 1606, Denver, Colorado
        80203, Attention: General Counsel. Notices to Certificateholders shall be
        deemed
        given when mailed, first class postage prepaid, to their respective addresses
        appearing in the Certificate Register.

       

      Section
        12.06           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
        12.07           Assignment.
        Notwithstanding anything to the contrary contained herein, except as provided
        in
        Section 6.02, this Agreement may not be assigned by the Servicer without
        the prior written consent of the Trustee and Depositor; provided,
        however,
        that
        the Servicer may pledge its interest in any reimbursements for P&I Advances
        or Servicing Advances hereunder.

       

      Section
        12.08           Limitation
        on Rights of Certificateholders.
        The
        death or incapacity of any Certificateholder shall not operate to terminate
        this
        Agreement or the trust created hereby, nor entitle such Certificateholder’s
        legal representative or heirs to claim an accounting or to take any action
        or
        commence any proceeding in any court for a petition or winding up of the
        trust
        created hereby, or otherwise affect the rights, obligations and liabilities
        of
        the parties hereto or any of them.

      
        
          
          

        

        
          -157-

          
            

          

        

        
          
          

        

      

       

      No
        Certificateholder shall have any right to vote (except as provided herein)
        or in
        any manner otherwise control the operation and management of the Trust Fund,
        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 members of an association;
        nor shall any Certificateholder be under any liability to any third party
        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 or by availing itself of
        any
        provisions 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 an
        Event
        of Default and of the continuance thereof, as herein provided, and unless
        the
        Holders of Certificates evidencing not less than 25.00% of the Voting Rights
        evidenced by the Certificates shall also have made written request to 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 60 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 being understood and intended, and being
        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 or by availing itself
        or
        themselves of any provisions of this Agreement to affect, disturb or prejudice
        the rights of the Holders of any other of the 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
        common benefit of all Certificateholders. For the protection and enforcement
        of
        the provisions of this Section 12.08, each and every Certificateholder and
        the Trustee shall be entitled to such relief as can be given either at law
        or in
        equity.

       

      Section
        12.09           Inspection
        and Audit Rights.
        The
        Servicer agrees that, on reasonable prior notice, which shall not be less
        than
        two Business Days prior written notice, it will permit any representative
        of the
        Depositor or the Trustee during the Servicer’s normal business hours, to examine
        all the books of account, records, reports and other papers of the Servicer
        relating to the Mortgage Loans, to make copies and extracts therefrom, to
        cause
        such books to be audited by independent certified public accountants selected
        by
        the Depositor or the Trustee and to discuss its affairs, finances and accounts
        relating to the Mortgage Loans with its officers, employees and independent
        public accountants (and by this provision the Servicer hereby authorizes
        said
        accountants to discuss with such representative such affairs, finances and
        accounts), all at such reasonable times and as often as may be reasonably
        requested. Any out-of-pocket expense of the Servicer incident to the exercise
        by
        the Depositor or the Trustee of any right under this Section 12.09 shall be
        borne by the Servicer.

       

      Section
        12.10           Certificates
        Nonassessable and Fully Paid.
        It is
        the intention of the Depositor that Certificateholders shall not be personally
        liable for obligations of the Trust Fund, that the interests in the Trust
        Fund
        represented by the Certificates shall be nonassessable for any reason
        whatsoever, and that the Certificates, upon due authentication thereof by
        the
        Securities Administrator pursuant to this Agreement, are and shall be deemed
        fully paid.

      
        
          
          

        

        
          -158-

          
            

          

        

        
          
          

        

      

       

      Section
        12.11           Rule of
        Construction.
        Article
        and section headings are for the convenience of the reader and shall not
        be
        considered in interpreting this Agreement or the intent of the parties
        hereto.

       

      Section
        12.12           Waiver
        of Jury Trial.
        EACH
        PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, WAIVES (TO THE EXTENT
        PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF
        ANY
        DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH
        DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

       

      [SIGNATURE
        PAGE FOLLOWS]

       

      

      

      
        
          
            
            

          

          
            -159-

            
              

            

          

          
            
            

          

        

      

      

       

      IN
        WITNESS WHEREOF, each of the parties below have caused their names to be
        signed
        hereto by their respective officers thereunto duly authorized as of the day
        and
        year first above written.

       

      HSI
        ASSET
        SECURITIZATION 
CORPORATION, as Depositor

       

      
         

        By: 
          /s/ Andrea
          Lenox                                        

Name:
          Andrea Lenox
Title:
          Vice President

         

         

      

      DEUTSCHE
        BANK NATIONAL TRUST 
COMPANY, solely as Trustee and not in its 
individual
        capacity

       

       

      By: 
        /s/ Ronaldo
        Reyes                                      

Name:
        Ronaldo Reyes
Title:
        Vice President

       

       

      DEUTSCHE
        BANK NATIONAL TRUST 
COMPANY, solely as Trustee and not in its 
individual
        capacity

       

      
         

        By: 
          /s/ Karlene
          Benvenuto                              
Name:
          Karlene Benvenuto
Title:
          Authorized Signer

         

         

      

      WELLS
        FARGO BANK, N.A., as Master 
Servicer

      
         

         

        By: 
          /s/ Michael
          Pinzon                                     

Name:
          Michael Pinzon
Title:
          Assistant Vice President

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

      

      WELLS
        FARGO BANK, N.A., as Securities 
Administrator

       

      
         

        By: 
          /s/ Michael
          Pinzon                                    

Name:
          Michael Pinzon
Title:
          Assistant Vice President

         

         

      

      WELLS
        FARGO BANK, N.A., as Custodian

       

      
         

        By: 
          /s/ Patrick
          Gorrien                                     

Name:
          Patrick Gorrien
Title:
          Vice President

         

      

       

      WELLS
        FARGO BANK, N.A., as Servicer

       

      
         

        By: 
          /s/ Laurie
          McGoogan                               

Name:
          Laurie McGoogan
Title:
          Vice President

        
 

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

       

      CLAYTON
        FIXED INCOME SERVICES INC., 
as Credit Risk Manager

       

      
         

        By: 
          /s/ Kevin J.
          Kanouff                                  
Name:
          Kevin J. Kanouff
Title:
          President & General Counsel

         

         

         

         

        
 

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

       

      WMC
        MORTGAGE CORP., as Originator,
solely for the purposes of Sections
        2.01,
2.02, 2.03, 8.11(j) and 12.01

       

      
         

        By: 
          /s/ Jim
          Zollo                                                

Name:
          Jim
          Zollo
Title:
          Senior Vice President

         

         

         

         

        
 

      

      

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      ACKNOWLEDGED
        BY HSBC BANK USA, 

      NATIONAL
        ASSOCIATION, 
as
        Sponsor, solely for the purposes of 
Section 2.03(k). 

       

       

      By:
        /s/ Jon E.
        Voigtman                                   

      Name:
        Jon
        E. Voigtman

      Title:
        Managing Director #14311

       

       

       

       

       

       

       

      
 

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      SCHEDULE
        I

       

      Mortgage
        Loan Schedule

      

      

      [To
        be
        retained in a separate closing binder entitled “HASCO 2006-WMC1 Mortgage Loan

      Schedules”
        at the Washington, D.C. offices of McKee Nelson LLP]

      

       

       

       

      
 

      
        
          
            
            

          

          
            SCH.
              I-1

            
              

            

          

          
            
            

          

        

      

       

      SCHEDULE
        II

       

      HSI
        Asset
        Securitization Corporation Trust, 2006-WMC1

      Mortgage
        Pass-Through Certificates, Series 2006-WMC1

       

      Representations
        and Warranties of Wells Fargo Bank, N.A., as Servicer

       

      Wells
        Fargo Bank, N.A., as Servicer hereby makes the representations and warranties
        set forth in this Schedule II to the Depositor, the Securities
        Administrator, the Master Servicer and the Trustee, as of the Closing
        Date.

       

      (1)           Wells
        Fargo Bank, N.A. is duly organized, validly existing and in good standing
        as a
        national banking association and is duly authorized and qualified to transact
        any and all business contemplated by this Agreement to be conducted by Wells
        Fargo in any state in which a Mortgaged Property securing a Mortgage Loan
        is
        located or is otherwise not required under applicable law to effect such
        qualification and, in any event, is in compliance with the doing business
        laws
        of any such State, to the extent necessary to ensure its ability to enforce
        each
        Mortgage Loan and to service each Mortgage Loan in accordance with the terms
        of
        this Agreement;

       

      (2)           Wells
        Fargo has the full power and authority to service each Mortgage Loan, and
        to
        execute, deliver and perform, and to enter into and consummate the transactions
        contemplated by this Agreement and has duly authorized by all necessary action
        on the part of Wells Fargo the execution, delivery and performance of this
        Agreement; and this Agreement, assuming the due authorization, execution
        and
        delivery thereof by the Depositor, the Originator, the Securities Administrator,
        the Master Servicer, the Sponsor, the Credit Risk Manager and the Trustee,
        constitutes a legal, valid and binding obligation of Wells Fargo, enforceable
        against Wells Fargo in accordance with its terms, except to the extent that
        (a) the enforceability thereof may be limited by bankruptcy, insolvency,
        moratorium, receivership and other similar laws relating to creditors’ rights
        generally and (b) the remedy of specific performance and injunctive and
        other forms of equitable relief may be subject to the equitable defenses
        and to
        the discretion of the court before which any proceeding therefor may be
        brought;

       

      (3)           The
        execution and delivery of this Agreement by Wells Fargo, the servicing of
        the
        Mortgage Loans by Wells Fargo hereunder, the consummation by Wells Fargo
        of any
        other of the transactions herein contemplated, and the fulfillment of or
        compliance with the terms hereof are in the ordinary course of business of
        Wells
        Fargo and will not (A) result in a breach of any term or provision of the
        organizational documents of Wells Fargo or (B) conflict with, result in a
        breach, violation or acceleration of, or result in a default under, the terms
        of
        any other material agreement or instrument to which Wells Fargo is a party
        or by
        which it may be bound, or any statute, order or regulation applicable to
        Wells
        Fargo of any court, regulatory body, administrative agency or governmental
        body
        having jurisdiction over Wells Fargo; and Wells Fargo is not a party to,
        bound
        by, or in breach or violation of any indenture or other agreement or instrument,
        or subject to or in violation of any statute, order or regulation of any
        court,
        regulatory body, administrative agency or governmental body having jurisdiction
        over it, which materially and adversely affects or, to Wells Fargo’s knowledge,
        would in the future materially and adversely affect, (x) the ability of
        Wells Fargo to perform its obligations under this Agreement or (y) the
        business, operations, financial condition, properties or assets of Wells
        Fargo
        taken as a whole;

      
        
          
          

        

        
          SCH.
            II-1

          
            

          

        

        
          
          

        

      

       

      (4)           Wells
        Fargo is an approved seller/servicer for Fannie Mae and an approved servicer
        for
        Freddie Mac in good standing;

       

      (5)           No
        litigation is pending against Wells Fargo (or any Subservicer) that would
        materially and adversely affect the execution, delivery or enforceability
        of
        this Agreement or the ability of Wells Fargo (or any Subservicer) to service
        the
        Mortgage Loans or to perform any of its other obligations hereunder in
        accordance with the terms hereof;

       

      (6)           No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by Wells Fargo
        of,
        or compliance by Wells Fargo with, this Agreement or the consummation by
        Wells
        Fargo of the transactions contemplated by this Agreement, except for such
        consents, approvals, authorizations or orders, if any, that have been obtained
        prior to the Closing Date; 

       

      (7)           Except
        as disclosed in writing to the Master Servicer, the Depositor, the Trustee,
        and
        the Securities Administrator, prior to the Closing Date: (i) Wells Fargo
        is not
        aware and has not received notice that any default, early amortization or
        other
        performance triggering event has occurred as to any other securitization
        due to
        any act or failure to act of Wells Fargo; (ii) Wells Fargo has not been
        terminated as servicer in a residential mortgage loan securitization, either
        due
        to a servicing default or to application of a servicing performance test
        or
        trigger; (iii) no material noncompliance with the relevant servicing criteria
        with respect to other securitizations of residential mortgage loans involving
        Wells Fargo as servicer has been disclosed or reported by Wells Fargo; (iv)
        no
        material changes to Wells Fargo’s policies or procedures with respect to the
        servicing function it will perform under this Agreement for mortgage loans
        of a
        type similar to the Mortgage Loans have occurred during the three-year period
        immediately preceding the Closing Date; (v) there are no aspects of Wells
        Fargo’s financial condition that could have a material adverse effect on the
        performance by Wells Fargo’s of its servicing obligations under this Agreement
        and (vi) there are no affiliations, relationships or transactions relating
        to
        Wells Fargo or any Subservicer with any party listed on Exhibit T hereto,
        other
        than its affiliation with the Master Servicer, Custodian and Securities
        Administrator; and

       

      (8)           Wells
        Fargo has the facilities, procedures and experienced personnel necessary
        for the
        sound servicing of mortgage loans of the same type as the Mortgage
        Loans.

       

      
        
          
            
            

          

          
            SCH.
              II-2

            
              

            

          

          
            
            

          

        

      

       

      SCHEDULE
        III

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates, Series 2006-WMC1

       

      Representations
        and Warranties of WMC Mortgage Corp. as Originator

       

      WMC
        Mortgage Corp., as Originator, hereby makes the representations and warranties
        set forth in this Schedule III to the Depositor, the Securities
        Administrator, the Master Servicer and the Trustee, as of the Closing Date.
        

       

      (1)           The
        Originator is a corporation duly organized, validly existing and in good
        standing under the laws of the state of its organization and has all licenses
        necessary to carry on its business as now being conducted and is licensed,
        qualified and in good standing in each state wherein it owns or leases any
        material properties or where a 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 Originator, and in any event the Originator is
        in
        compliance with the laws of any such state to the extent necessary; the
        Originator has the full corporate power, authority and legal right to execute
        and deliver this Agreement and to perform its obligations hereunder; the
        execution, delivery and performance of this Agreement by the Originator and
        the
        consummation of the transactions contemplated hereby have been duly and validly
        authorized; this Agreement and all agreements contemplated hereby have been
        duly
        executed and delivered and constitute the valid, legal, binding and enforceable
        obligations of the Originator, regardless of whether such enforcement is
        sought
        in a proceeding in equity or at law; 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;

       

      (2)           Neither
        the execution and delivery of this Agreement, the consummation of the
        transactions contemplated hereby, nor the fulfillment of or compliance with
        the
        terms and conditions of this Agreement, will conflict with or result in a
        breach
        of any of the terms, conditions or provisions of the Originator’s charter or
        by-laws or any legal 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 violation
        of any law, rule, regulation, order, judgment or decree to which the Originator
        or its property is subject, or result in the creation or imposition of any
        lien,
        charge or encumbrance that would have an adverse effect upon any of its
        properties pursuant to the terms of any mortgage, contract, deed of trust
        or
        other instrument;

       

      (3)           There
        is no action, suit, proceeding or investigation pending or threatened against
        the Originator, before any court, administrative agency or other tribunal
        asserting the invalidity of this Agreement, seeking to prevent the consummation
        of any of the transactions contemplated by this Agreement or which, either
        in
        any one instance or in the aggregate, may result in any material adverse
        change
        in the business, operations, financial condition, properties or assets of
        the
        Originator, or in any material impairment of the right or ability of the
        Originator to carry on its business substantially as now conducted, or in
        any
        material liability on the part of the Originator, or which would draw into
        question the validity of this Agreement or of any action taken or to be taken in
        connection with the obligations of the Originator contemplated herein, or
        which
        would be likely to impair materially the ability of the Originator to perform
        under the terms of this Agreement; and

      
        
          
          

        

        
          SCH.
            III-1

          
            

          

        

        
          
          

        

      

       

      (4)           No
        consent, approval, authorization or order of, or registration or filing with,
        or
        notice to any court or governmental agency or body including HUD, the FHA
        or the
        VA is required for the execution, delivery and performance by the Originator
        of
        or compliance by the Originator with this Agreement or the consummation of
        the
        transactions contemplated by this Agreement, or if required, such approval
        has
        been obtained prior to the Closing Date.

       

      

      

      
        
          
            
            

          

          
            SCH.
              III-2

            
              

            

          

          
            
            

          

        

      

      

       

      SCHEDULE
        IV

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates, Series 2006-WMC1

       

      Representations
        and Warranties of the Originator

      as
        to
        the Individual Mortgage Loans

       

      The
        Originator hereby makes the representations and warranties set forth in this
        Schedule IV as to the Mortgage Loans, to the Depositor, the Securities
        Administrator, the Master Servicer and the Trustee as of the Pass Through
        Transfer Date or such other date as may be specified below. Capitalized terms
        used but not otherwise defined in this Agreement (including this Schedule
        IV)
        shall have the meanings ascribed thereto in the Master MLPSA.

       

      (1)           The
        information set forth in the related Mortgage Loan Schedule and Mortgage
        File
        delivered to the Sponsor is complete, true and correct;

       

      (2)           The
        Mortgage Loan is in compliance with all requirements set forth in the related
        Commitment Letter, and the characteristics of the related Mortgage Loan Package
        as set forth in the related Commitment Letter are true and correct;

       

      (3)           All
        payments required to be made up to the close of business on the Pass Through
        Transfer Date for such Mortgage Loan under the terms of the Mortgage Note
        have
        been made; neither the Originator nor its subservicer has advanced funds,
        or
        induced, solicited or knowingly received any advance of funds from a party
        other
        than the owner of the related Mortgaged Property, directly or indirectly,
        for
        the payment of any amount required by the Mortgage Note or Mortgage; and
        there
        has been no delinquency, exclusive of any period of grace, in any payment
        by the
        Mortgagor thereunder since the origination of the Mortgage Loan. For purposes
        of
        this paragraph, a Mortgage Loan will be deemed delinquent if any payment
        due
        thereunder was not paid by the Mortgagor in the month such payment is
        due;

       

      (4)           There
        are no delinquent taxes, ground rents, water charges, sewer rents, assessments,
        insurance premiums, leasehold payments, or other outstanding charges affecting
        the related Mortgaged Property;

       

      (5)           The
        terms of the Mortgage Note and the Mortgage have not been impaired, waived,
        altered or modified in any respect, except by written instruments, recorded
        in
        the applicable public recording office if necessary to maintain the lien
        priority of the Mortgage, and which have been delivered to the Custodian
        on
        behalf of the Sponsor; the substance of any such waiver, alteration or
        modification has been approved by the title insurer, to the extent required
        by
        the related policy, and is reflected on the related Mortgage Loan Schedule.
        No
        instrument of waiver, alteration or modification has been executed, and no
        Mortgagor has been released, in whole or in part, except in connection with
        an
        assumption agreement approved by the title insurer, to the extent required
        by
        the policy, and which assumption agreement has been delivered to the Custodian
        and the terms of which are reflected in the related Mortgage Loan
        Schedule;

      
        
          
          

        

        
          SCH.
            IV-1

          
            

          

        

        
          
          

        

      

       

      (6)           The
        Mortgage Note and the Mortgage are not subject to any right of rescission,
        set-off, counterclaim or defense, including the defense of usury, nor will
        the
        operation of any of the terms of the Mortgage Note and the Mortgage, or the
        exercise of any right thereunder, render the Mortgage unenforceable, in whole
        or
        in part, or subject to any 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.
        Each
        Prepayment Charge or penalty with respect to any Mortgage Loan is permissible,
        enforceable and collectible under applicable federal, state and local
        law;

       

      (7)           All
        buildings upon the Mortgaged Property are insured by an insurer in accordance
        with the Underwriting Guidelines against loss by fire, hazards of extended
        coverage and such other hazards as are customary in the area where the Mortgaged
        Property is located, pursuant to insurance polices conforming to the
        requirements of the Servicing Addendum. All such insurance policies contain
        a
        standard mortgagee clause naming the originator or the Originator, its
        successors and assigns as mortgagee and all premiums thereon have been paid.
        If
        the Mortgaged Property is in an area identified on a Flood Hazard Map or
        Flood
        Insurance Rate Map issued by the Federal Emergency Management Agency as having
        special flood hazards (and such flood insurance has been made available)
        a flood
        insurance policy meeting the requirements of the current guidelines of the
        Federal Insurance Administration is in effect which policy conforms to the
        requirements of FNMA an FHLMC. The Mortgage obligates the Mortgagor thereunder
        to maintain all such insurance at the Mortgagor’s cost and expense, and on the
        Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain
        such insurance at Mortgagor’s cost and expense and to seek reimbursement
        therefor from the Mortgagor;

       

      (8)           Any
        and all requirements of any federal, state or local law including, without
        limitation, usury, truth in lending, real estate settlement procedures,
        predatory and abusive lending, consumer credit protection, equal credit
        opportunity, fair housing or disclosure laws applicable to the origination
        and
        servicing of mortgage loans of a type similar to the Mortgage Loans and
        applicable to any prepayment penalty associated with the Mortgage Loans at
        origination have been complied with;

       

      (9)           The
        Mortgage has not been satisfied, cancelled, subordinated or rescinded, in
        whole
        or in part, and the Mortgaged Property has not been released from the lien
        of
        the Mortgage, in whole or in part, nor has any instrument been executed that
        would effect any such satisfaction, cancellation, subordination, rescission
        or
        release;

       

      (10)           The
        Mortgage is a valid, existing and enforceable first or second (as indicated
        on
        the Mortgage Loan Schedule) lien on the Mortgaged Property, including all
        improvements on the Mortgaged Property subject only to (a) the lien of current
        real property taxes and assessments not yet due and payable, (b) covenants,
        conditions and restrictions, rights of way, easements and other matters of
        the
        public record as of the date of recording being acceptable to mortgage lending
        institutions generally and specifically referred to in the lender’s title
        insurance policy delivered to the originator of the Mortgage Loan and which
        do
        not materially and adversely affect the Appraised Value of the Mortgaged
        Property, (c) to the extent the Mortgage Loan is a second lien Mortgage Loan
        the
        related first lien on the Mortgaged Property; and (d) other matters 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. Any
        security agreement, chattel mortgage or equivalent document related to and
        delivered in connection with the Mortgage Loan establishes and creates a
        valid,
        existing and enforceable first or second lien (as indicated on the Mortgage
        Loan
        Schedule) and first or second (as indicated on the Mortgage Loan Schedule)
        priority security interest on the property described therein and the Originator
        has full right to sell and assign the same to the Sponsor, subject to (a)
        - (d)
        above. The Mortgaged Property was not, as of the date of origination of the
        Mortgage Loan, subject to a mortgage, deed of trust, deed to secure debt
        or
        other security instrument creating a lien subordinate to the lien of the
        Mortgage;

      
        
          
          

        

        
          SCH.
            IV-2

          
            

          

        

        
          
          

        

      

       

      (11)           The
        Mortgage Note and the related Mortgage are genuine and each is the legal,
        valid
        and binding obligation of the maker thereof, enforceable in accordance with
        its
        terms, except as such enforcement may be limited by bankruptcy, insolvency,
        reorganization or other similar laws affecting the enforcement of creditors’
rights generally and by general equity principles (regardless of whether
        such
        enforcement is considered in a proceeding in equity or at law);

       

      (12)           All
        parties to the Mortgage Note and the Mortgage had legal capacity to enter
        into
        the Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage,
        and the Mortgage Note and the Mortgage have been duly and properly executed
        by
        such parties. The Mortgagor is a natural person or a trust that conforms
        to the
        requirements of FNMA;

       

      (13)           The
        proceeds of the Mortgage Loan have been fully disbursed to or for the account
        of
        the Mortgagor and there is no obligation for the Mortgagee to advance additional
        funds thereunder and any and all requirements as to completion of any on-site
        or
        off-site improvement 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 have been paid, and the
        Mortgagor is not entitled to any refund of any amounts paid or due to the
        Mortgagee pursuant to the Mortgage Note or Mortgage;

       

      (14)           As
        of the Initial Sale Date, the Originator was the sole legal, beneficial and
        equitable owner of the Mortgage Note and the Mortgage and had full right
        to
        transfer and sell the Mortgage Loan to the Sponsor free and clear of any
        encumbrance, equity, lien, pledge, charge, claim or security
        interest;

       

      (15)           All
        parties which have had any interest in the Mortgage Loan, whether as mortgagee,
        assignee, pledgee or otherwise, are (or, during the period in which they
        held
        and disposed of such interest, were) in compliance with any and all applicable
        “doing business” and licensing requirements of the laws of the state wherein the
        Mortgaged Property is located or were not required to be licensed in such
        state;

      
        
          
          

        

        
          SCH.
            IV-3

          
            

          

        

        
          
          

        

      

       

      (16)           The
        Mortgage Loan is covered by an American Land Title Association (“ALTA”) lender’s
        title insurance policy (which, in the case of an Adjustable Rate Mortgage
        Loan
        has an adjustable rate mortgage endorsement in the form of ALTA 6.0 or 6.1),
        or
        with respect to any Mortgage Loan for which the related Mortgaged Property
        is
        located in California a CLTA lender’s title insurance policy, pursuant to the
        Underwriting Guidelines and qualified to do business in the jurisdiction
        where
        the Mortgaged Property is located, insuring (subject to the exceptions contained
        in (10)(a) through (d) above) the Originator, its successors and assigns
        as to
        the first or second (as indicated on the related Mortgage Loan Schedule)
        priority lien of the Mortgage in the original principal amount of the Mortgage
        Loan and, with respect to any 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 Interest
        Rate and Monthly Payment. Additionally, such lender's title insurance policy
        affirmatively insures ingress and egress to and from the Mortgaged Property,
        and
        against encroachments by or upon the Mortgaged Property or any interest therein.
        The Originator (or its predecessor in interest) is the sole insured of such
        lender’s title insurance policy, and such lender’s title insurance policy is in
        full force and effect and will be in full force and effect upon the consummation
        of the transactions contemplated by this Agreement. 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;

       

      (17)           There
        is no default, breach, violation or event of acceleration existing under
        the
        Mortgage or the Mortgage Note and 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, and the Originator has
        not
        waived any default, breach, violation or event of acceleration. With respect
        to
        each second lien Mortgage Loan (i) the first lien mortgage loan is in full
        force
        and effect, (ii) to the Originator’s knowledge, there is no default, breach,
        violation or event of acceleration existing under such first lien mortgage
        or
        the related mortgage note, (iii) 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, (iv) 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 such mortgagee an opportunity to cure any default by payment
        in
        full or otherwise under the first lien mortgage, (v) the related first lien
        does
        not provide for or permit negative amortization under such first lien Mortgage
        Loan, and (vi) 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;

       

      (18)           There
        are 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 lien) affecting the related Mortgaged Property which are or may be
        liens
        prior to, or equal or coordinate with, the lien of the related
        Mortgage;

       

      (19)           All
        improvements which were considered in determining the Appraised Value of
        the
        related Mortgaged Property lay wholly within the boundaries and building
        restriction lines of the Mortgaged Property, and no improvements on adjoining
        properties encroach upon the Mortgaged Property;

      
        
          
          

        

        
          SCH.
            IV-4

          
            

          

        

        
          
          

        

      

       

      (20)           The
        Mortgage Loan was (A) originated by the Originator or by a savings and loan
        association, a savings bank, a commercial bank, credit union, insurance company
        or similar institution which is supervised and examined by a federal or state
        authority, or by a mortgagee approved as such by the Secretary of HUD or
        (B)
        acquired by the Originator through loan brokers or correspondents in which case
        the Mortgage Loan was re-underwritten by the Originator in accordance with
        the
        Underwriting Guidelines (including exception practices as set forth in the
        Underwriting Guidelines) and each such loan broker or correspondent shall
        be a
        Qualified Correspondent;

       

      (21)           Principal
        payments on the Mortgage Loan will commence or commenced no more than sixty
        (60)
        days after the proceeds of the Mortgage Loan were disbursed. The Mortgage
        Loan
        bears interest at the Mortgage Interest Rate. With respect to each Mortgage
        Loan, the Mortgage Note is payable on the first day of each month in Monthly
        Payments, which, in the case of a Fixed Rate Mortgage Loan, are sufficient
        to
        fully amortize the original principal balance over the original term thereof
        (other than with respect to a Mortgage Loan identified on the related Mortgage
        Loan Schedule as an interest-only Mortgage Loan during the interest-only
        period
        or a Mortgage Loan which is identified on the related Mortgage Loan Schedule
        as
        a Balloon Mortgage Loan) and to pay interest at the related Mortgage Interest
        Rate, and, in the case of an Adjustable Rate Mortgage Loan, are changed on
        each
        Adjustment Date, and in any case, are sufficient to fully amortize the original
        principal balance over the original term thereof (other than with respect
        to a
        Mortgage Loan identified on the related Mortgage Loan Schedule as an
        interest-only Mortgage Loan during the interest-only period or a Mortgage
        Loan
        which is identified on the related Mortgage Loan Schedule as a Balloon Mortgage
        Loan) and to pay interest at the related Mortgage Interest Rate. With respect
        to
        each Mortgage Loan identified on the Mortgage Loan Schedule as an interest-only
        Mortgage Loan, the interest-only period shall not exceed ten (10) years (or
        such
        other period specified on the Mortgage Loan Schedule) and following the
        expiration of such interest-only period, the remaining Monthly Payments shall
        be
        sufficient to fully amortize the original principal balance over the remaining
        term of the Mortgage Loan and to pay interest at the related Mortgage Interest
        Rate. With respect to each Balloon 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 Interest Rate and requires a final Monthly Payment substantially
        greater than the preceding monthly payment which is sufficient to repay the
        remaining unpaid principal balance of the Balloon Mortgage Loan as the Due
        Date
        of such monthly payment. The Index for each Adjustable Rate Mortgage Loan
        is as
        set forth in the Mortgage Loan Schedule. No Mortgage Loan is a Convertible
        Mortgage Loan. No Balloon Mortgage Loan has an original stated maturity of
        less
        than seven (7) years. No Mortgage Loan permits negative
        amortization;

       

      (22)           The
        origination, servicing and collection practices used by the Originator (or
        its
        subservicer), with respect to each Mortgage Note and Mortgage including,
        without
        limitation, the establishment, maintenance and servicing of the Escrow Accounts
        and Escrow Payments, if any, since origination, have been in all respects
        legal,
        proper, prudent and customary in the mortgage origination and servicing
        industry. The Mortgage Loan has been serviced by the Originator or its
        subservicer and any predecessor servicer in accordance with the terms of
        the
        Mortgage Note and Accepted Servicing Practices. With respect to escrow deposits
        and Escrow Payments, if any, all such payments are in the possession of,
        or
        under the control of, the Originator or its subservicer and there exist no
        deficiencies in connection therewith for which customary arrangements for
        repayment thereof have not been made. No escrow deposits or Escrow Payments
        or
        other charges or payments due the Originator have been capitalized under
        any
        Mortgage or the related Mortgage Note and no such escrow deposits or Escrow
        Payments are being held by the Originator for any work on a Mortgaged Property
        which has not been completed;

      
        
          
          

        

        
          SCH.
            IV-5

          
            

          

        

        
          
          

        

      

       

      (23)           The
        Mortgaged Property is free of damage and waste and there is no proceeding
        pending for the total or partial condemnation thereof;

       

      (24)           The
        Mortgage and related Mortgage Note contain 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, including, (a) in the case of a Mortgage designated as
        a deed
        of trust, by trustee's sale, and (b) otherwise by judicial foreclosure. As
        of
        the Initial Sale Date, (A) the Mortgaged Property was not the subject of
        a
        bankruptcy proceeding or foreclosure proceeding and (B) the Mortgagor had
        not
        filed for protection under applicable bankruptcy laws. 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, subject to applicable federal and state laws and judicial precedent
        with respect to bankruptcy and right of redemption or similar law. The Mortgagor
        has not notified the Originator and the Originator has no knowledge of any
        relief requested or allowed to the Mortgagor under the Servicemembers’ Civil
        Relief Act;

       

      (25)           The
        Mortgage Loan was underwritten in accordance with the Underwriting Guidelines
        in
        effect at the time the Mortgage Loan was originated and the Mortgage Note
        and
        Mortgage are on forms acceptable to prudent
        lenders in the secondary mortgage market;

       

      (26)           The
        Mortgage Note is not and has not been secured by any collateral except the
        lien
        of the corresponding Mortgage on the Mortgaged Property and the security
        interest of any applicable security agreement or chattel mortgage referred
        to in
        (x) above;

       

      (27)           The
        Mortgage File contains an appraisal of the related Mortgaged Property which
        satisfied the standards of FNMA and FHLMC, which, (A) with respect to each
        First
        Lien Mortgage Loan, was on appraisal form 1004 or form 2055 with an interior
        inspection or (B) with respect to each Second Lien Mortgage Loan, was on
        appraisal form 1004, 2065, or 2055 with an exterior only inspection, and
        (C)
        with respect to (A) or (B) above, was made and signed, prior to the approval
        of
        the Mortgage Loan application, by a qualified appraiser, duly appointed by
        the
        Originator or its agent, who had no interest, direct or indirect in the
        Mortgaged Property or in any loan made on the security thereof, whose
        compensation is not affected by the approval or disapproval of the Mortgage
        Loan
        and who met the minimum qualifications of FNMA and FHLMC. Each appraisal
        of the
        Mortgage Loan was made in accordance with the Underwriting Guidelines and
        the
        relevant provisions of the Financial Institutions Reform, Recovery, and
        Enforcement Act of 1989;

      
        
          
          

        

        
          SCH.
            IV-6

          
            

          

        

        
          
          

        

      

       

      (28)           
        In the event the Mortgage constitutes a deed of trust, a trustee, duly qualified
        under applicable law to serve as such, has been properly designated and
        currently so serves and is named in the Mortgage, and no fees or expenses
        are or
        will become payable by the Sponsor to the trustee under the deed of trust,
        except in connection with a trustee’s sale after default by the
        Mortgagor;

       

      (29)           No
        Mortgage Loan contains provisions pursuant to which Monthly Payments are
        (a)
        paid or partially paid with funds deposited in any separate account established
        by the Originator, the Mortgagor, or anyone on behalf of the Mortgagor, (b)
        paid
        by any source other than the Mortgagor or (c) contains any other similar
        provisions which may constitute a “buydown” provision. The Mortgage Loan is not
        a graduated payment mortgage loan and the Mortgage Loan does not have a shared
        appreciation or other contingent interest feature;

       

      (30)           The
        Originator has executed a statement to the effect that the Mortgagor has
        received all disclosure materials required by applicable law with respect
        to the
        making of fixed rate mortgage loans in the case of Fixed Rate Mortgage Loans,
        and adjustable rate mortgage loans in the case of Adjustable Rate Mortgage
        Loans
        and rescission materials with respect to Refinanced Mortgage Loans, and such
        statement is and will remain in the Mortgage File;

       

      (31)           No
        Mortgage Loan was made in connection with (a) the construction or rehabilitation
        of a Mortgaged Property or (b) facilitating the trade-in or exchange of a
        Mortgaged Property;

       

      (32)           The
        Originator has no knowledge of any circumstances or condition with respect
        to
        the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit
        standing that can reasonably be expected to cause the Mortgage Loan to become
        delinquent;

       

      (33)           No
        Mortgage Loan had an LTV or CLTV at origination in excess of 100%;

       

      (34)           As
        of the Initial Sale 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;

       

      (35)           No
        misrepresentation, fraud or similar occurrence with respect to a Mortgage
        Loan
        has taken place on the part of any person, including without limitation the
        Mortgagor, any appraiser, any builder or developer, or any other party involved
        in the origination of the Mortgage Loan or in the application of any insurance
        in relation to such Mortgage Loan;

      
        
          
          

        

        
          SCH.
            IV-7

          
            

          

        

        
          
          

        

      

       

      (36)           The
        Assignment of Mortgage is in recordable form, except for the name of the
        assignee which is blank, and is acceptable for recording under the laws of
        the
        jurisdiction in which the Mortgaged Property is located;

       

      (37)           Any
        principal advances made to the Mortgagor prior to the Cut-off Date (as defined
        in the Master MLPSA) 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 first or second (as specified in the Mortgage Loan Schedule) lien
        priority by a title insurance policy, an endorsement to the policy insuring
        the
        mortgagee's consolidated interest or by other title evidence acceptable to
        prudent mortgage lenders in the secondary mortgage market. The consolidated
        principal amount does not exceed the original principal amount of the Mortgage
        Loan;

       

      (38)           If
        the Residential Dwelling on the Mortgaged Property is a condominium unit
        or a
        unit in a planned unit development (other than a de minimis planned unit
        development) such condominium or planned unit development project was originated
        in accordance with, and the Mortgaged Property meets the requirements of
        the
        Underwriting Guidelines;

       

      (39)           
        The account number from which the down payment was received with respect
        to each
        Mortgage Loan has been verified by the Originator;

       

      (40)           Interest
        on each Mortgage Loan is calculated on the basis of a 360-day year consisting
        of
        twelve 30-day months;

       

      (41)           To
        the Originator’s knowledge, (A) the Mortgaged Property is in material compliance
        with all applicable environmental laws pertaining to environmental hazards
        including, without limitation, asbestos, and (B) the Originator, its subservicer
        and the related Mortgagor have not received any notice of any violation or
        potential violation of such law;

       

      (42)           The
        Originator shall, at its own expense, cause each Mortgage Loan to be covered
        by
        a Tax Service Contract which is assignable to the Sponsor or its designee;
        provided however, that if the Originator fails to purchase such Tax Service
        Contract, the Originator shall be required to reimburse the Sponsor for all
        costs and expenses incurred by the Sponsor in connection with the purchase
        of
        any such Tax Service Contract;

       

      (43)           Each
        Mortgage Loan is covered by a Flood Zone Service Contract which is assignable
        to
        the Sponsor or its designee or, for each Mortgage Loan not covered by such
        Flood
        Zone Service Contract, the Originator agrees to purchase such Flood Zone
        Service
        Contract;

      
        
          
          

        

        
          SCH.
            IV-8

          
            

          

        

        
          
          

        

      

       

      (44)           No
        Mortgage Loan is (a)(1) subject to the provisions of the Homeownership and
        Equity Protection Act of 1994 as amended (“HOEPA”) or (2) has an APR or total
        points and fees that exceeds the HOEPA thresholds (as defined in 12 CFR 226.32
        (a)(1)(i) and (ii)), (b) a “high cost” mortgage loan, “covered” mortgage loan,
“high risk home” mortgage loan, or “predatory” mortgage loan or any other
        comparable term, no matter how defined under any federal, state or local
        law,
        (c) subject to any comparable federal, state or local statutes or regulations,
        or any other statute or regulation providing for heightened regulatory scrutiny
        or assignee liability to holders of such mortgage loans, or (d) a High Cost
        Loan
        or Covered Loan, as applicable (as such terms are defined in the current
        Standard & Poor’s LEVELS® Glossary Revised, Appendix E);

       

      (45)           No
        predatory, abusive, or deceptive lending practices, including but not limited
        to, the extension of credit to a Mortgagor without regard for the Mortgagor’s
        ability to repay the Mortgage Loan and the extension of credit to a Mortgagor
        which has no apparent benefit to the Mortgagor, were employed in connection
        with
        the origination of the Mortgage Loan. Each Mortgage Loan is in compliance
        with
        the anti-predatory lending eligibility for purchase requirements of the Fannie
        Mae Guides;

       

      (46)           The
        debt-to-income ratio of the related Mortgagor was not greater than the limits
        set forth in the Underwriting Guidelines in place at the origination of the
        related Mortgage Loan;

       

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

       

      (48)           The
        Mortgage Loans were not selected from the outstanding one to four-family
        mortgage loans in the Originator’s portfolio at the Initial Sale Date as to
        which the representations and warranties set forth in this Agreement could
        be
        made at the Initial Sale Date in a manner so as to affect materially and
        adversely the interests of the Sponsor;

       

      (49)           The
        Mortgage contains an enforceable provision for the acceleration of the payment
        of the unpaid principal balance of the Mortgage Loan in the event that the
        Mortgaged Property is sold or transferred without the prior written consent
        of
        the mortgagee thereunder, except as such enforcement may be limited by
        bankruptcy, insolvency, reorganization or other similar laws affecting the
        enforcement of creditors’ rights generally and by general equity principles
        (regardless of whether such enforcement is considered in a proceeding in
        equity
        or at law);

      
        
          
          

        

        
          SCH.
            IV-9

          
            

          

        

        
          
          

        

      

       

      (50)           The
        Mortgage Loan complies with all applicable consumer credit statutes and
        regulations, including, without limitation, the respective Uniform Consumer
        Credit Code laws in effect in Alabama, Colorado, Idaho, Indiana, Iowa, Kansas,
        Maine, Oklahoma, South Carolina, Utah, West Virginia and Wyoming, has been
        originated by a properly licensed entity, and in all other respects, complies
        with all of the material requirements of any such applicable laws;

       

      (51)           The
        information set forth in the Mortgage Loan Schedule as to Prepayment Charges
        is
        complete, true and correct in all material respects and each Prepayment Charge
        is permissible, enforceable and collectable in accordance with its terms
        upon
        the Mortgagor’s full and voluntary principal payment under applicable
        law;

       

      (52)           The
        Mortgage Loan was not prepaid in full prior to the Initial Sale Date and
        the
        Originator has not received notification from a Mortgagor that a prepayment
        in
        full shall be made after the Initial Sale Date;

       

      (53)           No
        Mortgage Loan is secured by cooperative housing, commercial property or mixed
        use property;

       

      (54)           [Reserved];

       

      (55)           Except
        as set forth on the related Mortgage Loan Schedule, none of the Mortgage
        Loans
        are subject to a Prepayment Charge. For any Mortgage Loan originated prior
        to
        October 1, 2002 that is subject to a Prepayment Charge, such Prepayment Charge
        does not extend beyond five (5) years after the date of origination. For
        any
        Mortgage Loan originated on or following October 1, 2002 that is subject
        to a
        Prepayment Charge, such Prepayment Charge does not extend beyond three (3)
        years
        after the date of origination. With respect to any Mortgage Loan that contains
        a
        provision permitting imposition of a premium upon a prepayment prior to
        maturity: (i) prior to the Mortgage Loan’s origination, the Mortgagor agreed to
        such premium in exchange for a monetary benefit, including but not limited
        to a
        rate or fee reduction, (ii) prior to the Mortgage Loan's origination, the
        Mortgagor 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 premium
        buy-out pricing adjustment available, (iii) the prepayment premium is disclosed
        to the Mortgagor in the loan documents pursuant to applicable state and federal
        law, and (iv) notwithstanding any state or federal law to the contrary, the
        Originator shall not impose such Prepayment Charge in any instance when the
        mortgage loan is accelerated or paid off in connection with the workout of
        a
        delinquent Mortgage Loan or as the result of the Mortgagor’s default in making
        the loan payments; 

       

      (56)           The
        Originator and its subservicer have complied with all applicable anti-money
        laundering laws and regulations, including without limitation the USA Patriot
        Act of 2001 (collectively, the “Anti-Money
        Laundering Laws”);
        the
        Originator and its subservicer have established an anti-money laundering
        compliance program to the extent required by the Anti-Money Laundering Laws,
        have conducted the requisite due diligence in connection with the origination
        of
        each Mortgage Loan for purposes of the Anti-Money Laundering Laws, including
        with respect to the legitimacy of the applicable Mortgagor and the origin
        of the
        assets used by the said Mortgagor to purchase the Mortgaged Property, and
        maintains, and will maintain, sufficient information to identify the applicable
        Mortgagor for purposes of the Anti-Money Laundering Laws. No Mortgage Loan
        is
        subject to nullification pursuant to Executive Order 13224 (the “Executive
        Order”)
        or the
        regulations promulgated by the Office of Foreign Assets Control of the United
        States Department of the Treasury (the “OFAC
        Regulations”)
        or in
        violation of the Executive Order or the OFAC Regulations, and no Mortgagor
        is
        subject to the provisions of such Executive Order or the OFAC Regulations
        nor
        listed as a “blocked person” for purposes of the OFAC Regulations;

      
        
          
          

        

        
          SCH.
            IV-10

          
            

          

        

        
          
          

        

      

       

      (57)           No
        Mortgagor was encouraged or required to select a Mortgage Loan product offered
        by the Mortgage Loan's originator which is a higher cost product designed
        for
        less creditworthy borrowers, unless at the time of the Mortgage Loan's
        origination, such Mortgagor did not qualify taking into account credit history
        and debt to income ratios for a lower cost credit product then offered by
        the
        Mortgage Loan's originator or any affiliate of the Mortgage Loan’s originator.
        If, at the time of loan application, the Mortgagor may have qualified for
        a for
        a lower cost credit product then offered by any mortgage lending affiliate
        of
        the Mortgage Loan's originator, the Mortgage Loan's originator referred the
        Mortgagor's application to such affiliate for underwriting consideration.
        With
        respect to any Mortgage Loan, the Mortgagor was assigned the highest credit
        grade available with respect to a mortgage loan product offered by such Mortgage
        Loan’s originator, based on a comprehensive assessment of risk factors,
        including the Mortgagor’s credit history. Additionally, the Mortgage Loan’s
        originator offered the Mortgagor mortgage loan products offered by such Mortgage
        Loan’s originator, or any affiliate of such Mortgage Loan’s originator, for
        which the Mortgagor qualified;

       

      (58)           The
        methodology used in underwriting the extension of credit for each Mortgage
        Loan
        employs objective mathematical principles which relate the Mortgagor’s income,
        assets, liabilities and/or credit history to the proposed payment and such
        underwriting methodology does not rely on the extent of the Mortgagor’s equity
        in the collateral as the principal determining factor in approving such credit
        extension. Such underwriting methodology confirmed that at the time of
        origination (application/approval) the Mortgagor had a reasonable ability
        to
        make timely payments on the Mortgage Loan;

       

      (59)           With
        respect to each Mortgage Loan, the Originator or its subservicer has fully
        and
        accurately furnished complete information (i.e., favorable or unfavorable)
        on
        the related borrower credit files to Equifax, Experian and Trans Union Credit
        Information Company, in accordance with the Fair Credit Reporting Act and
        its
        implementing regulations, on a monthly basis, and the Originator or its
        subservicer will furnish, in accordance with the Fair Credit Reporting Act
        and
        its implementing regulations, accurate and complete information on its borrower
        credit files to Equifax, Experian, and Trans Union Credit Information Company,
        on a monthly basis;

      
        
          
          

        

        
          SCH.
            IV-11

          
            

          

        

        
          
          

        

      

       

      (60)           All
        points and fees related to each Mortgage Loan were disclosed in writing to
        the
        related Borrower in accordance with applicable state and federal laws and
        regulations. Except as set forth on the related Mortgage Loan Schedule, no
        Mortgagor was charged “points and fees” (whether or not financed) in an amount
        greater than (a) $1,000 or (b) 5% of the principal amount of such loan,
        whichever is greater, such 5% limitation is calculated in accordance with
        Fannie
        Mae’s anti-predatory lending requirements as set forth in the Fannie Mae Guides.
        All points, 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 were disclosed in writing
        to the
        related Mortgagor in accordance with applicable state and federal laws and
        regulations;

       

      (61)           The
        Originator or its subservicer will transmit full-file credit reporting data
        for
        each Mortgage Loan and for each Mortgage Loan pursuant to Fannie Mae Guide
        Announcement 95-19, and for each Mortgage Loan, the Originator or its
        subservicer agrees it shall report one of the following statuses each month
        as
        follows: new origination, current, delinquent (30-, 60-, 90-days, etc.),
        foreclosed, or charged-off;

       

      (62)           With
        respect to any Mortgage Loan which is secured by manufactured housing, if
        such
        Mortgage Loans are permitted hereunder, such Mortgage Loan satisfies the
        requirements for inclusion in residential mortgage backed securities
        transactions rated by Standard & Poor's Ratings Services and such
        manufactured housing will be the principal residence of the Mortgagor upon
        the
        origination of the Mortgage Loan. With respect to any second lien Mortgage
        Loan,
        such lien is on a one- to four-family residence that is (or will be) the
        principal residence of the Mortgagor upon the origination of the second lien
        Mortgage Loan;

       

      (63)           Each
        Mortgage Loan constitutes a “qualified mortgage” under Section 860G(a)(3)(A) of
        the Code and Treasury Regulation Section 1.860G-2(a)(1);

       

      (64)           No
        Mortgage Loan is secured by real property or secured by a manufactured home
        located in the state of Georgia unless (x) such Mortgage Loan was originated
        prior to October 1, 2002 or after March 6, 2003, or (y) the property securing
        the Mortgage Loan is not, nor will be, occupied by the Mortgagor as the
        Mortgagor’s principal dwelling. No Mortgage Loan is a “High Cost Home Loan” as
        defined in the Georgia Fair Lending Act, as amended (the “Georgia
        Act”).
        Each
        Mortgage Loan that is a “Home Loan” under the Georgia Act complies with all
        applicable provisions of the Georgia Act. No Mortgage Loan secured by owner
        occupied real property or an owner occupied manufactured home located in
        the
        State of Georgia was originated (or modified) on or after October 1, 2002
        through and including March 6, 2003;

       

      (65)           No
        Mortgage Loan is a “High-Cost” loan as defined under the New York Banking Law
        Section 6-1, effective as of April 1, 2003;

       

      (66)           No
        Mortgage Loan (a) is secured by property located in the State of New York;
        (b)
        had an unpaid principal balance at origination of $300,000 or less, and (c)
        has
        an application date on or after April 1, 2003, the terms of which Mortgage
        Loan
        equal or exceed either the APR or the points and fees threshold for “high-cost
        home loans”, as defined in Section 6-1 of the New York State Banking
        Law;

      
        
          
          

        

        
          SCH.
            IV-12

          
            

          

        

        
          
          

        

      

       

      (67)           No
        Mortgage Loan is a “High Cost Home Loan” as defined in the Arkansas Home Loan
        Protection Act effective July 16, 2003 (Act 1340 or 2003);

       

      (68)           No
        Mortgage Loan is a “High Cost Home Loan” as defined in the Kentucky high-cost
        loan statute effective June 24, 2003 (Ky. Rev. Stat.
        Section 360.100);

       

      (69)           No
        Mortgage Loan secured by property located in the State of Nevada is a “home
        loan” as defined in the Nevada Assembly Bill No. 284;

       

      (70)           No
        Mortgage Loan is a “manufactured housing loan” or “home improvement home loan”
pursuant to the New Jersey Home Ownership Act. No Mortgage Loan is a “High-Cost
        Home Loan” or a refinanced “Covered Home Loan,” in each case, as defined in the
        New Jersey Home Ownership Act effective November 27, 2003 (N.J.S.A. 46;10B-22
        et
        seq.);

       

      (71)           No
        Mortgage Loan is a subsection 10 mortgage under the Oklahoma Home Ownership
        and
        Equity protection Act;

       

      (72)           No
        Mortgage Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan
        Protection Act effective January 1, 2004 (N.M. Stat. Ann. §§ 58-21A-1 et
        seq.);

       

      (73)           No
        Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk
        Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et
        seq.);

       

      (74)           No
        Mortgage Loan that is secured by property located within the State of Maine
        meets the definition of a (i) “high-rate, high-fee” mortgage loan under Article
        VIII, Title 9-A of the Maine Consumer Credit Code or (ii) “High-Cost Home Loan”
as defined under the Maine House Bill 383 L.D. 494, effective as of September
        13, 2003;

       

      (75)           With
        respect to any Loan for which a mortgage loan application was submitted by
        the
        Mortgagor after April 1, 2004, no such Loan secured by Mortgaged Property
        in the
        State of Illinois which has a Loan Interest Rate in excess of 8.0% per annum
        has
        lender-imposed fees (or other charges) in excess of 3.0% of the original
        principal balance of the Loan;

       

      (76)           No
        Mortgage Loan is a “High Cost Home Mortgage Loan” as defined in the
        Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
        (Mass. Ann. Laws Ch. 183C). No Mortgage Loan secured by a Mortgaged Property
        located in the Commonwealth of Massachusetts was made to pay off or refinance
        an
        existing loan or other debt of the related borrower (as the term “borrower” is
        defined in the regulations promulgated by the Massachusetts Secretary of
        State
        in connection with Massachusetts House Bill 4880 (2004)) unless either (1)
        (a)
        the related Mortgage Interest Rate (that would be effective once the
        introductory rate expires, with respect to Adjustable Rate Mortgage Loans)
        did
        or would not exceed by more than 2.25% the yield on United States Treasury
        securities having comparable periods of maturity to the maturity of the related
        Mortgage Loan as of the fifteenth day of the month immediately preceding
        the
        month in which the application for the extension of credit was received by
        the
        related lender or (b) the Mortgage Loan is an “open-end home loan” (as such term
        is used in the Massachusetts House Bill 4880 (2004)) and the related Mortgage
        Note provides that the related Mortgage Interest Rate may not exceed at any
        time
        the Prime rate index as published in The Wall Street Journal plus a margin
        of
        one percent, or (2) such Mortgage Loan is in the “borrower’s interest,” as
        documented by a “borrower’s interest worksheet” for the particular Mortgage
        Loan, which worksheet incorporates the factors set forth in Massachusetts
        House
        Bill 4880 (2004) and the regulations promulgated thereunder for determining
        “borrower’s interest,” and otherwise complies in all material respects with the
        laws of the Commonwealth of Massachusetts;

      
        
          
          

        

        
          SCH.
            IV-13

          
            

          

        

        
          
          

        

      

       

      (77)           
        No Loan is a “High Cost Home Loan” governed by the Indiana Home Loan Practices
        Act, effective January 1, 2005 (Ind. Code Ann. §§ 24-9-1 et seq.);

       

      (78)           The
        Mortgagor has not made or caused to be made any payment in the nature of
        an
“average” or “yield spread premium” to a mortgage broker or a like Person which
        has not been fully disclosed to the Mortgagor;

       

      (79)           The
        sale or transfer of the Mortgage Loan by the Originator complies with all
        applicable federal, state, and local laws, rules, and regulations governing
        such
        sale or transfer, including, without limitation, the Fair and Accurate Credit
        Transactions Act (“FACT Act”) and the Fair Credit Reporting Act, each as may be
        amended from time to time, and the Originator has not received any actual
        or
        constructive notice of any identity theft, fraud, or other misrepresentation
        in
        connection with such Mortgage Loan or any party thereto;

       

      (80)           With
        respect to each MOM Loan, a MIN has been assigned by MERS and such MIN is
        accurately provided on the Mortgage Loan Schedule. The related Assignment
        of
        Mortgage to MERS has been duly and properly recorded, or has been delivered
        for
        recording to the applicable recording office;

       

      (81)           With
        respect to each MOM Loan, 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;

       

      (82)           Reserved;

       

      (83)           No
        Mortgagor agreed to submit to arbitration to resolve any dispute arising
        out of
        or relating in any way to the Mortgage Loan transaction;

       

      (84)           No
        Mortgage Loan is subject to mandatory arbitration; 

       

      (85)           
        No Mortgage Loan is secured by a lien on a “condo hotel;”

       

      (86)           No
        Mortgage Loan is subject to a policy of primary mortgage guaranty insurance;
        and

      
        
          
          

        

        
          SCH.
            IV-14

          
            

          

        

        
          
          

        

      

       

      (87)           If
        the Mortgage Loan is secured by a leasehold estate, at the time such Mortgage
        Loan was originated, such lease conformed to the requirements required by
        Fannie
        Mae pursuant to the Fannie Mae Guide in effect on such origination
        date.

       

      

       

      

      

      
        
          
            
            

          

          
            SCH.
              IV-15

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
        A

       

      [IF
        THIS
        CERTIFICATE IS A PHYSICAL CERTIFICATE, NEITHER THIS CERTIFICATE NOR ANY INTEREST
        HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED TRANSFEROR DELIVERS TO THE
        SECURITIES ADMINISTRATOR A TRANSFEROR LETTER (THE “TRANSFEROR
        LETTER”)
        IN THE
        FORM OF EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER
        (I) THE SECURITIES ADMINISTRATOR RECEIVES A RULE 144A INVESTMENT LETTER
        (THE “144A
        INVESTMENT
        LETTER”)
        OR A
        REGULATION S INVESTMENT LETTER (THE “REGULATION S INVESTMENT LETTER”) IN THE
        FORM OF EXHIBIT I-A AND EXHIBIT I-B, RESPECTIVELY, TO THE AGREEMENT
        REFERRED TO HEREIN OR (II) THE SECURITIES ADMINISTRATOR RECEIVES AN OPINION
        OF COUNSEL, DELIVERED AT THE EXPENSE OF THE TRANSFEROR, THAT SUCH TRANSFER
        MAY
        BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED.]
        [To
        be added to the Class M-10 Certificates while such Certificates remain
        Private Certificates.]

       

      [IF
        THIS
        CERTIFICATE IS A BOOK-ENTRY CERTIFICATE, THE PROPOSED TRANSFEROR WILL BE
        DEEMED
        TO HAVE MADE EACH OF THE CERTIFICATIONS SET FORTH IN THE TRANSFEROR LETTER
        AND
        THE PROPOSED TRANSFEREE WILL BE DEEMED TO HAVE MADE EACH OF THE CERTIFICATIONS
        SET FORTH IN THE RULE 144A INVESTMENT LETTER OR REGULATION S INVESTMENT LETTER,
        AS APPLICABLE, IN EACH CASE AS IF SUCH CERTIFICATE WERE EVIDENCED BY A PHYSICAL
        CERTIFICATE.] [To be added to the Class M-10 Certificates while such
        Certificates remain Private Certificates.]

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
        TO
        ISSUER 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 REPRESENTS AN INTEREST
        IN
        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”),
        AND
        CERTAIN OTHER ASSETS.

       

      [PRINCIPAL
        WILL NOT BE DISTRIBUTABLE IN RESPECT OF THIS CERTIFICATE. INTEREST IS CALCULATED
        ON THE CERTIFICATES OF THIS CLASS BASED ON A SCHEDULED CLASS NOTIONAL BALANCE
        WHICH ADJUSTS AS PROVIDED IN THE POOLING AND SERVICING AGREEMENT.] [To be
        added
        to Class A-IO Certificates only.]

      
        
          
          

        

        
          EXHIBIT
            A-1

          
            

          

        

        
          
          

        

      

       

       

      [ONLY
        PRINCIPAL (AND NOT INTEREST) WILL BE PAYABLE WITH RESPECT TO THIS CERTIFICATE.
        THE PRINCIPAL OF THIS CERTIFICATE IS PAYABLE IN INSTALLMENTS AS SET FORTH
        HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CERTIFICATE
        AT ANY
        TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.][To be added to
        Class
        A-5 Certificates only.]

       

      [PRIOR
        TO THE TERMINATION OF THE SWAP AGREEMENT AND THE CAP AGREEMENT, NO TRANSFER
        OF
        THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE SHALL HAVE RECEIVED A
        REPRESENTATION LETTER FROM THE TRANSFEREE OF THIS CERTIFICATE TO THE EFFECT
        THAT
        EITHER (I) SUCH TRANSFEREE IS NEITHER AN EMPLOYEE BENEFIT PLAN OR OTHER
        RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO SECTION 406 OF ERISA AND/OR SECTION
        4975 OF THE CODE OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE SUCH PLAN’S OR
        ARRANGEMENT’S ASSETS BY REASON OF THEIR INVESTMENT IN THE ENTITY (A “PLAN”) NOR
        A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF ANY SUCH
        PLAN
        TO EFFECT SUCH TRANSFER OR (II) THE ACQUISITION AND HOLDING OF THIS CERTIFICATE
        ARE ELIGIBLE FOR EXEMPTIVE RELIEF UNDER PROHIBITED TRANSACTION CLASS EXEMPTION
        (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 OR PTCE 96-23. ANY PURPORTED
        TRANSFER OF THIS CERTIFICATE PRIOR TO THE TERMINATION OF THE SWAP AGREEMENT
        AND
        THE CAP AGREEMENT TO OR ON BEHALF OF A PLAN WITHOUT THE DELIVERY TO THE TRUSTEE
        OF A REPRESENTATION LETTER AS DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.
        IF
        THIS CERTIFICATE IS A BOOK-ENTRY CERTIFICATE, THE TRANSFEREE WILL BE DEEMED
        TO
        HAVE MADE A REPRESENTATION AS PROVIDED IN CLAUSE (I) OR (II) OF THIS PARAGRAPH,
        AS APPLICABLE.] [To
        be
        added to all Offered Certificates.]

       

      [NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR EITHER A REPRESENTATION
        LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN
        SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
        AS
        AMENDED (“ERISA”),
        OR A
        PLAN SUBJECT TO SECTION 4975 OF THE CODE, OR A PLAN SUBJECT TO APPLICABLE
        FEDERAL, STATE OR LOCAL LAW (“SIMILAR
        LAW”)
        MATERIALLY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE OR A
        PERSON
        INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN, OR, IF THE TRANSFEREE
        IS AN INSURANCE COMPANY, A REPRESENTATION LETTER THAT IT IS USING THE ASSETS
        OF
        ITS GENERAL ACCOUNT AND THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE
        ARE
        COVERED UNDER SECTIONS I AND III OF PROHIBITED TRANSACTION CLASS EXEMPTION
        95-60
        OR AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR, TO
        THE
        EFFECT THAT THE PURCHASE OR HOLDING OF THIS CERTIFICATE WILL NOT CONSTITUTE
        OR
        RESULT IN A PROHIBITED TRANSACTION WITHIN THE MEANING OF ERISA, SECTION 4975
        OF
        THE CODE OR ANY SIMILAR LAW AND WILL NOT SUBJECT THE TRUSTEE, THE DEPOSITOR,
        THE
        SECURITIES ADMINISTRATOR, THE MASTER SERVICER OR THE SERVICER TO ANY OBLIGATION
        IN ADDITION TO THOSE EXPRESSLY UNDERTAKEN IN THE AGREEMENT OR TO ANY LIABILITY.
        NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER
        OF
        THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE
        I
        OF ERISA, SECTION 4975 OF THE CODE OR SIMILAR LAW WITHOUT THE REPRESENTATION
        LETTER OR OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR
        AS
        DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.] [To be added to the
        Class M-10 Certificates.]

      
        
          
          

        

        
          EXHIBIT
            A-2

          
            

          

        

        
          
          

        

      

       

      [THE
        HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF REPRESENTS AND WARRANTS
        THAT
        (A) UNTIL THE EXPIRATION OF THE APPLICABLE “DISTRIBUTION COMPLIANCE PERIOD”
WITHIN THE MEANING OF REGULATION S, ANY OFFER, SALE, PLEDGE OR OTHER TRANSFER
        OF
        THIS CERTIFICATE SHALL NOT BE MADE IN THE UNITED STATES OR TO, OR FOR THE
        ACCOUNT OR BENEFIT OF, ANY U.S. PERSON (EACH AS DEFINED IN REGULATION S)
        AND (B)
        IF THIS CERTIFICATE IS HELD WITHIN THE UNITED STATES OR SUCH HOLDER IS A
        U.S.
        PERSON OR THIS CERTIFICATE IS HELD FOR THE ACCOUNT OR SUCH BENEFIT OF, A
        U.S.
        PERSON (EACH AS DEFINED IN REGULATION S) SUCH CERTIFICATE WAS ACQUIRED ONLY
        (1)
        PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
        THE
        1933 ACT OR (2) BY SUCH HOLDER AS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
        IN RULE 144A UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
        THE
        ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
        TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A.][For any Private Certificate
        to
        be acquired or transferred pursuant to Regulation S.]

      

      
        	
                Certificate
                  No:

              	 	
                1

              
	 	 	 
	
                Cut-off
                  Date:

              	 	
                July
                  1, 2006

              
	 	 	 
	
                First
                  Distribution Date:

              	 	
                August
                  25, 2006

              
	 	 	 
	
                Initial
                  Certificate Balance of 

                this
                  Certificate 

                (“Denomination”):

              	 	
                $[                           
                  ]

              
	 	 	 
	
                Initial
                  Certificate Balances of all 

                Certificates
                  of this Class:

              	
                A-IO

              	
                $210,415,000*

              
	 	
                A-1

              	
                $370,019,000

              
	 	
                A-2

              	
                $
                  90,908,000

              
	 	
                A-3

              	
                $167,427,000

              
	 	
                A-4

              	
                $
                  45,810,000

              

      

       

      
        
          
          

        

        
          EXHIBIT
            A-3

          
            

          

        

        
          
          

        

      

       

      
        	 	
                A-5

              	
                $
                  8,000,000

              
	 	
                M-1

              	
                $
                  28,195,000

              
	 	
                M-2

              	
                $
                  26,091,000

              
	 	
                M-3

              	
                $
                  15,992,000

              
	 	
                M-4

              	
                $
                  13,887,000

              
	 	
                M-5

              	
                $
                  13,046,000

              
	 	
                M-6

              	
                $
                  12,625,000

              
	 	
                M-7

              	
                $
                  11,362,000

              
	 	
                M-8

              	
                $
                  10,521,000

              
	 	
                M-9

              	
                $
                  6,312,000

              
	 	
                M-10

              	
                $
                  8,417,000

              
	
                *
                  Notional Amount

              	 	 
	 	 	 
	
                Interest
                  Rate:

              	
                A-IO

              	
                1.50%
                  per annum (subject to Class A-IO Available Funds Cap)

              
	 	
                A-1

              	
                Variable

              
	 	
                A-2

              	
                Variable

              
	 	
                A-3

              	
                Variable

              
	 	
                A-4

              	
                Variable

              
	 	
                A-5

              	
                None

              
	 	
                M-1

              	
                Variable

              
	 	
                M-2

              	
                Variable

              
	 	
                M-3

              	
                Variable

              
	 	
                M-4

              	
                Variable

              
	 	
                M-5

              	
                Variable

              
	 	
                M-6

              	
                Variable

              
	 	
                M-7

              	
                Variable

              
	 	
                M-8

              	
                Variable

              
	 	
                M-9

              	
                Variable

              
	 	
                M-10

              	
                Variable

              
	 	 	 
	
                CUSIP:

              	
                A-IO

              	
                40430M
                  AA 5

              
	 	
                A-1

              	
                40430M
                  AB 3

              
	 	
                A-2

              	
                40430M
                  AC 1

              
	 	
                A-3

              	
                40430M
                  AD 9

              
	 	
                A-4

              	
                40430M
                  AE 7

              
	 	
                A-5

              	
                40430M
                  AF 4

              
	 	
                M-1

              	
                40430M
                  AG 2

              
	 	
                M-2

              	
                40430M
                  AH 0

              
	 	
                M-3

              	
                40430M
                  AJ 6

              
	 	
                M-4

              	
                40430M
                  AK 3

              
	 	
                M-5

              	
                40430M
                  AL 1

              
	 	
                M-6

              	
                40430M
                  AM 9

              
	 	
                M-7

              	
                40430M
                  AN 7

              
	 	
                M-8

              	
                40430M
                  AP 2

              

      

       

      
        
          
          

        

        
          EXHIBIT
            A-4

          
            

          

        

        
          
          

        

      

       

      
        	 	
                M-9

              	
                40430M
                  AQ 0

              
	 	
                M-10

              	
                40430M
                  AR 8

              
	 	 	 
	
                ISIN:

              	
                A-IO

              	
                US40430MAA53

              
	 	
                A-1

              	
                US40430MAB37

              
	 	
                A-2

              	
                US40430MAC10

              
	 	
                A-3

              	
                US40430MAD92

              
	 	
                A-4

              	
                US40430MAE75

              
	 	
                A-5

              	
                US40430MAF41

              
	 	
                M-1

              	
                US40430MAG24

              
	 	
                M-2

              	
                US40430MAH07

              
	 	
                M-3

              	
                US40430MAJ62

              
	 	
                M-4

              	
                US40430MAK36

              
	 	
                M-5

              	
                US40430MAL19

              
	 	
                M-6

              	
                US40430MAM91

              
	 	
                M-7

              	
                US40430MAN74

              
	 	
                M-8

              	
                US40430MAP23

              
	 	
                M-9

              	
                US40430MAQ06

              
	 	
                M-10

              	
                US40430MAR88

              

      

      

      
        
          
            
            

          

          
            EXHIBIT
              A-5

            
              

            

          

          
            
            

          

        

      

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates, Series 2006-WMC1

      [Class
        [A-IO] [A[-__][Class M-__]

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

       

      [Principal
        in respect of this Certificate is distributable monthly as set forth
        herein.][Insert
        for every Class A Certificate except for Class A-IO
        Certificate.]
        [Accordingly, the Certificate Balance at any time may be less than the
        Certificate Balance as set forth herein.] [Insert
        for every Class A Certificate except for Class A-IO
        Certificate.]
        Interest in respect of this Certificate is distributable monthly as set forth
        herein based on the notional balance of this certificate up to and including
        the
        Distribution Date in October 2007; thereafter, no distributions will be made
        with respect to this Certificate. [Insert
        for Class A-IO Certificate only]
        This
        Certificate does not evidence an obligation of, or an interest in, and is
        not
        guaranteed by the Depositor, the Trustee or any other party to the Agreement
        referred to below or any of their respective affiliates. Neither this
        Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
        agency or instrumentality.

       

      This
        certifies that [____________]is the registered owner of the Percentage Interest
        evidenced by this Certificate (obtained by dividing the [denomination of
        this
        Certificate] [Insert
        for every Class A Certificate except for Class A-IO
        Certificate.]
        [notional balance of this Certificate][Insert
        for Class A-IO Certificate only]
        by the
        [aggregate of the denominations of all Certificates] [Insert
        for every Class A Certificate except for Class A-IO
        Certificate.]
        [Class
        Notional Balance][Insert
        for Class A-IO Certificate.]
        of the
        Class to which this Certificate belongs) in certain monthly distributions
        [of
        principal and interest][Insert
        for every Class A Certificate except for the Class A-5 Certificate and Class
        A-IO Certificate.][of
        principal][Insert
        for Class A-5 Certificate only.][of
        interest][Insert
        for Class A-IO Certificate only]
        pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
        specified above (the “Agreement”)
        among
        HSI Asset Securitization Corporation, as depositor (the “Depositor”),
        WMC
        Mortgage Corp., as originator, Wells Fargo Bank, N.A., as servicer, master
        servicer, (in such capacity, the “Master
        Servicer”)
        securities administrator (in such capacity, the “Securities
        Administrator”)
        and
        custodian, Clayton Fixed Income Services, Inc., as credit risk manager, and
        Deutsche Bank National Trust Company, 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.

       

      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.

      
        
          
          

        

        
          EXHIBIT
            A-6

          
            

          

        

        
          
          

        

      

       

      This
        Certificate shall not be entitled to any benefit under the Agreement or be
        valid
        for any purpose unless manually authenticated by an authorized signatory
        of the
        Securities Administrator.

       

      *         *         *

      

       

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:

              	 

      

       

      WELLS
        FARGO BANK, N.A.,
not
        in
        its individual capacity, but solely as
Securities
        Administrator

       

      By: 
        ___________________________________________

       

      Authenticated:

       

       

      By: 
        ________________________________________
Authorized
        Signatory of
WELLS
        FARGO BANK, N.A.,
not
        in
        its individual capacity,
but
        solely as Securities Administrator

      

      
        
          
            
            

          

          
            EXHIBIT
              A-7

            
              

            

          

          
            
            

          

        

      

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION 

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as HSI
        Asset Securitization Corporation Trust 2006-WMC1 Mortgage Pass-Through
        Certificates, of the Series specified on the face hereof (herein collectively
        called the “Certificates”),
        and
        representing a beneficial ownership interest in the Trust Fund 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 or Supplemental Interest Trust
        Account for payment hereunder and that neither the Trustee nor the Securities
        Administrator is 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 day is not a Business Day, the Business Day immediately
        following (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. [The Record Date applicable
        to
        each Distribution Date is the Business Day immediately preceding such
        Distribution Date.][Insert
        for every Class A Certificate (except for any Class A-IO Certificate) and
        every
        Class M Certificate.]
        [The
        Record Date applicable to each Distribution Date is the last Business Day
        of the
        calendar month next preceding the month of such Distribution Date.]
        [Insert
        for Class A-IO Certificates only.]

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Securities Administrator in writing at least five Business Days
        prior to the related Record Date and such Certificateholder shall satisfy
        the
        conditions to receive such form of payment set forth in the Agreement, or,
        if
        not, by check mailed by first class mail to the address of such
        Certificateholder 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 offices designated by the Securities
        Administrator for such purposes or such other location 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
        parties to the Agreement with the consent of the Holders of Certificates
        affected by such amendment evidencing the requisite Percentage Interest,
        as
        provided 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.

      
        
          
          

        

        
          EXHIBIT
            A-8

          
            

          

        

        
          
          

        

      

       

      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 Securities Administrator upon surrender of this Certificate for registration
        of transfer at the offices designated by the Securities Administrator for
        such
        purposes, accompanied by a written instrument of transfer in form satisfactory
        to the Securities Administrator 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 Fund 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 Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge payable in connection
        therewith.

       

      The
        Trustee, the Depositor and the Securities Administrator and any agent of
        the
        Trustee, the Depositor or the Securities Administrator may treat the Person
        in
        whose name this Certificate is registered as the owner hereof for all purposes,
        and neither the Trustee, the Depositor, the Securities Administrator nor
        any
        such agent shall be affected by any notice to the contrary.

       

      The
        Master Servicer, upon the instruction of the Depositor, shall purchase the
        Mortgage Loans and therefore cause the termination of the Trust on any Optional
        Termination Date, which is any Distribution Date in which the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period is less than or equal to 10% of the aggregate Stated Principal Balance
        of
        the Mortgage Loans as of the Cut-off Date; provided,
        however,
        the
        Master Servicer in its own right may exercise the option to purchase the
        Mortgage Loans and thereby cause the termination of the Trust on any
        Distribution Date in which the aggregate Stated Principal Balance of the
        Mortgage Loans as of the last day of the related Due Period is less than
        or
        equal to 5% of the aggregate Stated Principal Balance of the Mortgage Loans
        as
        of the Cut-off Date, if the Depositor has not previously provided instructions
        to the Master Servicer to exercise such option on the Depositor’s behalf on such
        Distribution Date. 

      
        
          
          

        

        
          EXHIBIT
            A-9

          
            

          

        

        
          
          

        

      

       

      The
        obligations and responsibilities created by the Agreement will terminate
        as
        provided in Section 11.01 of the Agreement.

       

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning.

       

       

       

       

       

       

      
 

      
        
          
            
            

          

          
            EXHIBIT
              A-10

            
              

            

          

          
            
            

          

        

      

      

       

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
        unto

      ____________________________________________________________________________________________________________________

      
        
          ____________________________________________________________________________________________________________________

          ____________________________________________________________________________________________________________________

        

      

      
        ____________________________________________________________________________________________________________________

      

       

      (Please
        print or typewrite name and address including postal zip code of
        assignee)

       

      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 Fund.

       

      I
        (We)
        further direct the Securities Administrator 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

              

      

      

       

      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.

      

      
        
          
            
            

          

          
            EXHIBIT
              A-11

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        B

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
        TRANSFEROR DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFEROR LETTER IN
        THE
        FORM OF EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER
        (I) THE SECURITIES ADMINISTRATOR RECEIVES EITHER A RULE 144A INVESTMENT
        LETTER OR REGULATION S INVESTMENT LETTER IN THE FORM OF EXHIBIT I-A AND
        EXHIBIT I-B, RESPECTIVELY, TO THE AGREEMENT REFERRED TO HEREIN OR (II) THE
        SECURITIES ADMINISTRATOR RECEIVES AN OPINION OF COUNSEL, DELIVERED AT THE
        EXPENSE OF THE TRANSFEROR, STATING THAT SUCH TRANSFER MAY BE MADE WITHOUT
        REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A REPRESENTATION LETTER
        TO
        THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO
        TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”),
        OR A
        PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
        SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
        LAW”)
        OR A
        PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE
        EVENT
        THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER
        TO A
        PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
        SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
        ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
        SUCH
        PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID
        AND OF
        NO EFFECT.

       

      

      
        	
                Certificate
                  No.

              	
                :

              	
                P-1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                July
                  1, 2006

              
	 	 	 
	
                First
                  Distribution Date

              	
                :

              	
                August
                  25, 2006

              
	 	 	 
	
                Percentage
                  Interest of this 

                Certificate
                  

              	
                :

              	
                100%

              
	 	 	 
	
                Interest

              	
                :

              	
                None

              
	 	 	 
	
                CUSIP

              	
                :

              	
                40430M
                  AS 6

              
	 	 	 
	
                ISIN

              	
                :

              	
                US40430MAS61

              

      

      

      
        
          
            
            

          

          
            EXHIBIT
              B-1

            
              

            

          

          
            
            

          

        

      

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates, Series 2006-WMC1

       

      Class
        P

       

      evidencing
        a percentage interest in the distribution of Prepayment Charges allocable
        to the
        Certificates of the above-referenced Class.

       

      Distributions
        in respect of this Certificate are distributable monthly as set forth herein.
        This Certificate does not evidence an obligation of, or an interest in, and
        is
        not guaranteed by the Depositor, the Trustee or any other party to the Agreement
        referred to below or any of their respective affiliates. Neither this
        Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
        agency or instrumentality.

       

      This
        certifies that HSBC SECURITIES (USA) INC. is the registered owner of the
        Percentage Interest evidenced by this Certificate in certain monthly
        distributions of Prepayment Charges pursuant to a Pooling and Servicing
        Agreement dated as of the Cut-off Date specified above (the “Agreement”)
        among
        HSI Asset Securitization Corporation, as depositor (the “Depositor”),
        WMC
        Mortgage Corp., as originator, Wells Fargo Bank, N.A., as servicer, master
        servicer, (in such capacity, the “Master
        Servicer”)
        securities administrator (in such capacity, the “Securities
        Administrator”)
        and
        custodian, Clayton Fixed Income Services, Inc., as credit risk manager, and
        Deutsche Bank National Trust Company, 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 an Interest Rate and will solely be entitled to
        receive distributions of Prepayment Charges 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 offices designated by the Securities Administrator for
        such
        purpose, or such other location specified in the notice to
        Certificateholders.

       

      No
        transfer of a Certificate of this Class 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, the Securities Administrator
        shall require the transferor to execute a transferor certificate (in
        substantially the form attached to the Agreement) and deliver either (i) a
        Rule 144A Investment Letter or a Regulation S Investment Letter, as
        applicable, in either case substantially in the form attached as Exhibit
        I-A and
        Exhibi I-B, respectively, to the Agreement, or (ii) a written Opinion of
        Counsel to the Securities Administrator 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 be an expense of the transferor.

      
        
          
          

        

        
          EXHIBIT
            B-2

          
            

          

        

        
          
          

        

      

       

      No
        transfer of a Certificate of this Class shall be made unless the Securities
        Administrator shall have received a representation letter from the transferee
        of
        such Certificate, acceptable to and in form and substance satisfactory to
        the
        Securities Administrator, to the effect that such transferee is not an employee
        benefit plan subject to Section 406 of ERISA, Section 4975 of the Code
        or any materially similar provisions of applicable federal, state or local
        law
        (“Similar
        Law”),
        or a
        person acting on behalf of or investing plan assets of any such plan, which
        representation letter shall not be an expense of the Securities
        Administrator.

       

      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 authenticated by an authorized signatory
        of the
        Securities Administrator.

       

      *          *          *

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              B-3

            
              

            

          

          
            
            

          

        

      

      

       

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:

              	 

      

       

      WELLS
        FARGO BANK, N.A.,
not
        in
        its individual capacity, but solely as
Securities
        Administrator

       

      By:
        _______________________________________

       

      Authenticated:

       

       

      By: 
        __________________________________
Authorized
        Signatory of
WELLS
        FARGO BANK, N.A.,
not
        in
        its individual capacity,
but
        solely as Securities Administrator

      

      
        
          
            
            

          

          
            EXHIBIT
              B-4

            
              

            

          

          
            
            

          

        

      

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as HSI
        Asset Securitization Corporation Trust 2006-WMC1 Mortgage Pass-Through
        Certificates, of the Series specified on the face hereof (herein collectively
        called the “Certificates”),
        and
        representing a beneficial ownership interest in the Trust Fund 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 or constituting Prepayment Charges
        for payment hereunder and that neither the Trustee nor the Securities
        Administrator is 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 day is not a Business Day, the Business Day immediately
        following (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. The Record Date applicable
        to
        each Distribution Date is the last Business Day of the month next preceding
        the
        month of such Distribution Date.

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Securities Administrator in writing at least five Business Days
        prior to the related Record Date and such Certificateholder shall satisfy
        the
        conditions to receive such form of payment set forth in the Agreement, or,
        if
        not, by check mailed by first class mail to the address of such
        Certificateholder 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 offices designated by the Securities
        Administrator for such purposes or such other location 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
        parties to the Agreement with the consent of the Holders of Certificates
        affected by such amendment evidencing the requisite Percentage Interest,
        as
        provided 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.

      
        
          
          

        

        
          EXHIBIT
            B-5

          
            

          

        

        
          
          

        

      

       

      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 Securities Administrator upon surrender of this Certificate for registration
        of transfer at the offices designated by the Securities Administrator for
        such
        purposes, accompanied by a written instrument of transfer in form satisfactory
        to the Securities Administrator 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 Fund 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 Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge payable in connection
        therewith.

       

      The
        Trustee, the Depositor and the Securities Administrator and any agent of
        the
        Trustee, the Depositor or the Securities Administrator may treat the Person
        in
        whose name this Certificate is registered as the owner hereof for all purposes,
        and neither the Trustee, the Depositor, the Securities Administrator nor
        any
        such agent shall be affected by any notice to the contrary.

       

      The
        Master Servicer, upon the instruction of the Depositor, shall purchase the
        Mortgage Loans and therefore cause the termination of the Trust on any Optional
        Termination Date, which is any Distribution Date in which the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period is less than or equal to 10% of the aggregate Stated Principal Balance
        of
        the Mortgage Loans as of the Cut-off Date; provided,
        however,
        the
        Master Servicer in its own right may exercise the option to purchase the
        Mortgage Loans and thereby cause the termination of the Trust on any
        Distribution Date in which the aggregate Stated Principal Balance of the
        Mortgage Loans as of the last day of the related Due Period is less than
        or
        equal to 5% of the aggregate Stated Principal Balance of the Mortgage Loans
        as
        of the Cut-off Date, if the Depositor has not previously provided instructions
        to the Master Servicer to exercise such option on the Depositor’s behalf on such
        Distribution Date. 

       

      The
        obligations and responsibilities created by the Agreement will terminate
        as
        provided in Section 11.01 of the Agreement.

      
        
          
          

        

        
          EXHIBIT
            B-6

          
            

          

        

        
          
          

        

      

       

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning.

       

       

       

       

       

       

       

       

       

       

       

      
 

      

      
        
          
            
            

          

          
            EXHIBIT
              B-7

            
              

            

          

          
            
            

          

        

      

      
         

        ASSIGNMENT

         

        FOR
          VALUE
          RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
          unto

        ____________________________________________________________________________________________________________________

        
          
            ____________________________________________________________________________________________________________________

            ____________________________________________________________________________________________________________________

          

        

        
          ____________________________________________________________________________________________________________________

        

         

        (Please
          print or typewrite name and address including postal zip code of
          assignee)

         

        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 Fund.

         

        I
          (We)
          further direct the Securities Administrator 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

                

        

        

         

        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.

      

       

      
        
          
            
            

          

          
            EXHIBIT
              B-8

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
        C

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN TWO “REAL ESTATE MORTGAGE INVESTMENT CONDUITS,” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
        AS
        AMENDED (THE “CODE”).

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFER AFFIDAVIT
        IN
        ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED (I) TO A PERSON
        OTHER THAN A PERMITTED TRANSFEREE IN COMPLIANCE WITH SECTION 5.02I OF THE
        AGREEMENT OR (II) UNLESS THE TRANSFEREE DELIVERS TO THE SECURITIES
        ADMINISTRATOR A REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE
        IS NOT
        AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
        SECURITY ACT OF 1974, AS AMENDED (“ERISA”),
        OR A
        PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
        SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
        LAW”)
        OR A
        PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE
        EVENT
        THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER
        TO A
        PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
        SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
        ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
        SUCH
        PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID
        AND OF
        NO EFFECT.

       

      

      
        	
                Certificate
                  No.

              	
                :

              	
                R-1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                July
                  1, 2006

              
	 	 	 
	
                First
                  Distribution Date

              	
                :

              	
                August
                  25, 2006

              
	 	 	 
	
                Percentage
                  Interest of this 

                Certificate

              	
                :

              	
                100.00%

              
	 	 	 
	
                Interest
                  Rate

              	
                :

              	
                None

              
	 	 	 
	
                CUSIP

              	
                :

              	
                40430M
                  AU 1

              
	 	 	 
	
                ISN

              	
                :

              	
                US40430MAU18

              

      

      

      
        
          
            
            

          

          
            EXHIBIT
              C-1

            
              

            

          

          
            
            

          

        

      

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates, Series 2006-WMC1

       

      Class
        R

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

       

      Distributions
        in respect of this Certificate are distributable monthly as set forth herein.
        This Class R Certificate has no Certificate Balance and is not entitled to
        distributions in respect of principal or interest. This Certificate does
        not
        evidence an obligation of, or an interest in, and is not guaranteed by the
        Depositor, the Trustee or any other party to the Agreement referred to below
        or
        any of their respective affiliates. Neither this Certificate nor the Mortgage
        Loans are guaranteed or insured by any governmental agency or
        instrumentality.

       

      This
        certifies that [HSBC SECURITIES (USA) INC.] is the registered owner of the
        Percentage Interest specified above of any monthly distributions due to the
        Class R Certificates pursuant to a Pooling and Servicing Agreement dated as
        of the Cut-off Date specified above (the “Agreement”)
        among
        HSI Asset Securitization Corporation, as depositor (the “Depositor”),
        WMC
        Mortgage Corp., as originator, Wells Fargo Bank, N.A., as servicer, master
        servicer, (in such capacity, the “Master
        Servicer”)
        securities administrator (in such capacity, the “Securities
        Administrator”)
        and
        custodian, Clayton Fixed Income Services, Inc., as credit risk manager, and
        Deutsche Bank National Trust Company, 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.

       

      Any
        distribution of the proceeds of any remaining assets of the Trust will be
        made
        only upon presentment and surrender of this Class R Certificate at the
        offices designated by the Securities Administrator for such purpose, or such
        other location specified in the notice to Certificateholders.

       

      No
        transfer of a Class R Certificate shall be made unless the Securities
        Administrator shall have received a representation letter from the transferee
        of
        such Certificate, acceptable to and in form and substance satisfactory to
        the
        Securities Administrator, to the effect that such transferee is not an employee
        benefit plan or arrangement subject to Section 406 of ERISA, a plan or
        arrangement subject to Section 4975 of the Code or a plan subject to
        Similar Law, or a person acting on behalf of any such plan or arrangement
        nor
        using the assets of any such plan or arrangement to effect such transfer,
        which
        representation letter shall not be an expense of the Trustee, the Securities
        Administrator, the Depositor, the Master Servicer or the Trust Fund. In the
        event that such representation is violated, or any attempt is made to transfer
        to a plan or arrangement subject to Section 406 of ERISA or a plan subject
        to Section 4975 of the Code or a plan subject to Similar Law, or a person
        acting on behalf of any such plan or arrangement or using the assets of any
        such
        plan or arrangement, such attempted transfer or acquisition shall be void
        and of
        no effect.

      
        
          
          

        

        
          EXHIBIT
            C-2

          
            

          

        

        
          
          

        

      

       

      Each
        Holder of this Class R Certificate shall be deemed by the acceptance or
        acquisition an Ownership Interest in this Class R Certificate to have
        agreed to be bound by the following provisions, and the rights of each Person
        acquiring any Ownership Interest in this Class R Certificate are expressly
        subject to the following provisions: (i) each Person holding or acquiring
        any Ownership Interest in this Class R Certificate shall be a Permitted
        Transferee and shall promptly notify the Securities Administrator of any
        change
        or impending change in its status as a Permitted Transferee, (ii) no
        Ownership Interest in this Class R Certificate may be registered on the
        Closing Date or thereafter transferred, and the Securities Administrator
        shall
        not register the Transfer of this Certificate unless, in addition to the
        certificates required to be delivered to the Securities Administrator under
        Section 5.02(b) of the Agreement, the Securities Administrator shall have
        been furnished with a Transfer Affidavit of the initial owner or the proposed
        transferee in the form attached as Exhibit G to the Agreement,
        (iii) each Person holding or acquiring any Ownership Interest in this
        Class R Certificate shall agree (A) to obtain a Transfer Affidavit
        from any other Person to whom such Person attempts to Transfer its Ownership
        Interest this Class R Certificate, (B) to obtain a Transfer Affidavit
        from any Person for whom such Person is acting as nominee, trustee or agent
        in
        connection with any Transfer of this Class R Certificate, (C) not to
        cause income with respect to the Class R Certificate to be attributable to
        a foreign permanent establishment or fixed base, within the meaning of an
        applicable income tax treaty, of such Person or any other U.S. Person and
        (D) not to Transfer the Ownership Interest in this Class R Certificate
        or to cause the Transfer of the Ownership Interest in this Class R
        Certificate to any other Person if it has actual knowledge that such Person
        is a
        Non-Permitted Transferee and (iv) any attempted or purported Transfer of
        the Ownership Interest in this Class R Certificate in violation of the
        provisions herein shall be absolutely null and void and shall vest no rights
        in
        the purported Transferee.

       

      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 authenticated by an authorized signatory
        of the
        Securities Administrator.

       

      *            *               *

      

      
        
          
            
            

          

          
            EXHIBIT
              C-3

            
              

            

          

          
            
            

          

        

      

      

       

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:

              	 

      

       

      WELLS
        FARGO BANK, N.A.,
not
        in
        its individual capacity, but solely as
Securities
        Administrator

       

      By:
        _____________________________________

       

      Authenticated:

       

       

      By: 
        ______________________________________
Authorized
        Signatory of
WELLS
        FARGO BANK, N.A.,
not
        in
        its individual capacity,
but
        solely as Securities Administrator

      

      
        
          
            
            

          

          
            EXHIBIT
              C-4

            
              

            

          

          
            
            

          

        

      

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as HSI
        Asset Securitization Corporation Trust 2006-WMC1 Mortgage Pass-Through
        Certificates, of the Series specified on the face hereof (herein collectively
        called the “Certificates”),
        and
        representing a beneficial ownership interest in the Trust Fund 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 or Supplemental Interest Trust
        Account for payment hereunder and that neither the Trustee nor the Securities
        Administrator is 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 day is not a Business Day, the Business Day immediately
        following (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. The Record Date applicable
        to
        each Distribution Date is the last Business Day of the month next preceding
        the
        month of such Distribution Date.

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Securities Administrator in writing at least five Business Days
        prior to the related Record Date and such Certificateholder shall satisfy
        the
        conditions to receive such form of payment set forth in the Agreement, or,
        if
        not, by check mailed by first class mail to the address of such
        Certificateholder 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 offices designated by the Securities
        Administrator for such purpose, or such other location 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
        parties to the Agreement with the consent of the Holders of Certificates
        affected by such amendment evidencing the requisite Percentage Interest,
        as
        provided 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.

      
        
          
          

        

        
          EXHIBIT
            C-5

          
            

          

        

        
          
          

        

      

       

      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 Securities Administrator upon surrender of this Certificate for registration
        of transfer at the offices designated by the Securities Administrator for
        such
        purposes, accompanied by a written instrument of transfer in form satisfactory
        to the Securities Administrator 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 Fund 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 Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge payable in connection
        therewith.

       

      The
        Trustee, the Depositor and the Securities Administrator and any agent of
        the
        Trustee, the Depositor or the Securities Administrator may treat the Person
        in
        whose name this Certificate is registered as the owner hereof for all purposes,
        and neither the Trustee, the Depositor, the Securities Administrator nor
        any
        such agent shall be affected by any notice to the contrary.

       

      The
        Master Servicer, upon the instruction of the Depositor, shall purchase the
        Mortgage Loans and therefore cause the termination of the Trust on any Optional
        Termination Date, which is any Distribution Date in which the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period is less than or equal to 10% of the aggregate Stated Principal Balance
        of
        the Mortgage Loans as of the Cut-off Date; provided,
        however,
        the
        Master Servicer in its own right may exercise the option to purchase the
        Mortgage Loans and thereby cause the termination of the Trust on any
        Distribution Date in which the aggregate Stated Principal Balance of the
        Mortgage Loans as of the last day of the related Due Period is less than
        or
        equal to 5% of the aggregate Stated Principal Balance of the Mortgage Loans
        as
        of the Cut-off Date, if the Depositor has not previously provided instructions
        to the Master Servicer to exercise such option on the Depositor’s behalf on such
        Distribution Date. 

       

      The
        obligations and responsibilities created by the Agreement will terminate
        as
        provided in Section 11.01 of the Agreement.

      
        
          
          

        

        
          EXHIBIT
            C-6

          
            

          

        

        
          
          

        

      

       

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning.

       

       

       

       

       

       

       

      
 

      

      
        
          
            
            

          

          
            EXHIBIT
              C-7

            
              

            

          

          
            
            

          

        

      

      
         

        ASSIGNMENT

         

        FOR
          VALUE
          RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
          unto

        ____________________________________________________________________________________________________________________

        
          
            ____________________________________________________________________________________________________________________

            ____________________________________________________________________________________________________________________

          

        

        
          ____________________________________________________________________________________________________________________

        

         

        (Please
          print or typewrite name and address including postal zip code of
          assignee)

         

        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 Fund.

         

        I
          (We)
          further direct the Securities Administrator 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

                

        

        

         

        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.

      

      

      
        
          
            
            

          

          
            EXHIBIT
              C-8

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        D

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN INTEREST
        IN
        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”)
        AND
        CERTAIN OTHER ASSETS.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
        TRANSFEROR DELIVERS TO THE SECURITIES ADMINISTRATOR A TRANSFEROR LETTER IN
        THE
        FORM OF EXHIBIT H TO THE AGREEMENT REFERRED TO HEREIN AND EITHER
        (I) THE SECURITIES ADMINISTRATOR RECEIVES EITHER A RULE 144A INVESTMENT
        LETTER OR A REGULATION S INVESTMENT LETTER IN THE FORM OF EXHIBIT I-A AND
        EXHIBIT I-B, RESPECTIVELY, TO THE AGREEMENT REFERRED TO HEREIN OR (II) THE
        SECURITIES ADMINISTRATOR RECEIVES AN OPINION OF COUNSEL, DELIVERED AT THE
        EXPENSE OF THE TRANSFEROR, THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

       

      NEITHER
        THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
        TRANSFEREE DELIVERS TO THE SECURITIES ADMINISTRATOR A REPRESENTATION LETTER
        TO
        THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO
        TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
        (“ERISA”),
        OR A
        PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO MATERIALLY
        SIMILAR PROVISIONS OF APPLICABLE FEDERAL, STATE OR LOCAL LAW (“SIMILAR
        LAW”)
        OR A
        PERSON INVESTING ON BEHALF OF OR WITH PLAN ASSETS OF SUCH A PLAN. IN THE
        EVENT
        THAT SUCH REPRESENTATION IS VIOLATED, OR ANY ATTEMPT IS MADE TO TRANSFER
        TO A
        PLAN OR ARRANGEMENT SUBJECT TO SECTION 406 OF ERISA, A PLAN SUBJECT TO
        SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO SIMILAR LAW, OR A PERSON
        ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS OF ANY
        SUCH
        PLAN OR ARRANGEMENT, SUCH ATTEMPTED TRANSFER OR ACQUISITION SHALL BE VOID
        AND OF
        NO EFFECT.

       

      

      
        	
                Certificate
                  No.

              	
                :

              	
                X-1

              
	 	 	 
	
                Cut-off
                  Date

              	
                :

              	
                July
                  1, 2006

              
	 	 	 
	
                First
                  Distribution Date

              	
                :

              	
                August
                  25, 2006

              
	 	 	 
	
                Percentage
                  Interest of this 

                Certificate

              	
                :

              	
                100%

              
	 	 	 
	
                Interest
                  Rate

              	
                :

              	
                None

              
	 	 	 
	
                CUSIP

              	
                :

              	
                40430M
                  AT 4

              
	 	 	 
	
                ISIN

              	
                :

              	
                US40430MAT45

              

      

      

      
        
          
            
            

          

          
            EXHIBIT
              D-1

            
              

            

          

          
            
            

          

        

      

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates, Series 2006-WMC1

       

      Class
        X

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class.

       

      Distributions
        in respect of this Certificate are distributable monthly as set forth herein.
        This Certificate does not evidence an obligation of, or an interest in, and
        is
        not guaranteed by the Depositor, the Trustee or any other party to the Agreement
        referred to below or any of their respective affiliates. Neither this
        Certificate nor the Mortgage Loans are guaranteed or insured by any governmental
        agency or instrumentality.

       

      This
        certifies that [____________________] is the registered owner of the Percentage
        Interest evidenced by this Certificate (obtained by dividing the denomination
        of
        this Certificate by the aggregate of the denominations of all Certificates
        of
        the Class to which this Certificate belongs) in certain monthly distributions
        pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
        specified above (the “Agreement”)
        among
        HSI Asset Securitization Corporation, as depositor (the “Depositor”),
        WMC
        Mortgage Corp., as originator, Wells Fargo Bank, N.A., as servicer, master
        servicer, (in such capacity, the “Master
        Servicer”)
        securities administrator (in such capacity, the “Securities
        Administrator”)
        and
        custodian, Clayton Fixed Income Services, Inc., as credit risk manager, and
        Deutsche Bank National Trust Company, 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 Certificate Balance or an Interest 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
        offices designated by the Securities Administrator for such purpose, or such
        other location specified in the notice to Certificateholders.

       

      No
        transfer of a Certificate of this Class 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, the Securities Administrator
        shall require the transferor to execute a transferor certificate (in
        substantially the form attached to the Agreement) and deliver either (i) a
        Rule 144A Investment Letter or Regulation S Investment Letter, as
        applicable, in either case substantially in the form attached to the Agreement,
        or (ii) a written Opinion of Counsel to the Securities Administrator 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 be an expense of the
        transferor.

      
        
          
          

        

        
          EXHIBIT
            D-2

          
            

          

        

        
          
          

        

      

       

      No
        transfer of a Certificate of this Class shall be made unless the Securities
        Administrator shall have received a representation letter from the transferee
        of
        such Certificate, acceptable to and in form and substance satisfactory to
        the
        Securities Administrator, to the effect that such transferee is not an employee
        benefit plan subject to Section 406 of ERISA, Section 4975 of the Code
        or any materially similar provisions of applicable federal, state or local
        law
        (“Similar
        Law”),
        or a
        person acting on behalf of or investing plan assets of any such plan, which
        representation letter shall not be an expense of the Securities
        Administrator.

       

      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 authenticated by an authorized signatory
        of the
        Securities Administrator.

       

      *             *              *

      

      
        
          
            
            

          

          
            EXHIBIT
              D-3

            
              

            

          

          
            
            

          

        

      

      

       

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      
        	
                Dated:

              	 

      

       

      WELLS
        FARGO BANK, N.A.,
not
        in
        its individual capacity, but solely as
Securities
        Administrator

       

      By:
        __________________________________________

       

      Authenticated:

       

       

      By: 
        ______________________________________
Authorized
        Signatory of
WELLS
        FARGO BANK, N.A.,
not
        in
        its individual capacity,
but
        solely as Securities Administrator

      

      
        
          
            
            

          

          
            EXHIBIT
              D-4

            
              

            

          

          
            
            

          

        

      

      

       

      HSI
        ASSET
        SECURITIZATION CORPORATION

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as HSI
        Asset Securitization Corporation Trust 2006-WMC1 Mortgage Pass-Through
        Certificates, of the Series specified on the face hereof (herein collectively
        called the “Certificates”),
        and
        representing a beneficial ownership interest in the Trust Fund 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 or Supplemental Interest Trust
        Account for payment hereunder and that neither the Trustee nor the Securities
        Administrator is 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, the Business Day
        immediately following (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. The Record Date applicable
        to
        each Distribution Date is the last Business Day of the month next preceding
        the
        month of such Distribution Date.

       

      Distributions
        on this Certificate shall be made by wire transfer of immediately available
        funds to the account of the Holder hereof at a bank or other entity having
        appropriate facilities therefor, if such Certificateholder shall have so
        notified the Securities Administrator in writing at least five Business Days
        prior to the related Record Date and such Certificateholder shall satisfy
        the
        conditions to receive such form of payment set forth in the Agreement, or,
        if
        not, by check mailed by first class mail to the address of such
        Certificateholder 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 offices designated by the Securities
        Administrator for such purposes or such other location 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
        parties to the Agreement with the consent of the Holders of Certificates
        affected by such amendment evidencing the requisite Percentage Interest,
        as
        provided 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.

      
        
          
          

        

        
          EXHIBIT
            D-5

          
            

          

        

        
          
          

        

      

       

      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 Securities Administrator upon surrender of this Certificate for registration
        of transfer at the offices designated by the Securities Administrator for
        such
        purposes, accompanied by a written instrument of transfer in form satisfactory
        to the Securities Administrator 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 Fund 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 Securities Administrator may require payment of a sum sufficient
        to
        cover any tax or other governmental charge payable in connection
        therewith.

       

      The
        Trustee, the Depositor and the Securities Administrator and any agent of
        the
        Trustee, the Depositor or the Securities Administrator may treat the Person
        in
        whose name this Certificate is registered as the owner hereof for all purposes,
        and neither the Trustee, the Depositor, the Securities Administrator nor
        any
        such agent shall be affected by any notice to the contrary.

       

      The
        Master Servicer, upon the instruction of the Depositor, shall purchase the
        Mortgage Loans and therefore cause the termination of the Trust on any Optional
        Termination Date, which is any Distribution Date in which the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period is less than or equal to 10% of the aggregate Stated Principal Balance
        of
        the Mortgage Loans as of the Cut-off Date; provided,
        however,
        the
        Master Servicer in its own right may exercise the option to purchase the
        Mortgage Loans and thereby cause the termination of the Trust on any
        Distribution Date in which the aggregate Stated Principal Balance of the
        Mortgage Loans as of the last day of the related Due Period is less than
        or
        equal to 5% of the aggregate Stated Principal Balance of the Mortgage Loans
        as
        of the Cut-off Date, if the Depositor has not previously provided instructions
        to the Master Servicer to exercise such option on the Depositor’s behalf on such
        Distribution Date. 

       

      The
        obligations and responsibilities created by the Agreement will terminate
        as
        provided in Section 11.01 of the Agreement.

      
        
          
          

        

        
          EXHIBIT
            D-6

          
            

          

        

        
          
          

        

      

       

      Any
        term
        used herein that is defined in the Agreement shall have the meaning assigned
        in
        the Agreement, and nothing herein shall be deemed inconsistent with that
        meaning

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
          
            
            

          

          
            EXHIBIT
              D-7

            
              

            

          

          
            
            

          

        

      

      
         

        ASSIGNMENT

         

        FOR
          VALUE
          RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
          unto

        ____________________________________________________________________________________________________________________

        
          
            ____________________________________________________________________________________________________________________

            ____________________________________________________________________________________________________________________

          

        

        
          ____________________________________________________________________________________________________________________

        

         

        (Please
          print or typewrite name and address including postal zip code of
          assignee)

         

        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 Fund.

         

        I
          (We)
          further direct the Securities Administrator 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

                

        

        

         

        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.

         

      

      
        
          
            
            

          

          
            EXHIBIT
              D-8

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        E

       

      FORM
        OF
        INITIAL CERTIFICATION OF CUSTODIAN

       

      [date]

      

        HSI
          Asset
          Securitization Corporation

        452
          Fifth
          Avenue

        New
          York,
          New York 10018

        

        Wells
          Fargo Bank, N.A.

        1015
          10th
          Avenue SE

        Minneapolis,
          Minnesota 55414

        

        Deutsche
          Bank National Trust Company

        1761
          East
          St. Andrew Place

        Santa
          Ana, California 92705-4934

      

       

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation Trust, Series
                  2006-WMC1

              

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02 of the Pooling and Servicing Agreement (the
“Pooling
        and Servicing Agreement”)
        dated
        as of July 1, 2006 among HSI Asset Securitization Corporation, as depositor,
        WMC
        Mortgage Corp., as originator, Wells Fargo Bank, N.A., as servicer, master
        servicer, securities administrator and custodian, Clayton Fixed Income Services,
        Inc., as credit risk manager, and Deutsche Bank National Trust Company, as
        trustee, for each Mortgage Loan listed in the Mortgage Loan Schedule (other
        than
        any Mortgage Loan listed in the attached schedule), it has
        received:

       

      (i)           the
        original Mortgage Note, endorsed as provided in the following form: “Pay to the
        order of ________, without recourse”; and

       

      (ii)           a
        duly executed assignment of the Mortgage (which may be included in a blanket
        assignment or assignments).

       

      Based
        on
        its review and examination and only as to the foregoing documents, such
        documents appear regular on their face and related to such Mortgage
        Loan.

       

      The
        Custodian 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 Custodian makes no representations as to: (i) the
        validity, legality, sufficiency, enforceability or genuineness of any of
        the
        documents contained in each Mortgage File of any of the Mortgage Loans
        identified on the Mortgage Loan Schedule, or (ii) the collectability,
        insurability, effectiveness or suitability of any such Mortgage
        Loan.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the Pooling and Servicing Agreement.

      
        
          
          

        

        
          EXHIBIT
            E-1

          
            

          

        

        
          
          

        

      

       

      WELLS
        FARGO BANK, N.A., as Custodian

       

       

      By: 
        _____________________________________
Name: 
        _______________________________
Title: 
        ________________________________

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              E-2

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        F

       

      FORM
        OF
        DOCUMENT CERTIFICATION

      AND
        EXCEPTION REPORT OF CUSTODIAN

       

      ______,
        20___

       

      

      HSI
        Asset
        Securitization Corporation

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      

      Wells
        Fargo Bank, N.A.

      1015
        10th
        Avenue SE

      Minneapolis,
        Minnesota 55414

      

      Deutsche
        Bank National Trust Company

      1761
        East
        St. Andrew Place

      Santa
        Ana, California 92705-4934

      

      Wells
        Fargo Bank, N.A.

      1
        Home
        Campus

      Des
        Moines, Iowa 50328-0001

       

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation, Series
                  2006-WMC1

              

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.02 of the Pooling and Servicing Agreement (the
“Pooling
        and Servicing Agreement”)
        dated
        as of July 1, 2006 among HSI Asset Securitization Corporation, as depositor,
        WMC
        Mortgage Corp., as originator, Wells Fargo Bank, N.A., as servicer, master
        servicer, securities administrator and custodian, Clayton Fixed Income Services,
        Inc., as credit risk manager, and Deutsche Bank National Trust Company, as
        trustee, the undersigned, as Custodian, 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 the attached Document Exception Report) it has
        received:

       

      (i)           The
        original Mortgage Note, endorsed in the form provided in Section 2.01 of
        the Pooling and Servicing Agreement, with all intervening endorsements showing
        a
        complete chain of endorsement from the originator to the last
        endorsee.

       

      (ii)           The
        original recorded Mortgage.

       

      (iii)           A
        duly executed assignment of the Mortgage in the form provided in
        Section 2.01 of the Pooling and Servicing Agreement; or, if the Originator
        has certified or the Custodian otherwise knows that the related Mortgage
        has not
        been returned from the applicable recording office, a copy of the assignment
        of
        the Mortgage (excluding information to be provided by the recording
        office).

      
        
          
          

        

        
          EXHIBIT
            F-1

          
            

          

        

        
          
          

        

      

       

      (iv)           The
        original or duplicate original recorded assignment or assignments of the
        Mortgage showing a complete chain of assignment from the originator to the
        last
        endorsee.

       

      (v)           The
        original or duplicate original lender’s title policy and all riders thereto or,
        any one of an original title binder, an original preliminary title report
        or an
        original title commitment, or a copy thereof certified by the title
        company.

       

      Based
        on
        its review and examination and only as to the foregoing documents, (a) such
        documents appear regular on their face and related to such Mortgage Loan,
        and
        (b) the information set forth in items (1), (2), (3), (15), (18) and
        (22) of the Data Tape Information accurately reflects information set forth
        in
        the Custodial File.

       

      The
        Custodian has made no independent examination of any documents contained
        in each
        Mortgage File beyond the review of the Custodial File specifically required
        in
        the Pooling and Servicing Agreement. The Custodian makes no representation
        as
        to: (i) the validity, legality, sufficiency, enforceability or genuineness
        of any of the documents contained in each Mortgage File of any of the Mortgage
        Loans identified on the Mortgage Loan Schedule, or (ii) the collectability,
        insurability, effectiveness or suitability of any such Mortgage Loan.
        Notwithstanding anything herein to the contrary, the Custodian has made no
        determination and makes no representations as to whether (i) any
        endorsement is sufficient to transfer all right, title and interest of the
        party
        so endorsing, as noteholder or assignee thereof, in and to that Mortgage
        Note or
        (ii) any assignment is in recordable form or sufficient to effect the
        assignment of and transfer to the assignee thereof, under the Mortgage to
        which
        the assignment relates.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the Pooling and Servicing Agreement.

       

      WELLS
        FARGO BANK, N.A., as Custodian

       

       

      By: 
        _____________________________________
Name: 
        _______________________________
Title: 
        ________________________________

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              F-2

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        G

       

      FORM
        OF
        RESIDUAL TRANSFER AFFIDAVIT

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates, Series 2006-WMC1

       

       

      
        	
                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 a Class R Certificate (the “Certificate”)
        issued
        pursuant to the Pooling and Servicing Agreement (the “Agreement”),
        relating to the above-referenced Series, dated as of July 1, 2006 among HSI
        Asset Securitization Corporation, as depositor, WMC Mortgage Corp., as
        originator, Wells Fargo Bank, N.A., as servicer, master servicer, securities
        administrator and custodian, Clayton Fixed Income Services, Inc., as credit
        risk
        manager, and Deutsche Bank National Trust Company, as 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 for the benefit of the Depositor, the
        Securities Administrator and the Trustee.

       

      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 for its own account. 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 Non-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)
        for
        a Person that is a Non-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 a Non-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 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.)

      
        
          
          

        

        
          EXHIBIT
            G-1

          
            

          

        

        
          
          

        

      

       

      5.           The
        Transferee has reviewed the provisions of Section 5.02(c) 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(c) 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 a Non-Permitted Transferee. In connection with any
        such
        Transfer by the Transferee, the Transferee agrees to deliver to the Securities
        Administrator a certificate substantially in the form set forth as
        Exhibit H to the Agreement (a “Transferor
        Certificate”)
        to the
        effect that, among other things, such Transferee has no actual knowledge
        that
        the Person to which the Transfer is to be made is a Non-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. The
        Transferee has historically paid its debts as they have come due and intends
        to
        pay its debts as they come due in the future. The Transferee intends to pay
        all
        taxes due with respect to the Certificate as they become due.

       

      8.           The
        Transferee’s taxpayer identification number is __________.

       

      9.           The
        Transferee is not a Disqualified Non-U.S. Person as defined in the
        Agreement.

       

      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 will not cause income from the Residual Certificate to be
        attributable to a foreign permanent establishment or fixed base, within the
        meaning of an applicable income tax treaty, of the Transferee or any other
        U.S.
        Person.

      
        
          
          

        

        
          EXHIBIT
            G-2

          
            

          

        

        
          
          

        

      

       

      12.           Check
        the applicable paragraph:

       

      o           The
        present value of the anticipated tax liabilities associated with holding
        the
        Certificate, as applicable, does not exceed the sum of:

       

      (i)           the
        present value of any consideration given to the Transferee to acquire such
        Certificate;

       

      (ii)           the
        present value of the expected future distributions on such Certificate;
        and

       

      (iii)           the
        present value of the anticipated tax savings associated with holding such
        Certificate as the related REMIC generates losses.

       

      For
        purposes of this calculation, (i) the Transferee is assumed to pay tax at
        the highest rate currently specified in Section 11(b) of the Code (but the
        tax rate in Section 55(b)(1)(B) of the Code may be used in lieu of the highest
        rate specified in Section 11(b) of the Code if the Transferee has been
        subject to the alternative minimum tax under Section 55 of the Code in the
        preceding two years and will compute its taxable income in the current taxable
        year using the alternative minimum tax rate) and (ii) present values are
        computed using a discount rate equal to the short-term Federal rate prescribed
        by Section 1274(d) of the Code for the month of the transfer and the
        compounding period used by the Transferee.

       

      o           The
        transfer of the Certificate complies with U.S. Treasury Regulations Sections
        1.860E-1(c)(5) and (6) and, accordingly,

       

      (i)           the
        Transferee is an “eligible corporation,” as defined in U.S. Treasury Regulations
        Section 1.860E-1(c)(6)(i), as to which income from the Certificate will only
        be
        taxed in the United States;

       

      (ii)           at
        the time of the transfer, and at the close of the Transferee’s two fiscal years
        preceding the year of the transfer, the Transferee had gross assets for
        financial reporting purposes (excluding any obligation of a person related
        to
        the Transferee within the meaning of U.S. Treasury Regulations Section
        1.860E-1(c)(6)(ii)) in excess of $100 million and net assets in excess of
        $10 million;

       

      (iii)           the
        Transferee will transfer the Certificate only to another “eligible corporation,”
as defined in U.S. Treasury Regulations Section 1.860E-1(c)(6)(i), in a
        transaction that satisfies the requirements of Sections 1.860E-1(c)(4)(i),
        (ii)
        and (iii) and Section 1.860E-1(c)(5) of the U.S. Treasury Regulations;
        and

       

      (iv)           the
        Transferee determined the consideration paid to it to acquire the Certificate
        based on reasonable market assumptions (including, but not limited to, borrowing
        and investment rates, prepayment and loss assumptions, expense and reinvestment
        assumptions, tax rates and other factors specific to the Transferee) that
        it has
        determined in good faith.

       

      o           None
        of the above.

      
        
          
          

        

        
          EXHIBIT
            G-3

          
            

          

        

        
          
          

        

      

       

      13.           The
        Transferee is not an employee benefit plan that is subject to Title I of
        ERISA or a plan that is subject to Section 4975 of the Code or a plan
        subject to any Federal, state or local law that is substantially similar
        to
        Title I of ERISA or Section 4975 of the Code, and the Transferee is
        not acting on behalf of or investing plan assets of such a plan.

       

      *           *           *

       

      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 _______, 20__.

       

       

       

      __________________________________________

      Print
        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 _______, 20__.

       

       

      
         

        __________________________________________

        NOTARY
          PUBLIC

      

       

      My
        Commission expires the __ day

      of
        _________, 20__

      

      
        
          
            
            

          

          
            EXHIBIT
              G-4

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        H

       

      FORM
        OF
        TRANSFEROR CERTIFICATE

       

      __________,
        20__

       

      HSI
        Asset
        Securitization Corporation

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

       

      Wells
        Fargo Bank, N.A.,
  as
        Securities Administrator

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

       

      Attention:
        Corporate Trust Services - HASCO 2006-WMC1

       

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation Trust 2006-WMC1 

                Mortgage
                  Pass-Through Certificates, Series 2006-WMC1, Class
                  [__]

              

      

       

      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 and (c) to the extent we are disposing of a
        Residual Certificate, (i) we have no knowledge the Transferee is a
        Non-Permitted Transferee, (ii) after conducting a reasonable investigation
        of the financial condition of the Transferee, we have no knowledge and no
        reason
        to believe that the Transferee will not pay all taxes with respect to the
        Residual Certificates as they become due and (iii) we have no reason to
        believe that the statements made in paragraphs 7, 10 and 11 of the
        Transferee’s Residual Transfer Affidavit are false.

       

      In
        connection with any disposition of the above Certificates in accordance with
        Rule 904 of Regulation S we hereby certify that:

       

      
        	 	
                a.

              	
                the
                  offer of the Certificates was not made to a person in the United
                  States;

              

      

       

      
        	 	
                b.

              	
                at
                  the time the buy order was originated, the transferee was outside
                  the
                  United States or the Transferor and any person acting on its behalf
                  responsibly believed
                  the transferee was outside the United
                  States;

              

      

       

      
        
          
          

        

        
          EXHIBIT
            H-1

          
            

          

        

        
          
          

        

      

       

      
        	 	
                c.

              	
                no
                  directed selling efforts have been made in contravention of the
                  requirements of Rule 903 or Rule 904 of Regulation S, as
                  applicable;

              

      

       

      
        	 	
                d.

              	
                the
                  transaction is not part of a plan or scheme to
                  evade the registration requirements of the Securities Act, as amended;
                  and

              

      

       

      
        	 	
                e.

              	
                the
                  transferee is not a U.S. person (as defined in Regulation
                  S).

              

      

       

      

       

      Very
        truly yours,

       

       

      __________________________________________

      Print
        Name of Transferor

       

       

      By:
        _______________________________________
Authorized
        Officer

       

       

       

       

      
 

      

      
        
          
            
            

          

          
            EXHIBIT
              H-2

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
        I-A

       

      FORM
        OF
        RULE 144A INVESTMENT LETTER

       

      ____________,
        20__

       

      HSI
        Asset
        Securitization Corporation

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

       

      Wells
        Fargo Bank, N.A.,

       
as
        Securities Administrator

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust Services - HASCO 2006-WMC1

      

         

        
          	 	
                  Re:

                	
                  HSI
                    Asset Securitization Corporation Trust 2006-WMC1 

                  Mortgage
                    Pass-Through Certificates, Series 2006-WMC1, Class
                    [__]

                

        

      

       

      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 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) either we are purchasing
        a Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class M-1, Class
        M-2,
        Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 or Class
        M-9
        Certificate or we are not an employee benefit plan that is subject to
        Title I of the Employee Retirement Income Security Act of 1974, as amended
        (“ERISA”),
        or a
        plan or arrangement that is subject to Section 4975 of the Internal Revenue
        Code of 1986, as amended, or a plan subject to materially similar provisions
        of
        applicable federal, state or local law, nor are we acting on behalf of any
        such
        plan or arrangement nor using the assets of any such plan or arrangement
        to
        effect such acquisition or, with respect to any Class M-10 Certificate,
        such Certificate has been the subject of an ERISA-Qualifying Underwriting
        and
        the purchaser is an insurance company that is purchasing this certificate
        with
        funds contained in an “insurance company general account” (as such term is
        defined in Section V(e) of Prohibited Transaction Class Exemption
        (“PTCE”)
        95-60)
        and that the purchase and holding of such Certificates are covered under
        Sections I and III of PTCE 95-60, (e)  in the case of an
        ERISA-Restricted Derivative Certificate prior to the termination of the Cap
        Agreement and the Swap Agreement, either (i) we are not an employee benefit
        plan
        that is subject to Title I of ERISA, or a plan or arrangement that is
        subject to Section 4975 of the Internal Revenue Code of 1986, as amended,
        nor a person acting on behalf of any such plan, nor are we using the assets
        of
        any such plan to effect such transfer or (ii) our acquisition and holding
        of the
        ERISA-Restricted Derivative Certificate is eligible for exemptive relief
        under
        the statutory exemption for nonfiduciary service providers under Section
        408(b)(17) of ERISA and Section 4975(d)(20) of the Code, PTCE 84-14, PTCE
        90-1,
        PTCE 91-38, PTCE 95-60 or PTCE 96-23 or some other applicable exemption,
        (f) 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, and (g) 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.

      
        
          
            
            

          

          
            EXHIBIT
              I-A-1

            
              

            

          

          
            
            

          

        

      

       

      ANNEX
        1 TO EXHIBIT I

       

      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.

         

      

      
        
          
          

        

        
          EXHIBIT
            I-A-2

          
            

          

        

        
          
          

        

      

       

      
        	 	
                ____

              	
                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.

      
        
          
          

        

        
          EXHIBIT
            I-A-3

          
            

          

        

        
          
          

        

      

       

      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.

       

       

      ________________________________________

      Print
        Name of Transferee

       

       

      By: 
        _____________________________________
Name:
Title:

       

       

      Date: 
        ____________________________________

      

      

      
        
          
            
            

          

          
            EXHIBIT
              I-A-4

            
              

            

          

          
            
            

          

        

      

      

       

      ANNEX
        2 TO EXHIBIT I

       

      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 Buyer’s 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.

      
        
          
          

        

        
          EXHIBIT
            I-A-5

          
            

          

        

        
          
          

        

      

       

      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 Transferee

       

       

      By: 
        _________________________________________
Name:
Title:

       

       

      IF
        AN
        ADVISER:

       

       

      _____________________________________________

      Print
        Name of Buyer

       

       

      Date:
        _________________________________________

       

      
        
          
            
            

          

          
            EXHIBIT
              I-A-6

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        I-B

       

      FORM
        OF
        REGULATION S INVESTMENT LETTER

       

      ____________,
        20__

       

      HSI
        Asset
        Securitization Corporation

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

       

      Wells
        Fargo Bank, N.A.,

       
as
        Securities Administrator

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Corporate Trust Services - HASCO 2006-WMC1

       

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation Trust 2006-WMC1 

                Mortgage
                  Pass-Through Certificates, Series 2006-WMC1, Class
                  [__]

              

      

       

      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 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) either we are purchasing
        a Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class M-1, Class
        M-2,
        Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 or Class
        M-9
        Certificate or we are not an employee benefit plan that is subject to
        Title I of the Employee Retirement Income Security Act of 1974, as amended
        (“ERISA”),
        or a
        plan or arrangement that is subject to Section 4975 of the Internal Revenue
        Code of 1986, as amended, or a plan subject to materially similar provisions
        of
        applicable federal, state or local law, nor are we acting on behalf of any
        such
        plan or arrangement nor using the assets of any such plan or arrangement
        to
        effect such acquisition or, with respect to any Class M-10 Certificate,
        such Certificate has been the subject of an ERISA-Qualifying Underwriting
        and
        the purchaser is an insurance company that is purchasing this certificate
        with
        funds contained in an “insurance company general account” (as such term is
        defined in Section V(e) of Prohibited Transaction Class Exemption
        (“PTCE”)
        95-60)
        and that the purchase and holding of such Certificates are covered under
        Sections I and III of PTCE 95-60, (e)  in the case of an
        ERISA-Restricted Derivative Certificate prior to the termination of the Cap
        Agreement and the Swap Agreement, either (i) we are not an employee benefit
        plan
        that is subject to Title I of ERISA, or a plan or arrangement that is
        subject to Section 4975 of the Internal Revenue Code of 1986, as amended,
        nor a person acting on behalf of any such plan, nor are we using the assets
        of
        any such plan to effect such transfer or (ii) our acquisition and holding
        of the
        ERISA-Restricted Derivative Certificate is eligible for exemptive relief
        under
        the statutory exemption for nonfiduciary service providers under Section
        408(b)(17) of ERISA and Section 4975(d)(20) of the Code, PTCE 84-14, PTCE
        90-1,
        PTCE 91-38, PTCE 95-60 or PTCE 96-23 or some other applicable exemption,
        (f) 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, and (g) we are not
        a U.S. person within the meaning of Regualtion S of the Securities Act and
        was
        at the time the buy order was originated for the Class [ ] Certificates outside
        the United States. We are aware that the sale to us is being made in reliance
        on
        Regulation S of the Securities Act and we understand (x) that until the
        expiration of the 40-day distribution
        compliance period (within the meaning of Regulation S), no offer, sale, pledge
        or other transfer of such Certificates or any interest therein shall be made
        in
        the United States or to or for the account or benefit of a U.S. person (each
        as
        defined in Regulation S), (y) if in the future we decide to offer, resell,
        pledge or otherwise transfer such Certificates, such Certificates may be
        offered, resold, pledged or transferred only to (A) a person which the seller
        reasonably believes is a “qualified institutional buyer” (a “QIB”) as defined in
        Rule 144A under the Securities Act, that is purchasing such Certificate for
        its
        own account or for the account of a QIB in reliance on Rule 144A or (B) in
        an
        offshore transaction (as defined in Regulation S) in compliance with the
        provisions of Regulation S, in each case in compliance with the requirements
        of
        the Agreement; and we will notify such transferee of the transfer restrictions
        specified in the Agreement. 

      
        
          
          

        

        
          EXHIBIT
            I-B-1

          
            

          

        

        
          
          

        

      

       

       

      

       

       

       

      _____________________________________________

      Print
        Name of Transferee

       

       

      By: 
        _________________________________________
Name:
Title:

       

      
 

      IF
        AN
        ADVISER:

       

       

      _____________________________________________

      Print
        Name of Buyer

       

       

      Date

      

      
        
          
            
            

          

          
            EXHIBIT
              I-B-2

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
        J

       

      FORM
        OF
        REQUEST FOR RELEASE

       

      (for
        Custodian)

      

      
        	
                To:

              	
                Wells
                  Fargo Bank, N.A.

              

      

      1015
        10th
        Avenue SE

      Minneapolis,
        Minnesota 55414

       

      
        	 	
                Re:

              	
                Pooling
                  and Servicing Agreement (the “Pooling and Servicing Agreement”) dated as
                  of July 1, 2006 among HSI Asset Securitization Corporation, as
                  depositor,
                  WMC Mortgage Corp., as originator, Wells Fargo Bank, N.A., as servicer,
                  master servicer, securities administrator and custodian, Clayton
                  Fixed
                  Income Services, Inc., as credit risk manager, and Deutsche Bank
                  National
                  Trust Company, as trustee.

              

      

       

      In
        connection with the administration of the Mortgage Loans held by you as the
        Custodian on behalf of the Certificateholders, we request the release, and
        acknowledge receipt, of the (Custodial File/[specify documents]) for the
        Mortgage Loan described below, for the reason indicated.

       

      Mortgagor’s
        Name, Address & Zip Code:

       

      Mortgage
        Loan Number:

       

      Send
        Custodial File to:

       

      Delivery
        Method (check one)

       

      
        	
                ____1.

              	
                Regular
                  mail

              

      

       

      
        	
                ____2.

              	
                Overnight
                  courier (Tracking information:
                                     )

              

      

       

      If
        neither box 1 nor 2 is checked, regular mail shall be assumed.

       

      Reason
        for Requesting Documents
        (check
        one)

       

      
        	
                ____1.

              	
                Mortgage
                  Loan Paid in Full.
                  (The Servicer hereby certifies that all amounts received in connection
                  therewith have been credited to the Collection Account as provided
                  in the
                  Pooling and Servicing Agreement.)

              

      

       

      
        	
                ____2.

              	
                Mortgage
                  Loan Repurchase Pursuant to Subsection 2.03 of the Pooling and
                  Servicing
                  Agreement.
                  (The Servicer hereby certifies that the repurchase price has been
                  credited
                  to the Collection Account as provided in the Pooling and Servicing
                  Agreement.)

              

      

       

      
        	
                ____3.

              	
                Mortgage
                  Loan Liquidated by _________________. (The Servicer hereby certifies
                  that
                  all proceeds of foreclosure, insurance, condemnation or other liquidation
                  have been finally received and credited to the Collection Account
                  pursuant
                  to the Pooling and Servicing
                  Agreement.)

              

      

       

      
        
          
          

        

        
          EXHIBIT
            J-1

          
            

          

        

        
          
          

        

      

       

      
        	
                ____4.

              	
                Mortgage
                  Loan in Foreclosure.

              

      

       

      
        	
                ____5.

              	
                Other
                  (explain).
                  ____________________________________________________

              

      

       

      If
        box 1,
        2 or 3 above is checked, and if all or part of the Custodial File was previously
        released to us, please release to us our previous request and receipt on
        file
        with you, as well as any additional documents in your possession relating
        to the
        specified Mortgage Loan.

       

      If
        box 4
        or 5 above is checked, upon our return of all of the above documents to you
        as
        the Trustee, please acknowledge your receipt by signing in the space indicated
        below, and returning this form if requested by us.

       

      [WELLS
        FARGO BANK, N.A.]

       

       

      By: 
        _______________________________________
Name:
Title:
Date:

       

      ACKNOWLEDGED
        AND AGREED:

       

      [WELLS
        FARGO BANK, N.A.]

       

       

      By: 
        __________________________________________
Name:
Title:
Date:

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              J-2

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        K

       

      CONTENTS
        OF EACH MORTGAGE FILE

       

      With
        respect to each Mortgage Loan, the Mortgage File shall include each of the
        following items, which shall be available for inspection by the Depositor
        and
        which shall be retained by the Servicer or delivered to and retained by the
        Custodian:

       

      (a)           The
        documents or instruments set forth as items (i) to (ix) in Section 2.01(b)
        of the Pooling and Servicing Agreement.

       

      (b)           Residential
        loan application.

       

      (c)           Mortgage
        Loan closing statement.

       

      (d)           Verification
        of employment and income.

       

      (e)           Verification
        of acceptable evidence of source and amount of downpayment.

       

      (f)           Credit
        report on Mortgagor.

       

      (g)           Residential
        appraisal report.

       

      (h)           Photograph
        of the Mortgaged Property.

       

      (i)           Survey
        of the Mortgaged Property.

       

      (j)           Copy
        of each instrument necessary to complete identification of any exception
        set
        forth in the exception schedule in the title policy, i.e., map or plat,
        restrictions, easements, sewer agreements, home association declarations,
        etc.

       

      (k)           All
        required disclosure statements and statement of Mortgagor confirming receipt
        thereof.

       

      (l)           If
        available, termite report, structural engineer’s report, water potability and
        septic certification.

       

      (m)           Sales
        contract, if applicable.

       

      (n)           Hazard
        insurance policy.

       

      (o)           Tax
        receipts, insurance premium receipts, ledger sheets, payment history from
        date
        of origination, insurance claim files, correspondence, current and historical
        computerized data files, and all other processing, underwriting and closing
        papers and records which are customarily contained in a mortgage loan file
        and
        which are required to document the Mortgage Loan or to service the Mortgage
        Loan.

      
        
          
          

        

        
          EXHIBIT
            K-1

          
            

          

        

        
          
          

        

      

       

      (p)           Amortization
        schedule, if available.

       

      (q)           Payment
        history for Mortgage Loans that have been closed for more than 90
        days.

      

       

       

       

       

      
 

      
        
          
            
            

          

          
            EXHIBIT
              K-2

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
        L

       

      FORM
        OF
        SARBANES-OXLEY CERTIFICATION TO BE

      PROVIDED
        BY MASTER SERVICER (OR OTHER

      CERTIFICATION
        PARTY) WITH FORM 10-K

       

      HSI
        Asset
        Securitization Corporation Trust 2006-WMC1

      Mortgage
        Pass-Through Certificates

      Series
        2006-WMC1

       

      This
        Certification is being made pursuant to Section 3.24 and Section 8.12 of
        the Pooling and Servicing Agreement dated as of July 1, 2006 (the “Pooling
        and Servicing Agreement”)
        relating to the above-referenced Series, among HSI Asset Securitization
        Corporation, as depositor, WMC Mortgage Corp., as originator, Wells Fargo
        Bank,
        N.A., as servicer, master servicer, securities administrator and custodian,
        Clayton Fixed Income Services, Inc., as credit risk manager, and Deutsche
        Bank
        National Trust Company, as trustee. Capitalized terms used but not defined
        herein shall have the meanings assigned in the Pooling and Servicing
        Agreement.

       

      1.           I
        have reviewed this annual report on Form 10-K, and all reports on
        Form 10-D required to be filed in respect of the period covered by this
        report on Form 10-K of HSI Asset Securitization Corporation Trust 2006-1
        (the
“Exchange Act periodic reports”);

       

      2.           Based
        on my knowledge, the Exchange Act periodic reports, taken as a whole, do
        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 with respect to the period covered
        by
        this report;

       

      3.           Based
        on my knowledge, all of the distribution, servicing and other information
        required to be provided under Form 10-D for the period covered by this report
        is
        included in the Exchange Act periodic reports;

       

      4.           I
        am responsible for reviewing the activities performed by the servicer and
        based
        on my knowledge and the compliance review conducted in preparing the Servicer
        compliance statement required in this report under Item 1123 of Regulation
        AB,
        and except as disclosed in the Exchange Act periodic reports, the Servicer
        has
        fulfilled its obligations under the servicing agreement; and

       

      5.           All
        of the reports on assessment of compliance with servicing criteria for
        asset-backed securities and their related attestation reports on assessment
        of
        compliance with servicing criteria for asset-backed securities required to
        be
        included in this report in accordance with Item 1122 of Regulation AB and
        Exchange Act Rules 13a-18 and 15d-18 have been included as an exhibit to
        this
        report, except as otherwise disclosed in this report. Any material instances
        of
        noncompliance described in such reports have been disclosed in this report
        on
        Form 10-K.

      
        
          
          

        

        
          EXHIBIT
            L-1

          
            

          

        

        
          
          

        

      

       

      In
        giving
        the certifications above, I have reasonably relied on information provided
        to me
        by the following party: Wells Fargo Bank, N.A.

      

       

      WELLS
        FARGO BANK, N.A.
as
        Master
        Servicer

       

       

      By: 
        ______________________________________
Name:
Title:
Date:

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              L-2

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
        M

       

      FORM
        OF
        SERVICER (OR SERVICING FUNCTION

      PARTICIPANT)
        BACK-UP CERTIFICATION

      

       

      Wells
        Fargo Bank, N.A.,

      as
        Master
        Servicer

      9062
        Old
        Annapolis Road

      Columbia,
        Maryland 21045

       

      
        	 	
                Re:

              	
                HSI
                  Asset Securitization Corporation Trust
                  2006-WMC1

              

      

       

      [____]
        as
        [____] hereby certifies to the Depositor, the Master Servicer, the Trustee
        and
        the Securities Administrator, and each of their officers, directors and
        affiliates that:

       

      (1)           I
        have reviewed the servicer compliance statement of the [____] provided in
        accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the
        report on assessment of the Company’s compliance with the servicing criteria set
        forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in
        accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act
        of
        1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation
        report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
        Act and Section 1122(b) of Regulation AB (the “Attestation
        Report”), and all servicing reports, officer’s certificates and other
        information relating to the servicing of the Mortgage Loans by [____] during
        200[ ] that were delivered by [____] to any of the Depositor, the Master
        Servicer, the Securities Administrator, and the Trustee pursuant to the
        Agreement (collectively, the “Company Servicing Information”);

       

      (2)           Based
        on my knowledge, the Company 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 the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Company Servicing Information;

       

      (3)           Based
        on my knowledge, all of the Company Servicing Information required to be
        provided by the Company under the Agreement has been provided to the Depositor,
        the Master Servicer, the Securities Administrator and the Trustee;

       

      (4)           I
        am responsible for reviewing the activities performed by [____] as [____]
        under
        the Agreement, and based on my knowledge and the compliance review conducted
        in
        preparing the Compliance Statement and except as disclosed in the Compliance
        Statement, the Servicing Assessment or the Attestation Report, the Servicer
        has
        fulfilled its obligations under the Agreement in all material respects;
        and

      
        
          
          

        

        
          EXHIBIT
            M-1

          
            

          

        

        
          
          

        

      

       

      (5)           The
        Compliance Statement required to be delivered by [____] pursuant to this
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by [____] and [by any Subservicer or Subcontractor] pursuant to
        the
        Agreement, have been provided to the Depositor, the Master Servicer, the
        Securities Administrator and the Trustee. Any material instances of
        noncompliance described in such reports have been disclosed to the Depositor,
        the Master Servicer, the Securities Administrator and the Trustee. Any material
        instance of noncompliance with the Servicing Criteria has been disclosed
        in such
        reports.

       

      Capitalized
        terms used but not defined herein have the meanings ascribed to them in the
        Pooling Servicing Agreement, dated as of July 1, 2006 (the “Pooling
        and Servicing Agreement”),
        among
        HSI Asset Securitization Corporation, as depositor, WMC Mortgage Corp., as
        originator, Wells Fargo Bank, N.A., as servicer, master servicer, securities
        administrator and custodian, Clayton Fixed Income Services, Inc., as credit
        risk
        manager, and Deutsche Bank National Trust Company, as trustee.

       

      

       

      [____]
as
        [____]

       

       

      By: 
        
Name:
Title:
Date:

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              M-2

            
              

            

          

          
            
            

          

        

      

       

      EXHIBIT
        N-1

       

      STANDARD
        FILE LAYOUT - MASTER SERVICING

       

      (MONTHLY
        REMITTANCE ADVICE)

       

      

      
        	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  

                Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	
                 

              	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	
                 

              	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the Servicer.
                  

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the Servicer.
                  

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer. 

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment amount.
                  

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

       

      
        
          
          

        

        
          EXHIBIT
            N-1-1

          
            

          

        

        
          
          

        

      

       

      
        	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  

                Size

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                 

              	
                 

              	
                 

              	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO 

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	
                 

              	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

       

      
        
          
            
            

          

          
            EXHIBIT
              N-1-2

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        N-2

       

      EXHIBIT
        STANDARD FILE LAYOUT - DELINQUENCY REPORTING

       

      
        	
                Column/Header
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR

              	 	
                 

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the originator.

              	 	
                 

              
	
                CLIENT_NBR

              	
                Servicer
                  Client Number

              	 	 
	
                SERV_INVESTOR_NBR

              	
                Contains
                  a unique number as assigned by an external servicer to identify
                  a group of
                  loans in their system.

              	 	
                 

              
	
                BORROWER_FIRST_NAME

              	
                First
                  Name of the Borrower.

              	 	 
	
                BORROWER_LAST_NAME

              	
                Last
                  name of the borrower.

              	 	 
	
                PROP_ADDRESS

              	
                Street
                  Name and Number of Property

              	 	
                 

              
	
                PROP_STATE

              	
                The
                  state where the property located.

              	 	
                 

              
	
                PROP_ZIP

              	
                Zip
                  code where the property is located.

              	 	
                 

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date that the borrower's next payment is due to the servicer at
                  the end of
                  processing cycle, as reported by Servicer.

              	 	
                MM/DD/YYYY

              
	
                LOAN_TYPE

              	
                Loan
                  Type (i.e. FHA, VA, Conv)

              	 	
                 

              
	
                BANKRUPTCY_FILED_DATE

              	
                The
                  date a particular bankruptcy claim was filed.

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_CHAPTER_CODE

              	
                The
                  chapter under which the bankruptcy was filed.

              	 	
                 

              
	
                BANKRUPTCY_CASE_NBR

              	
                The
                  case number assigned by the court to the bankruptcy
                  filing.

              	 	
                 

              
	
                POST_PETITION_DUE_DATE

              	
                The
                  payment due date once the bankruptcy has been approved by the
                  courts

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_DCHRG_DISM_DATE

              	
                The
                  Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                  Discharged
                  and/or a Motion For Relief Was Granted. 

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_APPR_DATE

              	
                The
                  Date The Loss Mitigation Was Approved By The Servicer

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_TYPE

              	
                The
                  Type Of Loss Mitigation Approved For A Loan Such As;

              	 	 
	
                LOSS_MIT_EST_COMP_DATE

              	
                The
                  Date The Loss Mitigation /Plan Is Scheduled To End/Close

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_ACT_COMP_DATE

              	
                The
                  Date The Loss Mitigation Is Actually Completed

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_APPROVED_DATE

              	
                The
                  date DA Admin sends a letter to the servicer with instructions
                  to begin
                  foreclosure proceedings.

              	 	
                MM/DD/YYYY

              
	
                ATTORNEY_REFERRAL_DATE

              	
                Date
                  File Was Referred To Attorney to Pursue Foreclosure

              	 	
                MM/DD/YYYY

              
	
                FIRST_LEGAL_DATE

              	
                Notice
                  of 1st legal filed by an Attorney in a Foreclosure Action

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_EXPECTED_DATE

              	
                The
                  date by which a foreclosure sale is expected to occur.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_DATE

              	
                The
                  actual date of the foreclosure sale.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_AMT

              	
                The
                  amount a property sold for at the foreclosure sale.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                EVICTION_START_DATE

              	
                The
                  date the servicer initiates eviction of the borrower.

              	 	
                MM/DD/YYYY

              
	
                EVICTION_COMPLETED_DATE

              	
                The
                  date the court revokes legal possession of the property from the
                  borrower.

              	 	
                MM/DD/YYYY

              
	
                LIST_PRICE

              	
                The
                  price at which an REO property is marketed.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                LIST_DATE

              	
                The
                  date an REO property is listed at a particular price.

              	 	
                MM/DD/YYYY

              
	
                OFFER_AMT

              	
                The
                  dollar value of an offer for an REO property.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                OFFER_DATE_TIME

              	
                The
                  date an offer is received by DA Admin or by the Servicer.

              	 	
                MM/DD/YYYY

              
	
                REO_CLOSING_DATE

              	
                The
                  date the REO sale of the property is scheduled to close.

              	 	
                MM/DD/YYYY

              
	
                REO_ACTUAL_CLOSING_DATE

              	
                Actual
                  Date Of REO Sale

              	 	
                MM/DD/YYYY

              

      

       

      
        
          
          

        

        
          EXHIBIT
            N-2-1

          
            

          

        

        
          
          

        

      

       

      
        	
                Column/Header
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              
	
                OCCUPANT_CODE

              	
                Classification
                  of how the property is occupied.

              	 	
                 

              
	
                PROP_CONDITION_CODE

              	
                A
                  code that indicates the condition of the property.

              	 	
                 

              
	
                PROP_INSPECTION_DATE

              	
                The
                  date a property inspection is performed.

              	 	
                MM/DD/YYYY

              
	
                APPRAISAL_DATE

              	
                The
                  date the appraisal was done.

              	 	
                MM/DD/YYYY

              
	
                CURR_PROP_VAL

              	
                 The
                  current "as is" value of the property based on brokers price opinion
                  or
                  appraisal.

              	
                2

              	
                 

              
	
                REPAIRED_PROP_VAL

              	
                The
                  amount the property would be worth if repairs are completed pursuant
                  to a
                  broker's price opinion or appraisal.

              	
                2

              	
                 

              
	
                If
                  applicable:

              	
                 

              	 	
                 

              
	
                DELINQ_STATUS_CODE

              	
                FNMA
                  Code Describing Status of Loan

              	 	 
	
                DELINQ_REASON_CODE

              	
                The
                  circumstances which caused a borrower to stop paying on a loan.
                  Code
                  indicates the reason why the loan is in default for this
                  cycle.

              	 	 
	
                MI_CLAIM_FILED_DATE

              	
                Date
                  Mortgage Insurance Claim Was Filed With Mortgage Insurance
                  Company.

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT

              	
                Amount
                  of Mortgage Insurance Claim Filed

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                MI_CLAIM_PAID_DATE

              	
                Date
                  Mortgage Insurance Company Disbursed Claim Payment

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT_PAID

              	
                Amount
                  Mortgage Insurance Company Paid On Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_FILED_DATE

              	
                Date
                  Claim Was Filed With Pool Insurance Company

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT

              	
                Amount
                  of Claim Filed With Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_PAID_DATE

              	
                Date
                  Claim Was Settled and The Check Was Issued By The Pool
                  Insurer

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT_PAID

              	
                Amount
                  Paid On Claim By Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_FILED_DATE

              	
                 Date
                  FHA Part A Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_AMT

              	
                 Amount
                  of FHA Part A Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_PAID_DATE

              	
                 Date
                  HUD Disbursed Part A Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part A Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_FILED_DATE

              	
                  Date
                  FHA Part B Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_AMT

              	
                  Amount
                  of FHA Part B Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_PAID_DATE

              	
                   Date
                  HUD Disbursed Part B Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part B Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                VA_CLAIM_FILED_DATE

              	
                 Date
                  VA Claim Was Filed With the Veterans Admin

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_DATE

              	
                 Date
                  Veterans Admin. Disbursed VA Claim Payment

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_AMT

              	
                 Amount
                  Veterans Admin. Paid on VA Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              

      

       

      The
        Loss
        Mit Type
        field
        should show the approved Loss Mitigation Code as follows: 

      
        	 	
                ·

              	
                ASUM-

              	
                Approved
                  Assumption

              
	 	
                ·

              	
                BAP-

              	
                Borrower
                  Assistance Program

              
	 	
                ·

              	
                CO-

              	
                Charge
                  Off

              
	 	
                ·

              	
                DIL-

              	
                Deed-in-Lieu

              

      

       

      
        
          
          

        

        
          EXHIBIT
            N-2-2

          
            

          

        

        
          
          

        

      

       

      
        	 	
                ·

              	
                FFA-

              	
                Formal
                  Forbearance Agreement

              
	 	
                ·

              	
                MOD-

              	
                Loan
                  Modification

              
	 	
                ·

              	
                PRE-

              	
                Pre-Sale

              
	 	
                ·

              	
                SS-

              	
                Short
                  Sale

              
	 	
                ·

              	
                MISC-

              	
                Anything
                  else approved by the PMI or Pool
                  Insurer

              

      

       

      NOTE:
        Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

      The
        Occupant
        Code
        field should show the current status of the property code as
        follows:

       

      
        	 	
                ·

              	
                Mortgagor

              

      

       

      
        	 	
                ·

              	
                Tenant

              

      

       

      
        	 	
                ·

              	
                Unknown
                  

              

      

       

      
        	 	
                ·

              	
                Vacant

              

      

       

      The
        Property
        Condition
        field should show the last reported condition of the property as follows:
        

       

      
        	 	
                ·

              	
                Damaged

              

      

       

      
        	 	
                ·

              	
                Excellent

              

      

       

      
        	 	
                ·

              	
                Fair

              

      

       

      
        	 	
                ·

              	
                Gone

              

      

       

      
        	 	
                ·

              	
                Good

              

      

       

      
        	 	
                ·

              	
                Poor

              

      

       

      
        	 	
                ·

              	
                Special
                  Hazard

              

      

       

      
        	 	
                ·

              	
                Unknown

              

      

       

      The
        FNMA
        Delinquent Reason Code
        field should show the Reason for Delinquency as follows: 

      

        
          	
                  Delinquency
                    Code

                	
                  Delinquency
                    Description

                
	
                  001

                	
                  FNMA-Death
                    of principal mortgagor

                
	
                  002

                	
                  FNMA-Illness
                    of principal mortgagor

                
	
                  003

                	
                  FNMA-Illness
                    of mortgagor’s family member

                
	
                  004

                	
                  FNMA-Death
                    of mortgagor’s family member

                
	
                  005

                	
                  FNMA-Marital
                    difficulties

                
	
                  006

                	
                  FNMA-Curtailment
                    of income

                
	
                  007

                	
                  FNMA-Excessive
                    Obligation

                
	
                  008

                	
                  FNMA-Abandonment
                    of property

                
	
                  009

                	
                  FNMA-Distant
                    employee transfer

                
	
                  011

                	
                  FNMA-Property
                    problem

                
	
                  012

                	
                  FNMA-Inability
                    to sell property

                
	
                  013

                	
                  FNMA-Inability
                    to rent property

                
	
                  014

                	
                  FNMA-Military
                    Service

                
	
                  015

                	
                  FNMA-Other

                
	
                  016

                	
                  FNMA-Unemployment

                
	
                  017

                	
                  FNMA-Business
                    failure

                
	
                  019

                	
                  FNMA-Casualty
                    loss

                
	
                  022

                	
                  FNMA-Energy
                    environment costs

                
	
                  023

                	
                  FNMA-Servicing
                    problems

                
	
                  026

                	
                  FNMA-Payment
                    adjustment

                
	
                  027

                	
                  FNMA-Payment
                    dispute

                
	
                  029

                	
                  FNMA-Transfer
                    of ownership pending

                
	
                  030

                	
                  FNMA-Fraud

                
	
                  031

                	
                  FNMA-Unable
                    to contact borrower

                
	
                  INC

                	
                  FNMA-Incarceration

                

        

      

       

      
        
          
          

        

        
          EXHIBIT
            N-2-3

          
            

          

        

        
          
          

        

      

       

      The
        FNMA
        Delinquent Status Code
        field should show the Status of Default as follows: 

      

        
          	
                  Status
                    Code

                	
                  Status
                    Description

                
	
                  09

                	
                  Forbearance

                
	
                  17

                	
                  Pre-foreclosure
                    Sale Closing Plan Accepted

                
	
                  24

                	
                  Government
                    Seizure

                
	
                  26

                	
                  Refinance

                
	
                  27

                	
                  Assumption

                
	
                  28

                	
                  Modification

                
	
                  29

                	
                  Charge-Off

                
	
                  30

                	
                  Third
                    Party Sale

                
	
                  31

                	
                  Probate

                
	
                  32

                	
                  Military
                    Indulgence

                
	
                  43

                	
                  Foreclosure
                    Started

                
	
                  44

                	
                  Deed-in-Lieu
                    Started

                
	
                  49

                	
                  Assignment
                    Completed

                
	
                  61

                	
                  Second
                    Lien Considerations

                
	
                  62

                	
                  Veteran’s
                    Affairs-No Bid

                
	
                  63

                	
                  Veteran’s
                    Affairs-Refund

                
	
                  64

                	
                  Veteran’s
                    Affairs-Buydown

                
	
                  65

                	
                  Chapter
                    7 Bankruptcy

                
	
                  66

                	
                  Chapter
                    11 Bankruptcy

                
	
                  67

                	
                  Chapter
                    13 Bankruptcy

                

        

      

      

      
        
          
            
            

          

          
            EXHIBIT
              N-2-4

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        N-3

       

      FORM
        332 REALIZED LOSS REPORT

      

      WELLS
        FARGO BANK, N.A.

       

      Purpose

       

      To
        provide the Servicer with a form for the calculation of any Realized Loss
        (or
        gain) as a result of a Mortgage Loan having been foreclosed and
        Liquidated.

       

      Distribution

       

      The
        Servicer will prepare the form in duplicate and send the original together
        with
        evidence of conveyance of title and appropriate supporting documentation
        to the
        Master Servicer with the Monthly Accounting Reports which supports the Mortgage
        Loan’s removal from the Mortgage Loan Activity Report. The Servicer will retain
        the duplicate for its own records.

       

      Due
        Date

       

      With
        respect to any liquidated Mortgage Loan, the form will be submitted to the
        Master Servicer no later than the date on which statements are due to the
        Master
        Servicer under Section 4.02 of this Agreement (the “Statement Date”) in the
        month following receipt of final liquidation proceeds and supporting
        documentation relating to such liquidated Mortgage Loan; provided, that if
        such
        Statement Date is not at least 30 days after receipt of final liquidation
        proceeds and supporting documentation relating to such liquidated Mortgage
        Loan,
        then the form will be submitted on the first Statement Date occurring after
        the
        30th day following receipt of final liquidation proceeds and supporting
        documentation.

       

      Preparation
        Instructions

       

      The
        numbers on the form correspond with the numbers listed below.

       

      
        	 	
                1.

              	
                The
                  actual Unpaid Principal Balance of the Mortgage
                  Loan.

              

      

       

      
        	 	
                2.

              	
                The
                  Total Interest Due less the aggregate amount of servicing fee that
                  would
                  have been earned if all
                  delinquent payments had been made as
                  agreed.

              

      

       

      
        	 	
                3-7.

              	
                Complete
                  as necessary. All line entries must be supported by copies of appropriate
                  statements, vouchers, receipts, canceled checks, etc., to document
                  the
                  expense. Entries not properly documented will not be reimbursed
                  to the
                  Servicer.

              

      

       

      
        	 	
                8.

              	
                Accrued
                  Servicing Fees based upon the Stated Principal Balance of the Mortgage
                  Loan as calculated on a monthly
                  basis.

              

      

       

      
        	 	
                9.

              	
                The
                  total of lines 1 through 8.

              

      

       

      
        
          
          

        

        
          EXHIBIT
            N-3-1

          
            

          

        

        
          
          

        

      

      

      Exhibit
        : Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due on the remittance report date. Late
        submissions may result in claims not being passed until the following month.
        The
        Servicer is responsible to remit all funds pending loss approval and /or
        resolution of any disputed items. 

       

      The
        numbers on the 332 form correspond with the numbers listed below.

      Liquidation
        and Acquisition Expenses:

      
        	 	
                1.

              	
                The
                  Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                  an Amortization Schedule from date of default through liquidation
                  breaking
                  out the net interest and servicing fees advanced is
                  required.

              

      

       

      
        	 	
                2.

              	
                The
                  Total Interest Due less the aggregate amount of servicing fee that
                  would
                  have been earned if all delinquent payments had been made as agreed.
                  For
                  documentation, an Amortization Schedule from date of default through
                  liquidation breaking out the net interest and servicing fees advanced
                  is
                  required.

              

      

       

      
        	 	
                3.
                  

              	
                Accrued
                  Servicing Fees based upon the Scheduled Principal Balance of the
                  Mortgage
                  Loan as calculated on a monthly basis. For documentation, an Amortization
                  Schedule from date of default through liquidation breaking out
                  the net
                  interest and servicing fees advanced is
                  required.

              

      

       

      
        	 	
                4-12.

              	
                Complete
                  as applicable. Required
                  documentation:

              

      

       

      *  For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period

       

         
of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of servicer efforts to recover advances.

       

      *  For
        escrow advances - complete payment history

       

          (to
        calculate advances from last positive escrow balance forward)

       

      *  Other
        expenses -  copies of corporate advance history showing all
        payments

       

      *  REO
        repairs > $1500 require explanation

       

      *  REO
        repairs >$3000 require evidence of at least 2 bids.

       

      *
        Short
        Sale or Charge Off require P&L supporting the decision and
        WFB’s approved Servicing Officer certification

       

      *  Unusual
        or extraordinary items may require further documentation.

       

      
        	 	
                13.

              	
                The
                  total of lines 1 through 12.

              

      

       

      Credits:
        

      
        	 	
                14-21.

              	
                Complete
                  as applicable. Required
                  documentation:

              

      

       

      *  Copy
        of the HUD 1 from the REO sale. If a 3rd
        Party
        Sale, bid instructions and Escrow
        Agent / Attorney

       

         Letter
        of
        Proceeds
        Breakdown.

       

      *  Copy
        of EOB for any MI or gov't guarantee

       

      *  All
        other credits need to be clearly defined on the 332
        form      
     

      
        
          
          

        

        
          EXHIBIT
            N-3-2

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

      
        	 	
                Please
                  Note:

              	
                For
                  HUD/VA loans, use line (18a) for Part A/Initial proceeds and line
                  (18b)
                  for Part B/Supplemental proceeds.

              

      

       

      Total
        Realized Loss (or Amount of Any Gain)

       

      
        	 	
                23.

              	
                The
                  total derived from subtracting line 22 from 13. If the amount represents
                  a
                  realized gain, show
                  the amount in parenthesis ( ). 

              

      

       

       

       

       

       

      
 

      
        
          
            
            

          

          
            EXHIBIT
              N-3-3

            
              

            

          

          
            
            

          

        

      

       

      Exhibit
        3A: Calculation
        of Realized Loss/Gain Form 332

      

      Prepared
        by:  __________________                                 Date:  _______________

       

       

      Phone:  ______________________     Email
        Address:_____________________

       

      

      
        	 	 	 	 	 
	
                Servicer
                  Loan No.

                 

              	 	
                Servicer
                  Name

              	 	
                Servicer
                  Address

              

      

       

      WELLS
        FARGO BANK, N.A. Loan No._____________________________

       

      Borrower's
        Name: _________________________________________________________

      Property
        Address: _________________________________________________________

       

      Liquidation
        Type: REO
        Sale                3rd
        Party
        Sale                Short
        Sale                Charge
        Off

       

      Was
        this loan granted a Bankruptcy deficiency or
        cramdown                Yes                No

      If
“Yes”,
        provide deficiency or cramdown amount
        _______________________________

       

      Liquidation
        and Acquisition Expenses:

      
        	
                (1)

              	
                Actual
                  Unpaid Principal Balance of Mortgage Loan

              	
                $
                  ______________

              	
                (1)

              
	
                (2)

              	
                Interest
                  accrued at Net Rate

              	
                ________________

              	
                (2)

              
	
                (3)

              	
                Accrued
                  Servicing Fees

              	
                ________________

              	
                (3)

              
	
                (4)

              	
                Attorney's
                  Fees

              	
                ________________

              	
                (4)

              
	
                (5)

              	
                Taxes
                  (see page 2)

              	
                ________________

              	
                (5)

              
	
                (6)

              	
                Property
                  Maintenance

              	
                ________________

              	
                (6)

              
	
                (7)

              	
                MI/Hazard
                  Insurance Premiums (see page 2)

              	
                ________________

              	
                (7)

              
	
                (8)

              	
                Utility
                  Expenses

              	
                ________________

              	
                (8)

              
	
                (9)

              	
                Appraisal/BPO

              	
                ________________

              	
                (9)

              
	
                (10)

              	
                Property
                  Inspections

              	
                ________________

              	
                (10)

              
	
                (11)

              	
                FC
                  Costs/Other Legal Expenses

              	
                ________________

              	
                (11)

              
	
                (12)

              	
                Other
                  (itemize)

              	
                ________________

              	
                (12)

              
	 	
                Cash
                  for Keys__________________________

              	
                ________________

              	
                (12)

              
	 	
                HOA/Condo
                  Fees_______________________

              	
                ________________

              	
                (12)

              
	 	
                ______________________________________

              	
                ________________

              	
                (12)

              
	 	 	 	 
	 	
                Total
                  Expenses

              	
                $
                  _______________

              	
                (13)

              
	
                Credits:

              	 	 
	
                (14)

              	
                Escrow
                  Balance

              	
                $
                  _______________

              	
                (14)

              
	
                (15)

              	
                HIP
                  Refund

              	
                ________________

              	
                (15)

              
	
                (16)

              	
                Rental
                  Receipts

              	
                ________________

              	
                (16)

              
	
                (17)

              	
                Hazard
                  Loss Proceeds

              	
                ________________

              	
                (17)

              
	
                (18)

              	
                Primary
                  Mortgage Insurance / Gov’t Insurance

              	
                ________________

              	
                (18a)
                  

              
	
                HUD
                  Part A

              	 	 
	 	 	
                ________________

              	
                (18b)
                  

              
	
                HUD
                  Part B

              	 	 
	
                (19)

              	
                Pool
                  Insurance Proceeds

              	
                ________________

              	
                (19)

              
	
                (20)

              	
                Proceeds
                  from Sale of Acquired Property

              	
                ________________

              	
                (20)

              
	
                (21)

              	
                Other
                  (itemize)

              	
                ________________

              	
                (21)

              
	 	
                _________________________________________

              	
                ________________

              	
                (21)

              
	 	 	 	 
	 	
                Total
                  Credits

              	
                $________________

              	
                (22)

              
	
                Total
                  Realized Loss (or Amount of Gain)

              	
                $________________

              	
                (23)

              

      

      

      
        
          
            
            

          

          
            EXHIBIT
              N-3-4

            
              

            

          

          
            
            

          

        

      

      

      Escrow
        Disbursement Detail

       

      
        	 	 	 	 	 	 	 
	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of 

                Coverage

              	
                Total
                  Paid

              	
                Base
                  

                Amount

              	
                Penalties

              	
                Interest

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

      

      

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              N-3-5

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
        O

       

      FORM
        OF SWAP AGREEMENT

      

      

      
        
          
            
            

          

          
            EXHIBIT
              O-1

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
        P

       

      FORM
        OF CAP AGREEMENT

      

      
        
          
            
            

          

          
            EXHIBIT
              P-1

            
              

            

          

          
            
            

          

        

      

      

       

      EXHIBIT
        Q

       

      MASTER
        MORTGAGE LOAN PURCHASE AND INTERIM SERVICING AGREEMENT

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              Q-1

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        R-1

      

      FORM
        OF WATCHLIST REPORT

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              R-1-1

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        R-2

      

      FORM
        OF LOSS SEVERITY REPORT

      

      

      
        
          
            
            

          

          
            EXHIBIT
              R-2-1

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        R-3

      

      FORM
        OF PREPAYMENT CHARGES REPORT

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              R-3-1

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        R-4

      

      FORM
        OF
        ANALYTICS REPORT

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              R-4-1

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        S

      

      SERVICING
        CRITERIA MATRIX

      

      Where
        there are multiple checks for criteria the attesting party will identify
        in
        their management assertion that they are attesting only to the portion of
        the
        distribution chain they are responsible for in the related transaction
        agreements. Capitalized terms used herein but not defined herein shall have
        the
        meanings assigned to them in the Pooling and Servicing Agreement dated as
        of
        July 1, 2006 (the “Pooling and Servicing Agreement”), by and among HSI Asset
        Securitization Corporation, as depositor, WMC Mortgage Corp., as originator,
        Wells Fargo Bank, N.A., as servicer, master servicer, securities administrator
        and custodian, Clayton Fixed Income Services, Inc., as credit risk manager,
        and
        Deutsche Bank National Trust Company, as trustee 

      

      

      
        	
                Reg
                  AB 

                Reference

              	
                Servicing
                  Criteria

              	
                Wells
                  Fargo

              	
                Servicer*

              
	 	
                General Servicing
                   Considerations

              	 	 
	
                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements.

              	
                X

              	
                X

              
	
                1122(d)(1)(ii)

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities.

              	
                X

              	
                X

              
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the pool assets are maintained. 

              	 	 
	
                1122(d)(1)(iv)

              	
                A
                  fidelity bond and errors and omissions policy is in effect on the
                  party
                  participating in the servicing function throughout the reporting
                  period in
                  the amount of coverage required by and otherwise in accordance
                  with the
                  terms of the transaction agreements. 

              	
                X

              	
                X

              
	 	
                Cash Collection and Administration

              	 	 
	
                1122(d)(2)(i)

              	
                Payments
                  on pool assets are deposited into the appropriate custodial bank
                  accounts
                  and related bank clearing accounts no more than two business days
                  following receipt, or such other number of days specified in the
                  transaction agreements. 

              	
                X

              	
                X

              
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel. 

              	
                X

              	
                X

              
	
                1122(d)(2)(iii)

              	
                Advances
                  of funds or guarantees regarding collections, cash flows or distributions,
                  and any interest or other fees charged for such advances, are made,
                  reviewed and approved as specified in the transaction agreements.
                  

              	
                X

              	
                X

              

      

       

      
        
          
          

        

        
          EXHIBIT
            S-1

          
            

          

        

        
          
          

        

      

       

      
        	
                Reg
                  AB 

                Reference

              	
                Servicing
                  Criteria

              	
                Wells
                  Fargo

              	
                Servicer*

              
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of over collateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements. 

              	
                X

              	
                X

              
	
                1122(d)(2)(v)

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institution” with respect to
                  a foreign financial institution means a foreign financial institution
                  that
                  meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                  Act.
                  

              	
                X

              	
                X

              
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized access.
                  

              	
                X

              	
                X

              
	
                1122(d)(2)(vii)
                  

              	
                Reconciliations
                  are prepared on a monthly basis for all asset-backed securities
                  related
                  bank accounts, including custodial accounts and related bank clearing
                  accounts. These reconciliations are (A) mathematically accurate;
                  (B)
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C)
                  reviewed and approved by someone other than the person who prepared
                  the
                  reconciliation; and (D) contain explanations for reconciling items.
                  These
                  reconciling items are resolved within 90 calendar days of their
                  original
                  identification, or such other number of days specified in the transaction
                  agreements. 

              	
                X

              	
                A,
                  B & D

              
	 	
                Investor
                  Remittances and Reporting

              	 	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission requirements. Specifically, such reports (A) are prepared
                  in
                  accordance with timeframes and other terms set forth in the transaction
                  agreements; (B) provide information calculated in accordance with
                  the
                  terms specified in the transaction agreements; (C) are filed with
                  the
                  Commission as required by its rules and regulations; and (D) agree
                  with
                  investors’ or the trustee’s records as to the total unpaid principal
                  balance and number of pool assets serviced by the Servicer.
                  

              	
                X

              	
                X

              
	
                1122(d)(3)(ii)

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements. 

              	
                X

              	
                X

              
	
                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  Servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements. 

              	
                X

              	
                X

              
	
                1122(d)(3)(iv)

              	
                Amounts
                  remitted to investors per the investor reports agree with cancelled
                  checks, or other form of payment, or custodial bank statements.
                  

              	
                X

              	
                X

              
	 	
                Pool
                  Asset Administration

              	 	 
	
                1122(d)(4)(i)
                  

              	
                Collateral
                  or security on pool assets is maintained as required by the transaction
                  agreements or related pool asset documents. 

              	
                X

              	
                X

              

      

       

      
        
          
          

        

        
          EXHIBIT
            S-2

          
            

          

        

        
          
          

        

      

       

      
        	
                Reg
                  AB 

                Reference

              	
                Servicing
                  Criteria

              	
                Wells
                  Fargo

              	
                Servicer*

              
	
                1122(d)(4)(ii)

              	
                Pool
                  assets and related documents are safeguarded as required by the
                  transaction agreements 

              	
                X

              	
                X

              
	
                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements. 

              	 	
                X

              
	
                1122(d)(4)(iv)

              	
                Payments
                  on pool assets, including any payoffs, made in accordance with
                  the related
                  pool asset documents are posted to the Servicer’s obligor records
                  maintained no more than two business days after receipt, or such
                  other
                  number of days specified in the transaction agreements, and allocated
                  to
                  principal, interest or other items (e.g., escrow) in accordance
                  with the
                  related pool asset documents. 

              	 	
                X

              
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the pool assets agree with the Servicer’s
                  records with respect to an obligor’s unpaid principal balance.
                  

              	 	
                X

              
	
                1122(d)(4)(vi)

              	
                Changes
                  with respect to the terms or status of an obligor's pool assets
                  (e.g.,
                  loan modifications or re-agings) are made, reviewed and approved
                  by
                  authorized personnel in accordance with the transaction agreements
                  and
                  related pool asset documents. 

              	 	
                X

              
	
                1122(d)(4)(vii)

              	
                Loss
                  mitigation or recovery actions (e.g., forbearance plans, modifications
                  and
                  deeds in lieu of foreclosure, foreclosures and repossessions, as
                  applicable) are initiated, conducted and concluded in accordance
                  with the
                  timeframes or other requirements established by the transaction
                  agreements. 

              	 	
                X

              
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  a pool
                  asset is delinquent in accordance with the transaction agreements.
                  Such
                  records are maintained on at least a monthly basis, or such other
                  period
                  specified in the transaction agreements, and describe the entity’s
                  activities in monitoring delinquent pool assets including, for
                  example,
                  phone calls, letters and payment rescheduling plans in cases where
                  delinquency is deemed temporary (e.g., illness or unemployment).
                  

              	 	
                X

              
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for pool assets with variable
                  rates
                  are computed based on the related pool asset documents. 

              	 	
                X

              
	
                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts):
                  (A) such
                  funds are analyzed, in accordance with the obligor’s pool asset documents,
                  on at least an annual basis, or such other period specified in
                  the
                  transaction agreements; (B) interest on such funds is paid, or
                  credited,
                  to obligors in accordance with applicable pool asset documents
                  and state
                  laws; and (C) such funds are returned to the obligor within 30
                  calendar
                  days of full repayment of the related pool assets, or such other
                  number of
                  days specified in the transaction agreements. 

              	 	
                X

              

      

       

      
        
          
          

        

        
          EXHIBIT
            S-3

          
            

          

        

        
          
          

        

      

       

      
        	
                Reg
                  AB 

                Reference

              	
                Servicing
                  Criteria

              	
                Wells
                  Fargo

              	
                Servicer*

              
	
                1122(d)(4)(xi)

              	
                Payments
                  made on behalf of an obligor (such as tax or insurance payments)
                  are made
                  on or before the related penalty or expiration dates, as indicated
                  on the
                  appropriate bills or notices for such payments, provided that such
                  support
                  has been received by the servicer at least 30 calendar days prior
                  to these
                  dates, or such other number of days specified in the transaction
                  agreements. 

              	 	
                X

              
	
                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the Servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission. 

              	 	
                X

              
	
                1122(d)(4)(xiii)

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements. 

              	 	
                X

              
	
                1122(d)(4)(xiv)
                  

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements. 

              	
                X

              	
                X

              
	
                1122(d)(4)(xv)

              	
                Any
                  external enhancement or other support, identified in Item 1114(a)(1)
                  through (3) or Item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements. 

              	
                [X]

                if
                  obligated under transaction documents

              	
                MI
                  Claims

              
	 	 	 	 

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              S-4

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        T

      

      

      Trustee:
        Deutsche Bank National Trust Company

      

      Securities
        Administrator:
        Wells
        Fargo Bank, N.A.

      

      Master
        Servicer:
        Wells
        Fargo Bank, N.A. 

      

      Derivative
        Counterparty:
        ABN
        AMRO Bank N.V.

      

      Servicer:
        Wells
        Fargo Bank, N.A.

      

      Originator:
        WMC
        Mortgage Corp.

      

      Custodian:
        Wells
        Fargo Bank, N.A.

      

      Sponsor:
        HSBC
        Bank USA, National Association

      

      Credit
        Risk Manager:
        Clayton
        Fixed Income Services, Inc.

      

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              T-1

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        U

      

      FORM
        OF ANNUAL COMPLIANCE CERTIFICATE

      

      Via
        Overnight Delivery

      

      [DATE]

      

      HSI
        Asset
        Securitization Corporation,

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

      

      Wells
        Fargo Bank, N.A., 

      9062
        Old
        Annapolis Road

      Columbia,
        Maryland 21045

      Attention:
        Corporate Trust Services - HASCO 2006-WMC1

      

      
        	
                RE:

              	
                Annual
                  officer’s certificate delivered pursuant to Section 3.24 of that certain
                  Pooling Servicing Agreement, dated as of July 1, 2006 (the “Pooling
                  and Servicing Agreement”),
                  among HSI Asset Securitization Corporation, as depositor (the
                  “Depositor”),
                  WMC Mortgage Corp., as originator, Wells Fargo Bank, N.A., as servicer
                  (a
                  “Servicer”),
                  master servicer (the “Master
                  Servicer”),
                  securities administrator (the “Securities
                  Administrator”)
                  and custodian, Clayton Fixed Income Services, Inc., as credit risk
                  manager, and Deutsche Bank National Trust Company, as trustee
                  (the
                  “Trustee”)

              

      

      

      [_______],
        the undersigned, a duly authorized [_______] of [the Servicer] [Master Servicer]
        [Securities Administrator] [Name of Subservicer], does hereby certify the
        following for the [calendar year][identify other period] ending on December
        31,
        20[__]:

      

      
        	
                1.

              	
                A
                  review of the activities of the [Servicer] [Master Servicer] [Securities
                  Administrator] during the preceding calendar year (or portion thereof)
                  and
                  of its performance under the Agreement for such period has been
                  made under
                  my supervision.

              

      

      

      
        	
                2.

              	
                To
                  the best of my knowledge, based on such review, the [Servicer]
                  [Master
                  Servicer] [Securities Administrator] has fulfilled all of its obligations
                  under the Agreement in all material respects throughout such year
                  (or
                  applicable portion thereof), or, if there has been a failure to
                  fulfill
                  any such obligation in any material respect, I have specifically
                  identified to the Depositor and the [Servicer][Master Servicer][Securities
                  Administrator] each such failure known to me and the nature and
                  status
                  thereof, including the steps being taken by the [Servicer] [Master
                  Servicer] [Securities Administrator] to remedy such
                  default.

              

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              U-1

            
              

            

          

          
            
            

          

        

      

      

      Certified
        By:

      

      

      

      ______________________________

      Name:

      Title:
        

      

      

      
        
          
            
            

          

          
            EXHIBIT
              U-2

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        V

       

      ADDITIONAL
        FORM 10-D DISCLOSURE

      

      

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              
	
                Item
                  1: Distribution and Pool Performance Information

              	 
	
                Information
                  included in the [Monthly Statement]

              	
                Master
                  Servicer, Servicer

                Securities
                  Administrator

              
	
                Any
                  information required by 1121 which is NOT included on the [Monthly
                  Statement]

              	
                Depositor

              
	
                Item
                  2: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceeding known to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Master
                  Servicer, Securities Administrator, Servicer and
                  Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Item
                  3: Sale of Securities and Use of Proceeds

                Information
                  from Item 2(a) of Part II of Form 10-Q:

                 

                With
                  respect to any sale of securities by the sponsor, depositor or
                  issuing
                  entity, that are backed by the same asset pool or are otherwise
                  issued by
                  the issuing entity, whether or not registered, provide the sales
                  and use
                  of proceeds information in Item 701 of Regulation S-K. Pricing
                  information
                  can be omitted if securities were not registered.

              	
                Depositor

              

      

       

      
        
          
          

        

        
          EXHIBIT
            V-1

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              
	
                 

                Item
                  4: Defaults Upon Senior Securities

                 

                Information
                  from Item 3 of Part II of Form 10-Q:

                 

                Report
                  the occurrence of any Event of Default (after expiration of any
                  grace
                  period and provision of any required notice)

              	
                 

                Securities
                  Administrator

              
	
                Item
                  5: Submission of Matters to a Vote of Security
                  Holders

                 

                Information
                  from Item 4 of Part II of Form 10-Q

              	
                Securities
                  Administrator

              
	
                Item
                  6: Significant Obligors of Pool Assets

                 

                Item
                  1112(b) - Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 
	
                Item
                  7: Significant Enhancement Provider Information

                 

                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information*

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 

      

       

      
        
          
          

        

        
          EXHIBIT
            V-2

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              
	
                Item
                  8: Other Information

                 

                Disclose
                  any information required to be reported on Form 8-K during the
                  period
                  covered by the Form 10-D but not reported

              	
                 

                 

                 

                Any
                  party responsible for the applicable Form 8-K Disclosure
                  item

              
	
                Item
                  9: Exhibits

                Monthly
                  Statement to Certificateholders

              	
                 

                Securities
                  Administrator

              
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	
                Depositor

              
	 	 

      

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              V-3

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        W

      

      ADDITIONAL
        FORM 10-K DISCLOSURE

      

      

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              
	
                Item
                  1B: Unresolved Staff Comments

              	
                Depositor

              
	
                Item
                  9B: Other Information

                Disclose
                  any information required to be reported on Form 8-K during the
                  fourth
                  quarter covered by the Form 10-K but not reported

              	
                Any
                  party responsible for disclosure items on Form 8-K

              
	
                Item
                  15: Exhibits, Financial Statement Schedules

              	
                Securities
                  Administrator

                Depositor

              
	
                Reg
                  AB Item 1112(b): Significant Obligors of Pool
                  Assets

              	 
	
                Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-K if updated information
                  is required pursuant to the Item.

              	 
	
                Reg
                  AB Item 1114(b)(2): Credit Enhancement Provider Financial
                  Information

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-K if updated information
                  is required pursuant to the Item.

              	 
	
                Reg
                  AB Item 1115(b): Derivative Counterparty Financial
                  Information

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-K if updated information
                  is required pursuant to the Item.

              	 
	
                Reg
                  AB Item 1117: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceeding known to be contemplated by governmental
                  authorities:

              	 

      

       

      
        
          
          

        

        
          EXHIBIT
            W-1

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Master
                  Servicer, Securities Administrator, Servicer and
                  Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Servicer, Master Servicer
                  or
                  Securities Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Reg
                  AB Item 1119: Affiliations and Relationships

              	 
	
                Whether
                  (a) the Sponsor (Seller), Depositor or Issuing Entity is an affiliate
                  of
                  the following parties, and (b) to the extent known and material,
                  any of
                  the following parties are affiliated with one another:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivative Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any “outside the ordinary course business arrangements” other
                  than would be obtained in an arm’s length transaction between (a) the
                  Sponsor (Seller), Depositor or Issuing Entity on the one hand,
                  and (b) any
                  of the following parties (or their affiliates) on the other hand,
                  that
                  exist currently or within the past two years and that are material
                  to a
                  Certificateholder’s understanding of the Certificates:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              

      

       

      
        
          
          

        

        
          EXHIBIT
            W-2

          
            

          

        

        
          
          

        

      

       

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivative Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any specific relationships involving the transaction
                  or the pool
                  assets between (a) the Sponsor (Seller), Depositor or Issuing Entity
                  on
                  the one hand, and (b) any of the following parties (or their affiliates)
                  on the other hand, that exist currently or within the past two
                  years and
                  that are material:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Servicer

              	
                Servicer

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              

      

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              W-3

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        X

      

      FORM
        8-K DISCLOSURE INFORMATION

      

      

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              
	
                Item
                  1.01- Entry into a Material Definitive Agreement

                 

                Disclosure
                  is required regarding entry into or amendment of any definitive
                  agreement
                  that is material to the securitization, even if depositor is not
                  a party.
                  

                 

                Examples:
                  servicing agreement, custodial agreement.

                 

                Note:
                  disclosure not required as to definitive agreements that are fully
                  disclosed in the prospectus

              	
                All
                  parties other than the Trustee

              
	
                Item
                  1.02- Termination of a Material Definitive Agreement

                 

                Disclosure
                  is required regarding termination of any definitive agreement that
                  is
                  material to the securitization (other than expiration in accordance
                  with
                  its terms), even if depositor is not a party. 

                 

                Examples:
                  servicing agreement, custodial agreement.

              	
                All
                  parties other than the Trustee

              
	
                Item
                  1.03- Bankruptcy or Receivership

                 

                Disclosure
                  is required regarding the bankruptcy or receivership, with respect
                  to any
                  of the following: 

              	
                Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Depositor/Sponsor
                  (Seller)

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Affiliated Servicer

              	
                Servicer

              
	
                ▪
                  Other Servicer servicing 20% or more of the pool assets at the
                  time of the
                  report

              	
                Servicer

              
	
                ▪
                  Other material servicers

              	
                Servicer

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              

      

       

      
        
          
          

        

        
          EXHIBIT
            X-1

          
            

          

        

        
          
          

        

      

       

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              
	
                ▪
                  Significant Obligor

              	
                Depositor

              
	
                ▪
                  Credit Enhancer (10% or more)

              	
                Depositor

              
	
                ▪
                  Derivative Counterparty

              	
                Depositor

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                Item
                  2.04- Triggering Events that Accelerate or Increase a Direct Financial
                  Obligation or an Obligation under an Off-Balance Sheet
                  Arrangement

                 

                Includes
                  an early amortization, performance trigger or other event, including
                  event
                  of default, that would materially alter the payment priority/distribution
                  of cash flows/amortization schedule.

                 

                Disclosure
                  will be made of events other than waterfall triggers which are
                  disclosed
                  in the monthly statements to the certificateholders.

              	
                Depositor

                Master
                  Servicer

                Securities
                  Administrator

              
	
                Item
                  3.03- Material Modification to Rights of Security
                  Holders

                 

                Disclosure
                  is required of any material modification to documents defining
                  the rights
                  of Certificateholders, including the Pooling and Servicing
                  Agreement.

              	
                Securities
                  Administrator

                Depositor

              
	
                Item
                  5.03- Amendments of Articles of Incorporation or Bylaws; Change
                  of Fiscal
                  Year

                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”.

              	
                Depositor

              
	
                Item
                  6.01- ABS Informational and Computational
                  Material

              	
                Depositor

              
	
                Item
                  6.02- Change of Servicer or Securities Administrator

                 

                Requires
                  disclosure of any removal, replacement, substitution or addition
                  of any
                  master servicer, affiliated servicer, other servicer servicing
                  10% or more
                  of pool assets at time of report, other material servicers or
                  trustee.

              	
                Master
                  Servicer/Securities Administrator/Depositor/

                Servicer

              
	
                Reg
                  AB disclosure about any new servicer or master servicer is also
                  required.

              	
                Servicer/Master
                  Servicer/Depositor

              
	
                Reg
                  AB disclosure about any new Trustee is also required.

              	
                Trustee

              

      

       

      
        
          
          

        

        
          EXHIBIT
            X-2

          
            

          

        

        
          
          

        

      

       

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              
	
                Item
                  6.03- Change in Credit Enhancement or External
                  Support

                Covers
                  termination of any enhancement in manner other than by its terms,
                  the
                  addition of an enhancement, or a material change in the enhancement
                  provided. Applies to external credit enhancements as well as derivatives.
                  

              	
                Depositor/Securities
                  Administrator

              
	
                Reg
                  AB disclosure about any new enhancement provider is also
                  required.

              	
                Depositor

              
	
                Item
                  6.04- Failure to Make a Required Distribution

              	
                Securities
                  Administrator

              
	
                Item
                  6.05- Securities Act Updating Disclosure

                 

                If
                  any material pool characteristic differs by 5% or more at the time
                  of
                  issuance of the securities from the description in the final prospectus,
                  provide updated Reg AB disclosure about the actual asset
                  pool.

              	
                Depositor

              
	
                If
                  there are any new servicers or originators required to be disclosed
                  under
                  Regulation AB as a result of the foregoing, provide the information
                  called
                  for in Items 1108 and 1110 respectively.

              	
                Depositor

              
	
                Item
                  7.01- Reg FD Disclosure

              	
                All
                  parties other than the Trustee

              
	
                Item
                  8.01- Other Events

                 

                Any
                  event, with respect to which information is not otherwise called
                  for in
                  Form 8-K, that the registrant deems of importance to
                  certificateholders.

              	
                Depositor

              
	
                Item
                  9.01- Financial Statements and Exhibits

              	
                Responsible
                  party for reporting/disclosing the financial statement or
                  exhibit

              

      

      

      

      

      
        
          
            
            

          

          
            EXHIBIT
              X-3

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        Y

      

      ADDITIONAL
        DISCLOSURE NOTIFICATION

       

      **SEND
        TO WELLS FARGO VIA FAX TO 410-715-2380 AND VIA EMAIL TO
        cts.sec.notifications@wellsfargo.com AND VIA OVERNIGHT MAIL TO THE ADDRESS
        IMMEDIATELY BELOW. SEND TO THE DEPOSITOR AT THE ADDRESS
        BELOW**

      

       

      Wells
        Fargo Bank, N.A. as Securities Administrator 

      Old
        Annapolis Road

      Columbia,
        Maryland 21045

      Fax:
        (410) 715-2380

      E-mail:
        cts.sec.notifications@wellsfargo.com

       

      HSI
        Asset
        Securitization Corporation

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Head MBS Principal Finance

      

      Attn:
        Corporate Trust Services - [DEAL NAME]-SEC REPORT PROCESSING

       

      RE: 
        **Additional Form [   ] Disclosure**Required

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section [   ] of the Pooling and Servicing Agreement,
        dated as of [   ] [   ], 2006, among [   ], as
        [   ], [   ], as [   ], [   ], as
        [   ] and [   ], as [   ]. The Undersigned, as
        [   ], hereby notifies you that certain events have come to our
        attention that [will][may] need to be disclosed on Form [  
].

       

      Description
        of Additional Form [   ] Disclosure:

       

      

       

      List
        of
        Any Attachments hereto to be included in the Additional Form [   ]
        Disclosure:

       

       

       

      Any
        inquiries related to this notification should be directed to [   ],
        phone number: [   ]; email address: [   ].

       

      
        
          
          

        

        
          EXHIBIT
            Y-1

          
            

          

        

        
          
          

        

      

       

       

       

      

       

      [NAME
        OF
        PARTY]

      as
        [role]

      

       

      By: 
        __________________
Name:
Title:

       

      

      

      
        
          
            
            

          

          
            EXHIBIT
              Y-2

            
              

            

          

          
            
            

          

        

      

      

      EXHIBIT
        Z

      

      CLASS
        NOTIONAL BALANCE SCHEDULE FOR CLASS A-IO CERTIFICATES

      

      

      The
        Class
        Notional Balance of the Class A-IO Certificates for each Distribution Date
        will
        be the lesser of (1) the notional balance for the applicable Distribution
        Date
        set forth in the schedule below and (2) the Pool Balance as of the first
        day of
        the related Due Period:

       

      
        	
                Distribution
                  Date

              	 	
                Class
                  Notional 

                Balance

              
	 	 	 
	
                August
                  2006

              	 	
                $210,415,000

              
	
                September
                  2006

              	 	
                $210,415,000

              
	
                October
                  2006

              	 	
                $210,415,000

              
	
                November
                  2006

              	 	
                $210,415,000

              
	
                December
                  2006

              	 	
                $210,415,000

              
	
                January
                  2007

              	 	
                $210,415,000

              
	
                February
                  2007

              	 	
                $168,332,000

              
	
                March
                  2007

              	 	
                $168,332,000

              
	
                April
                  2007

              	 	
                $168,332,000

              
	
                May
                  2007

              	 	
                $168,332,000

              
	
                June
                  2007

              	 	
                $168,332,000

              
	
                July
                  2007

              	 	
                $168,332,000

              
	
                August
                  2007

              	 	
                $126,249,000

              
	
                September
                  2007

              	 	
                $126,249,000

              
	
                October
                  2007

              	 	
                $126,249,000

              
	
                November
                  2007

              	 	
                $
                                   0

              

      

      

       

      

    

    
      
        
        

      

      
        EXHIBIT
          Z-1

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