Document:

Unassociated Document

     

    

     

    STRUCTURED
      ASSET MORTGAGE INVESTMENTS II INC.,

    Depositor

     

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    Trustee

     

    and

     

    EMC
      MORTGAGE CORPORATION,

    Seller
      and Master Servicer

     

    

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of August 1, 2007

     

    Structured
      Asset Mortgage Investments II Inc.

    

    Prime
      Mortgage Trust, Certificates

    

     

    Series
      2007-3

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

       

      TABLE
        OF
        CONTENTS

       

       

       

      
        
          	
                  ARTICLE
                    I Definitions 

                
	 
	
                  Section
                    1.01

                	
                  Definitions.

                
	 	 
	
                  ARTICLE
                    II Conveyance of Mortgage Loans; Original Issuance of
                    Certificates 

                
	 
	
                  Section
                    2.01

                	
                  Conveyance
                    of Mortgage Loans to Trustee.

                
	
                  Section
                    2.02

                	
                  Acceptance
                    of Mortgage Loans and Underlying Certificates by
                    Trustee.

                
	
                  Section
                    2.03

                	
                  Assignment
                    of Interest in the Mortgage Loan Purchase Agreement.

                
	
                  Section
                    2.04

                	
                  Substitution
                    of Mortgage Loans.

                
	
                  Section
                    2.05

                	
                  Issuance
                    of Certificates.

                
	
                  Section
                    2.06

                	
                  Representations
                    and Warranties Concerning the Depositor.

                
	
                  Section
                    2.07

                	
                  Representations
                    and Warranties of EMC.

                
	
                  Section
                    2.08

                	
                  Delivery
                    of Opinion of Counsel in Connection with Substitutions and
                    Repurchases.

                
	 	 
	
                  ARTICLE
                    III Administration of the Trust Fund and Servicing of Mortgage
                    Loans 

                
	 
	
                  Section
                    3.01

                	
                  Master
                    Servicer.

                
	
                  Section
                    3.02

                	
                  REMIC-Related
                    Covenants.

                
	
                  Section
                    3.03

                	
                  Monitoring
                    of Servicers.

                
	
                  Section
                    3.04

                	
                  Fidelity
                    Bond.

                
	
                  Section
                    3.05

                	
                  Power
                    to Act; Procedures.

                
	
                  Section
                    3.06

                	
                  Due-on-Sale
                    Clauses; Assumption Agreements.

                
	
                  Section
                    3.07

                	
                  Release
                    of Mortgage Files.

                
	
                  Section
                    3.08

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

                
	
                  Section
                    3.09

                	
                  Standard
                    Hazard Insurance and Flood Insurance Policies.

                
	
                  Section
                    3.10

                	
                  Presentment
                    of Claims and Collection of Proceeds.

                
	
                  Section
                    3.11

                	
                  Maintenance
                    of the Primary Mortgage Insurance Policies.

                
	
                  Section
                    3.12

                	
                  Trustee
                    to Retain Possession of Certain Insurance Policies and
                    Documents.

                
	
                  Section
                    3.13

                	
                  Realization
                    Upon Defaulted Mortgage Loans.

                
	
                  Section
                    3.14

                	
                  Compensation
                    for the Master Servicer.

                
	
                  Section
                    3.15

                	
                  REO
                    Property.

                
	
                  Section
                    3.16

                	
                  Annual
                    Statement as to Compliance.

                
	
                  Section
                    3.17

                	
                  Assessments
                    of Compliance and Attestation Reports.

                
	
                  Section
                    3.18

                	
                  Reports
                    Filed with Securities and Exchange Commission.

                
	
                  Section
                    3.19

                	
                  Intention
                    of the Parties and Interpretation.

                
	
                  Section
                    3.20

                	
                  UCC.

                
	
                  Section
                    3.21

                	
                  Optional
                    Purchase of Defaulted Mortgage Loans.

                
	 	 
	
                  ARTICLE
                    IV Accounts

                
	 
	
                  Section
                    4.01

                	
                  Protected
                    Accounts.

                
	
                  Section
                    4.02

                	
                  Master
                    Servicer Collection Account.

                
	
                  Section
                    4.03

                	
                  Permitted
                    Withdrawals and Transfers from the Master Servicer Collection
                    Account.

                
	
                  Section
                    4.04

                	
                  Distribution
                    Account.

                
	
                  Section
                    4.05

                	
                  Permitted
                    Withdrawals and Transfers from the Distribution
                    Account.

                
	 	 
	
                  ARTICLE
                    V Certificates 

                
	 
	
                  Section
                    5.01

                	
                  Certificates.

                
	
                  Section
                    5.02

                	
                  Registration
                    of Transfer and Exchange of Certificates.

                
	
                  Section
                    5.03

                	
                  Mutilated,
                    Destroyed, Lost or Stolen Certificates.

                
	
                  Section
                    5.04

                	
                  Persons
                    Deemed Owners.

                
	
                  Section
                    5.05

                	
                  Transfer
                    Restrictions on Residual Certificates.

                
	
                  Section
                    5.06

                	
                  Restrictions
                    on Transferability of Non-Offered Certificates.

                
	
                  Section
                    5.07

                	
                  ERISA
                    Restrictions.

                
	
                  Section
                    5.08

                	
                  Rule
                    144A Information.

                
	 	 
	
                  ARTICLE
                    VI Payments to Certificateholders 

                
	 
	
                  Section
                    6.01

                	
                  Distributions
                    on the Certificates.

                
	
                  Section
                    6.02

                	
                  [Reserved.]

                
	
                  Section
                    6.03

                	
                  Allocation
                    of Losses.

                
	
                  Section
                    6.04

                	
                  Payments.

                
	
                  Section
                    6.05

                	
                  Statements
                    to Certificateholders.

                
	
                  Section
                    6.06

                	
                  Monthly
                    Advances.

                
	
                  Section
                    6.07

                	
                  Compensating
                    Interest Payments.

                
	 	 
	
                  ARTICLE
                    VII The Master Servicer 

                
	 
	
                  Section
                    7.01

                	
                  Liabilities
                    of the Master Servicer.

                
	
                  Section
                    7.02

                	
                  Merger
                    or Consolidation of the Master Servicer.

                
	
                  Section
                    7.03

                	
                  Indemnification
                    of the Trustee and the Master Servicer

                
	
                  Section
                    7.04

                	
                  Limitations
                    on Liability of the Master Servicer and Others.

                
	
                  Section
                    7.05

                	
                  Master
                    Servicer Not to Resign.

                
	
                  Section
                    7.06

                	
                  Successor
                    Master Servicer.

                
	
                  Section
                    7.07

                	
                  Sale
                    and Assignment of Master Servicing.

                
	 	 
	
                  ARTICLE
                    VIII Default

                
	 
	
                  Section
                    8.01

                	
                  Events
                    of Default.

                
	
                  Section
                    8.02

                	
                  Trustee
                    to Act; Appointment of Successor.

                
	
                  Section
                    8.03

                	
                  Notification
                    to Certificateholders.

                
	
                  Section
                    8.04

                	
                  Waiver
                    of Defaults.

                
	
                  Section
                    8.05

                	
                  List
                    of Certificateholders.

                
	 	 
	
                  ARTICLE
                    IX Concerning the Trustee 

                
	 
	
                  Section
                    9.01

                	
                  Duties
                    of Trustee.

                
	
                  Section
                    9.02

                	
                  Certain
                    Matters Affecting the Trustee.

                
	
                  Section
                    9.03

                	
                  Trustee
                    Not Liable for Certificates or Mortgage Loans.

                
	
                  Section
                    9.04

                	
                  Trustee
                    May Own Certificates.

                
	
                  Section
                    9.05

                	
                  Trustee’s
                    Fees and Expenses.

                
	
                  Section
                    9.06

                	
                  Eligibility
                    Requirements for Trustee.

                
	
                  Section
                    9.07

                	
                  Insurance.

                
	
                  Section
                    9.08

                	
                  Resignation
                    and Removal of the Trustee.

                
	
                  Section
                    9.09

                	
                  Successor
                    Trustee.

                
	
                  Section
                    9.10

                	
                  Merger
                    or Consolidation of Trustee.

                
	
                  Section
                    9.11

                	
                  Appointment
                    of Co-Trustee or Separate Trustee.

                
	
                  Section
                    9.12

                	
                  Federal
                    Information Returns and Reports to Certificateholders; REMIC
                    Administration.

                
	 	 
	
                  ARTICLE
                    X Termination 

                
	 
	
                  Section
                    10.01

                	
                  Termination
                    Upon Repurchase by the Depositor or its Designee or Liquidation
                    of the
                    Mortgage Loans.

                
	
                  Section
                    10.02

                	
                  Additional
                    Termination Requirements with respect to the
                    Certificates.

                
	 	 
	
                  ARTICLE
                    XI Miscellaneous Provisions 

                
	 
	
                  Section
                    11.01

                	
                  Intent
                    of Parties.

                
	 	 
	
                  Section
                    11.02

                	
                  Amendment.

                
	
                  Section
                    11.03

                	
                  Recordation
                    of Agreement.

                
	
                  Section
                    11.04

                	
                  Limitation
                    on Rights of Certificateholders.

                
	
                  Section
                    11.05

                	
                  Acts
                    of Certificateholders.

                
	
                  Section
                    11.06

                	
                  Governing
                    Law.

                
	
                  Section
                    11.07

                	
                  Notices.

                
	
                  Section
                    11.08

                	
                  Severability
                    of Provisions.

                
	
                  Section
                    11.09

                	
                  Successors
                    and Assigns.

                
	
                  Section
                    11.10

                	
                  Article
                    and Section Headings.

                
	
                  Section
                    11.11

                	
                  Counterparts.

                
	
                  Section
                    11.12

                	
                  Notice
                    to Rating Agencies.

                

        

      

       

       

      EXHIBITS

       

      
        	
                Exhibit
                  A-1

              	
                -

              	
                Form
                  of Class A Certificates

              
	
                Exhibit
                  A-2

              	
                -

              	
                Form
                  of Class B Certificates

              
	
                Exhibit
                  A-3

              	
                -

              	
                Form
                  of Class PO Certificates

              
	
                Exhibit
                  A-4

              	
                -

              	
                Form
                  of Class R Certificates

              
	
                Exhibit
                  A-5

              	
                -

              	
                Form
                  of Class X Certificates

              
	
                Exhibit
                  B

              	
                -

              	
                Mortgage
                  Loan Schedule

              
	
                Exhibit
                  C

              	
                -

              	
                Available
                  Exchanges of the Exchangeable Certificates

              
	
                Exhibit
                  D-1

              	
                -

              	
                Request
                  for Release of Documents –Wells Fargo

              
	
                Exhibit
                  D-2

              	
                -

              	
                Request
                  for Release of Documents – Treasury Bank

              
	
                Exhibit
                  E

              	
                -

              	
                Form
                  of Affidavit pursuant to Section 860E(e)(4)

              
	
                Exhibit
                  F-1

              	
                -

              	
                Form
                  of Investment Letter

              
	
                Exhibit
                  F-2

              	
                -

              	
                Form
                  of Rule 144A and Related Matters Certificate

              
	
                Exhibit
                  F-3

              	
                -

              	
                Form
                  of Rule 144A Global Certificate to Regulation S Global
                  Certificate

              
	
                Exhibit
                  F-4

              	
                -

              	
                Form
                  of Regulation S Global Certificate to Rule 144A Global
                  Certificate

              
	
                Exhibit
                  G-1

              	
                -

              	
                Form
                  of Custodial Agreement – Wells Fargo

              
	
                Exhibit
                  G-2

              	
                -

              	
                Form
                  of Custodial Agreement – Treasury Bank

              
	
                Exhibit
                  H

              	
                -

              	
                Form
                  of Mortgage Loan Purchase Agreement

              
	
                Exhibit
                  I-1

              	
                -

              	
                EMC
                  Servicing Agreement

              
	
                Exhibit
                  I-2

              	
                -

              	
                NCMC
                  Servicing Agreement

              
	
                Exhibit
                  I-3

              	
                -

              	
                Mid
                  America Servicing Agreement

              
	
                Exhibit
                  I-4

              	
                -

              	
                Countrywide
                  Servicing Agreement

              
	
                Exhibit
                  J-1

              	
                -

              	
                EMC
                  Assignment Agreement

              
	
                Exhibit
                  J-2

              	
                -

              	
                Form
                  of NCMC Assignment Agreement

              
	
                Exhibit
                  J-3

              	
                -

              	
                Form
                  of Mid America Assignment Agreement

              
	
                Exhibit
                  J-4

              	
                -

              	
                Form
                  of Countrywide Assignment Agreement

              
	
                Exhibit
                  K

              	
                -

              	
                Form
                  of Back-Up Certification

              
	
                Exhibit
                  L

              	
                -

              	
                Servicing
                  Criteria to Be Addressed in Assessment of Compliance

              
	
                Exhibit
                  M

              	
                -

              	
                Form
                  10-D, Form 8-K and Form 10-K Reporting Responsibility

              
	
                Exhibit
                  N

              	
                -

              	
                Additional
                  Disclosure Notification

              
	
                Exhibit
                  O

              	
                -

              	
                Aggregate
                  Planned Principal Schedules

              
	
                Exhibit
                  P

              	
                -

              	
                Form
                  of Trustee Limited Power of Attorney

              
	
                Exhibit
                  Q

              	
                -

              	
                Form
                  of Certification to be provided by the Trustee to the
                  Depositor

              
	
                Exhibit
                  R

              	
                -

              	
                Form
                  of the Master Servicer’s Data Layout Report

              
	
                Exhibit
                  S

              	
                -

              	
                Form
                  of Transfer Affidavit

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 

      POOLING
        AND SERVICING AGREEMENT

       

      Pooling
        and Servicing Agreement dated as of August 1, 2007, among Structured Asset
        Mortgage Investments II Inc., a Delaware corporation, as depositor (the
“Depositor”), U.S. Bank National Association, as trustee (the “Trustee”), and
        EMC Mortgage Corporation, as seller (in such capacity, the “Seller”) and as
        master servicer (in such capacity, the “Master Servicer”).

       

      PRELIMINARY
        STATEMENT

       

      On
        or
        prior to the Closing Date, the Depositor acquired the Mortgage Loans from
        the
        Seller. On the Closing Date, the Depositor will sell the Mortgage Loans and
        certain other property to the Trust Fund and receive in consideration therefor
        the Certificates, together evidencing the entire beneficial ownership interest
        in the Trust Fund.

       

      The
        Trustee on behalf of the Trust shall make an election for the assets
        constituting REMIC I to be treated for federal income tax purposes as a REMIC.
        On the Startup Day, the REMIC I Regular Interests will be designated the
        “regular interests” in such REMIC, and the Class I-R-1 Certificates will be
        designated the sole class of “residual interests” in such REMIC.

       

      The
        Trustee on behalf of the Trust shall make an election for the assets
        constituting REMIC II to be treated for federal income tax purposes as a
        REMIC.
        On the Startup Day, the REMIC II Regular Interests will be designated the
        “regular interests” in such REMIC, and the Class II-R Certificates will be
        designated the sole class of “residual interests” in such REMIC.

       

      The
        Trustee on behalf of the Trust shall make an election for the assets
        constituting REMIC III to be treated for federal income tax purposes as a
        REMIC.
        On the Startup Day, the REMIC III Regular Interests will be designated the
        “regular interests” in such REMIC, and the Class I-R-2 Interest will be
        designated the sole class of “residual interests” in such REMIC.

       

      The
        Trustee on behalf of the Trust shall establish and maintain the ES Trust,
        which
        shall issue the Certificates (other than the Class I-R-1 Certificates and
        the
        Class II-R Certificates) and the corpus of which shall consist of the REMIC
        III
        Regular Interests and the Class I-R-2 Interest and all proceeds of thereof
        and
        be held by the Trustee for the benefit of the Holders of such Certificates.
        It
        is intended, for federal income tax purposes, that the ES Trust will qualify
        as
        a grantor trust under Subpart E, part I of subchapter J of chapter 1 of the
        Code, and that, to the fullest extent possible, beneficial ownership of a
        Certificate (other than the Class I-R-1 Certificates and the Class II-R
        Certificates) will be treated as direct beneficial ownership of each individual,
        uncertificated REMIC III Regular Interest or Class I-R-2 Interest held by
        the ES
        Trust for which such Certificate is designated as the Corresponding Certificate
        in Section 5.01(c)(iii).

       

      The
        Mortgage Loans will have an Outstanding Principal Balance as of the Cut-off
        Date, after deducting all Scheduled Principal due on or before the Cut-off
        Date,
        of $299,959,137.44.  The initial principal amount of the Certificates
        will not exceed such Outstanding Principal Balance.

       

      The
        Mortgage Loans have been divided into two Loan Groups, designated as Loan
        Group
        I and Loan Group II. The Group I Mortgage Loans will have an Outstanding
        Principal Balance as of the Cut-off Date, after deducting all Scheduled
        Principal due on or before the Cut-off Date, of $175,129,610.94. The Group
        II
        Mortgage Loans will have an Outstanding Principal Balance as of the Cut-off
        Date, after deducting all Scheduled Principal due on or before the Cut-off
        Date,
        of $124,829,526.50. The Group I Certificates and Group II Certificates shall
        receive distributions solely with respect to the Group I Mortgage Loans and
        Group II Mortgage Loans, respectively.

       

      In
        consideration of the mutual agreements herein contained, the Depositor, the
        Master Servicer, the Seller and the Trustee agree as follows:

       

      

       

      ARTICLE
        I

      Definitions

       

      Section
        1.01                                Definitions.

       

      Whenever
        used in this Agreement, the following words and phrases, unless otherwise
        expressly provided or unless the context otherwise requires, shall have the
        meanings specified in this Article.

       

      Accepted
        Master Servicing Practices: With respect to any Mortgage Loan, as
        applicable, either (x) those customary mortgage servicing practices of prudent
        mortgage servicing institutions that master service mortgage loans of the
        same
        type and quality as such Mortgage Loan in the jurisdiction where the related
        Mortgaged Property is located, to the extent applicable to the Trustee or
        the
        Master Servicer (except in its capacity as successor to a Servicer), or (y)
        as
        provided in the applicable Servicing Agreement, to the extent applicable
        to any
        Servicer, but in no event below the standard set forth in clause
        (x).

       

      Account:
        The Master Servicer Collection Account, the Distribution Account and the
        Protected Accounts as the context may require.

       

      Accrued
        Certificate Interest: For any Certificate (other than the Class I-PO
        Certificates and Class II-PO Certificates) for any Distribution Date, the
        interest accrued during the related Interest Accrual Period at the applicable
        Pass-Through Rate on the Current Principal Amount, or Notional Amount in
        the
        case of any Interest Only Certificate, of such Certificate immediately prior
        to
        such Distribution Date, less (i) in the case of a Senior Certificate (other
        than
        the Class I-PO Certificates and Class II-PO Certificates), such Certificate’s
        share of any Net Interest Shortfall from the related Mortgage Loans and,
        after
        the related Cross-Over Date, the interest portion of any Realized Losses
        on the
        related Mortgage Loans allocated thereto in accordance with Section 6.03(e)
        and
        (ii) in the case of a Subordinate Certificate, such Certificate’s share of any
        Net Interest Shortfall from the related Mortgage Loans and the interest portion
        of any Realized Losses on the related Mortgage Loans allocated thereto in
        accordance with Section 6.03(e). All calculations of interest on the
        Certificates will be made on the basis of a 360-day year consisting of twelve
        30-day months.

       

      Additional
        Disclosure: As defined in Section 3.18.

       

      Additional
        Form 10-D Disclosure: As defined in Section 3.18.

       

      Additional
        Form 10-K Disclosure: As defined in Section 3.18.

       

      Affiliate:
        As to any Person, any other Person controlling, controlled by or under common
        control with such Person. “Control” means the power to direct the management and
        policies of a Person, directly or indirectly, whether through ownership of
        voting securities, by contract or otherwise. “Controlled” and “Controlling” have
        meanings correlative to the foregoing. The Trustee may conclusively presume
        that
        a Person is not an Affiliate of another Person unless a Responsible Officer
        of
        the Trustee has actual knowledge to the contrary.

       

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

       

      Amounts
        Held for Future Distribution: As to any Distribution Date, the aggregate
        amount held in the Distribution Account on any date of determination on account
        of (i) all Scheduled Payments or portions thereof received in respect of
        the
        Mortgage Loans due after the related Due Period, (ii) Principal Prepayments,
        received in respect of such Mortgage Loans after the last day of the related
        Prepayment Period and (iii) Liquidation Proceeds, Subsequent Recoveries and
        Insurance Proceeds received in respect of such Mortgage Loans after the last
        day
        of the calendar month immediately preceding such Distribution Date.

       

      Annual
        Statement of Compliance: As defined in Section 3.16.

       

      Allocable
        Share: Group I Allocable Share or Group II Allocable Share.

       

      Applicable
        Credit Rating: For any long-term deposit or security, a credit rating of AAA
        in the case of each of S&P and Fitch or Aaa in the case of Moody’s. For any
        short-term deposit or security, a rating of A-l+ in the case of S&P, F-1+ in
        the case of Fitch or P-1 in the case of Moody’s.

       

      Applicable
        State Law: For purposes of Section 9.12(d), the Applicable State Law shall
        be (a) the law of the State of New York and (b) such other state law whose
        applicability shall have been brought to the attention of the Trustee by
        either
        (i) an Opinion of Counsel reasonably acceptable to the Trustee delivered
        to it
        by the Master Servicer or the Depositor, or (ii) written notice from the
        appropriate taxing authority as to the applicability of such state
        law.

       

      Appraised
        Value: For any Mortgaged Property related to a Mortgage Loan, the amount set
        forth as the appraised value of such Mortgaged Property in an appraisal made
        for
        the mortgage originator in connection with its origination of the related
        Mortgage Loan.

       

      Assessment
        of Compliance: As defined in Section 3.17.

       

      Assignment
        Agreements: The agreements attached hereto as Exhibit J, whereby the
        Servicing Agreements were assigned to the Trustee for the benefit of the
        Holders
        of the Certificateholders.

       

      Assumed
        Final Distribution Date: With respect to the Group I Certificates, the
        Distribution Date occurring in September 2037; with respect to the Group
        II
        Certificates, the Distribution Date occurring in August 2022.

       

      Attesting
        Party: As defined in Section 3.17.

       

      Attestation
        Report: As defined in Section 3.17.

       

      Available
        Funds: Group I Available Funds or Group II Available Funds.

       

      Average
        Loss Severity Percentage: With respect to any Distribution Date, the
        percentage equivalent of a fraction, the numerator of which is the sum of
        the
        Loss Severity Percentages for each Mortgage Loan which had a Realized Loss
        and
        the denominator of which is the number of Mortgage Loans which had Realized
        Losses.

       

      Bankruptcy
        Code: The United States Bankruptcy Code, as amended as codified in 11 U.S.C.
        §§ 101-1330.

       

      Bankruptcy
        Loss: With respect to any Mortgage Loan, any Deficient Valuation or Debt
        Service Reduction related to such Mortgage Loan as reported by the applicable
        Servicer to the Master Servicer.

       

      Book-Entry
        Certificates: Initially, all Classes of the Senior Certificates (other than
        the Residual Certificates) and the Offered Subordinate
        Certificates.

       

      Business
        Day: Any day other than (i) a Saturday or a Sunday, or (ii) a day on which
        the New York Stock Exchange or Federal Reserve is closed or on which banking
        institutions in the jurisdiction in which the Trustee, the Master Servicer
        or
        any Servicer is located are authorized or obligated by law or executive order
        to
        be closed.

       

      Capitalization
        Reimbursement Amount: For any Distribution Date, the aggregate of the
        amounts added to the Stated Principal Balances of the related Mortgage Loans
        during the preceding calendar month in connection with the modification of
        such
        Mortgage Loans which amounts represent unreimbursed Monthly Advances or
        Servicing Advances owed to a Servicer or the Master Servicer.

       

      Certificate
        Group: A separate group of certificates comprised of the Group I
        Certificates or Group II Certificates, as applicable.

       

      Certificate:
        Any one of the Certificates issued by the ES Trust and executed and
        countersigned by the Trustee substantially in the form of Exhibits A-1 through
        A-3 attached hereto, and representing beneficial ownership of one or more
        uncertificated REMIC III Regular Interests or the Class I-R-2 Interest held
        by
        the ES Trust.

       

      Certificates
        Distribution Report: The report prepared by the Trustee with respect to the
        Certificates and the Mortgage Loans pursuant to Section 6.05(a).

       

      Certificateholder:
        A Holder of a Certificate.

       

      Certificate
        Owner: Any Person who is the beneficial owner of a Certificate registered
        in
        the name of the Depository or its nominee.

       

      Certificate
        Register: The register maintained pursuant to Section 5.02.

       

      Class:
        With respect to the Certificates, I-A-1, I-A-2, I-A-3, I-A-4, I-A-5, I-A-6,
        I-A-7, I-B-1, I-B-2, I-B-3, I-B-4, I-B-5, I-B-6, I-X, I-PO, II-A-1, II-A-2,
        II-B-1, II-B-2, II-B-3, II-B-4, II-B-5, II-B-6, II-X, II-PO, I-R-1, I-R-2
        and
        II-R.

       

      Class
        I-A Certificates:  Any of the Class I-A-1, Class I-A-2, Class
        I-A-3, Class I-A-4, Class I-A-5, Class I-A-6 and Class I-A-7
        Certificates.

       

      Class
        I-B Certificates:  Any of the Class I-B-1, Class I-B-2, Class
        I-B-3, Class I-B-4, Class I-B-5 and Class I-B-6 Certificates.

       

      Class
        I-PO Certificates: Any Certificate designated as a “Class I-PO Certificate”
on its face.

       

      Class
        I-PO Certificate Cash Shortfall: For any Distribution Date and the Class
        I-PO Certificates, the difference between (i) principal distributable to
        the
        Class I-PO Certificates in accordance with priority fourth of clause
        (i) under subsection 6.01(a)(I), and (ii) principal actually distributed
        to the
        Class I-PO Certificates after giving effect to clause (iii) under subsection
        6.01(a)(I).

       

      Class
        I-PO Certificate Deferred Amount: As to each Distribution Date through the
        Group I Cross-Over Date, the aggregate of all amounts allocable on such dates
        to
        the Class I-PO Certificates in respect of the principal portion of Realized
        Losses in respect of Discount Mortgage Loans in Loan Group I and the Class
        I-PO
        Certificate Cash Shortfall and all amounts previously allocated in respect
        of
        such losses and such shortfalls to the Class I-PO Certificates, and not
        distributed on prior Distribution Dates.

       

      Class
        I-PO Certificate Principal Distribution Amount: Class I-PO Certificates
        shall be entitled to distributions from Loan Group I.  For each of the
        Class I-PO Certificates with respect to each Distribution Date, an amount
        equal
        to the sum of:

       

      (i)           the
        related PO Percentage of all scheduled payments of principal due on each
        Discount Mortgage Loan in Loan Group I on the related Due Date as specified
        in
        the amortization schedule at the time applicable thereto (after adjustment
        for
        previous principal prepayments but before any adjustment to such amortization
        schedule by reason of any bankruptcy or similar proceeding or any moratorium
        or
        similar waiver or grace period);

       

      (ii)           the
        related PO Percentage of the Scheduled Principal Balance of each Discount
        Mortgage Loan in Loan Group I which was the subject of a prepayment in full
        received by the related Servicer during the applicable Prepayment
        Period;

       

      (iii)           the
        related PO Percentage of all partial prepayments of principal of each Discount
        Mortgage Loan in Loan Group I received during the applicable Prepayment
        Period;

       

      (iv)           the
        lesser of (a) the related PO Percentage of the sum of (A) all Net Liquidation
        Proceeds and Subsequent Recoveries allocable to principal on each Discount
        Mortgage Loan in Loan Group I which became a Liquidated Mortgage Loan during
        the
        calendar month immediately preceding such Distribution Date (other than a
        Discount Mortgage Loan in Loan Group I described in clause (B)) and (B) the
        Scheduled Principal Balance of each such Discount Mortgage Loan in Loan Group
        I
        purchased by an insurer from the Trustee during the related Prepayment Period
        pursuant to the related Primary Mortgage Insurance Policy, if any, or otherwise;
        and (b) the related PO Percentage of the sum of (A) the Scheduled Principal
        Balance of each Discount Mortgage Loan in Loan Group I which became a Liquidated
        Mortgage Loan during the calendar month immediately preceding such Distribution
        Date (other than a Discount Mortgage Loan in Loan Group I described in clause
        (B)) and (B) the Scheduled Principal Balance of each such Discount Mortgage
        Loan
        in Loan Group I that was purchased by an insurer from the Trustee during
        the
        related Prepayment Period pursuant to the related Primary Mortgage Insurance
        Policy, if any, or otherwise; and

       

      (v)           the
        related PO Percentage of the sum of (a) the Scheduled Principal Balance of
        each
        Discount Mortgage Loan in Loan Group I which was repurchased by the Seller
        in
        connection with such Distribution Date and (b) the difference, if any, between
        the Scheduled Principal Balance of a Discount Mortgage Loan in Loan Group
        I that
        has been replaced by the Seller with a substitute Discount Mortgage Loan
        pursuant to the Agreement in connection with such Distribution Date and the
        Scheduled Principal Balance of such substitute Discount Mortgage Loan;
        minus

       

      (vi)         
        the related PO Percentage of the portion of the Capitalization Reimbursement
        Amount for such Distribution Date, if any, related to each Discount Mortgage
        Loan related to Loan Group I.

       

      Class
        I-R-2 Interest: The sole class of uncertificated “residual interests” in
        REMIC III the beneficial ownership of which is represented by the Class I-R-2
        Certificates.

       

      Class
        II-A Certificates:  Any of the Class II-A-1 Certificates and Class
        II-A-2 Certificates.

       

      Class
        II-B Certificates:  Any of the Class II-B-1, Class II-B-2, Class
        II-B-3, Class II-B-4, Class II-B-5 and Class II-B-6 Certificates.

       

      Class
        II-PO Certificates: Any Certificate designated as a “Class II-PO
        Certificate” on its face.

       

      Class
        II-PO Certificate Cash Shortfall: For any Distribution Date and the Class
        II-PO Certificates, the difference between (i) principal distributable to
        the
        Class II-PO Certificates in accordance with priority fourth of clause
        (i) under subsection 6.01(a)(II), and (ii) principal actually distributed
        to the
        Class II-PO Certificates after giving effect to clause (iii) under subsection
        6.01(a)(II).

       

      Class
        II-PO Certificate Deferred Amount: As to each Distribution Date through the
        Group II Cross-Over Date, the aggregate of all amounts allocable on such
        dates
        to the Class II-PO Certificates in respect of the principal portion of Realized
        Losses in respect of Discount Mortgage Loans in Loan Group II and the Class
        II-PO Certificate Cash Shortfall and all amounts previously allocated in
        respect
        of such losses and such shortfalls to the Class II-PO Certificates, and not
        distributed on prior Distribution Dates.

       

      Class
        II-PO Certificate Principal Distribution Amount: Class II-PO Certificates
        shall be entitled to distributions from Loan Group II.  For each of
        the Class II-PO Certificates with respect to each Distribution Date, an amount
        equal to the sum of:

       

      (i)           the
        related PO Percentage of all scheduled payments of principal due on each
        Discount Mortgage Loan in Loan Group II on the related Due Date as specified
        in
        the amortization schedule at the time applicable thereto (after adjustment
        for
        previous principal prepayments but before any adjustment to such amortization
        schedule by reason of any bankruptcy or similar proceeding or any moratorium
        or
        similar waiver or grace period);

       

      (ii)           the
        related PO Percentage of the Scheduled Principal Balance of each Discount
        Mortgage Loan in Loan Group II which was the subject of a prepayment in full
        received by the related Servicer during the applicable Prepayment
        Period;

       

      (iii)           the
        related PO Percentage of all partial prepayments of principal of each Discount
        Mortgage Loan in Loan Group II received during the applicable Prepayment
        Period;

       

      (iv)           the
        lesser of (a) the related PO Percentage of the sum of (A) all Net Liquidation
        Proceeds and Subsequent Recoveries allocable to principal on each Discount
        Mortgage Loan in Loan Group II which became a Liquidated Mortgage Loan during
        the calendar month immediately preceding such Distribution Date (other than
        a
        Discount Mortgage Loan in Loan Group II described in clause (B)) and (B)
        the
        Scheduled Principal Balance of each such Discount Mortgage Loan in Loan Group
        II
        purchased by an insurer from the Trustee during the related Prepayment Period
        pursuant to the related Primary Mortgage Insurance Policy, if any, or otherwise;
        and (b) the related PO Percentage of the sum of (A) the Scheduled Principal
        Balance of each Discount Mortgage Loan in Loan Group II which became a
        Liquidated Mortgage Loan during the calendar month immediately preceding
        such
        Distribution Date (other than a Discount Mortgage Loan in Loan Group II
        described in clause (B)) and (B) the Scheduled Principal Balance of each
        such
        Discount Mortgage Loan in Loan Group II that was purchased by an insurer
        from
        the Trustee during the related Prepayment Period pursuant to the related
        Primary
        Mortgage Insurance Policy, if any, or otherwise; and

       

      (v)          
        the
        related PO Percentage of the sum of (a) the Scheduled Principal Balance of
        each
        Discount Mortgage Loan in Loan Group II which was repurchased by the Seller
        in
        connection with such Distribution Date and (b) the difference, if any, between
        the Scheduled Principal Balance of a Discount Mortgage Loan in Loan Group
        II
        that has been replaced by the Seller with a substitute Discount Mortgage
        Loan
        pursuant to the Agreement in connection with such Distribution Date and the
        Scheduled Principal Balance of such substitute Discount Mortgage Loan;
        minus

       

      (vi)        
         the
        related PO Percentage of the portion of the Capitalization Reimbursement
        Amount
        for such Distribution Date, if any, related to each Discount Mortgage Loan
        related to Loan Group II.

       

      Class
        Prepayment Distribution Trigger: For a Class of related Subordinate
        Certificates for any Distribution Date, the Class Prepayment Distribution
        Trigger is satisfied if the fraction (expressed as a percentage), the numerator
        of which is the aggregate Current Principal Amount of such Class and each
        Class
        of the related Subordinate Certificates subordinate thereto, if any, and
        the
        denominator of which is the Scheduled Principal Balance of all of the related
        Mortgage Loans as of the beginning of the related Due Period, equals or exceeds
        such percentage calculated as of the Closing Date.

       

      Class
        R Certificates: The Class I-R-1, Class I-R-2 and Class II-R
        Certificates.

       

      Class
        X Certificates:  The Class I-X Certificates and Class II-X
        Certificates.

       

      Clearing
        Agency: An organization registered as a “clearing agency” pursuant to
        Section 17A of the Securities and Exchange Act of 1934, as amended, which
        initially shall be DTC, Clearstream, Luxembourg and Euroclear.

       

      Clearstream,
        Luxembourg: Clearstream Banking, a société anonyme, a limited liability
        company organized under the laws of Luxembourg.

       

      Closing
        Date: August 31, 2007.

       

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

       

      Combination
        Group: One of the alternative combinations of Exchangeable and Exchanged
        Certificates that may be exchanged for each other as set forth in the Exhibit
        C.

       

      Company:
        EMC Mortgage Corporation, in its capacity as servicer.

       

      Compensating
        Interest Payment: As defined in Section 6.07.

       

      Corporate
        Trust Office: The office of the Trustee at which at any particular time its
        corporate trust business is administered, which office, at the date of the
        execution of this Agreement, is located at US Bank Corporate Trust Services,
        One
        Federal Street, 3rd Floor,
        Boston,
        Massachusetts 02110, Attention:  Corporate Trust Services/PRIME
        2007-3, or such other address as the Trustee may designate from time to
        time.

       

      Corresponding
        Certificate: With respect to any one or more REMIC III Regular Interests and
        the Class I-R-2 Interest listed in the table in Section 5.01(c)(iii), the
        Certificate specified in that table as the “Corresponding Certificate”
representing the beneficial ownership thereof.

       

      Corresponding
        Interest:  With respect to each REMIC I Regular Interest (other
        than REMIC I Regular Interest I-R-2) and each REMIC II Regular Interest,
        the
        REMIC III Regular Interest with the corresponding designation, and with respect
        to REMIC I Regular Interest I-R-2, the Class I-R-2 Interest.

       

      Countrywide:  Countrywide
        Home Loans Servicing LP.

       

      Countrywide
        Assignment Agreement:  The Assignment, Assumption and Recognition
        Agreement, dated as of August 31, 2007, by and among EMC, Countrywide and
        the
        Trustee evidencing the assignment of the Countrywide Servicing Agreement
        to the
        Trust, attached hereto as Exhibit J-3.

       

      Countrywide
        Servicing Agreement:  The Purchase, Warranties and Servicing
        Agreement, dated as of September 1, 2002, between Assignor and Company as
        amended by Amendment No.1, dated January 1, 2003, Amendment No. 2, dated
        September 1, 2004 and as amended by Amendment Reg AB to the Purchase, Warranties
        and Servicing Agreement, dated as of March 1, 2006, attached hereto as Exhibit
        I-4, as modified by the Countrywide Assignment Agreement.

       

      Credit
        Support Depletion Date: The first Distribution Date on which the Senior
        Percentage equals 100%.

       

      Cross-Over
        Date:  Group I Cross-Over Date or Group II Cross-Over
        Date.

       

      Current
        Principal Amount: With respect to any Certificate (other than an Interest
        Only Certificate) as of any Distribution Date, the initial principal amount
        of
        such Certificate plus any Subsequent Recoveries added to the Current Principal
        Amount of such Certificate pursuant to Section 6.01(g), and reduced by (i)
        all
        amounts distributed on previous Distribution Dates on such Certificate or
        Component with respect to principal, (ii) the principal portion of all Realized
        Losses allocated prior to such Distribution Date to such Certificates, taking
        account of the Loss Allocation Limitation and (iii) in the case of a Subordinate
        Certificate, such Certificate’s pro rata share, if any, of the related
        applicable Subordinate Certificate Writedown Amount for previous Distribution
        Dates. With respect to any Class of Certificates (other than an Interest
        Only
        Certificate), the Current Principal Amount thereof will equal the sum of
        the
        Current Principal Amounts of all Certificates in such Class. Notwithstanding
        the
        foregoing, solely for purposes of giving consents, directions, waivers,
        approvals, requests and notices, the Class I-R-1, Class I-R-2 and Class II-R
        Certificates after the Distribution Date on which they each receive the
        distribution of the last dollar of their respective original principal amount
        shall be deemed to have Current Principal Amounts equal to their respective
        Current Principal Amounts on the day immediately preceding such Distribution
        Date.

       

      The
        Current Principal Amount of any Exchangeable Certificates that have been
        surrendered and cancelled for Exchanged Certificates shall be equal to
        zero.  The Current Principal Amount of any Exchanged Certificates that
        have not been exchanged for Exchangeable Certificates shall be equal to
        zero.

       

      Current
        Report:  The Current Report pursuant to Section 13 or 15(d) of the
        Exchange Act.

       

      Custodial
        Agreement: As applicable, (i) the custodial agreement, dated as of the
        Closing Date among the Depositor, the Master Servicer, the Trustee, EMC as
        a
        seller, Master Funding as a seller and Wells Fargo Bank, N.A., as Custodian,
        substantially in the form of Exhibit G-1 hereto or (ii)  the custodial
        agreement, dated as of the Closing Date among the Depositor, the Master
        Servicer, the Trustee, EMC as a seller, Master Funding as a seller and Treasury
        Bank, A Division of Countrywide Bank, FSB, as Custodian, substantially in
        the
        form of Exhibit G-2 hereto.

       

      Custodian:
        As applicable, (i) Wells Fargo Bank, National Association, or any successor
        custodian appointed pursuant to the provisions hereof and of the related
        Custodial Agreement, or (ii) Treasury Bank, a Division of Countrywide Bank,
        FSB,
        or any successor custodian appointed pursuant to the provisions hereof and
        of
        the related Custodial Agreement.

       

      Cut-off
        Date: August 1, 2007.

       

      Cut-off
        Date Balance: An amount equal to $175,129,610.94 with respect to Group I
        Mortgage Loans and $124,829,526.50 with respect to Group II Mortgage
        Loans.

       

      Debt
        Service Reduction: Any reduction of the Scheduled Payments which a Mortgagor
        is obligated to pay with respect to a Mortgage Loan as a result of any
        proceeding under the Bankruptcy Code or any other similar state law or other
        proceeding.

       

      Deficient
        Valuation: With respect to any Mortgage Loan, a valuation of the Mortgaged
        Property by a court of competent jurisdiction in an amount less than the
        then
        outstanding indebtedness under the Mortgage Loan, which valuation results
        from a
        proceeding initiated under the Bankruptcy Code or any other similar state law or
        other proceeding.

       

      Delinquent:
        The delinquency method used for calculations with respect to the Mortgage
        Loans
        will be in accordance with the methodology used by the Mortgage Bankers
        Association. Under this method, a mortgage loan is considered "30 days or
        more
        Delinquent" if the borrower fails to make a scheduled payment prior to the
        mortgage loan’s first succeeding due date. For example, if a securitization had
        a closing date occurring in August and a cut-off date of August 1, a mortgage
        loan with a payment due on July 1 that remained unpaid as of the close of
        business on July 31 would be described as 30 days delinquent as of the cut-off
        date. A mortgage loan would be considered "60 days or more Delinquent" with
        respect to such scheduled payment if such scheduled payment were not made
        prior
        to the close of business on the day prior to the mortgage loan’s second
        succeeding due date (or, in the preceding example, if the mortgage loan with
        a
        payment due on June 1 remained unpaid as of the close of business on July
        31).
        Similarly for "90 days or more Delinquent" and so on. Unless otherwise
        specified, with respect to any date of determination, determinations of
        delinquency are made as of the last day of the prior calendar month. Mortgage
        Loans with Due Dates which are not the first of the month are treated as
        if the
        Due Date was the first of the following month.  This method of
        determining delinquencies is also referred to as the MBA method.

       

      Depositor:
        Structured Asset Mortgage Investments II Inc., a Delaware corporation, or
        its
        successors in interest.

       

      Depositor
        Information:  As defined in Section 3.18(c).

       

      Depository:
        The Depository Trust Company, the nominee of which is Cede & Co., or any
        successor thereto.

       

      Depository
        Agreement: The meaning specified in Subsection 5.01(a) hereof.

       

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

       

      Designated
        Depository Institution: A depository institution (commercial bank, federal
        savings bank, mutual savings bank or savings and loan association) or trust
        company (which may include the Trustee), the deposits of which are fully
        insured
        by the FDIC to the extent provided by law.

       

      Determination
        Date: With respect to each Mortgage Loan, the Determination Date as defined
        in the related Servicing Agreement.

       

      Discount
        Mortgage Loan: Any Group I Mortgage Loan with a Net Mortgage Rate less than
        6.00% per annum, and any Group II Mortgage Loan with a Net Mortgage Rate
        less
        than 6.00% per annum.

       

      Disqualified
        Organization: Any of the following: (i) the United States, any State or
        political subdivision thereof, any possession of the United States, or any
        agency or instrumentality of any of the foregoing (other than an instrumentality
        which is a corporation if all of its activities are subject to tax and, except
        for the Freddie Mac or any successor thereto, a majority of its board of
        directors is not selected by such governmental unit), (ii) any foreign
        government, any international organization, or any agency or instrumentality
        of
        any of the foregoing, (iii) any organization (other than certain farmers’
cooperatives described in Section 521 of the Code) which is exempt from the
        tax
        imposed by Chapter 1 of the Code (including the tax imposed by Section 511
        of
        the Code on unrelated business taxable income), (iv) rural electric and
        telephone cooperatives described in Section 1381(a)(2)(C) of the Code or
        (v) any
        other Person so designated by the Trustee based upon an Opinion of Counsel
        that
        the holding of an ownership interest in a Residual Certificate by such Person
        may cause REMIC I, REMIC II or REMIC III or any Person having an Ownership
        Interest in the Residual Certificate (other than such Person) to incur a
        liability for any federal tax imposed under the Code that would not otherwise
        be
        imposed but for the transfer of an Ownership Interest in a Residual Certificate
        to such Person. The terms “United States,” “State” and “international
        organization” shall have the meanings set forth in Section 7701 of the Code or
        successor provisions.

       

      Distribution
        Account: The trust account or accounts created and maintained pursuant to
        Section 4.04, which shall be denominated “U.S. Bank National Association, as
        Trustee, f/b/o holders of Structured Asset Mortgage Investments II Inc.,
        Prime
        Mortgage Trust, Certificates, Series 2007-3 - Distribution Account.” The
        Distribution Account shall be an Eligible Account.

       

      Distribution
        Account Deposit Date: The Business Day prior to each Distribution
        Date.

       

      Distribution
        Date: The 25th day of any month, beginning in September 2007, or, if such
        25th day is not a Business Day, the immediately following Business
        Day.

       

      Distribution
        Report:  The Asset-Backed Issuer Distribution Report pursuant to
        Section 13 or 15(d) of the Exchange Act.

       

      DTC
        Custodian: U.S. Bank National Association, or its successors in interest as
        custodian for the Depository.

       

      Due
        Date: With respect to each Mortgage Loan, the date in each month on which
        its Scheduled Payment is due if such due date is the first day of a month
        and
        otherwise is deemed to be the first day of the following month or such other
        date specified in the related Servicing Agreement.

       

      Due
        Period: With respect to any Distribution Date and each Mortgage Loan, the
        period commencing on the second day of the month preceding the month in which
        the Distribution Date occurs and ending at the close of business on the first
        day of the month in which the Distribution Date occurs.

       

      EDGAR:
        As defined in Section 3.18.

       

      Eligible
        Account:  Any of (i)
        an account or accounts maintained with a federal or state chartered depository
        institution or trust company, the long-term unsecured debt obligations and
        short-term unsecured debt obligations of which (or, in the case of a depository
        institution or trust company that is the principal subsidiary of a holding
        company, the debt obligations of such holding company, so long as Moody’s is not
        a Rating Agency) are rated by each Rating Agency in one of its two highest
        long-term and its highest short-term rating categories, respectively, at
        the
        time any amounts are held on deposit therein; provided, that following a
        downgrade, withdrawal, or suspension of such institution’s rating as set forth
        above, each account shall promptly (and in any case within not more than
        30
        calendar days) be moved to one or more segregated trust accounts in the trust
        department of such institution, or to an account at another institution that
        complies with the above requirements, or (ii) a trust account or accounts
        maintained with the corporate trust department of a federal or state chartered
        depository institution or trust company having capital and surplus of not
        less
        than $50,000,000, acting in its fiduciary capacity or (iii) any other account
        acceptable to the Rating Agencies, as evidenced in writing. Eligible Accounts
        may bear interest, and may include, if otherwise qualified under this
        definition, accounts maintained with the Trustee. Notwithstanding Section
        11.02,
        this Agreement may be amended to reduce the rating requirements in clause
        (i)
        above, without the consent of any of the Certificateholders, provided that
        the
        Person requesting such amendment obtains a letter from each Rating Agency
        stating that such amendment would not result in the downgrading or withdrawal
        of
        the respective ratings then assigned to the Certificates.

       

      EMC:
        EMC Mortgage Corporation.

       

      EMC
        Flow Loans: The Mortgage Loans purchased by EMC pursuant to a flow loan
        purchase agreement.

       

      EMC
        Servicing Agreement: With respect to the Mortgage Loans serviced by the
        Company, the Servicing Agreement dated as of August 1, 2007, between the
        Depositor and the Company, attached hereto as Exhibit I-2 and as modified
        by the
        related Assignment Agreement.

       

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

       

      ES
        Trust:  The separate trust created under this Agreement pursuant
        to Section 5.09.

       

      Euroclear:
        Euroclear Clearance System, Société Cooperative, a Belgium cooperative
        cooperation.

       

      Euroclear
        Operator: Euroclear Bank S.A./N.V., as operator of the Euroclear
        system.

       

      Event
        of Default: An event of default described in Section 8.01.

       

      Excess
        Liquidation Proceeds: To the extent that such amount is not required by law
        to be paid to the related Mortgagor, the amount, if any, by which Liquidation
        Proceeds with respect to a Liquidated Mortgage Loan exceed the sum of (i)
        the
        Outstanding Principal Balance of such Mortgage Loan and accrued but unpaid
        interest at the related Mortgage Interest Rate through the last day of the
        month
        in which the related Liquidation Date occurs, plus (ii) related Liquidation
        Expenses.

       

      Exchange
        Act:  Securities Exchange Act of 1934, as amended.

       

      Exchange
        Act Reports:  Any reports required to be filed pursuant to Section
        3.18 of this Agreement.

       

      Exchangeable
        Certificates:  The Class I-A-1 Certificates.

       

      Exchanged
        Certificates:  Any of the Class I-A-3, Class I-A-4, Class I-A-5,
        Class I-A-6 and Class I-A-7 Certificates.

       

      Fannie
        Mae: Fannie Mae (formally, Federal National Mortgage Association), or any
        successor thereto.

       

      Final
        Certification: The certification substantially in the form of Exhibit Three
        to the Custodial Agreement.

       

      Fiscal
        Quarter:  December 1 to February 29 (or the last day in such
        month), March 1 to May 31, June 1 to August 31, or September 1 to November
        30,
        as applicable.

       

      Fitch:
        Fitch, Inc. or its successor in interest.

       

      Form
        8-K Disclosure Information: As defined in Section
        3.18(a)(ii)(A).

       

      Form
        10-K Filing Deadline: As defined in Section 3.18.

       

      Fractional
        Undivided Interest: With respect to any Class of Certificates, the
        fractional undivided interest evidenced by any Certificate of such Class,
        the
        numerator of which is the Current Principal Amount, or Notional Amount in
        the
        case of the Interest Only Certificates, of such Certificate and the denominator
        of which is the Current Principal Amount, or Notional Amount in the case
        of the
        Interest Only Certificates, of such Class. With respect to the Certificates
        in
        the aggregate, the fractional undivided interest evidenced by (i) the Residual
        Certificates will be deemed to equal 0.25%, (ii) each Class of Interest Only
        Certificates will be deemed to equal 1.0% multiplied by a fraction, the
        numerator of which is the Notional Amount of such Certificate and the
        denominator of which is the aggregate Notional Amount of its respective Class
        and (iii) a Certificate of any other Class will be deemed to equal the
        fractional undivided interest remaining after taking into account clauses
        (i)
        and (ii) multiplied by a fraction, the numerator of which is the Current
        Principal Amount of such Certificate and the denominator of which is the
        aggregate Current Principal Amount of all the Certificates; provided, however,
        the percentage in clause (iii) above shall be increased by 1.0% upon the
        retirement of each Class of Interest Only Certificates.  Matters which
        solely affect the Group I Certificates or Group II Certificates will be voted
        on
        solely by the related Classes.  Voting rights of Exchangeable
        Certificates will be allocated among Exchanged Certificates received in exchange
        for such Exchangeable Certificates, pro rata, in accordance with their
        respective aggregate Current Principal Amounts.

       

      Freddie
        Mac: Freddie Mac, formerly the Federal Home Loan Mortgage Corporation, or
        any successor thereto.

       

      Global
        Certificate: Any Non-Offered Certificate registered in the name of the
        Depository or its nominee, beneficial interests in which are reflected on
        the
        books of the Depository or on the books of a Person maintaining an account
        with
        such Depository (directly or as an indirect participant in accordance with
        the
        rules of such depository).

       

      Group
        I Allocable Share:  With respect to any Class of Group I
        Subordinate Certificates on any Distribution Date will generally equal such
        Class’s pro rata share (based on the Current Principal Amount of each Class
        entitled thereto) of the sum of each of the components of the definition
        of
        Group I Subordinate Optimal Principal Amount; provided, that except as described
        in the succeeding sentence, no Class of Group I Subordinate Certificates
        (other
        than the Class of Group I Subordinate Certificates outstanding with the lowest
        numerical designation) shall be entitled on any Distribution Date to receive
        distributions pursuant to clauses (2), (3) and (5) of the definition of Group
        I
        Subordinate Optimal Principal Amount unless the Class Prepayment Distribution
        Trigger for the related Class is satisfied for such Distribution Date. If
        on any
        Distribution Date the Current Principal Amount of any Class of Group I
        Subordinate Certificates for which the related Class Prepayment Distribution
        Trigger was satisfied on such Distribution Date is reduced to zero, any amounts
        distributable to such Class pursuant to clauses (2), (3) and (5) of the
        definition of Group I Subordinate Optimal Principal Amount, to the extent
        of
        such Class’s remaining Group I Allocable Share, shall be distributed to the
        remaining Classes of Group I Subordinate Certificates in reduction of their
        respective Current Principal Amounts, sequentially, in the order of their
        numerical Class designations.

       

      Group
        I Available Funds:  For any Distribution Date and Loan Group I, an
        amount which generally includes, (1) all previously undistributed payments
        on
        account of principal (including the principal portion of Monthly Payments,
        Principal Prepayments and the principal amount of Net Liquidation Proceeds)
        with
        regard to the Group I Mortgage Loans, less any Capitalization Reimbursement
        Amount to the extent such amount relates to any Mortgage Loan in the related
        Loan Group, and all previously undistributed payments on account of interest
        received after the Cut-Off Date and on or prior to the related Determination
        Date and any proceeds from a repurchase of a Group I Mortgage Loan or from
        an
        optional termination relating to Loan Group I, (2) any Monthly Advances made
        by
        the Master Servicer or a Servicer for such Distribution Date in respect of
        the
        Group I Mortgage Loans, (3) any Compensating Interest made by a Servicer
        for
        such Distribution Date in respect of the Group I Mortgage Loans and (4) any
        amounts reimbursed by the Master Servicer or the Trustee in connection with
        losses on certain eligible investments, net of all fees payable to, and amounts
        reimbursable to, the Servicers, the Master Servicer, the Trustee and the
        Custodian as provided in this Agreement and the Custodial Agreement and
        investment earnings on amounts on deposit in the Master Servicer Collection
        Account and the Distribution Account in connection with funds attributable
        to
        Loan Group I.

       

      Group
        I Certificates:  The Group I Offered Certificates and Group I
        Non-Offered Subordinate Certificates.

       

      Group
        I Cross-Over Date:  The Distribution Date on which the Current
        Principal Amounts of the Group I Subordinate Certificates are reduced to
        zero.

       

      Group
        I Loss Allocation Limit: The meaning specified in Subsection 6.03(a)(v)
        hereof.

       

      Group
        I Mortgage Loans: The Mortgage Loans included as part of Loan Group I on the
        Mortgage Loan Schedule.

       

      Group
        I Non-Offered Subordinate Certificates: The Class I-B-4, Class I-B-5 and
        Class I-B-6 Certificates.

       

      Group
        I Offered Certificates:  The Group I Senior Certificates and Group
        I Offered Subordinate Certificates.

       

      Group
        I Offered Subordinate Certificates: The Class I-B-1, Class I-B-2 and Class
        I-B-3 Certificates.

       

      Group
        I Original Subordinate Principal Balance: The aggregate Current Principal
        Amount of the Group I Subordinate Certificates as of the Closing
        Date.

       

      Group
        I Senior Certificates: The Class I-A-1, Class I-A-2, Class I-A-3, Class
        I-A-4, Class I-A-5, Class I-A-6, Class I-A-7, Class I-X, Class I-PO, Class
        I-R-1
        and Class I-R-2 Certificates.

       

      Group
        I Senior Optimal Principal Amount: With respect to each of Group I Senior Certificates (other
        than the
        Class I-PO Certificates and Class I-X Certificates) and each Distribution
        Date, an amount equal to the sum of the following:

       

       (1)           the
        Group I Senior Percentage of the related Non-PO Percentage of the principal
        portion of all Scheduled Payments due on the Group I Mortgage Loans on the
        related Due Date, as specified in the amortization schedule at the time
        applicable thereto (after adjustment for previous Principal Prepayments but
        before any adjustments to such amortization schedule by reason of any bankruptcy
        or similar proceeding or any moratorium or similar waiver or grace
        period);

       

      (2)           the
        Group I Senior Prepayment Percentage of the related Non-PO Percentage of
        the
        Scheduled Principal Balance of each Group I Mortgage Loan which was the subject
        of a Principal Prepayment in full received by the Servicers during the
        applicable Prepayment Period;

       

      (3)           the
        Group I Senior Prepayment Percentage of the related Non-PO Percentage of
        all
        Principal Prepayments in part received by the Servicers during the applicable
        Prepayment Period with respect to each Group I Mortgage Loan;

       

      (4)           the
        lesser of (a) the applicable Group I Senior Prepayment Percentage of the
        related
        Non-PO Percentage of the sum of (i) all Net Liquidation Proceeds allocable
        to
        principal received in respect of each Group I Mortgage Loan which became
        a
        Liquidated Mortgage Loan during the calendar month immediately preceding
        such
        Distribution Date (other than Group I Mortgage Loans described in the
        immediately following clause (ii)) and all Subsequent Recoveries received
        in
        respect of each Liquidated Mortgage Loan during the calendar month immediately
        preceding such Distribution Date and (ii) the Scheduled Principal Balance
        of
        each such Group I Mortgage Loan purchased by an insurer from the Trustee
        during
        the related Prepayment Period pursuant to the related Primary Mortgage Insurance
        Policy, if any, or otherwise; and (b) the Group I Senior Percentage of the
        related Non-PO Percentage of the sum of (i) the Scheduled Principal Balance
        of
        each Group I Mortgage Loan which became a Liquidated Mortgage Loan during
        the
        calendar month immediately preceding such Distribution Date (other than the
        Group I Mortgage Loans described in the immediately following clause (ii))
        and
        all Subsequent Recoveries received in respect of each Liquidated Mortgage
        Loan
        during the calendar month immediately preceding such Distribution Date and
        (ii)
        the Scheduled Principal Balance of each such Group I Mortgage Loan that was
        purchased by an insurer from the Trustee during the related Prepayment Period
        pursuant to the related Primary Mortgage Insurance Policy, if any or otherwise;
        and

       

      (5)           the
        Group I Senior Prepayment Percentage of the related Non-PO Percentage of
        the sum
        of (a) the Scheduled Principal Balance of each Group I Mortgage Loan which
        was
        repurchased by the Issuing Entity in connection with such Distribution Date
        and
        (b) the excess, if any, of the Scheduled Principal Balance of each Group
        I
        Mortgage Loan that has been replaced by the Issuing Entity with a substitute
        Group I Mortgage Loan pursuant to the Mortgage Loan Purchase Agreement in
        connection with such Distribution Date over the Scheduled Principal Balance
        of
        each such substitute Group I Mortgage Loan; minus

       

      (6)           the
        related Capitalization Reimbursement Amount for such distribution date, other
        than the Class I-PO Percentage of any portion of that amount related to each
        Discount Mortgage Loan in Loan Group I multiplied by a fraction, the numerator
        of which is the Group I Senior Optimal Principal Amount, without giving effect
        to this clause (6), and the denominator of which is the sum of the principal
        distribution amounts for all Classes of related Certificates, other than
        the
        Class I-PO Certificates, payable from the Group I Available Funds without
        giving
        effect to any reductions for the related Capitalization Reimbursement
        Amount.

       

      Group
        I Senior Percentage: The lesser of (a) 100% and (b) the percentage (carried
        to six places rounded up) obtained by dividing the Current Principal Amount
        of
        the Group I Senior Certificates (other than any Class I-PO Certificates),
        immediately prior to such Distribution Date, by the aggregate Scheduled
        Principal Balance of the Group I Mortgage Loans (other than the related PO
        Percentage thereof with respect to the related Discount Mortgage Loans) as
        of
        the beginning of the related Due Period. The initial Group I Senior Percentage
        for the Senior Certificates will be approximately 94.818860%.

       

      Group
        I Senior Prepayment Percentage: The Senior Prepayment Percentage for the
        Group I on any Distribution Date occurring during the periods set forth below
        will be as follows:

       

      
        	
                
                  Period
                    (dates inclusive)

                

              	 	
                
                  Group
                    I Senior Prepayment Percentage

                

              
	
                September
                  25, 2007 – August 25, 2014

              	 	
                100%

              
	
                September
                  25, 2014 – August 25, 2015

              	 	
                Group
                  I Senior Percentage for the Group I Certificates plus 70% of the
                  Group I
                  Subordinate Percentage

              
	
                September
                  25, 2015 – August 25, 2016

              	 	
                Group
                  I Senior Percentage for the Group I Certificates plus 60% of the
                  Group I
                  Subordinate Percentage

              
	
                September
                  25, 2016 – August 25, 2017

              	 	
                Group
                  I Senior Percentage for the Group I Certificates plus 40% of the
                  Group I
                  Subordinate Percentage

              
	
                September
                  25, 2017 – August 25, 2018

              	 	
                Group
                  I Senior Percentage for the Group I Certificates plus 20% of the
                  Group I
                  Subordinate Percentage

              
	
                September
                  25, 2018 and thereafter

              	 	
                Group
                  I Senior Percentage for the Group I
                  Certificates

              

      

      

      Any
        scheduled reduction to the Group I Senior Prepayment Percentage for the Group
        I
        Senior Certificates shall not be made as of any Distribution Date unless,
        as of
        the last day of the month preceding such Distribution Date (1) the aggregate
        Scheduled Principal Balance of the Group I Mortgage Loans delinquent 60 days
        or
        more (including for this purpose any such Group I Mortgage Loans in foreclosure
        and such Group I Mortgage Loans with respect to which the related Mortgaged
        Property has been acquired by the Trust and borrowers in bankruptcy) averaged
        over the last six months, as a percentage of the aggregate Current Principal
        Amount of the Group I Subordinate Certificates does not exceed 50% and (2)
        cumulative Realized Losses on the Group I Mortgage Loans do not exceed (a)
        30%
        of the aggregate Current Principal Amount of the Group I Original Subordinate
        Principal Balance if such Distribution Date occurs between and including
        September 2014 and August 2015, (b) 35% of the Group I Original Subordinate
        Principal Balance or if such Distribution Date occurs between and including
        September 2015 and August 2016, (c) 40% of the Group I Original Subordinate
        Principal Balance if such Distribution Date occurs between and including
        September 2016 and August 2017, (d) 45% of the Group I Original Subordinate
        Principal Balance if such Distribution Date occurs between and including
        September 2017 and August 2018, and (e) 50% of the Group I Original Subordinate
        Principal Balance if such Distribution Date occurs during or after September
        2018.

       

      Notwithstanding
        the foregoing, if on any Distribution Date, the percentage, the numerator
        of
        which is the aggregate Current Principal Amount of the Group I Senior
        Certificates (other than the Class I-PO Certificates) immediately preceding
        such
        Distribution Date, and the denominator of which is the Scheduled Principal
        Balance of the Group I Mortgage Loans (other than the I-PO Percentage thereof
        with respect to the related Discount Mortgage Loans) as of the beginning
        of the
        related Due Period, exceeds such percentage as of the Cut-off Date, then
        the
        Group I Senior Prepayment Percentage with respect to the Group I Senior
        Certificates (other than the Class I-PO Certificates) for such Distribution
        Date
        will equal 100%.

       

      Group
        I Subordinate Certificate Writedown Amount: With respect to the Group I
        Subordinate Certificates, the amount by which (x) the sum of the Current
        Principal Amounts of the Group I Certificates (after giving effect to the
        distribution of principal and the allocation of Realized Losses in reduction
        of
        the Current Principal Amounts of the Group I Certificates, other than Class
        I-X
        Certificates and Class I-PO Certificates, on such Distribution Date) exceeds
        (y)
        the Scheduled Principal Balances of the Group I Mortgage Loans on the Due
        Date
        related to such Distribution Date.

       

      Group
        I Subordinate Certificates: The Group I Offered Subordinate Certificates and
        Group I Non-Offered Subordinate Certificates.

       

      Group
        I Subordinate Optimal Principal Amount: With respect to the Group I
        Subordinate Certificates and each Distribution Date, an amount equal to the
        sum
        of the following from Loan Group I (but in no event greater than the aggregate
        Current Principal Amount of the Group I Subordinate Certificates immediately
        prior to such Distribution Date):

       

      (i)           the
        Group I Subordinate Percentage of the related Non-PO Percentage of the principal
        portion of all Monthly Payments due on each Group I Mortgage Loan on the
        related
        Due Date, as specified in the amortization schedule at the time applicable
        thereto (after adjustment for previous principal prepayments but before any
        adjustment to such amortization schedule by reason of any bankruptcy or similar
        proceeding or any moratorium or similar waiver or grace period);

       

      (ii)           the
        Group I Subordinate Prepayment Percentage of the related Non-PO Percentage
        of
        the Scheduled Principal Balance of each Group I Mortgage Loan which was the
        subject of a prepayment in full received by the Master Servicer during the
        applicable Prepayment Period;

       

      (iii)           the
        Group I Subordinate Prepayment Percentage of the related Non-PO Percentage
        of
        all partial prepayments of principal received during the applicable Prepayment
        Period for each Group I Mortgage Loan;

       

      (iv)           the
        excess, if any, of (a) the Net Liquidation Proceeds allocable to principal
        received during the prior calendar month in respect of each Liquidated Mortgage
        Loan in Loan Group I over (b) the sum of the amounts distributable to the
        holders of the Group I Senior Certificates pursuant to clause (4) of the
        definition of “Group I Senior Optimal Principal Amount” and “Class I-PO
        Certificate Principal Distribution Amount” on such Distribution
        Date;

       

      (v)           the
        Group I Subordinate Prepayment Percentage of the related Non-PO Percentage
        of
        the sum of (a) the Scheduled Principal Balance of each Group I Mortgage Loan
        which was repurchased by the Seller in connection with such Distribution
        Date
        and (b) the difference, if any, between the Scheduled Principal Balance of
        a
        Group I Mortgage Loan that has been replaced by the Seller with a substitute
        Group I Mortgage Loan pursuant to the Mortgage Loan Purchase Agreement in
        connection with such Distribution Date and the Scheduled Principal Balance
        of
        such substitute Mortgage Loan; and

       

      (vi)           on
        the Distribution Date on which the Current Principal Amounts of the Group
        I
        Senior Certificates (other than the Class I-X Certificates and
        Class I-PO
        Certificates) have all been reduced to zero, 100% of any Principal
        Distribution Amount; minus

       

      (vii)           the
        related Capitalization
        Reimbursement Amount for such distribution date, other than the Class I-PO
        Percentage of any portion of that amount related to each Discount Mortgage
        Loan
        in Loan Group I multiplied by a fraction, the numerator of which is the Group
        I
        Subordinate Optimal Principal Amount, without giving effect to this clause
        (vii), and the denominator of which is the sum of the principal distribution
        amounts for all Classes of related Certificates, other than the Class I-PO
        Certificates, payable from the Group I Available Funds without giving effect
        to
        any reductions for the related Capitalization Reimbursement
        Amount.
         

      

      Group
        I Subordinate Percentage: As of any Distribution Date, 100% minus the Group
        I Senior Percentage for the Group I Senior Certificates.

       

      Group
        I Subordinate Prepayment Percentage: As of any Distribution Date and with
        respect to Loan Group I, 100% minus the Group I Senior Prepayment Percentage,
        except that on any Distribution Date after the Current Principal Amount of
        each
        Class of Group I Senior Certificates has each been reduced to zero, the Group
        I
        Subordinate Prepayment Percentage for the Group I Subordinate Certificates
        will
        equal 100%.

       

      Group
        II Allocable Share:  With respect to any Class of Group II
        Subordinate Certificates on any Distribution Date will generally equal such
        Class’s pro rata share (based on the Current Principal Amount of each Class
        entitled thereto) of the sum of each of the components of the definition
        of
        Group II Subordinate Optimal Principal Amount; provided, that except as
        described in the succeeding sentence, no Class of Group II Subordinate
        Certificates (other than the Class of Group II Subordinate Certificates
        outstanding with the lowest numerical designation) shall be entitled on any
        Distribution Date to receive distributions pursuant to clauses (2), (3) and
        (5)
        of the definition of Group II Subordinate Optimal Principal Amount unless
        the
        Class Prepayment Distribution Trigger for the related Class is satisfied
        for
        such Distribution Date. If on any Distribution Date the Current Principal
        Amount
        of any Class of Group II Subordinate Certificates for which the related Class
        Prepayment Distribution Trigger was satisfied on such Distribution Date is
        reduced to zero, any amounts distributable to such Class pursuant to clauses
        (2), (3) and (5) of the definition of Group II Subordinate Optimal Principal
        Amount, to the extent of such Class’s remaining Group II Allocable Share, shall
        be distributed to the remaining Classes of Group II Subordinate Certificates
        in
        reduction of their respective Current Principal Amounts, sequentially, in
        the
        order of their numerical Class designations.

       

      Group
        II Available Funds:  For any Distribution Date and Loan Group II,
        an amount which generally includes, (1) all previously undistributed payments
        on
        account of principal (including the principal portion of Monthly Payments,
        Principal Prepayments and the principal amount of Net Liquidation Proceeds)
        with
        regard to the Group II Mortgage Loans, less any Capitalization Reimbursement
        Amount to the extent such amount relates to any Mortgage Loan in the related
        Loan Group, and all previously undistributed payments on account of interest
        received after the Cut-Off Date and on or prior to the related Determination
        Date and any proceeds from a repurchase of a Group II Mortgage Loan from
        an
        optional termination relating to Loan Group II, (2) any Monthly Advances
        made by
        the Master Servicer or a Servicer for such Distribution Date in respect of
        the
        Group II Mortgage Loans, (3) any Compensating Interest made by a Servicer
        for
        such Distribution Date in respect of the Group II Mortgage Loans and (4)
        any
        amounts reimbursed by the Master Servicer or the Trustee in connection with
        losses on certain eligible investments, net of all fees payable to, and amounts
        reimbursable to, the Servicers, the Master Servicer, the Trustee and the
        Custodian as provided in this Agreement and the Custodial Agreement and
        investment earnings on amounts on deposit in the Master Servicer Collection
        Account and the Distribution Account in connection with funds attributable
        to
        Loan Group II.

       

      Group
        II Certificates:  The Group II Offered Certificates and Group II
        Non-Offered Certificates.

       

      Group
        II Cross-Over Date:  The Distribution Date on which the Current
        Principal Amounts of the Group II Subordinate Certificates are reduced to
        zero.

       

      Group
        II Loss Allocation Limit: The meaning specified in Subsection 6.03(a)(v)
        hereof.

       

      Group
        II Mortgage Loans: The Mortgage Loans included as part of Loan Group II on
        the Mortgage Loan Schedule.

       

      Group
        II Offered Certificates:  The Group II Senior Certificates and
        Group II Offered Subordinate Certificates.

       

      Group
        II Offered Subordinate Certificates: The Class II-B-1, Class II-B-2 and
        Class II-B-3 Certificates.

       

      Group
        II Original Subordinate Principal Balance: The aggregate Current Principal
        Amount of the Group II Subordinate Certificates as of the Closing
        Date.

       

      Group
        II Senior Certificates: The Class II-A-1, Class II-A-2, Class II-X, Class
        II-R and Class II-PO.

       

      Group
        II Senior Optimal Principal Distribution Amount: With respect to each of
        Group II Senior Certificates
        (other than the Class II-PO Certificates and Class II-X Certificates) and
        each Distribution Date, an amount equal to the sum of the
        following:

       

      (1)           the
        Group II Senior Percentage of the related Non-PO Percentage of the principal
        portion of all Scheduled Payments due on the Group II Mortgage Loans on the
        related Due Date, as specified in the amortization schedule at the time
        applicable thereto (after adjustment for previous Principal Prepayments but
        before any adjustments to such amortization schedule by reason of any bankruptcy
        or similar proceeding or any moratorium or similar waiver or grace
        period);

       

      (2)           the
        Group II Senior Prepayment Percentage of the related Non-PO Percentage of
        the
        Scheduled Principal Balance of each Group II Mortgage Loan which was the
        subject
        of a Principal Prepayment in full received by the Servicers during the
        applicable Prepayment Period;

       

      (3)           the
        Group II Senior Prepayment Percentage of the related Non-PO Percentage of
        all
        Principal Prepayments in part received by the Servicers during the applicable
        Prepayment Period with respect to each Group II Mortgage Loan;

       

      (4)           the
        lesser of (a) the applicable Group II Senior Prepayment Percentage of the
        related Non-PO Percentage of the sum of (i) all Net Liquidation Proceeds
        allocable to principal received in respect of each Group II Mortgage Loan
        which
        became a Liquidated Mortgage Loan during the calendar month immediately
        preceding such Distribution Date (other than Group II Mortgage Loans described
        in the immediately following clause (ii)) and all Subsequent Recoveries received
        in respect of each Liquidated Mortgage Loan during the calendar month
        immediately preceding such Distribution Date and (ii) the Scheduled Principal
        Balance of each such Group II Mortgage Loan purchased by an insurer from
        the
        Trustee during the related Prepayment Period pursuant to the related Primary
        Mortgage Insurance Policy, if any, or otherwise; and (b) the Group II Senior
        Percentage of the related Non-PO Percentage of the sum of (i) the Scheduled
        Principal Balance of each Group II Mortgage Loan which became a Liquidated
        Mortgage Loan during the calendar month immediately preceding such Distribution
        Date (other than the Group II Mortgage Loans described in the immediately
        following clause (ii)) and all Subsequent Recoveries received in respect
        of each
        Liquidated Mortgage Loan during the calendar month immediately preceding
        such
        Distribution Date and (ii) the Scheduled Principal Balance of each such Group
        II
        Mortgage Loan that was purchased by an insurer from the Trustee during the
        related Prepayment Period pursuant to the related Primary Mortgage Insurance
        Policy, if any or otherwise; and

       

      (5)           the
        Group II Senior Prepayment Percentage of the related Non-PO Percentage of
        the
        sum of (a) the Scheduled Principal Balance of each Group II Mortgage Loan
        which
        was repurchased by the Issuing Entity in connection with such Distribution
        Date
        and (b) the excess, if any, of the Scheduled Principal Balance of each Group
        II
        Mortgage Loan that has been replaced by the Issuing Entity with a substitute
        Group II Mortgage Loan pursuant to the Mortgage Loan Purchase Agreement in
        connection with such Distribution Date over the Scheduled Principal Balance
        of
        each such substitute Group II Mortgage Loan; minus

       

      (6)           the
        related Capitalization Reimbursement Amount for such distribution date, other
        than the Class II-PO Percentage of any portion of that amount related to
        each
        Discount Mortgage Loan in Loan Group II multiplied by a fraction, the numerator
        of which is the Group II Senior Optimal Principal Amount, without giving
        effect
        to this clause (6), and the denominator of which is the sum of the principal
        distribution amounts for all Classes of related Certificates, other than
        the
        Class II-PO Certificates, payable from the Group II Available Funds without
        giving effect to any reductions for the related Capitalization Reimbursement
        Amount.

       

      Group
        II Senior Percentage: The lesser of (a) 100% and (b) the percentage (carried
        to six places rounded up) obtained by dividing the Current Principal Amount
        of
        the Group II Senior Certificates (other than any Class II-PO Certificates),
        immediately prior to such Distribution Date, by the aggregate Scheduled
        Principal Balance of the Group II Mortgage Loans (other than the related
        PO
        Percentage thereof with respect to the related Discount Mortgage Loans) as
        of
        the beginning of the related Due Period. The initial Group II Senior Percentage
        for the Senior Certificates will be approximately 93.849533%.

       

      Group
        II Senior Prepayment Percentage: The Senior Prepayment Percentage for the
        Group II on any Distribution Date occurring during the periods set forth
        below
        will be as follows:

       

      
        	
                
                  Period
                    (dates inclusive)

                

              	 	
                
                  Group
                    II Senior Prepayment Percentage

                

              
	
                September
                  25, 2007 – August 25, 2012

              	 	
                100%

              
	
                September
                  25, 2012 – August 25, 2013

              	 	
                Group
                  II Senior Percentage for the Group II Certificates plus 70% of
                  the Group
                  II Subordinate Percentage

              
	
                September
                  25, 2013 – August 25, 2014

              	 	
                Group
                  II Senior Percentage for the Group II Certificates plus 60% of
                  the Group
                  II Subordinate Percentage

              
	
                September
                  25, 2014 – August 25, 2015

              	 	
                Group
                  II Senior Percentage for the Group II Certificates plus 40% of
                  the Group
                  II Subordinate Percentage

              
	
                September
                  25, 2015 – August 25, 2016

              	 	
                Group
                  II Senior Percentage for the Group II Certificates plus 20% of
                  the Group
                  II Subordinate Percentage

              
	
                September
                  25, 2016 and thereafter

              	 	
                Group
                  II Senior Percentage for the Group II
                  Certificate

              

      

      

      Any
        scheduled reduction to the Group II Senior Prepayment Percentage for the
        Group
        II Senior Certificates shall not be made as of any Distribution Date unless,
        as
        of the last day of the month preceding such Distribution Date (1) the aggregate
        Scheduled Principal Balance of the Group II Mortgage Loans delinquent 60
        days or
        more (including for this purpose any such Group II Mortgage Loans in foreclosure
        and such Group II Mortgage Loans with respect to which the related Mortgaged
        Property has been acquired by the Trust and borrowers in bankruptcy) averaged
        over the last six months, as a percentage of the aggregate Current Principal
        Amount of the Group II Subordinate Certificates does not exceed 50% and (2)
        cumulative Realized Losses on the Group II Mortgage Loans do not exceed (a)
        30%
        of the aggregate Current Principal Amount of the Group II Original Subordinate
        Principal Balance if such Distribution Date occurs between and including
        September 2012 and August 2013, (b) 35% of the Group II Original Subordinate
        Principal Balance or if such Distribution Date occurs between and including
        September 2013 and August 2014, (c) 40% of the Group II Original Subordinate
        Principal Balance if such Distribution Date occurs between and including
        September 2014 and August 2015, (d) 45% of the Group II Original Subordinate
        Principal Balance if such Distribution Date occurs between and including
        September 2015 and August 2016, and (e) 50% of the Group II Original Subordinate
        Principal Balance if such Distribution Date occurs during or after September
        2016.

       

      Notwithstanding
        the foregoing, if on any Distribution Date, the percentage, the numerator
        of
        which is the aggregate Current Principal Amount of the Group II Senior
        Certificates (other than the Class II-PO Certificates) immediately preceding
        such Distribution Date, and the denominator of which is the Scheduled Principal
        Balance of the Group II Mortgage Loans (other than the II-PO Percentage thereof
        with respect to the related Discount Mortgage Loans) as of the beginning
        of the
        related Due Period, exceeds such percentage as of the Cut-off Date, then
        the
        Group II Senior Prepayment Percentage with respect to the Group II Senior
        Certificates (other than the Class II-PO Certificates) for such Distribution
        Date will equal 100%.

       

      Group
        II Subordinate Certificate Writedown Amount: With respect to the Group II
        Subordinate Certificates, the amount by which (x) the sum of the Current
        Principal Amounts of the Group II Certificates (after giving effect to the
        distribution of principal and the allocation of Realized Losses in reduction
        of
        the Current Principal Amounts of the Group II Certificates, other than the
        Class
        II-X Certificates and Class II-PO Certificates, on such Distribution Date)
        exceeds (y) the Scheduled Principal Balances of the Group II Mortgage Loans
        on
        the Due Date related to such Distribution Date.

       

      Group
        II Subordinate Certificates: The Group II Offered Subordinate Certificates
        and Group II Non-Offered Subordinate Certificates.

       

      Group
        II Subordinate Non-Offered Certificates: The Class II-B-4, Class II-B-5 and
        Class II-B-6 Certificates.

       

      Group
        II Subordinate Optimal Principal Amount: With respect to the Group II
        Subordinate Certificates and each Distribution Date, an amount equal to the
        sum
        of the following from Loan Group II (but in no event greater than the aggregate
        Current Principal Amount of the Group II Subordinate Certificates immediately
        prior to such Distribution Date):

       

      (i)           the
        Group II Subordinate Percentage of the related Non-PO Percentage of the
        principal portion of all Monthly Payments due on each Group II Mortgage Loan
        on
        the related Due Date, as specified in the amortization schedule at the time
        applicable thereto (after adjustment for previous principal prepayments but
        before any adjustment to such amortization schedule by reason of any bankruptcy
        or similar proceeding or any moratorium or similar waiver or grace
        period);

       

      (ii)           the
        Group II Subordinate Prepayment Percentage of the related Non-PO Percentage
        of
        the Scheduled Principal Balance of each Group II Mortgage Loan which was
        the
        subject of a prepayment in full received by the Master Servicer during the
        applicable Prepayment Period;

       

      (iii)           the
        Group II Subordinate Prepayment Percentage of the related Non-PO Percentage
        of
        all partial prepayments of principal received during the applicable Prepayment
        Period for each Group II Mortgage Loan;

       

      (iv)           the
        excess, if any, of (a) the Net Liquidation Proceeds allocable to principal
        received during the prior calendar month in respect of each Liquidated Mortgage
        Loan in Loan Group II over (b) the sum of the amounts distributable to the
        holders of the Group II Senior Certificates pursuant to clause (4) of the
        definition of “Group II Senior Optimal Principal Distribution Amount” and “Class
        II-PO Certificate Principal Distribution Amount” on such Distribution
        Date;

       

      (v)           the
        Group II Subordinate Prepayment Percentage of the related Non-PO Percentage
        of
        the sum of (a) the Scheduled Principal Balance of each Group II Mortgage
        Loan
        which was repurchased by the Seller in connection with such Distribution
        Date
        and (b) the difference, if any, between the Scheduled Principal Balance of
        a
        Group II Mortgage Loan that has been replaced by the Seller with a substitute
        Group II Mortgage Loan pursuant to the Mortgage Loan Purchase Agreement in
        connection with such Distribution Date and the Scheduled Principal Balance
        of
        such substitute Mortgage Loan; and

       

      (vi)           on
        the Distribution Date on which the Current Principal Amounts of the Group
        II
        Senior Certificates (other than the Class II-X Certificates and
        Class II-PO
        Certificates) have all been reduced to zero, 100% of any Principal
        Distribution Amount; minus

       

      
        (vii)           the
          related Capitalization Reimbursement Amount for such distribution date,
          other
          than the Class II-PO Percentage of any portion of that amount related to
          each
          Discount Mortgage Loan in Loan Group II multiplied by a fraction, the numerator
          of which is the Group II Subordinate Optimal Principal Amount, without
          giving
          effect to this clause (vii), and the denominator of which is the sum of
          the
          principal distribution amounts for all Classes of related Certificates,
          other
          than the Class II-PO Certificates, payable from the Group II Available
          Funds
          without giving effect to any reductions for the related Capitalization
          Reimbursement Amount.

         

      

      Group
        II Subordinate Percentage: As of any Distribution Date, 100% minus the Group
        II Senior Percentage for the Group II Senior Certificates.

       

      Group
        II Subordinate Prepayment Percentage: As of any Distribution Date and with
        respect to Loan Group II, 100% minus the Group II Senior Prepayment Percentage,
        except that on any Distribution Date after the Current Principal Amount of
        each
        Class of Group II Senior Certificates has each been reduced to zero, the
        Group
        II Subordinate Prepayment Percentage for the Group II Subordinate Certificates
        will equal 100%.

       

      Holder:
        The Person in whose name a Certificate is registered in the related Certificate
        Register, except that, subject to Subsections 11.02(b) and 11.05(e), solely
        for
        the purpose of giving any consent pursuant to this Agreement, any Certificate
        registered in the name of the Depositor, the Master Servicer or the Trustee
        or
        any Affiliate thereof shall be deemed not to be outstanding and the Fractional
        Undivided Interest evidenced thereby shall not be taken into account in
        determining whether the requisite percentage of Fractional Undivided Interests
        necessary to effect any such consent has been obtained.

       

      Indemnified
        Persons: The Trustee, the Master Servicer and the Custodian and their
        officers, directors, agents and employees and, with respect to the Trustee,
        any
        separate co-trustee and its officers, directors, agents and
        employees.

       

      Independent:
        When used with respect to any specified Person, this term means that such
        Person
        (a) is in fact independent of the Depositor or the Master Servicer and of
        any
        Affiliate of the Depositor or the Master Servicer, (b) does not have any
        direct
        financial interest or any material indirect financial interest in the Depositor
        or the Master Servicer or any Affiliate of the Depositor or the Master Servicer
        and (c) is not connected with the Depositor or the Master Servicer or any
        Affiliate as an officer, employee, promoter, underwriter, trustee, partner,
        director or person performing similar functions.

       

      Individual
        Certificate: Any Non-Offered Certificate registered in the name of the
        Holder other than the Depository or its nominee.

       

      Initial
        Certification: The certification substantially in the form of Exhibit One to
        the Custodial Agreement.

       

      Institutional
        Accredited Investor: Any Person meeting the requirements of Rule 501(a)(l),
        (2), (3) or (7) of Regulation D under the Securities Act or any entity all
        of
        the equity holders in which come within such paragraphs.

       

      Insurance
        Policy: With respect to any Mortgage Loan, any standard hazard insurance
        policy, flood insurance policy or title insurance policy.

       

      Insurance
        Proceeds: Amounts paid by the insurer under any Insurance Policy covering
        any Mortgage Loan or Mortgaged Property other than amounts required to be
        paid
        over to the Mortgagor pursuant to law or the related Mortgage Note or Security
        Instrument and other than amounts used to repair or restore the Mortgaged
        Property or to reimburse insured expenses.

       

      Interest
        Accrual Period: For each Class of Certificates  (other than the
        Class I-A-3 Certificates and Class I-A-4 Certificates) and for any Distribution
        Date, the calendar month preceding the month in which such Distribution Date
        occurs. For the Class I-A-3 Certificates and the Class I-A-4 and for any
        Distribution Date, the period from and including the preceding Distribution
        Date
        to and including the day prior to the current Distribution Date.  All
        calculations of interest on the Certificates will be made on the basis of
        a
        360-day year consisting of twelve 30-day months.

       

      Interest
        Only Certificates: The Class I-X Certificates and Class II-X
        Certificates.

       

      Interest
        Shortfall: With respect to any Distribution Date and each Mortgage Loan that
        during the related Prepayment Period was the subject of a Principal Prepayment
        or constitutes a Relief Act Mortgage Loan, an amount determined as
        follows:

       

      (A)           Partial
        principal prepayments received during the relevant Prepayment Period: The
        difference between (i) one month’s interest at the applicable Net Mortgage Rate
        on the amount of such prepayment and (ii) the amount of interest for the
        calendar month of such prepayment (adjusted to the applicable Net Mortgage
        Rate)
        received at the time of such prepayment;

       

      (B)           Principal
        prepayments in full received during the relevant Prepayment Period: The
        difference between (i) one month’s interest at the applicable Net Mortgage Rate
        on the Scheduled Principal Balance of such Mortgage Loan immediately prior
        to
        such prepayment and (ii) the amount of interest for the calendar month of
        such
        prepayment (adjusted to the applicable Net Mortgage Rate) received at the
        time
        of such prepayment; and

       

      (C)           As
        to any Relief Act Mortgage Loan, the excess of (i) 30 days’ interest (or, in the
        case of a principal prepayment in full, interest to the date of prepayment)
        on
        the Scheduled Principal Balance thereof (or, in the case of a principal
        prepayment in part, on the amount so prepaid) at the related Net Mortgage
        Rate
        over (ii) 30 days’ interest (or, in the case of a principal prepayment in full,
        interest to the date of prepayment) on such Scheduled Principal Balance (or,
        in
        the case of a Principal Prepayment in part, on the amount so prepaid) at
        the Net
        Mortgage Rate required to be paid by the Mortgagor as limited by application
        of
        the Relief Act.

       

      Interim
        Certification: The certification substantially in the form of Exhibit Two to
        the Custodial Agreement.

       

      Investment
        Letter: The letter to be furnished by each Institutional Accredited Investor
        which purchases any of the Class I-B-4, Class I-B-5, Class I-B-6, Class II-B-4,
        Class II-B-5 or Class II-B-6  Certificates in connection with such
        purchase, substantially in the form set forth as Exhibit F-1
        hereto.

       

      Issuing
        Entity: Prime Mortgage Trust 2007-3.

       

      Lender-Paid
        PMI Rate: With respect to each Mortgage Loan covered by a lender-paid
        primary mortgage insurance policy, the amount payable to the related insurer,
        as
        stated in the Mortgage Loan Schedule.

       

      Liquidated
        Mortgage Loan: Any defaulted Mortgage Loan as to which the related Servicer
        or the Master Servicer has determined that all amounts it expects to recover
        from or on account of such Mortgage Loan have been recovered.

       

      Liquidation
        Date: With respect to any Liquidated Mortgage Loan, the date on which the
        Master Servicer or the related Servicer has certified that such Mortgage
        Loan
        has become a Liquidated Mortgage Loan.

       

      Liquidation
        Expenses: With respect to a Mortgage Loan in liquidation, unreimbursed
        expenses paid or incurred by or for the account of the Master Servicer or
        the
        related Servicer in connection with the liquidation of such Mortgage Loan
        and
        the related Mortgage Property, such expenses including (a) property protection
        expenses, (b) property sales expenses, (c) foreclosure and sale costs, including
        court costs and reasonable attorneys’ fees, and (d) similar expenses reasonably
        paid or incurred in connection with liquidation.

       

      Liquidation
        Proceeds: Amounts, other than Insurance Proceeds, received in connection
        with the partial or complete liquidation of a Mortgage Loan, whether through
        trustee’s sale, foreclosure sale or otherwise, or in connection with any
        condemnation or partial release of a Mortgaged Property and any other proceeds
        received with respect to an REO Property.

       

      Loan
        Group:  Any of Loan Group
        I or Loan
        Group II.

       

      Loan
        Group I:  The Mortgage Loans
        identified as part of Loan Group I on the Mortgage Loan
        Schedule.

       

      Loan
        Group II:  The Mortgage Loans
        identified as part of Loan Group II on the Mortgage Loan
        Schedule.

       

      Loan-to-Value
        Ratio: With respect to any Mortgage Loan, the fraction, expressed as a
        percentage, the numerator of which is the original principal balance of the
        related Mortgage Loan and the denominator of which is the Original Value
        of the
        related Mortgaged Property.

       

      Lockout
        Certificates: The Class I-A-7 Certificates.

       

      Lockout
        Priority Amount:  With respect to any Distribution Date the
        product of (i) the Shift Percentage and (ii) (x) the aggregate of the
        collections described in the definition of Group I Senior Optimal Principal
        Amount for such Distribution Date (without application of the Senior
        Percentage), multiplied by (y) a fraction, the numerator of which is the
        Current
        Principal Amount of the Class I-A-7 Certificates immediately prior to that
        Distribution Date and the denominator of which is the sum of the related
        Non-PO
        Percentages of the Scheduled Principal Balances of the Mortgage Loans in
        Loan
        Group I as of the first day of the related Due Period.

       

      Loss
        Allocation Limit:  Group I Loss Allocation
        Limit or Group II Loss Allocation Limit.

       

      Loss
        Severity Percentage: With respect to any Distribution Date, the percentage
        equivalent of a fraction, the numerator of which is the amount of Realized
        Losses incurred on a Mortgage Loan and the denominator of which is the Scheduled
        Principal Balance of such Mortgage Loan immediately prior to the liquidation
        of
        such Mortgage Loan.

       

      Lost
        Notes: The original Mortgage Notes that have been lost, as indicated on the
        Mortgage Loan Schedule.

       

      Master
        Funding: Master Funding LLC, a Delaware limited liability company, and its
        successors and assigns, in its capacity as the seller of the Master Funding
        Mortgage Loans to the Depositor.

       

      Master
        Funding Mortgage Loans:  The Mortgage Loans identified as such on
        the Mortgage Loan Schedule for which Master Funding is the applicable
        seller.

       

      Master
        Servicer: As of the Closing Date, EMC Mortgage Corporation and, thereafter,
        its respective successors in interest who meet the qualifications of the
        Servicing Agreements and this Agreement.

       

      Master
        Servicing Compensation: For any Distribution Date, any amounts earned on the
        investment of funds on deposit in the Master Servicer Collection
        Account.

       

      Master
        Servicer Collection Account: 
        The trust account or accounts created and maintained pursuant to Section
        4.02, which shall be denominated “EMC Mortgage Corporation, as Master Servicer
        for the benefit of the Trustee on behalf of holders of Structured Asset Mortgage
        Investments II Inc., Prime Mortgage Trust, Mortgage Pass-Through Certificates,
        Series 2007-3 – Master Servicer Collection Account.” The Master Servicer
        Collection Account shall be an Eligible Account.

       

      Master
        Servicer Information: As defined in Section 3.18(c).

       

      Material
        Defect: The meaning specified in Section 2.02(a).

       

      MERS:
        Mortgage Electronic Registration Systems, Inc., a corporation organized and
        existing under the laws of the State of Delaware, or any successor
        thereto.

       

      MERS®
        System: The system of recording transfers of Mortgages electronically
        maintained by MERS.

       

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

       

      Mid
        America: Mid America Bank, fsb.

       

      Mid
        America Assignment Agreement: The Assignment, Assumption and Recognition
        Agreement, dated as of August 31, 2007, by and among EMC, NCMC and the Trustee
        evidencing the assignment of the NCMC Servicing Agreement to the Trust, attached
        hereto as Exhibit J-3.

       

      Mid
        America Servicing Agreement:  The Purchase, Warranties and
        Servicing Agreement, dated as of February 1, 2006, between Assignor and Company
        as amended by Amendment No. 1 to the Purchase, Warranties and Servicing
        Agreement, dated as of February 1, 2006, attached hereto as Exhibit I-3,
        as
        modified by the Mid America Assignment Agreement.

       

      MOM
        Loan: With respect to any Mortgage Loan, MERS acting as the mortgagee of
        such Mortgage Loan, solely as nominee for the originator of such Mortgage
        Loan
        and its successors and assigns, at the origination thereof, or as nominee
        for
        any subsequent assignee of the originator pursuant to an assignment of mortgage
        to MERS.

       

      Monthly
        Advance: An advance of principal or interest required to be made by the
        applicable Servicer pursuant to the related Servicing Agreement or the Master
        Servicer pursuant to Section 6.06.

       

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

       

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

       

      Mortgage
        Interest Rate: The annual rate at which interest accrues from time to time
        on any Mortgage Loan pursuant to the related Mortgage Note, which rate is
        initially equal to the “Mortgage Interest Rate” set forth with respect thereto
        on the Mortgage Loan Schedule.

       

      Mortgage
        Loan: A mortgage loan transferred and assigned to the Trustee pursuant to
        Section 2.01 or Section 2.04 and held as a part of the Trust Fund, as identified
        in the Mortgage Loan Schedule (which shall include, without limitation, each
        related Mortgage Note, Mortgage and Mortgage File and all rights appertaining
        thereto), including a mortgage loan the property securing which has become
        an
        REO Property. Notwithstanding any provision in this Agreement to the contrary,
        in no event shall the term “Mortgage Loan” include any Underlying Mortgage
        Loan.  Any mortgage loan that was intended by the parties hereto to be
        transferred to the Trust Fund as indicated by such Mortgage Loan Schedule
        which
        is in fact not so transferred for any reason including, without limitation,
        a
        breach of the representation contained in Section 2.07(a)(e) hereof, shall
        continue to be a Mortgage Loan hereunder until the Purchase Price with respect
        thereto has been paid to the Trust Fund.

       

      Mortgage
        Loan Purchase Agreement: The Mortgage Loan Purchase Agreement dated as of
        August 31, 2007, between EMC Mortgage Corporation, as a seller, Master Funding
        as a seller and Structured Asset Mortgage Investments II Inc., as purchaser,
        and
        all amendments thereof and supplements thereto, attached as Exhibit
        H.

       

      Mortgage
        Loan Schedule:  The list of Mortgage Loans (as from time to time
        amended to reflect the repurchase or substitute of Mortgage Loans pursuant
        to
        the provisions of this Agreement) transferred to the Trustee as part of the
        Trust Fund and from time to time subject to this Agreement, the initial Mortgage
        Loan Schedule being attached hereto as Exhibit B setting forth the following
        information with respect to each Mortgage Loan:

       

      
        
          	
                  (a)

                	
                  the
                    city, state and zip code of the Mortgaged Property;

                
	
                  (b)

                	
                  the
                    property type;

                
	
                  (c)

                	
                  the
                    Mortgage Interest Rate;

                
	
                  (d)

                	
                  the
                    Servicing Fee Rate;

                
	
                  (e)

                	
                  the
                    Trustee Fee Rate;

                
	
                  (f)

                	
                  the
                    LPMI Fee, if applicable;

                
	
                  (g)

                	
                  [reserved];

                
	
                  (h)

                	
                  the
                    Net Rate;

                
	
                  (i)

                	
                  the
                    maturity date;

                
	
                  (j)

                	
                  the
                    stated original term to maturity;

                
	
                  (k)

                	
                  the
                    stated remaining term to maturity;

                
	
                  (l)

                	
                  the
                    original Principal Balance;

                
	
                  (m)

                	
                  the
                    first payment date;

                
	
                  (n)

                	
                  the
                    principal and interest payment in effect as of the Cut-off
                    Date;

                
	
                  (o)

                	
                  the
                    unpaid Principal Balance as of the Cut-off Date;

                
	
                  (p)

                	
                  the
                    Loan-to-Value Ratio at origination;

                
	
                  (q)

                	
                  the
                    insurer of any Primary Mortgage Insurance Policy;

                
	
                  (r)

                	
                  the
                    MIN with respect to each MOM Loan;

                
	
                  (s)

                	
                  the
                    Gross Margin, if applicable;

                
	
                  (t)

                	
                  the
                    next Adjustment Date, if applicable;

                
	
                  (u)

                	
                  the
                    Maximum Mortgage Rate, if applicable;

                
	
                  (v)

                	
                  the
                    Minimum Mortgage Rate, if applicable;

                
	
                  (w)

                	
                  the
                    Periodic Rate Cap, if applicable;

                
	
                  (x)

                	
                  a
                    code indicating whether the Mortgage Loan is negatively
                    amortizing;

                
	
                  (y)

                	
                  which
                    Mortgage Loans adjust after an initial fixed rate period of one,
                    two,
                    three, five, seven or ten years or any other period;

                
	
                  (z)

                	
                  the
                    Prepayment Charge, if any;

                
	
                  (aa)

                	
                  lien
                    position (e.g., first lien or second lien);

                
	
                  (bb)

                	
                  a
                    code indicating whether the Mortgage Loan has a balloon
                    payment;

                
	
                  (cc)

                	
                  a
                    code indicating whether the Mortgage Loan is an interest-only
                    loan;

                
	
                  (dd)

                	
                  the
                    interest-only term, if applicable;

                
	
                  (ee)

                	
                  the
                    Mortgage Loan Seller; and

                
	
                  (ff)

                	
                  the
                    original amortization term.

                

        

      

       

      Such
        schedule also shall set forth for all of the Mortgage Loans, the total number
        of
        Mortgage Loans, the total of each of the amounts described under (n) and
        (o)
        above, the weighted average by principal balance as of the Cut-off Date of
        each
        of the rates described under (c) through (h) above, and the weighted average
        remaining term to maturity by unpaid principal balance as of the Cut-off
        Date.

       

      Mortgage
        Loan Seller: EMC or Master Funding, as applicable.

       

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

       

      Mortgaged
        Property: Land and improvements securing the indebtedness of a Mortgagor
        under the related Mortgage Loan or, in the case of REO Property, such REO
        Property. In no event, however, shall the term “Mortgaged Property” include any
        mortgaged property or real estate owned property relating to an Underlying
        Mortgage Loan.

       

      Mortgagor:
        The obligor on a Mortgage Note.

       

      NCMC:  National
        City Mortgage Co.

       

      NCMC
        Assignment Agreement:  The Assignment, Assumption and Recognition
        Agreement, dated as of August 31, 2007, by and among EMC, NCMC and the Trustee
        evidencing the assignment of the NCMC Servicing Agreement to the Trust, attached
        hereto as Exhibit J-2.

       

      NCMC
        Servicing Agreement:  The Purchase, Warranties and Servicing
        Agreement, dated as of October 1, 2001, between Assignor and Company as amended
        by Amendment Reg AB to the Purchase, Warranties and Servicing Agreement,
        dated
        as of March 1, 2006, attached hereto as Exhibit I-2, as modified by the NCMC
        Assignment Agreement.

       

      Net
        Interest Shortfall: With respect to any Distribution Date, the Interest
        Shortfall, if any, for such Distribution Date net of Compensating Interest
        Payments made with respect to such Distribution Date.

       

      Net
        Liquidation Proceeds: As to any Liquidated Mortgage Loan, Liquidation
        Proceeds net of (i) Liquidation Expenses which are payable therefrom to the
        related Servicer or the Master Servicer in accordance with the related Servicing
        Agreement or this Agreement and (ii) unreimbursed advances by the related
        Servicer or the Master Servicer and Monthly Advances.

       

      Net
        Mortgage Rate: With respect to each Mortgage Loan, the Mortgage Interest
        Rate in effect from time to time less the sum of (i) the Servicing Fee Rate
        and
        (ii) the Trustee Fee Rate.

       

      Non-Offered
        Subordinate Certificates: The Group I Non-Offered Subordinate Certificates
        and Group II Non-Offered Subordinate Certificates.

       

      Non-PO
        Percentage: With respect to any Group I Mortgage Loan with a Net Mortgage
        Rate less than 6.00% per annum, a fraction, expressed as a percentage, (x)
        the
        numerator of which is equal to the related Net Mortgage Rate, and (y) the
        denominator of which is equal to 6.00% per annum. With respect to any other
        Group I Mortgage Loan, 100%.

       

      With
        respect to any Group II Mortgage Loan with a Net Mortgage Rate less than
        6.00%
        per annum, a fraction, expressed as a percentage, (x) the numerator of which
        is
        equal to the related Net Mortgage Rate, and (y) the denominator of which
        is
        equal to 6.00% per annum.  With respect to any other Group II Mortgage
        Loan, 100%.

       

      Nonrecoverable
        Advance: With respect to any Mortgage Loan, any advance or Monthly Advance
        (i) which was previously made or is proposed to be made by the Master Servicer,
        the Trustee (as successor Master Servicer) or the applicable Servicer and
        (ii)
        which, in the good faith judgment of the Master Servicer, the Trustee or
        the
        applicable Servicer, will not or, in the case of a proposed advance or Monthly
        Advance, would not, be ultimately recoverable by the Master Servicer, the
        Trustee (as successor Master Servicer) or the applicable Servicer from
        Liquidation Proceeds, Insurance Proceeds or future payments on the Mortgage
        Loan
        for which such advance or Monthly Advance was made or is proposed to be
        made.

       

      Notional
        Amount:  The Notional Amount of the Class I-X Certificates, as of
        any date of determination, is equal to the aggregate Scheduled Principal
        Balance
        of the Group I Mortgage Loans.  The Notional Amount of the Class II-X
        Certificates, as of any date of determination, is equal to the aggregate
        Scheduled Principal Balance of the Group II Mortgage Loans. For federal income
        tax purposes, however, the Notional Amount of the Class I-X Certificates
        and the
        Class II-X Certificates are amounts equal to the Uncertificated Notional
        Amounts
        of REMIC I Regular Interest I-X and REMIC II Regular Interest II-X,
        respectively.

       

      Officer’s
        Certificate: A certificate signed by the Chairman of the Board, the Vice
        Chairman of the Board, the President or a Vice President or Assistant Vice
        President or other authorized officer of the Master Servicer, the Depositor,
        EMC, Master Funding or the Servicer, as applicable, and delivered to the
        Trustee, as required by this Agreement.

       

      Opinion
        of Counsel: A written opinion of counsel who is or are acceptable to the
        Trustee or the Master Servicer, as applicable, and who, unless required to
        be
        Independent (an “Opinion of Independent Counsel”), may be internal counsel for
        the Master Servicer or the Depositor.

       

      Original
        Subordinate Principal Balance: The Group I Original Subordinate Principal
        Balance or  Group II Original Subordinate Principal
        Balance.

       

      Original
        Value: The lesser of (i) the Appraised Value or (ii) the sales price of a
        Mortgaged Property at the time of origination of a Mortgage Loan, except
        in
        instances where either clauses (i) or (ii) is unavailable, the other may
        be used
        to determine the Original Value, or if both clauses (i) and (ii) are
        unavailable, Original Value may be determined from other sources reasonably
        acceptable to the Depositor.

       

      Outstanding
        Mortgage Loan: With respect to any Due Date, a Mortgage Loan which, prior to
        such Due Date, was not the subject of a Principal Prepayment in full, did
        not
        become a Liquidated Mortgage Loan and was not purchased or
        replaced.

       

      Outstanding
        Principal Balance: As of the time of any determination, the principal
        balance of a Mortgage Loan remaining to be paid by the Mortgagor, or, in
        the
        case of an REO Property, the principal balance of the related Mortgage Loan
        remaining to be paid by the Mortgagor at the time such property was acquired
        by
        the Trust Fund less any Net Liquidation Proceeds with respect thereto to
        the
        extent applied to principal.

       

      Pass-Through
        Rate: As to each Class of Certificates (other than the Class PO
        Certificates), the rate of interest determined as provided with respect thereto
        in Section 5.01(c). Any monthly calculation of interest at a stated rate
        shall
        be based upon annual interest at such rate divided by twelve.

       

      Permitted
        Investments: At any time, any one or more of the following obligations and
        securities:

       

      (i)           direct
        obligations of, and obligations the timely payment of which are fully guaranteed
        by the United States of America or any agency or instrumentality of the United
        States of America the obligations of which are backed by the full faith and
        credit of the United States of America;

       

      (ii)           (a)
        demand or time deposits, federal funds or bankers’ acceptances issued by any
        depository institution or trust company incorporated under the laws of the
        United States of America or any state thereof (including the Trustee or the
        Master Servicer or its Affiliates acting in its commercial banking capacity)
        and
        subject to supervision and examination by federal and/or state banking
        authorities, provided that the commercial paper and/or the short-term debt
        rating and/or the long-term unsecured debt obligations of such depository
        institution or trust company at the time of such investment or contractual
        commitment providing for such investment have the Applicable Credit Rating
        or
        better from each Rating Agency and (b) any other demand or time deposit or
        certificate of deposit that is fully insured by the Federal Deposit Insurance
        Corporation;

       

      (iii)           repurchase
        obligations with respect to (a) any security described in clause (i) above
        or
        (b) any other security issued or guaranteed by an agency or instrumentality
        of
        the United States of America, the obligations of which are backed by the
        full
        faith and credit of the United States of America, in either case entered
        into
        with a depository institution or trust company (acting as principal) described
        in clause (ii)(a) above where the Trustee or the Master Servicer or its
        Affiliates hold the security therefor;

       

      (iv)           securities
        bearing interest or sold at a discount issued by any corporation (including
        the
        Trustee or the Master Servicer or its Affiliates) incorporated under the
        laws of
        the United States of America or any state thereof that have the Applicable
        Credit Rating or better from each Rating Agency at the time of such investment
        or contractual commitment providing for such investment; provided, however,
        that
        securities issued by any particular corporation will not be Permitted
        Investments to the extent that investments therein will cause the then
        outstanding principal amount of securities issued by such corporation and
        held
        as part of the Trust to exceed 10% of the aggregate Outstanding Principal
        Balances of all the Mortgage Loans and Permitted Investments held as part
        of the
        Trust;

       

      (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 one year after the date of issuance thereof) having the Applicable Credit
        Rating or better from each Rating Agency at the time of such
        investment;

       

      (vi)           a
        Reinvestment Agreement issued by any bank, insurance company or other
        corporation or entity;

       

      (vii)           any
        other demand, money market or time deposit, obligation, security or investment
        as may be acceptable to each Rating Agency as evidenced in writing by each
        Rating Agency to the Trustee or the Master Servicer or its Affiliates;
        and

       

      (viii)         any
        money market or common trust fund having the Applicable Credit Rating or
        better
        from each Rating Agency rating such fund, including any such fund for which
        the
        Trustee or Master Servicer or any affiliate of the Trustee or Master Servicer
        acts as a manager or an advisor; provided, however, that no instrument or
        security shall be a Permitted Investment if such instrument or security
        evidences a right to receive only interest payments with respect to the
        obligations underlying such instrument or if such security provides for payment
        of both principal and interest  with a yield to maturity in excess of
        120% of the yield to maturity at par or if such instrument or security is
        purchased at a price greater than par.

       

      Permitted
        Transferee: Any Person other than a Disqualified Organization or an
“electing large partnership” (as defined by Section 775 of the
        Code).

       

      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: The Residual Certificates and the Non-Offered Subordinate
        Certificates.

       

      PO
        Percentage: With respect to any Discount Mortgage Loan in Loan Group I, a
        fraction expressed as a percentage, (x) the numerator of which is equal to
        6.00%
        minus the related Net Mortgage Rate, and (y) the denominator of which is
        equal
        to 6.00% per annum.  With respect to any Discount Mortgage Loan in
        Loan Group II, a fraction expressed as a percentage, (x) the numerator of
        which
        is equal to 6.00% minus the related Net Mortgage Rate, and (y) the denominator
        of which is equal to 6.00% per annum.

       

      Prepayment
        Charge: With respect to any Mortgage Loan, the charges or premiums, if any,
        due in connection with a full or partial prepayment of such Mortgage Loan
        in
        accordance with the terms thereof.

       

      Prepayment
        Interest Shortfall:  With respect to any Distribution Date, the
        aggregate shortfall, if any, in collections of interest (adjusted to the
        related
        Net Mortgage Rates) on Mortgage Loans resulting from (a) prepayments in full
        received during the related Prepayment Period and (b) the partial prepayments
        received during the related Prepayment Period to the extent applied prior
        to the
        Due Date in the month of the Distribution Date.

       

      Prepayment
        Period: With respect to any Distribution Date and the related Servicer, such
        period as is provided in the related Servicing Agreement.

       

      Primary
        Mortgage Insurance Policy: Any primary mortgage guaranty insurance policy
        issued in connection with a Mortgage Loan which provides compensation to
        a
        Mortgage Note holder in the event of default by the obligor under such Mortgage
        Note or the related Security Instrument, if any or any replacement policy
        therefor through the related Interest Accrual Period for such Class relating
        to
        a Distribution Date.

       

      Principal
        Prepayment: Any payment (whether partial or full) or other recovery of
        principal on a Mortgage Loan which is received in advance of its scheduled
        Due
        Date to the extent that it is not accompanied by an amount as to interest
        representing scheduled interest due on any date or dates in any month or
        months
        subsequent to the month of prepayment, including Insurance Proceeds and
        Repurchase Proceeds, but excluding the principal portion of Net Liquidation
        Proceeds received at the time a Mortgage Loan becomes a Liquidated Mortgage
        Loan.

       

      Principal
        Only Certificates:  The Class I-PO Certificates and Class II-PO
        Certificates.

       

      Protected
        Account: An account established and maintained for the benefit of Holders of
        the Certificates by each Servicer with respect to the related Mortgage Loans
        and
        with respect to REO Property pursuant to the applicable Servicing
        Agreement.  The Protected Account shall be an Eligible
        Account.

       

      Purchase
        Price: With respect to any Mortgage Loan (or any property acquired with
        respect thereto) (x) required to be repurchased by the Seller pursuant to
        the
        Mortgage Loan Purchase Agreement or Article II of this Agreement or (y) that
        the
        Seller has a right to purchase pursuant to Section 3.21 hereof, an amount
        equal
        to the sum of (i)(a) 100% of the Outstanding Principal Balance of such Mortgage
        Loan as of the date of repurchase (or if the related Mortgaged Property was
        acquired with respect thereto, 100% of the Outstanding Principal Balance
        at the
        date of the acquisition), plus (b) accrued but unpaid interest on the
        Outstanding Principal Balance at the related Mortgage Interest Rate, through
        and
        including the last day of the month of repurchase, plus (c) any unreimbursed
        Monthly Advances and Servicing Advances payable to the related Servicer of
        the
        Mortgage Loan or to the Master Servicer and (ii) any costs and damages (if
        any)
        incurred by the Trust in connection with any violation of such Mortgage Loan
        of
        any predatory lending laws.

       

      QIB:
        A Qualified Institutional Buyer as defined in Rule 144A promulgated under
        the
        Securities Act.

       

      Qualified
        Insurer: Any insurance company duly qualified as such under the laws of the
        state or states in which the related Mortgaged Property or Mortgaged Properties
        is or are located, duly authorized and licensed in such state or states to
        transact the type of insurance business in which it is engaged and approved
        as
        an insurer by the Master Servicer, so long as the claims paying ability of
        which
        is acceptable to the Rating Agencies for pass-through certificates having
        the
        same rating as the related Certificates rated by the Rating Agencies as of
        the
        Closing Date.

       

      Rating
        Agencies: With respect to the Certificates, Fitch and S&P.

       

      Realized
        Loss: Any (i) Bankruptcy Loss or (ii) as to any Liquidated Mortgage Loan,
        (x) the Outstanding Principal Balance of such Liquidated Mortgage Loan plus
        accrued and unpaid interest thereon at the Mortgage Interest Rate through
        the
        last day of the month of such liquidation, less (y) the related Net Liquidation
        Proceeds with respect to such Mortgage Loan and the related Mortgage Property.
        With respect to each Mortgage Loan which is the subject of a Servicing
        Modification during the calendar month immediately preceding the related
        Distribution Date, the sum of (a) the total amount of interest and principal
        which is forgiven with respect to the related Mortgage Loan and (b) the amount
        of any Monthly Advances and Servicing Advances, to the extent forgiven, made
        by
        the related Servicer with respect to such Mortgage Loan which are reimbursable
        from the Trust to the related Servicer with respect to that Servicing
        Modification; provided that, the amounts expressed in clause (a) above shall
        not
        include the amounts expressed in clause (b) above.  In addition, to
        the extent the Trustee receives Subsequent Recoveries with respect to any
        Mortgage Loan, the amount of the Realized Loss with respect to that Mortgage
        Loan will be reduced to the extent such recoveries are applied to reduce
        the
        Current Principal Amount of any Class of Certificates on any Distribution
        Date
        in accordance with Section 6.03.  Realized Losses will be based on
        Realized Losses incurred during the month preceding the related Distribution
        Date, other than respect to the first Distribution Date, where Realized Losses
        are incurred during the calendar month in which the Cut-off Date
        occurs.

       

      Record
        Date: With respect to any Distribution Date and each Class of Certificates,
        the close of business on the last Business Day of the month immediately
        preceding the month of such Distribution Date.

       

      Regular
        Certificates:  Any of the Certificates other than the Residual
        Certificates.

       

      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.

       

      Regulation
        S Global Certificates: The Regulation S Temporary Global Certificates and
        the Regulation S Permanent Global Certificates.

       

      Relief
        Act: The Servicemembers Civil Relief Act, formerly known as the Soldiers’
and Sailors’ Civil Relief Act of 1940, as amended, or similar state or local
        law.

       

      Relief
        Act Mortgage Loan: Any Mortgage Loan as to which the Scheduled Payment
        thereof has been reduced due to the application of the Relief Act.

       

      REMIC:
        A real estate mortgage investment conduit, as defined in the Code.

       

      REMIC
        I: That group of assets contained in the Trust Fund related to the Group
        I
        Mortgage Loans designated as a REMIC, including (i) the Group I Mortgage
        Loans,
        (ii) the portion of the Distribution Account related to the Group I Mortgage
        Loans, (iii) any REO Property relating to the Group I Mortgage Loans, (iv)
        the
        rights with respect to any related Servicing Agreement, (v) the rights with
        respect to any related Assignment Agreement and (vii) any proceeds of the
        foregoing.

       

      REMIC
        I Interests: The REMIC I Regular Interests and the Class I-R-1
        Certificates.

       

      REMIC
        I Regular Interests: REMIC I Regular Interests I-A-1-1FL, I-A-1-1INV,
        I-A-1-2FL, I-A-1-2INV, I-A-1-3FL, I-A-1-3INV, I-A-2, I-PO, I-X, I-B-1, I-B-2,
        I-B-3, I-B-4, I-B-5, I-B-6 and I-R-2.

       

      REMIC
        II: That group of assets contained in the Trust Fund related to the Group
        II
        Mortgage Loans designated as a REMIC, including (i) the Group II Mortgage
        Loans,
        (ii) the portion of the Distribution Account related to the Group II Mortgage
        Loans, (iii) any REO Property relating to the Group II Mortgage Loans, (iv)
        the
        rights with respect to any related Servicing Agreement, (v) the rights with
        respect to any related Assignment Agreement and (vii) any proceeds of the
        foregoing.

       

      REMIC
        II Interests: The REMIC II Regular Interests
        and the
        Class II-R Certificates.

       

      REMIC
        II Regular Interests: REMIC II Regular Interests II-A-1, II-A-2, II-PO,
        II-X, II-B-1, II-B-2, II-B-3, II-B-4, II-B-5 and II-B-6.

       

      REMIC
        III: That group of assets contained in the Trust Fund designated as a REMIC
        consisting of the REMIC I Regular Interests and the REMIC II Regular
        Interests.

       

      REMIC
        III Interests: The REMIC III Regular Interests and the Class I-R-2
        Interest.

       

      REMIC
        III Regular Interests: REMIC III Regular Interests I-A-1-1FL, I-A-1-1INV,
        I-A-1-2FL, I-A-1-2INV, I-A-1-3FL, I-A-1-3INV, I-A-2, I-PO, I-X, I-B-1, I-B-2,
        I-B-3, I-B-4, I-B-5, I-B-6, II-A-1, II-A-2, II-PO, II-X, II-B-1, II-B-2,
        II-B-3,
        II-B-4, II-B-5 and II-B-6, the beneficial ownership of any one or more of
        which
        is evidenced by the Corresponding Certificates.

       

      REMIC
        Opinion: An Opinion of Independent Counsel to the effect that the proposed
        action described therein would not, under the REMIC Provisions, (i) cause
        REMIC
        I, REMIC II or REMIC III to fail to qualify as a REMIC while any regular
        interest in such REMIC is outstanding, (ii) result in a tax on prohibited
        transactions with respect to REMIC I, REMIC II or REMIC III or (iii) constitute
        a taxable contribution to REMIC I, REMIC II or REMIC III after the Startup
        Day.

      

      REMIC
        Provisions: The provisions of the federal income tax law relating to REMICs,
        which appear at Sections 860A through 860G of the Code, and related provisions
        and regulations promulgated thereunder, as the foregoing may be in effect
        from
        time to time.

       

      REO
        Property: A Mortgaged Property acquired in the name of the Trustee, for the
        benefit of Certificateholders, by foreclosure or deed-in-lieu of foreclosure
        in
        connection with a defaulted Mortgage Loan.

       

      Reportable
        Event: As defined in Section 3.18.

       

      Repurchase
        Proceeds: The Purchase Price in connection with any repurchase of a Mortgage
        Loan by the Seller and any cash deposit in connection with the substitution
        of a
        Mortgage Loan.

       

      Request
        for Release: A request for release in the form attached hereto as Exhibit
        D.

       

      Required
        Insurance Policy: With respect to any Mortgage Loan, any insurance policy
        which is required to be maintained from time to time under this Agreement
        with
        respect to such Mortgage Loan.

       

      Residual
        Certificates: The Class I-R-1, Class I-R-2 and Class II-R
        Certificates.

       

      Responsible
        Officer: Any officer assigned to the Corporate Trust Office (or any
        successor thereto), including any Vice President, Assistant Vice President,
        Trust Officer, any Assistant Secretary, any trust officer or any other officer
        of the Trustee customarily performing functions similar to those performed
        by
        any of the above designated officers and having direct responsibility for
        the
        administration of this Agreement, and any other officer of the Trustee to
        whom a
        matter arising hereunder may be referred.

       

      Rule
        144A Certificate: The certificate to be furnished by each purchaser of a
        Non-Offered Certificate (which is also a Physical Certificate) which is a
        Qualified Institutional Buyer as defined under Rule 144A promulgated under
        the
        Securities Act, substantially in the form set forth as Exhibit F-2
        hereto.

       

      S&P:
        Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and its
        successors in interest.

       

      Scheduled
        Payment: With respect to any Mortgage Loan and any month, the scheduled
        payment or payments of principal and interest due during such month on such
        Mortgage Loan which either is payable by a Mortgagor in such month under
        the
        related Mortgage Note or, in the case of REO Property, would otherwise have
        been
        payable under the related Mortgage Note.

       

      Scheduled
        Principal: The principal portion of any Scheduled Payment.

       

      Scheduled
        Principal Balance: With respect to any Mortgage Loan on any Distribution
        Date, (i) the sum of (a) the unpaid principal balance of such Mortgage Loan
        as
        of the close of business on the related Due Date (taking account of the
        principal payment to be made on such Due Date and irrespective of any
        delinquency in its payment), as specified in the amortization schedule at
        the
        time relating thereto (before any adjustment to such amortization schedule
        by
        reason of any bankruptcy or similar proceeding occurring after the Cut-off
        Date
        (other than a Deficient Valuation) or any moratorium or similar waiver or
        grace
        period) and (b) the amount by which the Schedule Principal Balance of the
        Mortgage Loan has been increased pursuant to a Servicing Modification, less
        (ii)
        any Principal Prepayments received during or prior to the immediately preceding
        Prepayment Period and less (iii) the principal portion of any Net Liquidation
        Proceeds received during or prior to the immediately preceding calendar month;
        provided that the Scheduled Principal Balance of a Liquidated Mortgage Loan
        is
        zero.

       

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

       

      Securities
        Legend: “THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE
        SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES
        THAT
        THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
        ONLY
        IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY
        (1)
        PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT
        THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN
        THE
        MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
        PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH
        CASE,
        THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE
        ON
        RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE
        144
        UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
        “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE
        501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN
        WHICH
        ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR
        DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT
        BY
        THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT
        AND
        (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE TRUSTEE
        THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE
        SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH
        ALL
        APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE
        JURISDICTION. THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY
        BY, OR
        ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH
        IS
        SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
        AS
        AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
        [in
        the case of a Residual Certificate or a Class I-B-4, Class I-B-5, Class I-B-6,
        Class II-B-4, Class II-B-5 and Class II-B-6 Certificate] UNLESS THE OPINION
        OF
        COUNSEL REQUIRED BY SECTION 5.07 OF THE POOLING AND SERVICING AGREEMENT IS
        PROVIDED [in the case of a Class I-B-4, Class I-B-5, Class I-B-6, Class II-B-4,
        Class II-B-5 and Class II-B-6 Certificate] UNLESS THE TRANSFEREE CERTIFIES
        OR
        REPRESENTS THAT THE PROPOSED TRANSFER AND HOLDING OF A CERTIFICATE AND THE
        SERVICING, MANAGEMENT AND OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL
        NOT
        RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL
        OR
        CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO,
        PROHIBITED TRANSACTION EXEMPTION (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60
        OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES
        ON
        THE PART OF THE DEPOSITOR, THE MASTER SERVICER, ANY SERVICER OR THE TRUSTEE,
        WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE
        OR A
        GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A REPRESENTATION OR AN OPINION
        OF
        COUNSEL TO SUCH EFFECT BY OR ON BEHALF OF AN INSTITUTIONAL ACCREDITED
        INVESTOR.”

       

      Security
        Instrument: A written instrument creating a valid first lien on a Mortgaged
        Property securing a Mortgage Note, which may be any applicable form of mortgage,
        deed of trust, deed to secure debt or security deed, including any riders
        or
        addenda thereto.

       

      Seller:
        EMC Mortgage Corporation, in its capacity as seller of the Mortgage Loans
        to the
        Depositor.

       

      Senior
        Certificates:  Any of the Group I Senior Certificates and Group II
        Senior Certificates.

       

      Servicer:
        Any of EMC, Countrywide, Mid America and NCMC.

       

      Servicer
        Remittance Date: With respect to each Mortgage Loan, the date set forth in
        the related Servicing Agreement.

       

      Servicing
        Agreements: The EMC Servicing Agreement, Countrywide Servicing Agreement,
        Mid America Servicing Agreement and the NCMC Servicing Agreement.

       

      Servicing
        Criteria:  The “servicing criteria” set forth in Item 1122(d) of
        Regulation AB, as such may be amended from time to time, or those Servicing
        Criteria otherwise mutually agreed to by the Seller, the Master Servicer,
        the
        Trustee and the applicable Servicer in response to evolving interpretations
        of
        Regulation AB and incorporated into a revised Exhibit L.

       

      Servicing
        Fee: As to any Mortgage Loan and Distribution Date, an amount equal to the
        product of (i) the Scheduled Principal Balance of such Mortgage Loan as of
        the
        Due Date in the month preceding the month in which such Distribution Date
        occurs
        and (ii) 1/12th
        of the Servicing Fee Rate.

       

      Servicing
        Fee Rate: 0.250% per annum with respect to Loan Group I and a range from
        0.200% to 0.250% per annum with respect to Loan Group II, each as set forth
        in
        the Mortgage Loan Schedule.

       

      Servicing
        Modification:  With respect to any Mortgage Loan that is in
        default or with respect to which default is imminent or as otherwise set
        forth
        in Section 6.06, any modification which is effected by the related Servicer
        in
        accordance with the terms of this Agreement or the related Servicing Agreement
        that results in any changes to the payment terms of the Mortgage
        Loans.

       

      Servicing
        Officer: Any officer of the related Servicer or Master Servicer involved in
        or responsible for the administration and servicing or master servicing,
        as
        applicable, of the Mortgage Loans as to which officer evidence, reasonably
        acceptable to the Trustee, of due authorization of such officer, by such
        Servicer or Master Servicer has been furnished from time to time to the
        Trustee.

       

      Shift
        Percentage: On any Distribution Date occurring during the periods set forth
        below will be as follows:

       

      
        	
                
                  Period
                    (dates inclusive)

                

              	 	
                
                  Shift
                    Percentage

                

              
	
                September
                  25, 2007 – August 25, 2012

              	 	
                0%

              
	
                September
                  25, 2012 – August 25, 2013

              	 	
                30%

              
	
                September
                  25, 2013 – August 25, 2014

              	 	
                40%

              
	
                September
                  25, 2014 – August 25, 2015

              	 	
                60%

              
	
                September
                  25, 2015 - August 25, 2016

              	 	
                80%

              
	
                September
                  25, 2016 and thereafter

              	 	
                100%

              

      

      

       

      Sponsor:  EMC
        Mortgage Corporation,
        in its capacity as sponsor hereunder.

       

      Startup
        Day: August 31, 2007.

       

      Subordinate
        Certificates: The Group I Subordinate Certificates and Group II Subordinate
        Certificates.

       

      Subordinate
        Certificate Writedown Amount: The Group I Subordinate Certificate Writedown
        Amount or Group II Subordinate Certificate Writedown Amount.

       

      Subordinate
        Optimal Principal Amount: The Group I Subordinate Optimal Principal Amount
        or Group II Subordinate Optimal Principal Amount.

       

      Subordinate
        Percentage:  The Group I Subordinate Percentage or Group II
        Subordinate Percentage.

       

      Subordinate
        Prepayment Percentage: The Group I Subordinate Prepayment Percentage or
        Group II Subordinate Prepayment Percentage.

       

      Subsequent
        Recoveries: As of any Distribution Date, amounts received by the related
        Servicer during the preceding calendar month or surplus amounts held by the
        related Servicer to cover estimated expenses (including, but not limited
        to,
        recoveries in respect of the representations and warranties made by the Seller
        pursuant to the Mortgage Loan Purchase Agreement) specifically related to
        a
        Liquidated Mortgage Loan or disposition of an REO Property prior to the
        preceding calendar month that resulted in a Realized Loss, after the liquidation
        or disposition of such Mortgage Loan.

       

      Substitute
        Mortgage Loan: A mortgage loan tendered to the Trustee pursuant to the
        related Servicing Agreement, the Mortgage Loan Purchase Agreement or Section
        2.04 of this Agreement, as applicable, in each case, (i) which has an
        Outstanding Principal Balance not greater nor materially less than the Mortgage
        Loan for which it is to be substituted; (ii) which has a Mortgage Interest
        Rate
        and Net Mortgage Rate not less than, and not materially greater than, such
        Mortgage Loan; (iii) which has a maturity date not materially earlier or
        later
        than such Mortgage Loan and not later than the latest maturity date of any
        Mortgage Loan; (iv) which is of the same property type and occupancy type
        as
        such Mortgage Loan; (v) which has a Loan-to-Value Ratio not greater than
        the
        Loan-to-Value Ratio of such Mortgage Loan; (vi) which is current in payment
        of
        principal and interest as of the date of substitution; and (vii) as to which
        the
        payment terms do not vary in any material respect from the payment terms
        of the
        Mortgage Loan for which it is to be substituted.

       

      Tax
        Administration and Tax Matters Person: The Trustee or any successor thereto
        or assignee thereof shall serve as tax administrator hereunder and as agent
        for
        the Tax Matters Person. The Holder of each Class of Residual Certificates
        shall
        be the Tax Matters Person for the related REMIC, as more particularly set
        forth
        in Section 9.12 hereof.

       

      Termination
        Purchase Price: The price, calculated as set forth in Section 10.01, to be
        paid in connection with the repurchase of the Mortgage Loans pursuant to
        Section
        10.01.

       

      Transferee
        Affidavit: As defined in Section 5.05(a).

       

      Transferor
        Affidavit: As defined in Section 5.05(a).

       

      Trust
        Fund: The corpus of the trust created by this Agreement, consisting of the
        Mortgage Loans and the other assets described in Section 2.01(a).

       

      Trustee:
        U.S. Bank National Association or its successor in interest, or any successor
        trustee appointed as herein provided.

       

      Trustee
        Fee:  As to each Mortgage
        Loan
        and any Distribution Date, an amount equal to the product of (i) the Scheduled
        Principal Balance of such Mortgage Loan as of the Due Date in the month
        preceding the month in which such Distribution Date occurs and (ii)
        1/12th
        of the Trustee Fee
        Rate.

       

      Trustee
        Fee Rate:  0.0145%
        per annum.

       

      Trustee
        Information: As defined in Section 3.18(c).

       

      Uncertificated
        Notional Amount: With respect to REMIC I Regular Interest I-X and REMIC II
        Regular Interest II-X, the aggregate Scheduled Principal Balances of the
        Group I
        Mortgage Loans and the Group II Mortgage Loans, respectively.

       

      Uncertificated
        Principal Balance: With respect to any REMIC I Regular Interest, REMIC II
        Regular Interest, REMIC III Regular Interest or Class I-R-2 Interest as of
        any
        Distribution Date, the initial principal amount of such regular interest
        or
        residual interest as set forth in Sections 5.01(c)(i), (c)(ii) and (c)(iii),
        reduced by (i) all amounts distributed on previous Distribution Dates on
        such
        regular interest or residual interest with respect to principal, and (ii)
        the
        principal portion of all Realized Losses allocated prior to such Distribution
        Date to such regular interest or residual interest, taking account of the
        applicable Loss Allocation Limitation.

       

      Uninsured
        Cause: Any cause of damage to a Mortgaged Property or related REO Property
        such that the complete restoration of such Mortgaged Property or related
        REO
        Property is not fully reimbursable by the hazard insurance policies required
        to
        be maintained pursuant the related Servicing Agreement, without regard to
        whether or not such policy is maintained.

       

      United
        States Person: A citizen or resident of the United States, a corporation or
        partnership (including an entity treated as a corporation or partnership
        for
        federal income tax purposes) created or organized in, or under the laws of,
        the
        United States or any state thereof or the District of Columbia (except, in
        the
        case of a partnership, to the extent provided in Treasury regulations), provided
        that, for purposes solely of the Residual Certificates, no partnership or
        other
        entity treated as a partnership for United States federal income tax purposes
        shall be treated as a United States Person unless all Persons that own an
        interest in such partnership either directly or through any entity that is
        not a
        corporation for United States federal income tax purposes are United States
        Persons, or an estate whose income is subject to United States federal income
        tax regardless of its source, or a trust if a court within the United States
        is
        able to exercise primary supervision over the administration of the trust
        and
        one or more such United States Persons have the authority to control all
        substantial decisions of the trust. To the extent prescribed in regulations
        by
        the Secretary of the Treasury, which have not yet been issued, a trust which
        was
        in existence on August 20, 1996 (other than a trust treated as owned by the
        grantor under subpart E of part I of subchapter J of chapter 1 of the Code)
        and
        which was treated as a United States Person on August 20, 1996 may elect
        to
        continue to be treated as a United States Person notwithstanding the previous
        sentence.

       

      

       

      

      ARTICLE
        II

       

      Conveyance
        of Mortgage Loans;

      Original
        Issuance of Certificates

       

      Section
        2.01                                Conveyance
        of Mortgage Loans to Trustee.

       

      
        (a)           The
          Depositor concurrently with the execution and delivery of this Agreement,
          sells,
          transfers and assigns to the Trust without recourse all its right, title
          and
          interest in and to (i) the Mortgage Loans identified in the Mortgage Loan
          Schedule, including all interest and principal due with respect to the
          Mortgage
          Loans after the Cut-off Date, but excluding any payments of principal and
          interest due on or prior to the Cut-off Date; (ii) such assets as shall
          from
          time to time be credited or are required by the terms of this Agreement
          to be
          credited to the Master Servicer Collection Account and the Distribution
          Account,
          (iii) such assets relating to the Mortgage Loans as from time to time may
          be
          held by the Servicers in the Protected Accounts, the Master Servicer in
          the
          Master Servicer Collection Account and the Trustee in the Distribution
          Account,
          (iv) any REO Property, (v) the Required Insurance Policies and any amounts
          paid
          or payable by the insurer under any Insurance Policy (to the extent the
          mortgagee has a claim thereto), (vi) the Mortgage Loan Purchase Agreement
          to the
          extent provided in Subsection 2.03(a), (vii) the rights with respect to
          the
          Servicing Agreements as assigned to the Trustee on behalf of the
          Certificateholders by the Assignment Agreement and (viii) all proceeds
          of the
          foregoing. Although it is the intent of the parties to this Agreement that
          the
          conveyance of the Depositor’s right, title and interest in and to the Mortgage
          Loans and other assets in the Trust Fund pursuant to this Agreement shall
          constitute a purchase and sale and not a loan, in the event that such conveyance
          is deemed to be a loan, it is the intent of the parties to this Agreement
          that
          the Depositor shall be deemed to have granted to the Trustee a first priority
          perfected security interest in all of the Depositor’s right, title and interest
          in, to and under the Mortgage Loans and other assets in the Trust Fund,
          and that
          this Agreement shall constitute a security agreement under applicable law.
          Moreover, if for any other reason this Agreement is held or deemed to create
          a
          security interest in the Mortgage Loans and the other assets constituting
          the
          Trust Fund, then it is intended as follows: (a) this Agreement shall also
          be
          deemed to be a security agreement within the meaning of Articles 8 and
          9 of the
          Uniform Commercial Code; (b) the conveyance provided for in this Section
          shall
          be deemed to be a grant by the Depositor to the Trustee of a security interest
          in all of the Depositor’s right, title and interest in and to the Mortgage Loans
          and all proceeds of the conversion, voluntary or involuntary, of the foregoing
          into cash, instruments, securities or other property, including without
          limitation all amounts from time to time held or invested in the Distribution
          Account, whether in the form of cash, instruments, securities or other
          property;
          (c) the possession by the Trustee or its agent of the Mortgage Loans and
          such
          other items of property as constitute instruments, money, negotiable documents
          or chattel paper shall be deemed to be “possession by the secured party” for
          purposes of perfecting the security interest pursuant to Section 9-305
          of the
          Uniform Commercial Code; (d) the Trustee shall be deemed to be the “securities
          intermediary,” as such term is defined in Section 8-102(a)(14)(ii) of the New
          York Uniform Commercial Code, that in the ordinary course of its business
          maintains “securities accounts” for others, as such term is used in Section
          8-501 of the New York Uniform Commercial Code; (e) the “securities
          intermediary’s jurisdiction” as defined in the New York Uniform Commercial Code
          shall be the State of New York; (f) the Trustee is not a “clearing corporation”,
          as such term is defined in Section 8-102(a)(5) of the New York Uniform
          Commercial Code and (g) notifications to persons holding such property,
          and
          acknowledgments, receipts or confirmations from persons holding such property,
          shall be deemed to be notifications to or acknowledgments, receipts or
          confirmations from, financial intermediaries, bailees or agents (as applicable)
          of the Trustee for the purpose of perfecting such security interest under
          applicable law. The Depositor, the Seller and the Trustee agree that it
          is not
          intended that any mortgage loan be conveyed to the Trust that is a “High-Cost
          Home Loan” as defined by applicable predatory lending laws.

         

      

      (b)           In
        connection with the above transfer and assignment, the Depositor hereby
        delivers, or hereby causes to be delivered, to the Custodian, as agent for
        the
        Trustee, with respect to each Mortgage Loan:

       

      (i)           the
        original Mortgage Note, endorsed without recourse (a) in blank or to the
        order
        of the Trustee or (b) in the case of a Mortgage Loan registered on the MERS
        system, endorsed in blank, in either case showing an unbroken chain of
        endorsements from the original payee thereof to the Person endorsing such
        Mortgage Note to the Trustee or to blank, or lost note affidavit together
        with a
        copy of the related Mortgage Note;

       

      (ii)           the
        original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting
        the
        presence of the MIN and language indicating that such Mortgage Loan is a
        MOM
        Loan, which shall have been recorded (or, for Mortgage Loans other than the
        EMC
        Flow Loans, if the original is not available, a copy), with evidence of such
        recording indicated thereon (or if clause (w) in the proviso below applies,
        shall be in recordable form);

       

      (iii)           unless
        the Mortgage Loan is registered on the MERS system, the original assignment
        to
        blank, or the assignment (either an original or a certified copy, which may
        be
        in the form of a blanket assignment if permitted in the jurisdiction in which
        the Mortgaged Property is located) to “U.S. Bank National Association, as
        Trustee” or to blank, with evidence of recording with respect to each Mortgage
        Loan in the name of the Trustee thereon (or if clause (w) in the proviso
        below
        applies or for Mortgage Loans with respect to which the related Mortgaged
        Property is located in a state other than Maryland or an Opinion of Counsel
        has
        been provided as set forth in this Section 2.01(b), shall be in recordable
        form);

       

      (iv)           all
        intervening assignments of the Security Instrument, if applicable and only
        to
        the extent available to the Depositor with evidence of recording
        thereon;

       

      (v)           the
        original or a copy of the policy or certificate of primary mortgage guaranty
        insurance, to the extent available, if any;

       

      (vi)           the
        original policy of title insurance or mortgagee’s certificate of title insurance
        or commitment or binder for title insurance or, in the event such original
        title
        policy has not been received from the title insurer, such original title
        policy
        will be delivered within one year of the Closing Date or, in the event such
        original title policy is unavailable, a photocopy of such title policy or,
        in
        lieu thereof, a current lien search on the related Mortgaged Property;
        and

       

      (vii)           originals
        of all modification agreements, if applicable and available.

       

      provided,
        however, that in lieu of the foregoing, the Depositor may deliver to the
        Custodian, as agent of the Trustee, the following documents, under the
        circumstances set forth below: (w) in lieu of the original Security Instrument
        (other than the Mortgages related to the EMC Flow Loans), assignments to
        the
        Trustee or intervening assignments thereof which have been delivered, are
        being
        delivered or will, upon receipt of recording information relating to the
        Security Instrument required to be included thereon, be delivered to recording
        offices for recording and have not been returned to the Depositor in time
        to
        permit their delivery as specified above, the Depositor may deliver, or cause
        to
        be delivered, a true copy thereof with a certification, on the face of such
        copy, substantially as follows: “Certified to be a true and correct copy of the
        original”; (x) in lieu of the Security Instrument, assignment to the Trustee or
        intervening assignments thereof, if the applicable jurisdiction retains the
        originals of such documents (as evidenced by a certification from the Depositor
        to such effect) the Depositor may deliver photocopies of such documents
        containing an original certification by the judicial or other governmental
        authority of the jurisdiction where such documents were recorded; (y) in
        lieu of
        the Mortgages (other than the
        Mortgages related to the EMC Flow Loans), assignment to the Trustee or in
        blank
        or intervening assignments thereof, if the applicable jurisdiction retains
        the
        originals of such documents (as evidenced by a certification from the Depositor
        to such effect) the Depositor may deliver, or cause to be delivered, photocopies
        of such documents containing an original certification by the judicial or
        other
        governmental authority of the jurisdiction where such documents were recorded;
        and (z) in lieu of the Mortgage Notes relating to the Mortgage Loans
        identified on Exhibit 5 to the Mortgage Loan Purchase Agreement, the Depositor
        may deliver, or cause to be delivered, a lost note affidavit from the related
        Seller; and (z) the Depositor shall not be required to deliver intervening
        assignments or Mortgage Note endorsements between the related underlying
        originator or underlying Seller and the related Seller, between the related
        Seller and the Depositor, and between the Depositor and the Trustee; and
        provided, further, however, that in the case of Mortgage Loans which have
        been
        prepaid in full after the Cut-off Date and prior to the Closing Date, the
        Depositor, in lieu of delivering the above documents, may deliver, or cause
        to
        be delivered, to the Trustee or the Custodian, as its agent, a certification
        to
        such effect and shall deposit all amounts paid in respect of such Mortgage
        Loans
        in the Master Servicer Collection Account on the Closing Date. The Depositor
        shall deliver, or cause to be delivered, such original documents (including
        any
        original documents as to which certified copies had previously been delivered)
        to the Trustee or the Custodian, as its agent, promptly after they are received.
        The Depositor shall cause the related Seller, at its expense, to cause each
        assignment of the Security Instrument to the Trustee to be recorded not later
        than 180 days after the Closing Date, unless (a) such recordation is not
        required by the Rating Agencies or an Opinion of Counsel addressed to the
        Trustee has been provided to the Trustee (with a copy to the Custodian) which
        states that recordation of such Security Instrument is not required to protect
        the interests of the Certificateholders in the related Mortgage Loans or
        (b)
        MERS is identified on the Mortgage or on a properly recorded assignment of
        the
        Mortgage as the mortgagee of record solely as nominee for the Seller and
        its
        successor and assigns; provided, however, notwithstanding the foregoing,
        each
        assignment shall be submitted for recording by the Seller in the manner
        described above, at no expense to the Trust or the Trustee or the Custodian,
        as
        its agent, upon the earliest to occur of: (i) reasonable direction by the
        Holders of Certificates evidencing Fractional Undivided Interests aggregating
        not less than 25% of the Trust Fund, (ii) the occurrence of an Event of Default,
        (iii) the occurrence of a bankruptcy, insolvency or foreclosure relating
        to the
        Seller and (iv) the occurrence of a servicing transfer as described in Section
        8.02 hereof. Notwithstanding the foregoing, if the Seller fails to pay the
        cost
        of recording the assignments, such expense will be paid by the Trustee and
        the
        Trustee shall be reimbursed for such expenses by the Trust in accordance
        with
        Section 9.05.

       

      Section
        2.02                                Acceptance
        of Mortgage Loans and Underlying Certificates by Trustee.

       

      (a)           The
        Trustee acknowledges the sale, transfer and assignment of the Trust Fund
        to it
        by the Depositor and receipt of, subject to further review and the exceptions
        which may be noted pursuant to the procedures described below, and declares
        that
        it holds, the documents (or certified copies thereof) delivered to the
        Custodian, as its agent, pursuant to Section 2.01(b), and declares that it
        will
        continue to hold those documents and any amendments, replacements or supplements
        thereto and all other assets of the Trust Fund delivered to it as Trustee
        in
        trust for the use and benefit of all present and future Holders of the related
        Certificates. On the Closing Date, the Custodian, with respect to the Mortgage
        Loans, shall acknowledge with respect to each Mortgage Loan by delivery to
        the
        Depositor, the related Seller, the Master Servicer and the Trustee of an
        Initial
        Certification substantially in the form of Exhibit One to the related Custodial
        Agreement, receipt of the Mortgage File, but without review of such Mortgage
        File, except to the extent necessary to confirm that such Mortgage File contains
        the related Mortgage Note or lost note affidavit. No later than 90 days after
        the Closing Date (or, with respect to any Substitute Mortgage Loan, within
        five
        Business Days after the receipt by the Trustee or Custodian thereof), the
        Trustee agrees, for the benefit of the related Certificateholders, to review
        or
        cause to be reviewed by the Custodian on its behalf (under the Custodial
        Agreement), each Mortgage File delivered to it and to execute and deliver,
        or
        cause to be executed and delivered, to the Depositor, the related Seller,
        the
        Master Servicer and the Trustee an Interim Certification substantially in
        the
        form of Exhibit Two to the related Custodial Agreement. In conducting such
        review, the Trustee or Custodian will ascertain whether all required documents
        have been executed and received, and based on the Mortgage Loan Schedule,
        whether those documents relate, determined on the basis of the Mortgagor
        name,
        original principal balance and loan number, to the Mortgage Loans it has
        received, as identified in the Mortgage Loan Schedule. In performing any
        such
        review, the Trustee or the Custodian, as its agent, may conclusively rely
        on the
        purported due execution and genuineness of any such document and on the
        purported genuineness of any signature thereon. If the Trustee or the Custodian,
        as its agent, finds any document constituting part of the Mortgage File has
        not
        been executed or received, or to be unrelated, determined on the basis of
        the
        Mortgagor name, original principal balance and loan number, to the Mortgage
        Loans identified in Exhibit B or to appear defective on its face (i.e. torn,
        mutilated, or otherwise physically altered) (a “Material Defect”), the Trustee
        or the Custodian, as its agent, shall, upon completion of the review of all
        files, but in no event later than 90 days after the Closing Date, notify
        the
        Seller. In accordance with the Mortgage Loan Purchase Agreement, the Seller
        shall correct or cure any such defect within ninety (90) days from the date
        of
        notice from the Trustee or the Custodian, as its agent, of the defect and
        if the
        Seller fails to correct or cure the defect within such period, and such defect
        materially and adversely affects the interests of the related Certificateholders
        in the related Mortgage Loan, the Trustee shall enforce the related Seller’s
        obligation under the Mortgage Loan Purchase Agreement to, within 90 days
        from
        the Trustee’s or the Custodian’s notification, provide a Substitute Mortgage
        Loan (if within two years of the Closing Date) or purchase such Mortgage
        Loan at
        the Purchase Price; provided that, if such defect would cause the Mortgage
        Loan
        to be other than a “qualified mortgage” as defined in Section 860G(a)(3) of the
        Code, any such cure or repurchase must occur within 90 days from the date
        such
        breach was discovered; provided, however, that if such defect relates solely
        to
        the inability of the related Seller to deliver the original Security Instrument
        or intervening assignments thereof, or a certified copy because the originals
        of
        such documents, or a certified copy have not been returned by the applicable
        jurisdiction, the related Seller shall not be required to purchase such Mortgage
        Loan if the Seller delivers such original documents or certified copy promptly
        upon receipt, but in no event later than 360 days after the Closing Date.
        The
        foregoing repurchase obligation shall not apply in the event that the related
        Seller cannot deliver such original or copy of any document submitted for
        recording to the appropriate recording office in the applicable jurisdiction
        because such document has not been returned by such office; provided that
        the
        related Seller shall instead deliver a recording receipt of such recording
        office or, if such receipt is not available, a certificate confirming that
        such
        documents have been accepted for recording, and delivery to the Trustee or
        the
        Custodian, as its agent, shall be effected by the Seller within thirty days
        of
        its receipt of the original recorded document.

       

      (b)           No
        later than 180 days after the Closing Date, the Trustee or the Custodian,
        as its
        agent, will review, for the benefit of the Certificateholders, the Mortgage
        Files delivered to it and will execute and deliver or cause to be executed
        and
        delivered to the Depositor, the related Seller, the Master Servicer and the
        Trustee a Final Certification substantially in the form of Exhibit Three
        to the
        related Custodial Agreement. In conducting such review, the Trustee or the
        Custodian, as its agent, will ascertain whether an original of each document
        required to be recorded has been returned from the recording office with
        evidence of recording thereon or a certified copy has been obtained from
        the
        recording office. If the Trustee or the Custodian, as its agent, finds a
        Material Defect, the Trustee or the Custodian, as its agent, shall, upon
        completion of the review of all files, but in no event later than 180 days
        after
        the Closing Date, notify the Seller (provided, however, that with respect
        to
        those documents described in subsections (b)(iv) and (viii) of Section 2.01,
        the
        Trustee’s and Custodian’s obligations shall extend only to the documents
        actually delivered to the Custodian pursuant to such subsections). In accordance
        with the Mortgage Loan Purchase Agreement, the related Seller shall correct
        or
        cure any such defect within 90 days from the date of notice from the Trustee
        or
        the Custodian, as its agent, of the Material Defect and if the related Seller
        is
        unable to cure such defect within such period, and if such defect materially
        and
        adversely affects the interests of the related Certificateholders in the
        related
        Mortgage Loan, the Trustee shall enforce the related Seller’s obligation under
        the Mortgage Loan Purchase Agreement to, within 90 days from the Trustee’s or
        Custodian’s notification, provide a Substitute Mortgage Loan (if within two
        years of the Closing Date) or purchase such Mortgage Loan at the Purchase
        Price,
        provided that, if such defect would cause the Mortgage Loan to be other than
        a
“qualified mortgage” as defined in Section 860G(a)(3) of the Code, any such
        cure, repurchase or substitution must occur within 90 days from the date
        such
        breach was discovered, provided, however, that if such defect relates solely
        to
        the inability of the related Seller to deliver the original Security Instrument
        or intervening assignments thereof, or a certified copy, because the originals
        of such documents or a certified copy, have not been returned by the applicable
        jurisdiction, the related Seller shall not be required to purchase such Mortgage
        Loan, if the related Seller delivers such original documents or certified
        copy
        promptly upon receipt, but in no event later than 360 days after the Closing
        Date. The foregoing repurchase obligation shall not apply in the event that
        the
        related Seller cannot deliver such original or copy of any document submitted
        for recording to the appropriate recording office in the applicable jurisdiction
        because such document has not been returned by such office; provided that
        the
        related Seller shall instead deliver a recording receipt of such recording
        office or, if such receipt is not available, a certificate confirming that
        such
        documents have been accepted for recording, and delivery to the Trustee or
        the
        Custodian, as its agent, shall be effected by the related Seller within thirty
        days of its receipt of the original recorded document.

       

      (c)           In
        the event that a Mortgage Loan is purchased by the related Seller in accordance
        with Subsections 2.02(a) or (b) above, the related Seller shall remit to
        the
        Master Servicer the Purchase Price for deposit in the Master Servicer Collection
        Account and the Seller shall provide to the Trustee written notification
        detailing the components of the Purchase Price. Upon deposit of the Purchase
        Price in the Master Servicer Collection Account, the Depositor shall notify
        the
        Trustee and the Custodian, as agent of the Trustee (upon receipt of a Request
        for Release in the form of Exhibit D-1 and Exhibit D-2 attached hereto, as
        applicable, with respect to such Mortgage Loan), shall release to the Seller
        the
        related Mortgage File and the Trustee shall execute and deliver all instruments
        of transfer or assignment, without recourse, representation or warranty,
        furnished to it by the related Seller, as are necessary to vest in the related
        Seller title to and rights under the Mortgage Loan. Such purchase shall be
        deemed to have occurred on the date on which the Purchase Price in immediately
        available funds is received by the Trustee. The Master Servicer shall amend
        the
        Mortgage Loan Schedule to reflect such repurchase and shall promptly notify
        the
        Rating Agencies, the related Seller and the Trustee of such amendment. The
        obligation of the related Seller to repurchase or substitute for any Mortgage
        Loan a Substitute Mortgage Loan as to which such a defect in a constituent
        document exists shall be the sole remedy respecting such defect available
        to the
        related Certificateholders or to the Trustee on their behalf.

       

      Section
        2.03                                Assignment
        of Interest in the Mortgage Loan Purchase Agreement.

       

      (a)           The
        Depositor hereby assigns to the Trustee, on behalf of the Certificateholders
        of
        the Certificates, all of its right, title and interest in the Mortgage Loan
        Purchase Agreement, including but not limited to the Depositor’s rights and
        obligations pursuant to the Servicing Agreements (noting that the Seller
        has
        retained the right in the event of breach of the representations, warranties
        and
        covenants, if any, with respect to the related Mortgage Loans of the related
        Servicer under the related Servicing Agreement to enforce the provisions
        thereof
        and to seek all or any available remedies). The obligations of the related
        Seller to substitute or repurchase, as applicable, a Mortgage Loan shall
        be the
        Trustee’s and the related Certificateholders’ sole remedy for any breach
        thereof. At the request of the Trustee, the Depositor shall take such actions
        as
        may be necessary to enforce the above right, title and interest on behalf
        of the
        Trustee and the Certificateholders or shall execute such further documents
        as
        the Trustee may reasonably require in order to enable the Trustee to carry
        out
        such enforcement.

       

      (b)           If
        the Depositor or the Trustee discovers a breach of any of the representations
        and warranties set forth in the Mortgage Loan Purchase Agreement, which breach
        materially and adversely affects the value of the interests of related
        Certificateholders or the Trustee in the related Mortgage Loan, the party
        discovering the breach shall give prompt written notice of the breach to
        the
        other parties to this Agreement.  EMC (on its own behalf and on behalf
        of Master Funding), within 90 days of its discovery or receipt of notice
        that
        such breach has occurred (whichever occurs earlier), shall cure the breach
        in
        all material respects or, subject to the Mortgage Loan Purchase Agreement
        or
        Section 2.04 of this Agreement, as applicable, shall purchase the Mortgage
        Loan
        or any property acquired with respect thereto from the Trustee; provided,
        however, that if there is a breach of any representation set forth in the
        Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as
        applicable, and the Mortgage Loan or the related property acquired with respect
        thereto has been sold, then EMC (on its own behalf and on behalf of Master
        Funding) shall pay, in lieu of the Purchase Price, any excess of the Purchase
        Price over the Net Liquidation Proceeds received upon such sale; provided
        further that, if such defect would cause the Mortgage Loan to be other than
        a
“qualified mortgage” as defined in Section 860G(a)(3) of the Code, any such cure
        or repurchase must occur within 90 days from the date such breach was
        discovered. If the Net Liquidation Proceeds exceed the Purchase Price, any
        excess shall be paid to EMC (on its own behalf and on behalf of Master Funding)
        to the extent not required by law to be paid to the borrower. Any such purchase
        by EMC (on its own behalf and on behalf of Master Funding) shall be made
        by
        providing an amount equal to the Purchase Price to the Master Servicer for
        deposit in the Master Servicer Collection Account and written notification
        detailing the components of such Purchase Price to the Master Servicer. The
        Depositor shall notify the Trustee and submit to the Custodian, as agent
        for the
        Trustee, a Request for Release, and the Custodian shall release, or the Trustee
        shall cause the Custodian to release, to the Seller the related Mortgage
        File
        and the Trustee shall execute and deliver all instruments of transfer or
        assignment furnished to it by EMC (on its own behalf and on behalf of Master
        Funding), without recourse, representation or warranty as are necessary to
        vest
        in the related Seller title to and rights under the Mortgage Loan or any
        property acquired with respect thereto. Such purchase shall be deemed to
        have
        occurred on the date on which the Purchase Price in available funds is received
        by the Trustee. The Master Servicer shall amend the Mortgage Loan Schedule
        to
        reflect such repurchase and shall promptly notify the EMC (on its own behalf
        and
        on behalf of Master Funding), the Trustee and the Rating Agencies of such
        amendment. Enforcement of the obligation of the Seller to purchase (or
        substitute a Substitute Mortgage Loan for) any Mortgage Loan or any property
        acquired with respect thereto (or pay the Purchase Price as set forth in
        the
        above proviso) as to which a breach has occurred and is continuing shall
        constitute the sole remedy respecting such breach available to the
        Certificateholders or the Trustee on their behalf.

       

      In
        connection with any repurchase of a
        Mortgage Loan or the cure of a breach of a representation or warranty set
        forth
        in Section 7 of the Mortgage Loan Purchase Agreement pursuant to this Section
        2.03, EMC (on its own behalf and on behalf of Master Funding) shall, or cause the
        related Servicer
        to, furnish to the Trustee
        an officer’s certificate,
        signed by a duly authorized officer of the related Seller or the related
        Servicer, as the case may be, to the effect that such repurchase or cure
        has
        been made in accordance with the terms and conditions of this Agreement and
        that
        all conditions precedent to such repurchase or cure have been satisfied,
        including, in the case of a repurchase, the delivery to the Trustee of the
        Purchase Price or the excess of the Purchase Price over the Net Liquidation
        Proceeds, if applicable, for deposit into the Distribution Account, together
        with copies of the Opinion of Counsel, if any, required to be delivered pursuant
        to Section 2.08 and the related Request for Release, on which the Trustee
        may
        rely.  Solely for purposes of the Trustee providing an Assessment of
        Compliance, upon receipt of the documentation specified in the preceding
        sentence, the Trustee shall approve such repurchase or cure, as applicable,
        and
        which approval shall be based solely on the Trustee’s receipt of such
        documentation and deposits, if applicable.  It is understood
        and agreed that the obligation under this Agreement of the Seller to cure
        the
        breach of a representation or warranty set forth in Section 7 of the Mortgage
        Loan Purchase Agreement or to repurchase or substitute any Mortgage Loan
        as to
        which a breach has occurred and is continuing shall constitute the sole remedies
        against the related Seller respecting such breach available to
        Certificateholders, the Depositor or the Trustee.

       

      Section
        2.04                                Substitution
        of Mortgage Loans.

       

      Notwithstanding
        anything to the contrary in this Agreement, in lieu of purchasing a Mortgage
        Loan pursuant to the Mortgage Loan Purchase Agreement or Sections 2.02 or
        2.03
        of this Agreement, EMC (on its own behalf and on behalf of Master Funding)
        may,
        no later than the date by which such purchase by the related Seller would
        otherwise be required, tender to the Trustee a Substitute Mortgage Loan
        accompanied by a certificate of an authorized officer of the Seller that
        such
        Substitute Mortgage Loan conforms to the requirements set forth in the
        definition of “Substitute Mortgage Loan” in this Agreement; provided, however,
        that substitution pursuant to the Mortgage Loan Purchase Agreement or Section
        2.04 of this Agreement, as applicable, in lieu of purchase shall not be
        permitted after the termination of the two-year period beginning on the Startup
        Day; provided, further, that if the breach would cause the Mortgage Loan
        to be
        other than a “qualified mortgage” as defined in Section 860G(a)(3) of the Code,
        any such cure or substitution must occur within 90 days from the date the
        breach
        was discovered. The Custodian, as agent for the Trustee, shall examine the
        Mortgage File for any Substitute Mortgage Loan in the manner set forth in
        Section 2.02(a) and the Trustee or the Custodian, as its agent, shall notify
        EMC
        (on its own behalf and on behalf of Master Funding), in writing, within five
        Business Days after receipt, whether or not the documents relating to the
        Substitute Mortgage Loan satisfy the requirements of Subsection 2.02(a).
        Within
        two Business Days after such notification, EMC (on its own behalf and on
        behalf
        of Master Funding) shall provide to the Trustee for deposit in the Distribution
        Account the amount, if any, by which the Outstanding Principal Balance as
        of the
        next preceding Due Date of the Mortgage Loan for which substitution is being
        made, after giving effect to the Scheduled Principal due on such date, exceeds
        the Outstanding Principal Balance as of such date of the Substitute Mortgage
        Loan, after giving effect to Scheduled Principal due on such date, which
        amount
        shall be treated for the purposes of this Agreement as if it were the payment
        by
        EMC (on its own behalf and on behalf of Master Funding) of the Purchase Price
        for the purchase of a Mortgage Loan by EMC (on its own behalf and on behalf
        of
        Master Funding). After such notification to EMC (on its own behalf and on
        behalf
        of Master Funding) and, if any such excess exists, upon receipt of such deposit,
        the Trustee shall accept such Substitute Mortgage Loan which shall thereafter
        be
        deemed to be a Mortgage Loan hereunder. In the event of such a substitution,
        accrued interest on the Substitute Mortgage Loan for the month in which the
        substitution occurs and any Principal Prepayments made thereon during such
        month
        shall be the property of the Trust Fund and accrued interest for such month
        on
        the Mortgage Loan for which the substitution is made and any Principal
        Prepayments made thereon during such month shall be the property of the related
        Seller. The Scheduled Principal on a Substitute Mortgage Loan due on the
        Due
        Date in the month of substitution shall be the property of the related Seller
        and the Scheduled Principal on the Mortgage Loan for which the substitution
        is
        made due on such Due Date shall be the property of the Trust Fund. Upon
        acceptance of the Substitute Mortgage Loan (and delivery to the Custodian
        of a
        Request for Release for such Mortgage Loan), the Custodian, as agent for
        the
        Trustee, shall release to the related Seller the related Mortgage File related
        to any Mortgage Loan released pursuant to the Mortgage Loan Purchase Agreement
        or Section 2.04 of this Agreement, as applicable, and shall execute and deliver
        all instruments of transfer or assignment, without recourse, representation
        or
        warranty in form as provided to it as are necessary to vest in the related
        Seller title to and rights under any Mortgage Loan released pursuant to the
        Mortgage Loan Purchase Agreement or Section 2.04 of this Agreement, as
        applicable. EMC (on its own behalf and on behalf of Master Funding) shall
        deliver to the Custodian the documents related to the Substitute Mortgage
        Loan
        in accordance with the provisions of the Mortgage Loan Purchase Agreement
        or
        Subsections 2.01(b) and 2.02(b) of this Agreement, as applicable, with the
        date
        of acceptance of the Substitute Mortgage Loan deemed to be the Closing Date
        for
        purposes of the time periods set forth in those Subsections. The representations
        and warranties set forth in the Mortgage Loan Purchase Agreement shall be
        deemed
        to have been made by the related Seller with respect to each Substitute Mortgage
        Loan as of the date of acceptance of such Mortgage Loan by the Trustee. The
        Master Servicer shall amend the Mortgage Loan Schedule to reflect such
        substitution and shall provide a copy of such amended Mortgage Loan Schedule
        to
        EMC (on its own behalf and on behalf of Master Funding), the Trustee and
        the
        Rating Agencies.

       

      In
        connection with any substitution of
        a Mortgage Loan pursuant to this Section 2.04 EMC (on its own behalf and
        on
        behalf of Master Funding) shall, or cause the related Servicer to, furnish
        to
        the Trustee an officer’s certificate, signed by a duly authorized officer of EMC
        (on its own behalf and on behalf of Master Funding) or the related Servicer,
        as
        the case may be, to the effect that such substitution has been made in
        accordance with the terms and conditions of this Agreement and that all
        conditions precedent to such substitution have been satisfied, together with
        copies of the Opinion of Counsel, if any, required to be delivered pursuant
        to
        Section 2.08 and the related Request for Release, on which the Trustee may
        rely.  Solely for purposes of the Trustee providing an Assessment of
        Compliance, upon receipt of the deposit specified in the preceding paragraph,
        if
        applicable, and the documentation specified in the preceding sentence, the
        Trustee shall approve such substitution and which approval shall be based
        solely
        on the Trustee’s receipt of such documentation and deposits.  It is
        understood and agreed that the obligation under this Agreement of EMC (on
        its
        own behalf and on behalf of Master Funding) to substitute any Mortgage Loan
        as
        to which a breach has occurred and is continuing shall constitute the sole
        remedies against the Seller respecting such breach available to
        Certificateholders, the Depositor or the Trustee.

       

      Section
        2.05                                Issuance
        of Certificates.

       

      (a)           The
        Trustee acknowledges the assignment to it of the Mortgage Loans and the other
        assets comprising the Trust Fund and, concurrently therewith, the Trustee
        has
        signed, and countersigned and delivered to the Depositor, in exchange therefor,
        the Certificates in such authorized denominations representing such Fractional
        Undivided Interests as the Depositor has requested. The Trustee agrees that
        it
        will hold the Mortgage Loans and such other assets as may from time to time
        be
        delivered to it segregated on the books of the Trustee in trust for the benefit
        of the related Certificateholders.

       

      (b)           The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey in trust to the Trustee without
        recourse all the right, title and interest of the Depositor in and to the
        Group
        I Mortgage Loans and the other assets of REMIC I for the benefit of the holders
        of the REMIC I Interests. The Trustee acknowledges receipt of such assets
        and
        declares that it holds and will hold the same in trust for the exclusive
        use and
        benefit of the holders of the REMIC I Interests.

       

      (b)           Depositor,
        concurrently with the execution and delivery hereof, does hereby transfer,
        assign, set over and otherwise convey in trust to the Trustee without recourse
        all the right, title and interest of the Depositor in and to the Group II
        Mortgage Loans and the other assets of REMIC II for the benefit of the holders
        of the REMIC II Interests. The Trustee acknowledges receipt of such assets
        and
        declares that it holds and will hold the same in trust for the exclusive
        use and
        benefit of the holders of the REMIC II Interests.

       

      (c)           The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey in trust to the Trustee without
        recourse all the right, title and interest of the Depositor in and to the
        REMIC
        I Regular Interests and the REMIC II Regular Interests and the other assets
        of
        REMIC III for the benefit of the holders of the REMIC III Regular Interests
        and
        Class I-R-2 Interest. The Trustee acknowledges receipt of the REMIC I Regular
        Interests (which are uncertificated) and the REMIC II Regular Interests (which
        are uncertificated) and the other assets of REMIC III and declares that it
        holds
        and will hold the same in trust for the exclusive use and benefit of the
        holders
        of the REMIC III Regular Interests and Class I-R-2 Interest.

       

      (d)           The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey in trust to the Trustee without
        recourse all the right, title and interest of the Depositor in and to the
        REMIC
        III Regular Interests, the Class I-R-2 Interest and the other assets of the
        ES
        Trust for the benefit of the holders of the Regular Certificates and the
        Class
        I-R-2 Certificates. The Trustee acknowledges receipt of the REMIC III Regular
        Interests (which are uncertificated), the Class I-R-2 Interest (which is
        uncertificated) and the other assets of the ES Trust and declares that it
        holds
        and will hold the same in trust for the exclusive use and benefit of the
        holders
        of the Regular Certificates and the Class I-R-2 Certificates.

       

      Section
        2.06                                Representations
        and Warranties Concerning the Depositor.

       

      The
        Depositor hereby represents and warrants to the Trustee and the Master Servicer
        as follows:

       

      (a)           the
        Depositor (i) is a corporation duly organized, validly existing and in good
        standing under the laws of the State of Delaware and (ii) is qualified and
        in
        good standing as a foreign corporation to do business in each jurisdiction
        where
        such qualification is necessary, except where the failure so to qualify would
        not reasonably be expected to have a material adverse effect on the Depositor’s
        business as presently conducted or on the Depositor’s ability to enter into this
        Agreement and to consummate the transactions contemplated hereby;

       

      (b)           the
        Depositor has full corporate power to own its property, to carry on its business
        as presently conducted and to enter into and perform its obligations under
        this
        Agreement;

       

      (c)           the
        execution and delivery by the Depositor of this Agreement have been duly
        authorized by all necessary corporate action on the part of the Depositor;
        and
        neither the execution and delivery of this Agreement, nor the consummation
        of
        the transactions herein contemplated, nor compliance with the provisions
        hereof,
        will conflict with or result in a breach of, or constitute a default under,
        any
        of the provisions of any law, governmental rule, regulation, judgment, decree
        or
        order binding on the Depositor or its properties or the articles of
        incorporation or by-laws of the Depositor, except those conflicts, breaches
        or
        defaults which would not reasonably be expected to have a material adverse
        effect on the Depositor’s ability to enter into this Agreement and to consummate
        the transactions contemplated hereby;

       

      (d)           the
        execution, delivery and performance by the Depositor of this Agreement and
        the
        consummation of the transactions contemplated hereby do not require the consent
        or approval of, the giving of notice to, the registration with, or the taking
        of
        any other action in respect of, any state, federal or other governmental
        authority or agency, except those consents, approvals, notices, registrations
        or
        other actions as have already been obtained, given or made;

       

      (e)           this
        Agreement has been duly executed and delivered by the Depositor and, assuming
        due authorization, execution and delivery by the other parties hereto,
        constitutes a valid and binding obligation of the Depositor enforceable against
        it in accordance with its terms (subject to applicable bankruptcy and insolvency
        laws and other similar laws affecting the enforcement of the rights of creditors
        generally);

       

      (f)           there
        are no actions, suits or proceedings pending or, to the knowledge of the
        Depositor, threatened against the Depositor, before or by any court,
        administrative agency, arbitrator or governmental body (i) with respect to
        any
        of the transactions contemplated by this Agreement or (ii) with respect to
        any
        other matter which in the judgment of the Depositor will be determined adversely
        to the Depositor and will if determined adversely to the Depositor materially
        and adversely affect the Depositor’s ability to enter into this Agreement or
        perform its obligations under this Agreement; and the Depositor is not in
        default with respect to any order of any court, administrative agency,
        arbitrator or governmental body so as to materially and adversely affect
        the
        transactions contemplated by this Agreement;

       

      (g)           The
        Depositor has filed all reports required to be filed by Section 13 or Section
        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 requirements for the past 90 days; and

       

      (h)           immediately
        prior to the transfer and assignment to the Trustee, each Mortgage Note and
        each
        Mortgage were not subject to an assignment or pledge, and the Depositor had
        good
        and marketable title to and was the sole owner thereof and had full right
        to
        transfer and sell such Mortgage Loan to the Trustee free and clear of any
        encumbrance, equity, lien, pledge, charge, claim or security
        interest.

       

      Section
        2.07   
Representations
        and Warranties of EMC.

       

      EMC,
        in
        its capacity as Seller and Master Servicer, hereby represents and warrants
        to
        the Depositor and the Trustee as follows, as of the Closing Date:

       

      (a)  EMC
        is
        duly organized as a Delaware corporation and is validly existing and in good
        standing under the laws of the State of Delaware and is duly authorized and
        qualified to transact any and all business contemplated by this Agreement
        to be
        conducted by EMC in any state in which a Mortgaged Property 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,
        to
        sell the Mortgage Loans in accordance with the terms of the Mortgage Loan
        Purchase Agreement and to perform any of its other obligations under this
        Agreement in accordance with the terms hereof.

       

      (b)  EMC
        has
        the full corporate power and authority to sell 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
        corporate action on the part of EMC the execution, delivery and performance
        of
        this Agreement, assuming the due authorization, execution and delivery hereof
        by
        the other parties hereto or thereto, as applicable, constitutes a legal,
        valid
        and binding obligation of EMC, enforceable against EMC in accordance with
        its
        terms, except that (a) the enforceability hereof may be limited by bankruptcy,
        insolvency, moratorium, receivership and other similar laws relating to
        creditors’ rights generally and (b) the remedy of specific performance and
        injunctive and other forms of equitable relief may be subject to equitable
        defenses and to the discretion of the court before which any proceeding therefor
        may be brought.

       

      (c)  The
        execution and delivery of this Agreement by EMC, the sale of the Mortgage
        Loans
        by EMC under the Mortgage Loan Purchase Agreement, the consummation of any
        other
        of the transactions contemplated by this Agreement, and the fulfillment of
        or
        compliance with the terms hereof and thereof are in the ordinary course of
        business of EMC and will not (A) result in a material breach of any term
        or
        provision of the charter or by-laws of EMC 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 EMC is a party or by
        which
        it may be bound, or (C) constitute a violation of any statute, order or
        regulation applicable to EMC of any court, regulatory body, administrative
        agency or governmental body having jurisdiction over EMC; and EMC is not
        in
        breach or violation of any material indenture or other material agreement
        or
        instrument, or in violation of any statute, order or regulation of any court,
        regulatory body, administrative agency or governmental body having jurisdiction
        over it which breach or violation may materially impair EMC’s ability to perform
        or meet any of its obligations under this Agreement.

       

      (d)  EMC
        is an
        approved Seller of conventional mortgage loans for Fannie Mae and Freddie
        Mac
        and is a mortgagee approved by the Secretary of Housing and Urban Development
        pursuant to sections 203 and 211 of the National Housing Act.

       

      (e)  No
        litigation is pending or, to the best of EMC’s knowledge, threatened, against
        EMC that would materially and adversely affect the execution, delivery or
        enforceability of this Agreement or the ability of EMC to sell the Mortgage
        Loans or to perform any of its other obligations under this Agreement in
        accordance with the terms hereof or thereof.

       

      (f)  No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by EMC of, or
        compliance by EMC with, this Agreement or the consummation of the transactions
        contemplated hereby, or if any such consent, approval, authorization or order
        is
        required, EMC has obtained the same.

       

      (g)  With
        respect to each Mortgage Loan as of the Closing Date (or such other date
        as may
        be specified in Section 7 of the Mortgage Loan Purchase Agreement), EMC,
        as
        Seller, hereby remakes and restates each of the representations and warranties
        set forth in Section 7 of the Mortgage Loan Purchase Agreement to the Depositor
        and the Trustee to the same extent as if fully set forth herein.

       

      Upon
        discovery by any of the parties hereto of a breach of a representation or
        warranty set forth in the Mortgage Loan Purchase Agreement with respect to
        the
        Mortgage Loans that materially and adversely affects the interests of the
        Certificateholders in any Mortgage Loan, the party discovering such breach
        shall
        give prompt written notice thereof to the other parties. EMC, in its capacity
        as
        Seller, hereby covenants with respect to the representations and warranties
        set
        forth in the Mortgage Loan Purchase Agreement with respect to the Mortgage
        Loans, that within 90 days of the discovery of a breach of any representation
        or
        warranty set forth therein that materially and adversely affects the interests
        of the Certificateholders in any Mortgage Loan, it shall cure such breach
        in all
        material respects and, if such breach is not so cured, (i) if such 90 day
        period
        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 Replacement Mortgage Loan, in the manner and subject to the
        conditions set forth in this Section; or (ii) repurchase the affected Mortgage
        Loan or Mortgage Loans from the Trustee at the Purchase Price in the manner
        set
        forth below; provided that any such substitution pursuant to (i) above or
        repurchase pursuant to (ii) above shall not be effected prior to the delivery
        to
        the Trustee of an Opinion of Counsel if required by Section 2.08 hereof and
        any
        such substitution pursuant to (i) above shall not be effected prior to the
        additional delivery to the applicable Custodian of a Request for Release;
        provided further that, if such breach would cause the Mortgage Loan to be
        other
        than a “qualified mortgage” as defined in Section 860G(a)(3) of the Code, any
        such cure, repurchase or substitution must occur within 90 days from the
        date
        such breach was discovered. The Trustee shall give prompt written notice
        to the
        parties hereto of EMC’s failure to cure such breach as set forth in the
        preceding sentence. EMC shall promptly reimburse the Master Servicer and
        the
        Trustee for any expenses reasonably incurred by the Master Servicer or the
        Trustee in respect of enforcing the remedies for such breach. To enable the
        Master Servicer to amend the Mortgage Loan Schedule, EMC shall, unless it
        cures
        such breach in a timely fashion pursuant to this Section 2.07, promptly notify
        the Master Servicer whether it intends either to repurchase, or to substitute
        for, the Mortgage Loan affected by such breach. With respect to the
        representations and warranties with respect to the Mortgage Loans that are
        made
        to the best of EMC’s knowledge, if it is discovered by any of the Depositor, the
        Master Servicer, EMC or the Trustee that the substance of such representation
        and warranty is inaccurate and such inaccuracy materially and adversely affects
        the value of the related Mortgage Loan, notwithstanding EMC’s lack of knowledge
        with respect to the substance of such representation or warranty, EMC (in
        its
        capacity as Seller) shall nevertheless be required to cure, substitute for
        or
        repurchase the affected Mortgage Loan in accordance with the
        foregoing.

       

      With
        respect to any Replacement Mortgage Loan or Loans, EMC (in its capacity as
        Seller) shall deliver to the Trustee or the related Custodian on its behalf
        for
        the benefit of the Certificateholders such documents and agreements as are
        required by Section 2.01. No substitution will be made in any calendar month
        after the Determination Date for such month. Notwithstanding the foregoing,
        such
        substitution must be done within two years of the Closing Date. Scheduled
        Payments due with respect to Replacement Mortgage Loans in the Due Period
        related to the Distribution Date on which such proceeds are to be distributed
        shall not be part of the Trust Fund and will be retained by EMC (in its capacity
        as Seller). For the month of substitution, distributions to Certificateholders
        will include the Scheduled Payment due on any Deleted Mortgage Loan for the
        related Due Period and thereafter EMC (in its capacity as Seller) shall be
        entitled to retain all amounts received in respect of such Deleted Mortgage
        Loan. The Master Servicer shall amend the Mortgage Loan Schedule for the
        benefit
        of the Certificateholders to reflect the removal of each such Deleted Mortgage
        Loan and the substitution of the Replacement Mortgage Loan or Loans and the
        Master Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee
        and the related Custodian. Upon such substitution, the Replacement Mortgage
        Loan
        or Loans shall be subject to the terms of this Agreement in all respects,
        and
        EMC shall be deemed to have made with respect to such Replacement Mortgage
        Loan
        or Loans, as of the date of substitution, the representations and warranties
        set
        forth in Section 7 or Section 8 of the Mortgage Loan Purchase Agreement with
        respect to such Mortgage Loan. Upon any such substitution and the deposit
        into
        the Master Servicer Collection Account of the amount required to be deposited
        therein in connection with such substitution as described in the following
        paragraph and receipt by the related Custodian of a Request for Release for
        such
        Mortgage Loan, the related Custodian shall release to EMC the Mortgage File
        relating to such Deleted Mortgage Loan and held for the benefit of the
        Certificateholders and the Trustee shall execute and deliver at EMC’s direction
        such instruments of transfer or assignment as have been prepared by EMC,
        in each
        case without recourse, representation or warranty as shall be necessary to
        vest
        in EMC, or its respective designee, title to the Trustee’s interest in any
        Deleted Mortgage Loan substituted for pursuant to this Section
        2.07.

       

      For
        any
        month in which EMC substitutes one or more Replacement Mortgage Loans for
        a
        Deleted Mortgage Loan, the Master Servicer will determine the amount (if
        any) by
        which the aggregate principal balance of all the Replacement Mortgage Loans
        as
        of the date of substitution is less than the Stated Principal Balance (after
        application of the principal portion of the Scheduled Payment due in the
        month
        of substitution) of such Deleted Mortgage Loan. An amount equal to the aggregate
        of such deficiencies, described in the preceding sentence for any Distribution
        Date (such amount, the “Substitution Adjustment Amount”) shall be deposited into
        the Master Servicer Collection Account, by EMC upon its delivering such
        Replacement Mortgage Loan on the Determination Date for the Distribution
        Date
        relating to the Prepayment Period during which the related Mortgage Loan
        became
        required to be purchased or replaced hereunder.

       

      In
        the
        event that EMC (in its capacity as Seller) shall have repurchased a Mortgage
        Loan, the Purchase Price therefor shall be deposited into the Master Servicer
        Collection Account maintained by the Master Servicer, on the Determination
        Date
        for the Distribution Date in the month following the month during which EMC
        became obligated to repurchase or replace such Mortgage Loan and upon such
        deposit of the Purchase Price, the delivery of an Opinion of Counsel if required
        by Section 2.08 and the receipt of a Request for Release, the related Custodian
        shall release the related Mortgage File held for the benefit of the
        Certificateholders to EMC, and the Trustee shall execute and deliver at such
        Person’s direction the related instruments of transfer or assignment prepared by
        EMC, in each case without recourse, representation or warranty, as shall
        be
        necessary to transfer title from the Trustee for the benefit of the
        Certificateholders and transfer the Trustee’s interest to EMC to any Mortgage
        Loan purchased pursuant to this Section 2.07. It is understood and agreed
        that
        the obligation under this Agreement of EMC to cure, repurchase or replace
        any
        Mortgage Loan as to which a breach has occurred and is continuing shall
        constitute the sole remedies against EMC (in its capacity as Seller) respecting
        such breach available to the Certificateholders, the Depositor or the
        Trustee.

       

      The
        representations and warranties set forth in this Section 2.07 hereof shall
        survive delivery of the respective Mortgage Loans and Mortgage Files to the
        Trustee or the related Custodian for the benefit of the
        Certificateholders.

       

      Section
        2.08                                Delivery
        of Opinion of Counsel in Connection with Substitutions and
        Repurchases.

       

      Notwithstanding
        any contrary provision
        of this Agreement, with respect to any Mortgage Loan that is not in default
        or
        as to which default is not imminent, no repurchase or substitution pursuant
        to
        Sections 2.02, 2.03, 2.04 or 2.07 shall be made unless the Seller delivers
        to
        the Trustee an Opinion of Counsel, addressed to the Trustee, to the effect
        that
        such repurchase or substitution would not (i) result in the imposition of
        the
        tax on “prohibited transactions” of the any REMIC or contributions after the
        Closing Date, as defined in Sections 860F(a)(2) and 860G(d) of the Code,
        respectively, or (ii) cause REMIC I, REMIC II or REMIC III to fail to qualify
        as
        a REMIC at any time that any Certificates are outstanding. Any Mortgage Loan
        as
        to which repurchase or substitution was delayed pursuant to this paragraph
        shall
        be repurchased or the substitution therefor shall occur (subject to compliance
        with Sections 2.02, 2.03, 2.04 or 2.07) upon the earlier of (a) the occurrence
        of a default or imminent default with respect to such Mortgage Loan and (b)
        receipt by the Trustee of an Opinion of Counsel addressed to the Trustee
        to the
        effect that such repurchase or substitution, as applicable, will not result
        in
        the events described in clause (i) or clause (ii) of the preceding
        sentence.

       

       

       

      ARTICLE
        III

      Administration
        of the Trust Fund and Servicing of Mortgage Loans

       

      Section
        3.01                                Master
        Servicer.

       

      The
        Master Servicer shall supervise, monitor and oversee the obligation of the
        Servicers to service and administer their respective Mortgage Loans in
        accordance with the terms of the applicable Servicing Agreement and shall
        have
        full power and authority to do any and all things which it may deem necessary
        or
        desirable in connection with such master servicing and administration. In
        performing its obligations hereunder, the Master Servicer shall act in a
        manner
        consistent with Accepted Master Servicing Practices. Furthermore, the Master
        Servicer shall oversee and consult with each Servicer as necessary from
        time-to-time to carry out the Master Servicer’s obligations hereunder, shall
        receive, review and evaluate all reports, information and other data provided
        to
        the Master Servicer by each Servicer and shall cause each Servicer to perform
        and observe the covenants, obligations and conditions to be performed or
        observed by such Servicer under its applicable Servicing Agreement. The Master
        Servicer shall independently and separately monitor each Servicer’s servicing
        activities with respect to each related Mortgage Loan, reconcile the results
        of
        such monitoring with such information provided in the previous sentence on
        a
        monthly basis and coordinate corrective adjustments to the Servicers’ and Master
        Servicer’s records, and based on such reconciled and corrected information, the
        Master Servicer shall provide such information to the Trustee, in the form
        of
        Exhibit R attached hereto and as shall be necessary in order for it to prepare
        the statements specified in Section 6.05(a) by 12:00 p.m. CST on the 5th
        Business Day prior to each Distribution Date, and prepare any other information
        and statements required to be forwarded by the Master Servicer hereunder;
        provided, however, in no event shall the Master Servicer be required to provide
        such information to the Trustee earlier than 12:00 p.m. CST on the 19th calendar
        day of
        the month. The Master Servicer shall reconcile the results of its Mortgage
        Loan
        monitoring with the actual remittances of the Servicers pursuant to the
        applicable Servicing Agreement.  The Master Servicer shall be entitled
        to conclusively rely on the Mortgage Loan data provided by the related Servicer
        and shall have no liability for any errors in such Mortgage Loan
        data.

       

      In
        addition to the foregoing, in connection with a modification of any Mortgage
        Loan by a Servicer, if the Master Servicer is unable to enforce the obligations
        of the Servicer with respect to such modification, the Master Servicer shall
        notify the Depositor of such Servicer’s failure to comply with the terms of the
        Servicing Agreement or this Agreement.  If the Servicing Agreement
        requires the approval of the Master Servicer for a modification to a Mortgage
        Loan, the Master Servicer shall approve such modification if, based upon
        its
        receipt of written notification from the related Servicer outlining the terms
        of
        such modification and appropriate supporting documentation, the Master Servicer
        determines that the modification is permitted under the terms of the Servicing
        Agreement and that any conditions to such modification set forth in the
        Servicing Agreement have been satisfied.  Furthermore, if the
        Servicing Agreement requires the oversight and monitoring of loss mitigation
        measures with respect to the related Mortgage Loans, the Master Servicer
        will
        monitor any loss mitigation procedure or recovery action related to a defaulted
        Mortgage Loan (to the extent it receives notice of such from the related
        Servicer) and confirm that such loss mitigation procedure or recovery action
        is
        initiated, conducted and concluded in accordance with any timeframes and
        any
        other requirements set forth in the Servicing Agreement, and the Master Servicer
        shall notify the Depositor in any case in which the Master Servicer believes
        that the related Servicer is not complying with such timeframes and/or other
        requirements.

       

      The
        Trustee shall furnish the Servicers and the Master Servicer with any powers
        of
        attorney substantially in the form of Exhibit P hereto and upon written request
        from a Servicing Officer other documents in form as provided to it necessary
        or
        appropriate to enable the Servicers and the Master Servicer to service and
        administer the related Mortgage Loans and REO Property. The Trustee shall
        be
        indemnified by the Master Servicer for any costs, liabilities or expenses
        incurred by it in connection with such powers of attorney.

       

      The
        Trustee or the Custodian shall provide access to the records and documentation
        in possession of the Trustee regarding the Mortgage Loans and REO Property
        and
        the servicing thereof to the related Certificateholders, the FDIC, and the
        supervisory agents and examiners of the FDIC, such access being afforded
        only
        upon reasonable prior written request and during normal business hours at
        the
        office of the Trustee; provided, however, that, unless otherwise required
        by
        law, the Trustee shall not be required to provide access to such records
        and
        documentation if the provision thereof would violate the legal right to privacy
        of any Mortgagor. The Trustee shall allow representatives of the above entities
        to photocopy any of the records and documentation and shall provide equipment
        for that purpose at a charge that covers the Trustee’s actual
        costs.

       

      The
        Trustee shall execute upon the related Servicer’s written instruction (which
        includes the documents to be signed) and deliver to the related Servicer
        and the
        Master Servicer any court pleadings, requests for trustee’s sale or other
        appropriate documents necessary or desirable to (i) the foreclosure or trustee’s
        sale with respect to a Mortgaged Property; (ii) any legal action brought
        to
        obtain judgment against any Mortgagor on the Mortgage Note or Security
        Instrument; (iii) obtain a deficiency judgment against the Mortgagor; or
        (iv)
        enforce any other rights or remedies provided by the Mortgage Note or Security
        Instrument or otherwise available at law or equity.

       

      Section
        3.02                                Tax
        Entity-Related Covenants.

       

      For
        as
        long as REMIC I, REMIC II or REMIC III and the ES Trust shall exist, the
        Trustee
        shall act in accordance herewith to assure continuing treatment of each of
        REMIC
        I, REMIC II and REMIC III as a REMIC and the ES Trust as a grantor trust
        for
        federal income tax purposes, and the Trustee shall comply with any directions
        of
        the Depositor, the related Servicer or the Master Servicer to ensure such
        continuing treatment.  In particular, the Trustee shall not (unless
        expressly permitted under the terms of this Agreement) (a) sell or permit
        the
        sale of all or any portion of the Mortgage Loans or of any investment of
        deposits in an Account unless such sale is as a result of a repurchase of
        the
        Mortgage Loans pursuant to this Agreement or the Trustee has received a REMIC
        Opinion addressed to the Trustee prepared at the expense of the Trust Fund;
        (b)
        other than with respect to a substitution pursuant to the Mortgage Loan Purchase
        Agreement, Section 2.04 or Section 2.07 of this Agreement, as applicable,
        accept
        any contribution to REMIC I, REMIC II or REMIC III after the Startup Day
        without
        receipt of a REMIC Opinion addressed to the Trustee; (c) acquire any assets
        for
        REMIC I, REMIC II or REMIC III other than any REO Property after the Startup
        Day
        without receipt of a REMIC Opinion; or (d) vary the corpus of the ES
        Trust.

       

      Section
        3.03                                Monitoring
        of Servicers.

       

      (a)           The
        Master Servicer shall be responsible for reporting to the Trustee and the
        Depositor the non-compliance by each Servicer with its duties under the related
        Servicing Agreement. In the review of each Servicer’s activities, the Master
        Servicer may rely upon an officer’s certificate of the Servicer (or similar
        document signed by an officer of the Servicer) with regard to the Servicer’s
        compliance with the terms of its Servicing Agreement. In the event that the
        Master Servicer, in its judgment, determines that a Servicer (other than
        the
        Company) should be terminated in accordance with its Servicing Agreement,
        or
        that a notice should be sent pursuant to such Servicing Agreement with respect
        to the occurrence of an event that, unless cured, would constitute grounds
        for
        such termination, the Master Servicer shall notify the Depositor and the
        Trustee
        thereof and the Master Servicer shall issue such notice or take such other
        action as it deems appropriate.  In the event that the Master
        Servicer, in its judgment, determines that the Company should be terminated
        in
        accordance with the EMC Servicing Agreement, or that a notice should be sent
        pursuant to the EMC Servicing Agreement with respect to the occurrence of
        an
        event that, unless cured, would constitute grounds for such termination,
        the
        Master Servicer shall notify the Depositor and the Trustee thereof in writing.
        Pursuant to its receipt of such written notification from the Master Servicer,
        the Trustee shall issue such notice of termination to the Company or take
        such
        other action as it deems appropriate.

       

       (b)           The
        Master Servicer, for the benefit of the Trustee and the Certificateholders,
        shall enforce the obligations of each Servicer under the related Servicing
        Agreement, and shall, in the event that a Servicer, other than the Company,
        fails to perform its obligations in accordance with the related Servicing Agreement,
        subject to
        the preceding paragraph, terminate the rights and obligations of such Servicer
        thereunder and act as servicer of the related Mortgage Loans or to cause
        the
        Trustee to enter into a new Servicing Agreement with a successor Servicer
        selected by the Master Servicer; provided, however, it is understood and
        acknowledged by the parties hereto that there will be a period of transition
        (not to exceed 90 days) before the actual servicing functions can be fully
        transferred to such successor Servicer. In the event that the Company fails
        to
        perform its obligations in accordance with the EMC Servicing Agreement, subject
        to the preceding paragraph, the Master Servicer shall notify the Trustee
        in writing of such failure. Pursuant to its receipt of such notification
        from
        the Master Servicer, the Trustee shall terminate the rights and obligations
        of
        the Company under the EMC Servicing Agreement and enter in to a new Servicing
        Agreement with a successor Servicer selected by the Trustee; provided, however,
        it is understood and acknowledged by the parties hereto that there will be
        a
        period of transition (not to exceed 90 days) before the actual servicing
        functions can be fully transferred to such successor Servicer. In either
        event,
        such enforcement, including, without limitation, the legal prosecution of
        claims, termination of the Servicing Agreements and the pursuit of other
        appropriate remedies, shall be in such form and carried out to such an extent
        and at such time as the Master Servicer (or in the case the Company is
        terminated as the Servicer, the successor servicer or the Trustee, as
        applicable) in its good faith business judgment, would require were it the
        owner
        of the related Mortgage Loans. The Master Servicer shall pay the costs of
        such
        enforcement at its own expense, provided that the Master Servicer shall not
        be
        required to prosecute or defend any legal action except to the extent that
        the
        Master Servicer shall have received reasonable indemnity for its costs and
        expenses in pursuing such action. In the event that the Company is terminated
        as
        the Servicer, the Trustee shall pay the costs of such enforcement at its
        own
        expense, subject to its right to be reimbursed for such costs from the
        Distribution Account pursuant to Section 3.03(c); provided that the Trustee
        shall not be required to prosecute or defend any legal action except to the
        extent that the Trustee shall have received reasonable indemnity for its
        costs
        and expenses in pursuing such action. Nothing herein shall impose any obligation
        on the part of the Trustee to assume or succeed to the duties or obligations
        of
        the Company or the Master Servicer unless the Trustee has not been able to
        find
        a successor servicer or a successor master servicer.

       

      (c)           In
        the event that the Company is terminated as Servicer, to the extent that
        the
        costs and expenses of the Trustee related to any termination of the Company,
        or
        the enforcement or prosecution of related claims, rights or remedies, or
        the
        appointment of a successor Servicer (including, without limitation, (i) all
        legal costs and expenses and all due diligence costs and expenses associated
        with an evaluation of the potential termination of the Company as a result
        of an
        event of default by the Company as a Servicer and (ii) all costs and expenses
        associated with the complete transfer of servicing, including all servicing
        files and all servicing data and the completion, correction or manipulation
        of
        such servicing data as may be required by the successor Servicer to correct
        any
        errors or insufficiencies in the servicing data or otherwise to enable the
        successor Servicer to service the Mortgage Loans in accordance with the related
        Servicing Agreement) are not fully and timely reimbursed by the Company after
        such termination, the Trustee shall be entitled to reimbursement of such
        costs
        and expenses from the Distribution Account.  In all other cases, to the
        extent that
        the costs and expenses of the Master Servicer related to any termination
        of a
        Servicer (other than the Company), appointment of a
        successor Servicer
        or the transfer and assumption of servicing by the Master Servicer with respect
        to any Servicing Agreement (including, without limitation, (i) all legal
        costs
        and expenses and all due diligence costs and expenses associated with an
        evaluation of the potential termination of the Servicer as a result of an
        event
        of default by such Servicer and (ii) all costs and expenses associated with
        the
        complete transfer of servicing, including all servicing files and all servicing
        data and the completion, correction or manipulation of such servicing data
        as
        may be required by the successor servicer to correct any errors or
        insufficiencies in the servicing data or otherwise to enable the successor
        servicer to service the Mortgage Loans in accordance with the related Servicing
        Agreement) are not fully and timely reimbursed by the terminated Servicer,
        the
        Master Servicer shall be entitled to reimbursement of such costs and expenses
        from the Master Servicer Collection Account.

       

      (d)           The
        Master Servicer shall require each Servicer to comply with the remittance
        requirements and other obligations set forth in the related Servicing
        Agreement.

       

      (e)           If
        the Master Servicer acts as a servicer, it shall not be liable for losses
        of the
        predecessor Servicer or any acts or omissions of the predecessor Servicer,
        or
        deemed to have made any representations and warranties of the related Servicer,
        if any, that it replaces.

       

      Section
        3.04                                Fidelity
        Bond.

       

      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, 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
        3.05                                Power
        to Act; Procedures.

       

      The
        Master Servicer shall master service the Mortgage Loans and shall have full
        power and authority, subject to the REMIC Provisions and the provisions of
        Article X hereof, to do any and all things that it may deem necessary or
        desirable in connection with the master servicing and administration of the
        Mortgage Loans, including but not limited to the power and authority (i)
        to
        execute and deliver, on behalf of the Holders of the Certificates and the
        Trustee, customary consents or waivers and other instruments and documents,
        (ii)
        to consent to transfers of any Mortgaged Property and assumptions of the
        Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds,
        Liquidation Proceeds and Subsequent Recoveries, and (iv) to effectuate
        foreclosure or other conversion of the ownership of the Mortgaged Property
        securing any Mortgage Loan, in each case, in accordance with the provisions
        of
        this Agreement and the related Servicing Agreement, as applicable; provided,
        however, that the Master Servicer shall not (and, consistent with its
        responsibilities under Section 3.03, shall not authorize any Servicer to)
        knowingly or intentionally 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, may cause REMIC I, REMIC II or REMIC III to fail
        to
        qualify as a REMIC or result in the imposition of a tax upon the Trust Fund
        (including but not limited to the tax on prohibited transactions as defined
        in
        Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set
        forth
        in Section 860G(d) of the Code) unless the Master Servicer has received an
        Opinion of Counsel (but not at the expense of the Master Servicer) to the
        effect
        that the contemplated action would not cause REMIC I, REMIC II or REMIC III
        to
        fail to qualify as a REMIC or result in the imposition of a tax upon REMIC
        I,
        REMIC II or REMIC III. The Trustee shall furnish the Master Servicer, upon
        written request from a Servicing Officer, with any powers of attorney empowering
        the Master Servicer or any Servicer to execute and deliver instruments of
        satisfaction or cancellation, or of partial or full release or discharge,
        and to
        foreclose upon or otherwise liquidate Mortgaged Property, and to appeal,
        prosecute or defend in any court action relating to the Mortgage Loans or
        the
        Mortgaged Property, in accordance with the related Servicing Agreement and
        this
        Agreement, and the Trustee shall execute and deliver such other documents,
        as
        the Master Servicer may request, to enable the Master Servicer to master
        service
        and administer the Mortgage Loans and carry out its duties hereunder, in
        each
        case in accordance with Accepted Master Servicing Practices (and the Trustee
        shall have no liability for misuse of any such powers of attorney by the
        Master
        Servicer or any Servicer). If the Master Servicer or the Trustee has been
        advised that it is likely that the laws of the state in which action is to
        be
        taken prohibit such action if taken in the name of the Trustee or that the
        Trustee would be adversely affected under the “doing business” or tax laws of
        such state if such action is taken in its name, the Master Servicer shall
        join
        with the Trustee in the appointment of a co-trustee pursuant to Section 9.11
        hereof. In the performance of its duties hereunder, the Master Servicer shall
        be
        an independent contractor and shall, except in those instances where it is
        taking action in the name of the Trust, not be deemed to be the agent of
        the
        Trust.

       

      Section
        3.06                                Due-on-Sale
        Clauses; Assumption Agreements.

       

      To
        the
        extent provided in the applicable Servicing Agreement, to the extent Mortgage
        Loans contain enforceable due-on-sale clauses, the Master Servicer shall
        cause
        the Servicers to enforce such clauses in accordance with the applicable
        Servicing Agreement. If applicable law prohibits the enforcement of a
        due-on-sale clause or such clause is otherwise not enforced in accordance
        with
        the applicable Servicing Agreement, and, as a consequence, a Mortgage Loan
        is
        assumed, the original Mortgagor may be released from liability in accordance
        with the applicable Servicing Agreement.

       

      Section
        3.07                                Release
        of Mortgage Files.

       

      (a)           Upon
        becoming aware of the payment in full of any Mortgage Loan, or the receipt
        by
        any Servicer of a notification that payment in full has been escrowed in
        a
        manner customary for such purposes for payment to related Certificateholders
        on
        the next Distribution Date, the Servicer will, if required under the applicable
        Servicing Agreement (or if the applicable Servicer does not, the Master Servicer
        may), promptly furnish to the Custodian, on behalf of the Trustee, two copies
        of
        a certification substantially in the form of Exhibit D (or as otherwise provided
        in the Custodial Agreement) hereto signed by a Servicing Officer or in a
        mutually agreeable electronic format which will, in lieu of a signature on
        its
        face, originate from a Servicing Officer (which certification shall include
        a
        statement to the effect that all amounts received in connection with such
        payment that are required to be deposited in the Protected Account maintained
        by
        the applicable Servicer pursuant to Section 4.01 or by the applicable Servicer
        pursuant to the applicable Servicing Agreement have been or will be so
        deposited) and shall request that the Custodian, on behalf of the Trustee,
        deliver to the applicable Servicer the related Mortgage File. Upon receipt
        of
        such certification and request, the Custodian, on behalf of the Trustee,
        shall
        promptly release the related Mortgage File to the applicable Servicer and
        the
        Trustee and Custodian shall have no further responsibility with regard to
        such
        Mortgage File. Upon any such payment in full, each Servicer is authorized,
        to
        give, as agent for the Trustee, as the mortgagee under the Mortgage that
        secured
        the Mortgage Loan, an instrument of satisfaction (or assignment of mortgage
        without recourse) regarding the Mortgaged Property subject to the Mortgage,
        which instrument of satisfaction or assignment, as the case may be, shall
        be
        delivered to the Person or Persons entitled thereto against receipt therefor
        of
        such payment, it being understood and agreed that no expenses incurred in
        connection with such instrument of satisfaction or assignment, as the case
        may
        be, shall be chargeable to the applicable Protected Account.

       

      (b)           From
        time to time and as appropriate for the servicing or foreclosure of any Mortgage
        Loan and in accordance with the applicable Servicing Agreement, upon written
        instruction from such Servicer or the Master Servicer, the Trustee shall
        execute
        such documents as shall be prepared and furnished to the Trustee by a Servicer
        or the Master Servicer (in form reasonably acceptable to the Trustee) and
        as are
        necessary to the prosecution of any such proceedings. The Custodian, on behalf
        of the Trustee, shall, upon the request of a Servicer or the Master Servicer,
        and delivery to the Custodian, on behalf of the Trustee, of two copies of
        a
        request for release signed by a Servicing Officer substantially in the form
        of
        Exhibit D (or in a mutually agreeable electronic format which will, in lieu
        of a
        signature on its face, originate from a Servicing Officer), release the related
        Mortgage File held in its possession or control to the Servicer or the Master
        Servicer. Such trust receipt shall obligate the Servicer or the Master Servicer
        to return the Mortgage File to the Custodian on behalf of the Trustee, when
        the
        need therefor by the Servicer or the Master Servicer no longer exists unless
        the
        Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate
        of a Servicing Officer similar to that hereinabove specified, the Mortgage
        File
        shall be released by the Custodian, on behalf of the Trustee, to the Servicer
        or
        the Master Servicer.

       

      Section
        3.08                                Documents,
        Records and Funds in Possession of Master Servicer to Be Held for
        Trustee.

       

      (a)           The
        Master Servicer shall transmit and each Servicer (to the extent required
        by the
        related Servicing Agreement) shall transmit to the Trustee or Custodian such
        documents and instruments coming into the possession of the Master Servicer
        or
        such Servicer from time to time as are required by the terms hereof, or in
        the
        case of the Servicers, the applicable Servicing Agreement, to be delivered
        to
        the Trustee or Custodian. Any funds received by the Master Servicer or by
        a
        Servicer in respect of any Mortgage Loan or which otherwise are collected
        by the
        Master Servicer or by a Servicer as Liquidation Proceeds, Insurance Proceeds
        or
        Subsequent Recoveries in respect of any Mortgage Loan shall be held for the
        benefit of the Trustee and the Certificateholders subject to the right of
        the
        Master Servicer to retain or withdraw from the Master Servicer Collection
        Account the Master Servicing Compensation and other amounts provided in this
        Agreement, and to the right of each Servicer to retain or withdraw its Servicing
        Fee and other amounts as provided in the applicable Servicing Agreement.
        The
        Master Servicer and each Servicer shall provide access to information and
        documentation regarding the Mortgage Loans to the Trustee, its agents and
        accountants at any time upon reasonable request and during normal business
        hours, to related Certificateholders that are savings and loan associations,
        banks or insurance companies, the Office of Thrift Supervision, the FDIC
        and the
        supervisory agents and examiners of such Office and Corporation or examiners
        of
        any other federal or state banking or insurance regulatory authority if so
        required by applicable regulations of the Office of Thrift Supervision or
        other
        regulatory authority, such access to be afforded without charge but only
        upon
        reasonable request in writing and during normal business hours at the offices
        of
        the Master Servicer designated by it. In fulfilling such a request the Master
        Servicer shall not be responsible for determining the sufficiency of such
        information.

       

      (b)           All
        Mortgage Files and funds collected or held by, or under the control of, the
        Master Servicer, in respect of any Mortgage Loans, whether from the collection
        of principal and interest payments or from Liquidation Proceeds, Insurance
        Proceeds or Subsequent Recoveries, shall be held by the Master Servicer for
        and
        on behalf of the Trustee and the related Certificateholders and shall be
        and
        remain the sole and exclusive property of the Trustee; provided, however,
        that
        the Master Servicer and each Servicer shall be entitled to setoff against,
        and
        deduct from, any such funds any amounts that are properly due and payable
        to the
        Master Servicer or such Servicer to the extent provided under this Agreement
        or
        the applicable Servicing Agreement.

       

      Section
        3.09                                Standard
        Hazard Insurance and Flood Insurance Policies.

       

      (a)           For
        each Mortgage Loan, the Master Servicer shall enforce any obligation of the
        Servicers under the related Servicing Agreement to maintain or cause to be
        maintained standard fire and casualty insurance and, where applicable, flood
        insurance, all in accordance with the provisions of the related Servicing
        Agreement. It is understood and agreed that such insurance shall be with
        insurers meeting the eligibility requirements set forth in the applicable
        Servicing Agreement and that no earthquake or other additional insurance
        is to
        be required of any Mortgagor or to be maintained on property acquired in
        respect
        of a defaulted loan, other than pursuant to such applicable laws and regulations
        as shall at any time be in force and as shall require such additional
        insurance.

       

      (b)           Pursuant
        to Section 4.01 and 4.02, any amounts collected by the Servicers or the Master
        Servicer, or by any Servicer, under any insurance policies (other than amounts
        to be applied to the restoration or repair of the property subject to the
        related Mortgage or released to the Mortgagor in accordance with the applicable
        Servicing Agreement) shall be deposited into the Master Servicer Collection
        Account, subject to withdrawal pursuant to Section 4.02 and 4.03. Any cost
        incurred by the Master Servicer or any Servicer in maintaining any such
        insurance if the Mortgagor defaults in its obligation to do so shall be added
        to
        the amount owing under the Mortgage Loan where the terms of the Mortgage
        Loan so
        permit; provided, however, that the addition of any such cost shall not be
        taken
        into account for purposes of calculating the distributions to be made to
        Certificateholders and shall be recoverable by the Master Servicer or such
        Servicer pursuant to Sections 4.02 and 4.03.

       

      Section
        3.10                                Presentment
        of Claims and Collection of Proceeds.

       

      The
        Master Servicer shall (to the extent provided in the applicable Servicing
        Agreement) cause the related Servicer to prepare and present on behalf of
        the
        Trustee and the Certificateholders all claims under the Insurance Policies
        and
        take such actions (including the negotiation, settlement, compromise or
        enforcement of the insured’s claim) as shall be necessary to realize recovery
        under such policies. Any proceeds disbursed to the Master Servicer (or disbursed
        to a Servicer and remitted to the Master Servicer) in respect of such policies,
        bonds or contracts shall be promptly deposited in the Master Servicer Collection
        Account for deposit in the Distribution Account upon receipt, except that
        any
        amounts realized that are to be applied to the repair or restoration of the
        related Mortgaged Property, which repair or restoration the owner of such
        Mortgaged Property or EMC, as applicable, has agreed to make as a condition
        precedent to the presentation of claims on the related Mortgage Loan to the
        insurer under any applicable Insurance Policy need not be so deposited (or
        remitted).

       

      Section
        3.11                                Maintenance
        of the Primary Mortgage Insurance Policies.

       

      (a)           The
        Master Servicer shall not take, or authorize any Servicer (to the extent
        such
        action is prohibited under the applicable Servicing Agreement) to take, any
        action that would result in noncoverage under any applicable Primary Mortgage
        Insurance Policy of any loss which, but for the actions of the Master Servicer
        or such Servicer, would have been covered thereunder. The Master Servicer
        shall
        use its best reasonable efforts to cause each Servicer (to the extent required
        under the related Servicing Agreement) to keep in force and effect (to the
        extent that the Mortgage Loan requires the Mortgagor to maintain such
        insurance), primary mortgage insurance applicable to each Mortgage Loan in
        accordance with the provisions of this Agreement and the related Servicing
        Agreement, as applicable. The Master Servicer shall not, and shall not authorize
        any Servicer (to the extent required under the related Servicing Agreement)
        to,
        cancel or refuse to renew any such Primary Mortgage Insurance Policy that
        is in
        effect at the date of the initial issuance of the Mortgage Note and is required
        to be kept in force hereunder except in accordance with the provisions of
        this
        Agreement and the related Servicing Agreement, as applicable.

       

      (b)           The
        Master Servicer agrees to present, or to cause each Servicer (to the extent
        required under the related Servicing Agreement) to present, on behalf of
        the
        Trustee and the Certificateholders, claims to the insurer under any Primary
        Mortgage Insurance Policies and, in this regard, to take such reasonable
        action
        as shall be necessary to permit recovery under any Primary Mortgage Insurance
        Policies respecting defaulted Mortgage Loans. Pursuant to Section 4.01 and
        4.02,
        any amounts collected by the Master Servicer or any Servicer under any Primary
        Mortgage Insurance Policies shall be deposited in the Master Servicer Collection
        Account, subject to withdrawal pursuant to Sections 4.02 and 4.03.

       

      Section
        3.12                                Trustee
        to Retain Possession of Certain Insurance Policies and
        Documents.

       

      The
        Trustee (or the Custodian, as directed by the Trustee), shall retain possession
        and custody of the originals (to the extent available) of any Primary Mortgage
        Insurance Policies, or certificate of insurance if applicable, and any
        certificates of renewal as to the foregoing as may be issued from time to
        time
        as contemplated by this Agreement. Until all amounts distributable in respect
        of
        the Certificates have been distributed in full and the Master Servicer otherwise
        has fulfilled its obligations under this Agreement, the Trustee (or its
        Custodian, if any, as directed by the Trustee) shall also retain possession
        and
        custody of each Mortgage File in accordance with and subject to the terms
        and
        conditions of this Agreement. The Master Servicer shall promptly deliver
        or
        cause to be delivered to the Trustee (or the Custodian, as directed by the
        Trustee), upon the execution or receipt thereof the originals of any Primary
        Mortgage Insurance Policies, any certificates of renewal, and such other
        documents or instruments that constitute portions of the Mortgage File that
        come
        into the possession of the Master Servicer from time to time.

       

      Section
        3.13                                Realization
        Upon Defaulted Mortgage Loans.

       

      The
        Master Servicer shall cause each Servicer (to the extent required under the
        related Servicing Agreement) to foreclose upon, repossess, pursue loss
        mitigation practices or otherwise comparably convert the ownership of Mortgaged
        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, all in accordance with the applicable Servicing
        Agreement.

       

      Section
        3.14                                Compensation
        for the Master Servicer.

       

      The
        Master Servicer will be entitled to all income and gain realized from any
        investment of funds in the Master Servicer Collection Account, pursuant to
        Article IV, for the performance of its activities hereunder. Servicing
        compensation in the form of assumption fees, if any, late payment charges,
        as
        collected, if any, or otherwise (including any prepayment premium or penalty)
        shall be retained by the applicable Servicer and shall not be deposited in
        the
        related Protected Account. The Master Servicer 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
        3.15                                REO
        Property.

       

      (a)           In
        the event the Trust Fund acquires ownership of any REO Property in respect
        of
        any related Mortgage Loan, the deed or certificate of sale shall be issued
        to
        the Trustee, or to its nominee, on behalf of the related Certificateholders.
        The
        Master Servicer shall, to the extent provided in the applicable Servicing
        Agreement, cause the applicable Servicer to sell any REO Property as
        expeditiously as possible and in accordance with the provisions of this
        Agreement and the related Servicing Agreement, as applicable. Pursuant to
        its
        efforts to sell such REO Property, the Master Servicer shall cause the
        applicable Servicer to protect and conserve, such REO Property in the manner
        and
        to the extent required by the applicable Servicing Agreement, in accordance
        with
        the REMIC Provisions and in a manner that does not result in a tax on “net
        income from foreclosure property” or cause such REO Property to fail to qualify
        as “foreclosure property” within the meaning of Section 860G(a)(8) of the
        Code.

       

      (b)           The
        Master Servicer shall, to the extent required by the related Servicing
        Agreement, cause the applicable Servicer to deposit all funds collected and
        received in connection with the operation of any REO Property in the related
        Protected Account.

       

      (c)           The
        Master Servicer and the applicable Servicer, upon the final disposition of
        any
        REO Property, shall be entitled to reimbursement for any related unreimbursed
        Monthly Advances and other unreimbursed advances as well as any unpaid Servicing
        Fees from Liquidation Proceeds received in connection with the final disposition
        of such REO Property; provided
        that, any such unreimbursed Monthly Advances as well as any unpaid Servicing
        Fees may be reimbursed or paid, as the case may be, prior to final disposition,
        out of any net rental income or other net amounts derived from such REO
        Property.

       

      (d)           To
        the extent provided in the related Servicing Agreement, the Liquidation Proceeds
        from the final disposition of the REO Property, net of any payment to the
        Master
        Servicer and the applicable Servicer as provided above, subject to approval
        by
        the Master Servicer, shall be deposited in the related Protected Account
        on or
        prior to the Determination Date in the month following receipt thereof and
        be
        remitted by wire transfer in immediately available funds to the Master Servicer
        for deposit into the Master Servicer Collection Account on the next succeeding
        Servicer Remittance Date.

       

      Section
        3.16                                Annual
        Statement as to Compliance.

       

      The
        Master Servicer shall deliver (or otherwise make available) to the Depositor
        and
        the Trustee not later than March 15th of each
        calendar
        year beginning in 2008, an Officer’s Certificate (an “Annual Statement of
        Compliance”) stating that (i) a review of the activities of the Master Servicer
        during the preceding calendar year and of its performance under this Agreement
        has been made under such officer’s supervision and (ii) to the best of such
        officer’s knowledge, based on such review, the Master Servicer has fulfilled all
        of its obligations under this Agreement in all material respects throughout
        such
        year, 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 of the cure provisions thereof.  Such Annual
        Statement of Compliance shall contain no restrictions or limitations on its
        use.  The Master Servicer shall enforce the obligations of each
        Servicer, to the extent set forth in the related Servicing Agreement, to
        deliver
        a similar Annual Statement of Compliance by that Servicer to the Depositor
        and
        the Trustee as described above as and when required with respect to the Master
        Servicer.  In the event that certain servicing responsibilities with
        respect to any Mortgage Loan have been delegated by the Master Servicer or
        a
        Servicer to a subservicer or subcontractor, each such entity shall cause
        such
        subservicer or subcontractor (and with respect to each Servicer, the Master
        Servicer shall enforce the obligation of such Servicer to the extent required
        under the related Servicing Agreement) to deliver a similar Annual Statement
        of
        Compliance by such subservicer or subcontractor to the Depositor, the Master
        Servicer and the Trustee as described above as and when required with respect
        to
        the Master Servicer or the related Servicer (as the case may be).

      

      Failure
        of the Master Servicer to comply with this Section 3.16 (including with respect
        to the timeframes required herein) shall be deemed an Event of Default, and
        at
        the written direction of the Depositor the Trustee shall, in addition to
        whatever rights the Trustee may have under this Agreement and at law or equity
        or to damages, including injunctive relief and specific performance, upon
        notice
        immediately terminate all of the rights and obligations of the Master Servicer
        under this Agreement and in and to the Mortgage Loans and the proceeds thereof
        without compensating the Master Servicer for the same (but subject to the
        Master
        Servicer’s rights to payment of any Master Servicing Compensation and
        reimbursement of all amounts for which it is entitled to be reimbursed prior
        to
        the date of termination). This paragraph shall supersede any other provision
        in
        this Agreement or any other agreement to the contrary.

      

      In
        the event the Master Servicer, any
        Servicer or any subservicer
        or subcontractor engaged by either such party is terminated or resigns pursuant
        to the terms of this Agreement, or any other applicable agreement in the
        case of
        a Servicer, a subservicer or subcontractor, as the case may be, such party
        shall
        provide an Annual Statement of Compliance pursuant to this Section 3.16 or
        to
        the related section of such other applicable agreement, as the case may be,
        as
        to the performance of its obligations with respect to the period of time
        it was
        subject to this Agreement or any other applicable agreement, as the case
        may be
        notwithstanding any such termination or resignation.

      

      Section
        3.17                                Assessments
        of Compliance and Attestation Reports.

       

      Pursuant
        to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation
        AB,
        each of the Master Servicer, the Trustee and the Custodian (to the extent
        set
        forth in this Section) (each, an “Attesting Party”), each at its own expense,
        shall deliver (or otherwise make available) to the Master Servicer, the Trustee
        and the Depositor on or before March 15th of each
        calendar
        year beginning in 2008, a report regarding such Attesting Party’s assessment of
        compliance (an “Assessment of Compliance”) with the Servicing Criteria during
        the preceding calendar year.  The Assessment of Compliance, as set
        forth in Regulation AB, must contain the following:

       

      (a)           A
        statement by an authorized officer of such Attesting Party of its authority
        and
        responsibility for assessing compliance with the Servicing Criteria applicable
        to the related Attesting Party;

       

      (b)           A
        statement by an authorized officer that such Attesting Party used the Servicing
        Criteria attached as Exhibit L hereto, and which will also be attached to
        the
        Assessment of Compliance, to assess compliance with the Servicing Criteria
        applicable to the related Attesting Party;

       

      (c)           An
        assessment by such officer of the related Attesting Party’s compliance with the
        applicable Servicing Criteria for the period consisting of the preceding
        calendar year, including disclosure of any material instance of noncompliance
        with respect thereto during such period, which assessment shall be based
        on the
        activities such Attesting Party performs with respect to asset-backed securities
        transactions taken as a whole involving the related Attesting Party, that
        are
        backed by the same asset type as the Mortgage Loans;

       

      (d)           A
        statement that a registered public accounting firm has issued an attestation
        report on the related Attesting Party’s Assessment of Compliance for the period
        consisting of the preceding calendar year; and

       

      (e)           A
        statement as to which of the Servicing Criteria, if any, are not applicable
        to
        the related Attesting Party, which statement shall be based on the activities
        such Attesting Party performs with respect to asset-backed securities
        transactions taken as a whole involving such Attesting Party, that are backed
        by
        the same asset type as the Mortgage Loans.

       

      Such
        report at a minimum shall address each of the Servicing Criteria specified
        on
        Exhibit L hereto which are indicated as applicable to the related Attesting
        Party.

       

      On
        or
        before March 15th of each
        calendar
        year beginning in 2008, each Attesting Party shall furnish to the Master
        Servicer, the Depositor and the Trustee a report (an “Attestation Report”) by a
        registered public accounting firm that attests to, and reports on, the
        Assessment of Compliance made by the related Attesting Party, as required
        by
        Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation
        AB,
        which Attestation Report must be made in accordance with standards for
        attestation reports issued or adopted by the Public Company Accounting Oversight
        Board.

       

      The
        Master Servicer shall enforce the obligation of each Servicer to deliver
        to the
        Trustee, the Master Servicer and the Depositor an Assessment of Compliance
        and
        Attestation Report as and when provided in the related Servicing Agreement.
        Each
        of the Master Servicer and the Trustee shall cause, and the Master Servicer
        shall enforce the obligation (as and when provided in the related Servicing
        Agreement) of each Servicer to cause, any subservicer and each subcontractor
        (to
        the extent such subcontractor is determined by the Master Servicer or the
        Trustee, as applicable, to be “participating in the servicing function” within
        the meaning of Item 1122 of Regulation AB) that is engaged by such Servicer,
        the
        Master Servicer or the Trustee, as applicable, to deliver to the Trustee,
        the
        Master Servicer and the Depositor an Assessment of Compliance and Attestation
        Report as and when provided above. Such Assessment of Compliance, as to any
        subservicer or subcontractor, shall at a minimum address the applicable
        Servicing Criteria specified on Exhibit L hereto which are indicated as
        applicable to any “primary servicer” to the extent such subservicer or
        subcontractor is performing any servicing function for the party who engages
        it
        and to the extent such party is not itself addressing the Servicing Criteria
        related to such servicing function in its own Assessment of
        Compliance.  The Master Servicer shall confirm that each of the
        Assessments of Compliance delivered to it, taken as a whole, address all
        of the
        Servicing Criteria and taken individually address the Servicing Criteria
        for
        each party as set forth in Exhibit L and notify the Depositor of any exceptions.
        Notwithstanding the foregoing, as to any subcontractor, an Assessment of
        Compliance is not required to be delivered unless it is required as part
        of a
        Form 10-K with respect to the Trust Fund.

       

      The
        Custodian shall deliver to the Master Servicer, the Trustee and the Depositor
        an
        Assessment of Compliance and Attestation Report, as and when provided above,
        which shall at a minimum address each of the Servicing Criteria specified
        on
        Exhibit L hereto which are indicated as applicable to a
“custodian”.  Notwithstanding the foregoing, an Assessment of
        Compliance or Attestation Report is not required to be delivered by any
        Custodian unless it is required as part of a Form 10-K with respect to the
        Trust
        Fund.

      

      Failure
        of the Master Servicer to
        comply with this Section 3.17 (including with respect to the timeframes required
        herein) shall
        constitute an Event of Default, and at the written direction of the
        Depositor the Trustee shall, in addition to whatever rights the Trustee may
        have
        under this Agreement and at law or equity or to damages, including injunctive
        relief and specific performance, upon notice immediately terminate all of
        the
        rights and obligations of the Master Servicer under this Agreement and in
        and to
        the Mortgage Loans and the proceeds thereof without compensating the Master
        Servicer for the same (but subject to the Master Servicer’s rights to payment of
        any Master Servicing Compensation and reimbursement of all amounts for which
        it
        is entitled to be reimbursed prior to the date of
        termination).  Failure of the Trustee to comply with this Section 3.17
        (including with respect to the timeframes required in this Section) which
        failure results in a failure to timely file the related Form 10-K, shall
        be
        deemed a default which may result in the termination of the Trustee pursuant
        to
        Section 9.08 of this Agreement and the Depositor may, in addition to whatever
        rights the Depositor may have under this Agreement and at law or equity or
        to
        damages, including injunctive relief and specific performance, upon notice
        immediately terminate all of the rights and obligations of the Trustee under
        this Agreement and in and to the Mortgage Loans and the proceeds thereof
        without
        compensating the Trustee for the same (but subject to the Trustee’s right to
        reimbursement of all amounts for which it is entitled to be reimbursed prior
        to
        the date of termination).  This paragraph shall supersede any other
        provision in this Agreement or any other agreement to the contrary.

      

      In
        the event the Master Servicer, the Custodian, the Trustee or any
        subservicer or subcontractor engaged by any such party is terminated, assigns
        its rights and obligations under, or resigns pursuant to, the terms of the
        Agreement, the related Custodial Agreement, or any other applicable agreement
        in
        the case of a subservicer or subcontractor, as the case may be, such party
        shall
        provide an Assessment of Compliance and cause to be provided an Attestation
        Report pursuant to this Section 3.17 or to the related section of such other
        applicable agreement, as the case may be, notwithstanding any such termination,
        assignment or resignation.

      

      Section
        3.18                                Reports
        Filed with Securities and Exchange Commission.

       

      (a)  (i)
        (A)
        Within 15 days after each Distribution Date, the Trustee shall, in accordance
        with industry standards, prepare and file with the Commission via the Electronic
        Data Gathering and Retrieval System (“EDGAR”), a Distribution Report on Form
        10-D, signed by the Master Servicer, with a copy of the Monthly Statement
        to be
        furnished by the Trustee to the Certificateholders for such Distribution
        Date;
        provided that, the Trustee shall have received no later than five (5) calendar
        days after the related Distribution Date, all information required to be
        provided to the Trustee as described in clause (a)(iv) below.  Any
        disclosure that is in addition to the Monthly Statement and that is required
        to
        be included on Form 10-D (“Additional Form 10-D Disclosure”) shall be, pursuant
        to the paragraph immediately below, reported by the parties set forth on
        Exhibit
        M to the Trustee and the Depositor and approved for inclusion by the Depositor,
        and the Trustee will have no duty or liability for any failure hereunder
        to
        determine or prepare any Additional Form 10-D Disclosure absent such reporting
        (other than with respect to when it is the reporting party as set forth in
        Exhibit M) and approval.

       

      (B)
        Within five (5) calendar days after the related Distribution Date, (i) the
        parties set forth in Exhibit M shall be required to provide, and the Master
        Servicer shall enforce the obligations of each Servicer (to the extent provided
        in the related Servicing Agreement) to provide, pursuant to Section 3.18(a)(iv)
        below, to the Trustee (via email to notifications@fsir.com) and the Depositor,
        to the extent known by a responsible officer thereof, in EDGAR-compatible
        format, or in such other form as otherwise agreed upon by the Trustee and
        the
        Depositor and such party, the form and substance of any Additional Form 10-D
        Disclosure, if applicable, 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.  Subject to the foregoing, the
        Trustee has no duty under this Agreement to monitor or enforce the performance
        by the other parties listed on Exhibit M of their duties under this paragraph
        or
        to 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 Trustee in connection with
        including any Additional Form 10-D Disclosure on Form 10-D pursuant to this
        Section.

       

      (C)
        After
        preparing the Form 10-D, the Trustee shall forward electronically a copy
        of the
        Form 10-D to the Depositor (in the case of any Additional 10-D Disclosure
        and
        otherwise if requested by the Depositor) and the Master Servicer for
        review.  Within two Business Days after receipt of such copy, but no
        later than the 12th calendar day after the Distribution Date (provided that,
        the
        Trustee forwards a copy of the Form 10-D no later than the 10th calendar
        after the
        Distribution Date), the Depositor shall notify the Trustee in writing (via
        email
        to notifications@fsir.com) of any changes to or approval of such Form
        10-D.  In the absence of receipt of any written changes or approval,
        the Trustee shall be entitled to assume that such Form 10-D is in final form
        and
        the Trustee may proceed with the execution and filing of the Form
        10-D.  No later than two (2) Business Days prior to the 15th calendar
        day after the related Distribution Date, a duly authorized officer of the
        Master
        Servicer shall sign the Form 10-D and return an electronic or fax copy of
        such
        signed Form 10-D (with an original executed hard copy to follow by overnight
        mail) to the Trustee.  If a Form 10-D cannot be filed on time or if a
        previously filed Form 10-D needs to be amended, the Trustee shall follow
        the
        procedures set forth in Section 3.18(a)(v)(B). Promptly (but no later than
        one
        (1) Business Day) after filing with the Commission, the Trustee shall make
        available on its internet website identified in Section 6.05 a final executed
        copy of each Form 10-D filed by the Trustee.  The signing party at the
        Master Servicer can be contacted as set forth in Section 11.07.  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 shall notify the
        Trustee
        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, if the answer to
        the
        questions should be “no”.  The Trustee shall be entitled to rely on
        the representations in Section 2.06(g) or any such notice in preparing,
        executing and/or filing any such report. The parties to this Agreement
        acknowledge that the performance by the Master Servicer and the Trustee of
        their
        respective duties under Sections 3.18(a)(i) and (v) 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 such Sections.  Neither the Master Servicer nor the Trustee
        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 a party’s failure to deliver on a
        timely basis, any information from such party needed to prepare, arrange
        for
        execution or file such Form 10-D, not resulting from its own negligence,
        bad
        faith or willful misconduct.

       

      (ii)
        (A)
        Within four (4) Business Days after the occurrence of an event requiring
        disclosure on Form 8-K (each such event, a “Reportable Event”), the Trustee
        shall prepare and file, at the direction of the Depositor, on behalf of the
        Trust, 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, pursuant to the paragraph immediately below,
        reported by the parties set forth on Exhibit M to the Trustee and the Depositor
        and approved for inclusion by the Depositor, and the Trustee will have no
        duty
        or liability for any failure hereunder to determine or prepare any Form 8-K
        Disclosure Information absent such reporting (other than with respect to
        when it
        is the reporting party as set forth in Exhibit M) and approval.

       

      (B)
        For
        so long as the Trust is subject to the Exchange Act reporting requirements,
        no
        later than the close of business on the 2nd Business Day after the occurrence
        of
        a Reportable Event  (i) the parties set forth in Exhibit M shall be
        required pursuant to Section 3.18(a)(iv) below to provide, and the Master
        Servicer will enforce the obligations of each Servicer (to the extent provided
        in the related Servicing Agreement) to provide to the Trustee and the Depositor,
        to the extent known by a responsible officer thereof, in EDGAR-compatible
        format, or in such other form as otherwise agreed upon by the Trustee and
        the
        Depositor and such party, the form and substance of any Form 8-K Disclosure
        Information, if applicable, and (ii) the Depositor shall approve, as to form
        and
        substance, or disapprove, as the case may be, the inclusion of the Form 8-K
        Disclosure Information on Form 8-K. The Depositor shall be responsible for
        any
        reasonable fees and expenses assessed or incurred by the Trustee in connection
        with including any Form 8-K Disclosure Information on Form 8-K pursuant to
        this
        Section.

       

      (C)
        After
        preparing the Form 8-K, the Trustee shall forward electronically a copy of
        the
        Form 8-K to the Depositor and the Master Servicer for review.  No
        later than the close of business New York City time on the 3rd Business Day
        after the Reportable Event, a duly authorized officer of the Master Servicer
        shall sign the Form 8-K and return an electronic or fax copy of such signed
        Form
        8-K (with an original executed hard copy to follow by overnight mail) to
        the
        Trustee.  Promptly, but no later than the close of business on the 3rd
        Business Day after the Reportable Event (provided that, the Trustee forwards
        a
        copy of the Form 8-K no later than noon New York time on the third Business
        Day
        after the Reportable Event), the Depositor shall notify the Trustee in writing
        via email to notifications@fsir.com of any changes to or approval of such
        Form
        8-K.  In the absence of receipt of any written changes or approval,
        the Trustee shall be entitled to assume that such Form 8-K is in final form
        and
        the Trustee may proceed with the execution and filing of the 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 Trustee shall follow the procedures set
        forth
        in Section 3.18(a)(v)(B).  Promptly (but no later than one (1)
        Business Day) after filing with the Commission, the Trustee shall, make
        available on its internet website a final executed copy of each Form 8-K
        filed
        by the Trustee.  The signing party at the Master Servicer can be
        contacted as set forth in Section 11.07.  The parties to this
        Agreement acknowledge that the performance by Master Servicer and the Trustee
        of
        their respective duties under this Section 3.18(a)(ii) 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 3.18(a)(ii).  Neither the Master Servicer nor the
        Trustee 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 8-K, where such failure results from a party’s failure to deliver
        on a timely basis, any information from such party needed to prepare, arrange
        for execution or file such Form 8-K, not resulting from its own negligence,
        bad
        faith or willful misconduct.

       

      (iii)
        (A)
        Within 90 days after the end of each fiscal year of the Trust or such earlier
        date as may be required by the Exchange Act (the “Form 10-K Filing Deadline”)
        (it being understood that the fiscal year for the Trust ends on December
        31st of
        each year), commencing in March 2008, the Trustee 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 Trustee within
        the
        applicable time frames set forth in this Agreement, (I) an annual compliance
        statement for each Servicer, the Master Servicer, the Trustee and any
        subservicer or subcontractor, as applicable, as described under Section 3.16,
        (II)(A) the annual reports on assessment of compliance with Servicing Criteria
        for each Servicer, the Master Servicer, each subservicer and subcontractor
        participating in the servicing function, the Trustee and the Custodian, as
        described under Section 3.17, and (B) if any such report on assessment of
        compliance with Servicing Criteria described under Section 3.17 identifies
        any
        material instance of noncompliance, disclosure identifying such instance
        of
        noncompliance, or if any such report on assessment of compliance with Servicing
        Criteria described under Section 3.17 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, (III)(A) the registered public accounting firm
        attestation report for each Servicer, the Master Servicer, the Trustee, each
        subservicer, each subcontractor, as applicable, and the Custodian, as described
        under Section 3.17, and (B) if any registered public accounting firm attestation
        report described under Section 3.17 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 3.18 (a)(iii)(D) below (provided, however,
        that the Trustee may omit from the Form 10-K any annual compliance statement,
        assessment of compliance or attestation report that is not required to be
        filed
        with such Form 10-K pursuant to Regulation AB). 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, pursuant to the paragraph
        immediately below, reported by the parties set forth on Exhibit M to the
        Trustee
        and the Depositor and approved for inclusion by the Depositor, and the Trustee
        will have no duty or liability for any failure hereunder to determine or
        prepare
        any Additional Form 10-K Disclosure absent such reporting (other than in
        the
        case where the Trustee is the reporting party as set forth in Exhibit M)
        and
        approval.

       

      (B)
        No
        later than March 15th of each
        year that
        the Trust is subject to the Exchange Act reporting requirements, commencing
        in
        2008, (i) the parties set forth in Exhibit M shall be required to provide,
        and
        the Master Servicer shall enforce the obligations of each Servicer (to the
        extent provided in the related Servicing Agreement) to provide, pursuant
        to
        Section 3.18(a)(iv) below to the Trustee and the Depositor, to the extent
        known
        by a responsible officer thereof, in EDGAR-compatible format, or in such
        other
        form as otherwise agreed upon by the Trustee and the Depositor and such party,
        the form and substance of any Additional Form 10-K Disclosure, if applicable,
        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 Depositor shall be responsible for any reasonable fees and
        expenses assessed or incurred by the Trustee in connection with including
        any
        Additional Form 10-K Disclosure on Form 10-K pursuant to this
        Section.

       

      (C)
        After
        preparing the Form 10-K, the Trustee shall forward electronically a copy
        of the
        Form 10-K to the Depositor (only in the case where such Form 10-K includes
        Additional Form 10-K Disclosure and otherwise if requested by the Depositor)
        and
        the Master Servicer for review.  Within three Business Days after
        receipt of such copy, but no later than March 25th (provided
        that,
        the Trustee forwards a copy of the Form 10-K no later than four Business
        Days
        after March 15th), the Depositor shall notify the Trustee 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,
        the Trustee shall be entitled to assume that such Form 10-K is in final form
        and
        the Trustee may proceed with the execution and filing of the Form
        10-K.  No later than the close of business Eastern Standard time on
        the 4th Business Day prior to the Form 10-K Filing Deadline, an officer of
        the
        Master Servicer in charge of the master servicing function shall sign the
        Form
        10-K and return an electronic or fax copy of such signed Form 10-K (with
        an
        original executed hard copy to follow by overnight mail) to the
        Trustee.  If a Form 10-K cannot be filed on time or if a previously
        filed Form 10-K needs to be amended, the Trustee will follow the procedures
        set
        forth in Section 3.18(a)(v)(B).  Promptly (but no later than one (1)
        Business Day) after filing with the Commission, the Trustee shall make available
        on its internet website a final executed copy of each Form 10-K filed by
        the
        Trustee.  The signing party at the Master Servicer can be contacted
as set forth in Section
        11.07.  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 requirements for the past 90
        days.  The Depositor shall notify the Trustee in writing, no later
        than the 15th calendar day in March of each year in which the Trust is subject
        to the reporting requirements of the Exchange Act with respect to the filing
        of
        a report on Form 10-K, if the answer to the questions should be
“no”.  The Trustee shall be entitled to rely on the representations in
        Section 2.06(g) or any such notice in preparing, executing and/or filing
        any
        such report.  The parties to this Agreement acknowledge that the
        performance by the Master Servicer and the Trustee of their respective duties
        under Sections 3.18(a)(iii) and (iv) 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
        such
        Sections and Sections 3.16 and Section 3.17.  Neither the Master
        Servicer nor the Trustee 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 Master
        Servicer’s or the Trustee’s inability or failure to receive, on a timely basis,
        any information from any other party hereto needed to prepare, arrange for
        execution or file such Form 10-K, not resulting from its own negligence,
        bad
        faith or willful misconduct.

       

      (D)
        Each
        Form 10-K shall include a certification (the “Sarbanes-Oxley Certification”)
        required to be included therewith pursuant to the Sarbanes-Oxley Act which
        shall
        be signed by the Certifying Person and delivered to the Trustee no later
        than
        March 15th of
        each year in which the Trust is subject to the reporting requirements of
        the
        Exchange Act.  The Master Servicer shall cause any Servicer, and any
        subservicer or subcontractor engaged by it to, provide to the Person who
        signs
        the Sarbanes-Oxley Certification (the “Certifying Person”), by March 15th of
        each year in which the Trust is subject to the reporting requirements of
        the
        Exchange Act (or such other date specified in the related Servicing Agreement)
        and otherwise within a reasonable period of time upon request, a certification
        (each, a “Back-Up Certification”), in the form attached hereto as Exhibit K,
        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.  An 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 as set
        forth in Section 11.07.  In connection with the filing
        of any
        Form 10-K hereunder, the Trustee shall sign a Back-Up Certification
        substantially in the form of Exhibit Q; provided, however, that the Trustee
        shall not be required to undertake an analysis of any accountant’s report
        attached as an exhibit to the Form 10-K.  In the event the
        Trustee is terminated or resigns pursuant to the terms of this Agreement
        or any
        subcontractor or subservicer is terminated pursuant to the related servicing
        agreement, the Trustee, subcontractor or subservicer, as applicable, shall
        provide a Back-Up Certification to the Certifying Person pursuant to this
        Section 3.18(b) with respect to the period of time it was subject to this
        Agreement or the related servicing agreement, as applicable.

       

      (iv)
        With
        respect to any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure
        or any Form 8-K Disclosure Information (collectively, the “Additional
        Disclosure”) relating to the Trust Fund, the Trustee’s obligation to include
        such Additional Information in the applicable Exchange Act report is subject
        to
        receipt from the entity that is indicated in Exhibit M as the responsible
        party
        for providing that information, if other than the Trustee, as and when required
        as described in Section 3.18(a)(i) through (iii) above.  Such
        Additional Disclosure shall be accompanied by a notice substantially in the
        form
        of Exhibit N.  Each of the Master Servicer, the Seller, the Trustee,
        the Custodian and the Depositor hereby agrees to notify and provide, and
        the
        Master Servicer agrees to enforce the obligations (to the extent provided
        in the
        related Servicing Agreement) of each Servicer to notify and provide, to the
        extent known to the Trustee and the Depositor all Additional Disclosure relating
        to the Trust Fund, with respect to which such party is indicated in Exhibit
        M as
        the responsible party for providing that information.  The Depositor
        shall be responsible for any reasonable fees and expenses assessed or incurred
        by the Trustee in connection with including any Additional Disclosure
        information pursuant to this Section.

       

       (v)
        (A) On or prior to January 30th of the first year in which the Trustee is
        able
        to do so under applicable law, the Trustee shall prepare and file a Form
        15
        relating to the automatic suspension of reporting in respect of the Trust
        under
        the Exchange Act.

       

      (B)
        In
        the event that the Trustee 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 Trustee shall promptly notify the Depositor and
        the
        Master Servicer.  In the case of Form 10-D and Form 10-K, the
        Depositor, the Master Servicer and the Trustee shall 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 Trustee 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, and such amendment relates to any Additional
        Disclosure, the Trustee shall notify the Depositor and the parties affected
        thereby and such parties will cooperate to prepare any necessary Form 8-K,
        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 an appropriate officer of the Master
        Servicer.  The parties hereto acknowledge that the performance by the
        Master Servicer and the Trustee of their respective duties under this Section
        3.18(a)(v) 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
        the
        Master Servicer and the Depositor timely performing their duties under this
        Section.  Neither the Master Servicer nor the Trustee shall have any
        liability for any loss, expense, damage or 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 Form 8-K, 10-D or 10-K, where such failure
        results from a party’s failure to deliver on a timely basis, any information
        from such party needed to prepare, arrange for execution or file such Form
        15,
        Form 12b-25 or any amendments to Form 8-K, 10-D or 10-K, not resulting from
        its
        own negligence, bad faith or willful misconduct.

       

      The
        Depositor agrees to promptly furnish to the Trustee, from time to time upon
        request, such further information, reports and financial statements within
        its
        control related to this Agreement, the Mortgage Loans as the Trustee reasonably
        deems appropriate to prepare and file all necessary reports with the Commission.
        The Trustee shall have no responsibility to file any items other than those
        specified in this Section 3.18; provided, however, the Trustee shall cooperate
        with the Depositor in connection with any additional filings with respect
        to the
        Trust Fund as the Depositor deems necessary under the Exchange Act. Copies
        of
        all reports filed by the Trustee under the Exchange Act shall be available
        on
        the Trustee’s website initially located at www.usbank.com/abs.  Fees
        and expenses incurred by the Trustee in connection with this Section 3.18
        shall
        not be reimbursable from the Trust Fund.

       

      (b)  The
        Trustee shall indemnify and hold harmless the Depositor and the Master Servicer
        and each of its officers, directors and affiliates from and against any losses,
        damages, penalties, fines, forfeitures, reasonable and necessary legal fees
        and
        related costs, judgments and other costs and expenses arising out of or based
        upon a breach of the Trustee’s obligations under Sections 3.16, 3.17 and 3.18 or
        the Trustee’s negligence, bad faith or willful misconduct in connection
        therewith. In addition, the Trustee shall indemnify and hold harmless the
        Depositor and the Master Servicer and each of their respective officers,
        directors and affiliates from and against any losses, damages, penalties,
        fines,
        forfeitures, reasonable and necessary legal fees and related costs, judgments
        and other reasonable costs and expenses arising out of or based upon (i)
        any
        untrue statement or alleged untrue statement of any material fact contained
        in
        any Back-Up Certification, any Annual Statement of Compliance, any Assessment
        of
        Compliance or any Additional Disclosure provided by the Trustee on its behalf
        or
        on behalf of any subservicer or subcontractor engaged by the Trustee pursuant
        to
        Section 3.16, 3.17 or 3.18 (the
“Trustee Information”), or (ii) any omission or
        alleged omission to state
        therein a material fact required to be stated therein or necessary to make
        the
        statements therein, in light of the circumstances in which they were made,
        not
        misleading; provided, by way of clarification, that this paragraph shall
        be
        construed solely by reference to the Trustee Information and not to any other
        information communicated in connection with the Certificates, without regard
        to
        whether the Trustee Information or any portion thereof is presented together
        with or separately from such other information.

       

      The
        Depositor shall indemnify and hold harmless the Trustee and the Master Servicer
        and each of its officers, directors and affiliates from and against any losses,
        damages, penalties, fines, forfeitures, reasonable and necessary legal fees
        and
        related costs, judgments and other costs and expenses arising out of or based
        upon a breach of the obligations of the Depositor under Sections 3.16, 3.17
        and
        3.18 or the Depositor’s negligence, bad faith or willful misconduct in
        connection therewith. In addition, the Depositor shall indemnify and hold
        harmless the Master Servicer, the Trustee and each of their respective officers,
        directors and affiliates from and against any losses, damages, penalties,
        fines,
        forfeitures, reasonable and necessary legal fees and related costs, judgments
        and other reasonable costs and expenses arising out of or based upon (i)
        any
        untrue statement or alleged untrue statement of any material fact contained
        in
        any Additional Disclosure provided by the Depositor that is required to be
        filed
        pursuant to this Section 3.18 (the
“Depositor Information”), or (ii)
        any omission or alleged omission to
        state therein a material fact required to be stated therein or necessary
        to make
        the statements therein, in light of the circumstances in which they were
        made,
        not misleading; provided, by way of clarification, that this paragraph shall
        be
        construed solely by reference to the Depositor Information that is required
        to
        be filed and not to any other information communicated in connection with
        the
        Certificates, without regard to whether the Depositor Information or any
        portion
        thereof is presented together with or separately from such other
        information.

       

      The
        Master Servicer shall indemnify and hold harmless the Trustee and the Depositor
        and each of its respective officers, directors and affiliates from and against
        any losses, damages, penalties, fines, forfeitures, reasonable and necessary
        legal fees and related costs, judgments and other reasonable costs and expenses
        arising out of or based upon a breach of the obligations of the Master Servicer
        under Sections 3.16, 3.17 and 3.18 or the Master Servicer’s negligence, bad
        faith or willful misconduct in connection therewith.  In addition, the
        Master Servicer shall indemnify and hold harmless the Depositor and each
        of its
        officers, directors and affiliates from and against any losses, damages,
        penalties, fines, forfeitures, reasonable and necessary legal fees and related
        costs, judgments and other costs and expenses arising out of or based upon
        (i)
        any untrue statement or alleged untrue statement of any material fact contained
        in any Annual Statement of Compliance, any Assessment of Compliance, any
        Attestation Report or any Additional Disclosure or other information provided
        by
        the Master Servicer on its behalf or on behalf of any subservicer or
        subcontractor engaged by the Master Servicer pursuant to Section 3.16, 3.17
        or
        3.18 (the “Master Servicer
        Information”), or (ii) any omission or alleged omission to state therein a
        material fact required to be stated therein or necessary to make the statements
        therein, in light of the circumstances in which they were made, not misleading;
        provided, by way of clarification, that this paragraph shall be construed
        solely
        by reference to the Master Servicer Information and not to any other information
        communicated in connection with the Certificates, without regard to whether
        the
        Master Servicer Information or any portion thereof is presented together
        with or
        separately from such other information.

       

      If
        the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless the Depositor, the Trustee or the Master Servicer, as applicable,
        then
        the defaulting party, in connection with any conduct for which it is providing
        indemnification under this Section 3.18(c), agrees that it shall contribute
        to
        the amount paid or payable by the other parties as a result of the losses,
        claims, damages or liabilities of the other party in such proportion as is
        appropriate to reflect the relative fault and the relative benefit of the
        respective parties.

       

      The
        indemnification provisions set forth in this Section 3.18(c) shall survive
        the
        termination of this Agreement or the termination of any party to this
        Agreement.

       

      (c)  Failure
        of the Master Servicer to comply with this Section 3.18 (including with respect
        to the timeframes required herein) shall, constitute an Event of Default,
        and at
        the written direction of the Depositor the Trustee shall, in addition to
        whatever rights the Trustee may have under this Agreement and at law or equity
        or to damages, including injunctive relief and specific performance, upon
        notice
        immediately terminate all of the rights and obligations of the Master Servicer
        under this Agreement and in and to the Mortgage Loans and the proceeds thereof
        without compensating the Master Servicer for the same (but subject to the
        Master
        Servicer’s rights to payment of any Master Servicing Compensation and
        reimbursement of all amounts for which it is entitled to be reimbursed prior
        to
        the date of termination).  Failure of the Trustee to comply with this
        Section 3.18 (including with respect to the timeframes required in this Section)
        which failure results in a failure to timely file the related Form 10-K,
        shall
        be deemed a default which may result in the termination of the Trustee pursuant
        to Section 9.08 of this Agreement and the Depositor may, in addition to whatever
        rights the Depositor may have under this Agreement and at law or equity or
        to
        damages, including injunctive relief and specific performance, upon notice
        immediately terminate all of the rights and obligations of the Trustee under
        this Agreement and in and to the Mortgage Loans and the proceeds thereof
        without
        compensating the Trustee for the same (but subject to the Trustee’s right to
        reimbursement of all amounts for which it is entitled to be reimbursed prior
        to
        the date of termination).  This paragraph shall supersede any other
        provision in this Agreement or any other agreement to the contrary. In
        connection with the termination of the Master Servicer pursuant to this Section
        3.18(d), the Trustee shall be entitled to reimbursement of all costs and
        expenses associated with such termination to the extent set forth in Section
        9.05.  Notwithstanding anything to the contrary in this Agreement, no
        Event of Default by the Master Servicer or default by the Trustee shall have
        occurred with respect to any failure to properly prepare, execute and/or
        timely
        file any report on Form 8-K, Form 10-D or Form 10-K, any Form 15 or Form
        12b-25
        or any amendments to Form 8-K, 10-D or 10-K, where such failure results from
        any
        party’s failure to deliver on a timely basis, any information from such party
        needed to prepare, arrange for execution or file any such report, Form or
        amendment, and does not result from its own negligence, bad faith or willful
        misconduct.

       

      (d)  Notwithstanding
        the provisions of Section 11.02, this Section 3.18 may be amended without
        the
        consent of the Certificateholders.

       

      (e)  Any
        report, notice or notification to be delivered by the Master Servicer or
        the
        Trustee to the Depositor pursuant to this Section 3.18, may be delivered
        via
        email to RegABNotifications@bear.com or, in the case of a notification,
        telephonically by calling Reg AB Compliance Manager at (212)
        272-7525.

       

      Section
        3.19                                Intention
        of the Parties and Interpretation.

       

      Each
        of the parties acknowledges and
        agrees that the purpose of Section 3.16, Section 3.17 and Section 3.18 of
        this
        Agreement is to facilitate compliance by the Seller and the Depositor with
        the
        provisions of Regulation AB. Therefore, each of the parties agrees that (a)
        the
        obligations of the parties hereunder shall be interpreted in such a manner
        as to
        accomplish that purpose, (b) the parties’ obligations hereunder will be
        supplemented and modified as necessary to be consistent with any such
        amendments, interpretive advice or guidance provided by the Commission in
        respect of the requirements of Regulation AB, (c) the parties shall comply
        with
        reasonable requests made by the Seller, the Trustee or the Depositor for
        delivery of additional or different information as the Seller, the Trustee
        or
        the Depositor may determine in good faith is necessary to comply with the
        provisions of Regulation AB, and (d) no amendment of this Agreement shall
        be
        required to effect any such changes in the parties’ obligations as are necessary
        to accommodate evolving interpretations of the provisions of Regulation
        AB.

       

      Section
        3.20                                UCC.

       

      The
        Depositor shall inform the Trustee in writing of any Uniform Commercial Code
        financing statements that were filed on the Closing Date in connection with
        the
        Trust with stamped recorded copies of such financing statements to be delivered
        to the Trustee promptly upon receipt by the Depositor. If directed by the
        Depositor in writing, the Trustee will file any continuation statements solely
        at the expense of the Depositor. The Depositor shall file any financing
        statements or amendments thereto required by any change in the Uniform
        Commercial Code.

       

      Section
        3.21                                Optional
        Purchase of Defaulted Mortgage Loans.

       

      (a)           With
        respect to any Mortgage Loan which as of the first day of a Fiscal Quarter
        is
        delinquent in payment by 90 days or more or is an REO Property, the Seller
        has
        the right, but not the obligation, to purchase such Mortgage Loan from the
        Trust
        at a price equal to the Purchase Price; provided however (i) that such Mortgage
        Loan is still 90 days or more delinquent or is an REO Property as of the
        date of
        such purchase and (ii) this purchase option, if not theretofore exercised,
        shall
        terminate on the date prior to the last day of the related Fiscal Quarter.
        This
        purchase option, if not exercised, shall not be thereafter reinstated unless
        the
        delinquency is cured and the Mortgage Loan thereafter again becomes 90 days
        or
        more delinquent or becomes an REO Property, in which case the option shall
        again
        become exercisable as of the first day of the related Fiscal
        Quarter.

       

      EMC
        shall
        have the right, but not the obligation, to purchase any Mortgage Loan from
        the
        Issuing Entity for which (i) the initial Scheduled Payment due to the Seller
        or
        (ii) the initial Scheduled Payment due to the Trust becomes thirty days
        Delinquent; provided, however, such optional purchase shall be exercised
        no
        later than 270th day after
        such
        Mortgage Loan is subject to such optional purchase. Such purchase shall be
        made
        at a price equal to 100% of the Stated Principal Balance thereof plus accrued
        interest thereon at the applicable mortgage rate, from the date through which
        interest was last paid by the related mortgagor or advanced to the first
        day of
        the month in which such amount is to be distributed.

       

      These
        optional purchase rights may be assigned by the Seller to a third party,
        including a holder of a Class of Certificates.

       

      (b)           If
        at any time the Seller remits to the Master Servicer a payment for deposit
        in
        the Master
        Servicer Collection Account covering the amount of the Purchase Price for
        such a Mortgage Loan, and the Seller provides to the Trustee a certification
        signed by a Servicing Officer stating that the amount of such payment has
        been
        deposited in the Master
        Servicer
        Collection Account, then the Trustee shall execute the assignment of such
        Mortgage Loan prepared and delivered to the Trustee, at the request of the
        Seller, without recourse, representation or warranty, to the Seller which
        shall
        succeed to all of the Trustee’s right, title and interest in and to such
        Mortgage Loan, and all security and documents relative thereto.  Such
        assignment shall be an assignment outright and not for security.  The
        Seller will thereupon own such Mortgage, and all such security and documents,
        free of any further obligation to the Trustee or the Certificateholders with
        respect thereto.

       

       

       

      ARTICLE
        IV

      Accounts

       

      Section
        4.01                                Protected
        Accounts.

       

      (a)           The
        Master Servicer shall enforce the obligation of each Servicer to establish
        and
        maintain a Protected Account in accordance with the applicable Servicing
        Agreement, with records to be kept with respect thereto on a Mortgage Loan
        by
        Mortgage Loan basis, into which accounts shall be deposited within two Business
        Days (or as of such other time specified in the related Servicing Agreement)
        of
        receipt and identification, all collections of principal and interest on
        any
        Mortgage Loan and any REO Property received by a Servicer, including Principal
        Prepayments, Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries
        and
        advances made from the Servicer’s own funds (less servicing compensation as
        permitted by the applicable Servicing Agreement in the case of any Servicer)
        and
        all other amounts to be deposited in the applicable Protected Account. Each
        Servicer is hereby authorized to make withdrawals from and deposits to the
        applicable Protected Account for purposes required or permitted by this
        Agreement.   Reconciliations will be prepared for the Protected
        Accounts within 45 calendar days after the bank statement cut-off
        date.  To the extent provided in the related Servicing Agreement, the
        related Protected Account shall be held by a Designated Depository Institution
        and segregated on the books of such institution in the name of the Trustee
        for
        the benefit of Holders of the Certificates.

       

      (b)           To
        the extent provided in the related Servicing Agreement, amounts on deposit
        in a
        Protected Account may be invested in Permitted Investments in the name of
        the
        Trustee for the benefit of Holders of the Certificates and, except as provided
        in the preceding paragraph, not commingled with any other funds. Such Permitted
        Investments shall mature, or shall be subject to redemption or withdrawal,
        no
        later than the date on which such funds are required to be withdrawn for
        deposit
        in the Master Servicer Collection Account, and shall be held until required
        for
        such deposit. The income earned from Permitted Investments made pursuant
        to this
        Section 4.01 shall be paid to the related Servicer under the applicable
        Servicing Agreement, and the risk of loss of moneys required to be distributed
        to the Holders of the Certificates resulting from such investments shall
        be
        borne by and be the risk of the related Servicer. The related Servicer (to
        the
        extent provided in the applicable Servicing Agreement) shall deposit the
        amount
        of any such loss in the related Protected Account within two Business Days
        of
        receipt of notification of such loss but not later than the second Business
        Day
        prior to the Distribution Date on which the moneys so invested are required
        to
        be distributed to the Holders of the Certificates.

       

      (c)           To
        the extent provided in the related Servicing Agreement and subject to this
        Article IV, on or before each Servicer Remittance Date, the related Servicer
        shall withdraw or shall cause to be withdrawn from its Protected Account
        and
        shall immediately deposit or cause to be deposited in the Master Servicer
        Collection Account amounts representing the following collections and payments
        (other than with respect to principal of or interest on the Mortgage Loans
        due
        on or before the Cut-off Date):

       

      (i)           Scheduled
        Payments on the Mortgage Loans received or any related portion thereof advanced
        by such Servicer pursuant to its Servicing Agreement which were due on or
        before
        the related Due Date, net of the amount thereof comprising its Servicing
        Fee or
        any fees with respect to any lender-paid primary mortgage insurance
        policy;

       

      (ii)           Full
        Principal Prepayments received by such Servicer with respect to the Mortgage
        Loans in the related Prepayment Period, with interest to the date of prepayment,
        net of the amount thereof comprising its Servicing Fee;

       

      (iii)           Liquidation
        Proceeds or Subsequent Recoveries received by such Servicer with respect
        to the
        Mortgage Loans during the related calendar month;

       

      (iv)           Partial
        Principal Prepayments received by such Servicer for the Mortgage Loans in
        the
        related Prepayment Period; and

       

      (v)           Any
        amount to be used as a Monthly Advance and any Compensating Interest
        Payments.

       

      (d)           Withdrawals
        may be made from an Account only to make remittances as provided in Sections
        4.01(c), 4.02 and 4.03; to reimburse the Master Servicer or a Servicer for
        Monthly Advances which have been recovered by subsequent collections from
        the
        related Mortgagor; to remove amounts deposited in error; to remove fees,
        charges
        or other such amounts deposited on a temporary basis; or to clear and terminate
        the account at the termination of the Trust Fund in accordance with Section
        10.01. As provided in Sections 4.01(a) and 4.02(b) certain amounts otherwise
        due
        to the Servicers may be retained by them and need not be deposited in the
        Master
        Servicer Collection Account.

       

      Section
        4.02                                Master
        Servicer Collection Account.

       

      (a)  The
        Master Servicer shall establish and maintain in the name of the Trustee,
        for the
        benefit of the Holders of the Certificates, the Master Servicer Collection
        Account as a segregated trust account or accounts. The Master Servicer
        Collection Account shall be an Eligible Account. The Master Servicer will
        deposit in the Master Servicer Collection Account as identified by the Master
        Servicer and as received by the Master Servicer, the following
        amounts:

       

      (i)  
          Any
        amounts withdrawn from a Protected Account for deposit into the Master Servicer
        Collection Account in accordance with the related Servicing
        Agreement;

       

      (ii)
          Any
        Monthly Advance and any Compensating Interest Payments;

       

      (iii)  Any
        Insurance Proceeds or Net Liquidation Proceeds or Subsequent Recoveries received
        by or on behalf of the Master Servicer or which were not deposited in a
        Protected Account;

       

      (iv)  The
        Purchase Price with respect to any Mortgage Loans purchased by the Seller
        pursuant to the Mortgage Loan Purchase Agreement or Sections 2.02 or 2.03
        hereof, any amounts which are to be treated pursuant to Section 2.04 of this
        Agreement as the payment of a Purchase Price in connection with the tender
        of a
        Substitute Mortgage Loan by the Seller, the Purchase Price with respect to
        any
        Mortgage Loans purchased by the Company pursuant to Section 3.21, and all
        proceeds of any Mortgage Loans or property acquired with respect thereto
        repurchased by the Depositor or its designee pursuant to Section
        10.01;

       

      (v)   Any
        amounts required to be deposited with respect to losses on investments of
        deposits in an Account; and

       

      (vi)  Any
        other
        amounts received by or on behalf of the Master Servicer and required to be
        deposited in the Master Servicer Collection Account pursuant to this
        Agreement.

       

      (b)  All
        amounts deposited to the Master Servicer Collection Account shall be held
        by the
        Master Servicer in the name of the Trustee in trust for the benefit of the
        Certificateholders in accordance with the terms and provisions of this
        Agreement. The requirements for crediting the Master Servicer Collection
        Account
        shall be exclusive, it being understood and agreed that, without limiting
        the
        generality of the foregoing, payments in the nature of (i) prepayment or
        late
        payment charges or assumption, tax service, statement account or payoff,
        substitution, satisfaction, release and other like fees and charges and (ii)
        the
        items enumerated in Subsections 4.05(a)(i), (ii), (iii), (iv), (vi), (vii),
        (viii), (ix), (x), (xi), (xii) and (xiii), need not be credited by the Master
        Servicer or the related Servicer to the Distribution Account or the Master
        Servicer Collection Account, as applicable.  Reconciliations will be
        prepared for the Master Servicing Collection Account within 45 calendar days
        after the bank statement cut-off date. In the event that the Master Servicer
        shall deposit or cause to be deposited to the Distribution Account any amount
        not required to be credited thereto, the Trustee, upon receipt of a written
        request therefor signed by a Servicing Officer of the Master Servicer, shall
        promptly transfer such amount to the Master Servicer, any provision herein
        to
        the contrary notwithstanding.

       

      (c)  The
        amount at any time credited to the Master Servicer Collection Account may
        be
        invested, in the name of the Trustee, or its nominee, for the benefit of
        the
        Certificateholders, in Permitted Investments as directed by Master Servicer.
        All
        Permitted Investments shall mature or be subject to redemption or withdrawal
        on
        or before, and shall be held until, the next succeeding Distribution Account
        Deposit Date. Any and all investment earnings on amounts on deposit in the
        Master Servicer Collection Account from time to time shall be for the account
        of
        the Master Servicer. The Master Servicer from time to time shall be permitted
        to
        withdraw or receive distribution of any and all investment earnings from
        the
        Master Servicer Collection Account. The risk of loss of moneys required to
        be
        distributed to the Certificateholders resulting from such investments shall
        be
        borne by and be the risk of the Master Servicer. The Master Servicer shall
        deposit the amount of any such loss in the Master Servicer Collection Account
        within two Business Days of receipt of notification of such loss but not
        later
        than the second Business Day prior to the Distribution Date on which the
        moneys
        so invested are required to be distributed to the
        Certificateholders.

       

      Section
        4.03                                Permitted
        Withdrawals and Transfers from the Master Servicer Collection
        Account.

       

      (a)  The
        Master Servicer will, from time to time on demand of a Servicer or the Trustee,
        make or cause to be made such withdrawals or transfers from the Master Servicer
        Collection Account as the Master Servicer has designated for such transfer
        or
        withdrawal pursuant to this Agreement and the related Servicing Agreement.
        The
        Master Servicer may clear and terminate the Master Servicer Collection Account
        pursuant to Section 10.01 and remove amounts from time to time deposited
        in
        error.

       

      (b)  On
        an
        ongoing basis, the Master Servicer shall withdraw from the Master Servicer
        Collection Account (i) any expenses, costs and liabilities recoverable by
        the
        Trustee, the Master Servicer or the Custodian pursuant to Sections 3.03,
        7.03
        and 9.05 and (ii) any amounts payable to the Master Servicer as set forth
        in
        Section 3.14; provided however, that the Master Servicer shall be obligated
        to
        pay from its own funds any amounts which it is required to pay under Section
        7.03(a).

       

      (c)  In
        addition, on or before each Distribution Account Deposit Date, the Master
        Servicer shall deposit in the Distribution Account (or remit to the Trustee
        for
        deposit therein) any Monthly Advances required to be made by the Master Servicer
        with respect to the Mortgage Loans.

       

      (d)  No
        later
        than noon New York time on each Distribution Account Deposit Date, the Master
        Servicer will transfer all Available Funds on deposit in the Master Servicer
        Collection Account with respect to the related Distribution Date to the Trustee
        for deposit in the Distribution Account.

       

      Section
        4.04                                Distribution
        Account.

       

      (a)           The
        Trustee shall establish and maintain in the name of the Trustee, for the
        benefit
        of the Certificateholders, the Distribution Account as a segregated trust
        account or accounts.

       

      (b)           The
        Distribution Account shall be an Eligible Account. The Trustee shall deposit
        in
        the Distribution Account the following amounts:

       

      (i)             Any
        amounts withdrawn from the Master Servicer Collection Account and remitted
        by
        the Master Servicer for deposit into the Distribution Account;

       

      (ii)            Any
        Monthly Advance;

       

      (iii)           Any
        Compensating Interest Payments paid by the applicable Servicer;

       

      (iv)     
             Any Insurance Proceeds or Net Liquidation Proceeds
        or Subsequent Recoveries received by or on behalf of the Master
        Servicer;

       

      (v)       
            The Purchase Price with respect to any Mortgage Loans
        purchased by the Seller pursuant to the Mortgage Loan Purchase Agreement
        or
        Sections 2.02 or 2.03 hereof, any amounts which are to be treated pursuant
        to
        Section 2.04 of this Agreement as the payment of a Purchase Price in connection
        with the tender of a Substitute Mortgage Loan by the Seller, the Purchase
        Price
        with respect to any Mortgage Loans purchased by the Seller pursuant to Section
        3.21, and all proceeds of any Mortgage Loans or property acquired with respect
        thereto repurchased by the Depositor or its designee pursuant to Section
        10.01;

       

      (vi)           
        Any amounts required to be deposited with respect to losses on investments
        of
        deposits in the Distribution Account; and

       

      (vii)          
        Any other amounts received by or on behalf of the Trustee and required to
        be
        deposited in the Distribution Account pursuant to this Agreement.

       

      (c)           All
        amounts deposited to the Distribution Account shall be held by the Trustee
        in
        the name of the Trustee in trust for the benefit of the Certificateholders
        in
        accordance with the terms and provisions of this Agreement.  In the
        event that the Master Servicer shall deposit or remit for deposit to the
        Distribution Account any amount not required to be credited thereto, the
        Trustee, upon receipt of a written request therefor signed by a Servicing
        Officer of the Master Servicer, shall promptly transfer such amount to the
        Master Servicer, any provision herein to the contrary
        notwithstanding.

       

      (d)           The
        Distribution Account shall constitute a trust account of the Trust Fund
        segregated on the books of the Trustee and held by the Trustee in trust in
        its
        Corporate Trust Office, and the Distribution Account and the funds deposited
        therein shall not be subject to, and shall be protected from, all claims,
        liens,
        and encumbrances of any creditors or depositors of the Trustee or the Master
        Servicer (whether made directly, or indirectly through a liquidator or receiver
        of the Trustee or the Master Servicer). The Distribution Account shall be
        an
        Eligible Account. The amount at any time credited to the Distribution Account
        shall be (i) held in cash and
        eligible account or (ii) invested in the name of the Trustee, in such Permitted
        Investments as may be selected by the Trustee or deposited in demand deposits
        with such depository institutions as may be selected by the Trustee, provided
        that time deposits of such depository institutions would be a Permitted
        Investment. All Permitted Investments shall mature or be subject to redemption
        or withdrawal on or before, and shall be held until, the next succeeding
        Distribution Date if the obligor for such Permitted Investment is the Trustee
        or, if such obligor is any other Person, the Business Day preceding such
        Distribution Date. All investment earnings on amounts on deposit in the
        Distribution Account or benefit from funds uninvested therein from time to
        time
        shall be for the account of the Trustee. The Trustee shall be permitted to
        withdraw or receive distribution of any and all investment earnings from
        the
        Distribution Account on each Distribution Date. If there is any loss on a
        Permitted Investment or demand deposit, the Trustee shall deposit the amount
        of
        the loss from its own funds in the Distribution Account not later than the
        applicable Distribution Date on which the moneys so invested are required
        to be
        distributed to the Certificateholders. With respect to the Distribution
        Account and the funds deposited therein, the Master Servicer shall take such
        action as may be necessary to ensure that the related Certificateholders
        shall
        be entitled to the priorities afforded to such a trust account (in addition
        to a
        claim against the estate of the Trustee) as provided by 12 U.S.C. § 92a(e), and
        applicable regulations pursuant thereto, if applicable, or any applicable
        comparable state statute applicable to state chartered banking
        corporations.

       

      Section
        4.05                                Permitted
        Withdrawals and Transfers from the Distribution Account.

       

      (a)           The
        Trustee will, from time to time on written demand of the Master Servicer,
        make
        or cause to be made such withdrawals or transfers from the Distribution Account
        as the Master Servicer has designated for such transfer or withdrawal pursuant
        to this Agreement and the Servicing Agreements or as the Trustee has instructed
        hereunder for the following purposes (limited in the case of amounts due
        the
        Master Servicer to those not withdrawn from the Master Servicer Collection
        Account in accordance with the terms of this Agreement);

       

      (i)         
                to reimburse the Master Servicer
        or any Servicer for any Monthly Advance of its own funds, the right of the
        Master Servicer or a Servicer to reimbursement pursuant to this subclause
        (i)
        being limited to (1) amounts received on a particular Mortgage Loan (including,
        for this purpose, the Purchase Price therefor, Insurance Proceeds, Liquidation
        Proceeds and Subsequent Recoveries) which represent late payments or recoveries
        of the principal of or interest on such Mortgage Loan respecting which such
        Monthly Advance was made and (2) to the extent of Amounts Held for Future
        Distributions with respect to the related Loan Group;

       

      (ii)                  to
        reimburse the Master Servicer or any Servicer from Insurance Proceeds or
        Liquidation Proceeds relating to a particular Mortgage Loan for amounts expended
        by the Master Servicer or such Servicer in good faith in connection with
        the
        restoration of the related Mortgaged Property which was damaged by an Uninsured
        Cause or in connection with the liquidation of such Mortgage Loan;

       

      (iii)                 to
        reimburse any Master
        Servicer or any Servicer from Insurance Proceeds relating to a particular
        Mortgage Loan for insured expenses incurred with respect to such Mortgage
        Loan
        and to reimburse the Master Servicer or such Servicer from Liquidation Proceeds
        from a particular Mortgage Loan for Liquidation Expenses incurred with respect
        to such Mortgage Loan; provided that the Master Servicer shall not be entitled
        to reimbursement for Liquidation Expenses with respect to a Mortgage Loan
        to the
        extent that (i) any amounts with respect to such Mortgage Loan were paid
        as
        Excess Liquidation Proceeds pursuant to clause (viii) of this Subsection
        4.05(a)
        to the Master Servicer; and (ii) such Liquidation Expenses were not included
        in
        the computation of such Excess Liquidation Proceeds.

       

      (iv)                 to
        reimburse the Master Servicer or any Servicer for advances of funds (other
        than
        Monthly Advances) made with respect to the Mortgage Loans, and the right
        to
        reimbursement pursuant to this subclause being limited to (1) amounts received
        on the related Mortgage Loan (including, for this purpose, the Purchase Price
        therefor, Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries)
        which represent late recoveries of the payments for which such advances were
        made and (2) to the extent of Amounts Held for Future Distributions with
        respect
        to the  related Loan Group;

       

      (v)                 to
        reimburse the Master Servicer or any Servicer for any Monthly Advance or
        advance, after a Realized Loss has been allocated with respect to the related
        Mortgage Loan if the Monthly Advance or advance has not been reimbursed pursuant
        to clauses (i) and (iv);

       

      (vi)                to
        pay the Master Servicer as set forth in Section 3.14;

       

      (vii)               to
        reimburse the Master Servicer for expenses, costs and liabilities incurred
        by
        and reimbursable to it pursuant to Sections 3.03, 7.04(c) and (d);

       

      (viii)              to
        pay to the Master Servicer, as additional servicing compensation, any Excess
        Liquidation Proceeds to the extent not already retained by the related
        Servicer;

       

      (ix)                 to
        reimburse or pay any Servicer any such amounts as are due thereto under the
        applicable Servicing Agreement and have not been retained by or paid to the
        Servicer, to the extent provided in the related Servicing
        Agreement;

       

      (x)                  to
        reimburse the Trustee or the Custodian for expenses, costs and liabilities
        incurred by or reimbursable to it pursuant to this Agreement and the Custodial
        Agreement;

       

      (xi)               
         to pay the Trustee as set forth in Section 9.05;

       

       (xii)          
            to remove amounts deposited in error; and

       

      (xiii)               to
        clear and terminate the Distribution Account pursuant to Section
        10.01.

       

      (b)           The
        Master Servicer shall keep and
        maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis,
        for the
        purpose of accounting for any reimbursement from the Distribution Account
        pursuant to subclauses (i) through (iv) or with respect to any such amounts
        which would have been covered by such subclauses had the amounts not been
        retained by the Master Servicer without being deposited in the Distribution
        Account under Section 4.04(c).

       

      (c)           On
        each Distribution Date, the Trustee shall distribute the Available Funds
        to the
        extent on deposit in the Distribution Account to the Holders of the Certificates
        in accordance with Section 6.01.

       

      

       

      ARTICLE
        V

      Certificates

       

      Section
        5.01                                Certificates.

       

      (a)           The
        Depository and the Depositor signing on behalf of the Issuing Entity have
        entered into a Depository Agreement dated as of the Closing Date (the
“Depository Agreement”). The Non-Offered Certificates (which are also Physical
        Certificates) and the Individual Certificates and as provided in Subsection
        5.01(b), the Certificates shall at all times remain registered in the name
        of
        the Depository or its nominee and at all times: (i) registration of such
        Certificates may not be transferred by the Trustee except to a successor
        to the
        Depository; (ii) ownership and transfers of registration of such Certificates
        on
        the books of the Depository shall be governed by applicable rules established
        by
        the Depository; (iii) the Depository may collect its usual and customary
        fees,
        charges and expenses from its Depository Participants; (iv) the Trustee shall
        deal with the Depository as representative of such Certificate Owners of
        the
        respective Class of Certificates for purposes of exercising the rights of
        the
        related Certificateholders under this Agreement, and requests and directions
        for
        and votes of such representative shall not be deemed to be inconsistent if
        they
        are made with respect to different Certificate Owners; and (v) the Trustee
        may
        rely and shall be fully protected in relying upon information furnished by
        the
        Depository with respect to its Depository Participants.

       

      The
        Residual Certificates and the Non-Offered Subordinate Certificates are initially
        Physical Certificates. If at any time the Holders of all of the Certificates
        of
        one or more such Classes request that the Trustee cause such Class to become
        Global Certificates, the Trustee and the Depositor will take such action
        as may
        be reasonably required to cause the Depository to accept such Class or Classes
        for trading if it may legally be so traded.

       

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

       

      (b)           If
        (i)(A) the Depositor advises the Trustee in writing that the Depository is
        no
        longer willing or able to properly discharge its responsibilities as Depository
        and (B) the Depositor is unable to locate a qualified successor within 30
        days
        or (ii) the Depositor at its option advises the Trustee in writing that it
        elects to terminate the book-entry system through the Depository, the Trustee
        shall request that the Depository notify all Certificate Owners of the
        occurrence of any such event and of the availability of definitive, fully
        registered Certificates to Certificate Owners requesting the same. Upon
        surrender to the Trustee of the Certificates by the Depository, accompanied
        by
        registration instructions from the Depository for registration, the Trustee
        shall issue the definitive Certificates. Neither the Depositor nor the Trustee
        shall be liable for any delay in delivery of such instructions and may
        conclusively rely on, and shall be protected in relying on, such
        instructions.

       

      (c)           (i)           REMIC
        I will be evidenced by (x) the REMIC I Regular Interests, which will be
        uncertificated and non-transferable and are hereby designated as the “regular
        interests” in REMIC I and have the initial principal amounts and accrue interest
        at the Pass-Through Rates equal to those set forth in this Section 5.01(c)(i)
        and (y) the Class I-R-1 Certificates, which are hereby designated as
        representing the sole class of “residual interests” in REMIC I.

       

      The
        REMIC
        I Regular Interests and the Class I-R-1 Certificates will have the following
        designations, initial principal amounts and Pass Through Rates:

       

      
        
          	
                  
                    Designation

                  

                	 	
                  
                    Initial
                      Principal Amount

                  

                	 	
                  
                    Pass-Through
                      Rate

                  

                
	 	 	 	 	 
	
                  I-A-1-1FL

                	 	
                  $      87,291,200.00

                	 	
                  6.00%

                
	
                  I-A-1-1INV

                	 	
                  $      21,822,800.00

                	 	
                  6.00%

                
	
                  I-A-1-2FL

                	 	
                  $      19,124,800.00

                	 	
                  6.00%

                
	
                  I-A-1-2INV

                	 	
                  $        4,781,200.00

                	 	
                  6.00%

                
	
                  I-A-1-3FL

                	 	
                  $      11,824,000.00

                	 	
                  6.00%

                
	
                  I-A-1-3INV

                	 	
                  $        2,956,000.00

                	 	
                  6.00%

                
	
                  I-A-2

                	 	
                  $      17,258,900.00

                	 	
                  6.00%

                
	
                  I-X

                	 	
                  (1)

                	 	
                  (2)

                
	
                  I-PO

                	 	
                  $        1,051,373.37

                	 	
                  0.00%

                
	
                  Class
                    I-R-1

                	 	
                  $     
                                  50.00

                	 	
                  6.00%

                
	
                  I-R-2

                	 	
                  $     
                                  50.00

                	 	
                  6.00%

                
	
                  I-B-1

                	 	
                  $        3,589,000.00

                	 	
                  6.00%

                
	
                  I-B-2

                	 	
                  $        2,014,000.00

                	 	
                  6.00%

                
	
                  I-B-3

                	 	
                  $           788,000.00

                	 	
                  6.00%

                
	
                  I-B-4

                	 	
                  $        1,313,000.00

                	 	
                  6.00%

                
	
                  I-B-5

                	 	
                  $           351,000.00

                	 	
                  6.00%

                
	
                  I-B-6

                	 	
                  $           964,237.57

                	 	
                  6.00%

                

        

        
 

      

       

      (1)           REMIC
        I Regular Interest I-X will not have an initial principal amount but will
        accrue
        interest on its uncertificated notional amount calculated in accordance with
        the
        related definition of “Uncertificated Notional Amount” herein.

       

      (2)           A
        variable pass-through rate equal to the weighted average of the excesses,
        if
        any, of (a) the Net Mortgage Rates on the Group II Mortgage Loans over (b)
        6.000% per annum.

       

      
 

      Principal
        shall be payable to, and shortfalls, losses and prepayments are allocable
        to,
        the REMIC I Regular Interests as such amounts are payable and allocable to
        the
        Corresponding Interests. Interest shall be payable to the REMIC I Regular
        Interests at the Pass-Through Rate for each such REMIC I Regular Interest
        on
        each such REMIC I Regular Interest’s Uncertificated Principal
        Balance.

      

      (ii)           REMIC
        II will be evidenced by (x) the REMIC II Regular Interests, which will be
        uncertificated and non-transferable and are hereby designated as the “regular
        interests” in REMIC II and have the initial principal amounts and accrue
        interest at the Pass-Through Rates equal to those set forth in this Section
        5.01(c)(ii) and (y) the Class II-R Certificates, which are hereby designated
        as
        representing the sole class of “residual interests” in REMIC II.

       

      The
        REMIC
        II Regular Interests and the Class II-R Certificates will have the following
        designations, initial principal amounts and Pass Through Rates:

       

      
        	
                
                  Designation

                

              	 	
                
                  Initial
                    Principal Amount

                

              	 	
                
                  Pass-Through
                    Rate

                

              
	 	 	 	 	 
	
                II-A-1

              	 	
                 $    112,424,000.00

              	 	
                6.00%

              
	
                II-A-2

              	 	
                 $        1,873,950.00

              	 	
                6.00%

              
	
                II-X

              	 	
                (1)

              	 	
                (2)

              
	
                II-PO

              	 	
                                        $        3,040,960.92

              	 	
                0.00%

              
	
                Class
                  II-R

              	 	
                                        $    
                                 50.00

              	 	
                6.00%

              
	
                II-B-1

              	 	
                 $        3,620,000.00

              	 	
                6.00%

              
	
                II-B-2

              	 	
                 $        1,498,000.00

              	 	
                6.00%

              
	
                II-B-3

              	 	
                 $           874,000.00

              	 	
                6.00%

              
	
                II-B-4

              	 	
                 $           624,000.00

              	 	
                6.00%

              
	
                II-B-5

              	 	
                 $           437,000.00

              	 	
                6.00%

              
	
                II-B-6

              	 	
                 $           437,565.58

              	 	
                6.00%

              

      

      

       

      (1)           REMIC
        II Regular Interest II-X will not have an initial principal amount but will
        accrue interest on its uncertificated notional amount calculated in accordance
        with the related definition of “Uncertificated Notional Amount”
herein.

       

      (2)           A
        variable pass-through rate equal to the weighted average of the excesses,
        if
        any, of (a) the Net Mortgage Rates on the Group II Mortgage Loans over (b)
        6.000% per annum.

       

      
 

      Principal
        shall be payable to, and shortfalls, losses and prepayments are allocable
        to,
        the REMIC II Regular Interests as such amounts are payable and allocable
        to the
        Corresponding Interests. Interest shall be payable to the REMIC II Regular
        Interests at the Pass-Through Rate for each such REMIC II Regular Interest
        on
        each such REMIC II Regular Interest’s Uncertificated Principal
        Balance.

      

      (iii)           REMIC
        III will be evidenced by (x) the REMIC III Regular Interests, which will
        be
        uncertificated and non-transferable and are hereby designated as the “regular
        interests” in REMIC III and have the initial principal amounts and accrue
        interest at the Pass-Through Rates equal to those set forth in this Section
        5.01(c)(iii) and (y) the Class I-R-2 Interest, which is hereby designated
        as
        representing the sole class of “residual interests” in REMIC III.

       

      The
        REMIC
        III Regular Interests and the Class I-R-2 Interest will have the following
        designations, initial principal amounts and Pass Through Rates:

       

      
        	
                
                  Designation

                

              	 	
                
                  Initial
                    Principal Amount

                

              	 	
                
                  Pass-Through
                    Rate

                

              	 	
                
                  Corresponding
                    Certificate

                

              
	
                I-A-1-1FL

              	 	
                 $      87,291,200.00

              	 	
                (1)

              	 	
                Class
                  I-A-1, Class I-A-3, Class I-A-5

              
	
                I-A-1-1INV

              	 	
                 $      21,822,800.00

              	 	
                (2)

              	 	
                Class
                  I-A-1, Class I-A-4, Class I-A-5

              
	
                I-A-1-2FL

              	 	
                 $      19,124,800.00

              	 	
                (1)

              	 	
                Class
                  I-A-1, Class I-A-3, Class I-A-6

              
	
                I-A-1-2INV

              	 	
                 $        4,781,200.00

              	 	
                (2)

              	 	
                Class
                  I-A-1, Class I-A-4, Class I-A-6

              
	
                I-A-1-3FL

              	 	
                 $      11,824,000.00

              	 	
                (1)

              	 	
                Class
                  I-A-1, Class I-A-3, Class I-A-7

              
	
                I-A-1-3INV

              	 	
                 $        2,956,000.00

              	 	
                (2)

              	 	
                Class
                  I-A-1, Class I-A-4, Class I-A-7

              
	
                I-A-2

              	 	
                 $      17,258,900.00

              	 	
                6.00%

              	 	
                Class
                  I-A-2

              
	
                I-X

              	 	
                (3)

              	 	
                (4)

              	 	
                Class
                  I-X

              
	
                I-PO

              	 	
                                        $        1,051,373.37

              	 	
                0.00%

              	 	
                Class
                  I-PO

              
	
                Class
                  I-R-2 Int.

              	 	
                                        $         
                            50.00

              	 	
                6.00%

              	 	
                Class
                  I-R-2

              
	
                I-B-1

              	 	
                 $        3,589,000.00

              	 	
                6.00%

              	 	
                Class
                  I-B-1

              
	
                I-B-2

              	 	
                 $        2,014,000.00

              	 	
                6.00%

              	 	
                Class
                  I-B-2

              
	
                I-B-3

              	 	
                 $           788,000.00

              	 	
                6.00%

              	 	
                Class
                  I-B-3

              
	
                I-B-4

              	 	
                 $        1,313,000.00

              	 	
                6.00%

              	 	
                Class
                  I-B-4

              
	
                I-B-5

              	 	
                 $           351,000.00

              	 	
                6.00%

              	 	
                Class
                  I-B-5

              
	
                I-B-6

              	 	
                 $           964,237.57

              	 	
                6.00%

              	 	
                Class
                  I-B-6

              
	
                II-A-1

              	 	
                 $    112,424,000.00

              	 	
                6.00%

              	 	
                Class
                  II-A-1

              
	
                II-A-2

              	 	
                 $        1,873,950.00

              	 	
                6.00%

              	 	
                Class
                  II-A-2

              
	
                II-X

              	 	
                (3)

              	 	
                (4)

              	 	
                Class
                  II-X

              
	
                II-PO

              	 	
                                        $        3,040,960.92

              	 	
                0.00%

              	 	
                Class
                  II-PO

              
	
                II-B-1

              	 	
                 $        3,620,000.00

              	 	
                6.00%

              	 	
                Class
                  II-B-1

              
	
                II-B-2

              	 	
                 $        1,498,000.00

              	 	
                6.00%

              	 	
                Class
                  II-B-2

              
	
                II-B-3

              	 	
                 $           874,000.00

              	 	
                6.00%

              	 	
                Class
                  II-B-3

              
	
                II-B-4

              	 	
                 $           624,000.00

              	 	
                6.00%

              	 	
                Class
                  II-B-4

              
	
                II-B-5

              	 	
                 $           437,000.00

              	 	
                6.00%

              	 	
                Class
                  II-B-5

              
	
                II-B-6

              	 	
                 $           437,565.58

              	 	
                6.00%

              	 	
                Class
                  II-B-6

              

      

      

       

      (1)           An
        adjustable pass-through rate equal to One–Month LIBOR plus 0.70%, subject to a
        maximum rate of 7.50% and a minimum rate of 0.70% per annum.

       

      (2)           An
        adjustable pass-through rate equal to 27.20% minus (4 x One–Month LIBOR),
        subject to a maximum rate of 27.20% and a minimum rate of 0.00% per
        annum.

       

      (3)           REMIC
        III Regular Interests I-X and II-X will not have initial principal amounts
        but
        rather will have uncertificated notional amounts equal to the Uncertificated
        Notional Amounts of REMIC I Regular Interest I-X and REMIC II Regular Interest
        II-X, respectively.

       

       (4)           REMIC
        III Regular Interests I-X and II-X will not have pass-through rates but will
        be
        entitled to receive 100% of the amounts payable with respect to REMIC I Regular
        Interest I-X and REMIC II Regular Interest II-X, respectively.

       

       

      Principal
        shall be payable to, and shortfalls, losses and prepayments are allocable
        to,
        the REMIC III Regular Interests and the Class I-R-2 Interest as such amounts
        are
        payable and allocable to the Corresponding Certificates, provided, however,
        that
        solely for purposes of the foregoing, any principal, shortfalls, losses or
        prepayments payable and allocable on any Payment Date to any Certificates
        that
        are the Corresponding Certificates for two or more REMIC III Regular Interests
        on such Payment Date shall be payable and allocable to such REMIC III Regular
        Interests on a pro rata basis. Interest shall be payable to the REMIC III
        Regular Interests at the Pass-Through Rates for each such REMIC III Regular
        Interest and Class I-R-2 Interest on each such REMIC III Regular Interest’s and
        Class I-R-2 Interest’s Uncertificated Principal Balances.

      

      (iv)           The
        Classes of the Certificates shall have the following designations, initial
        principal amounts and Pass-Through Rates:

      

      

      
        	
                Designation

              	 	
                Initial
                  Principal Amount

              	 	
                Pass-Through
                  Rate

              	 	
                Corresponding
                  REMIC III Regular Interests and Class I-R-2
                  Interest

              
	
                I-A-1

              	 	
                $

              	
                147,800,000.00

              	 	
                6.00%

              	 	
                I-A-1-1FL,
                  I-A-1-1INV, I-A-1-2FL, I-A-1-2INV, I-A-1-3FL,
                  I-A-1-3INV

              
	
                I-A-2

              	 	
                $

              	
                17,258,900.00

              	 	
                6.00%

              	 	
                I-A-2

              
	
                I-A-3

              	 	
                $

              	
                0.00

              	 	
                Adjustable(1)

              	 	
                I-A-1-1FL,
                  I-A-1-2FL, I-A-1-3FL

              
	
                I-A-4

              	 	
                $

              	
                0.00

              	 	
                Adjustable(2)

              	 	
                I-A-1-1INV,
                  I-A-1-2INV,

                I-A-1-3INV

              
	
                I-A-5

              	 	
                $

              	
                0.00

              	 	
                6.00%

              	 	
                I-A-1-1FL,
                  I-A-1-1INV

              
	
                I-A-6

              	 	
                $

              	
                0.00

              	 	
                6.00%

              	 	
                I-A-1-2FL,
                  I-A-1-2INV

              
	
                I-A-7

              	 	
                $

              	
                0.00

              	 	
                6.00%

              	 	
                I-A-1-3FL,
                  I-A-1-3INV

              
	
                I-X

              	 	
                $

              	
                (3)

              	 	
                (4)

              	 	
                I-X

              
	
                I-PO

              	 	
                $

              	
                1,051,373.37

              	 	
                0.00%

              	 	
                I-PO

              
	
                I-B-1

              	 	
                $

              	
                3,589,000.00

              	 	
                6.00%

              	 	
                I-B-1

              
	
                I-B-2

              	 	
                $

              	
                2,014,000.00

              	 	
                6.00%

              	 	
                I-B-2

              
	
                I-B-3

              	 	
                $

              	
                788,000.00

              	 	
                6.00%

              	 	
                I-B-3

              
	
                I-B-4

              	 	
                $

              	
                1,313,000.00

              	 	
                6.00%

              	 	
                I-B-4

              
	
                I-B-5

              	 	
                $

              	
                351,000.00

              	 	
                6.00%

              	 	
                I-B-5

              
	
                I-B-6

              	 	
                $

              	
                964,237.57

              	 	
                6.00%

              	 	
                I-B-6

              
	
                I-R-1

              	 	
                $

              	
                50.00

              	 	
                6.00%

              	 	
                N/A

              
	
                I-R-2

              	 	
                $

              	
                50.00

              	 	
                6.00%

              	 	
                Class
                  I-R-2 Interest

              
	
                II-A-1

              	 	
                $

              	
                112,424,000.00

              	 	
                6.00%

              	 	
                II-A-1

              
	
                II-A-2

              	 	
                $

              	
                1,873,950.00

              	 	
                6.00%

              	 	
                II-A-2

              
	
                II-X

              	 	
                $

              	
                (3)

              	 	
                (5)

              	 	
                II-X

              
	
                II-PO

              	 	
                $

              	
                3,040,960.92

              	 	
                0.00%

              	 	
                II-PO

              
	
                II-B-1

              	 	
                $

              	
                3,620,000.00

              	 	
                6.00%

              	 	
                II-B-1

              
	
                II-B-2

              	 	
                $

              	
                1,498,000.00

              	 	
                6.00%

              	 	
                II-B-2

              
	
                II-B-3

              	 	
                $

              	
                874,000.00

              	 	
                6.00%

              	 	
                II-B-3

              
	
                II-B-4

              	 	
                $

              	
                624,000.00

              	 	
                6.00%

              	 	
                II-B-4

              
	
                II-B-5

              	 	
                $

              	
                437,000.00

              	 	
                6.00%

              	 	
                II-B-5

              
	
                II-B-6

              	 	
                $

              	
                437,565.58

              	 	
                6.00%

              	 	
                II-B-6

              
	
                II-R

              	 	
                $

              	
                50.00

              	 	
                6.00%

              	 	
                N/A

              

      

      

      
        	
                 

              	
                (1)

              	
                The
                  Class I-A-3 Certificates will bear interest at an adjustable pass-through
                  rate equal to One–Month LIBOR plus 0.70%, subject to a maximum rate of
                  7.50% and a minimum rate of 0.70% per
                  annum.

              

      

       

      
        	
                 

              	
                (2)

              	
                The
                  Class I-A-4 Certificates will bear interest at an adjustable pass-through
                  rate equal to 27.20% minus (4 x One–Month LIBOR), subject to a maximum
                  rate of 27.20% and a minimum rate of 0.00% per
                  annum.

              

      

       

      
        	
                 

              	
                (3)

              	
                As
                  described in the definition of Notional Amount
                  herein.

              

      

       

      
        	
                 

              	
                (4)

              	
                The
                  Class I-X Certificates will bear interest at a Pass-Through Rate
                  equal to
                  weighted average of the excesses, if any, of (a) the Net Mortgage
                  Rates on
                  the Group I Mortgage Loans over (b) 6.00% per
                  annum.

              

      

       

      
        	
                 

              	
                (5)

              	
                The
                  Class II-X Certificates will bear interest at a Pass-Through Rate
                  equal to
                  weighted average of the excesses, if any, of (a) the Net Mortgage
                  Rates on
                  the Group II Mortgage Loans over (b) 6.00% per
                  annum.

              

      

       

      (d)           For
        purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
        Distribution Date immediately following the maturity date for the related
        Mortgage Loan with the latest maturity date in the Trust Fund has been
        designated as the “latest possible maturity date” for the related REMIC I
        Regular Interests, REMIC II Regular Interests, REMIC III Regular Interests
        and
        Regular Certificates.

       

      (e)           With
        respect to each Distribution Date, each Class of Certificates shall accrue
        interest during the related Interest Accrual Period. With respect to each
        Distribution Date and each such Class of Certificates, interest shall be
        calculated on the basis of a 360-day year comprised of twelve 30-day months,
        based upon the respective Pass-Through Rate set forth, or determined as
        provided, above and the Current Principal Amount (or Notional Amount in the
        case
        of the Interest Only Certificates) of such Class applicable to such Distribution
        Date.

       

      (f)           The
        Certificates shall be substantially in the forms set forth in Exhibits A-1,
        A-2,
        A-3, A-4 or A-5, as applicable. On original issuance, the Trustee shall sign,
        countersign and shall deliver them at the direction of the Depositor. Pending
        the preparation of Definitive Certificates of any Class, the Trustee may
        sign
        and countersign temporary Certificates that are printed, lithographed or
        typewritten, in authorized denominations for Certificates of such Class,
        substantially of the tenor of the Definitive Certificates in lieu of which
        they
        are issued and with such appropriate insertions, omissions, substitutions
        and
        other variations as the officers or authorized signatories executing such
        Certificates may determine, as evidenced by their execution of such
        Certificates. If temporary Certificates are issued, the Depositor will cause
        Definitive Certificates to be prepared without unreasonable delay. After
        the
        preparation of Definitive Certificates, the temporary Certificates shall
        be
        exchangeable for definitive Certificates upon surrender of the temporary
        Certificates at the office of the Trustee, without charge to the Holder.
        Upon
        surrender for cancellation of any one or more temporary Certificates, the
        Trustee shall sign and countersign and deliver in exchange therefor a like
        aggregate principal amount, in authorized denominations for such Class, of
        Definitive Certificates of the same Class. Until so exchanged, such temporary
        Certificates shall in all respects be entitled to the same benefits as
        Definitive Certificates.

       

      (g)           Each
        Class of Book-Entry Certificates will be registered as a single Certificate
        of
        such Class held by a nominee of the Depository or the DTC Custodian, and
        beneficial interests will be held by investors through the book-entry facilities
        of the Depository in minimum denominations of (i) in the case of the Senior
        Certificates (other than the Residual Certificates), $100,000 and in each
        case
        increments of $1.00 in excess thereof, and (ii) in the case of the Subordinate
        Certificates, $100,000 and increments of $1.00 in excess thereof, except
        that
        one Certificate of each such Class may be issued in a different amount so
        that
        the sum of the denominations of all outstanding Certificates of such Class
        shall
        equal the Current Principal Amount of such Class on the Closing Date. On
        the
        Closing Date, the Trustee shall execute and countersign Physical Certificates
        all in an aggregate principal amount that shall equal the Current Principal
        Amount of such Class on the Closing Date. The Non-Offered Certificates shall
        be
        issued in certificated fully-registered form in minimum dollar denominations
        of
        $100,000 and integral multiples of $1.00 in excess thereof, except that one
        of
        each of the Non-Offered Certificates of each Class may be issued in a different
        amount so that the sum of the denominations of all outstanding related
        Non-Offered Certificates of such Class shall equal the Current Principal
        Amount
        of such Class on the Closing Date. Each of the Class R Certificates shall
        be
        issued in certificated fully-registered form, in the denomination of $50.
        Each
        Class of Global Certificates, if any, shall be issued in fully registered
        form
        in minimum dollar denominations of $100,000 and integral multiples of $1.00
        in
        excess thereof, except that one Certificate of each Class may be in a different
        denomination so that the sum of the denominations of all outstanding
        Certificates of such Class shall equal the Current Principal Amount of such
        Class on the Closing Date. On the Closing Date, the Trustee shall execute and
        countersign (i) in the case of each Class of the Offered Certificates, the
        Certificate in the entire Current Principal Amount of the respective Class
        and
        (ii) in the case of each Class of the Non-Offered Certificates, Individual
        Certificates all in an aggregate principal amount that shall equal the Current
        Principal Amount of each such respective Class on the Closing Date. The
        Certificates referred to in clauses (i) and (ii) and if at any time there
        are to
        be Global Certificates, the Global Certificates shall be delivered by the
        Depositor to the Depository or pursuant to the Depository’s instructions, shall
        be delivered by the Depositor on behalf of the Depository to and deposited
        with
        the DTC Custodian. The Trustee shall sign the Certificates by facsimile or
        manual signature and countersign them by manual signature on behalf of the
        Trustee by one or more authorized signatories, each of whom shall be Responsible
        Officers of the Trustee or its agent. A Certificate bearing the manual and
        facsimile signatures of individuals who were the authorized signatories of
        the
        Trustee or its agent at the time of issuance shall bind the Trustee,
        notwithstanding that such individuals or any of them have ceased to hold
        such
        positions prior to the delivery of such Certificate.

       

      (h)           No
        Certificate shall be entitled to any benefit under this Agreement, or be
        valid
        for any purpose, unless there appears on such Certificate the manually executed
        countersignature of the Trustee or its agent, and such countersignature upon
        any
        Certificate shall be conclusive evidence, and the only evidence, that such
        Certificate has been duly executed and delivered hereunder. All Certificates
        issued on the Closing Date shall be dated the Closing Date. All Certificates
        issued thereafter shall be dated the date of their
        countersignature.

       

      (i)           The
        Closing Date is hereby designated as the “startup” day of each of REMIC I, REMIC
        II and REMIC III within the meaning of Section 860G(a)(9) of the
        Code.

       

      (j)           For
        federal income tax purposes, each of REMIC I, REMIC II and REMIC III shall
        have
        a tax year that is a calendar year and shall report income on an accrual
        basis.

       

      (k)           For
        federal income tax purposes, the Trustee shall treat the Trust as consisting
        of  the ES Trust and each of REMIC I, REMIC II and REMIC III,
        organized in a tiered structure, beneath the ES Trust, all as further described
        herein, and on behalf of
        the Trust Fund, shall cause each such REMIC to timely elect to be treated
        as a
        REMIC under Section 860D of the Code. Any inconsistencies or ambiguities
        in this
        Agreement or in the administration of any trust established hereby shall
        be
        resolved in a manner that preserves the validity of such elections and intended
        tax treatment.

       

      (l)           The
        following legend shall be placed on the Residual Certificates, whether upon
        original issuance or upon issuance of any other Certificate of any such Class
        in
        exchange therefor or upon transfer thereof:

       

      THIS
        CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF,
        AN
        EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO
        TITLE
        I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR
        SECTION
        4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE PROPOSED
        TRANSFEREE PROVIDES THE TRUSTEE WITH AN OPINION OF COUNSEL ADDRESSED TO THE
        DEPOSITOR, TRUSTEE AND MASTER SERVICER AND ON WHICH THEY MAY RELY THAT IS
        SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE OF CERTIFICATES ON BEHALF OF
        SUCH
        PERSON WILL NOT RESULT IN OR CONSTITUTE A NONEXEMPT PROHIBITED TRANSACTION,
        IS
        PERMISSIBLE UNDER APPLICABLE LAW AND WILL NOT GIVE RISE TO ANY ADDITIONAL
        OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE MASTER SERVICER OR THE
        TRUSTEE.

       

      The
        following legend shall be placed upon the Class I-B-4, Class I-B-5, Class
        I-B-6,
        Class II-B-4, Class II-B-5 and Class II-B-6 Certificates, whether upon original
        issuance or upon issuance of any other Certificate of any such Class in exchange
        therefor or upon transfer thereof:

       

      THIS
        CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF,
        AN
        EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO
        TITLE
        I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR
        SECTION
        4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE TRANSFEREE
        CERTIFIES OR REPRESENTS THAT THE PROPOSED TRANSFER AND HOLDING OF A CERTIFICATE
        AND THE SERVICING, MANAGEMENT AND OPERATION OF THE TRUST AND ITS ASSETS:
        (I)
        WILL NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER
        AN
        INDIVIDUAL OR CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT
        LIMITED
        TO, PROHIBITED TRANSACTION EXEMPTION (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE
        95-60 OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL OBLIGATIONS
        ON
        THE PART OF THE DEPOSITOR, THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL
        BE
        DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL
        CERTIFICATE OR UNLESS THE OPINION SPECIFIED IN SECTION 5.07 OF THE AGREEMENT
        IS
        PROVIDED.

       

      Section
        5.02                                Registration
        of Transfer and Exchange of Certificates.

       

      (a)           The
        Trustee shall maintain at its Corporate Trust Office a separate Certificate
        Register for Certificates in which, subject to such reasonable regulations
        as it
        may prescribe, the Trustee shall provide for the registration of the related
        Certificates and of transfers and exchanges of the related Certificates as
        herein provided.

       

      (b)           Subject
        to Subsection 5.01(a) and, in the case of any Global Certificate or Physical
        Certificate upon the satisfaction of the conditions set forth below, upon
        surrender for registration of transfer of any Certificate at any office or
        agency of the Trustee maintained for such purpose, the Trustee shall sign,
        countersign and shall deliver, in the name of the designated transferee or
        transferees, a new Certificate of a like Class and aggregate Fractional
        Undivided Interest, but bearing a different number.

       

      (c)           By
        acceptance of an Individual Certificate, whether upon original issuance or
        subsequent transfer, each holder of such a Certificate acknowledges the
        restrictions on the transfer of such Certificate set forth in the Securities
        Legend and agrees that it will transfer such a Certificate only as provided
        herein. In addition to the provisions of Subsection 5.02(h), the following
        restrictions shall apply with respect to the transfer and registration of
        transfer of an Individual Certificate to a transferee that takes delivery
        in the
        form of an Individual Certificate:

       

      (i)           The
        Trustee shall register the transfer of an Individual Certificate if the
        requested transfer is being made to a transferee who has provided the Trustee
        with a Rule 144A Certificate or comparable evidence as to its QIB
        status.

       

      (ii)           The
        Trustee shall register the transfer of any Individual Certificate if (x)
        the
        transferor has advised the Trustee in writing that the Certificate is being
        transferred to an Institutional Accredited Investor; and (y) prior to the
        transfer the transferee furnishes to the Trustee an Investment Letter (and
        the
        Trustee shall be fully protected in so doing), provided that, if based upon
        an
        Opinion of Counsel addressed to the Trustee to the effect that the delivery
        of
        (x) and (y) above are not sufficient to confirm that the proposed transfer
        is
        being made pursuant to an exemption from, or in a transaction not subject
        to,
        the registration requirements of the Securities Act and other applicable
        laws,
        the Trustee shall as a condition of the registration of any such transfer
        require the transferor to furnish such other certifications, legal opinions
        or
        other information prior to registering the transfer of an Individual Certificate
        as shall be set forth in such Opinion of Counsel.

       

      (d)           Subject
        to Subsection 5.02(h), so long as a Global Certificate of such Class is
        outstanding and is held by or on behalf of the Depository, transfers of
        beneficial interests in such Global Certificate, or transfers by holders
        of
        Individual Certificates of such Class to transferees that take delivery in
        the
        form of beneficial interests in the Global Certificate, may be made only
        in
        accordance with this Subsection 5.02(d) and in accordance with the rules
        of the
        Depository:

       

      (i)           In
        the case of a beneficial interest in the Global Certificate being transferred
        to
        an Institutional Accredited Investor, such transferee shall be required to
        take
        delivery in the form of an Individual Certificate or Certificates and the
        Trustee shall register such transfer only upon compliance with the provisions
        of
        Subsection 5.02(c)(ii).

       

      (ii)           In
        the case of a beneficial interest in a Class of Global Certificates being
        transferred to a transferee that takes delivery in the form of an Individual
        Certificate or Certificates of such Class, except as set forth in clause
        (i)
        above, the Trustee shall register such transfer only upon compliance with
        the
        provisions of Subsection 5.02(c)(i).

       

      (iii)           In
        the case of an Individual Certificate of a Class being transferred to a
        transferee that takes delivery in the form of a beneficial interest in a
        Global
        Certificate of such Class, the Trustee shall register such transfer if the
        transferee has provided the Trustee with a Rule 144A Certificate or comparable
        evidence as to its QIB status.

       

      (iv)           No
        restrictions shall apply with respect to the transfer or registration of
        transfer of a beneficial interest in the Global Certificate of a Class to
        a
        transferee that takes delivery in the form of a beneficial interest in the
        Global Certificate of such Class; provided that each such transferee shall
        be
        deemed to have made such representations and warranties contained in the
        Rule
        144A Certificate as are sufficient to establish that it is a QIB.

       

      (e)           Subject
        to Subsection 5.02(h), an exchange of a beneficial interest in a Global
        Certificate of a Class for an Individual Certificate or Certificates of such
        Class, an exchange of an Individual Certificate or Certificates of a Class
        for a
        beneficial interest in the Global Certificate of such Class and an exchange
        of
        an Individual Certificate or Certificates of a Class for another Individual
        Certificate or Certificates of such Class (in each case, whether or not such
        exchange is made in anticipation of subsequent transfer, and, in the case
        of the
        Global Certificate of such Class, so long as such Certificate is outstanding
        and
        is held by or on behalf of the Depository) may be made only in accordance
        with
        this Subsection 5.02(e) and in accordance with the rules of the
        Depository:

       

      (i)           A
        holder of a beneficial interest in a Global Certificate of a Class may at
        any
        time exchange such beneficial interest for an Individual Certificate or
        Certificates of such Class.

       

      (ii)           A
        holder of an Individual Certificate or Certificates of a Class may exchange
        such
        Certificate or Certificates for a beneficial interest in the Global Certificate
        of such Class if such holder furnishes to the Trustee a Rule 144A Certificate
        or
        comparable evidence as to its QIB status.

       

      (iii)           A
        holder of an Individual Certificate of a Class may exchange such Certificate
        for
        an equal aggregate principal amount of Individual Certificates of such Class
        in
        different authorized denominations without any certification.

       

      (f)           (i)           Upon
        acceptance for exchange or transfer of an Individual Certificate of a Class
        for
        a beneficial interest in a Global Certificate of such Class as provided herein,
        the Trustee shall cancel such Individual Certificate and shall (or shall
        request
        the Depository to) endorse on the schedule affixed to the applicable Global
        Certificate (or on a continuation of such schedule affixed to the Global
        Certificate and made a part thereof) or otherwise make in its books and records
        an appropriate notation evidencing the date of such exchange or transfer
        and an
        increase in the certificate balance of the Global Certificate equal to the
        certificate balance of such Individual Certificate exchanged or transferred
        therefor.

       

      (ii)           Upon
        acceptance for exchange or transfer of a beneficial interest in a Global
        Certificate of a Class for an Individual Certificate of such Class as provided
        herein, the Trustee shall (or shall request the Depository to) endorse on
        the
        schedule affixed to such Global Certificate (or on a continuation of such
        schedule affixed to such Global Certificate and made a part thereof) or
        otherwise make in its books and records an appropriate notation evidencing
        the
        date of such exchange or transfer and a decrease in the certificate balance
        of
        such Global Certificate equal to the certificate balance of such Individual
        Certificate issued in exchange therefor or upon transfer thereof.

       

      (g)           The
        Securities Legend shall be placed on any Individual Certificate issued in
        exchange for or upon transfer of another Individual Certificate or of a
        beneficial interest in a Global Certificate.

       

      (h)           Subject
        to the restrictions on transfer and exchange set forth in this Section 5.02,
        the
        holder of any Individual Certificate may transfer or exchange the same in
        whole
        or in part (in an initial certificate balance equal to the minimum authorized
        denomination set forth in Section 5.01(g) above or any integral multiple
        of
        $1.00 in excess thereof) by surrendering such Certificate at the Corporate
        Trust
        Office, or at the office of any transfer agent, together with an executed
        instrument of assignment and transfer satisfactory in form and substance
        to the
        Trustee in the case of transfer and a written request for exchange in the
        case
        of exchange. The holder of a beneficial interest in a Global Certificate
        may,
        subject to the rules and procedures of the Depository, cause the Depository
        (or
        its nominee) to notify the Trustee in writing of a request for transfer or
        exchange of such beneficial interest for an Individual Certificate or
        Certificates. Following a proper request for transfer or exchange, the Trustee
        shall, within five Business Days of such request made at the Corporate Trust
        Office, sign, countersign and deliver at the Corporate Trust Office, to the
        transferee (in the case of transfer) or holder (in the case of exchange)
        or send
        by first class mail at the risk of the transferee (in the case of transfer)
        or
        holder (in the case of exchange) to such address as the transferee or holder,
        as
        applicable, may request, an Individual Certificate or Certificates, as the
        case
        may require, for a like aggregate Fractional Undivided Interest and in such
        authorized denomination or denominations as may be requested. The presentation
        for transfer or exchange of any Individual Certificate shall not be valid
        unless
        made at the Corporate Trust Office by the registered holder in person, or
        by a
        duly authorized attorney-in-fact.

       

      (i)           At
        the option of the Certificateholders, Certificates may be exchanged for other
        Certificates of authorized denominations of a like Class and aggregate
        Fractional Undivided Interest, upon surrender of the Certificates to be
        exchanged at the Corporate Trust Office; provided, however, that no Certificate
        may be exchanged for new Certificates unless the original Fractional Undivided
        Interest represented by each such new Certificate (i) is at least equal to
        the
        minimum authorized denomination or (ii) is acceptable to the Depositor as
        indicated to the Trustee in writing. Whenever any Certificates are so
        surrendered for exchange, the Trustee shall sign and countersign and the
        Trustee
        shall deliver the Certificates which the Certificateholder making the exchange
        is entitled to receive.

       

      (j)           If
        the Trustee so requires, every Certificate presented or surrendered for transfer
        or exchange shall be duly endorsed by, or be accompanied by a written instrument
        of transfer, with a signature guarantee, in form satisfactory to the Trustee,
        duly executed by the holder thereof or his or her attorney duly authorized
        in
        writing.

       

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

       

      (l)           The
        Trustee shall cancel all Certificates surrendered for transfer or exchange
        but
        shall retain such Certificates in accordance with its standard retention
        policy
        or for such further time as is required by the record retention requirements
        of
        the Securities Exchange Act of 1934, as amended, and thereafter may destroy
        such
        Certificates.

       

      Section
        5.03                                Mutilated,
        Destroyed, Lost or Stolen Certificates.

       

      (a)           If
        (i) any mutilated Certificate is surrendered to the Trustee, or the Trustee
        receives evidence to its satisfaction of the destruction, loss or theft of
        any
        Certificate, and (ii) there is delivered to the Trustee such security or
        indemnity as it may require to save it harmless, and (iii) the Trustee has
        not
        received notice that such Certificate has been acquired by a third Person,
        the
        Trustee shall sign, countersign and deliver, in exchange for or in lieu of
        any
        such mutilated, destroyed, lost or stolen Certificate, a new Certificate
        of like
        tenor and Fractional Undivided Interest but in each case bearing a different
        number. The mutilated, destroyed, lost or stolen Certificate shall thereupon
        be
        canceled of record by the Trustee and shall be of no further effect and evidence
        no rights.

       

      (b)           Upon
        the issuance of any new Certificate under this Section 5.03, the Trustee
        may
        require the payment of a sum sufficient to cover any tax or other governmental
        charge that may be imposed in relation thereto and any other expenses (including
        the fees and expenses of the Trustee) connected therewith. Any duplicate
        Certificate issued pursuant to this Section 5.03 shall constitute complete
        and
        indefeasible evidence of ownership in the Trust Fund, 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.

       

      Prior
        to
        due presentation of a Certificate for registration of transfer, the Depositor,
        the Trustee and any agent of the Depositor or the Trustee may treat the Person
        in whose name any Certificate is registered as the owner of such Certificate
        for
        the purpose of receiving distributions pursuant to Section 6.01 and for all
        other purposes whatsoever. Neither the Depositor nor the Trustee or any agent
        of
        the Depositor or the Trustee shall be affected by notice to the contrary.
        No
        Certificate shall be deemed duly presented for a transfer effective on any
        Record Date unless the Certificate to be transferred is presented no later
        than
        the close of business on the third Business Day preceding such Record
        Date.

       

      Section
        5.05                                Transfer
        Restrictions on Residual Certificates.

       

      (a)           No
        transfer, sale or other disposition of a Residual Certificate (including
        a
        beneficial interest therein) may be made unless, prior to the transfer, sale
        or
        other disposition of a Residual Certificate, (1) the proposed transferee
        (including the initial purchasers thereof) delivers to the Trustee and the
        Depositor an affidavit and agreement in the form attached hereto as Exhibit
        E
        stating, among other things, that as of the date of such transfer such
        transferee is a Permitted Transferee and a United States Person and that
        such
        transferee is not acquiring such Residual Certificate for the account of
        any
        Person who is not a Permitted Transferee or a United States Person (a
“Transferee Affidavit”), and (2) the proposed transferor delivers to the Trustee
        and the Depositor an affidavit in the form attached hereto as Exhibit R to
        the
        effect that it has no knowledge that the statements made by the proposed
        transferee in any such Transferee Affidavit are false (a “Transferor
        Affidavit”). The Tax Matters Person shall not consent to a transfer of a
        Residual Certificate if it has actual knowledge that any statement made in
        the
        Transferee Affidavit or Transferor Affidavit issued pursuant to the preceding
        sentence is not true. Notwithstanding any transfer, sale or other disposition
        of
        a Residual Certificate to any Person who is not a Permitted Transferee, such
        transfer, sale or other disposition shall be deemed to be of no legal force
        or
        effect whatsoever and such Person shall not be deemed to be a Holder of a
        Residual Certificate for any purpose hereunder, including, but not limited
        to,
        the receipt of distributions thereon. If any purported transfer shall be
        in
        violation of the provisions of this Subsection 5.05(a), then the prior Holder
        thereof shall, upon discovery that the transfer of such Residual Certificate
        was
        not in fact permitted by this Subsection 5.05(a), be restored to all rights
        as a
        Holder thereof retroactive to the date of the purported transfer. None of
        the
        Trustee or the Depositor shall be under any liability to any Person for any
        registration or transfer of a Residual Certificate that is not permitted
        by this
        Subsection 5.05(a) or for making payments due on such Residual Certificate
        to
        the purported Holder thereof or taking any other action with respect to such
        purported Holder under the provisions of this Agreement so long as the related
        Transferee Affidavit and Transferor Affidavit referred to above were received
        with respect to such transfer, and the Trustee and the Depositor, as applicable,
        had no knowledge that they were untrue. The prior Holder shall be entitled
        to
        recover from any purported Holder of a Residual Certificate that was in fact
        not
        a permitted transferee under this Subsection 5.05(a) at the time it became
        a
        Holder all payments made on such Residual Certificate. Each Holder of a Residual
        Certificate, by acceptance thereof, shall be deemed for all purposes to have
        consented to the provisions of this Section 5.05 and to any amendment of
        this
        Agreement deemed necessary (whether as a result of new legislation or otherwise)
        by counsel of the Tax Matters Person, the Trustee or the Depositor to ensure
        that the Residual Certificates are not transferred to any Person who is not
        a
        Permitted Transferee or a United States Person and that any transfer of such
        Residual Certificates will not cause the imposition of a tax upon the Trust
        or
        cause REMIC I, REMIC II or REMIC III to fail to qualify as a REMIC.

       

      (c)           The
        Residual Certificates (including a beneficial interest therein) may not be
        purchased by or transferred to any Person who is not a United States
        Person.

       

      (d)           By
        accepting a Residual Certificate, the purchaser thereof agrees to be a Tax
        Matters Person, and appoints the Trustee to act as its agent with respect
        to all
        matters concerning the tax obligations of the Trust.

       

      Section
        5.06                                Restrictions
        on Transferability of Non-Offered Certificates.

       

      (a)           No
        offer, sale, transfer or other disposition (including pledge) of any Non-Offered
        Certificate shall be made by any Holder thereof unless registered under the
        Securities Act, or an exemption from the registration requirements of the
        Securities Act and any applicable state securities or “Blue Sky” laws is
        available and the prospective transferee (other than the Depositor) of such
        Certificate signs and delivers to the Trustee an Investment Letter, if the
        transferee is an Institutional Accredited Investor, in the form set forth
        as
        Exhibit F-l hereto, or a Rule 144A Certificate, if the transferee is a QIB,
        in
        the form set forth as Exhibit F-2 hereto. Notwithstanding the provisions
        of the
        immediately preceding sentence, no restrictions shall apply with respect
        to the
        transfer or registration of transfer of a beneficial interest in any Non-Offered
        Certificate that is a Global Certificate of a Class to a transferee that
        takes
        delivery in the form of a beneficial interest in the Global Certificate of
        such
        Class provided that each such transferee shall be deemed to have made such
        representations and warranties contained in the Rule 144A Certificate as
        are
        sufficient to establish that it is a QIB. In the case of a proposed transfer
        of
        any Certificate to a transferee other than a QIB, the Trustee may require
        an
        Opinion of Counsel addressed to the Trustee that such transaction is exempt
        from
        the registration requirements of the Securities Act. The cost of such opinion
        shall not be an expense of the Trustee or the Trust Fund.

       

      (b)           The
        Non-Offered Certificates shall each bear a Securities Legend.

       

      Section
        5.07                                ERISA
        Restrictions.

       

      (a)           Subject
        to the provisions of subsection (b), no Residual Certificates or Non-Offered
        Subordinate Certificates may be acquired directly or indirectly by, or on
        behalf
        of, an employee benefit plan or other retirement arrangement which is subject
        to
        Title I of ERISA or Section 4975 of the Code, unless the proposed transferee
        provides either (i) the Trustee, with an Opinion of Counsel addressed to
        the
        Depositor, the Trustee and the Master Servicer (upon which they may rely)
        which
        is satisfactory to the Trustee, which opinion will not be at the expense
        of the
        Depositor, the Trustee or the Master Servicer, that the purchase of such
        Certificates by or on behalf of such Plan is permissible under applicable
        law,
        will not constitute or result in a nonexempt prohibited transaction under
        ERISA
        or Section 4975 of the Code and will not subject the Depositor, the Master
        Servicer or the Trustee to any obligation in addition to those undertaken
        in the
        Agreement or (ii) in the case of the Non-Offered Subordinate Certificates,
        a
        representation or certification to the Trustee (upon which the Trustee and
        the
        other parties hereto are authorized to rely) to the effect that the proposed
        transfer and holding of such a Certificate and the servicing, management
        and
        operation of the Trust: (I) will not result in a prohibited transaction under
        Section 406 of ERISA or Section 4975 of the Code which is not covered under
        an
        individual or class prohibited transaction exemption including but not limited
        to Department of Labor Prohibited Transaction Exemption (“PTE”) 84-14 (Class
        Exemption for Plan Asset Transactions Determined by Independent Qualified
        Professional Asset Managers); PTE 91-38 (Class Exemption for Certain
        Transactions Involving Bank Collective Investment Funds); PTE 90-1 (Class
        Exemption for Certain Transactions Involving Insurance Company Pooled Separate
        Accounts), PTE 95-60 (Class Exemption for Certain Transactions Involving
        Insurance Company General Accounts), and PTCE 96-23 (Class Exemption for
        Plan
        Asset Transactions Determined by In-House Asset Managers and (II) will not
        subject the Depositor, the Master Servicer or the Trustee to any obligation
        in
        addition to those undertaken in the Agreement.

       

      (b)           Any
        Person acquiring an interest in a Global Certificate which is a Non-Offered
        Subordinate Certificate, by acquisition of such Certificate, shall be deemed
        to
        have represented to the Trustee that in the case of the Non-Offered Subordinate
        Certificates, either: (i) it is not acquiring an interest in such Certificate
        directly or indirectly by, or on behalf of, an employee benefit plan or other
        retirement arrangement which is subject to Title I of ERISA or Section 4975
        of
        the Code, or (ii) the transfer and holding of an interest in such Certificate
        to
        that Person and the subsequent servicing, management and operation of the
        Trust
        and its assets: (I) will not result in any prohibited transaction which is
        not
        covered under an individual or class prohibited transaction exemption,
        including, but not limited to, PTE 84-14, PTE 91-38, PTE 90-1, PTE 95-60
        or PTE
        96-23 and (II) will not subject the Depositor, the Master Servicer or the
        Trustee to any obligation in addition to those undertaken in the
        Agreement.

       

      (c)           Each
        beneficial owner of a Class B-1, Class B-2 or Class B-3 Certificate or any
        interest therein shall be deemed to have represented, by virtue of its
        acquisition or holding of that certificate or interest therein, that either
        (i)
        it is not a Plan or investing with “Plan Assets”, (ii) it has acquired and is
        holding such certificate in reliance on Prohibited Transaction Exemption
        90-30,
        as amended from time to time (the “Exemption”), and that it understands that
        there are certain conditions to the availability of the Exemption, including
        that the certificate must be rated, at the time of purchase, not lower than
        “BBB-” (or its equivalent) by S&P, Fitch, Dominion Bond Rating Service
        Limited (known as DBRS Limited), Dominion Bond Rating Service, Inc. (known
        as
        DBRS, Inc.) or Moody’s, and the certificate is so rated or (iii) (1) it is an
        insurance company, (2) the source of funds used to acquire or hold the
        certificate or interest therein is an “insurance company general account,” as
        such term is defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60,
        and (3) the conditions in Sections I and III of PTCE 95-60 have been
        satisfied.

       

      (d)           Neither
        the Trustee nor the Master Servicer will be required to monitor, determine
        or
        inquire as to compliance with the transfer restrictions in this Agreement
        with
        respect to the Book-Entry Certificates. Any attempted or purported transfer
        of
        any Certificate in violation of the provisions of this Agreement shall be
        void
        ab initio and such Certificate shall be considered to have been held
        continuously by the prior permitted Certificateholder. Any transferor of
        any
        Certificate in violation of such provisions, shall indemnify and hold harmless
        the Trustee and the Master Servicer from and against any and all liabilities,
        claims, costs or expenses incurred by the Trustee or the Master Servicer
        as a
        result of such attempted or purported transfer. The Trustee shall not be
        liable
        for transfer of any such Book-Entry Certificates in or through book-entry
        facilities of any Depository or between or among Depository Participants
        or
        Certificate Owners made in violation of the transfer restrictions set forth
        herein.

       

      Section
        5.08                                Rule
        144A Information.

       

      For
        so
        long as any Non-Offered Certificates are outstanding and are “restricted
        securities” within the meaning of Rule 144(a)(3) of the Securities Act, (1) the
        Depositor will provide or cause to be provided to any holder of such Non-Offered
        Certificates and any prospective purchaser thereof designated by such a holder,
        upon the request of such holder or prospective purchaser, the information
        required to be provided to such holder or prospective purchaser by Rule
        144A(d)(4) under the Securities Act; and (2) the Depositor shall update such
        information from time to time in order to prevent such information from becoming
        false and misleading and will take such other actions as are necessary to
        ensure
        that the safe harbor exemption from the registration requirements of the
        Securities Act under Rule 144A is and will be available for resales of such
        Certificates conducted in accordance with Rule 144A.

       

      Section
        5.09                                Exchangeable
        and Exchanged Certificates.

       

      (a)           As
        of the Closing Date, the ES Trust shall be established and maintained in
        the
        name of the Trustee, as a separate trust within the Trust, which shall issue
        the
        Certificates (other than the Class I-R-1 Certificates and the Class II-R
        Certificates) and the corpus of which shall be held by the Trustee for the
        benefit of the Holders of such Certificates. The corpus of the ES Trust shall
        consist of the REMIC III Regular Interests and the Class I-R-2 Interest and
        all
        proceeds thereof.  It is intended, for federal income tax purposes,
        that the ES Trust will qualify as a grantor trust under Subpart E, part I
        of
        subchapter J of chapter 1 of the Code, of which the Holders of the Certificates
        (other than the Class I-R-1 Certificates and the Class II-R Certificates)
        are
        owners, rather than a partnership, an association taxable as a corporation
        or a
        taxable mortgage pool, and that, to the fullest extent possible, beneficial
        ownership of a Certificate (other than the Class I-R-1 Certificates and the
        Class II-R Certificates) will be treated as direct beneficial ownership of
        each
        individual, uncertificated REMIC III Regular Interest or Class I-R-2 Interest
        held by the ES Trust for which such Certificate is designated as the
        Corresponding Certificate in Section 5.01(c)(iii).  The powers granted
        and obligations undertaken in this Agreement shall be construed so as to
        further
        such intent.  The parties hereto, by entering into this Agreement, and
        each Holder of the Certificates, by acceptance of beneficial ownership of
        its
        Certificate, agree to treat, for federal income tax purposes, the ES Trust
        as a
        grantor trust under Subpart E, part I of subchapter J of chapter 1 of the
        Code
        and, to the fullest extent possible, the beneficial ownership of a Certificate
        (other than the Class I-R-1 Certificates and the Class II-R Certificates)
        as
        direct beneficial ownership of each individual, uncertificated REMIC III
        Regular
        Interest or Class I-R-2 Interest held by the ES Trust for which such Certificate
        is designated as the Corresponding Certificate in Section 5.01(c)(iii).  It
        is further intended, and the parties hereto agree, that, with respect to
        the
        Exchangeable Certificates and Exchanged Certificates for the avoidance of
        doubt,
        the group of uncertificated REMIC III Regular Interests or the Class I-R-2
        Interest the beneficial ownership of which is represented by any Exchanged
        Certificates immediately following an exchange shall be same group of
        uncertificated REMIC III Regular Interests or the Class I-R-2 Interest the
        beneficial ownership of which were represented by the Exchangeable Certificates
        relinquished for such Exchanged Certificates, and vice versa, in the case
        of an
        exchange of Exchanged Certificates for Exchangeable Certificates.

       

      (b)           If
        an Exchangeable or Exchanged Certificateholder wishes to exchange Certificates,
        the Exchangeable or Exchanged Certificateholder must notify the Trustee by
        e-mail to sfsexchange@usbank.com no later than seven Business Days before
        the
        proposed exchange date. The exchange date can be any Business Day from the
        25th
        day of the month to the second to the last Business Day of the month subject
        to
        the Trustee’s approval. The notice must be on the Exchangeable or Exchanged
        Certificateholder's letterhead, carry a medallion stamp guarantee and set
        forth
        the following information: the CUSIP number of both Exchangeable or Exchanged
        Certificates to be surrendered and Exchangeable or Exchanged Certificates
        to be
        received, the aggregate outstanding Current Principal Amount and the aggregate
        original Current Principal Amount of the Exchangeable or Exchanged Certificates
        to be exchanged, the Exchangeable or Exchanged Certificateholder's DTC
        participant number and the proposed exchange date. After receiving the notice,
        the Trustee will e-mail the Exchangeable or Exchanged Certificateholder with
        wire payment instructions relating to the exchange fee, which shall be equal
        to
        $5,000 per exchange. The Trustee will notify the Depositor of any such exchange
        for the purpose of DTC eligibility and will notify the Rating Agencies of
        any
        such exchange. The Exchangeable or Exchanged Certificateholder shall utilize
        the
        Deposit and Withdrawal System at DTC to exchange the Certificates. A notice
        becomes irrevocable on the seventh Business Day before the proposed exchange
        date.

       

      (c)           The
        Trustee shall make the first distribution on Exchanged Certificates or
        Exchangeable Certificates received in an exchange transaction on the
        Distribution Date in the following month to the Exchangeable or Exchanged
        Certificateholder of record as of the close of business on the last day of
        the
        month of the exchange.

       

      (d)           If
        an Exchangeable or Exchanged Certificateholder elects to exchange its
        Exchangeable Certificates for related Exchanged Certificates or vice versa,
        the
        following three conditions must be satisfied:

       

      
        	
                i.  

              	
                the
                  aggregate Current Principal Amount of the Exchanged Certificates
                  received
                  in the exchange, immediately after the exchange, must equal the
                  aggregate
                  Current Principal Amount, immediately prior to the exchange, of
                  the
                  Exchangeable Certificates relinquished therefor, and vice
                  versa;

              

      

       

      
        	
                ii.  

              	
                the
                  annual interest amount payable with respect to the Exchanged Certificates
                  received in the exchange must equal the aggregate annual interest
                  amount
                  payable with respect to the Exchangeable Certificates relinquished
                  therefor, and vice versa; and

              

      

       

      
        	
                iii.  

              	
                the
                  Class or Classes of Exchangeable Certificates must be exchanged
                  for
                  Exchanged Certificates in a Combination Group in the applicable
                  proportions, if any, described in the Exhibit C and vice
                  versa.

              

      

       

       

       

       

      ARTICLE
        VI

      Payments
        to Certificateholders

       

      Section
        6.01                                Distributions
        on the Certificates.

       

      (a)           Interest
        and principal (as applicable) on the Certificates will be distributed by
        the
        Trustee monthly on each Distribution Date based on the Certificates Distribution
        Report for such Distribution Date furnished by the Trustee pursuant to 6.05
        hereof, commencing in September 2007, in an amount equal to the related
        Available Funds on deposit in the Distribution Account for such Distribution
        Date. On each Distribution Date, the related Available Funds on deposit in
        the
        Distribution Account shall be distributed as follows:

       

      (I)           Distributions
        on the Group I Certificates:

       

      (i)           On
        each Distribution Date, the Group I Available Funds will be distributed to
        the
        Group I Senior Certificates as follows:

       

      first,
        to the Group I Senior Certificates (other than the Class I-PO Certificates),
        on
        a pro rata basis, the Accrued Certificate Interest on such Classes for such
        Distribution Date;

       

      second,
        to the Group I Senior Certificates (other than the Class I-PO Certificates),
        on
        a pro rata basis, any Accrued Certificate Interest thereon remaining
        undistributed from previous Distribution Dates, to the extent of remaining
        Group
        I Available Funds;

       

      third,
        to the Group I Senior Certificates (other than the Class I-PO Certificates),
        as
        principal, the Group I Senior Optimal Principal Amount, in the order described
        below, in reduction of the Current Principal Amounts thereof, until the Current
        Principal Amounts thereof have been reduced to zero;

       

      fourth,
        to the Class I-PO Certificates, the Class I-PO Certificate Principal
        Distribution Amount for such Distribution Date to the extent of the remaining
        Group I Available Funds, until the Current Principal Amount thereof has been
        reduced to zero; and

       

      fifth,
        to the Class I-PO Certificates, the portion of the Class I-PO Certificate
        Deferred Amount, provided that (i) on any Distribution Date, distributions
        pursuant to this priority fifth shall not exceed the excess, if any, of
        (x) Group I Available Funds remaining after giving effect to distributions
        pursuant to priority first through fourth above over (y) the
        sum of the amount of Accrued Certificate Interest for such Distribution Date
        and
        Accrued Certificate Interest remaining undistributed from previous Distribution
        Dates on all Classes of Group I Subordinate Certificates then outstanding,
        (ii)
        such distributions shall not reduce the Current Principal Amount of the Class
        I-PO Certificates, and (iii) no distribution will be made in respect of the
        Class I-PO Certificate Deferred Amount on or after the Group I Cross-Over
        Date.

       

      On
        each
        Distribution Date, an amount, up to the amount of the Group I Senior Optimal
        Principal Amount for that Distribution Date, will be distributed as principal
        in
        the following order of priority:

       

      
        	
                A.  

              	
                to
                  the Class I-R-1 Certificates and the Class I-R-2 Certificates,
                  pro rata,
                  in reduction of the Current Principal Amounts thereof, until the
                  Current
                  Principal Amounts thereof have been reduced to zero;
                  and

              

      

       

      
        	
                B.  

              	
                to
                  the Class I-A-1 Certificates, Class I-A-2 Certificates and each
                  combination of Exchanged Certificates (as further allocated in
                  clause (iv)
                  below), concurrently on a pro rata basis, based on the Current
                  Principal
                  Amounts thereof, until the Current Principal Amounts thereof have
                  been
                  reduced to zero.

              

      

       

      (ii)           On
        each Distribution Date on or prior to the Group I Cross-Over Date, an amount
        equal to the remaining Group I Available Funds after the distributions in
        clause
        (i) above shall be distributed sequentially in the following order, to the
        Class
        I-B-1, Class I-B-2, Class I-B-3, Class I-B-4, Class I-B-5 and Class I-B-6
        Certificates, in each case up to an amount equal to and in the following
        order:
        (a) the Accrued Certificate Interest thereon for such Distribution Date,
        (b) any
        Accrued Certificate Interest thereon remaining undistributed from previous
        Distribution Dates and (c) such Class’s Group I Allocable Share for such
        Distribution Date, in each case, to the extent of the remaining Group I
        Available Funds.

       

      (iii)           If,
        after distributions have been made pursuant to priorities first and
second of clause (i) above on any Distribution Date, the remaining
        Group I Available Funds is less than the Scheduled Principal Balance of the
        Group I Mortgage Loans, such amounts shall be reduced, and such remaining
        funds
        will be distributed to the Group I Senior Certificates (other than the Class
        I-X
        Certificates) on the basis of such reduced amounts. Notwithstanding any
        reduction in principal distributable to the Class I-PO Certificates pursuant
        to
        this paragraph, the principal balance of the Class I-PO Certificates shall
        be
        reduced not only by principal so distributed but also by the difference between
        (i) principal distributable to the Class I-PO Certificates in accordance
        with
        priority fourth of clause (i) above, and (ii) principal actually
        distributed to the Class I-PO Certificates after giving effect to this paragraph
        (such difference for the Class I-PO Certificates, the “Class I-PO Certificate
        Cash Shortfall”). The Class I-PO Certificate Cash Shortfall for the Class I-PO
        Certificates with respect to any Distribution Date will be added to the Class
        I-PO Certificate Deferred Amount.

       

      (iv)           In
        the event that the Exchangeable Certificates are exchanged for their related
        Exchanged Certificates within a Combination Group, such Exchanged Certificates
        will be entitled to a proportionate share of the principal distributions
        of the
        Exchangeable Certificates in such Combination Group as described in Exhibit
        C.
        Such Exchanged Certificates will also be entitled to the interest accrued
        on,
        and amounts payable in respect of certain interest shortfalls to, the
        Exchangeable Certificates.

       

      On
        each
        Distribution Date, principal allocable to the Exchanged Certificates pursuant
        to
        clause (i)(B) above shall be distributed in the following order of
        priority:

       

      
        	
                A.  

              	
                Combination
                  Group I. To the Class I-A-3 Certificates and Class I-A-4
                  Certificates, concurrently, on a pro rata basis until the Current
                  Principal Amounts thereof are reduced to
                  zero.

              

      

       

      
        	
                B.  

              	
                Combination
                  Group II. To the Class I-A-5, Class I-A-6 and Class I-A-7
                  Certificates in the following order of
                  priority:

              

      

       

      
        	
                 

              	
                (a)

              	
                to
                  the Class I-A-7 Certificates, the Lockout Priority Amount for such
                  Distribution Date, until its Current Principal Amount is reduced
                  to
                  zero;

              

      

       

      
        	
                 

              	
                (b)

              	
                sequentially,
                  to the Class I-A-5 Certificates and Class I-A-6 Certificates, in
                  that
                  order, in each case, until their respective Current Principal Amounts
                  are
                  reduced to zero; and

              

      

       

      
        	
                 

              	
                (c)

              	
                to
                  the Class I-A-7 Certificates, without regard to the Lockout Priority
                  Amount, until its Current Principal Amount is reduced to
                  zero.

              

      

       

      (II)           Distributions
        on the Group II Certificates:

       

      (i)           On
        each Distribution Date, the Group II Available Funds shall be distributed
        to the
        Group II Senior Certificates as follows:

       

      first,
        to the Group II Senior Certificates (other than the Class II-PO Certificates),
        on a pro rata basis, the Accrued Certificate Interest on such Classes for
        such
        Distribution Date;

       

      second,
        to the Group II Senior Certificates (other than the Class II-PO Certificates),
        on a pro rata basis, any Accrued Certificate Interest thereon remaining
        undistributed from previous Distribution Dates, to the extent of remaining
        Group
        I Available Funds;

       

      third,
        to the Class II-A-1 Certificates and Class II-A-2 Certificates, as principal,
        in
        the order described in this Agreement, the Group II Senior Optimal Principal
        Distribution Amount, in reduction of the Current Principal Amount thereof,
        until
        the Current Principal Amounts thereof have been reduced to zero;

       

      fourth,
        to the Class II-PO Certificates, the Class II-PO Certificate Principal
        Distribution Amount for such Distribution Date to the extent of the remaining
        Group II Available Funds, until the Current Principal Amount thereof has
        been
        reduced to zero; and

       

      fifth,
        to the Class II-PO Certificates, the portion of the Class II-PO Certificate
        Deferred Amount, provided that (i) on any Distribution Date, distributions
        pursuant to this priority fifth shall not exceed the excess, if any, of
        (x) Group II Available Funds remaining after giving effect to distributions
        pursuant to priority first through fourth above over (y) the
        sum of the amount of Accrued Certificate Interest for such Distribution Date
        and
        Accrued Certificate Interest remaining undistributed from previous Distribution
        Dates on all Classes of Group II Subordinate Certificates then outstanding,
        (ii)
        such distributions shall not reduce the Current Principal Amount of the Class
        II-PO Certificates, and (iii) no distribution will be made in respect of
        the
        Class II-PO Certificate Deferred Amount on or after the Group II Cross-Over
        Date.

       

      On
        each
        Distribution Date, an amount up to the amount of the Group II Senior Optimal
        Principal Distribution Amount for that Distribution Date shall be distributed
        as
        principal in the following order of priority:

       

      
        	
                A.  

              	
                to
                  the Class II-R Certificates, in reduction of the Current Principal
                  Amount
                  thereof, until the Current Principal Amount thereof has been reduced
                  to
                  zero; and

              

      

       

      
        	
                B.  

              	
                to
                  the Class II-A-1 Certificates and Class II-A-2 Certificates, concurrently
                  on a pro rata basis, in reduction of the Current Principal Amounts
                  thereof, until the Current Principal Amounts thereof have been
                  reduced to
                  zero.

              

      

       

      (ii)           On
        each Distribution Date on or prior to the Group II Cross-Over Date, an amount
        equal to the remaining Group II Available Funds after the distributions in
        clause (i) above shall be distributed sequentially in the following order,
        to
        the Class II-B-1, Class II-B-2, Class II-B-3, Class II-B-4, Class II-B-5
        and
        Class II-B-6 Certificates, in each case up to an amount equal to and in the
        following order: (a) the Accrued Certificate Interest thereon for such
        Distribution Date, (b) any Accrued Certificate Interest thereon remaining
        undistributed from previous Distribution Dates and (c) such Class’s Group II
        Allocable Share for such Distribution Date, in each case, to the extent of the
        remaining Group II Available Funds.

       

      (iii)           If,
        after distributions have been made pursuant to priorities first and
second of clause (i) above on any Distribution Date, the remaining
        Group II Available Funds is less than the Scheduled Principal Balance of
        the
        Group II Mortgage Loans, such amounts shall be reduced, and such remaining
        funds
        will be distributed to the Group II Senior Certificates (other than the Class
        II-X Certificates) on the basis of such reduced amounts. Notwithstanding
        any
        reduction in principal distributable to the Class II-PO Certificates pursuant
        to
        this paragraph, the principal balance of the Class II-PO Certificates shall
        be
        reduced not only by principal so distributed but also by the difference between
        (i) principal distributable to the Class II-PO Certificates in accordance
        with
        priority fourth of clause (i) above, and (ii) principal actually
        distributed to the Class II-PO Certificates after giving effect to this
        paragraph (such difference for the Class II-PO Certificates, the “Class II-PO
        Certificate Cash Shortfall”). The Class II-PO Certificate Cash Shortfall for the
        Class II-PO Certificates with respect to any Distribution Date will be added
        to
        the Class II-PO Certificate Deferred Amount.

       

      On
        each
        Distribution Date, any Available Funds related to a Loan Group remaining
        after
        payment of interest and principal to the Classes of Certificates entitled
        thereto, in each case as described above, will be distributed to the related
        Class R Certificates; provided that, if on any Distribution Date there are
        any
        Group I Available Funds and Group II Available Funds remaining after payment
        of
        interest and principal to a Class or Classes of Certificates entitled thereto,
        such amounts will be distributed to the other Class or Classes of related
        Senior
        Certificates, pro rata, based upon their Current Principal Amounts, until
        all
        amounts due to all Classes of Senior Certificates have been paid in full,
        before
        any amounts are distributed to the related Class R Certificates.

       

      (b)           “Pro
        rata” distributions among Classes of Certificates will be made in proportion to
        the then Current Principal Amount of such Classes.

       

      (c)           No
        Accrued Certificate Interest will be payable with respect to any Class of
        Certificates after the Distribution Date on which the Current Principal Amount
        or Notional Amount of such Certificate has been reduced to zero.

       

      (d)           If
        on any Distribution Date the Available Funds for the related Senior Certificates
        is less than the Accrued Certificate Interest on the related Senior Certificates
        for such Distribution Date prior to reduction for Net Interest Shortfalls
        and
        the interest portion of Realized Losses, the shortfall will be allocated
        among
        the Holders of each Class of the related Senior Certificates (other than
        the
        Class I-PO Certificates and Class II-PO Certificates) and the related
        Subordinate Certificates, on a pro rata basis, in proportion to the respective
        amounts of Accrued Certificate Interest for that Distribution Date that would
        have been allocated thereto in the absence of such Net Interest Shortfalls
        and/or Realized Losses for such Distribution Date. In addition, the amount
        of
        any interest shortfalls with respect to the related Mortgage Loans will
        constitute unpaid Accrued Certificate Interest and will be distributable
        to
        Holders of the Certificates of the related Classes entitled to such amounts
        on
        subsequent Distribution Dates, to the extent of the applicable Available
        Funds
        remaining after current interest distributions as required herein. Any such
        amounts so carried forward will not bear interest. Any interest shortfalls
        will
        not be offset by a reduction in the servicing compensation of the Servicers
        or
        otherwise, except to the limited extent described in the fourth preceding
        paragraph with respect to Prepayment Interest Shortfalls. The interest portion
        of Realized Losses will be allocated first to the related Subordinate
        Certificates, and after the related Cross-Over Date, to the related Senior
        Certificates, in each case on a pro rata basis, in proportion to the amount
        of
        Accrued Certificate Interest that would have been allocated thereto in the
        absence of such Realized Losses.

       

      (e)           The
        expenses and fees of the Trust shall be paid by each of REMIC I, REMIC II
        and
        REMIC III, to the extent that such expenses and fees relate to the assets
        of
        each such REMIC, and all other expenses and fees of the Trust shall be paid
        pro
        rata by each of REMIC I, REMIC II and REMIC III.

       

      (f)           [Reserved].

       

      (g)           In
        addition, in the event that the Master Servicer receives any Subsequent
        Recoveries from a Servicer, the Master Servicer shall deposit such funds
        into
        the Master Servicer Collection Account pursuant to Section 4.02. If, after
        taking into account such Subsequent Recoveries, the amount of a Realized
        Loss is
        reduced, the amount of such Subsequent Recoveries will be applied to increase
        the Current Principal Amount of the related Class of Subordinate Certificates
        with the highest payment priority to which Realized Losses have been allocated,
        but not by more than the amount of Realized Losses previously allocated to
        that
        Class of Subordinate Certificates pursuant to Section 6.03. The amount of
        any
        remaining Subsequent Recoveries will be applied to sequentially increase
        the
        Current Principal Amount of the related Subordinate Certificates, beginning
        with
        the Class of such Subordinate Certificates with the next highest payment
        priority, up to the amount of such Realized Losses previously allocated to
        such
        Class of Certificates pursuant to Section 6.03. Holders of such Certificates
        will not be entitled to any payment in respect of current interest on the
        amount
        of such increases for any Interest Accrual Period preceding the Distribution
        Date on which such increase occurs. Any such increases shall be applied to
        the
        Current Principal Amount of each Subordinate Certificate of such Class in
        accordance with its respective Fractional Undivided Interest.

       

      Section
        6.02                                [Reserved.]

       

      Section
        6.03                                Allocation
        of Losses.

       

      On
        or prior to each Determination Date,
        the Master Servicer shall determine the amount of any Realized Loss in respect
        of each Mortgage Loan that occurred during the immediately preceding calendar
        month, based on information provided by the related Servicer.

       

      (a)           Group
        I Certificates

       

      (i)           Realized
        Losses with respect to a Group I Mortgage Loan will be allocated on a pro
        rata
        basis between the related PO Percentage of the Scheduled Principal Balance
        of
        such Group I Mortgage Loan and the related Non-PO Percentage of such Scheduled
        Principal Balance.

       

      (ii)           On
        each Distribution Date, the related PO Percentage of the principal portion
        of
        any Realized Loss on a Discount Mortgage Loan in Loan Group I and any Class
        I-PO
        Certificate Cash Shortfall will be allocated to the Class I-PO Certificates
        until the Current Principal Amount of the Class I-PO Certificates is reduced
        to
        zero. With respect to any Distribution Date through the Group I Cross-Over
        Date,
        the aggregate of all amounts so allocable to the Class I-PO Certificates
        on such
        date in respect of any Realized Losses and any Class I-PO Certificate Cash
        Shortfalls and all amounts previously allocated in respect of such Realized
        Losses or Class I-PO Certificate Cash Shortfalls and not distributed on prior
        Distribution Dates will be the “Class I-PO Certificate Deferred
        Amount.”  To the extent funds are available therefor on any
        Distribution Date through the Group I Cross-Over Date, distributions in respect
        of the Class I-PO Certificate Deferred Amount for the Class I-PO Certificates
        from Available Funds will be made in accordance with priority fifth of
        clause (i) above. No interest shall accrue on the Class I-PO Certificate
        Deferred Amount. On each Distribution Date through the Group I Cross-Over
        Date,
        the Current Principal Amount of the lowest ranking Class of Subordinate
        Certificates then outstanding will be reduced by the amount of any distributions
        in respect of any Class I-PO Certificate Deferred Amount on such Distribution
        Date in accordance with the priorities set forth above, through the operation
        of
        the Group I Subordinate Certificate Writedown Amount. After the Group I
        Cross-Over Date, no more distributions will be made in respect of, and
        applicable Realized Losses and Class I-PO Certificate Cash Shortfalls allocable
        to the Class I-PO Certificates will not be added to, the Class I-PO Certificate
        Deferred Amount.

       

      (iii)           The
        related Non-PO Percentage of the principal portion of Realized Losses on
        the
        Group I Mortgage Loans will be allocated on any Distribution Date as follows:
        first, to the Class I-B-6 Certificates; second, to the Class I-B-5 Certificates;
        third, to the Class I-B-4 Certificates; fourth, to the Class I-B-3 Certificates;
        fifth, to the Class I-B-2 Certificates; and sixth, to the Class I-B-1
        Certificates, in each case until the Current Principal Amount of such Class
        has
        been reduced to zero.

       

      (iv)           Thereafter,
        the related Non-PO Percentage of the principal portion of Realized Losses
        on the
        Group I Mortgage Loans will be allocated on any Distribution Date first,
        to the
        Class I-A-2 Certificates until the Current Principal Amount of that Class
        has
        been reduced to zero, and then to the Class I-A-1 Certificates and the Exchanged
        Certificates, on a pro rata basis.

       

      (v)           Notwithstanding
        the foregoing, no such allocation of any Realized Loss shall be made on a
        Distribution Date to any Class of Group I Certificates (other than the Class
        I-X
        Certificates) to the extent that such allocation would result in the reduction
        of the aggregate Current Principal Amounts of all the Group I Certificates
        (other than the Class I-X Certificates) as of such Distribution Date, after
        giving effect to all distributions and prior allocations of Realized Losses
        on
        the Group I Mortgage Loans on such date, to an amount less than the aggregate
        Scheduled Principal Balance of all of the Group I Mortgage Loans as of the
        first
        day of the month of such Distribution Date (such limitation, the “Group I Loss
        Allocation Limit”).

       

      (b)           Group
        II Certificates

       

      (i)           Realized
        Losses with respect to a Group II Mortgage Loan will be allocated on a pro
        rata
        basis between the related PO Percentage of the Scheduled Principal Balance
        of
        such Group II Mortgage Loan and the related Non-PO Percentage of such Scheduled
        Principal Balance.

       

      (ii)           On
        each Distribution Date, the related PO Percentage of the principal portion
        of
        any Realized Loss on a Discount Mortgage Loan in Loan Group II and any Class
        II-PO Certificate Cash Shortfall will be allocated to the Class II-PO
        Certificates until the Current Principal Amount of the Class II-PO Certificates
        is reduced to zero. With respect to any Distribution Date through the Group
        II
        Cross-Over Date, the aggregate of all amounts so allocable to the Class II-PO
        Certificates on such date in respect of any Realized Losses and any Class
        II-PO
        Certificate Cash Shortfalls and all amounts previously allocated in respect
        of
        such Realized Losses or Class II-PO Certificate Cash Shortfalls and not
        distributed on prior Distribution Dates will be the “Class II-PO Certificate
        Deferred Amount.”  To the extent funds are available therefor on any
        Distribution Date through the Group II Cross-Over Date, distributions in
        respect
        of the Class II-PO Certificate Deferred Amount for the Class II-PO Certificates
        from Available Funds will be made in accordance with priority fifth of
        clause (i) above. No interest shall accrue on the Class II-PO Certificate
        Deferred Amount. On each Distribution Date through the Group II Cross-Over
        Date,
        the Current Principal Amount of the lowest ranking Class of Subordinate
        Certificates then outstanding will be reduced by the amount of any distributions
        in respect of any Class II-PO Certificate Deferred Amount on such Distribution
        Date in accordance with the priorities set forth above, through the operation
        of
        the Group II Subordinate Certificate Writedown Amount. After the Group II
        Cross-Over Date, no more distributions will be made in respect of, and
        applicable Realized Losses and Class II-PO Certificate Cash Shortfalls allocable
        to the Class II-PO Certificates will not be added to, the Class II-PO
        Certificate Deferred Amount.

       

      (iii)           The
        related Non-PO Percentage of the principal portion of Realized Losses on
        the
        Group II Mortgage Loans will be allocated on any Distribution Date as follows:
        first, to the Class II-B-6 Certificates; second, to the Class II-B-5
        Certificates; third, to the Class II-B-4 Certificates; fourth, to the Class
        II-B-3 Certificates; fifth, to the Class II-B-2 Certificates; and sixth,
        to the
        Class II-B-1 Certificates, in each case until the Current Principal Amount
        of
        such Class has been reduced to zero.

       

      (iv)           Thereafter,
        the related Non-PO Percentage of the principal portion of Realized Losses
        on the
        Group II Mortgage Loans will be allocated on any Distribution Date first,
        to the
        Class II-A-2 Certificates until the Current Principal Amount of that Class
        has
        been reduced to zero, and then to the Class II-A-1 Certificates.

       

      (v)           Notwithstanding
        the foregoing, no such allocation of any Realized Loss shall be made on a
        Distribution Date to any Class of Group II Certificates (other than the Class
        II-X Certificates) to the extent that such allocation would result in the
        reduction of the aggregate Current Principal Amounts of all the Group I
        Certificates (other than the Class II-X Certificates) as of such Distribution
        Date, after giving effect to all distributions and prior allocations of Realized
        Losses on the Group II Mortgage Loans on such date, to an amount less than
        the
        aggregate Scheduled Principal Balance of all of the Group II Mortgage Loans
        as
        of the first day of the month of such Distribution Date (such limitation,
        the
“Group II Loss Allocation Limit”).

       

      (c)           Any
        Realized Losses allocated to a Class of Certificates shall be allocated among
        the related Certificates of such Class (other than the Interest Only
        Certificates) in proportion to their respective Current Principal Amounts.
        Any
        allocation of Realized Losses shall be accomplished by reducing the Current
        Principal Amount of the related Certificates on the related Distribution
        Date.

       

      (d)           Realized
        Losses shall be allocated on the Distribution Date in the month following
        the
        month in which such loss was incurred and, in the case of the principal portion
        thereof, after giving effect to distributions made on such Distribution
        Date.

       

      (e)           On
        each Distribution Date, the Trustee shall determine the Group I Subordinate
        Certificate Writedown Amount and the Group II Subordinate Certificate Writedown
        Amount.  Any Group I Subordinate Certificate Writedown Amount
        shall effect a corresponding reduction in the Current Principal Amount of
        (i) if
        prior to the Group I Cross-Over Date, the Current Principal Amounts of the
        Group
        I Subordinate Certificates, in the reverse order of their numerical Class
        designations and (ii) from and after the Group I Cross-Over Date, the Group
        I
        Senior Certificates, in accordance with priorities set forth in clause (b)
        above, which reduction shall occur on such Distribution Date after giving
        effect
        to distributions made on such Distribution Date.  Any Group II
        Subordinate Certificate Writedown Amount shall effect a corresponding reduction
        in the Current Principal Amount of (i) if prior to the Group II Cross-Over
        Date,
        the Current Principal Amounts of the Group II Subordinate Certificates, in
        the
        reverse order of their numerical Class designations and (ii) from and after
        the
        Group II Cross-Over Date, the Group II Senior Certificates, in accordance
        with
        priorities set forth in clause (b) above, which reduction shall occur on
        such
        Distribution Date after giving effect to distributions made on such Distribution
        Date.

       

      (f)           Any
        Net Interest Shortfall will be allocated among the Classes of Certificates
        in
        proportion to the respective amounts of Accrued Certificate Interest that
        would
        have been allocated thereto in the absence of such Net Interest Shortfall
        for
        such Distribution Date. The interest portion of any Realized Losses with
        respect
        to the Group I Mortgage Loans or Group II Mortgage Loans occurring on or
        prior
        to the Group I Cross-Over Date or Group II Cross-Over Date, respectively,
        will
        not be allocated among any Certificates, but will reduce the amount of Group
        I
        Available Funds or Group II Available Funds, respectively, on the related
        Distribution Date. As a result of the subordination of the Group I Subordinate
        Certificates and Group II Subordinate Certificates in right of distribution,
        such Realized Losses on the Group I Mortgage Loans and Group II Mortgage
        Loans
        will be borne by the Group I Subordinate Certificates and Group II Subordinate
        Certificates, in inverse order of their numerical Class designations. Following
        the Group I Cross-Over Date, the interest portion of Realized Losses on the
        Group I Mortgage Loans will be borne by the Group I Senior
        Certificates.  Following the Group I Cross-Over Date, the interest
        portion of Realized Losses on the Group I Mortgage Loans will be borne by
        the
        Group I Senior Certificates.

       

      Section
        6.04                                Payments.

       

      (a)           On
        each Distribution Date, other than the final Distribution Date, the Trustee
        shall distribute to each Certificateholder of record as of the immediately
        preceding Record Date the Certificateholder’s pro rata share of its Class (based
        on the aggregate Fractional Undivided Interest represented by such Holder’s
        Certificates) of all amounts required to be distributed on such Distribution
        Date to such Class. The Trustee shall calculate the amount to be distributed
        to
        each Class and, based on such amounts, the Trustee shall determine the amount
        to
        be distributed to each Certificateholder. All of the Trustee’s calculations of
        payments shall be based solely on information provided to the Trustee by
        the
        Master Servicer. The Trustee shall not be required to confirm, verify or
        recompute any such information but shall be entitled to rely conclusively
        on
        such information.

       

      (b)           Payment
        of the above amounts to each Certificateholder shall be made (i) by check
        mailed
        to each Certificateholder entitled thereto at the address appearing in the
        Certificate Register or (ii) upon receipt by the Trustee on or before the
        fifth
        Business Day preceding the Record Date of written instructions from a
        Certificateholder by wire transfer to a United States dollar account maintained
        by the payee at any United States depository institution with appropriate
        facilities for receiving such a wire transfer; provided, however, that the
        final
        payment in respect of each Class of Certificates will be made only upon
        presentation and surrender of such respective Certificates at the office
        or
        agency of the Trustee specified in the notice to Certificateholders of such
        final payment.

       

      Section
        6.05                                Statements
        to Certificateholders.

       

      (a)           Concurrently
        with each distribution to Holders of the Certificates, the Trustee shall
        make
        available to the parties hereto, each Rating Agency and each such Holder
        via the
        Trustee’s internet website as set forth below, a Certificates Distribution
        Report containing the following information with respect to the Certificates
        and
        the Mortgage Loans, expressed with respect to clauses (i) through (vii) in
        the
        aggregate and as a Fractional Undivided Interest representing an initial
        Current
        Principal Amount of $1,000, or in the case of the Residual Certificates,
        an
        initial Current Principal Amount of $50:

       

      (i)           
        the Current Principal Amount (or Notional Amount) of each Class of Certificates
        immediately prior to such Distribution Date;

       

      (ii)           
        the amount of the distribution allocable to principal on each applicable
        Class
        of Certificates;

       

      (iii)           the
        aggregate amount of interest accrued at the related Pass-Through Rate with
        respect to each Class during the related Interest Accrual Period;

       

      (iv)           the
        Net Interest Shortfall and any other adjustments to interest at the related
        Pass-Through Rate necessary to account for any difference between interest
        accrued and aggregate interest distributed with respect to each Class of
        Certificates;

       

      (v)           
        the amount of the distribution allocable to interest on each Class of
        Certificates;

       

      (vi)           the
        Pass-Through Rates for each Class of Certificates with respect to such
        Distribution Date;

       

      (vii)          the
        Current Principal Amount (or Notional Amount) of each Class of Certificates
        after such Distribution Date;

       

      (viii)         the
        amount of any Monthly Advances, Compensating Interest Payments and outstanding
        unreimbursed advances by the Master Servicer or the Servicers included in
        such
        distribution separately stated for each Loan Group;

       

      (ix)           the
        aggregate amount of any Realized Losses (listed separately for each category
        of
        Realized Loss and for each Loan Group) during the preceding calendar month
        and
        cumulatively since the Cut-off Date and the amount and source (separately
        identified) of any distribution in respect thereof included in such
        distribution;

       

      (x)           with
        respect to each Mortgage Loan which incurred a Realized Loss during the
        preceding calendar month, (i) the loan number, (ii) the Scheduled Principal
        Balance of such Mortgage Loan as of the Cut-off Date, (ii) the Scheduled
        Principal Balance of such Mortgage Loan as of the beginning of the related
        Due
        Period, (iii) the Net Liquidation Proceeds with respect to such Mortgage
        Loan
        and (iv) the amount of the Realized Loss with respect to such Mortgage
        Loan;

       

      (xi)           with
        respect to each Loan Group, the amount of Scheduled Principal and Principal
        Prepayments, (including but separately identifying the principal amount of
        Principal Prepayments, Insurance Proceeds, the purchase price in connection
        with
        the purchase of Mortgage Loans, cash deposits in connection with substitutions
        of Mortgage Loans and Net Liquidation Proceeds) and the number and principal
        balance of Mortgage Loans purchased or substituted for during the relevant
        period and cumulatively since the Cut-off Date;

       

      (xii)           the
        number of Mortgage Loans (excluding REO Property) in each Loan Group remaining
        in the Trust Fund as of the end of the preceding calendar month;

       

      (xiii)         
        information for each Loan Group regarding any Mortgage Loan delinquencies
        as of
        the end of the previous calendar month, including the aggregate number and
        aggregate Outstanding Principal Balance of Mortgage Loans using the MBA method
        of calculation (a) Delinquent 30 to 59 days on a contractual basis, (b)
        Delinquent 60 to 89 days on a contractual basis, and (c) Delinquent 90 or
        more
        days on a contractual basis, in each case as of the close of business on
        the
        last Business Day of the immediately preceding month;

       

      (xiv)         
        for each Loan Group, the number of Mortgage Loans in the foreclosure process
        as
        of the end of the related Due Period and the aggregate Outstanding Principal
        Balance of such Mortgage Loans;

       

      (xv)           for
        each Loan Group, the number and aggregate Outstanding Principal Balance of
        all
        Mortgage Loans as to which the Mortgaged Property was REO Property as of
        the end
        of the preceding calendar month;

       

      (xvi)           the
        book value (the sum of (A) the Outstanding Principal Balance of the Mortgage
        Loan, (B) accrued interest through the date of foreclosure and (C) foreclosure
        expenses) of any REO Property; provided that, in the event that such information
        is not available to the Trustee on the Distribution Date, such information
        shall
        be furnished promptly after it becomes available;

       

      (xvii)          the
        amount of Realized Losses allocated to each Class of Certificates since the
        prior Distribution Date and in the aggregate for all prior Distribution Dates;
        and

       

      (xviii)         the
        Average Loss Severity Percentage for each Loan Group;

       

      (xix)            On
        each Distribution Date, beginning with the Distribution Date in September
        2007, the Trustee shall either forward by mail or otherwise make available
        to
        Standard & Poor’s, a statement setting forth (i) whether any exchanges of
        Exchangeable Certificates or Exchanged Certificates have taken place since
        the
        preceding Distribution Date, (ii) the Exchanged Certificates or Exchangeable
        Certificates received by the Certificateholder as a result of each such exchange
        that took place since the preceding Distribution Date, and (iii) a fraction,
        expressed as a percentage, the numerator of which is the
        aggregate Current Principal Amount of all Certificates of any Class of
        Certificates that were exchanged since the preceding Distribution Date, and
        the
        denominator of which is the initial Current Principal Amount of such Class
        of Certificates.

       

      (xx)            
        the then applicable Group I and Group I Senior Percentage, Senior Prepayment
        Percentage, Subordinate Percentage and Subordinate Prepayment
        Percentage.

       

      The
        information set forth above shall be calculated or reported, as the case
        may be,
        by the Trustee, based solely on, and to the extent of, information provided
        to
        the Trustee by the Master Servicer. The Trustee may conclusively rely on
        such
        information and shall not be required to confirm, verify or recalculate any
        such
        information.

       

      The
        Trustee may make available each month, to any interested party, the Certificates
        Distribution Report to Holders of the Certificates via the Trustee’s website
        initially located at “www.usbank.com/abs.” Assistance in using the website can
        be obtained by calling the Trustee’s customer service desk at (800) 934-6802.
        Parties that are unable to use the above distribution option are entitled
        to
        have a paper copy mailed to them via first class mail by calling the Trustee’s
        customer service desk and indicating such. The Trustee shall have the right
        to
        change the way such reports are distributed in order to make such distribution
        more convenient and/or more accessible to the parties, and the Trustee shall
        provide timely and adequate notification to all parties regarding any such
        change.

       

      (b)           By
        April 30 of each year beginning in 2008, the Trustee will furnish such report
        to
        each Holder of the Certificates of record at any time during the prior calendar
        year as to the aggregate of amounts reported pursuant to subclauses (a)(ii)
        and
        (a)(v) above with respect to the Certificates, plus information with respect
        to
        the amount of servicing compensation and such other customary information
        as the
        Trustee may determine to be necessary and/or to be required by the Internal
        Revenue Service or by a federal or state law or rules or regulations to enable
        such Holders to prepare their tax returns for such calendar year. Such
        obligations shall be deemed to have been satisfied to the extent that
        substantially comparable information shall be provided by the Trustee pursuant
        to the requirements of the Code.

       

      Section
        6.06                                Monthly
        Advances.

       

      The
        Master Servicer shall cause the
        related Servicer to remit any Advance required pursuant to the terms of the
        related Servicing Agreement. The related Servicer shall be obligated to make
        any
        such Advance only to the extent that such advance would not be a Nonrecoverable
        Advance. If the related Servicer shall have determined that it has made a
        Nonrecoverable Advance or that a proposed Advance or a lesser portion of
        such
        Advance would constitute a Nonrecoverable Advance, the related Servicer shall
        deliver (i) to the Trustee for the benefit of the Certificateholders funds
        constituting the remaining portion of such Advance, if applicable, and (ii)
        to
        the Master Servicer an Officer’s Certificate setting forth the basis for such
        determination. Subject to the Master Servicer’s recoverability determination, in
        the event that a Servicer fails to make a required Advance, the Master Servicer,
        as successor servicer, shall be required to remit the amount of such Advance
        to
        the Master Servicer Collection Account in accordance with Section 4.02(a)(ii)
        or
        to the Trustee for deposit into the Distribution Account in accordance with
        Section 4.04(b)(i). If the Master Servicer were required to make an Advance
        but
        failed to do so, the Trustee upon receiving notice or becoming aware of such
        failure, and pursuant to the applicable terms of this Agreement, shall appoint
        a
        Master Servicer who will make such required Advance, or the Trustee as successor
        master servicer shall be required to remit the amount of such required Advance
        to the Master Servicer Collection Account, unless the Trustee shall have
        determined that such Advance is a Nonrecoverable Advance.  If the
        Trustee cannot find a successor servicer to replace the Master Servicer as
        Servicer the Trustee shall become the successor servicer and shall be required
        to remit the amount of such required Advance to the Distribution Account,
        unless
        the Trustee shall have determined that such Advance is a Nonrecoverable
        Advance.

       

      Section
        6.07                                Compensating
        Interest Payments.

       

      The
        Master Servicer shall deliver to the Trustee for deposit in the Distribution
        Account not later than the related Distribution Account Deposit Date an amount
        equal to the sum of the aggregate amounts paid by the Servicers under the
        related Servicing Agreement with respect to subclauses (a) and (b) of the
        definition of Interest Shortfall with respect to the Mortgage Loans for the
        related Distribution Date.

       

      

       

      ARTICLE
        VII

      The
        Master Servicer

       

      Section
        7.01                                Liabilities
        of the Master Servicer.

       

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

       

      Section
        7.02                                Merger
        or Consolidation of the Master Servicer.

       

      (a)           The
        Master Servicer will keep in full force and effect its existence, rights
        and
        franchises as a corporation under the laws of the state of its incorporation,
        and will 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, the
        Certificates or any of the Mortgage Loans and to perform its duties under
        this
        Agreement.

       

      (b)           Any
        Person into which the Master Servicer may be merged or consolidated, or any
        corporation resulting from any merger 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 of the Master Servicer hereunder,
        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
        7.03                                Indemnification
        of the Trustee and the Master Servicer

       

      (a)           The
        Master Servicer agrees to indemnify the Indemnified Persons for, and to hold
        them harmless against, any loss, liability or expense (including reasonable
        legal fees and disbursements of counsel) incurred on their part that may
        be
        sustained in connection with, arising out of, or relating to, any claim or
        legal
        action (including any pending or threatened claim or legal action) relating
        to
        this Agreement with respect to the Mortgage Loans and the Certificates, the
        Servicing Agreements, the Assignment Agreement or the Certificates or the
        powers
        of attorney delivered by the Trustee hereunder (i) related to the Master
        Servicer’s failure to perform its duties in compliance with this Agreement
        (except as any such loss, liability or expense shall be otherwise reimbursable
        pursuant to this Agreement) or (ii) incurred by reason of the Master Servicer’s
        willful misfeasance, bad faith or gross negligence in the performance of
        duties
        hereunder or by reason of reckless disregard of obligations and duties
        hereunder, provided, in each case, that with respect to any such claim or
        legal
        action (or pending or threatened claim or legal action), the Indemnified
        Person
        shall have given the Master Servicer and the Depositor written notice thereof
        promptly after a Responsible Officer of the Indemnified Person shall have
        with
        respect to such claim or legal action and actual knowledge thereof. The Master
        Servicer’s failure to receive any such notice shall not affect the Indemnified
        Person’s right to indemnification hereunder, except to the extent the Master
        Servicer is materially prejudiced by such failure to give notice. This indemnity
        shall survive the resignation or removal of the Trustee or the Master Servicer
        and the termination of this Agreement.

       

      (b)           [Reserved].

       

      (c)           The
        Trust Fund will indemnify any Indemnified Person for any loss, liability
        or
        expense of any Indemnified Person not otherwise covered by the Master Servicer’s
        indemnification pursuant to Subsection (a) above.

       

      Section
        7.04                                Limitations
        on Liability of the Master Servicer and Others.

       

      Subject
        to the obligation of the Master Servicer to indemnify the Indemnified Persons
        pursuant to Section 7.03:

       

      (a)           Neither
        the Master Servicer nor any of the directors, officers, employees or agents
        of
        the Master Servicer shall be under any liability to the Indemnified Persons,
        the
        Depositor, the Trust Fund or the Holders of the Certificates for taking any
        action or for refraining from taking 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 breach
        of
        warranties or representations made herein or any liability which would otherwise
        be imposed by reason of such Person’s willful misfeasance, bad faith or gross
        negligence in the performance of duties or by reason of reckless disregard
        of
        obligations and duties hereunder.

       

      (b)           The
        Master Servicer and any director, officer, employee or agent of the Master
        Servicer may rely in good faith on any document of any kind prima facie properly
        executed and submitted by any Person respecting any matters arising
        hereunder.

       

      (c)           The
        Master Servicer, the Custodian and any director, officer, employee or agent
        of
        the Master Servicer or the Custodian, and the Trustee, to the extent it becomes
        a party to the EMC Servicing Agreement pursuant to Section 3.03, and any
        officer, director, employee or agent of the Trustee, shall be indemnified
        by the
        Trust and held harmless thereby against any loss, liability or expense
        (including reasonable legal fees and disbursements of counsel) incurred on
        their
        part that may be sustained in connection with, arising out of, or related
        to,
        any claim or legal action (including any pending or threatened claim or legal
        action) relating to this Agreement, the Certificates or any Servicing Agreement
        (except to the extent that the Master Servicer or the Trustee, as the case
        may
        be, is indemnified by the Servicer thereunder), other than (i) any such loss,
        liability or expense related to the Master Servicer’s failure to perform its
        duties in compliance with this Agreement (except as any such loss, liability
        or
        expense shall be otherwise reimbursable pursuant to this Agreement), or to
        the
        Custodian’s failure to perform its duties under the Custodial Agreement,
        respectively, or (ii) any such loss, liability or expense incurred by reason
        of
        the Master Servicer’s or the Custodian’s willful misfeasance, bad faith or gross
        negligence in the performance of duties hereunder or under the Custodial
        Agreement, as applicable, or by reason of reckless disregard of obligations
        and
        duties hereunder or under the Custodial Agreement, as applicable.

       

      (d)           The
        Master Servicer shall not be under any obligation to appear in, prosecute
        or
        defend any legal action that is not incidental to its duties under this
        Agreement and that in its opinion may involve it in any expense or liability;
        provided, however, the Master Servicer may in its discretion, with the consent
        of the Trustee (which consent shall not be unreasonably withheld), undertake
        any
        such action which it may deem necessary or desirable with respect to this
        Agreement and the rights and duties of the parties hereto and the interests
        of
        the Holders of the Certificates 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 Master Servicer shall be
        entitled to be reimbursed therefor out of the Master Servicer Collection
        Account
        as provided by Section 4.03. Nothing in this Subsection 7.04(d) shall affect
        the
        Master Servicer’s obligation to supervise, or to take such actions as are
        necessary to ensure, the servicing and administration of the Mortgage Loans
        pursuant to Section 3.01.

       

      (e)           In
        taking or recommending any course of action pursuant to this Agreement, unless
        specifically required to do so pursuant to this Agreement, the Master Servicer
        shall not be required to investigate or make recommendations concerning
        potential liabilities which the Trust might incur as a result of such course
        of
        action by reason of the condition of the Mortgaged Properties but shall give
        notice to the Trustee if it has notice of such potential
        liabilities.

       

      (f)           The
        Master Servicer shall not be liable for any acts or omissions of the related
        Servicers.

       

      (g)           The
        Master Servicer may perform any of its duties hereunder or exercise its rights
        hereunder either directly or through Affiliates, agents or
        attorneys.

       

      Section
        7.05                                Master
        Servicer Not to Resign.

       

      Except
        as
        provided in Section 7.07, the Master Servicer shall not resign from the
        obligations and duties hereby imposed on it except (i) with the prior consent
        of
        the Trustee (which consent shall not be unreasonably withheld or delayed)
        or
        (ii) upon a determination that any such duties hereunder are no longer
        permissible under applicable law and such impermissibility cannot be cured;
        provided, however, in the event that the Trustee resigns or is terminated
        or
        removed in accordance with the provisions hereof, the Master Servicer shall
        resign. Any such determination permitting the resignation of the Master Servicer
        shall be evidenced by an Opinion of Independent Counsel addressed to the
        Trustee
        to such effect delivered to the Trustee. No such resignation by the Master
        Servicer shall become effective until the Trustee or a successor to the Master
        Servicer reasonably satisfactory to the Trustee shall have assumed the
        responsibilities and obligations of the Master Servicer in accordance with
        Section 8.02 hereof. The Trustee shall notify the Rating Agencies of the
        resignation of the Master Servicer.

       

      Section
        7.06                                Successor
        Master Servicer.

       

      In
        connection with the appointment of any successor master servicer or the
        assumption of the duties of the Master Servicer, the Seller or the Trustee
        may
        make such arrangements for the compensation of such successor master servicer
        out of payments on the Mortgage Loans as the Seller or the Trustee and such
        successor master servicer shall agree. If the successor master servicer does
        not
        agree that such market value is a fair price, such successor master servicer
        shall obtain two quotations of market value from third parties actively engaged
        in the servicing of single-family mortgage loans.  Notwithstanding the
        foregoing, in no event shall the compensation of any Successor Master Servicer
        exceed that permitted the Master Servicer hereunder without the consent of
        all
        of the Certificateholders..

       

      Section
        7.07                                Sale
        and Assignment of Master Servicing.

       

      The
        Master Servicer may sell and assign its rights and delegate its duties and
        obligations in its entirety as Master Servicer under this Agreement; provided,
        however, that: (i) the purchaser or transferee accepting such assignment
        and
        delegation (a) shall be a Person which shall be qualified to service mortgage
        loans for Fannie Mae or Freddie Mac; (b) shall have a net worth of not less
        than
        $10,000,000 (unless otherwise approved by each Rating Agency pursuant to
        clause
        (ii) below); (c) shall be reasonably satisfactory to the Trustee (as evidenced
        in a writing signed by the Trustee); and (d) shall execute and deliver to
        the
        Trustee an agreement, in form and substance reasonably satisfactory to the
        Trustee, which contains an assumption by such Person of the due and punctual
        performance and observance of each covenant and condition to be performed
        or
        observed by it as master servicer under this Agreement, any custodial agreement
        from and after the effective date of such agreement; (ii) each Rating Agency
        shall be given prior written notice of the identity of the proposed successor
        to
        the Master Servicer and each Rating Agency’s rating of the Certificates in
        effect immediately prior to such assignment, sale and delegation will not
        be
        downgraded, qualified or withdrawn as a result of such assignment, sale and
        delegation, as evidenced by a letter to such effect delivered to the Master
        Servicer and the Trustee; and (iii) the Master Servicer assigning and selling
        the master servicing shall deliver to the Trustee an Officer’s Certificate and
        an Opinion of Independent Counsel addressed to the Trustee, each stating
        that
        all conditions precedent to such action under this Agreement have been completed
        and such action is permitted by and complies with the terms of this Agreement.
        No such assignment or delegation shall affect any liability of the Master
        Servicer arising prior to the effective date thereof.

       

      EMC,
        as
        servicer, may sell and assign its rights and delegate its duties and obligations
        in its entirety as a Servicer pursuant to and in accordance with the terms
        of
        the related Servicing Agreement.

       

      

       

      ARTICLE
        VIII

      Default

       

      Section
        8.01                                Events
        of Default.

       

      “Event
        of
        Default,” wherever used herein, means any one of the following events (whatever
        the reason for such Event of Default and whether it shall be voluntary or
        involuntary or be effected by operation of law or pursuant to any judgment,
        decree or order of any court or any order, rule or regulation of any
        administrative or governmental body) and only with respect to the defaulting
        Master Servicer:

       

      (i)  Any
        failure by the Master Servicer to remit to the Trustee any amounts received
        or
        collected by the Master Servicer in respect of the Mortgage Loans and required
        to be remitted by it (other than any Advance) pursuant to this Agreement,
        which
        failure shall continue unremedied for one Business Day after the date on
        which
        written notice of such failure shall have been given to the Master Servicer
        by
        the Trustee or the Depositor, or to the Trustee and the Master Servicer by
        the
        Holders of Certificates evidencing not less than 25% of the Voting Rights
        evidenced by the Certificates; or

       

       (ii)           any
        failure by the Master Servicer to observe or perform in any material respect
        any
        other of the covenants or agreements on the part of the Master Servicer
        contained in this Agreement or any breach of a representation or warranty
        by the
        Master Servicer, which failure or breach shall continue unremedied for a
        period
        of 60 days after the date on which written notice of such failure, properly
        requiring the same to be remedied, shall have been given to the Master Servicer
        by the Trustee or to the Master Servicer and the Trustee by the Holders of
        Certificates evidencing Fractional Undivided Interests aggregating not less
        than
        25% of the Trust Fund; or

       

      (iii)           There
        is entered against the Master Servicer a decree or order by a court or agency
        or
        supervisory authority having jurisdiction in the premises for the appointment
        of
        a conservator, receiver or liquidator in any insolvency, readjustment of
        debt,
        marshaling of assets and liabilities or similar proceedings, or for the winding
        up or liquidation of its affairs, and the continuance of any such decree
        or
        order is unstayed and in effect for a period of 60 consecutive days, or an
        involuntary case is commenced against the Master Servicer under any applicable
        insolvency or reorganization statute and the petition is not dismissed within
        60
        days after the commencement of the case; or

       

      (iv)           The
        Master Servicer consents to the appointment of a conservator or receiver
        or
        liquidator in any insolvency, readjustment of debt, marshaling of assets
        and
        liabilities or similar proceedings of or relating to the Master Servicer
        or
        substantially all of its property; or the Master Servicer admits in writing its
        inability to pay its debts generally as they become due, files a petition
        to
        take advantage of any applicable insolvency or reorganization statute, makes
        an
        assignment for the benefit of its creditors, or voluntarily suspends payment
        of
        its obligations;

       

      (v)           The
        Master Servicer assigns or delegates its duties or rights under this Agreement
        in contravention of the provisions permitting such assignment or delegation
        under Sections 7.05 or 7.07; or

       

      (vi)           The
        Master Servicer fails to deposit or cause to be deposited, in the Distribution
        Account any Monthly Advance required to be made by the Master Servicer (other
        than a Nonrecoverable Advance) by the close of business on the Business Day
        prior to the related Distribution Date.

       

      In
        each
        and every such case, so long as such Event of Default with respect to the
        Master
        Servicer shall not have been remedied, either the Trustee or the Holders
        of
        Certificates evidencing Fractional Undivided Interests aggregating not less
        than
        51% of the principal of the Trust Fund, by notice in writing to the Master
        Servicer (and to the Trustee if given by such Holders of the Certificates),
        with
        a copy to the Rating Agencies, may terminate all of the rights and obligations
        (but not the liabilities) of the Master Servicer under this Agreement and
        in and
        to the Mortgage Loans and/or the REO Property serviced by the Master Servicer
        and the proceeds thereof. Upon the receipt by the Master Servicer of the
        written
        notice, all authority and power of the Master Servicer under this Agreement,
        whether with respect to the Certificates, the Mortgage Loans, REO Property
        or
        under any other related agreements (but only to the extent that such other
        agreements relate to the Mortgage Loans or related REO Property) shall, subject
        to Section 8.02, automatically and without further action pass to and be
        vested
        in the Trustee pursuant to this Section 8.01; and, without limitation, the
        Trustee is hereby authorized and empowered to execute and deliver, on behalf
        of
        the Master 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. The Master Servicer agrees to cooperate
        with
        the Trustee in effecting the termination of the Master Servicer’s rights and
        obligations hereunder, including, without limitation, the transfer to the
        Trustee of (i) the property and amounts which are then or should be part
        of the
        Trust or which thereafter become part of the Trust; and (ii) originals or
        copies
        of all documents of the Master Servicer reasonably requested by the Trustee
        to
        enable it to assume the Master Servicer’s duties thereunder. All reasonable and
        properly documented costs and expenses incurred by the Trustee in connection
        with such transfer shall be reimbursed to the Trustee by the Master Servicer
        within 30 days of request therefor or, if the Master Servicer fails to pay
        any
        such amount, reimbursed from amounts on deposit in the Distribution Amount.
        In
        addition to any other amounts which are then, or, notwithstanding the
        termination of its activities under this Agreement, may become payable to
        the
        Master Servicer under this Agreement, the Master Servicer shall be entitled
        to
        receive, out of any amount received on account of a Mortgage Loan or related
        REO
        Property, that portion of such payments which it would have received as
        reimbursement under this Agreement if notice of termination had not been
        given.
        The termination of the rights and obligations of the Master Servicer shall
        not
        affect any obligations incurred by the Master Servicer prior to such
        termination.

       

      Notwithstanding
        the foregoing, if an Event of Default described in clause (vi) of this Section
        8.01 shall occur, the Trustee upon receiving notice or becoming aware of
        such
        failure, and pursuant to the applicable terms of this Agreement, shall, by
        notice in writing to the Master Servicer, which may be delivered by telecopy,
        immediately terminate all of the rights and obligations of the Master Servicer
        thereafter arising under this Agreement, but without prejudice to any rights
        it
        may have as a Holder of the Certificates or to reimbursement of Monthly Advances
        and other advances of its own funds, and the Trustee shall act as provided
        in
        Section 8.02 to carry out the duties of the Master Servicer, including the
        obligation to make any Monthly Advance  the nonpayment of which was an
        Event of Default described in clause (vi) of this Section 8.01. Any such
        action
        taken by the Trustee must be prior to the distribution on the relevant
        Distribution Date.

       

      Section
        8.02                                Trustee
        to Act; Appointment of Successor.

       

      (a)           Upon
        the receipt by the Master Servicer of a notice of termination pursuant to
        Section 8.01 or an Opinion of Independent Counsel pursuant to Section 7.05
        to
        the effect that the Master Servicer is legally unable to act or to delegate
        its
        duties to a Person which is legally able to act, the Trustee shall automatically
        become the successor in all respects to the Master Servicer in its capacity
        under this Agreement and the transactions set forth or provided for herein
        and
        shall thereafter have all the rights and powers of, and be subject to all
        the
        responsibilities, duties, liabilities and limitations on liabilities relating
        thereto placed on the Master Servicer by the terms and provisions hereof
        (including the requirement to make Monthly Advances pursuant to Section 6.06);
        provided, however, that the Trustee shall have no obligation whatsoever with
        respect to any liability (other than advances deemed recoverable and not
        previously made) incurred by the Master Servicer at or prior to the time
        of
        termination. As compensation therefor, the Trustee shall be entitled to
        compensation which the Master Servicer would have been entitled to retain
        if the
        Master Servicer had continued to act hereunder, except for those amounts
        due the
        Master Servicer as reimbursement permitted under this Agreement for advances
        previously made or expenses previously incurred. Notwithstanding the above,
        the
        Trustee may, if it shall be unwilling so to act, or shall, if it is legally
        unable so to act, appoint or petition a court of competent jurisdiction to
        appoint, any established housing and home finance institution which is a
        Fannie
        Mae- or Freddie Mac-approved servicer, and with respect to a successor to
        the
        Master Servicer only, having a net worth of not less than $10,000,000, as
        the
        successor to the Master Servicer hereunder in the assumption of all or any
        part
        of the responsibilities, duties or liabilities of the Master Servicer hereunder;
        provided, that the Trustee shall obtain a letter from each Rating Agency
        that
        the ratings, if any, on each of the Certificates will not be lowered as a
        result
        of the selection of the successor to the Master Servicer. Pending appointment
        of
        a successor to the Master Servicer hereunder, the Trustee shall act in such
        capacity as hereinabove provided. In connection with such appointment and
        assumption, the Trustee may make such arrangements for the compensation of
        such
        successor out of payments on the Mortgage Loans as it and such successor
        shall
        agree; provided, however, that the provisions of Section 7.06 shall apply,
        the
        compensation shall not be in excess of that which the Master Servicer would
        have
        been entitled to if the Master Servicer had continued to act hereunder, and
        that
        such successor shall undertake and assume the obligations of the Master Servicer
        to pay compensation to any third Person acting as an agent or independent
        contractor in the performance of master servicing responsibilities hereunder.
        The Trustee and such successor shall take such action, consistent with this
        Agreement, as shall be necessary to effectuate any such succession.

       

      (b)           If
        the Trustee shall succeed to any duties of the Master Servicer respecting
        the
        Mortgage Loans as provided herein, it shall do so in a separate capacity
        and not
        in its capacity as Trustee and, accordingly, the provisions of Article IX
        shall
        be inapplicable to the Trustee in its duties as the successor to the Master
        Servicer in the servicing of the Mortgage Loans (although such provisions
        shall
        continue to apply to the Trustee in its capacity as Trustee); the provisions
        of
        Article VII, however, shall apply to it in its capacity as successor master
        servicer.

       

      Section
        8.03                                Notification
        to Certificateholders.

       

      Upon
        any
        termination or appointment of a successor to the Master Servicer, the Trustee
        shall give prompt written notice thereof to Holders of the Certificates at
        their
        respective addresses appearing in the Certificate Register and to the Rating
        Agencies.

       

      Section
        8.04                                Waiver
        of Defaults.

       

      The
        Trustee shall transmit by mail to all Holders of the Certificates, within
        60
        days after the occurrence of any Event of Default actually known to a
        Responsible Officer of the Trustee, unless such Event of Default shall have
        been
        cured, notice of each such Event of Default. The Holders of Certificates
        evidencing Fractional Undivided Interests aggregating not less than 51% of
        the
        Trust Fund may, on behalf of all Holders of the Certificates, waive any default
        by the Master Servicer in the performance of its obligations hereunder and
        the
        consequences thereof, except a default in the making of or the causing to
        be
        made any required distribution on the Certificates, which default may only
        be
        waived by Holders of Certificates evidencing Fractional Undivided Interests
        aggregating 100% of the Trust Fund. Upon any such waiver of a past default,
        such
        default shall be deemed to cease to exist, and any Event of Default arising
        therefrom shall be deemed to have been timely 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.
        The Trustee shall give notice of any such waiver to the Rating
        Agencies.

       

      Section
        8.05                                List
        of Certificateholders.

       

      Upon
        written request of three or more Holders of Certificates of record, for purposes
        of communicating with other Holders of Certificates with respect to their
        rights
        under this Agreement, the Trustee will afford such Certificateholders access
        during business hours to the most recent list of related Certificateholders
        held
        by the Trustee.

       

      

       

      ARTICLE
        IX

      Concerning
        the Trustee 

       

      Section
        9.01                                Duties
        of Trustee.

       

      (a)           The
        Trustee, prior to the occurrence of an Event of Default and after the curing
        or
        waiver of all Events of Default which may have occurred undertakes to perform
        such duties and only such duties as are specifically set forth in this Agreement
        as duties of the Trustee. If an Event of Default has occurred and has not
        been
        cured or waived, the Trustee shall exercise such of the rights and powers
        vested
        in it by this Agreement use the same degree of care and skill in their exercise,
        as a prudent person would exercise under the circumstances in the conduct
        of his
        own affairs.

       

      (b)           Upon
        receipt of all resolutions, certificates, statements, opinions, reports,
        documents, orders or other instruments which are specifically required to
        be
        furnished to the Trustee pursuant to any provision of this Agreement, the
        Trustee shall examine them to determine whether they are on their face in
        the
        form required by this Agreement; provided, however, that the Trustee shall
        not
        be responsible for the accuracy or content of any resolution, certificate,
        statement, opinion, report, document, order or other instrument furnished
        hereunder; provided, further, that the Trustee shall not be responsible for
        the
        accuracy or verification of any calculation provided to it pursuant to this
        Agreement.

       

      (c)           On
        each Distribution Date, the Trustee shall make monthly distributions and
        the
        final distribution to the related Certificateholders from funds in the
        Distribution Account, as provided in Sections 6.01 and 10.01 herein based
        solely
        on the report of the Trustee.

       

      (d)           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; provided, however, that:

       

      (i)           Prior
        to the occurrence of an Event of Default, and after the curing or waiver
        of all
        such Events of Default which may have occurred, the duties and obligations
        of
        the Trustee shall be determined solely by the express provisions of this
        Agreement, the Trustee shall not be liable except for the performance of
        their
        respective duties and obligations as are specifically set forth in this
        Agreement, no implied covenants or obligations shall be read into this Agreement
        against the Trustee and, in the absence of bad faith on the part of the Trustee,
        the Trustee may conclusively rely, as to the truth of the statements and
        the
        correctness of the opinions expressed therein, upon any certificates or opinions
        furnished to the Trustee, and conforming to the requirements of this
        Agreement;

       

      (ii)           The
        Trustee shall not be liable in its individual capacity for an error of judgment
        made in good faith by a Responsible Officer or Responsible Officers of the
        Trustee unless it shall be proved that the Trustee was negligent in ascertaining
        the pertinent facts;

       

      (iii)           The
        Trustee shall not be liable with respect to any action taken, suffered or
        omitted to be taken by it in good faith in accordance with the directions
        of the
        Holders of Certificates evidencing Fractional Undivided Interests aggregating
        not less than 25% of the portion of the Trust Fund related to such Certificates,
        if such action or non-action relates to the time, method and place of conducting
        any proceeding for any remedy available to the Trustee, or exercising any
        trust
        or other power conferred upon the Trustee under this Agreement;

       

      (iv)           The
        Trustee shall not be required to take notice or be deemed to have notice
        or
        knowledge of any default or Event of Default unless a Responsible Officer
        of the
        Trustee’s Corporate Trust Office shall have actual knowledge thereof. In the
        absence of such notice, the Trustee may conclusively assume there is no such
        default or Event of Default;

       

      (v)           The
        Trustee shall not in any way be liable by reason of any insufficiency in
        any
        Account held by or in the name of Trustee unless it is determined by a court
        of
        competent jurisdiction that the Trustee’s gross negligence or willful misconduct
        was the primary cause of such insufficiency (except to the extent that the
        Trustee is obligor and has defaulted thereon);

       

      (vi)           Anything
        in this Agreement to the contrary notwithstanding, in no event shall the
        Trustee
        be liable for special, indirect or consequential loss or damage of any kind
        whatsoever (including but not limited to lost profits), even if the Trustee
        has
        been advised of the likelihood of such loss or damage and regardless of the
        form
        of action;

       

      (vii)           None
        of the Depositor or the Trustee shall be responsible for the acts or omissions
        of the other, it being understood that this Agreement shall not be construed
        to
        render them partners, joint venturers or agents of one another and

       

      (viii)          The
        Trustee shall not be required to expend or risk its own funds or otherwise
        incur
        financial liability in the performance of any of its duties hereunder, or
        in the
        exercise of any of its rights or powers, if there is reasonable ground for
        believing that the repayment of such funds or adequate indemnity against
        such
        risk or liability is not reasonably assured to it, and none of the provisions
        contained in this Agreement shall in any event require the Trustee to perform,
        or be responsible for the manner of performance of, any of the obligations
        of
        the Master Servicer under the Servicing Agreements, except during such time,
        if
        any, as the Trustee shall be the successor to, and be vested with the rights,
        duties, powers and privileges of, the Master Servicer in accordance with
        the
        terms of this Agreement.

       

      (e)           All
        funds received by the Master Servicer and the Trustee and required to be
        deposited in the Master Servicer Collection Account pursuant to this Agreement
        will be promptly so deposited by the Master Servicer or the Trustee, as
        applicable.

       

      (f)           Except
        for those actions that the Trustee is required to take hereunder, the Trustee
        shall not have any obligation or liability to take any action or to refrain
        from
        taking any action hereunder in the absence of written direction as provided
        hereunder.

       

      Section
        9.02                                Certain
        Matters Affecting the Trustee.

       

      Except
        as
        otherwise provided in Section 9.01:

       

      (i)           The
        Trustee may rely and shall be protected in acting or refraining from acting
        in
        reliance on any resolution, certificate of the Depositor, the Master Servicer
        or
        a Servicer, 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;

       

      (ii)           The
        Trustee may consult with counsel and any advice of such counsel or any Opinion
        of Counsel shall be full and complete authorization and protection with respect
        to any action taken or suffered or omitted by it hereunder in good faith
        and in
        accordance with such advice or Opinion of Counsel;

       

      (iii)           The
        Trustee shall not be under any obligation to exercise any of the trusts or
        powers vested in it by this Agreement, other than its obligation to give
        notices
        pursuant to this Agreement, or to institute, conduct or defend any litigation
        hereunder or in relation hereto at the request, order or direction of any
        of the
        Certificateholders pursuant to the provisions of this Agreement, unless such
        Certificateholders shall have offered to the Trustee reasonable security
        or
        indemnity against the costs, expenses and liabilities which may be incurred
        therein or thereby. Nothing contained herein shall, however, relieve the
        Trustee
        of the obligation, upon the occurrence of an Event of Default of which a
        Responsible Officer of the Trustee has actual knowledge (which has not been
        cured or waived), to exercise such of the rights and powers vested in it
        by this
        Agreement, and to use the same degree of care and skill in their exercise,
        as a
        prudent person would exercise under the circumstances in the conduct of his
        own
        affairs;

       

      (iv)           Prior
        to the occurrence of an Event of Default hereunder and after the curing or
        waiver of all Events of Default which may have occurred, the Trustee shall
        not
        be liable for any action taken, suffered or omitted by it in good faith and
        believed by it to be authorized or within the discretion or rights or powers
        conferred upon it by this Agreement;

       

      (v)           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 Holders of Certificates evidencing
        Fractional Undivided Interests aggregating not less than 25% of the portion
        of
        the Trust Fund related to such Certificates, and provided that the payment
        within a reasonable time to the Trustee of the costs, expenses or liabilities
        likely to be incurred by it in the making of such investigation is, in the
        opinion of the Trustee reasonably assured to the Trustee by the security
        afforded to it by the terms of this Agreement. The Trustee may require
        reasonable indemnity against such expense or liability as a condition to
        taking
        any such action. The reasonable expense of every such examination shall be
        paid
        by the related Certificateholders requesting the investigation;

       

      (vi)           The
        Trustee may execute any of the trusts or powers hereunder or perform any
        duties
        hereunder either directly or through Affiliates, agents or attorneys; provided,
        however, that the Trustee may not appoint any agent to perform its custodial
        functions with respect to the Mortgage Files or paying agent functions under
        this Agreement without the express written consent of the Master Servicer,
        which
        consent will not be unreasonably withheld. The Trustee shall not be liable
        or
        responsible for the misconduct or negligence of any of the Trustee’s agents or
        attorneys or a custodian or paying agent appointed hereunder by the Trustee
        with
        due care and, when required, with the consent of the Master
        Servicer;

       

      (vii)           Should
        the Trustee deem the nature of any action required on its part, to be unclear,
        the Trustee may require prior to such action that it be provided by the
        Depositor with reasonable further instructions;

       

      (viii)        
        The right of the Trustee to perform any discretionary act enumerated in this
        Agreement shall not be construed as a duty, and the Trustee shall not be
        accountable for other than its negligence or willful misconduct in the
        performance of any such act;

       

      (ix)           
        The Trustee shall not be required to give any bond or surety with respect
        to the
        execution of the trust created hereby or the powers granted hereunder, except
        as
        provided in Section 9.07; and

       

      (x)           
        The Trustee shall not have any duty to conduct any affirmative investigation
        as
        to the occurrence of any condition requiring the repurchase of any Mortgage
        Loan
        by the Seller pursuant to this Agreement or the Mortgage Loan Purchase
        Agreement, as applicable, or the eligibility of any Mortgage Loan for purposes
        of this Agreement.

       

      Section
        9.03                                Trustee
        Not Liable for Certificates or Mortgage Loans.

       

      The
        recitals contained herein and in the Certificates (other than the signature
        and
        countersignature of the Trustee on such Certificates) shall be taken as the
        statements of the Depositor, and neither the Trustee, nor the Custodian on
        its
        behalf, shall have any responsibility for their correctness. The Trustee
        does
        not make any representation as to the validity or sufficiency of the
        Certificates (other than the signature and countersignature of the Trustee
        on
        the such Certificates) or of any Mortgage Loan; provided, however, that the
        foregoing shall not relieve the Trustee, or the Custodian on its behalf,
        of the
        obligation to review the Mortgage Files pursuant to Sections 2.02 and 2.04.
        The
        Trustee’s signature and countersignature (or countersignature of its agent) on
        the Certificates shall be solely in its capacity as Trustee and shall not
        constitute the Certificates an obligation of the Trustee in any other capacity.
        The Trustee shall not be accountable for the use or application by the Depositor
        of any of the Certificates or of the proceeds of such Certificates, or for
        the
        use or application of any funds paid to the Depositor with respect to the
        Mortgage Loans. The Trustee shall not be responsible for the legality or
        validity of this Agreement or any document or instrument relating to this
        Agreement, the validity of the execution of this Agreement or of any supplement
        hereto or instrument of further assurance, or the validity, priority, perfection
        or sufficiency of the security for the Certificates issued hereunder or intended
        to be issued hereunder. The Trustee shall not at any time have any
        responsibility or liability for or with respect to the legality, validity
        and
        enforceability of any Mortgage or any Mortgage Loan, or the perfection and
        priority of any Mortgage or the maintenance of any such perfection and priority,
        or for or with respect to the sufficiency of either Trust Fund, or any portion
        of either Trust Fund or its ability to make the payments to be distributed
        to
        Certificateholders, under this Agreement. The Trustee shall not have any
        responsibility for filing any financing statement 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 or to record this
        Agreement.

       

      Section
        9.04                                Trustee
        May Own Certificates.

       

      The
        Trustee in its individual capacity or in any capacity other than as Trustee
        hereunder may become the owner or pledgee of any Certificates with the same
        rights it would have if it were not Trustee and may otherwise deal with the
        parties hereto.

       

      Section
        9.05                                Trustee’s
        Fees and Expenses.

       

      The
        Trustee will be entitled to recover, from the Distribution Account pursuant
        to
        Section 4.05, the Trustee Fee, all reasonable out-of-pocket expenses,
        disbursements and advances and the expenses of the Trustee in connection
        with
        any Event of Default, any breach of this Agreement or any claim or legal
        action
        (including any pending or threatened claim or legal action) or incurred or
        made
        by the Trustee in the administration of the trusts hereunder (including the
        reasonable compensation, expenses and disbursements of its counsel) except
        any
        such expense, disbursement or advance as may arise from its negligence or
        intentional misconduct or which is the responsibility of the Certificateholders.
        If funds in the Distribution Account  are insufficient therefor, the
        Trustee shall recover such expenses from the Depositor and the Depositor
        hereby
        agrees to pay such expenses, disbursements or advances upon demand. Such
        compensation and reimbursement obligation shall not be limited by any provision
        of law in regard to the compensation of a trustee of an express
        trust.

       

      Section
        9.06                                Eligibility
        Requirements for Trustee.

       

      The
        Trustee and any successor Trustee shall during the entire duration of this
        Agreement be a state bank or trust company or a national banking association
        organized and doing business under the laws of such state or the United States
        of America, authorized under such laws to exercise corporate trust powers,
        having a combined capital and surplus and undivided profits of at least
        $40,000,000 or, in the case of a successor Trustee, $50,000,000, subject
        to
        supervision or examination by federal or state authority and, in the case
        of the
        Trustee, rated “BBB” or higher by S&P or Fitch and “Baa2” or higher by
        Moody’s with respect to their long-term rating and rated “BBB” or higher by
        S&P or Fitch and “Baa2” or higher by Moody’s with respect to any outstanding
        long-term unsecured unsubordinated debt, and, in the case of a successor
        Trustee
        other than pursuant to Section 9.10, rated in one of the two highest long-term
        debt categories of, or otherwise acceptable to, each of the Rating Agencies.
        If
        the Trustee 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 9.06 the combined capital and surplus of
        such
        corporation shall be deemed to be its total equity capital (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
        the
        provisions of this Section 9.06, the Trustee shall resign immediately in
        the
        manner and with the effect specified in Section 9.08.

       

      The
        Trustee may not be the Seller, an originator of any of the Mortgage Loans,
        the
        Master Servicer, a Servicer, the Depositor or an affiliate of the Depositor
        unless the Trustee is in an institutional trust department of U.S. Bank National
        Association.

       

      Section
        9.07                                Insurance.

       

      The
        Trustee at its own expense, shall at all times maintain and keep in full
        force
        and effect: (i) fidelity insurance, (ii) theft of documents insurance and
        (iii)
        forgery insurance (which may be collectively satisfied by a “Financial
        Institution Bond” and/or a “Bankers’ Blanket Bond”). All such insurance shall be
        in amounts, with standard coverage and subject to deductibles, as are customary
        for insurance typically maintained by banks or their affiliates which act
        as
        custodians for investor-owned mortgage pools. A certificate of an officer
        of the
        Trustee as to the Trustee’s compliance with this Section 9.07 shall be furnished
        to any Certificateholder upon reasonable written request.

       

      Section
        9.08                                Resignation
        and Removal of the Trustee.

       

      (a)           The
        Trustee may at any time resign and be discharged from the Trust hereby created
        by giving written notice thereof to the Depositor, the Seller and the Master
        Servicer, with a copy to the Rating Agencies. Upon receiving such notice
        of
        resignation, the Depositor shall promptly appoint a successor trustee by
        written
        instrument, in triplicate, one copy of which instrument shall be delivered
        to
        each of the resigning trustee and the successor trustee. If no successor
        trustee
        shall have been so appointed and have accepted appointment within 30 days
        after
        the giving of such notice of resignation, the resigning Trustee may petition
        any
        court of competent jurisdiction for the appointment of a successor
        trustee.

       

      (b)           If
        at any time the Trustee shall cease to be eligible in accordance with the
        provisions of Section 9.06 and shall fail to resign after written request
        therefor by the Depositor or if at any time the Trustee shall become incapable
        of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of
        the
        Trustee, or of its property shall be appointed, or any public officer shall
        take
        charge or control of the Trustee, or of its property or affairs for the purpose
        of rehabilitation, conservation or liquidation, then the Depositor shall
        promptly remove the Trustee, and appoint a successor Trustee, by written
        instrument, in triplicate, one copy of which instrument shall be delivered
        to
        the Trustee, so removed, the successor Trustee.

       

      (c)           The
        Holders of Certificates evidencing Fractional Undivided Interests aggregating
        not less than 51% of the portion of the Trust Fund related to such Certificates,
        may at any time remove the Trustee and appoint a successor Trustee for the
        related Trust Fund by written instrument or instruments, in quadruplicate,
        signed by such Holders or their attorneys-in-fact duly authorized, one complete
        set of which instruments shall be delivered to the Depositor, and the Trustee
        so
        removed and the successor so appointed. In the event that the Trustee is
        removed
        by the Holders of Certificates in accordance with this Section 9.08(c), the
        Holders of such Certificates shall be responsible for paying any compensation
        payable to a successor Trustee, in excess of the amount paid to the predecessor
        Trustee.

       

      (d)           No
        resignation or removal of the Trustee and appointment of a successor Trustee
        pursuant to any of the provisions of this Section 9.08 shall become effective
        except upon appointment of and acceptance of such appointment by the successor
        Trustee as provided in Section 9.09.

       

      Section
        9.09                                Successor
        Trustee.

       

      (a)           Any
        successor Trustee appointed as provided in Section 9.08 shall execute,
        acknowledge and deliver to the Depositor and to its predecessor Trustee an
        instrument accepting such appointment hereunder. The resignation or removal
        of
        the predecessor Trustee shall then 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 predecessor Trustee
        shall after payment of its outstanding fees and expenses promptly deliver
        to the
        successor Trustee all assets and records of the Trust held by it hereunder,
        and
        the Depositor and the predecessor Trustee shall execute and deliver such
        instruments and do such other things as may reasonably be required for more
        fully and certainly vesting and confirming in the successor Trustee, all
        such
        rights, powers, duties and obligations.

       

      (b)           No
        successor Trustee shall accept appointment as provided in this Section 9.09
        unless at the time of such acceptance such successor Trustee shall be eligible
        under the provisions of Section 9.06.

       

      (c)           Upon
        acceptance of appointment by a successor trustee as provided in this Section
        9.09, the successor trustee shall mail notice of the succession of such trustee
        hereunder to all Certificateholders at their addresses as shown in the
        Certificate Register and to the Rating Agencies.  The Depositor shall
        cause such notice to be mailed at the expense of the Trust Fund.

       

      Section
        9.10                                Merger
        or Consolidation of Trustee.

       

      Any
        state
        bank or trust company or national banking association into which the Trustee
        may
        be merged or converted or with which it may be consolidated or any state
        bank or
        trust company or national banking association resulting from any merger,
        conversion or consolidation to which the Trustee shall be a party, or any
        state
        bank or trust company or national banking association succeeding to all or
        substantially all of the corporate trust business of the Trustee shall be
        the
        successor of the Trustee hereunder, provided such state bank or trust company
        or
        national banking association shall be eligible under the provisions of Section
        9.06. Such succession shall be valid without the execution or filing of any
        paper or any further act on the part of any of the parties hereto, anything
        herein to the contrary notwithstanding.

       

      Section
        9.11                                Appointment
        of Co-Trustee or Separate Trustee.

       

      (a)           Notwithstanding
        any other provisions hereof, at any time, for the purpose of meeting any
        legal
        requirements of any jurisdiction in which any part of the Trust or property
        constituting the same may at the time be located, the Depositor 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 and the
        Depositor to act as co-trustee or co-trustees, jointly with the Trustee,
        or
        separate trustee or separate trustees, of all or any part of the Trust, and
        to
        vest in such Person or Persons, in such capacity, such title to the Trust,
        or
        any part thereof, and, subject to the other provisions of this Section 9.11,
        such powers, duties, obligations, rights and trusts as the Depositor and
        the
        Trustee may consider necessary or desirable.

       

      (b)           If
        the Depositor shall not have joined in such appointment within 15 days after
        the
        receipt by it of a written request so to do, the Trustee shall have the power
        to
        make such appointment without the Depositor.

       

      (c)           No
        co-trustee or separate trustee hereunder shall be required to meet the terms
        of
        eligibility as a successor Trustee under Section 9.06 hereunder and no notice
        to
        Certificateholders of the appointment of co-trustee(s) or separate trustee(s)
        shall be required under Section 9.08 hereof.

       

      (d)           In
        the case of any appointment of a co-trustee or separate trustee pursuant
        to this
        Section 9.11, all rights, powers, duties and obligations conferred or imposed
        upon the Trustee and required to be conferred on such co-trustee shall be
        conferred or imposed upon and exercised or performed by the Trustee and such
        separate trustee or co-trustee jointly, except to the extent that under any
        law
        of any jurisdiction in which any particular act or acts are to be performed
        (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 Trust or any portion thereof in any such jurisdiction) shall
        be
        exercised and performed by such separate trustee or co-trustee at the direction
        of the Trustee.

       

      (e)           Any
        notice, request or other writing given to the Trustee shall be deemed to
        have
        been given to each of the then separate trustees and co-trustees, as effectively
        as if given to each of them. Every instrument appointing any separate trustee
        or
        co-trustee shall refer to this Agreement and the conditions of this Article
        IX.
        Each separate trustee and co-trustee, upon its acceptance of the trusts
        conferred, shall be vested with the estates or property specified in its
        instrument of appointment, either jointly with the Trustee or separately,
        as may
        be provided therein, subject to all the provisions of this Agreement,
        specifically including every provision of this Agreement relating to the
        conduct
        of, affecting the liability of, or affording protection to, the Trustee.
        Every
        such instrument shall be filed with the Trustee.

       

      (f)           To
        the extent not prohibited by law, any separate trustee or co-trustee may,
        at any
        time, request the Trustee, its agent or attorney-in-fact, with full power
        and
        authority, to do any lawful act under or with respect to 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.

       

      (g)           No
        trustee under this Agreement shall be personally liable by reason of any
        act or
        omission of another trustee under this Agreement. The Depositor and the Trustee
        acting jointly may at any time accept the resignation of or remove any separate
        trustee or co-trustee.

       

      Section
        9.12                                Federal
        Information Returns and Reports to Certificateholders; Trust
        Administration.

       

      (a)           For
        federal income tax purposes, the taxable year of each of REMIC I, REMIC II
        and
        REMIC III shall be a calendar year and the Trustee shall maintain or cause
        the
        maintenance of the books of each such REMIC on the accrual method of
        accounting.

       

      (b)           The
        Trustee shall prepare, sign and file or cause to be filed with the Internal
        Revenue Service federal tax information returns or elections required to
        be made
        hereunder with respect to each of REMIC I, REMIC II and REMIC III, the Trust
        Fund, if applicable, and the Certificates containing such information and
        at the
        times and in the manner as may be required by the Code or applicable Treasury
        regulations, and shall furnish to each Holder of Certificates at any time
        during
        the calendar year for which such returns or reports are made such statements
        or
        information at the times and in the manner as may be required thereby,
        including, without limitation, reports relating to interest, original issue
        discount and market discount or premium (using a constant prepayment assumption
        of 300% PSA as described in the prospectus supplement relating to the Offered
        Certificates). The Trustee shall apply for an Employee Identification Number
        from the Internal Revenue Service under Form SS-4 or any other acceptable
        method
        for all tax entities. In connection with the foregoing, the Trustee shall
        timely
        prepare, file and sign, Internal Revenue Service Form 8811, which shall provide
        the name and address of the person who can be contacted to obtain information
        required to be reported to the holders of regular interests in each of REMIC
        I,
        REMIC II and REMIC III (the “REMIC Reporting Agent”). The Trustee shall make
        elections to treat each of REMIC I, REMIC II and REMIC III as a REMIC (which
        elections shall apply to the taxable period ending December 31, 2007 and
        each
        calendar year thereafter) in such manner as the Code or applicable Treasury
        regulations may prescribe. The Trustee shall sign all tax information returns
        filed pursuant to this Section and any other returns as may be required by
        the
        Code. The Holder of the Class I-R-1 Certificate is hereby designated as the
“Tax
        Matters Person” within the meaning of Treasury Regulation Section 1.860F-4(d))
        for REMIC I, the Holder of the Class I-R-2 Certificate is hereby designated
        as
        the “Tax Matters Person” within the meaning of Treasury Regulation Section
        1.860F-4(d)) for REMIC III, and the Holder of the Class II-R Certificate
        is
        hereby designated as the “Tax Matters Person” within the meaning of Treasury
        Regulation Section 1.860F-4(d)) for REMIC II. The Trustee is hereby designated
        and appointed as the agent of each such Tax Matters Person. Any Holder of
        a
        Residual Certificate will by acceptance thereof appoint the Trustee as agent
        and
        attorney-in-fact for the purpose of acting as Tax Matters Person for the
        related
        REMIC I, REMIC II or REMIC III during such time as the Trustee does not own
        any
        such Residual Certificate. In the event that the Code or applicable Treasury
        regulations prohibit the Trustee from signing tax or information returns
        or
        other statements, or the Trustee from acting as agent for the Tax Matters
        Person, the Trustee shall take whatever action that in their sole good faith
        judgment is necessary for the proper filing of such information returns or
        for
        the provision of a Tax Matters Person, including designation of the Holder
        of a
        Residual Certificate to sign such returns or act as Tax Matters Person. Each
        Holder of a Residual Certificate shall be bound by this Section.

       

      (c)           The
        Trustee shall provide upon request and receipt of reasonable compensation
        such
        information as required in Section 860D(a)(6)(B) of the Code to the Internal
        Revenue Service, to any Person purporting to transfer a Residual Certificate
        to
        a Person other than a transferee permitted by Section 5.05(b), and to any
        regulated investment company, real estate investment trust, common trust
        fund,
        partnership, trust, estate, organization described in Section 1381 of the
        Code,
        or nominee holding an interest in a pass-through entity described in Section
        860E(e)(6) of the Code, any record holder of which is not a transferee permitted
        by Section 5.05(b) (or which is deemed by statute to be an entity with a
        disqualified member).

       

      (d)           The
        Trustee shall prepare, sign and file or cause to be filed any state income
        tax
        returns required under Applicable State Law with respect to each of REMIC
        I,
        REMIC II and REMIC III and the Trust Fund.

       

      (e)           Notwithstanding
        any other provision of this Agreement, the Trustee shall comply with all
        federal
        withholding requirements respecting payments to Certificateholders of interest,
        original issue discount or principal on the Certificates that the Trustee
        reasonably believes are applicable under the Code. The consent of
        Certificateholders shall not be required for such withholding. In the event
        the
        Trustee withholds any amount from payments of interest, original issue discount
        or principal or advances thereof to any Certificateholder pursuant to federal
        withholding requirements, the Trustee shall, together with its monthly report
        to
        such Certificateholders, indicate such amount withheld.

       

      (f)           The
        Trustee agrees to indemnify the Trust Fund and the Depositor for any taxes
        and
        costs including, without limitation, any reasonable attorneys fees imposed
        on or
        incurred by such Trust Fund, the Depositor or the Master Servicer, as a result
        of a breach of the Trustee’s covenants set forth in this Section 9.12; provided,
        however, such liability and obligation to indemnify in this paragraph shall
        not
        be joint and several, and the Trustee shall not be liable or be obligated
        to
        indemnify the Trust Fund for the failure by the other to perform any duty
        under
        this Agreement or the breach by the other of any covenant in this Agreement.
        In
        the event that any liable party hereto fails to honor its obligations under
        the
        preceding sentences, or taxes imposed on the Trust Fund are not otherwise
        paid,
        such taxes, to the extent attributable to Loan Group I or REMIC I or any
        other
        portion of the Trust Fund the ownership of which is evidenced by the Group
        I
        Certificates, shall be paid first with amounts otherwise to be distributed
        to
        the Class I-R-1 Certificates and I-R-2 Certificates, based on the REMIC or
        such
        related portion of the Trust Fund to which the tax relates, and second with
        amounts otherwise to be distributed to the Holders of the following other
        Certificates in the following order of priority: first, to the Class I-B-6
        Certificates, second, to the Class I-B-5 Certificates, third, to the Class
        I-B-4
        Certificates, fourth, to the Class I-B-3 Certificates, fifth, to the Class
        I-B-2
        Certificates, sixth, to the Class I-B-1 Certificates, and eighth, to the
        Group I
        Senior Certificates (on a pro rata basis based on the amounts to be
        distributed). In the event that any liable party hereto fails to honor its
        obligations under the preceding sentences, or taxes imposed on the Trust
        Fund
        are not otherwise paid, such taxes, to the extent attributable to Loan Group
        II
        or REMIC II or any other portion of the Trust Fund the ownership of which
        is
        evidenced by the Group II Certificates, shall be paid, first, with amounts
        otherwise to be distributed to the Class II-R Certificates and I-R-2
        Certificates, based on the REMIC or such related portion of the Trust Fund
        to
        which the tax relates, and second with amounts otherwise to be distributed
        to
        the Holders of the following other Certificates in the following order of
        priority: first, to the
        Class II-B-6 Certificates, second, to the Class II-B-5 Certificates, third,
        to
        the Class II-B-4 Certificates, fourth, to the Class II-B-3 Certificates,
        fifth,
        to the Class II-B-2 Certificates, sixth, to the Class II-B-1 Certificates,
        and
        eighth, to the Group II Senior Certificates (on a pro rata basis based on
        the
        amounts to be distributed).  Notwithstanding anything to the contrary
        contained herein, to the extent that such tax is payable by the Holder of
        any
        such Certificates, the Trustee is hereby authorized to retain on any
        Distribution Date, from the Holders of the related Class R Certificates (and,
        if
        necessary, from the Holders of the other relevant Certificates in the priority
        specified in the preceding sentence), funds otherwise distributable to such
        Holders in an amount sufficient to pay such tax. The Trustee
        shall include in its monthly statement
        amounts allocated to the relevant Certificates, taking into account the
        priorities described in the second preceding sentence. The Trustee shall
        promptly notify in writing the party liable for any such tax of the amount
        thereof and the due date for the payment thereof.

       

      

       

      ARTICLE
        X

      Termination

       

      Section
        10.01                                Termination
        Upon Repurchase by the Depositor or its Designee or Liquidation of the Mortgage
        Loans.

       

      (a)           Subject
        to Section 10.02, the respective obligations and responsibilities of the
        Depositor, the Trustee and the Master Servicer created hereby with respect
        to
        the Trust Fund (as it relates to one of the Loan Groups) and the related
        Certificates, other than the obligation of the Trustee to make payments to
        related Certificateholders as hereinafter set forth and the indemnification
        obligations under Section 7.03 hereof, shall terminate upon:

       

      (i)           the
        repurchase by or at the direction of the Depositor or its designee
        of  all of the Mortgage Loans in a Loan Group and all related REO
        Property remaining in a Loan Group at a price (in each case, the “Termination
        Purchase Price”) equal to the sum of (a) 100% of the Outstanding Principal
        Balance of each such Mortgage Loan (other than a Mortgage Loan related to
        REO
        Property) as of the date of repurchase, net of the principal portion of any
        unreimbursed Monthly Advances made by the purchaser, together with interest
        at
        the applicable Mortgage Interest Rate accrued but unpaid to, but not including,
        the first day of the month of repurchase, (b) the appraised value of any
        related
        REO Property, less the good faith estimate of the Depositor of liquidation
        expenses to be incurred in connection with its disposal thereof (but not
        more
        than the Outstanding Principal Balance of the related Mortgage Loan, together
        with interest at the applicable Mortgage Interest Rate accrued on that balance
        but unpaid to, but not including, the first day of the month of repurchase),
        such appraisal to be calculated by an appraiser mutually agreed upon by the
        Depositor and the Trustee at the expense of the Depositor, (c) unreimbursed
        out-of pocket costs of the Master Servicer, including unreimbursed Servicing
        Advances and the principal portion of any unreimbursed Monthly Advances,
        made on
        the Mortgage Loans prior to the exercise of such repurchase right and (d)
        any
        unreimbursed costs and expenses of the Trustee payable pursuant to Section
        9.05
        and to the Custodian pursuant to the Custodial Agreement; or

       

      (ii)           the
        later of the making of the final payment or other liquidation, or any advance
        with respect thereto, of the last Mortgage Loan remaining in the Trust Fund
        or
        the disposition of all property acquired with respect to any Mortgage Loan;
        provided, however, that in the event that an advance has been made, but not
        yet
        recovered, at the time of such termination, the Person having made such advance
        shall be entitled to receive, notwithstanding such termination, any payments
        received subsequent thereto with respect to which such advance was made;
        or

       

      (iii)           the
        payment to the Certificateholders of all amounts required to be paid to them
        pursuant to this Agreement.

       

      (b)           In
        no event, however, shall the portion of the Trust Fund consisting of a Loan
        Group created hereby continue beyond the earlier of (i) the related “latest
        possible maturity date” specified in Section 5.01(d) or (ii) the expiration of
        21 years from the death of the last survivor of the descendants of Joseph
        P.
        Kennedy, the late Ambassador of the United States to the Court of St. James’s,
        living on the date of this Agreement.

       

      (c)           The
        right of the Depositor or its designee to repurchase all the assets of the
        Trust
        Fund relating to a  Loan Group as described in Subsection 10.01(a)(i)
        above shall be exercisable only if (i) the aggregate Scheduled Principal
        Balance
        of the related Mortgage Loans at the time of any such repurchase is less
        than
        10% of the Cut-Off Date Balance of the related Loan Group, or (ii) the
        Depositor, based upon an Opinion of Counsel addressed to the Depositor and
        the
        Trustee, has determined that the REMIC status of REMIC I, REMIC II or REMIC
        III
        has been lost or that a substantial risk exists that such REMIC status will
        be
        lost for the then-current taxable year. At any time thereafter, in the case
        of
        (i) or (ii) above, the Depositor may elect to terminate REMIC I, REMIC II
        or
        REMIC III at any time, and upon such election, the Depositor or its designee,
        shall repurchase all the assets of the Trust Fund described in Subsection
        10.01(a)(i) above.

       

      (d)           The
        Trustee shall give notice of any termination to the related Certificateholders,
        with a copy to the Master Servicer and the Rating Agencies, upon which the
        Certificateholders shall surrender their Certificates to the Trustee for
        payment
        of the final distribution and cancellation. Such notice shall be given by
        letter, mailed not earlier than the l5th day and not later than the 25th
        day of
        the month next preceding the month of such final distribution, and shall
        specify
        (i) the Distribution Date upon which final payment of the related Certificates
        will be made upon presentation and surrender of the related Certificates
        at the
        office of the Trustee therein designated, (ii) the amount of any such final
        payment and (iii) that the Record Date otherwise applicable to such Distribution
        Date is not applicable, payments being made only upon presentation and surrender
        of the related Certificates at the office of the Trustee therein
        specified.

       

      (e)           If
        the option of the Depositor to repurchase or cause the repurchase of all
        the
        assets in the Trust Fund relating to a Loan Group as described in Subsection
        10.01(a)(i) above, is exercised, the Depositor and/or its designee shall
        deliver
        to the Trustee for deposit in the Distribution Account, by the Business Day
        prior to the applicable Distribution Date, an amount equal to the related
        Termination Purchase Price. Upon presentation and surrender of the related
        Certificates by the related Certificateholders, the Trustee shall distribute
        to
        such Certificateholders an amount determined as follows: with respect to
        each
        related Certificate (other than the Interest Only Certificates), the outstanding
        Current Principal Amount, plus with respect to each such Certificate, one
        month’s interest thereon at the applicable Pass-Through Rate; and with respect
        to the Class R Certificates, the percentage interest evidenced thereby
        multiplied by the difference, if any, between the above described repurchase
        price and the aggregate amount to be distributed to the Holders of the
        Certificates (other than the Class R Certificates). If the proceeds with
        respect
        to the related Mortgage Loans are not sufficient to pay all of the related
        Senior Certificates in full, any such deficiency shall be allocated first,
        to
        the related Subordinate Certificates, in inverse order of their numerical
        designations and then to the related Senior Certificates on a pro rata basis.
        Upon deposit of the related Termination Purchase Price and following such
        final
        Distribution Date, the Trustee shall release promptly to the Depositor and/or
        its designee the related Mortgage Files for the remaining Mortgage Loans,
        and
        the related portions of the Accounts with respect thereto shall terminate,
        subject to the Trustee’s obligation to hold any amounts payable to the related
        Certificateholders in trust without interest pending final distributions
        pursuant to Subsection 10.01(g). Any other amounts remaining in the Accounts
        will belong to the Depositor.

       

      (f)           In
        the event that this Agreement is terminated by reason of the payment or
        liquidation of the related Mortgage Loans or the disposition of all property
        acquired with respect to such Mortgage Loans under Subsection 10.01(a)(ii)
        above, the Master Servicer shall deliver to the Trustee for deposit in the
        Distribution Account all distributable amounts remaining in the Master Servicer
        Collection Account.  Upon the presentation and surrender of the
        related Certificates, the Trustee shall distribute to the remaining related
        Certificateholders, pursuant to the written direction of the Trustee and
        in
        accordance with their respective interests, all related distributable amounts
        remaining in the Distribution Account. Upon deposit by the Master Servicer
        of
        such distributable amounts, and following such final Distribution Date, the
        Paying Agent shall release promptly to the Depositor or its designee the
        related
        Mortgage Files for the remaining Mortgage Loans, and the Distribution Account
        shall terminate with respect to a Loan Group, subject to the Paying Agent’s
        obligation to hold any amounts payable to the related Certificateholders
        in
        trust without interest pending final distributions pursuant to this Subsection
        10.01(f).

       

      (g)           If
        not all of the related Certificateholders shall surrender their Certificates
        for
        cancellation within six months after the time specified in the above-mentioned
        written notice, the Trustee shall give a second written notice to the related
        remaining Certificateholders to surrender their Certificates for cancellation
        and receive the final distribution with respect thereto. If within six months
        after the second notice, not all the related Certificates shall have been
        surrendered for cancellation, the Trustee may take appropriate steps, or
        appoint
        any agent to take appropriate steps, to contact the related remaining
        Certificateholders concerning surrender of their Certificates, and the cost
        thereof shall be paid out of the related funds and other related assets which
        remain subject to this Agreement.

       

      (h)           The
        ES Trust shall terminate automatically upon termination of the Trust
        Fund.

       

      Section
        10.02                                Additional
        Termination Requirements with respect to the Certificates.

       

      (a)           If
        the option of the Depositor to repurchase all of the Mortgage Loans and related
        properties in a Loan Group under Subsection 10.01(a)(i) above is exercised,
        the
        related portion of the Trust Fund shall be terminated in accordance with
        the
        following additional requirements, unless the Trustee has been furnished
        with an
        Opinion of Counsel addressed to the Trustee to the effect that the failure
        of
        the Trust to comply with the requirements of this Section 10.02 will not
        (i)
        result in the imposition of taxes on “prohibited transactions” as defined in
        Section 860F of the Code on REMIC I, REMIC II or REMIC III or (ii) cause
        REMIC
        I, REMIC II or REMIC III to fail to qualify as a REMIC at any time that any
        Certificates are outstanding:

       

       

      (i)           The
        Depositor shall establish a 90-day liquidation period and notify the Trustee
        thereof, and the Trustee shall in turn specify the first day of such period
        in a
        statement attached to the tax return for REMIC I, REMIC II or REMIC III,
        as
        applicable, pursuant
        to Treasury Regulation Section 1.860F-1. The Depositor shall satisfy all
        the
        requirements of a qualified liquidation under Section 860F of the Code and
        any
        regulations thereunder, as evidenced by an Opinion of Counsel addressed to
        the
        Trustee obtained at the expense of the Depositor;

       

       

      (ii)           During
        such 90-day liquidation period, and at or prior to the time of making the
        final
        payment on the related Certificates, the Trustee shall sell all of the assets
        of
        REMIC I or REMIC II for cash; and

       

       

      (iii)           At
        the time of the making of the final payment on the Certificates, the Trustee
        shall distribute or credit, or cause to be distributed or credited, to the
        Holders of the related Residual Certificates all cash on hand (other than
        cash
        retained to meet claims), and REMIC I or REMIC II, as applicable, shall
        terminate at that time.

       

      (b)           By
        their acceptance of the Certificates, the Holders thereof hereby authorize
        the
        adoption of a 90-day liquidation period and the adoption of a plan of complete
        liquidation for REMIC I, REMIC II or REMIC III, as applicable, which
        authorization shall be binding upon all successor
        Certificateholders.

       

      (c)           The
        Trustee as agent for REMIC I, REMIC II or REMIC III, as applicable, hereby
        agrees to adopt and sign such a plan of complete liquidation meeting the
        requirements for a qualified liquidation under Section 860F of the Code and
        any
        regulations thereunder upon the written request of the Depositor and the
        receipt
        of the Opinion of Counsel referred to in clause (a)(i) above and to take
        such
        other action in connection therewith as may be reasonably requested by the
        Depositor.

      

       

       

      ARTICLE
        XI

      Miscellaneous
        Provisions

       

      Section
        11.01                                Intent
        of Parties.

       

      The
        parties intend that each of REMIC I, REMIC II and REMIC III shall be treated
        as
        a REMIC for federal income tax purposes, and that the ES Trust will qualify
        as a
        grantor trust under Subpart E, part I of subchapter J of chapter 1 of the
        Code,
        of which the Holders of the Certificates (other than the Class I-R-1
        Certificates and the Class II-R Certificates) are owners, rather than a
        partnership, an association taxable as a corporation or a taxable mortgage
        pool,
        and that, to the fullest extent possible, beneficial ownership of a Certificate
        (other than the Class I-R-1 Certificates and the Class II-R Certificates)
        will
        be treated as direct beneficial ownership of each individual, uncertificated
        REMIC III Regular Interest or Class I-R-2 Interest held by the ES Trust for
        which such Certificate is designated as the Corresponding Certificate in
        Section
        5.01(c)(iii). The provisions of this Agreement should be construed in
        furtherance of this intent.

       

      Section
        11.02                                Amendment.

       

      (a)           This
        Agreement may be amended from time to time by the Depositor, the Master Servicer
        and the Trustee, but without notice to or the consent of any of the related
        Certificateholders, to cure any ambiguity, to correct or supplement any
        provisions herein or therein that may be defective or inconsistent with any
        other provisions herein or therein (including to give effect to the expectations
        of investors), to conform to the language in the prospectus supplement, to
        comply with any changes in the Code, to revise any provision to reflect the
        obligations of the parties to this Agreement as they relate to Regulation
        AB or
        to make any other provisions with respect to matters or questions arising
        under
        this Agreement which shall not be inconsistent with the provisions of this
        Agreement; provided, however, that such action shall not, as evidenced by
        an
        Opinion of Counsel, addressed to the Trustee, adversely affect in any material
        respect the interests of any related Certificateholder or cause REMIC I,
        REMIC
        II or REMIC III to fail to qualify as a REMIC or cause the ES Trust to fail
        to
        qualify as a grantor trust for federal income tax purposes as evidenced by
        an
        Opinion of Counsel addressed to the Trustee but not at the Trustee’s
        expense.

       

      (b)           With
        respect to the Certificates, this Agreement may also be amended from time
        to
        time by the Master Servicer, the Depositor and the Trustee, and the Holders
        of
        Certificates evidencing Fractional Undivided Interests aggregating not less
        than
        51% of the applicable Class or Classes, if such amendment affects only such
        Class or Classes, 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 related Certificateholders; provided, however,
        that
        no such amendment shall (i) reduce in any manner the amount of, or delay
        the
        timing of, payments received on Mortgage Loans which are required to be
        distributed on any Certificate without the consent of the Holder of such
        Certificate, (ii) reduce the aforesaid percentage of Certificates the Holders
        of
        which are required to consent to any such amendment, without the consent
        of the
        Holders of all Certificates then outstanding, or (iii) cause REMIC I, REMIC
        II
        or REMIC III to fail to qualify as a REMIC or cause the ES Trust to fail
        to
        qualify as a grantor trust for federal income tax purposes, as evidenced
        by an
        Opinion of Counsel addressed to the Trustee which shall be provided to the
        Trustee other than at the Trustee’s expense. Notwithstanding any other provision
        of this Agreement, for purposes of giving or withholding of consents pursuant
        to
        this first paragraph of Section 11.02(b), Certificates registered in the
        name of
        or held for the benefit of the Depositor, the Master Servicer, or the Trustee
        or
        any Affiliate thereof shall be entitled to vote their Fractional Undivided
        Interests with respect to matters affecting such Certificates.

       

      (c)           Promptly
        after the execution of any such amendment, the Trustee shall furnish a copy
        of
        such amendment or written notification of the substance of such amendment
        to
        each related Certificateholder, with a copy to the Rating Agencies.

       

      (d)           In
        the case of an amendment under Subsection 11.02(b) above, it shall not be
        necessary for the related Certificateholders to approve the particular form
        of
        such an amendment. Rather, it shall be sufficient if the related
        Certificateholders approve the substance of the amendment. The manner of
        obtaining such consents and of evidencing the authorization of the execution
        thereof by related Certificateholders shall be subject to such reasonable
        regulations as the Trustee may prescribe.

       

      (e)           Prior
        to the execution of any amendment to this Agreement, the Trustee shall be
        entitled to receive and rely upon an Opinion of Counsel addressed to the
        Trustee
        stating that the execution of such amendment is authorized or permitted by
        this
        Agreement. The Trustee may, but shall not be obligated to, enter into any
        such
        amendment which affects the Trustee’s own rights, duties or immunities under
        this Agreement.

       

      Section
        11.03                                Recordation
        of Agreement.

       

      To
        the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all the counties
        or
        other comparable jurisdictions in which any or all of the Mortgaged Properties
        are situated, and in any other appropriate public recording office or elsewhere.
        The Depositor shall effect such recordation, at the expense of the Trust
        upon
        the request in writing of a Certificateholder, but only if such direction
        is
        accompanied by an Opinion of Counsel (provided at the expense of the
        Certificateholder requesting recordation) to the effect that such recordation
        would materially and beneficially affect the interests of the Certificateholders
        or is required by law.

       

      Section
        11.04                                Limitation
        on Rights of Certificateholders.

       

      (a)           The
        death or incapacity of any Certificateholder shall not terminate this Agreement
        or the Trust, nor entitle such Certificateholder’s legal representatives or
        heirs to claim an accounting or to take any action or proceeding in any court
        for a partition or winding up of the Trust, nor otherwise affect the rights,
        obligations and liabilities of the parties hereto or any of them.

       

      (b)           Except
        as expressly provided in this Agreement, no Certificateholders shall have
        any
        right to vote or in any manner otherwise control the operation and management
        of
        the Trust, or the obligations of the parties hereto, nor shall anything herein
        set forth, or contained in the terms of the Certificates, be construed so
        as to
        establish the Certificateholders from time to time as partners or members
        of an
        association; nor shall any Certificateholders be under any liability to any
        third Person by reason of any action taken by the parties to this Agreement
        pursuant to any provision hereof.

       

      (c)           No
        Certificateholder shall have any right by virtue of any provision of this
        Agreement to institute any suit, action or proceeding in equity or at law
        upon,
        under or with respect to this Agreement against the Depositor, the Trustee,
        the
        Master Servicer or any successor to any such parties unless (i) such
        Certificateholder previously shall have given to the Trustee a written notice
        of
        a continuing default, as herein provided, (ii) the Holders of Certificates
        evidencing Fractional Undivided Interests aggregating not less than 51% of
        the
        Trust Fund shall have made written request upon the Trustee to institute
        such
        action, suit or proceeding in its own name as Trustee hereunder and shall
        have
        offered to the Trustee such reasonable indemnity as it may require against
        the
        costs and expenses and liabilities to be incurred therein or thereby, and
        (iii)
        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.

       

      (d)           No
        one or more Certificateholders shall have any right by virtue of any provision
        of this Agreement to affect the rights of any other Certificateholders or
        to
        obtain or seek to obtain priority or preference over any other such
        Certificateholder, or to enforce any right under this Agreement, except in
        the
        manner herein provided and for the equal, ratable and common benefit of all
        Certificateholders. For the protection and enforcement of the provisions
        of this
        Section 11.04, each and every Certificateholder and the Trustee shall be
        entitled to such relief as can be given either at law or in equity.

       

      Section
        11.05                                Acts
        of Certificateholders.

       

      (a)           Any
        request, demand, authorization, direction, notice, consent, waiver or other
        action provided by this Agreement to be given or taken by Certificateholders
        may
        be embodied in and evidenced by one or more instruments of substantially
        similar
        tenor signed by such Certificateholders in person or by an agent duly appointed
        in writing. Except as herein otherwise expressly provided, such action shall
        become effective when such instrument or instruments are delivered to the
        Trustee and, where it is expressly required, to the Depositor. Proof of
        execution of any such instrument or of a writing appointing any such agent
        shall
        be sufficient for any purpose of this Agreement and conclusive in favor of
        the
        Trustee and the Depositor, if made in the manner provided in this Section
        11.05.

       

      (b)           The
        fact and date of the execution by any Person of any such instrument or writing
        may be proved by the affidavit of a witness of such execution or by a
        certificate of a notary public or other officer authorized by law to take
        acknowledgments of deeds, certifying that the individual signing such instrument
        or writing acknowledged to him the execution thereof. Where such execution
        is by
        a signer acting in a capacity other than his or her individual capacity,
        such
        certificate or affidavit shall also constitute sufficient proof of his or
        her
        authority. The fact and date of the execution of any such instrument or writing,
        or the authority of the individual executing the same, may also be proved
        in any
        other manner which the Trustee deems sufficient.

       

      (c)           The
        ownership of Certificates (notwithstanding any notation of ownership or other
        writing on such Certificates, except an endorsement in accordance with Section
        5.02 made on a Certificate presented in accordance with Section 5.04) shall
        be
        proved by the Certificate Register, and neither the Trustee, the Depositor,
        the
        Master Servicer nor any successor to any such parties shall be affected by
        any
        notice to the contrary.

       

      (d)           Any
        request, demand, authorization, direction, notice, consent, waiver or other
        action of the holder of any Certificate shall bind every future holder of
        the
        same Certificate and the holder of every Certificate issued upon the
        registration of transfer or exchange thereof, if applicable, or in lieu thereof
        with respect to anything done, omitted or suffered to be done by the Trustee,
        the Depositor, the Master Servicer or any successor to any such party in
        reliance thereon, whether or not notation of such action is made upon such
        Certificates.

       

      (e)           In
        determining whether the Holders of the requisite percentage of Certificates
        evidencing Fractional Undivided Interests have given any request, demand,
        authorization, direction, notice, consent or waiver hereunder, Certificates
        owned by the Trustee, the Depositor, the Master Servicer or any Affiliate
        thereof shall be disregarded, except as otherwise provided in Section 11.02(b)
        and except that, in determining whether the Trustee shall be protected in
        relying upon any such request, demand, authorization, direction, notice,
        consent
        or waiver, only Certificates which a Responsible Officer of the Trustee actually
        knows to be so owned shall be so disregarded. Certificates which have been
        pledged in good faith to the Trustee, the Depositor, the Master Servicer
        or any
        Affiliate thereof may be regarded as outstanding if the pledgor establishes
        to
        the satisfaction of the Trustee the pledgor’s right to act with respect to such
        Certificates and that the pledgor is not an Affiliate of the Trustee, the
        Depositor, or the Master Servicer, as the case may be.

       

      Section
        11.06                                Governing
        Law.

       

      THIS
        AGREEMENT AND THE CERTIFICATES SHALL BE CONSTRUED IN ACCORDANCE WITH THE
        LAWS OF
        THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS RULES (OTHER
        THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW, WHICH THE PARTIES HERETO
        EXPRESSLY RELY UPON IN THE CHOICE OF SUCH LAW AS THE GOVERNING LAW HEREUNDER)
        AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
        DETERMINED IN ACCORDANCE WITH SUCH LAWS.

       

      Section
        11.07                                Notices.

       

      All
        demands and notices hereunder shall be in writing and shall be deemed given
        when
        delivered at (including delivery by facsimile) or mailed by registered mail,
        return receipt requested, postage prepaid, or by recognized overnight courier,
        to (i) in the case of the Depositor, 383 Madison Avenue, New York, New York
        10179, Attention: Vice President-Servicing, telecopier number: (212) 272-5591,
        or to such other address as may hereafter be furnished to the other parties
        hereto in writing; (ii) in the case of the Trustee, at its Corporate Trust
        Office, or such other address as may hereafter be furnished to the other
        parties
        hereto in writing; (iii) in the case of the Seller, 2780 Lake Vista Drive,
        Lewisville, Texas 75067, Attention: President or General Counsel, facsimile
        number: (214) 626-4714, or to such other address as may hereafter be furnished
        to the other parties hereto in writing; (iv) in the case of the Master Servicer,
        2780 Lake Vista Drive, Lewisville, Texas 75067, Attention: Michelle Viner,
        facsimile number: (214) 626-4889, telecopier number: (214) 626-3287, or to
        such
        other address as may hereafter be furnished to the other parties hereto in
        writing, and (v) in the case of the Rating Agencies, Fitch, Inc., One State
        Street Plaza, New York, New York 10004, Attention ABS Monitoring Department,
        and
        Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., 55 Water
        Street, New York, New York 10041, or such other address as may be hereafter
        furnished to the Depositor, Trustee and Master Servicer in writing by Fitch
        or
        Standard & Poor’s. Any notice delivered to the Depositor, the Master
        Servicer or the Trustee under this Agreement shall be effective only upon
        receipt. Any notice required or permitted to be mailed to a Certificateholder,
        unless otherwise provided herein, shall be given by first-class mail, postage
        prepaid, at the address of such Certificateholder as shown in the Certificate
        Register. Any notice so mailed within the time prescribed in this Agreement
        shall be conclusively presumed to have been duly given when mailed, whether
        or
        not the Certificateholder receives such notice.

       

      Section
        11.08                                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 severed from the remaining
        covenants, agreements, provisions or terms of this Agreement and shall in
        no way
        affect the validity or enforceability of the other provisions of this Agreement
        or of the Certificates or the rights of the holders thereof.

       

      Section
        11.09                                Successors
        and Assigns.

       

      The
        provisions of this Agreement shall be binding upon and inure to the benefit
        of
        the respective successors and assigns of the parties hereto.

       

      Section
        11.10                                Article
        and Section Headings.

       

      The
        article and section headings herein are for convenience of reference only,
        and
        shall not limit or otherwise affect the meaning hereof.

       

      Section
        11.11                                Counterparts.

       

      This
        Agreement may be executed in two or more counterparts each of which when
        so
        executed and delivered shall be an original but all of which together shall
        constitute one and the same instrument.

       

      Section
        11.12                                Notice
        to Rating Agencies.

       

      The
        article and section headings herein are for convenience of reference only,
        and
        shall not limited or otherwise affect the meaning hereof. The Trustee shall
        promptly provide notice to each Rating Agency with respect to each of the
        following of which a Responsible Officer of the Trustee has actual
        knowledge:

       

      1.           Any
        material change or amendment to this Agreement or the Servicing
        Agreements;

       

      2.           The
        occurrence of any Event of Default that has not been cured;

       

      3.           The
        resignation or termination of the Master Servicer or the Trustee;

       

      4.           The
        repurchase or substitution of Mortgage Loans;

       

      5.           The
        final payment to Certificateholders; and

       

      6.           Any
        change in the location of the In the event that this Agreement is terminated
        by
        reason of the payment or liquidation of all Mortgage Loans or the disposition
        of
        all property acquired with respect to all Mortgage Loans under Subsection
        10.01(a)(ii) above, the Master Servicer shall deliver to the Trustee for
        deposit
        in the Distribution Account all distributable amounts remaining in the Master
        Servicer Collection Account or the Distribution Account.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      IN
        WITNESS WHEREOF, the Depositor, the Trustee and the Master Servicer have
        caused
        their names to be signed hereto by their respective officers thereunto duly
        authorized as of the day and year first above written.

       

      
        	 	 	 	 	 	 	 	
                STRUCTURED
                  ASSET MORTGAGE INVESTMENTS II INC., as Depositor

                 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By: 

              	 
                /s/ Joseph T. Jurkowski, Jr.
	 	 	 	 	 	 	 	
                Name:

              	
                Joseph
                  T. Jurkowski, Jr.

              
	 	 	 	 	 	 	 	
                Title:

              	
                Vice
                  President

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                U.S.
                  BANK NATIONAL ASSOCIATION, as Trustee

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
                /s/ Maryellen Hunter
	 	 	 	 	 	 	 	
                Name:
                  

              	 Maryellen
                Hunter
	 	 	 	 	 	 	 	
                Title:

              	 
                Assistant Vice President 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                EMC
                  MORTGAGE CORPORATION, as Master Servicer and Seller

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
                /s/ Carol Young
	 	 	 	 	 	 	 	
                Name:
                  

              	 Carol
                Young
	 	 	 	 	 	 	 	
                Title:
                  

              	 Senior
                VIce President 
	 	 	 	 	 	 	 	 	 

      

      

      Accepted
        and Agreed as to

      Sections
        2.01, 2.02, 2.03, 2.04 and 9.09(c)

       

      in
        its
        capacity as Seller

       

      EMC
        MORTGAGE CORPORATION

       

      

       

      
        	
                By:
                  

              	 /s/
                Carol Young 
	
                Name:
                  

              	 Carol
                Young
	
                Title:
                  

              	 Senior
                Vice President 

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      

       

      On
        the
        30th day of August, 2007 before me, a notary public in and for said State,
        personally appeared ___________________, known to me to be a
        _______________________ of Structured Asset Mortgage Investments II Inc.,
        the
        corporation that executed the within instrument, and also known to me to
        be the
        person who executed it on behalf of said corporation, and acknowledged to
        me
        that such corporation executed the within instrument.

       

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

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

       [Notarial
        Seal]

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                STATE
                  OF

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF

              	
                )

              	 

      

      

       

      On
        the
        30th day of August, 2007 before me, a notary public in and for said State,
        personally appeared ____________, known to me to be a ____________ of U.S.
        Bank
        National Association, the entity that executed the within instrument, and
        also
        known to me to be the person who executed it on behalf of said entity, and
        acknowledged to me that such entity executed the within instrument.

       

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

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

       [Notarial
        Seal]

      

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                STATE
                  OF TEXAS

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF DENTON

              	
                )

              	 

      

      

       

      On
        the
        30th day of
        August, 2007 before me, a notary public in and for said State, personally
        appeared _______________, known to me to be a __________________ of EMC Mortgage
        Corporation, the corporation that executed the within instrument, and also
        known
        to me to be the person who executed it on behalf of said corporation, and
        acknowledged to me that such corporation executed the within
        instrument.

       

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

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

       [Notarial
        Seal]

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      
        	
                STATE
                  OF TEXAS

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF DENTON

              	
                )

              	 

      

      

       

      On
        the
        30th day of
        August, 2007 before me, a notary public in and for said State, personally
        appeared ____________, known to me to be ____________ of EMC Mortgage
        Corporation, the corporation that executed the within instrument, and also
        known
        to me to be the person who executed it on behalf of said corporation, and
        acknowledged to me that such corporation executed the within
        instrument.

       

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

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

       

       [Notarial
        Seal]

       

      

      

 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A-1

     

    FORM
      OF CLASS [_]-A-[_] CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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 (THE “CODE”).

     

    [THE
      CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL
      PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING
      THE
      INITIAL ISSUANCE OF THE CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS
      CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
      ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY
      OF THE TRUSTEE NAMED HEREIN.]

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
      OR PAYMENT, AND ANY CERTIFICATE ISSUED WILL BE REGISTERED IN THE NAME OF CEDE
      & CO. OR SUCHOTHER NAME AS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT WILL BE MADE
      TO
      CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
      BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      	
              Certificate
                No.1

            	
              Pass-Through
                Rate: [___]%

            
	 	 
	
              Class
                [_]-A-[_] Senior

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date:

              August
                1, 2007

            	
              Aggregate
                Initial [Current Principal][Notional] Amount of this Senior Certificate
                as
                of the Cut-off Date:

              $[_____________]

            
	 	 
	
              First
                Distribution Date:

              September
                25, 2007

            	
              Initial
                [Current Principal][Notional] Amount of this Senior Certificate as
                of the
                Cut-off Date: $[_____________]

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [____________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [_________]

            	 
	 	 

    

     

     

     

     

    PRIME
      MORTGAGE TRUST 2007-3

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2007-3

     

    
      
        	 	
                evidencing
                  a fractional undivided interest in the distributions allocable
                  to the
                  Class [_]-A-[_] Certificates with respect to a portion of a Trust
                  Fund
                  consisting primarily of a pool of fixed rate mortgage loans secured
                  by
                  first liens on one-to-four family residential properties sold by
                  STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.

              	 

      

    

     

     

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of Structured
      Asset
      Mortgage Investments II Inc., the Master Servicer or any of their affiliates
      will have any obligation with respect to any certificate or other obligation
      secured by or payable from payments on the Certificates.

     

    This
      certifies that Cede & Co. is the registered owner of the Fractional
      Undivided Interest evidenced hereby in the beneficial ownership interest of
      Certificates of the same Class as this Certificate in a portion of a trust
      (the
“Trust Fund”) primarily consisting of fixed rate mortgage loans secured by first
      liens on one- to four- family residential properties (collectively, the
“Mortgage Loans”) sold by Structured Asset Mortgage Investments II Inc. (“SAMI
      II”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) and
      Master Funding LLC to SAMI II.  EMC will act as master servicer of the
      Mortgage Loans (the “Master Servicer”, which term includes any successors
      thereto under the Agreement referred to below). The Trust Fund was created
      pursuant to the Pooling and Servicing Agreement dated as of the Cut-off Date
      specified above (the “Agreement”), among EMC Mortgage Corporation, as seller
      (the “Seller”) and master servicer, SAMI II, as depositor (the “Depositor”) and
      U.S. Bank National Association as trustee (the “Trustee”), a summary of certain
      of the pertinent provisions of which is set forth hereafter. To the extent
      not
      defined herein, capitalized terms used herein shall have the meaning ascribed
      to
      them 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 its acceptance hereof assents and by which
      such
      Holder is bound.

     

    [Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Current Principal
      Amount hereof at a per annum rate equal to the Pass-Through Rate set forth
      above
      and as further described in the Agreement. The Trustee will distribute on the
      25th day of each month, or, if such 25th day is not a Business Day, the
      immediately following Business Day (each, a “Distribution Date”), commencing on
      the First Distribution Date specified above, to the Person in whose name this
      Certificate is registered at the close of business on the last Business Day
      of
      the calendar month preceding the month of such Distribution Date, an amount
      equal to the product of the Fractional Undivided Interest evidenced by this
      Certificate and the amount (of interest and principal, if any) required to
      be
      distributed to the Holders of Certificates of the same Class as this
      Certificate. The Assumed Final Distribution Date is the Distribution Date in
      the
      month immediately following the month of the latest scheduled maturity date
      of
      any Mortgage Loan and is not likely to be the date on which the Current
      Principal Amount of this Class of Certificates will be reduced to
      zero.]

     

    [Interest
      on this Certificate will accrue from and including the 25th day of the calendar
      month preceding the month in which a Distribution Date (as hereinafter defined)
      occurs  to and including the 24th day of the calendar month in which
      that Distribution Date occurs on the [Current Principal][Notional] Amount hereof
      at a per annum rate equal to the Pass-Through Rate set forth above and as
      further described in the Agreement. The Trustee will distribute on the 25th
      day
      of each month, or, if such 25th day is not a Business Day, the immediately
      following Business Day (each, a “Distribution Date”), commencing on the First
      Distribution Date specified above, to the Person in whose name this Certificate
      is registered at the close of business on the Business Day immediately preceding
      such Distribution Date, an amount equal to the product of the Fractional
      Undivided Interest evidenced by this Certificate and the amount (of interest
      [and principal], if any) required to be distributed to the Holders of
      Certificates of the same Class as this Certificate. The Assumed Final
      Distribution Date is the Distribution Date in the month immediately following
      the month of the latest scheduled maturity date of any Mortgage Loan and is
      not
      likely to be the date on which the [Current Principal][Notional] Amount of
      this
      Class of Certificates will be reduced to zero.  [The Class [_]-A-[_]
      Certificates have no Current Principal Amount.]]

     

    Distributions
      on this Certificate will be made by the Trustee by check mailed to the address
      of the Person entitled thereto as such name and address shall appear on the
      Certificate Register or, if such Person so requests by notifying the Trustee
      in
      writing as specified in the Agreement by wire transfer. Notwithstanding the
      above, the final distribution on this Certificate will be made after due notice
      by the Trustee of the pendency of such distribution and only upon presentation
      and surrender of this Certificate at the office or agency appointed by the
      Trustee for that purpose and designated in such notice. The Initial [Current
      Principal][Notional] Amount of this Certificate is set forth above. [The Current
      Principal Amount hereof will be reduced to the extent of distributions allocable
      to principal hereon and any Realized Losses allocable hereto.]

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, and with the consent of the Insurer with respect to
      amendments related to the Mortgage Pass-Through Certificates, evidencing
      Fractional Undivided Interests aggregating not less than 51% of the portion
      of
      the Trust Fund related to such Certificates (or in certain cases, Holders of
      Certificates of affected Classes evidencing such percentage of the Fractional
      Undivided Interests thereof). 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
      lieu hereof whether or not notation of such consent is made upon this
      Certificate. The Agreement also permits the amendment thereof, in certain
      limited circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the Trustee upon surrender
      of this Certificate for registration of transfer at the offices or agencies
      maintained by the Trustee for such purposes, duly endorsed by, or accompanied
      by
      a written instrument of transfer in form satisfactory to the Trustee duly
      executed by the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Certificates in authorized denominations
      representing a like aggregate Fractional Undivided Interest will be issued
      to
      the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

    

    
      	 	
              U.S. BANK NATIONAL
                ASSOCIATION, 

              Not
                in its individual capacity but solely as Trustee

            	 
	 	 	 	 
	
              Dated:
                August
                31, 2007

            	
              By:
                

            	 	 
	 	 	
              Authorized
                Signatory

            	 
	 	 	 	 
	 	 	 	 

    

     

    

    

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Class [_]-A-[_] Certificates referred to in the within-mentioned
      Agreement.

     

    
      
        	 	
                U.S. BANK NATIONAL
                  ASSOCIATION, 

                Authorized
                  signatory of U.S. Bank National Association, not in its individual
                  capacity but solely as Trustee

              	 
	 	 	 	 
	
                 

              	
                By:
                  

              	 	 
	 	 	
                Authorized
                  Signatory

              	 
	 	 	 	 
	 

      

    

    
 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    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) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar 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

            	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
              Signature
                Guaranteed

            	 

    

     

     

    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-2

    

    FORM
      OF CLASS [_]-B-[_] CERTIFICATE

     

    THIS
      CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES,
      [AND
      THE CLASS [_]-B-[_] CERTIFICATES], AS DESCRIBED IN THE AGREEMENT (AS DEFINED
      BELOW).

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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 (THE “CODE”).

     

    THE
      CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL
      PAYMENTS HEREON AND ANY REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING
      THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS
      CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
      ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY
      OF THE TRUSTEE NAMED HEREIN.

     

    [UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
      OR PAYMENT, AND ANY CERTIFICATE ISSUED WILL BE REGISTERED IN THE NAME OF CEDE
      & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
      DEPOSITORY TRUST COMPANY AND ANY PAYMENT WILL BE MADE TO CEDE & CO. ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.]

     

    [For
      the Class I-B-1, Class I-B-2, Class I-B-3, Class II-B-1, Class II-B-2 and Class
      II-B-3 Certificates] [EACH BENEFICIAL OWNER OF THIS CERTIFICATE OR ANY INTEREST
      HEREIN SHALL BE DEEMED TO HAVE REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR
      HOLDING OF THIS CERTIFICATE OR INTEREST HEREIN, THAT EITHER (I) IT IS NOT AN
      EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
      OF
      1974, AS AMENDED OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS
      AMENDED (“PLAN”), OR INVESTING WITH ASSETS OF A PLAN OR (II) IT HAS ACQUIRED AND
      IS HOLDING SUCH CERTIFICATE IN RELIANCE ON PROHIBITED TRANSACTION EXEMPTION
      90-30, AS AMENDED FROM TIME TO TIME (“EXEMPTION”), AND THAT IT UNDERSTANDS THAT
      THERE ARE CERTAIN CONDITIONS TO THE AVAILABILITY OF THE EXEMPTION, INCLUDING
      THAT THE CERTIFICATE MUST BE RATED, AT THE TIME OF PURCHASE, NOT LOWER THAN
      “BBB-“ (OR ITS EQUIVALENT) BY STANDARD & POOR’S, FITCH, INC., DOMINION BOND
      RATING SERVICE, INC. (KNOWN AS DBRS, INC.), DOMINION BOND RATING SERVICE LIMITED
      (KNOWN AS DBRS LIMITED) OR MOODY’S INVESTORS SERVICE, INC., AND THE CERTIFICATE
      IS SO RATED OR (III) (1) IT IS AN INSURANCE COMPANY, (2) THE SOURCE OF FUNDS
      USED TO ACQUIRE OR HOLD THE CERTIFICATE OR INTEREST HEREIN IS AN “INSURANCE
      COMPANY GENERAL ACCOUNT”, AS SUCH TERM IS DEFINED IN PROHIBITED TRANSACTION
      CLASS EXEMPTION (“PTCE”) 95-60, AND (3) THE CONDITIONS IN SECTIONS I AND III OF
      PTCE 95-60 HAVE BEEN SATISFIED.]

     

    [THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
      HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
      MAY
      BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
      THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
      144A
      UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
      BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
      (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A
      QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
      PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
      TO
      AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
      (IF
      AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR”
WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION
      D
      UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH
      PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT,
      SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE
      FORM
      PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER
      EVIDENCE ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER
      IS IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH
      CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES
      AND
      ANY OTHER APPLICABLE JURISDICTION.]

     

    [For
      the Class I-B-4, Class I-B-5, Class I-B-6, Class II-B-4, Class II-B-5 and Class
      II-B-6 Certificates] [THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR
      INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
      ARRANGEMENT WHICH IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
      SECURITY ACT OF 1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE
      OF 1986, AS AMENDED, UNLESS THE TRANSFEREE CERTIFIES OR REPRESENTS THAT THE
      PROPOSED TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
      AND
      OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY PROHIBITED
      TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS PROHIBITED
      TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED TRANSACTION
      CLASS EXEMPTION (“PTCE”) 84-14, PTCE 91-38, PTCE 90-1, PTCE 95-60 OR PTCE 96-23
      AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL OBLIGATIONS ON THE PART OF THE
      DEPOSITOR, THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED
      BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE OR UNLESS THE
      OPINION SPECIFIED IN SECTION 5.07 OF THE AGREEMENT IS
      PROVIDED.]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Certificate
                No.1

            	
              Pass-Through
                Rate: [__]%

            
	 	 
	
              Class
                [_]-B-[_] Subordinate

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date: August 1,
                2007

            	
              Aggregate
                Initial Current Principal Amount of this Subordinate Certificate
                as of the
                Cut-off Date: $[_________]

            
	 	 
	
              First
                Distribution Date:

              September
                25, 2007

            	
              Initial
                Current Principal Amount of this Subordinate Certificate as of the
                Cut-off
                Date: $[_________]

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [____________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [____________]

            	 
	 	 

    

     

     

     

    PRIME
      MORTGAGE TRUST 2007-3

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2007-3

     

    
      
        	 	
                evidencing
                  a fractional undivided interest in the distributions allocable
                  to the
                  Class [_]-B-[_] Certificates with respect to a portion of a Trust
                  Fund
                  consisting primarily of a pool of fixed rate mortgage loans secured
                  by
                  first liens on one-to-four family residential properties sold by
                  STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.

              	 

      

    

     

     

     

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of Structured
      Asset
      Mortgage Investments II Inc., the Master Servicer or any of their affiliates
      will have any obligation with respect to any certificate or other obligation
      secured by or payable from payments on the Certificates.

     

    This
      certifies that [_______] is the registered owner of the Fractional Undivided
      Interest evidenced hereby in the beneficial ownership interest of Certificates
      of the same Class as this Certificate in a portion of a trust (the “Trust Fund”)
      primarily consisting of fixed rate mortgage loans secured by first liens on
      one-
      to four- family residential properties (collectively, the “Mortgage Loans”) sold
      by Structured Asset Mortgage Investments II Inc. (“SAMI II”). The Mortgage Loans
      were sold by EMC Mortgage Corporation (“EMC”) and Master Funding LLC to SAMI
      II.  EMC will act as master servicer of the Mortgage Loans (the
“Master Servicer”, which term includes any successors thereto under the
      Agreement referred to below). The Trust Fund was created pursuant to the Pooling
      and Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among EMC as seller (the “Seller”) and master servicer, SAMI II,
      as depositor (the “Depositor”) and U.S. Bank National Association as trustee
      (the “Trustee”), a summary of certain of the pertinent provisions of which is
      set forth hereafter. To the extent not defined herein, capitalized terms used
      herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is
      bound.

     

    Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Current Principal
      Amount hereof at a per annum rate equal to the Pass-Through Rate set forth
      above
      and as further described in the Agreement. The Trustee will distribute on the
      25th day of each month, or, if such 25th day is not a Business Day, the
      immediately following Business Day (each, a “Distribution Date”), commencing on
      the First Distribution Date specified above, to the Person in whose name this
      Certificate is registered at the close of business on the last Business Day
      of
      the calendar month preceding the month of such Distribution Date, an amount
      equal to the product of the Fractional Undivided Interest evidenced by this
      Certificate and the amount (of interest and principal, if any) required to
      be
      distributed to the Holders of Certificates of the same Class as this
      Certificate. The Assumed Final Distribution Date is the Distribution Date in
      the
      month immediately following the month of the latest scheduled maturity date
      of
      any Mortgage Loan and is not likely to be the date on which the Current
      Principal Amount of this Class of Certificates will be reduced to
      zero.

     

    Distributions
      on this Certificate will be made by the Trustee by check mailed to the address
      of the Person entitled thereto as such name and address shall appear on the
      Certificate Register or, if such Person so requests by notifying the Trustee
      in
      writing as specified in the Agreement by wire transfer. Notwithstanding the
      above, the final distribution on this Certificate will be made after due notice
      by the Trustee of the pendency of such distribution and only upon presentation
      and surrender of this Certificate at the office or agency appointed by the
      Trustee for that purpose and designated in such notice. The Initial Current
      Principal Amount of this Certificate is set forth above. The Current Principal
      Amount hereof will be reduced to the extent of distributions allocable to
      principal hereon and any Realized Losses allocable hereto.

     

    [No
      transfer of this Class [_]-B-[_] Certificate will be made unless such transfer
      is (i) exempt from the registration requirements of the Securities act of 1933,
      as amended, and any applicable state securities laws or is made in accordance
      with said Act and laws and (ii) made in accordance with Section 5.02 of the
      Agreement.   In the event that such transfer is to be made the
      Trustee shall register such transfer if, (i) made to a transferee who has
      provided the Trustee with evidence as to its QIB status; or (ii) (A) the
      transferor has advised the Trustee in writing that the Certificate is being
      transferred to an Institutional Accredited Investor and (B) prior to such
      transfer the transferee furnishes to the Trustee an Investment Letter; provided
      that if based upon an Opinion of Counsel to the effect that (A) and (B) above
      are met sufficient to confirm that such transfer is being made pursuant to
      an
      exemption from, or in a transaction not subject to, the registration
      requirements of the Securities Act and other applicable laws.]

     

    [For
      the
      Class I-B-1, Class I-B-2, Class I-B-3, Class II-B-1, Class II-B-2 and Class
      II-B-3 Certificates] [Each beneficial owner of this Certificate or any interest
      herein shall be deemed to have represented, by virtue of its acquisition or
      holding of this certificate or interest herein, that either (i) it is not an
      employee benefit plan subject to the Employee Retirement Income Security Act
      of
      1974, as amended or section 4975 of the Internal Revenue Code of 1986, as
      amended (“Plan”), or investing with assets of a Plan or (ii) it has acquired and
      is holding such certificate in reliance on Prohibited Transaction Exemption
      90-30, as amended from time to time (“Exemption”), and that it understands that
      there are certain conditions to the availability of the Exemption, including
      that the certificate must be rated, at the time of purchase, not lower than
      “BBB-“ (or its equivalent) by Standard & Poor’s, Fitch, Inc., Dominion Bond
      Rating Service, Inc. (known as DBRS, Inc.), Dominion Bond Rating Service Limited
      (known as DBRS Limited) or Moody’s Investors Service, Inc., and the certificate
      is so rated or (iii) (1) it is an insurance company, (2) the source of funds
      used to acquire or hold the certificate or interest therein is an “insurance
      company general account”, as such term is defined in Prohibited Transaction
      Class Exemption (“PTCE”) 95-60, and (3) the conditions in Sections I and III of
      PTCE 95-60 have been satisfied.]

     

    [For
      the
      Class I-B-4, Class I-B-5, Class I-B-6, Class II-B-4, Class II-B-5 and Class
      II-B-6 Certificates] [This Certificate may not be acquired directly or
      indirectly by, or on behalf of, an employee benefit plan or other retirement
      arrangement which is subject to Title I of the Employee Retirement Income
      Security Act of 1974, as amended, or Section 4975 of the Internal Revenue Code
      of 1986, as amended, unless the transferee certifies or represents that the
      proposed transfer and holding of a Certificate and the servicing, management
      and
      operation of the trust and its assets: (i) will not result in any prohibited
      transaction which is not covered under an individual or class prohibited
      transaction exemption, including, but not limited to, Prohibited Transaction
      Class Exemption (“PTCE”) 84-14, PTCE 91-38, PTCE 90-1, PTCE 95-60 or PTCE 96-23
      and (ii) will not give rise to any additional obligations on the part of the
      Depositor, the Master Servicer or the Trustee, which will be deemed represented
      by an owner of a Book-Entry Certificate or a Global Certificate or unless the
      opinion specified in section 5.07 of the Agreement is provided.]

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, and with the consent of the Insurer with respect to
      amendments related to the Mortgage Pass-Through Certificates, evidencing
      Fractional Undivided Interests aggregating not less than 51% of the portion
      of
      the Trust Fund related to such Certificates (or in certain cases, Holders of
      Certificates of affected Classes evidencing such percentage of the Fractional
      Undivided Interests thereof). 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
      lieu hereof whether or not notation of such consent is made upon this
      Certificate. The Agreement also permits the amendment thereof, in certain
      limited circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the Trustee upon surrender
      of this Certificate for registration of transfer at the offices or agencies
      maintained by the Trustee for such purposes, duly endorsed by, or accompanied
      by
      a written instrument of transfer in form satisfactory to the Trustee duly
      executed by the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Certificates in authorized denominations
      representing a like aggregate Fractional Undivided Interest will be issued
      to
      the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

    

    
      	 	
              U.S.
                BANK
                NATIONAL ASSOCIATION, 

              Not
                in its individual capacity but solely as Trustee

            	 
	 	 	 	 
	
              Dated:
                August
                31, 2007

            	
              By:

            	 	 
	 	 	
              Authorized
                Signatory

            	 
	 	 	 	 
	 	 	 	 

    

    
                                                 

     

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Class [_]-B-[_] Certificates referred to in the within-mentioned
      Agreement.

     

     

    
      

      
        	 	
                U.S.
                  BANK
                  NATIONAL ASSOCIATION, 

                Authorized
                  signatory of U.S. Bank National Association, not in its individual
                  capacity but solely as Trustee

              	 
	 	 	 	 
	
                 

              	
                 

              	 	 
	 	 	
                Authorized
                  Signatory

              	 
	 	 	 	 
	 	 	 	 

      

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    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) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar 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

                	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
                  Signature
                    Guaranteed

                	 

        

        

      

       

    

     

    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-3

     

    FORM
      OF CLASS [_]-PO CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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 (THE “CODE”).

     

    THE
      CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL
      PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING
      THE
      INITIAL ISSUANCE OF THE CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS
      CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
      ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY
      OF THE TRUSTEE NAMED HEREIN.

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
      OR PAYMENT, AND ANY CERTIFICATE ISSUED WILL BE REGISTERED IN THE NAME OF CEDE
      & CO. OR SUCHOTHER NAME AS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT WILL BE MADE
      TO
      CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
      BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      	
              Certificate
                No.1

            	
              Pass-Through
                Rate: 0.000%

            
	 	 
	
              Class
                [_]-PO Senior

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date:

              August
                1, 2007

            	
              Aggregate
                Initial Current Principal Amount of this Senior Certificate as of
                the
                Cut-off Date:

              $[_____________]

            
	 	 
	
              First
                Distribution Date:

              September
                25, 2007

            	
              Initial
                Current Principal Amount of this Senior Certificate as of the Cut-off
                Date: $[_____________]

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [____________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [____________]

            	 
	 	 

    

     

     

     

    PRIME
      MORTGAGE TRUST 2007-3

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2007-3

     

    
      	 	
              evidencing
                a fractional undivided interest in the distributions allocable to
                the
                Class [_]-PO Certificates with respect to a portion of a Trust Fund
                consisting primarily of a pool of fixed rate mortgage loans secured
                by
                first liens on one-to-four family residential properties sold by
                STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.

            	 

    

     

     

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of Structured
      Asset
      Mortgage Investments II Inc., the Master Servicer or any of their affiliates
      will have any obligation with respect to any certificate or other obligation
      secured by or payable from payments on the Certificates.

     

    This
      certifies that Cede & Co. is the registered owner of the Fractional
      Undivided Interest evidenced hereby in the beneficial ownership interest of
      Certificates of the same Class as this Certificate in a portion of a trust
      (the
“Trust Fund”) primarily consisting of fixed rate mortgage loans secured by first
      liens on one- to four- family residential properties (collectively, the
“Mortgage Loans”) sold by Structured Asset Mortgage Investments II Inc. (“SAMI
      II”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) and
      Master Funding LLC to SAMI II.  EMC will act as master servicer of the
      Mortgage Loans (the “Master Servicer”, which term includes any successors
      thereto under the Agreement referred to below). The Trust Fund was created
      pursuant to the Pooling and Servicing Agreement dated as of the Cut-off Date
      specified above (the “Agreement”), among EMC Mortgage Corporation, as seller
      (the “Seller”) and master servicer, SAMI II, as depositor (the “Depositor”) and
      U.S. Bank National Association as trustee (the “Trustee”), a summary of certain
      of the pertinent provisions of which is set forth hereafter. To the extent
      not
      defined herein, capitalized terms used herein shall have the meaning ascribed
      to
      them 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 its acceptance hereof assents and by which
      such
      Holder is bound.

     

    The
      Trustee will distribute on the 25th day of each month, or, if such 25th day
      is
      not a Business Day, the immediately following Business Day (each, a
“Distribution Date”), commencing on the First Distribution Date specified above,
      to the Person in whose name this Certificate is registered at the close of
      business on the last Business Day of the calendar month preceding the month
      of
      such Distribution Date, an amount equal to the product of the Fractional
      Undivided Interest evidenced by this Certificate and the amount of principal
      required to be distributed to the Holders of Certificates of the same Class
      as
      this Certificate. The Assumed Final Distribution Date is the Distribution Date
      in the month immediately following the month of the latest scheduled maturity
      date of any Mortgage Loan and is not likely to be the date on which the Current
      Principal Amount of this Class of Certificates will be reduced to
      zero.

     

    Distributions
      on this Certificate will be made by the Trustee by check mailed to the address
      of the Person entitled thereto as such name and address shall appear on the
      Certificate Register or, if such Person so requests by notifying the Trustee
      in
      writing as specified in the Agreement by wire transfer. Notwithstanding the
      above, the final distribution on this Certificate will be made after due notice
      by the Trustee of the pendency of such distribution and only upon presentation
      and surrender of this Certificate at the office or agency appointed by the
      Trustee for that purpose and designated in such notice. The Initial Current
      Principal Amount of this Certificate is set forth above. The Current Principal
      Amount hereof will be reduced to the extent of distributions allocable to
      principal hereon and any Realized Losses allocable hereto.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, and with the consent of the Insurer with respect to
      amendments related to the Mortgage Pass-Through Certificates, evidencing
      Fractional Undivided Interests aggregating not less than 51% of the portion
      of
      the Trust Fund related to such Certificates (or in certain cases, Holders of
      Certificates of affected Classes evidencing such percentage of the Fractional
      Undivided Interests thereof). 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
      lieu hereof whether or not notation of such consent is made upon this
      Certificate. The Agreement also permits the amendment thereof, in certain
      limited circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the Trustee upon surrender
      of this Certificate for registration of transfer at the offices or agencies
      maintained by the Trustee for such purposes, duly endorsed by, or accompanied
      by
      a written instrument of transfer in form satisfactory to the Trustee duly
      executed by the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Certificates in authorized denominations
      representing a like aggregate Fractional Undivided Interest will be issued
      to
      the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    
      

      
        	 	
                U.S.
                  BANK
                  NATIONAL ASSOCIATION, 

                Not
                  in its individual capacity but solely as Trustee

              	 
	 	 	 	 
	
                Dated:
                  August
                  31, 2007

              	
                By:

              	 	 
	 	 	
                Authorized
                  Signatory

              	 
	 	 	 	 
	 	 	 	 

      

    

    
 

     

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Class [_]-PO Certificates referred to in the within-mentioned
      Agreement.

     

    
      
        

        
          	 	
                  U.S.
                    BANK
                    NATIONAL ASSOCIATION, 

                  Authorized
                    signatory of U.S. Bank National Association, not in its individual
                    capacity but solely as Trustee

                	 
	 	 	 	 
	
                   

                	
                  By:

                	 	 
	 	 	
                  Authorized
                    Signatory

                	 
	 	 	 	 
	 	 	 	 

        

      

       

       

       

      

 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    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) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar 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

              	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
                Signature
                  Guaranteed

              	 

      

      
 

       

    

     

    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-4

    

    FORM
      OF CLASS [_]-R-[_] CERTIFICATE

     

    THIS
      CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON,
      A
      PUBLICLY TRADED PARTNERSHIP OR A DISQUALIFIED ORGANIZATION (AS DEFINED
      BELOW).

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A “RESIDUAL
      INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” AS THOSE TERMS ARE
      DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE
      OF
      1986 (THE “CODE”).

     

    THIS
      CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF,
      AN
      EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE
      I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, AND/OR
      SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
      PROPOSED TRANSFEREE PROVIDES THE TRUSTEE WITH AN OPINION OF COUNSEL ADDRESSED
      TO
      THE TRUSTEE, DEPOSITOR AND MASTER SERVICER AND ON WHICH THEY MAY RELY THAT
      IS
      SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE OF CERTIFICATES ON BEHALF OF
      SUCH
      PERSON WILL NOT RESULT IN OR CONSTITUTE A NONEXEMPT PROHIBITED TRANSACTION,
      IS
      PERMISSIBLE UNDER APPLICABLE LAW AND WILL NOT GIVE RISE TO ANY ADDITIONAL
      OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE MASTER SERVICER OR THE
      TRUSTEE.

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IF
      THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE TRUSTEE THAT (1)
      SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION
      THEREOF, ANY POSSESSION OF THE UNITED STATES, OR ANY AGENCY OR INSTRUMENTALITY
      OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY WHICH IS A CORPORATION
      IF
      ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT FOR THE FREDDIE MAC, A
      MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY SUCH GOVERNMENTAL UNIT),
      (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
      INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C) ANY ORGANIZATION (OTHER THAN
      CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS
      EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION
      IS
      SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING THE TAX IMPOSED
      BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE INCOME), (D) RURAL
      ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION 1381(a)(2)(C) OF THE
      CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER SECTION 775(a) OF THE CODE (ANY
      SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), (C), (D) OR (E) BEING
      HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (F) AN AGENT OF A
      DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE
      ASSESSMENT OR COLLECTION OF TAX, (3) SUCH TRANSFEREE SATISFIES CERTAIN
      ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
      TRANSFEREE AND (4) SUCH TRANSFEREE IS A UNITED STATES
      PERSON.   NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE
      REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO
      A
      DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION OR A
      NON-UNITED STATES PERSON, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL
      FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
      CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO,
      THE
      RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE.   EACH HOLDER OF
      THIS CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE
      CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      	
              Certificate
                No.1

            	
              Pass-Through
                Rate: _____%

            
	 	 
	
              Class
                [_]-R-[_]

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date: August 1,
                2007

            	
              Aggregate
                Initial Current Principal Amount of this Certificate as of the Cut-off
                Date:

              $___________

            
	 	 
	
              First
                Distribution Date:

              September
                25, 2007

               

            	
              Initial
                Current Principal Amount of this Certificate as of the Cut-off Date:
                $_________

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [_____________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [____________]

            	 
	 	 

    

     

     

     

     

    PRIME
      MORTGAGE TRUST 2007-3

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2007-3

     

     

     

    
      	 	
              evidencing
                a fractional undivided interest in the distributions allocable to
                the
                Class [_]-R-[_] Certificates with respect to a portion of a Trust
                Fund (as
                defined below) consisting primarily of a pool of fixed rate mortgage
                loans
                secured by first liens on one-to-four family residential properties
                sold
                by STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.

            	 

    

     

     

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of Structured
      Asset
      Mortgage Investments II Inc., the Master Servicer or any of their affiliates
      will have any obligation with respect to any certificate or other obligation
      secured by or payable from payments on the Certificates.

     

    This
      certifies that Bear, Stearns Securities Corp. is the registered owner of the
      Fractional Undivided Interest evidenced hereby in the beneficial ownership
      interest of Certificates of the same Class as this Certificate in a portion
      of a
      trust (the “Trust Fund”) primarily consisting of fixed rate mortgage loans
      secured by first liens on one- to four- family residential
      properties   (collectively, the “Mortgage Loans”) sold by
      Structured Asset Mortgage Investments II Inc. (“SAMI II”). The Mortgage Loans
      were sold by EMC Mortgage Corporation (“EMC”) and Master Funding LLC to SAMI
      II.  EMC will act as master servicer of the Mortgage Loans (the
“Master Servicer”, which term includes any successors thereto under the
      Agreement referred to below). The Trust Fund was created pursuant to the Pooling
      and Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement’), among SAMI II, as depositor (the “Depositor”), EMC, as seller and
      master servicer and U.S. Bank National Association, as trustee (the “Trustee”),
      a summary of certain of the pertinent provisions of which is set forth
      hereafter. To the extent not defined herein, capitalized terms used herein
      shall
      have the meaning ascribed to them 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 its acceptance
      hereof assents and by which such Holder is bound.

     

    Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Current Principal
      Amount hereof at a per annum rate equal to the Pass-Through Rate set forth
      above
      and as further described in the Agreement.  The Trustee will
      distribute on the 25th day of each month, or, if such 25th day is not a Business
      Day, the immediately following Business Day (each, a “Distribution Date”),
      commencing on the First Distribution Date specified above, to the Person in
      whose name this Certificate is registered at the close of business on the last
      Business Day of the calendar month preceding the month of such Distribution
      Date, an amount equal to the product of the Fractional Undivided Interest
      evidenced by this Certificate and the amount (of interest and principal, if
      any)
      required to be distributed to the Holders of Certificates of the same Class
      as
      this Certificate. The Assumed Final Distribution Date is the Distribution Date
      in the month immediately following the month of the latest scheduled maturity
      date of any Mortgage Loan and is not likely to be the date on which the Current
      Principal Amount of this Class of Certificates will be reduced to
      zero.

     

    Distributions
      on this Certificate will be made by the Trustee by check mailed to the address
      of the Person entitled thereto as such name and address shall appear on the
      Certificate Register or, if such Person so requests by notifying the Trustee
      in
      writing as specified in the Agreement by wire transfer. Notwithstanding the
      above, the final distribution on this Certificate will be made after due notice
      by the Trustee of the pendency of such distribution and only upon presentation
      and surrender of this Certificate at the office or agency appointed by the
      Trustee for that purpose and designated in such notice. The Initial Current
      Principal Amount of this Certificate is set forth above. The Current Principal
      Amount hereof will be reduced to the extent of distributions allocable to
      principal hereon and any Realized Losses allocable hereto.

     

    Each
      Holder of this Certificate will be deemed to have agreed to be bound by the
      restrictions set forth in the Agreement to the effect that (i) each person
      holding or acquiring any Ownership Interest in this Certificate must be a United
      States Person and a Permitted Transferee, (ii) the transfer of any Ownership
      Interest in this Certificate will be conditioned upon the delivery to SAMI
      II
      and the Trustee of, among other things, an affidavit to the effect that it
      is a
      United States Person and Permitted Transferee, (iii) any attempted or purported
      transfer of any Ownership Interest in this Certificate in violation of such
      restrictions will be absolutely null and void and will vest no rights in the
      purported transferee, and (iv) if any person other than a United States Person
      and a Permitted Transferee acquires any Ownership Interest in this Certificate
      in violation of such restrictions, then the Depositor will have the right,
      in
      its sole discretion and without notice to the Holder of this Certificate, to
      sell this Certificate to a purchaser selected by the Depositor, which purchaser
      may be the Depositor, or any affiliate of the Depositor, on such terms and
      conditions as the Depositor may choose.

     

    This
      certificate may not be acquired directly or indirectly by, or on behalf of,
      an
      employee benefit plan or other retirement arrangement which is subject to title
      I of the Employee Retirement Income Security Act of 1974, as amended, and/or
      section 4975 of the Internal Revenue Code of 1986, as amended, unless the
      proposed transferee provides the Trustee with an opinion of counsel addressed
      to
      the Trustee and Master Servicer and on which they may rely (which shall not
      be
      at the expense of the Trustee or Master Servicer) which is acceptable to the
      Trustee, that the purchase of this Certificate will not result in or constitute
      a nonexempt prohibited transaction, is permissible under applicable law and
      will
      not give rise to any additional fiduciary obligations on the part of the
      Depositor, the Master Servicer or the Trustee.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, and with the consent of the Insurer with respect to
      amendments related to the Mortgage Pass-Through Certificates, evidencing
      Fractional Undivided Interests aggregating not less than 51% of the portion
      of
      the Trust Fund related to such Certificates (or in certain cases, Holders of
      Certificates of affected Classes evidencing such percentage of the Fractional
      Undivided Interests thereof). 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
      lieu hereof whether or not notation of such consent is made upon this
      Certificate. The Agreement also permits the amendment thereof, in certain
      limited circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the Trustee upon surrender
      of this Certificate for registration of transfer at the offices or agencies
      maintained by the Trustee for such purposes, duly endorsed by, or accompanied
      by
      a written instrument of transfer in form satisfactory to the Trustee duly
      executed by the Holder hereof or such Holder’s attorney duly authorized in
      writing, and thereupon one or more new Certificates in authorized denominations
      representing a like aggregate Fractional Undivided Interest will be issued
      to
      the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    
      
        

        
          	 	
                  U.S.
                    BANK
                    NATIONAL ASSOCIATION, 

                  Not
                    in its individual capacity but solely as Trustee

                	 
	 	 	 	 
	
                  Dated:
                    August
                    31, 2007

                	
                  By:

                	 	 
	 	 	
                  Authorized
                    Signatory

                	 
	 	 	 	 
	 	 	 	 

        

      

      
 

    

    CERTIFICATE
      OF AUTHENTICATION

    

    This
      is
      one of the Class [_]-R-[_] Certificates referred to in the within-mentioned
      Agreement.

     

    
      
        

        
          	 	
                  U.S.
                    BANK
                    NATIONAL ASSOCIATION, 

                  Authorized
                    signatory of U.S. Bank National Association, not in its individual
                    capacity but solely as Trustee

                	 
	 	 	 	 
	
                   

                	
                  By:

                	 	 
	 	 	
                  Authorized
                    Signatory

                	 
	 	 	 	 
	 	 	 	 

        

      

       

       

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    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) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar 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

                	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
                  Signature
                    Guaranteed

                	 

        

        

      

    

    
      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-5

     

    FORM
      OF CLASS [_]-X CERTIFICATE

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS 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 (THE “CODE”).

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
      OR PAYMENT, AND ANY CERTIFICATE ISSUED WILL BE REGISTERED IN THE NAME OF CEDE
      & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
      DEPOSITORY TRUST COMPANY AND ANY PAYMENT WILL BE MADE TO CEDE & CO., ANY
      TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
      IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
      HEREIN.

     

    

    
      	
              Certificate
                No.1

            	
              Variable
                Pass-Through Rate

            
	 	 
	
              Class
                [_]-X Senior

            	 
	 	 
	
              Date
                of Pooling and Servicing Agreement and Cut-off Date:

              August
                1, 2007

            	
              Aggregate
                Initial Notional Amount of this Senior Certificate as of the Cut-off
                Date:

              $[________]

            
	 	 
	
              First
                Distribution Date:

              September
                25, 2007

            	
              Initial
                Notional Amount of this Senior Certificate as of the Cut-off
                Date:

              $[________]

            
	 	 
	
              Master
                Servicer:

              EMC
                Mortgage Corporation

            	
              CUSIP:
                [________]

            
	 	 
	
              Assumed
                Final Distribution Date:

              [________]

            	 
	 	 

    

     

     

    PRIME
      MORTGAGE TRUST 2007-3

    MORTGAGE
      PASS-THROUGH CERTIFICATE

    SERIES
      2007-3

     

     

     

    
      	 	
              evidencing
                a fractional undivided interest in the distributions allocable to
                the
                Class [_]-X Certificates with respect to a portion of a Trust Fund
                consisting primarily of a pool of fixed rate mortgage loans secured
                by
                first liens on one-to-four family residential properties sold by
                STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.

            	 

   

    This
      Certificate is payable solely from the assets of the Trust Fund, and does not
      represent an obligation of or interest in Structured Asset Mortgage Investments
      II Inc., the Master Servicer or the Trustee referred to below or any of their
      affiliates or any other person. Neither this Certificate nor the underlying
      Mortgage Loans are guaranteed or insured by any governmental entity or by
      Structured Asset Mortgage Investments II Inc., the Master Servicer or the
      Trustee or any of their affiliates or any other person. None of the Structured
      Asset Mortgage Investments II Inc., the Master Servicer or any of their
      affiliates will have any obligation with respect to any certificate or other
      obligation secured by or payable from payments on the Certificates.

     

    This
      certifies that Cede & Co. is the registered owner of the Fractional
      Undivided Interest evidenced hereby in the beneficial ownership interest of
      Certificates of the same Class as this Certificate in a portion of a trust
      (the
“Trust Fund”) primarily consisting of fixed rate mortgage loans secured by first
      liens on one- to four- family residential properties (collectively, the
“Mortgage Loans”) sold by Structured Asset Mortgage Investments II Inc. (“SAMI
      II”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) and
      Master Funding LLC to SAMI II. EMC will act as master servicer of the Mortgage
      Loans (the “Master Servicer”, which term includes any successors thereto under
      the Agreement referred to below). The Trust Fund was created pursuant to the
      Pooling and Servicing Agreement dated as of the Cut-off Date specified above
      (the “Agreement”), among SAMI II, as depositor (the “Depositor”), EMC Mortgage
      Corporation, as seller and master servicer, and U.S. Bank National Association,
      as trustee (the “Trustee”), a summary of certain of the pertinent provisions of
      which is set forth hereafter. To the extent not defined herein, capitalized
      terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is
      bound.

     

    Interest
      on this Certificate will accrue during the month prior to the month in which
      a
      Distribution Date (as hereinafter defined) occurs on the Notional Amount hereof
      at a per annum rate equal to the Pass-Through Rate set forth above and as
      further described in the Agreement. The Trustee will distribute on the 25th
      day
      of each month, or, if such 25th day is not a Business Day, the immediately
      following Business Day (each, a “Distribution Date”), commencing on the First
      Distribution Date specified above, to the Person in whose name this Certificate
      is registered at the close of business on the last Business Day of the calendar
      month preceding the month of such Distribution Date, an amount equal to the
      product of the Fractional Undivided Interest evidenced by this Certificate
      and
      the amount (of interest and principal, if any) required to be distributed to
      the
      Holders of Certificates of the same Class as this Certificate. The Assumed
      Final
      Distribution Date is the Distribution Date in the month immediately following
      the month of the latest scheduled maturity date of any Mortgage Loan and is
      not
      likely to be the date on which the Notional Amount of this Class of Certificates
      will be reduced to zero.

     

    Distributions
      on this Certificate will be made by the Paying Agent by check mailed to the
      address of the Person entitled thereto as such name and address shall appear
      on
      the Certificate Register or, if such Person so requests by notifying the Trustee
      in writing as specified in the Agreement by wire transfer. Notwithstanding
      the
      above, the final distribution on this Certificate will be made after due notice
      by the Paying Agent of the pendency of such distribution and only upon
      presentation and surrender of this Certificate at the office or agency appointed
      by the Trustee for that purpose and designated in such notice. The Initial
      Notional Amount of this Certificate is set forth above. The Notional Amount
      hereof will be reduced to the extent of distributions allocable to principal
      hereon and any Realized Losses allocable hereto.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      set
      forth on the face hereof (the “Certificates”). The Certificates, in the
      aggregate, evidence the entire beneficial ownership interest in the Trust Fund
      formed pursuant to the Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the Trust Fund for payment hereunder and that the Trustee is
      not
      liable to the Certificateholders for any amount payable under this Certificate
      or the Agreement or, except as expressly provided in the Agreement, subject
      to
      any liability under the Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced hereby, and the rights, duties and immunities
      of the Trustee.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Depositor,
      the
      Master Servicer and the Trustee and the rights of the Certificateholders under
      the Agreement from time to time by the parties thereto with the consent of
      the
      Holders of Certificates, evidencing Fractional Undivided Interests aggregating
      not less than 51% of the portion of the Trust Fund related to such Certificates
      (or in certain cases, Holders of Certificates of affected Classes evidencing
      such percentage of the Fractional Undivided Interests thereof). 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 lieu hereof whether or not notation of such
      consent is made upon this Certificate. The Agreement also permits the amendment
      thereof, in certain limited circumstances, without the consent of the Holders
      of
      any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable with the certificate registrar
      upon surrender of this Certificate for registration of transfer at the offices
      or agencies maintained by the Trustee for such purposes, duly endorsed by,
      or
      accompanied by a written instrument of transfer in form satisfactory to the
      Trustee duly executed by the Holder hereof or such Holder’s attorney duly
      authorized in writing, and thereupon one or more new Certificates in authorized
      denominations representing a like aggregate Fractional Undivided Interest will
      be issued to the designated transferee.

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      the
      Classes and denominations specified in the Agreement. As provided in the
      Agreement and subject to certain limitations therein set forth, this Certificate
      is exchangeable for one or more new Certificates evidencing the same Class
      and
      in the same aggregate Fractional Undivided Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made to the Certificateholders for any such registration
      of transfer, but the Trustee may require payment of a sum sufficient to cover
      any tax or other governmental charge payable in connection therewith. The
      Depositor, the Master Servicer, the Trustee and any agent of any of them may
      treat the Person in whose name this Certificate is registered as the owner
      hereof for all purposes, and none of the Depositor, the Master Servicer, the
      Trustee or any such agent shall be affected by notice to the
      contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby (other
      than the obligations to make payments to Certificateholders with respect to
      the
      termination of the Agreement) shall terminate upon the earlier of (i) the later
      of the (A) final payment or other liquidation (or Advance with respect thereto)
      of the last Mortgage Loan remaining in the Trust Fund and (B) disposition of
      all
      property acquired upon foreclosure or deed in lieu of foreclosure of any
      Mortgage Loan and the remittance of all funds due under the Agreement, or (ii)
      the optional repurchase by the party named in the Agreement of all the Mortgage
      Loans and other assets of the Trust Fund in accordance with the terms of the
      Agreement. Such optional repurchase may be made only on or after the
      Distribution Date on which the aggregate unpaid principal balance of the
      Mortgage Loans is less than the percentage of the aggregate Outstanding
      Principal Balance specified in the Agreement of the Mortgage Loans at the
      Cut-off Date. The exercise of such right will effect the early retirement of
      the
      Certificates. In no event, however, will the Trust Fund created by the Agreement
      continue beyond the earlier of (i) the “latest possible maturity date” specified
      in Section 5.01(d) of the Agreement or (ii) the expiration of 21 years after
      the
      death of certain persons identified in the Agreement.

     

    Unless
      this Certificate has been countersigned by an authorized signatory of the
      Trustee by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement, or be valid for any purpose.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    
      
        

        
          	 	
                  U.S.
                    BANK
                    NATIONAL ASSOCIATION, 

                  Not
                    in its individual capacity but solely as Trustee

                	 
	 	 	 	 
	
                  Dated:
                    August
                    31, 2007

                	
                  By:

                	 	 
	 	 	
                  Authorized
                    Signatory

                	 
	 	 	 	 
	 	 	 	 

        

      

      
 

       

      CERTIFICATE
        OF AUTHENTICATION

    

    

    This
      is
      one of the Class [_]-X Certificates referred to in the within-mentioned
      Agreement.

     

    
      
        

        
          	 	
                  U.S.
                    BANK
                    NATIONAL ASSOCIATION, 

                  Authorized
                    signatory of U.S. Bank National Association, not in its individual
                    capacity but solely as Trustee

                	 
	 	 	 	 
	
                   

                	
                  By:

                	 	 
	 	 	
                  Authorized
                    Signatory

                	 
	 	 	 	 
	 	 	 	 

        

      

       

    

    
 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    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) a Fractional Undivided Interest evidenced
      by the within Mortgage Pass-Through Certificate and hereby authorizes the
      transfer of registration of such interest to assignee on the Certificate
      Register of the Trust Fund.

     

    I
      (We)
      further direct the Certificate Registrar 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

                	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
                  Signature
                    Guaranteed

                	 

        

        
 

         

      

    

     

    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

     

    MORTGAGE
      LOAN SCHEDULE

     

    
***********************************************************************
Bear Stearns is not responsible for any recommendation, solicitation, offer or
agreement or any information about any transaction, customer account or account
activity contained in this communication.
***********************************************************************

LOAN_SEQ             ZIP_CODE           STATE         CITY1                                        PROPTYPE
---------------------------------------------------------------------------------------------------------------------------
       17256879              32817      FL            Orlando                                      Single Family
       17264126               6611      CT            Trumball                                     Single Family
       17325358              92154      CA            SAN DIEGO                                    Single Family
       17256859              77656      TX            Silsbee                                      Single Family
       17259488              85704      AZ            Tucson                                       Single Family
       17298204              98155      WA            Shoreline                                    Single Family
       17169204              90064      CA            Los Angeles                                  Single Family
       17279835              34747      FL            REUNION                                      PUD
       17279836              30011      GA            AUBURN                                       Single Family
       17279837              89117      NV            LAS VEGAS                                    Single Family
       17279838              98501      WA            OLYMPIA                                      Single Family
       17279839              92807      CA            ANAHEIM                                      Single Family
       17279840              48322      MI            WEST BLOOMFIELD TWP                          Single Family
       17279841              93722      CA            FRESNO                                       Single Family
       17279842              91377      CA            OAK PARK AREA                                PUD
       17279843              22124      VA            OAKTON                                       Single Family
       17279844              11767      NY            NESCONSET                                    Single Family
       17279845              11024      NY            KINGS POINT                                  Single Family
       17279846              90010      CA            LOS ANGELES                                  Hi-Rise Condo
       17279847              89135      NV            LAS VEGAS                                    PUD
       17279848              93314      CA            BAKERSFIELD                                  Single Family
       17279849              33149      FL            KEY BISCAYNE                                 Single Family
       17275039              27927      NC            COROLLA                                      PUD
       17275040              95050      CA            SANTA CLARA                                  Single Family
       17275047               8053      NJ            TOWNSHIP OF EVESHAM                          Single Family
       17275064              32256      FL            JACKSONVILLE                                 PUD
       17275066              75230      TX            DALLAS                                       Single Family
       17275111              36561      AL            ORANGE BEACH                                 Hi-Rise Condo
       17275115              36695      AL            MOBILE                                       Single Family
       17275139              36542      AL            GULF SHORES                                  Single Family
       17152818              92692      CA            Mission Viejo                                PUD
       17298145              92860      CA            Norco                                        Single Family
       17299558              32807      FL            Orlando                                      Condominium
       17299514              74006      OK            Bartlesville                                 Single Family
       17301699              22079      VA            Lorton                                       PUD
       17302231              89521      NV            RENO                                         PUD
       17302239              55421      MN            Columbia Heights                             Single Family
       17301598              18015      PA            LOWER SAUCON TOWNSHIP                        Single Family
       17301606              20186      VA            WARRENTON                                    Single Family
       17301607              33332      FL            FORT LAUDERDALE                              PUD
       17301620              48367      MI            LEONARD                                      Condominium
       17272334               1089      MA            WEST SPRINGFIELD                             Single Family
       17267318              91950      CA            National City                                Single Family
       17265508               6111      CT            Newington                                    Single Family
       17293451              91214      CA            La Crescenta                                 Single Family
       17255930              92807      CA            Anaheim                                      Single Family
       17312146              33014      FL            HIALEAH                                      Single Family
       17326715              55345      MN            Minnetonka                                   Single Family
       17323136              92057      CA            OCEANSIDE                                    PUD
       17325278              98532      WA            Chehalis                                     Single Family
       17325635              55112      MN            Arden Hills                                  Single Family
       17325667              90640      CA            Montebello                                   Single Family
       17325722               2459      MA            NEWTON                                       Condominium
       17325723               1776      MA            SUDBURY                                      Single Family
       17312267              92806      CA            Anaheim                                      PUD
       17322699              95694      CA            Winters                                      Single Family
       17311728              46220      IN            Indianapolis                                 Single Family
       17311826              92010      CA            Carlsbad                                     PUD
       17298836              76180      TX            North Richland Hills                         Single Family
       17299499              75080      TX            Richardson                                   Single Family
       17301733              75034      TX            Frisco                                       PUD
       17302144              80303      CO            Boulder                                      Single Family
       17302214              93291      CA            Visalia                                      Single Family
       17302541              91387      CA            Santa Clarita                                Single Family
       17303766              31405      GA            Savannah                                     Single Family
       17303878              91762      CA            Ontario                                      Single Family
       17297180              30349      GA            College Park                                 Single Family
       17286618              77326      TX            Livingston                                   Single Family
       17214309              90065      CA            LOS  ANGELES                                 Single Family
       17217053              94521      CA            Concord                                      PUD
       17248384              75025      TX            Plano                                        Single Family
       17251383              33020      FL            Hollywood                                    Single Family
       17215989              89141      NV            LAS VEGAS                                    PUD
       17215990              95542      CA            GARBERVILLE                                  Single Family
       17215991              20601      MD            WALDORF                                      PUD
       17215992              33146      FL            CORAL GABLES                                 Single Family
       17215993              31811      GA            HAMILTON                                     Single Family
       17215994              21114      MD            CROFTON                                      PUD
       17215995               6824      CT            FAIRFIELD                                    Single Family
       17215996              91915      CA            CHULA VISTA                                  Single Family
       17215997              10710      NY            YONKERS                                      Single Family
       17215998              94110      CA            SAN FRANCISCO                                2-4 Family
       17215999              94508      CA            ANGWIN                                       Single Family
       17216000              95757      CA            ELK GROVE                                    Single Family
       17216001              20607      MD            ACCOKEEK                                     PUD
       17216002               7407      NJ            ELMWOOD PARK                                 2-4 Family
       17216003              85016      AZ            PHOENIX                                      Condominium
       17216004              28461      NC            SOUTHPORT                                    PUD
       17216005              18964      PA            SOUDERTON                                    Single Family
       17216006              20769      MD            GLENN DALE                                   PUD
       17216008              91915      CA            CHULA VISTA                                  PUD
       17216009              90018      CA            LOS ANGELES                                  2-4 Family
       17216011              98407      WA            TACOMA                                       Single Family
       17216012              32792      FL            WINTER PARK                                  Single Family
       17216013              33156      FL            CORAL GABLES                                 Single Family
       17216014              32541      FL            DESTIN                                       Condominium
       17216015              20723      MD            LAUREL                                       Single Family
       17216017              20002      DC            WASHINGTON                                   Single Family
       17216018              81503      CO            GRAND JUNCTION                               Single Family
       17216019              93033      CA            OXNARD                                       Single Family
       17216020              32174      FL            ORMOND BEACH                                 PUD
       17216021              60625      IL            CHICAGO                                      2-4 Family
       17216022              33437      FL            BOYNTON BEACH                                PUD
       17216023               2332      MA            DUXBURY                                      Single Family
       17216024              20866      MD            BURTONSVILLE                                 Single Family
       17216026              95762      CA            EL DORADO HILLS                              Single Family
       17216027              33130      FL            MIAMI                                        Condominium
       17216028              33178      FL            DORAL                                        PUD
       17216029              93312      CA            BAKERSFIELD                                  PUD
       17216030              90631      CA            LA HABRA                                     Single Family
       17216031              85268      AZ            FOUNTAIN HILLS                               Single Family
       17216033              20841      MD            BOYDS                                        PUD
       17216034              92337      CA            FONTANA                                      Single Family
       17216035              77650      TX            CRYSTAL BEACH                                PUD
       17216038              75077      TX            DOUBLE OAK                                   PUD
       17216039              90046      CA            LOS ANGELES                                  Condominium
       17216040              20639      MD            HUNTINGTOWN                                  Single Family
       17216041              98133      WA            SHORELINE                                    Single Family
       17216042              97045      OR            OREGON CITY                                  Single Family
       17246636              85043      AZ            Phoenix                                      PUD
       17255952              33328      FL            Cooper City                                  PUD
       17215981              60647      IL            CHICAGO                                      Single Family
       17215982              20816      MD            BETHESDA                                     Single Family
       17215983              75022      TX            FLOWER MOUND                                 Single Family
       17215984              89511      NV            RENO                                         Single Family
       17215985              20853      MD            ROCKVILLE                                    PUD
       17215986              92673      CA            SAN CLEMENTE                                 PUD
       17215988              30523      GA            CLARKESVILLE                                 Single Family
       17215977               6853      CT            NORWALK                                      Single Family
       17215978              91436      CA            ENCINO                                       Single Family
       17215979              44012      OH            AVON LAKE                                    Single Family
       17215980              48094      MI            WASHINGTON TWP                               Single Family
       17215962              97140      OR            SHERWOOD                                     Single Family
       17215963              86429      AZ            BULLHEAD CITY                                PUD
       17215967              93510      CA            ACTON                                        Single Family
       17215970               2865      RI            LINCOLN                                      Single Family
       17215971               7039      NJ            LIVINGSTON                                   Condominium
       17215974              33156      FL            MIAMI                                        Single Family
       17215975              22182      VA            VIENNA                                       Single Family
       17215976               7836      NJ            FLANDERS                                     Single Family
       17215955              20774      MD            UPPER MARLBORO                               PUD
       17215960              92399      CA            YUCAIPA                                      Single Family
       17066770              60202      IL            Evanston                                     Single Family
       17301599              92078      CA            SAN MARCOS                                   PUD
       17301600              98052      WA            REDMOND                                      Single Family
       17301601              83647      ID            FEATHERVILLE                                 PUD
       17301602              21163      MD            WOODSTOCK                                    PUD
       17301603              37174      TN            SPRING HILL                                  Single Family
       17301604              89701      NV            CARSON CITY                                  Single Family
       17301605              94552      CA            CASTRO VALLEY                                PUD
       17301608              33556      FL            ODESSA                                       PUD
       17301609              11795      NY            WEST ISLIP                                   Single Family
       17301610               7605      NJ            LEONIA                                       Single Family
       17301611              17225      PA            GREENCASTLE                                  Single Family
       17301612              48301      MI            TOWNSHIP OF BLOOMFIELD                       Single Family
       17301613              10583      NY            SCARSDALE                                    Single Family
       17301614               7208      NJ            ELIZABETH                                    Single Family
       17301615              60565      IL            NAPERVILLE                                   PUD
       17301616              36066      AL            PRATTVILLE                                   Single Family
       17301617              77027      TX            HOUSTON                                      Single Family
       17301618              89705      NV            CARSON CITY                                  Single Family
       17301619              43065      OH            POWELL                                       PUD
       17301621              30175      GA            TALKING ROCK                                 PUD
       17301622               4074      ME            SCARBOROUGH                                  Single Family
       17301624               6890      CT            SOUTHPORT                                    Single Family
       17301625              97401      OR            EUGENE                                       Single Family
       17301626              90033      CA            LOS ANGELES                                  Condominium
       17301627               7931      NJ            FAR HILLS                                    Single Family
       17301628              94555      CA            FREMONT                                      PUD
       17301630              23455      VA            VIRGINIA BEACH                               Single Family
       17301631              10522      NY            DOBBS FERRY                                  Single Family
       17301632              11801      NY            HICKSVILLE                                   Single Family
       17301633               5672      VT            STOWE                                        Single Family
       17301634              17042      PA            LEBANON                                      Single Family
       17301635              94560      CA            NEWARK                                       Single Family
       17301636              10309      NY            STATEN ISLAND                                Single Family
       17301637              33928      FL            ESTERO                                       PUD
       17301638              37774      TN            LOUDON                                       PUD
       17301639              91350      CA            SAUGUS                                       PUD
       17301640              48025      MI            FRANKLIN                                     Single Family
       17301641              91722      CA            COVINA                                       Single Family
       17301642              21629      MD            DENTON                                       Single Family
       17301643              20814      MD            BETHESDA                                     Single Family
       17301644              85205      AZ            MESA                                         Single Family
       17301645               7040      NJ            MAPLEWOOD                                    Single Family
       17301646              33037      FL            KEY LARGO                                    Single Family
       17301647              22192      VA            WOODBRIDGE                                   Single Family
       17301648              30005      GA            ALPHARETTA                                   PUD
       17301649              11105      NY            ASTORIA                                      2-4 Family
       17301650              23669      VA            HAMPTON                                      Single Family
       17301651              92656      CA            ALISO VIEJO                                  PUD
       17301652              95050      CA            SANTA CLARA                                  Single Family
       17301653              20905      MD            SILVER SPRING                                PUD
       17301654               7620      NJ            ALPINE                                       Single Family
       17301655               8816      NJ            EAST BRUNSWICK TOWNSHIP                      Single Family
       17301656               2054      MA            MILLIS                                       Single Family
       17301657              95136      CA            SAN JOSE                                     Single Family
       17301658              33141      FL            MIAMI                                        Single Family
       17301659               1906      MA            SAUGUS                                       Single Family
       17301660               7044      NJ            VERONA                                       Single Family
       17301661               1921      MA            BOXFORD                                      Single Family
       17301662               7401      NJ            ALLENDALE                                    Single Family
       17301663              38017      TN            COLLIERVILLE                                 Single Family
       17301664              10312      NY            STATEN ISLAND                                2-4 Family
       17301665              93534      CA            LANCASTER                                    Single Family
       17301666              91913      CA            CHULA VISTA                                  PUD
       17301667              84092      UT            SANDY                                        Single Family
       17301668              95119      CA            SAN JOSE                                     Single Family
       17301669              11565      NY            MALVERNE                                     Single Family
       17301670              92653      CA            LAGUNA HILLS                                 Single Family
       17301671               3301      NH            CONCORD                                      Single Family
       17301672              48823      MI            EAST LANSING                                 Single Family
       17301673              89052      NV            HENDERSON                                    PUD
       17301674              87043      NM            PLACITAS                                     Single Family
       17301675              21035      MD            DAVIDSONVILLE                                Single Family
       17301676              23114      VA            MIDLOTHIAN                                   PUD
       17301677              94544      CA            HAYWARD                                      Single Family
       17301678              81623      CO            CARBONDALE                                   Single Family
       17301679              97701      OR            BEND                                         PUD
       17301680              98012      WA            MILL CREEK                                   PUD
       17301681              97089      OR            DAMASCUS                                     Single Family
       17301682              60622      IL            CHICAGO                                      PUD
       17301684              60187      IL            WHEATON                                      Single Family
       17301685              22603      VA            WINCHESTER                                   PUD
       17301686              20721      MD            BOWIE                                        PUD
       17301687              92882      CA            CORONA                                       Single Family
       17301688              33155      FL            MIAMI                                        Single Family
       17301689              89138      NV            LAS VEGAS                                    PUD
       17301690              95222      CA            ANGELS CAMP                                  Single Family
       17301691              92067      CA            RANCHO SANTA FE                              PUD
       17301692              22485      VA            KING GEORGE                                  Single Family
       17301693              20003      DC            WASHINGTON                                   Townhouse
       17301694               7920      NJ            BASKING RIDGE                                Single Family
       17255554              85308      AZ            GLENDALE                                     PUD
       17256994              92029      CA            ESCONDIDO                                    PUD
       17265615              90001      CA            LOS ANGELES                                  2-4 Family
       17265616              93065      CA            SIMI VALLEY                                  Single Family
       17265618              93552      CA            Palmdale                                     Single Family
       17272390              97405      OR            Eugene                                       Single Family
       17252917              90712      CA            LAKEWOOD                                     Single Family
       17255498              48315      MI            Shelby Township                              Single Family
       17255501              47403      IN            Bloomington                                  Single Family
       17238727              92691      CA            MISSION VIEJO                                Single Family
       17230234              90045      CA            LOS ANGELES                                  Single Family
       17230245              92802      CA            ANAHEIM                                      Single Family
       17224468              95630      CA            FOLSOM                                       Single Family
       17311639              78703      TX            AUSTIN                                       Single Family
       17311640               7470      NJ            WAYNE                                        Single Family
       17311643              91320      CA            NEWBURY PARK                                 Single Family
       17311644              84010      UT            BOUNTIFUL                                    Single Family
       17311645              10514      NY            CHAPPAQUA                                    Single Family
       17311646              10606      NY            WHITE PLAINS                                 Single Family
       17311647              94609      CA            OAKLAND                                      2-4 Family
       17311648              21012      MD            ARNOLD                                       PUD
       17311649              60043      IL            KENILWORTH                                   Single Family
       17311650               7458      NJ            UPPER SADDLE RIVER                           Single Family
       17311651              91762      CA            ONTARIO                                      Single Family
       17311652              92504      CA            RIVERSIDE                                    Single Family
       17311653              10950      NY            MONROE                                       Single Family
       17311655              33018      FL            HIALEAH GARDENS                              Single Family
       17311656              94558      CA            NAPA                                         Single Family
       17311657              11746      NY            DIX HILLS                                    Single Family
       17311658              10128      NY            NEW YORK                                     CO-OP
       17311659              10017      NY            NEW YORK                                     CO-OP
       17311662              10028      NY            NEW YORK                                     Hi-Rise Condo
       17311663              11743      NY            HUNTINGTON                                   Single Family
       17311664              11776      NY            PORT JEFFERSON STATION                       Single Family
       17311665              10017      NY            NEW YORK                                     CO-OP
       17311666              10038      NY            NEW YORK                                     Hi-Rise Condo
       17311667              10021      NY            NEW YORK                                     Hi-Rise Condo
       17311668               7090      NJ            WESTFIELD                                    Single Family
       17311669              10025      NY            NEW YORK                                     CO-OP
       17311670              10021      NY            NEW YORK                                     CO-OP
       17311671              92571      CA            PERRIS                                       Single Family
       17311673              90056      CA            LOS ANGELES AREA                             Single Family
       17311674              92782      CA            TUSTIN                                       PUD
       17311675              11746      NY            HUNTINGTON STATION                           Single Family
       17311677              91706      CA            BALDWIN PARK                                 Single Family
       17311678              93117      CA            GOLETA                                       Single Family
       17311679              91367      CA            LOS ANGELES                                  Single Family
       17311680              95661      CA            ROSEVILLE                                    PUD
       17311681              91320      CA            AREA OF NEWSBURY PARK                        Single Family
       17311682              93065      CA            SIMI VALLEY                                  Single Family
       17311683              32720      FL            DELAND                                       PUD
       17311684              95148      CA            SAN JOSE                                     Single Family
       17311685              11776      NY            PORT JEFFERSON STATION                       Single Family
       17311686              98604      WA            BATTLE GROUND                                Single Family
       17311687              94941      CA            MILL VALLEY                                  Condominium
       17311688              91780      CA            TEMPLE CITY                                  2-4 Family
       17311689              11791      NY            MUTTONTOWN                                   Single Family
       17311690              92373      CA            REDLANDS                                     Single Family
       17311691              92119      CA            SAN DIEGO                                    Single Family
       17311692              90275      CA            RANCHO PALOS VERDES                          Single Family
       17311693              91789      CA            WALNUT                                       Single Family
       17311694              92591      CA            TEMECULA                                     Single Family
       17311695              95135      CA            SAN JOSE                                     Single Family
       17311696              10594      NY            THORNWOOD                                    Single Family
       17311697              95254      CA            WALLACE                                      Single Family
       17311698              91356      CA            TARZANA                                      Single Family
       17311699              91101      CA            PASADENA                                     Single Family
       17311700              90019      CA            LOS ANGELES                                  Single Family
       17311701              95833      CA            SACRAMENTO                                   Single Family
       17311635              78735      TX            AUSTIN                                       PUD
       17311636              93908      CA            SALINAS                                      PUD
       17311637              94801      CA            RICHMOND                                     Single Family
       17311638               1450      MA            GROTON                                       Single Family
       17255495              48038      MI            Clinton Township                             Single Family
       17256975              93955      CA            SEASIDE                                      Single Family
       17311902              48220      MI            FERNDALE                                     Single Family
       17311903              45069      OH            WEST CHESTER                                 Single Family
       17311905              43214      OH            COLUMBUS                                     Single Family
       17311910              21204      MD            BALTIMORE                                    Single Family
       17322785              90035      CA            LOS ANGELES                                  Single Family
       17153067              29928      SC            Hilton Head Island                           PUD
       17230237              92562      CA            MURRIETA                                     Single Family
       17304293              55130      MN            St Paul                                      Single Family
       17304303              92129      CA            San Diego                                    Single Family
       17312237              85331      AZ            Cave Creek                                   PUD
       17303541              92010      CA            Carlsbad                                     Condominium
       17278974               6033      CT            Glastonbury                                  Single Family
       17279607              92860      CA            Norco                                        Single Family
       17279642              78634      TX            Hutto                                        PUD
       17279645               8080      NJ            Sewell                                       Single Family
       17280101              86323      AZ            Chino Valley                                 Single Family
       17280056              30281      GA            Stockbridge                                  Single Family
       17286603              86409      AZ            Kingman                                      Single Family
       17293515              33547      FL            Lithia                                       Single Family
       17293467              76021      TX            Bedford                                      Single Family
       17295283              78212      TX            Olmos Park                                   Single Family
       17295296              97206      OR            Portland                                     Single Family
       17297220              91316      CA            Encino                                       Single Family
       17272301              20748      MD            Temple Hills                                 Condominium
       17274240              11557      NY            Hewlett                                      Single Family
       17274244              23434      VA            Suffolk                                      Single Family
       17274322              78046      TX            Laredo                                       PUD
       17274327              90201      CA            Cudahy                                       Single Family
       17265797              33023      FL            Pembroke Pines                               Single Family
       17255945              80108      CO            Castle Rock                                  Single Family
       17264110              94530      CA            El Cerrito                                   Townhouse
       17128540              11598      NY            WOODMERE                                     Single Family
       17051919              93110      CA            Santa Barbara                                PUD
       17175596              60068      IL            Park Ridge                                   Single Family
       17182068              60304      IL            Oak Park                                     Single Family
       17275050              33496      FL            BOCA RATON                                   PUD
       17275051              33133      FL            MIAMI                                        Hi-Rise Condo
       17275052              92625      CA            NEWPORT BEACH                                PUD
       17275053              91011      CA            LA CANADA                                    Single Family
       17275054              90210      CA            BEVERLY HILLS                                Single Family
       17275055              11746      NY            DIX HILLS                                    Single Family
       17275056              23059      VA            GLEN ALLEN                                   Single Family
       17275057              48324      MI            WEST BLOOMFIELD                              Single Family
       17275058              95864      CA            SACRAMENTO                                   Single Family
       17275059              85307      AZ            GLENDALE                                     Single Family
       17275060              49640      MI            HONOR                                        Single Family
       17275061              92506      CA            RIVERSIDE                                    Single Family
       17275062              11201      NY            BROOKLYN                                     Hi-Rise Condo
       17275063              33323      FL            SUNRISE                                      Condominium
       17275065               2467      MA            BROOKLINE                                    Single Family
       17275067              10018      NY            NEW YORK                                     CO-OP
       17275068              75225      TX            DALLAS                                       Single Family
       17275070              94301      CA            PALO ALTO                                    2-4 Family
       17275071              53095      WI            TRENTON                                      Single Family
       17275072              11746      NY            DIX HILLS                                    Single Family
       17275073              96815      HI            HONOLULU                                     Single Family
       17275074              28445      NC            TOPSAIL BEACH                                Single Family
       17275075              85927      AZ            GREER                                        Single Family
       17275076               6906      CT            STAMFORD                                     Single Family
       17275077              95409      CA            SANTA ROSA                                   PUD
       17275078              92660      CA            NEWPORT BEACH                                Single Family
       17275079              20854      MD            POTOMAC                                      Single Family
       17275080              92675      CA            SAN JUAN CAPISTR                             PUD
       17275082              10547      NY            MOHEGAN LAKE                                 Single Family
       17275083              56472      MN            PEQUOT LAKES                                 Single Family
       17275084              19002      PA            LOWER GWYNEDD                                Single Family
       17275085               8540      NJ            BOROUGH OF PRINCETON                         Single Family
       17275086              89135      NV            LAS VEGAS                                    PUD
       17275087              21146      MD            SEVERNA PARK                                 Single Family
       17275088              89109      NV            LAS VEGAS                                    Hi-Rise Condo
       17275089              11733      NY            SETAUKET                                     Single Family
       17275090              90706      CA            BELLFLOWER                                   Single Family
       17275091              10012      NY            NEW YORK                                     Hi-Rise Condo
       17275092              33467      FL            WELLINGTON                                   PUD
       17275093              94513      CA            BRENTWOOD                                    Single Family
       17275094              11361      NY            BAYSIDE                                      2-4 Family
       17275095              91354      CA            VALENCIA                                     PUD
       17275096              92887      CA            YORBA LINDA                                  Single Family
       17275097              92807      CA            ANAHEIM                                      Single Family
       17275098              84604      UT            SUNDANCE                                     Single Family
       17275099              90505      CA            TORRANCE                                     Single Family
       17275100              30338      GA            DUNWOODY                                     Single Family
       17275101               1262      MA            STOCKBRIDGE                                  Single Family
       17275102              95014      CA            CUPERTINO                                    Single Family
       17275103              95228      CA            COPPEROPOLIS                                 PUD
       17275104              95762      CA            EL DORADO HILLS                              PUD
       17275105              85021      AZ            PHOENIX                                      Single Family
       17275106              23120      VA            MOSELEY                                      PUD
       17275107              75070      TX            MCKINNEY                                     PUD
       17275108              60045      IL            LAKE FOREST                                  Single Family
       17275109              91203      CA            GLENDALE                                     Single Family
       17275110               8820      NJ            EDISON                                       Single Family
       17275112              91773      CA            SAN DIMAS                                    Single Family
       17275113              92014      CA            SAN DIEGO                                    Single Family
       17275114              33140      FL            MIAMI BEACH                                  PUD
       17275116              90043      CA            LOS ANGELES                                  Single Family
       17275117              92210      CA            INDIAN WELLS                                 PUD
       17275118              11224      NY            BROOKLYN                                     Single Family
       17275119              94122      CA            SAN FRANCISCO                                Single Family
       17275120              11355      NY            FLUSHING                                     2-4 Family
       17275121              17050      PA            MECHANICSBURG                                Single Family
       17275122               8043      NJ            TOWNSHIP OF VOORHEES                         Single Family
       17275123              85757      AZ            TUCSON                                       Single Family
       17275124              29482      SC            SULLIVANS ISLAND                             Single Family
       17275125              28741      NC            HIGHLANDS                                    Single Family
       17275126              92705      CA            SANTA ANA                                    Single Family
       17275127              38103      TN            MEMPHIS                                      Hi-Rise Condo
       17275128              85340      AZ            LITCHFIELD PARK                              PUD
       17275129              91730      CA            RANCHO CUCAMONGA                             Single Family
       17275130              80301      CO            BOULDER                                      Single Family
       17275131              91755      CA            MONTEREY PARK                                Single Family
       17275132              90740      CA            SEAL BEACH                                   Single Family
       17275134              89103      NV            LAS VEGAS                                    Hi-Rise Condo
       17275135              96753      HI            KIHEI                                        Single Family
       17275136              95503      CA            EUREKA                                       Single Family
       17275137              91387      CA            CANYON COUNTRY                               Single Family
       17275138              92833      CA            FULLERTON                                    Single Family
       17275140              11968      NY            SOUTHAMPTON                                  Single Family
       17275141              32118      FL            DAYTONA BEACH                                Single Family
       17275142               8853      NJ            BRANCHBURG                                   Single Family
       17275143              10309      NY            STATEN ISLAND                                2-4 Family
       17275144              98199      WA            SEATTLE                                      Single Family
       17275145              60062      IL            NORTHBROOK                                   Single Family
       17275146              92882      CA            CORONA                                       Single Family
       17275147              59911      MT            BIGFORK                                      Single Family
       17275148              91739      CA            RANCHO CUCAMONGA                             Single Family
       17275149              44012      OH            AVON LAKE                                    Single Family
       17275150              33155      FL            MIAMI                                        Single Family
       17275151              23059      VA            GLEN ALLEN                                   PUD
       17275152              89074      NV            HENDERSON                                    PUD
       17275153              33143      FL            MIAMI                                        Single Family
       17275154              33154      FL            BAY HARBOR ISLANDS                           Single Family
       17275155               7030      NJ            HOBOKEN                                      Hi-Rise Condo
       17275156              90027      CA            LOS ANGELES                                  Single Family
       17275036              19460      PA            PHOENIXVILLE                                 PUD
       17275037              90010      CA            LOS ANGELES                                  Hi-Rise Condo
       17275038              90010      CA            LOS ANGELES                                  Hi-Rise Condo
       17275041              30102      GA            ACWORTH                                      Single Family
       17275042              96734      HI            KAILUA                                       Single Family
       17275043               7417      NJ            FRANKLIN LAKES                               Single Family
       17275044              94610      CA            PIEDMONT                                     Single Family
       17275045              93430      CA            CAYUCOS                                      Single Family
       17275046              55331      MN            SHOREWOOD                                    Single Family
       17275049              21903      MD            PERRYVILLE                                   Single Family
       17275157              90262      CA            LYNWOOD                                      Single Family
       17275158              19382      PA            WEST CHESTER                                 Single Family
       17275159              77479      TX            SUGAR LAND                                   PUD
       17275160              95835      CA            SACRAMENTO                                   PUD
       17275161               7760      NJ            MIDDLETOWN TOWNS                             Single Family
       17275162              59860      MT            POLSON                                       Single Family
       17275163              98607      WA            CAMAS                                        Single Family
       17275164              91387      CA            CANYON COUNTRY                               Single Family
       17275165              93711      CA            FRESNO                                       Single Family
       17275167              90605      CA            WHITTIER                                     Single Family
       17275168              94115      CA            SAN FRANCISCO                                Hi-Rise Condo
       17275169              30068      GA            MARIETTA                                     Single Family
       17275170               2864      RI            CUMBERLAND                                   Single Family
       17275171               7930      NJ            CHESTER                                      Single Family
       17275172              98020      WA            EDMONDS                                      Condominium
       17275173              98117      WA            SEATTLE                                      2-4 Family
       17275174              92118      CA            CORONADO                                     PUD
       17275175              77055      TX            HOUSTON                                      PUD
       17275176              11780      NY            SAINT JAMES                                  Single Family
       17275177              90049      CA            LOS ANGELES                                  Condominium
       17275178              33931      FL            FORT MYERS BEACH                             Single Family
       17275179              90265      CA            MALIBU                                       Single Family
       17275180              48304      MI            BLOOMFIELD HILLS                             Single Family
       17311630              93035      CA            OXNARD                                       Single Family
       17311631              85323      AZ            AVONDALE                                     Single Family
       17311632              98077      WA            WOODINVILLE                                  Single Family
       17311633              91301      CA            AGOURA HILLS                                 Single Family
       17311634              91733      CA            EL MONTE                                     Single Family

LOAN_SEQ             CURRENT_                    SERV_FEE            LPMI        TR_FEE         CURRENT_
                     GROSS_COUPON                                                               NET_COUPON
-------------------------------------------------------------------------------------------------------------------
       17256879                       6.875                0.25           0         0.0145                  6.6105
       17264126                       6.125                0.25           0         0.0145                  5.8605
       17325358                       6.875                0.25           0         0.0145                  6.6105
       17256859                        6.25                0.25           0         0.0145                  5.9855
       17259488                       5.875                0.25           0         0.0145                  5.6105
       17298204                       6.875                0.25           0         0.0145                  6.6105
       17169204                       6.125                0.25           0         0.0145                  5.8605
       17279835                       6.375                 0.2           0         0.0145                  6.1605
       17279836                       6.125                 0.2           0         0.0145                  5.9105
       17279837                        6.25                 0.2           0         0.0145                  6.0355
       17279838                        6.25                 0.2           0         0.0145                  6.0355
       17279839                       5.875                 0.2           0         0.0145                  5.6605
       17279840                       6.375                 0.2           0         0.0145                  6.1605
       17279841                           6                 0.2           0         0.0145                  5.7855
       17279842                       6.125                 0.2           0         0.0145                  5.9105
       17279843                       5.875                 0.2           0         0.0145                  5.6605
       17279844                        6.75                 0.2           0         0.0145                  6.5355
       17279845                         5.5                 0.2           0         0.0145                  5.2855
       17279846                        6.25                 0.2           0         0.0145                  6.0355
       17279847                           6                 0.2           0         0.0145                  5.7855
       17279848                           6                 0.2           0         0.0145                  5.7855
       17279849                        6.25                 0.2           0         0.0145                  6.0355
       17275039                           6                 0.2           0         0.0145                  5.7855
       17275040                       6.375                 0.2           0         0.0145                  6.1605
       17275047                       6.375                 0.2           0         0.0145                  6.1605
       17275064                        6.25                 0.2           0         0.0145                  6.0355
       17275066                         6.5                 0.2           0         0.0145                  6.2855
       17275111                        6.25                 0.2           0         0.0145                  6.0355
       17275115                       5.625                 0.2           0         0.0145                  5.4105
       17275139                       6.125                 0.2           0         0.0145                  5.9105
       17152818                       6.375                0.25           0         0.0145                  6.1105
       17298145                       6.375                0.25           0         0.0145                  6.1105
       17299558                        7.25                0.25           0         0.0145                  6.9855
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       17302231                        6.75                0.25           0         0.0145                  6.4855
       17302239                       6.875                0.25           0         0.0145                  6.6105
       17301598                       5.625                0.25           0         0.0145                  5.3605
       17301606                       6.875                0.25           0         0.0145                  6.6105
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       17301620                        6.75                0.25           0         0.0145                  6.4855
       17272334                           7                0.25           0         0.0145                  6.7355
       17267318                       6.375                0.25           0         0.0145                  6.1105
       17265508                       6.375                0.25           0         0.0145                  6.1105
       17293451                       6.625                0.25           0         0.0145                  6.3605
       17255930                        6.75                0.25           0         0.0145                  6.4855
       17312146                        7.25                0.25           0         0.0145                  6.9855
       17326715                       6.875                0.25           0         0.0145                  6.6105
       17323136                        6.75                0.25           0         0.0145                  6.4855
       17325278                       6.875                0.25           0         0.0145                  6.6105
       17325635                        6.75                0.25           0         0.0145                  6.4855
       17325667                        7.25                0.25           0         0.0145                  6.9855
       17325722                       6.375                0.25           0         0.0145                  6.1105
       17325723                       6.375                0.25           0         0.0145                  6.1105
       17312267                         6.5                0.25           0         0.0145                  6.2355
       17322699                       6.875                0.25           0         0.0145                  6.6105
       17311728                         6.5                0.25           0         0.0145                  6.2355
       17311826                           7                0.25           0         0.0145                  6.7355
       17298836                       6.875                0.25           0         0.0145                  6.6105
       17299499                       6.625                0.25           0         0.0145                  6.3605
       17301733                        6.25                0.25           0         0.0145                  5.9855
       17302144                           7                0.25           0         0.0145                  6.7355
       17302214                        6.75                0.25           0         0.0145                  6.4855
       17302541                        7.25                0.25           0         0.0145                  6.9855
       17303766                        6.75                0.25           0         0.0145                  6.4855
       17303878                           6                0.25           0         0.0145                  5.7355
       17297180                         6.5                0.25           0         0.0145                  6.2355
       17286618                       6.625                0.25           0         0.0145                  6.3605
       17214309                           6                0.25           0         0.0145                  5.7355
       17217053                        6.75                0.25           0         0.0145                  6.4855
       17248384                         6.5                0.25           0         0.0145                  6.2355
       17251383                        6.75                0.25           0         0.0145                  6.4855
       17215989                         6.5                0.25           0         0.0145                  6.2355
       17215990                        6.25                0.25           0         0.0145                  5.9855
       17215991                        6.75                0.25           0         0.0145                  6.4855
       17215992                       7.125                0.25           0         0.0145                  6.8605
       17215993                       6.875                0.25           0         0.0145                  6.6105
       17215994                           6                0.25           0         0.0145                  5.7355
       17215995                        6.75                0.25           0         0.0145                  6.4855
       17215996                       6.625                0.25           0         0.0145                  6.3605
       17215997                       6.375                0.25           0         0.0145                  6.1105
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       17216000                         6.5                0.25           0         0.0145                  6.2355
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       17216003                       7.375                0.25           0         0.0145                  7.1105
       17216004                       7.125                0.25           0         0.0145                  6.8605
       17216005                       6.875                0.25           0         0.0145                  6.6105
       17216006                        6.25                0.25           0         0.0145                  5.9855
       17216008                       5.875                0.25           0         0.0145                  5.6105
       17216009                         6.5                0.25           0         0.0145                  6.2355
       17216011                       6.625                0.25           0         0.0145                  6.3605
       17216012                       6.625                0.25           0         0.0145                  6.3605
       17216013                       6.875                0.25           0         0.0145                  6.6105
       17216014                       6.875                0.25           0         0.0145                  6.6105
       17216015                       6.375                0.25           0         0.0145                  6.1105
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       17216018                       6.875                0.25           0         0.0145                  6.6105
       17216019                       6.875                0.25           0         0.0145                  6.6105
       17216020                       6.375                0.25           0         0.0145                  6.1105
       17216021                       6.875                0.25           0         0.0145                  6.6105
       17216022                         7.5                0.25           0         0.0145                  7.2355
       17216023                       7.125                0.25           0         0.0145                  6.8605
       17216024                       6.375                0.25           0         0.0145                  6.1105
       17216026                       6.375                0.25           0         0.0145                  6.1105
       17216027                        6.75                0.25           0         0.0145                  6.4855
       17216028                       6.625                0.25           0         0.0145                  6.3605
       17216029                        7.25                0.25           0         0.0145                  6.9855
       17216030                       6.375                0.25           0         0.0145                  6.1105
       17216031                         6.5                0.25           0         0.0145                  6.2355
       17216033                         6.5                0.25           0         0.0145                  6.2355
       17216034                        6.75                0.25           0         0.0145                  6.4855
       17216035                       6.875                0.25           0         0.0145                  6.6105
       17216038                         6.5                0.25           0         0.0145                  6.2355
       17216039                         7.5                0.25           0         0.0145                  7.2355
       17216040                       6.625                0.25           0         0.0145                  6.3605
       17216041                        6.75                0.25           0         0.0145                  6.4855
       17216042                       6.375                0.25           0         0.0145                  6.1105
       17246636                       6.625                0.25           0         0.0145                  6.3605
       17255952                       6.875                0.25           0         0.0145                  6.6105
       17215981                        6.25                0.25           0         0.0145                  5.9855
       17215982                       6.125                0.25           0         0.0145                  5.8605
       17215983                           7                0.25           0         0.0145                  6.7355
       17215984                       6.375                0.25           0         0.0145                  6.1105
       17215985                       6.875                0.25           0         0.0145                  6.6105
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       17215988                        6.75                0.25           0         0.0145                  6.4855
       17215977                       6.125                0.25           0         0.0145                  5.8605
       17215978                       6.375                0.25           0         0.0145                  6.1105
       17215979                        6.75                0.25           0         0.0145                  6.4855
       17215980                       6.875                0.25           0         0.0145                  6.6105
       17215962                        6.75                0.25           0         0.0145                  6.4855
       17215963                       7.375                0.25           0         0.0145                  7.1105
       17215967                       7.875                0.25           0         0.0145                  7.6105
       17215970                       6.875                0.25           0         0.0145                  6.6105
       17215971                       7.875                0.25           0         0.0145                  7.6105
       17215974                        6.75                0.25           0         0.0145                  6.4855
       17215975                         6.5                0.25           0         0.0145                  6.2355
       17215976                       7.625                0.25           0         0.0145                  7.3605
       17215955                         6.5                0.25           0         0.0145                  6.2355
       17215960                        6.25                0.25           0         0.0145                  5.9855
       17066770                       6.625                0.25           0         0.0145                  6.3605
       17301599                         6.5                0.25           0         0.0145                  6.2355
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       17301601                       6.375                0.25           0         0.0145                  6.1105
       17301602                        5.75                0.25           0         0.0145                  5.4855
       17301603                           6                0.25           0         0.0145                  5.7355
       17301604                       6.375                0.25           0         0.0145                  6.1105
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       17301608                        6.25                0.25           0         0.0145                  5.9855
       17301609                        6.25                0.25           0         0.0145                  5.9855
       17301610                         6.5                0.25           0         0.0145                  6.2355
       17301611                           6                0.25           0         0.0145                  5.7355
       17301612                           6                0.25           0         0.0145                  5.7355
       17301613                       6.375                0.25           0         0.0145                  6.1105
       17301614                       5.625                0.25           0         0.0145                  5.3605
       17301615                        5.75                0.25           0         0.0145                  5.4855
       17301616                        6.75                0.25           0         0.0145                  6.4855
       17301617                       6.375                0.25           0         0.0145                  6.1105
       17301618                         6.5                0.25           0         0.0145                  6.2355
       17301619                        6.75                0.25           0         0.0145                  6.4855
       17301621                       6.375                0.25           0         0.0145                  6.1105
       17301622                         6.5                0.25           0         0.0145                  6.2355
       17301624                        6.25                0.25           0         0.0145                  5.9855
       17301625                       6.375                0.25           0         0.0145                  6.1105
       17301626                         6.5                0.25           0         0.0145                  6.2355
       17301627                       6.375                0.25           0         0.0145                  6.1105
       17301628                       6.375                0.25           0         0.0145                  6.1105
       17301630                         6.5                0.25           0         0.0145                  6.2355
       17301631                         6.5                0.25           0         0.0145                  6.2355
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       17301633                       6.875                0.25           0         0.0145                  6.6105
       17301634                         6.5                0.25           0         0.0145                  6.2355
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       17301636                       5.875                0.25           0         0.0145                  5.6105
       17301637                       6.875                0.25           0         0.0145                  6.6105
       17301638                        6.25                0.25           0         0.0145                  5.9855
       17301639                        6.75                0.25           0         0.0145                  6.4855
       17301640                        6.75                0.25           0         0.0145                  6.4855
       17301641                        6.25                0.25           0         0.0145                  5.9855
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       17301644                       6.375                0.25           0         0.0145                  6.1105
       17301645                           6                0.25           0         0.0145                  5.7355
       17301646                       6.625                0.25           0         0.0145                  6.3605
       17301647                        6.25                0.25           0         0.0145                  5.9855
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       17301650                        6.25                0.25           0         0.0145                  5.9855
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       17301652                       6.875                0.25           0         0.0145                  6.6105
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       17301662                        6.75                0.25           0         0.0145                  6.4855
       17301663                       6.875                0.25           0         0.0145                  6.6105
       17301664                        6.25                0.25           0         0.0145                  5.9855
       17301665                           7                0.25           0         0.0145                  6.7355
       17301666                        5.75                0.25           0         0.0145                  5.4855
       17301667                         6.5                0.25           0         0.0145                  6.2355
       17301668                       6.625                0.25           0         0.0145                  6.3605
       17301669                       6.375                0.25           0         0.0145                  6.1105
       17301670                        6.75                0.25           0         0.0145                  6.4855
       17301671                        5.75                0.25           0         0.0145                  5.4855
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       17301673                       6.375                0.25           0         0.0145                  6.1105
       17301674                       6.375                0.25           0         0.0145                  6.1105
       17301675                         6.5                0.25           0         0.0145                  6.2355
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       17301682                         6.5                0.25           0         0.0145                  6.2355
       17301684                           6                0.25           0         0.0145                  5.7355
       17301685                       6.375                0.25           0         0.0145                  6.1105
       17301686                        6.75                0.25           0         0.0145                  6.4855
       17301687                       6.875                0.25           0         0.0145                  6.6105
       17301688                        7.25                0.25           0         0.0145                  6.9855
       17301689                        6.75                0.25           0         0.0145                  6.4855
       17301690                       6.875                0.25           0         0.0145                  6.6105
       17301691                        5.75                0.25           0         0.0145                  5.4855
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       17265616                         6.5                0.25           0         0.0145                  6.2355
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       17272390                       6.875                0.25           0         0.0145                  6.6105
       17252917                         6.5                0.25           0         0.0145                  6.2355
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       17238727                        6.25                0.25           0         0.0145                  5.9855
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       17311650                        6.75                0.25           0         0.0145                  6.4855
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       17311663                        6.25                0.25           0         0.0145                  5.9855
       17311664                        6.75                0.25           0         0.0145                  6.4855
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       17311667                         6.5                0.25           0         0.0145                  6.2355
       17311668                        6.75                0.25           0         0.0145                  6.4855
       17311669                         6.5                0.25           0         0.0145                  6.2355
       17311670                         6.5                0.25           0         0.0145                  6.2355
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       17311673                       6.875                0.25           0         0.0145                  6.6105
       17311674                       7.375                0.25           0         0.0145                  7.1105
       17311675                        6.75                0.25           0         0.0145                  6.4855
       17311677                       6.625                0.25           0         0.0145                  6.3605
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       17311682                       6.875                0.25           0         0.0145                  6.6105
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       17311684                        6.75                0.25           0         0.0145                  6.4855
       17311685                       6.875                0.25           0         0.0145                  6.6105
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       17311688                       7.375                0.25           0         0.0145                  7.1105
       17311689                        6.75                0.25           0         0.0145                  6.4855
       17311690                       6.875                0.25           0         0.0145                  6.6105
       17311691                        6.25                0.25           0         0.0145                  5.9855
       17311692                           7                0.25           0         0.0145                  6.7355
       17311693                       6.875                0.25           0         0.0145                  6.6105
       17311694                       6.875                0.25           0         0.0145                  6.6105
       17311695                         6.5                0.25           0         0.0145                  6.2355
       17311696                        6.75                0.25           0         0.0145                  6.4855
       17311697                        7.25                0.25           0         0.0145                  6.9855
       17311698                        6.75                0.25           0         0.0145                  6.4855
       17311699                       6.875                0.25           0         0.0145                  6.6105
       17311700                        6.75                0.25           0         0.0145                  6.4855
       17311701                        7.25                0.25           0         0.0145                  6.9855
       17311635                       6.625                0.25           0         0.0145                  6.3605
       17311636                       6.875                0.25           0         0.0145                  6.6105
       17311637                        6.75                0.25           0         0.0145                  6.4855
       17311638                         6.5                0.25           0         0.0145                  6.2355
       17255495                        6.25                0.25           0         0.0145                  5.9855
       17256975                       6.375                0.25           0         0.0145                  6.1105
       17311902                        6.75                0.25           0         0.0145                  6.4855
       17311903                           7                0.25           0         0.0145                  6.7355
       17311905                       6.125                0.25           0         0.0145                  5.8605
       17311910                        6.25                0.25           0         0.0145                  5.9855
       17322785                         6.5                0.25           0         0.0145                  6.2355
       17153067                       6.375                0.25           0         0.0145                  6.1105
       17230237                         6.5                0.25           0         0.0145                  6.2355
       17304293                        6.75                0.25           0         0.0145                  6.4855
       17304303                        6.75                0.25           0         0.0145                  6.4855
       17312237                       6.875                0.25           0         0.0145                  6.6105
       17303541                         6.5                0.25           0         0.0145                  6.2355
       17278974                        6.75                0.25           0         0.0145                  6.4855
       17279607                       6.625                0.25           0         0.0145                  6.3605
       17279642                        7.25                0.25           0         0.0145                  6.9855
       17279645                       6.625                0.25           0         0.0145                  6.3605
       17280101                         7.5                0.25           0         0.0145                  7.2355
       17280056                         6.5                0.25           0         0.0145                  6.2355
       17286603                       6.875                0.25           0         0.0145                  6.6105
       17293515                        6.75                0.25           0         0.0145                  6.4855
       17293467                         6.5                0.25           0         0.0145                  6.2355
       17295283                        6.75                0.25           0         0.0145                  6.4855
       17295296                       6.875                0.25           0         0.0145                  6.6105
       17297220                        6.75                0.25           0         0.0145                  6.4855
       17272301                       6.375                0.25           0         0.0145                  6.1105
       17274240                        6.25                0.25           0         0.0145                  5.9855
       17274244                       6.375                0.25           0         0.0145                  6.1105
       17274322                         7.5                0.25           0         0.0145                  7.2355
       17274327                         6.5                0.25           0         0.0145                  6.2355
       17265797                         6.5                0.25           0         0.0145                  6.2355
       17255945                         6.5                0.25           0         0.0145                  6.2355
       17264110                         6.5                0.25           0         0.0145                  6.2355
       17128540                           6                0.25           0         0.0145                  5.7355
       17051919                           6                0.25           0         0.0145                  5.7355
       17175596                         6.5                0.25           0         0.0145                  6.2355
       17182068                        6.75                0.25           0         0.0145                  6.4855
       17275050                       6.875                 0.2           0         0.0145                  6.6605
       17275051                        6.25                 0.2           0         0.0145                  6.0355
       17275052                           6                 0.2           0         0.0145                  5.7855
       17275053                       5.875                 0.2           0         0.0145                  5.6605
       17275054                       6.125                 0.2           0         0.0145                  5.9105
       17275055                           6                 0.2           0         0.0145                  5.7855
       17275056                           6                 0.2           0         0.0145                  5.7855
       17275057                       6.125                 0.2           0         0.0145                  5.9105
       17275058                       6.375                 0.2           0         0.0145                  6.1605
       17275059                         6.5                 0.2           0         0.0145                  6.2855
       17275060                           6                 0.2           0         0.0145                  5.7855
       17275061                       6.875                 0.2           0         0.0145                  6.6605
       17275062                       5.875                 0.2           0         0.0145                  5.6605
       17275063                        6.25                 0.2           0         0.0145                  6.0355
       17275065                       6.125                 0.2           0         0.0145                  5.9105
       17275067                       6.125                 0.2           0         0.0145                  5.9105
       17275068                       6.125                 0.2           0         0.0145                  5.9105
       17275070                           6                 0.2           0         0.0145                  5.7855
       17275071                       6.125                 0.2           0         0.0145                  5.9105
       17275072                       6.375                 0.2           0         0.0145                  6.1605
       17275073                           6                 0.2           0         0.0145                  5.7855
       17275074                        5.75                 0.2           0         0.0145                  5.5355
       17275075                       6.375                 0.2           0         0.0145                  6.1605
       17275076                       6.125                 0.2           0         0.0145                  5.9105
       17275077                        5.75                 0.2           0         0.0145                  5.5355
       17275078                         6.5                 0.2           0         0.0145                  6.2855
       17275079                        6.25                 0.2           0         0.0145                  6.0355
       17275080                       6.375                 0.2           0         0.0145                  6.1605
       17275082                         5.5                 0.2           0         0.0145                  5.2855
       17275083                           6                 0.2           0         0.0145                  5.7855
       17275084                           6                 0.2           0         0.0145                  5.7855
       17275085                           6                 0.2           0         0.0145                  5.7855
       17275086                       6.125                 0.2           0         0.0145                  5.9105
       17275087                       5.875                 0.2           0         0.0145                  5.6605
       17275088                       5.875                 0.2           0         0.0145                  5.6605
       17275089                        6.75                 0.2           0         0.0145                  6.5355
       17275090                       6.375                 0.2           0         0.0145                  6.1605
       17275091                           6                 0.2           0         0.0145                  5.7855
       17275092                           6                 0.2           0         0.0145                  5.7855
       17275093                        6.75                 0.2           0         0.0145                  6.5355
       17275094                        6.25                 0.2           0         0.0145                  6.0355
       17275095                        6.25                 0.2           0         0.0145                  6.0355
       17275096                       6.125                 0.2           0         0.0145                  5.9105
       17275097                       5.875                 0.2           0         0.0145                  5.6605
       17275098                       6.125                 0.2           0         0.0145                  5.9105
       17275099                       5.875                 0.2           0         0.0145                  5.6605
       17275100                       5.875                 0.2           0         0.0145                  5.6605
       17275101                           7                 0.2           0         0.0145                  6.7855
       17275102                           6                 0.2           0         0.0145                  5.7855
       17275103                        6.25                 0.2           0         0.0145                  6.0355
       17275104                       5.875                 0.2           0         0.0145                  5.6605
       17275105                       6.625                 0.2           0         0.0145                  6.4105
       17275106                           6                 0.2           0         0.0145                  5.7855
       17275107                       5.875                 0.2           0         0.0145                  5.6605
       17275108                       5.875                 0.2           0         0.0145                  5.6605
       17275109                           6                 0.2           0         0.0145                  5.7855
       17275110                        5.75                 0.2           0         0.0145                  5.5355
       17275112                         6.5                 0.2           0         0.0145                  6.2855
       17275113                       6.375                 0.2           0         0.0145                  6.1605
       17275114                        6.75                 0.2           0         0.0145                  6.5355
       17275116                        6.25                 0.2           0         0.0145                  6.0355
       17275117                           6                 0.2           0         0.0145                  5.7855
       17275118                       6.375                 0.2           0         0.0145                  6.1605
       17275119                        6.25                 0.2           0         0.0145                  6.0355
       17275120                        6.75                 0.2           0         0.0145                  6.5355
       17275121                       5.375                 0.2           0         0.0145                  5.1605
       17275122                       6.125                 0.2           0         0.0145                  5.9105
       17275123                       5.875                 0.2           0         0.0145                  5.6605
       17275124                       5.875                 0.2           0         0.0145                  5.6605
       17275125                        5.75                 0.2           0         0.0145                  5.5355
       17275126                       6.375                 0.2           0         0.0145                  6.1605
       17275127                       5.875                 0.2           0         0.0145                  5.6605
       17275128                       6.375                 0.2           0         0.0145                  6.1605
       17275129                        6.25                 0.2           0         0.0145                  6.0355
       17275130                       5.875                 0.2           0         0.0145                  5.6605
       17275131                       5.875                 0.2           0         0.0145                  5.6605
       17275132                        5.75                 0.2           0         0.0145                  5.5355
       17275134                       6.375                 0.2           0         0.0145                  6.1605
       17275135                       5.875                 0.2           0         0.0145                  5.6605
       17275136                       5.875                 0.2           0         0.0145                  5.6605
       17275137                        5.75                 0.2           0         0.0145                  5.5355
       17275138                           6                 0.2           0         0.0145                  5.7855
       17275140                         6.5                 0.2           0         0.0145                  6.2855
       17275141                       5.875                 0.2           0         0.0145                  5.6605
       17275142                       6.375                 0.2           0         0.0145                  6.1605
       17275143                       6.125                 0.2           0         0.0145                  5.9105
       17275144                        6.75                 0.2           0         0.0145                  6.5355
       17275145                       6.125                 0.2           0         0.0145                  5.9105
       17275146                           6                 0.2           0         0.0145                  5.7855
       17275147                           6                 0.2           0         0.0145                  5.7855
       17275148                        6.25                 0.2           0         0.0145                  6.0355
       17275149                       6.375                 0.2           0         0.0145                  6.1605
       17275150                       5.875                 0.2           0         0.0145                  5.6605
       17275151                         6.5                 0.2           0         0.0145                  6.2855
       17275152                       6.125                 0.2           0         0.0145                  5.9105
       17275153                           6                 0.2           0         0.0145                  5.7855
       17275154                        6.25                 0.2           0         0.0145                  6.0355
       17275155                           6                 0.2           0         0.0145                  5.7855
       17275156                         6.5                 0.2           0         0.0145                  6.2855
       17275036                       6.125                 0.2           0         0.0145                  5.9105
       17275037                        6.75                 0.2           0         0.0145                  6.5355
       17275038                           6                 0.2           0         0.0145                  5.7855
       17275041                        6.75                 0.2           0         0.0145                  6.5355
       17275042                         6.5                 0.2           0         0.0145                  6.2855
       17275043                       5.875                 0.2           0         0.0145                  5.6605
       17275044                         6.5                 0.2           0         0.0145                  6.2855
       17275045                       6.625                 0.2           0         0.0145                  6.4105
       17275046                           6                 0.2           0         0.0145                  5.7855
       17275049                       6.875                 0.2           0         0.0145                  6.6605
       17275157                         6.5                 0.2           0         0.0145                  6.2855
       17275158                        5.75                 0.2           0         0.0145                  5.5355
       17275159                       6.625                 0.2           0         0.0145                  6.4105
       17275160                       5.875                 0.2           0         0.0145                  5.6605
       17275161                       6.125                 0.2           0         0.0145                  5.9105
       17275162                       6.625                 0.2           0         0.0145                  6.4105
       17275163                         6.5                 0.2           0         0.0145                  6.2855
       17275164                       6.875                 0.2           0         0.0145                  6.6605
       17275165                        5.75                 0.2           0         0.0145                  5.5355
       17275167                           8                 0.2           0         0.0145                  7.7855
       17275168                           6                 0.2           0         0.0145                  5.7855
       17275169                       5.875                 0.2           0         0.0145                  5.6605
       17275170                           6                 0.2           0         0.0145                  5.7855
       17275171                       5.875                 0.2           0         0.0145                  5.6605
       17275172                         8.5                 0.2           0         0.0145                  8.2855
       17275173                        5.75                 0.2           0         0.0145                  5.5355
       17275174                           6                 0.2           0         0.0145                  5.7855
       17275175                       6.625                 0.2        0.17         0.0145                  6.2405
       17275176                        7.25                 0.2           0         0.0145                  7.0355
       17275177                         6.5                 0.2           0         0.0145                  6.2855
       17275178                         6.5                 0.2           0         0.0145                  6.2855
       17275179                           6                 0.2           0         0.0145                  5.7855
       17275180                       6.375                 0.2           0         0.0145                  6.1605
       17311630                         6.5                0.25           0         0.0145                  6.2355
       17311631                       6.375                0.25           0         0.0145                  6.1105
       17311632                           7                0.25           0         0.0145                  6.7355
       17311633                       6.625                0.25           0         0.0145                  6.3605
       17311634                           7                0.25           0         0.0145                  6.7355

LOAN_SEQ             MATURITY_           STATED_                    STATED_             ORIGINAL            FIRST_PAY
                     DATE                ORIGINAL_TERM              REM_TERM            _BALANCE            _DATE
---------------------------------------------------------------------------------------------------------------------------
       17256879            20370701                        360                 359              195500            20070801
       17264126            20370701                        360                 359              180000            20070801
       17325358            20370801                        360                 360              392000            20070901
       17256859            20370801                        360                 360              140800            20070901
       17259488            20370801                        360                 360              375000            20070901
       17298204            20370801                        360                 360              280000            20070901
       17169204            20370501                        360                 357              770000            20070601
       17279835            20220601                        180                 178           907621.98            20070701
       17279836            20211001                        180                 170              680000            20061101
       17279837            20220601                        180                 178          1465249.75            20070701
       17279838            20220101                        180                 173              536000            20070201
       17279839            20220401                        180                 176              429000            20070501
       17279840            20220601                        180                 178              663500            20070701
       17279841            20220601                        180                 178              644000            20070701
       17279842            20220501                        180                 177              432000            20070601
       17279843            20220601                        180                 178              545000            20070701
       17279844            20220601                        180                 178              497250            20070701
       17279845            20220701                        180                 179             1000000            20070801
       17279846            20220701                        180                 179              545600            20070801
       17279847            20220701                        180                 179              961200            20070801
       17279848            20220701                        180                 179              584000            20070801
       17279849            20210901                        180                 169           994964.44            20061001
       17275039            20211201                        180                 172             2000000            20070101
       17275040            20220101                        180                 173              715000            20070201
       17275047            20220101                        180                 173              520000            20070201
       17275064            20220101                        180                 173             1275000            20070201
       17275066            20220201                        180                 174              471000            20070301
       17275111            20220601                        180                 178              616000            20070701
       17275115            20220601                        180                 178              575000            20070701
       17275139            20220501                        180                 177             1760000            20070601
       17152818            20370401                        360                 356              856000            20070501
       17298145            20370801                        360                 360              387500            20070901
       17299558            20370801                        360                 360              108000            20070901
       17299514            20370801                        360                 360               80000            20070901
       17301699            20370801                        360                 360              696000            20070901
       17302231            20370801                        360                 360              288000            20070901
       17302239            20370801                        360                 360              182000            20070901
       17301598            20220401                        180                 176              480000            20070501
       17301606            20370601                        360                 358              453600            20070701
       17301607            20370401                        360                 356              478000            20070501
       17301620            20370501                        360                 357              616500            20070601
       17272334            20370701                        360                 359              520000            20070801
       17267318            20370701                        360                 359              305000            20070801
       17265508            20370701                        360                 359              302400            20070801
       17293451            20370801                        360                 360              573600            20070901
       17255930            20370701                        360                 359              417000            20070801
       17312146            20370801                        360                 360              215200            20070901
       17326715            20370801                        360                 360              296000            20070901
       17323136            20370701                        360                 359              398300            20070801
       17325278            20370801                        360                 360              396000            20070901
       17325635            20370801                        360                 360              471000            20070901
       17325667            20370801                        360                 360              450000            20070901
       17325722            20370701                        360                 359              500000            20070801
       17325723            20370601                        360                 358              776000            20070701
       17312267            20370801                        360                 360              310000            20070901
       17322699            20370801                        360                 360              316000            20070901
       17311728            20370801                        360                 360              201500            20070901
       17311826            20370801                        360                 360              680000            20070901
       17298836            20370801                        360                 360               77000            20070901
       17299499            20370801                        360                 360              122500            20070901
       17301733            20370801                        360                 360              433600            20070901
       17302144            20370801                        360                 360              448000            20070901
       17302214            20370801                        360                 360              360000            20070901
       17302541            20370801                        360                 360             1480000            20070901
       17303766            20270801                        240                 240               55800            20070901
       17303878            20370801                        360                 360              664000            20070901
       17297180            20370801                        360                 360              112000            20070901
       17286618            20370801                        360                 360               60000            20070901
       17214309            20370501                        360                 357              692100            20070601
       17217053            20370501                        360                 357              542000            20070601
       17248384            20370701                        360                 359              134430            20070801
       17251383            20370701                        360                 359              320000            20070801
       17215989            20370401                        360                 356              472000            20070501
       17215990            20370401                        360                 356              676000            20070501
       17215991            20370401                        360                 356              432000            20070501
       17215992            20370401                        360                 356              987000            20070501
       17215993            20370401                        360                 356              592000            20070501
       17215994            20370401                        360                 356              481150            20070501
       17215995            20370401                        360                 356              604000            20070501
       17215996            20370401                        360                 356              522000            20070501
       17215997            20370401                        360                 356              480000            20070501
       17215998            20370401                        360                 356              900000            20070501
       17215999            20370401                        360                 356              562500            20070501
       17216000            20370401                        360                 356              500000            20070501
       17216001            20370401                        360                 356              430000            20070501
       17216002            20370401                        360                 356              441100            20070501
       17216003            20370401                        360                 356              456000            20070501
       17216004            20370401                        360                 356              456000            20070501
       17216005            20370401                        360                 356              432000            20070501
       17216006            20370401                        360                 356              679000            20070501
       17216008            20370401                        360                 356              449000            20070501
       17216009            20370401                        360                 356              590000            20070501
       17216011            20370401                        360                 356              740000            20070501
       17216012            20370401                        360                 356              720000            20070501
       17216013            20370401                        360                 356             1500000            20070501
       17216014            20370401                        360                 356              780800            20070501
       17216015            20370401                        360                 356              706000            20070501
       17216017            20370401                        360                 356              431653            20070501
       17216018            20370401                        360                 356              585000            20070501
       17216019            20370401                        360                 356              440000            20070501
       17216020            20370401                        360                 356              520000            20070501
       17216021            20370401                        360                 356              668000            20070501
       17216022            20370401                        360                 356              523450            20070501
       17216023            20370401                        360                 356              540000            20070501
       17216024            20370401                        360                 356              748000            20070501
       17216026            20370401                        360                 356              440000            20070501
       17216027            20370401                        360                 356              588000            20070501
       17216028            20370401                        360                 356              442000            20070501
       17216029            20370401                        360                 356              448000            20070501
       17216030            20370401                        360                 356              456000            20070501
       17216031            20370401                        360                 356              650000            20070501
       17216033            20370401                        360                 356              520000            20070501
       17216034            20370401                        360                 356              448000            20070501
       17216035            20370401                        360                 356              650000            20070501
       17216038            20370401                        360                 356              429750            20070501
       17216039            20370401                        360                 356              494500            20070501
       17216040            20370401                        360                 356              582320            20070501
       17216041            20370401                        360                 356              420000            20070501
       17216042            20370401                        360                 356              511200            20070501
       17246636            20370601                        360                 358              241600            20070701
       17255952            20370601                        360                 358              320800            20070701
       17215981            20370401                        360                 356              891000            20070501
       17215982            20370401                        360                 356              926400            20070501
       17215983            20370301                        360                 355              460000            20070401
       17215984            20370401                        360                 356              472000            20070501
       17215985            20370401                        360                 356              660000            20070501
       17215986            20370401                        360                 356              550000            20070501
       17215988            20370301                        360                 355              520000            20070401
       17215977            20370401                        360                 356              588000            20070501
       17215978            20370401                        360                 356              840000            20070501
       17215979            20370401                        360                 356             1125000            20070501
       17215980            20370401                        360                 356              464000            20070501
       17215962            20370401                        360                 356           799765.91            20070501
       17215963            20370201                        360                 354              497000            20070301
       17215967            20370401                        360                 356             1120000            20070501
       17215970            20370401                        360                 356              630000            20070501
       17215971            20370401                        360                 356              880000            20070501
       17215974            20370301                        360                 355              448000            20070401
       17215975            20370401                        360                 356              650000            20070501
       17215976            20370201                        360                 354              500000            20070301
       17215955            20370401                        360                 356              632000            20070501
       17215960            20370401                        360                 356             1000000            20070501
       17066770            20370401                        360                 356              456000            20070501
       17301599            20370701                        360                 359              451475            20070801
       17301600            20370701                        360                 359              426550            20070801
       17301601            20370701                        360                 359              592000            20070801
       17301602            20370601                        360                 358              465600            20070701
       17301603            20370401                        360                 356              550000            20070501
       17301604            20370601                        360                 358              640000            20070701
       17301605            20370701                        360                 359              504750            20070801
       17301608            20370601                        360                 358              646800            20070701
       17301609            20370701                        360                 359              775000            20070801
       17301610            20370701                        360                 359              512000            20070801
       17301611            20370501                        360                 357              513525            20070601
       17301612            20370501                        360                 357              608000            20070601
       17301613            20370701                        360                 359              684000            20070801
       17301614            20370701                        360                 359              480000            20070801
       17301615            20370701                        360                 359              520400            20070801
       17301616            20370601                        360                 358              636000            20070701
       17301617            20370701                        360                 359              685000            20070801
       17301618            20370701                        360                 359              472600            20070801
       17301619            20370501                        360                 357              645675            20070601
       17301621            20370601                        360                 358              690000            20070701
       17301622            20370601                        360                 358              620000            20070701
       17301624            20370701                        360                 359              750000            20070801
       17301625            20370601                        360                 358              556000            20070701
       17301626            20370501                        360                 357              487850            20070601
       17301627            20370701                        360                 359              830000            20070801
       17301628            20370601                        360                 358              657000            20070701
       17301630            20370701                        360                 359              941150            20070801
       17301631            20370701                        360                 359              620000            20070801
       17301632            20370601                        360                 358              418000            20070701
       17301633            20370601                        360                 358              500000            20070701
       17301634            20370701                        360                 359              520000            20070801
       17301635            20370701                        360                 359              578075            20070801
       17301636            20370701                        360                 359              648000            20070801
       17301637            20370601                        360                 358              468000            20070701
       17301638            20370701                        360                 359              643300            20070801
       17301639            20370701                        360                 359              511150            20070801
       17301640            20370701                        360                 359             1000000            20070801
       17301641            20370701                        360                 359              480000            20070801
       17301642            20370601                        360                 358              463000            20070701
       17301643            20370701                        360                 359              684675            20070801
       17301644            20370701                        360                 359              603600            20070801
       17301645            20370701                        360                 359              480250            20070801
       17301646            20220701                        180                 179             1000000            20070801
       17301647            20370701                        360                 359              587000            20070801
       17301648            20370701                        360                 359              432000            20070801
       17301649            20370701                        360                 359              666500            20070801
       17301650            20370701                        360                 359              454500            20070801
       17301651            20370701                        360                 359              632000            20070801
       17301652            20370701                        360                 359              521600            20070801
       17301653            20370601                        360                 358              674400            20070701
       17301654            20370701                        360                 359              916000            20070801
       17301655            20370601                        360                 358              778925            20070701
       17301656            20370701                        360                 359              440000            20070801
       17301657            20370701                        360                 359              585000            20070801
       17301658            20370701                        360                 359              624000            20070801
       17301659            20370701                        360                 359              464000            20070801
       17301660            20370601                        360                 358              450400            20070701
       17301661            20370601                        360                 358              560000            20070701
       17301662            20370701                        360                 359              650000            20070801
       17301663            20370601                        360                 358              650000            20070701
       17301664            20370701                        360                 359              562000            20070801
       17301665            20370701                        360                 359              420300            20070801
       17301666            20370701                        360                 359              650000            20070801
       17301667            20370701                        360                 359              464000            20070801
       17301668            20370701                        360                 359              596000            20070801
       17301669            20370701                        360                 359              512000            20070801
       17301670            20370601                        360                 358              513000            20070701
       17301671            20370701                        360                 359              570000            20070801
       17301672            20370601                        360                 358              480000            20070701
       17301673            20370701                        360                 359              880000            20070801
       17301674            20370701                        360                 359              508000            20070801
       17301675            20370701                        360                 359              620000            20070801
       17301676            20370701                        360                 359              460000            20070801
       17301677            20370701                        360                 359              433250            20070801
       17301678            20370701                        360                 359              511000            20070801
       17301679            20370701                        360                 359              460000            20070801
       17301680            20370701                        360                 359              515800            20070801
       17301681            20370701                        360                 359              525000            20070801
       17301682            20370701                        360                 359              496000            20070801
       17301684            20370701                        360                 359              448000            20070801
       17301685            20370701                        360                 359              494200            20070801
       17301686            20370701                        360                 359              532400            20070801
       17301687            20370701                        360                 359              491000            20070801
       17301688            20370701                        360                 359              575900            20070801
       17301689            20370701                        360                 359              610500            20070801
       17301690            20370701                        360                 359              433600            20070801
       17301691            20370701                        360                 359              884800            20070801
       17301692            20370701                        360                 359              856000            20070801
       17301693            20370701                        360                 359              500000            20070801
       17301694            20370701                        360                 359              617600            20070801
       17255554            20370601                        360                 358              200000            20070701
       17256994            20370601                        360                 358              588000            20070701
       17265615            20370601                        360                 358              400000            20070701
       17265616            20370601                        360                 358              490000            20070701
       17265618            20370601                        360                 358              288800            20070701
       17272390            20370701                        360                 359              605000            20070801
       17252917            20370601                        360                 358              548000            20070701
       17255498            20370501                        360                 357              128985            20070601
       17255501            20370501                        360                 357              161600            20070601
       17238727            20370501                        360                 357              485000            20070601
       17230234            20370501                        360                 357              575000            20070601
       17230245            20370501                        360                 357              504000            20070601
       17224468            20370501                        360                 357              450000            20070601
       17311639            20370701                        360                 359              552000            20070801
       17311640            20220701                        180                 179              650000            20070801
       17311643            20370401                        360                 356              235000            20070501
       17311644            20220601                        180                 178             2000000            20070701
       17311645            20370501                        360                 357             1288000            20070601
       17311646            20370501                        360                 357             1387500            20070601
       17311647            20370501                        360                 357              608000            20070601
       17311648            20370501                        360                 357             1024800            20070601
       17311649            20220501                        180                 177              896000            20070601
       17311650            20370501                        360                 357             1200000            20070601
       17311651            20370501                        360                 357              455000            20070601
       17311652            20370501                        360                 357             1180000            20070601
       17311653            20370701                        360                 359              476000            20070801
       17311655            20370501                        360                 357              248000            20070601
       17311656            20370501                        360                 357              605000            20070601
       17311657            20220701                        180                 179             1327500            20070801
       17311658            20370701                        360                 359             2475500            20070801
       17311659            20370701                        360                 359              470000            20070801
       17311662            20370701                        360                 359              459000            20070801
       17311663            20370701                        360                 359             1100000            20070801
       17311664            20370701                        360                 359              495000            20070801
       17311665            20370701                        360                 359              536000            20070801
       17311666            20370701                        360                 359              483000            20070801
       17311667            20370701                        360                 359              510000            20070801
       17311668            20370701                        360                 359             1650000            20070801
       17311669            20370701                        360                 359              678750            20070801
       17311670            20370701                        360                 359              505000            20070801
       17311671            20370701                        360                 359              245700            20070801
       17311673            20370701                        360                 359              628000            20070801
       17311674            20220701                        180                 179              717200            20070801
       17311675            20370701                        360                 359              997500            20070801
       17311677            20370701                        360                 359              370000            20070801
       17311678            20370701                        360                 359              600000            20070801
       17311679            20370701                        360                 359              700000            20070801
       17311680            20370701                        360                 359              559200            20070801
       17311681            20370701                        360                 359              540000            20070801
       17311682            20370701                        360                 359              544000            20070801
       17311683            20370701                        360                 359              540000            20070801
       17311684            20370701                        360                 359              560000            20070801
       17311685            20370701                        360                 359              495000            20070801
       17311686            20370701                        360                 359              509500            20070801
       17311687            20370701                        360                 359              895000            20070801
       17311688            20370701                        360                 359              710000            20070801
       17311689            20370701                        360                 359              500000            20070801
       17311690            20370701                        360                 359              516000            20070801
       17311691            20370701                        360                 359              206000            20070801
       17311692            20370701                        360                 359              687200            20070801
       17311693            20370701                        360                 359              556000            20070801
       17311694            20370701                        360                 359              495000            20070801
       17311695            20370701                        360                 359              595000            20070801
       17311696            20370801                        360                 360              633000            20070901
       17311697            20370701                        360                 359              680000            20070801
       17311698            20370701                        360                 359             1776000            20070801
       17311699            20370701                        360                 359              950000            20070801
       17311700            20370701                        360                 359              475500            20070801
       17311701            20370701                        360                 359              228000            20070801
       17311635            20370701                        360                 359              960000            20070801
       17311636            20370701                        360                 359              552000            20070801
       17311637            20370701                        360                 359              700000            20070801
       17311638            20370701                        360                 359              634000            20070801
       17255495            20370401                        360                 356              213500            20070501
       17256975            20370601                        360                 358              534000            20070701
       17311902            20370701                        360                 359              156000            20070801
       17311903            20370601                        360                 358              192000            20070701
       17311905            20370601                        360                 358              279200            20070701
       17311910            20370801                        360                 360              309500            20070901
       17322785            20370801                        360                 360              497250            20070901
       17153067            20370501                        360                 357             2050000            20070601
       17230237            20370501                        360                 357              589000            20070601
       17304293            20370801                        360                 360              152000            20070901
       17304303            20370801                        360                 360              363000            20070901
       17312237            20370801                        360                 360              391500            20070901
       17303541            20370801                        360                 360              340000            20070901
       17278974            20370801                        360                 360              329600            20070901
       17279607            20370701                        360                 359              643500            20070801
       17279642            20370801                        360                 360              139750            20070901
       17279645            20370801                        360                 360              251250            20070901
       17280101            20370701                        360                 359              260000            20070801
       17280056            20370801                        360                 360              137700            20070901
       17286603            20370701                        360                 359              300000            20070801
       17293515            20370701                        360                 359              525000            20070801
       17293467            20270801                        240                 240              160000            20070901
       17295283            20370801                        360                 360              483300            20070901
       17295296            20370701                        360                 359              176800            20070801
       17297220            20370801                        360                 360              500000            20070901
       17272301            20370801                        360                 360              116000            20070901
       17274240            20370801                        360                 360              680000            20070901
       17274244            20370801                        360                 360              203000            20070901
       17274322            20370701                        360                 359               76800            20070801
       17274327            20370801                        360                 360              328000            20070901
       17265797            20270701                        240                 239              241000            20070801
       17255945            20370701                        360                 359              712000            20070801
       17264110            20370701                        360                 359              711475            20070801
       17128540            20220401                        180                 176              550000            20070501
       17051919            20370301                        360                 355              892000            20070401
       17175596            20370501                        360                 357              495000            20070601
       17182068            20370501                        360                 357              477000            20070601
       17275050            20220401                        180                 176              555120            20070501
       17275051            20220401                        180                 176              500000            20070501
       17275052            20220401                        180                 176              968000            20070501
       17275053            20220401                        180                 176              720000            20070501
       17275054            20220401                        180                 176             2000000            20070501
       17275055            20220401                        180                 176              525000            20070501
       17275056            20220501                        180                 177              480000            20070601
       17275057            20220401                        180                 176              470000            20070501
       17275058            20220401                        180                 176              532500            20070501
       17275059            20220401                        180                 176              620000            20070501
       17275060            20220401                        180                 176              450000            20070501
       17275061            20220301                        180                 175              540000            20070401
       17275062            20220401                        180                 176              448000            20070501
       17275063            20220501                        180                 177              448875            20070601
       17275065            20220501                        180                 177             1155000            20070601
       17275067            20220501                        180                 177             1100000            20070601
       17275068            20220401                        180                 176              705000            20070501
       17275070            20220401                        180                 176             1330000            20070501
       17275071            20220501                        180                 177              533804            20070601
       17275072            20220401                        180                 176              894000            20070501
       17275073            20220301                        180                 175             4000000            20070401
       17275074            20220501                        180                 177              799800            20070601
       17275075            20220401                        180                 176              474600            20070501
       17275076            20220601                        180                 178              752000            20070701
       17275077            20220501                        180                 177              500000            20070601
       17275078            20220401                        180                 176              999000            20070501
       17275079            20220401                        180                 176              600000            20070501
       17275080            20220501                        180                 177             1611000            20070601
       17275082            20220501                        180                 177              465000            20070601
       17275083            20220501                        180                 177              500000            20070601
       17275084            20220501                        180                 177              567500            20070601
       17275085            20220501                        180                 177              800000            20070601
       17275086            20220501                        180                 177             1000000            20070601
       17275087            20220501                        180                 177             1100000            20070601
       17275088            20220501                        180                 177              640500            20070601
       17275089            20220401                        180                 176             2000000            20070501
       17275090            20220501                        180                 177              516000            20070601
       17275091            20220501                        180                 177              648750            20070601
       17275092            20220501                        180                 177             1253000            20070601
       17275093            20220401                        180                 176              500000            20070501
       17275094            20220501                        180                 177              550000            20070601
       17275095            20220401                        180                 176              555000            20070501
       17275096            20220401                        180                 176              600000            20070501
       17275097            20220401                        180                 176              755000            20070501
       17275098            20220601                        180                 178              504500            20070701
       17275099            20220501                        180                 177              550000            20070601
       17275100            20220301                        180                 175              577500            20070401
       17275101            20220501                        180                 177              500000            20070601
       17275102            20220501                        180                 177              825000            20070601
       17275103            20220601                        180                 178              900000            20070701
       17275104            20220501                        180                 177              575000            20070601
       17275105            20220601                        180                 178              543500            20070701
       17275106            20220501                        180                 177              433600            20070601
       17275107            20220601                        180                 178              474000            20070701
       17275108            20220601                        180                 178              504000            20070701
       17275109            20220501                        180                 177              461000            20070601
       17275110            20220601                        180                 178              750000            20070701
       17275112            20220501                        180                 177              525000            20070601
       17275113            20220401                        180                 176              576000            20070501
       17275114            20220401                        180                 176              430000            20070501
       17275116            20220401                        180                 176              435000            20070501
       17275117            20220401                        180                 176              500000            20070501
       17275118            20220401                        180                 176              589600            20070501
       17275119            20220401                        180                 176              825000            20070501
       17275120            20220401                        180                 176              542500            20070501
       17275121            20220401                        180                 176              748000            20070501
       17275122            20220401                        180                 176              742000            20070501
       17275123            20220401                        180                 176              457000            20070501
       17275124            20220401                        180                 176             1160000            20070501
       17275125            20220401                        180                 176              524500            20070501
       17275126            20220501                        180                 177              650000            20070601
       17275127            20220501                        180                 177             1000000            20070601
       17275128            20220501                        180                 177              470000            20070601
       17275129            20220401                        180                 176              610000            20070501
       17275130            20220601                        180                 178              820000            20070701
       17275131            20220401                        180                 176              450000            20070501
       17275132            20220601                        180                 178              703500            20070701
       17275134            20220401                        180                 176              650000            20070501
       17275135            20220601                        180                 178              970000            20070701
       17275136            20220601                        180                 178              584000            20070701
       17275137            20220601                        180                 178              525000            20070701
       17275138            20220401                        180                 176             1178000            20070501
       17275140            20220601                        180                 178              864000            20070701
       17275141            20220501                        180                 177             1388750            20070601
       17275142            20220501                        180                 177              556000            20070601
       17275143            20220601                        180                 178              610000            20070701
       17275144            20220501                        180                 177             1207500            20070601
       17275145            20220501                        180                 177              601400            20070601
       17275146            20220601                        180                 178             1650000            20070701
       17275147            20220501                        180                 177             1495000            20070601
       17275148            20220501                        180                 177              541000            20070601
       17275149            20220501                        180                 177             1250000            20070601
       17275150            20220501                        180                 177              428000            20070601
       17275151            20220601                        180                 178             1360000            20070701
       17275152            20220501                        180                 177              523900            20070601
       17275153            20220601                        180                 178             1252500            20070701
       17275154            20220601                        180                 178             1000000            20070701
       17275155            20220601                        180                 178              808493            20070701
       17275156            20220501                        180                 177              650000            20070601
       17275036            20220601                        180                 178              575000            20070701
       17275037            20220601                        180                 178              650000            20070701
       17275038            20220601                        180                 178              643200            20070701
       17275041            20220301                        180                 175              543000            20070401
       17275042            20220301                        180                 175              744000            20070401
       17275043            20220301                        180                 175             1400000            20070401
       17275044            20220301                        180                 175              463000            20070401
       17275045            20220301                        180                 175              950000            20070401
       17275046            20220401                        180                 176              650000            20070501
       17275049            20220401                        180                 176              465000            20070501
       17275157            20220601                        180                 178              480000            20070701
       17275158            20220501                        180                 177              862500            20070601
       17275159            20220501                        180                 177              475632            20070601
       17275160            20220601                        180                 178              584000            20070701
       17275161            20220601                        180                 178             1470000            20070701
       17275162            20220601                        180                 178             1080000            20070701
       17275163            20220601                        180                 178              824000            20070701
       17275164            20220601                        180                 178             1009000            20070701
       17275165            20220601                        180                 178              620000            20070701
       17275167            20220601                        180                 178              471200            20070701
       17275168            20220601                        180                 178              700000            20070701
       17275169            20220601                        180                 178              615780            20070701
       17275170            20220601                        180                 178              420000            20070701
       17275171            20220701                        180                 179              439001            20070801
       17275172            20220701                        180                 179              484200            20070801
       17275173            20220601                        180                 178              800000            20070701
       17275174            20220601                        180                 178             1000000            20070701
       17275175            20220601                        180                 178              643500            20070701
       17275176            20220701                        180                 179              500000            20070801
       17275177            20220601                        180                 178              500000            20070701
       17275178            20220601                        180                 178              520000            20070701
       17275179            20220601                        180                 178              500000            20070701
       17275180            20220601                        180                 178             1000000            20070701
       17311630            20370501                        360                 357             1380000            20070601
       17311631            20370601                        360                 358              365000            20070701
       17311632            20370701                        360                 359              450000            20070801
       17311633            20370701                        360                 359             1050000            20070801
       17311634            20370701                        360                 359              435000            20070801

LOAN_SEQ             PAYMENT            CURRENT_       LOAN_TO               MI                             MERS_ID1
                                        BALANCE        _VALUE
--------------------------------------------------------------------------------------------------------------------------------------
       17256879             1284.3           195335.75               85      Republic MIC                                    1.00E+17
       17264126             1093.7           179825.05             37.5      No MI                                           1.00E+17
       17325358            2575.16              392000               80      No MI                                           1.00E+17
       17256859             866.93              140800               80      No MI                                           1.00E+17
       17259488            2218.27              375000      76.54000092      No MI                                           1.00E+17
       17298204            1604.17              280000      79.44000244      No MI                                           1.00E+17
       17169204             4678.6           767743.35      79.66999817      No MI                                           1.00E+17
       17279835            7844.12           901561.17      58.56000137      No MI
       17279836            5784.25           656327.17               80      No MI
       17279837           12563.47          1455370.24      66.59999847      No MI
       17279838            4595.79           523171.93               80      No MI
       17279839            3591.24           422992.35      60.41999817      No MI
       17279840             5734.3           656638.21      69.83999634      No MI
       17279841            5434.44           639560.05               70      No MI
       17279842             3674.7           427568.36      50.81999969      No MI
       17279843             4562.3           541202.59      72.66999817      No MI
       17279844            4400.22            494034.6               85      Radian Guaranty
       17279845            8170.83            996412.5      30.29999924      No MI
       17279846             4678.1           543763.57               80      No MI
       17279847            8111.15           957894.85      64.08000183      No MI
       17279848            4928.12           580150.68               80      No MI
       17279849            8531.05           953624.07      62.58000183      No MI
       17275039           16877.14          1441510.39      50.75999832      No MI                                           1.00E+17
       17275040            6179.39           698065.35               55      No MI                                           1.00E+17
       17275047            4494.11           507682.55               80      No MI                                           1.00E+17
       17275064           10932.14          1244485.93               75      No MI                                           1.00E+17
       17275066            4102.92              461563               75      No MI                                           1.00E+17
       17275111            5281.72           611842.42               80      No MI                                           1.00E+17
       17275115            4736.46           219376.88      67.65000153      No MI                                           1.00E+17
       17275139              14971          1741945.15               55      No MI                                           1.00E+17
       17152818             4547.5              856000               80      No MI                                           1.00E+17
       17298145            2058.59              387500             62.5      No MI                                           1.00E+17
       17299558             736.76              108000               80      No MI                                           1.00E+17
       17299514             433.33               80000               80      No MI                                           1.00E+17
       17301699             3697.5              696000      69.59999847      No MI                                           1.00E+17
       17302231               1620              288000               80      No MI                                           1.00E+17
       17302239            1042.71              182000      79.83000183      No MI                                           1.00E+17
       17301598            3953.92           473136.25               80      No MI                                           1.00E+17
       17301606            2598.75              453600               80      No MI                                           1.00E+17
       17301607            3021.29           476105.54      65.02999878      No MI                                           1.00E+17
       17301620            3467.81           616499.99               90      Radian Guaranty                                 1.00E+17
       17272334            3459.58           519573.75               80      No MI                                           1.00E+17
       17267318            1902.81            304717.5      78.20999908      No MI                                           1.00E+17
       17265508             1606.5              302400               80      No MI                                           1.00E+17
       17293451            3672.82              573600               80      No MI                                           1.00E+17
       17255930            2704.65           416640.98      76.80000305      No MI                                           1.00E+17
       17312146            1468.04              215200               80      No MI                                           1.01E+17
       17326715            1695.83              296000               80      No MI                                           1.00E+17
       17323136            2240.44              398300               80      No MI                                           1.00E+17
       17325278            2601.44              396000               80      No MI                                           1.00E+17
       17325635            2649.38              471000             78.5      No MI                                           1.00E+17
       17325667             3069.8              450000      74.38999939      No MI                                           1.00E+17
       17325722            3119.35            499536.9      47.61999893      No MI                                           1.00E+17
       17325723             4122.5              776000      79.58999634      No MI                                           1.00E+17
       17312267            1959.42              310000      67.40000153      No MI                                           1.00E+17
       17322699             2075.9              316000               80      No MI                                           1.00E+17
       17311728            1273.62              201500      71.97000122      No MI                                           1.00E+17
       17311826            3966.67              680000               80      No MI                                           1.00E+17
       17298836             505.84               77000      61.59999847      No MI                                           1.00E+17
       17299499             784.39              122500      81.66999817      Republic MIC                                    1.00E+17
       17301733            2669.75              433600      83.38999939      Republic MIC                                    1.00E+17
       17302144            2980.56              448000               80      No MI                                           1.00E+17
       17302214            2334.96              360000               80      No MI                                           1.00E+17
       17302541            8941.67             1480000      72.19999695      No MI                                           1.00E+17
       17303766             424.29               55800               90      Republic MIC                                    1.00E+17
       17303878            3981.02              664000               80      No MI                                           1.00E+17
       17297180             707.92              112000               80      No MI                                           1.00E+17
       17286618             384.19               60000      74.08000183      No MI                                           1.00E+17
       17214309            4149.49           690022.68      79.63999939      No MI                                           1.00E+17
       17217053            3045.35           541394.96               80      No MI                                           1.00E+17
       17248384             849.69           134308.47      79.08000183      No MI                                           1.00E+17
       17251383            2075.52           319724.48               80      No MI                                           1.00E+17
       17215989            2555.72           471825.26               80      No MI
       17215990            4162.25           673414.21               80      No MI
       17215991            2801.95            430499.6               90      GE Capital MI
       17215992            5860.31              987000               70      No MI
       17215993            3889.02           589993.43               80      No MI
       17215994            2404.74            480948.5      75.94999695      No MI
       17215995             3396.3           603786.25               80      No MI
       17215996            2881.88              522000               90      Mortgage Guaranty In
       17215997            2767.56           479012.45               80      No MI
       17215998            5718.75              900000               75      No MI
       17215999            3339.49           562439.84               75      No MI
       17216000            2706.17              499600      76.33999634      No MI
       17216001            2194.79              430000      79.62999725      No MI
       17216002             2751.9            439452.7      88.22000122      PMI
       17216003             2802.5              456000               80      No MI
       17216004             2707.5              456000      76.01000214      No MI
       17216005            2837.94           430535.72               80      No MI
       17216006            3534.27           678579.54      78.94999695      No MI
       17216008            2198.23              449000      66.31999969      No MI
       17216009            3191.22           589149.07      71.08000183      No MI
       17216011            4083.28           739612.51      77.08000183      No MI
       17216012            3968.34           718793.36      58.29999924      No MI
       17216013            8589.61          1499277.14      69.76999664      No MI
       17216014            4472.16           780595.58               80      No MI
       17216015            3750.63              706000      79.76999664      No MI
       17216017            2247.45           431509.67      68.62999725      No MI
       17216018            3843.04           583017.14               90      PMI
       17216019            2890.49           438376.61      79.27999878      No MI
       17216020            3244.13           518058.07               80      No MI
       17216021            3827.08              668000               80      No MI
       17216022             940.31              150450               80      No MI
       17216023            3203.57           539548.68      78.37000275      No MI
       17216024             3962.3           745845.28               80      No MI
       17216026             2333.4           439228.11               80      No MI
       17216027             3307.5              588000               80      No MI
       17216028            2440.21              442000      52.61999893      No MI
       17216029            2703.43           447464.02               80      No MI
       17216030            2844.85           454297.09               80      No MI
       17216031            3520.83              650000      43.33000183      No MI
       17216033            2816.67              520000               80      No MI
       17216034               2520              448000      69.45999908      No MI
       17216035            4270.04           647796.83      72.62999725      No MI
       17216038            2716.32           428183.29               90      PMI
       17216039            3457.62            493018.2               80      No MI
       17216040            3214.89              582320               80      No MI
       17216041            2724.12           418541.27               80      No MI
       17216042            2707.78              509700               80      No MI
       17246636               1547           241172.49               80      No MI                                           1.00E+17
       17255952            2107.43           320259.43               80      No MI                                           1.00E+17
       17215981            4634.97           889914.11               75      No MI
       17215982             4728.5              926400               60      No MI
       17215983            3060.39           458092.58               80      No MI                                           1.00E+17
       17215984             2507.5              472000               80      No MI
       17215985             784.95           137009.73               80      No MI
       17215986            2807.29              550000      32.74000168      No MI
       17215988            2924.18           519853.75               80      No MI                                           1.00E+17
       17215977            2979.34           583706.93               80      No MI
       17215978             4462.5              840000      58.95000076      No MI
       17215979            7296.73          1120850.31               75      No MI
       17215980            3048.16           462427.23            69.25      No MI
       17215962            5187.27           796919.21      79.98000336      No MI
       17215963            3432.66           494695.76      88.98000336      GE Capital MI
       17215967               7350             1120000      74.66999817      No MI
       17215970            4138.66            627864.6      50.40000153      No MI
       17215971               5775              880000               80      No MI
       17215974               2520              448000               80      No MI                                           1.00E+17
       17215975            3519.88           649823.96      59.95999908      No MI
       17215976            3538.97           497793.89      88.97000122      Radian Guaranty
       17215955            3228.32           595997.64      84.83000183      Republic MIC
       17215960            6157.18           996174.85      72.68000031      No MI
       17066770            2919.81           454377.39               80      No MI
       17301599            2445.49              451475      71.66000366      No MI                                           1.00E+17
       17301600            2443.78              426550               80      No MI                                           1.00E+17
       17301601            3693.31           591451.69               80      No MI                                           1.00E+17
       17301602            2717.12           464625.43               80      No MI                                           1.00E+17
       17301603               2750              550000            68.75      No MI                                           1.00E+17
       17301604               3400              640000               80      No MI                                           1.00E+17
       17301605            3148.99           504282.49      64.30000305      No MI                                           1.00E+17
       17301608            3982.46           645433.62      76.08999634      No MI                                           1.00E+17
       17301609            4771.81           774264.65      64.58000183      No MI                                           1.00E+17
       17301610            2772.11           511773.33      78.05000305      No MI                                           1.00E+17
       17301611             2567.3           513460.09               79      No MI                                           1.00E+17
       17301612               3040              608000               80      No MI                                           1.00E+17
       17301613            4267.28           683366.47               80      No MI                                           1.00E+17
       17301614               2250              480000               80      No MI                                           1.00E+17
       17301615            2493.58              520400               80      No MI                                           1.00E+17
       17301616             3577.5              636000               80      No MI                                           1.00E+17
       17301617            3639.06              685000      64.47000122      No MI                                           1.00E+17
       17301618            2987.16           472172.76            49.75      No MI                                           1.00E+17
       17301619            3631.92              645675      86.08999634      United Guaranty                                 1.00E+17
       17301621            4304.71           688718.44      79.76999664      No MI                                           1.00E+17
       17301622            3918.83           618875.97      89.20999908      United Guaranty                                 1.00E+17
       17301624            4617.88           749288.37               60      No MI                                           1.00E+17
       17301625            3468.72           554804.95               80      No MI                                           1.00E+17
       17301626            2642.52              487850      88.69999695      Radian Guaranty                                 1.00E+17
       17301627            4409.38              830000      62.63999939      No MI                                           1.00E+17
       17301628            3490.31              657000      78.77999878      No MI                                           1.00E+17
       17301630            5948.71           940299.19      78.43000031      No MI                                           1.00E+17
       17301631            3918.83            619439.5               62      No MI                                           1.00E+17
       17301632            2351.25              418000               95      United Guaranty                                 1.00E+17
       17301633            2862.29           499599.99      67.56999969      No MI                                           1.00E+17
       17301634            2816.67              520000               80      No MI                                           1.00E+17
       17301635            2950.59              578075      74.58999634      No MI                                           1.00E+17
       17301636             3172.5              648000               80      No MI                                           1.00E+17
       17301637            3074.43           467211.39               80      No MI                                           1.00E+17
       17301638             3347.4              642700      51.45999908      No MI                                           1.00E+17
       17301639            2875.22              511150      75.73000336      No MI                                           1.00E+17
       17301640               5625             1000000      66.66999817      No MI                                           1.00E+17
       17301641               2500              480000               80      No MI                                           1.00E+17
       17301642            2813.24           461997.17      77.16999817      No MI                                           1.00E+17
       17301643            4215.67           684025.35      65.20999908      No MI                                           1.00E+17
       17301644            3206.34           603546.83      79.94999695      No MI                                           1.00E+17
       17301645            2401.25              480250               85      United Guaranty                                 1.00E+17
       17301646            8779.94           996740.89      74.06999969      No MI                                           1.00E+17
       17301647            3614.26           586443.03      76.23000336      No MI                                           1.00E+17
       17301648            2801.95           431628.05               90      United Guaranty                                 1.00E+17
       17301649            3263.07              666500      79.34999847      No MI                                           1.00E+17
       17301650            2798.44           454068.75      66.83999634      No MI                                           1.00E+17
       17301651            3942.86           631414.64               80      No MI                                           1.00E+17
       17301652            2988.33              521600               80      No MI                                           1.00E+17
       17301653             3231.5              674400      67.44000244      No MI                                           1.00E+17
       17301654            4770.83              916000      30.53000069      No MI                                           1.00E+17
       17301655            4462.59              778925               80      No MI                                           1.00E+17
       17301656            2709.16           439582.51      79.27999878      No MI                                           1.00E+17
       17301657            3649.64           584458.17               78      No MI                                           1.00E+17
       17301658               3055              624000               80      No MI                                           1.00E+17
       17301659               2465              464000               80      No MI                                           1.00E+17
       17301660            2345.83              450400               80      No MI                                           1.00E+17
       17301661            2677.65            558813.8               80      No MI                                           1.00E+17
       17301662            3656.25              650000      78.12000275      No MI                                           1.00E+17
       17301663            3723.96              650000      83.66000366      Radian Guaranty                                 1.00E+17
       17301664            2927.08              562000      87.12999725      United Guaranty                                 1.00E+17
       17301665            2451.75              420300               90      United Guaranty                                 1.00E+17
       17301666            3114.58              650000      79.26999664      No MI                                           1.00E+17
       17301667             2932.8           463580.53      78.63999939      No MI                                           1.00E+17
       17301668            3288.71           595690.42               80      No MI                                           1.00E+17
       17301669               2720              512000      87.51999664      Republic MIC                                    1.00E+17
       17301670            2884.98           512885.93               90      United Guaranty                                 1.00E+17
       17301671            2731.25              570000      83.81999969      United Guaranty                                 1.00E+17
       17301672            2994.58            477092.3               80      No MI                                           1.00E+17
       17301673               4675              880000               80      No MI                                           1.00E+17
       17301674            2697.63           507788.96               80      No MI                                           1.00E+17
       17301675            3358.33              620000               80      No MI                                           1.00E+17
       17301676            2347.92              460000               80      No MI                                           1.00E+17
       17301677            2810.06           432876.97      61.54000092      No MI                                           1.00E+17
       17301678            2661.46              511000      61.93999863      No MI                                           1.00E+17
       17301679            2490.88           459855.04               80      No MI                                           1.00E+17
       17301680            2793.92              515800      76.98000336      No MI                                           1.00E+17
       17301681            2679.69              525000      79.79000092      No MI                                           1.00E+17
       17301682            3135.06           495551.61               80      No MI                                           1.00E+17
       17301684               2240              448000               80      No MI                                           1.00E+17
       17301685            3083.17           493742.27      79.70999908      No MI                                           1.00E+17
       17301686            3453.14           531941.61      78.87000275      No MI                                           1.00E+17
       17301687            2813.02              491000      79.19000244      No MI                                           1.00E+17
       17301688             3479.4              575900      75.27999878      No MI                                           1.00E+17
       17301689            3434.06              610500      70.58000183      No MI                                           1.00E+17
       17301690            2484.17              433600      59.56000137      No MI                                           1.00E+17
       17301691            5163.46           883876.21      34.09999847      No MI                                           1.00E+17
       17301692            5270.54           855187.79      76.62999725      No MI                                           1.00E+17
       17301693            2864.58              500000               80      No MI                                           1.00E+17
       17301694            3538.33              617600               80      No MI                                           1.00E+17
       17255554            1247.74           199628.54      54.79000092      No MI                                           1.00E+17
       17256994            3478.24           586798.08               80      No MI                                           1.00E+17
       17265615               2125              400000      72.73000336      No MI                                           1.00E+17
       17265616            2654.17              490000      74.69999695      No MI                                           1.00E+17
       17265618            1654.58           288799.64               80      No MI                                           1.00E+17
       17272390            3974.42           604491.73      77.16999817      No MI                                           1.00E+17
       17252917            3463.73           546933.78               80      No MI                                           1.00E+17
       17255498             657.63           128841.72      53.74000168      No MI                                           1.00E+17
       17255501            1088.73              161210               80      No MI                                           1.00E+17
       17238727            2986.23           483612.23      61.77999878      No MI                                           1.00E+17
       17230234            3634.39           573301.79      72.33000183      No MI                                           1.00E+17
       17230245            3185.62           502625.72      68.11000061      No MI                                           1.00E+17
       17224468            2770.73           448712.38               75      No MI                                           1.00E+17
       17311639            3534.52           551512.98               48      No MI                                           1.00E+17
       17311640            5617.63            647835.5      66.33000183      No MI                                           1.00E+17
       17311643            1248.44              235000      35.54999924      No MI                                           1.00E+17
       17311644            12477.4          1996285.36      71.43000031      No MI                                           1.00E+17
       17311645            8035.44          1284402.13               80      No MI                                           1.00E+17
       17311646            7660.16             1387500               75      No MI                                           1.00E+17
       17311647               3230              608000            73.25      No MI                                           1.00E+17
       17311648            6346.35             1024800               80      No MI                                           1.00E+17
       17311649            6036.52           893837.66               70      No MI                                           1.00E+17
       17311650            7783.18          1196882.99               75      No MI                                           1.00E+17
       17311651            2875.91           453759.33               70      No MI                                           1.00E+17
       17311652            7361.66          1176703.82      65.55999756      No MI                                           1.00E+17
       17311653            2930.81           475548.36               80      No MI                                           1.00E+17
       17311655            1420.83              248000               80      No MI                                           1.00E+17
       17311656           3338.567           604721.65      53.63000107      No MI                                           1.00E+17
       17311657           11472.92          1323079.42               75      No MI                                           1.00E+17
       17311658          13151.094             2475500               50      No MI                                           1.00E+17
       17311659            2932.19           469564.69      37.59999847      No MI
       17311662            3613.22              458700               90      PMI                                             1.00E+17
       17311663            6772.89          1098956.28      69.88999939      No MI                                           1.00E+17
       17311664            3210.56           494573.82               90      PMI                                             1.00E+17
       17311665             2847.5              536000               80      No MI                                           1.00E+17
       17311666            3052.89           456083.66               60      No MI                                           1.00E+17
       17311667             3368.3              509400               68      No MI                                           1.00E+17
       17311668           10701.87          1647870.86      73.33000183      No MI                                           1.00E+17
       17311669            3676.56              678750               75      No MI                                           1.00E+17
       17311670           2735.417              505000      55.49000168      No MI                                           1.00E+17
       17311671            1634.65            245498.6               90      PMI                                             1.00E+17
       17311673            3597.92              628000               80      No MI                                           1.00E+17
       17311674            4953.52           716654.27      79.95999908      No MI                                           1.00E+17
       17311675           5610.938              997500               75      No MI                                           1.00E+17
       17311677            2369.15           369673.56      83.15000153      Radian Guaranty                                 1.00E+17
       17311678            3891.59           599483.41      74.52999878      No MI                                           1.00E+17
       17311679            4482.18            699382.4      53.84999847      No MI                                           1.00E+17
       17311680            3203.75              559200               80      No MI                                           1.00E+17
       17311681            3457.68           539523.57               80      No MI                                           1.00E+17
       17311682            3573.69           543542.98               80      No MI                                           1.00E+17
       17311683             3262.5              540000               90      PMI                                             1.00E+17
       17311684            3632.15           559517.85               80      No MI                                           1.00E+17
       17311685             3251.8           494584.14               90      Radian Guaranty                                 1.00E+17
       17311686            3262.38           509050.48               80      No MI                                           1.00E+17
       17311687            5804.95           894229.43      54.40999985      No MI                                           1.00E+17
       17311688           4363.542              710000      74.73999786      No MI                                           1.00E+17
       17311689            2809.69              499500      39.22000122      No MI                                           1.00E+17
       17311690            2956.25              516000               80      No MI                                           1.00E+17
       17311691            1072.92              206000      31.69000053      No MI                                           1.00E+17
       17311692            4008.67              687200               80      No MI                                           1.00E+17
       17311693            3652.52            555532.9               80      No MI                                           1.00E+17
       17311694            2835.94              495000      73.87999725      No MI                                           1.00E+17
       17311695             3760.8           594462.12      55.61000061      No MI                                           1.00E+17
       17311696            3560.63              633000      74.91000366      No MI                                           1.00E+17
       17311697            4108.33              680000               80      No MI                                           1.00E+17
       17311698               9990             1776000               80      No MI                                           1.00E+17
       17311699            5442.71              950000      54.29000092      No MI                                           1.00E+17
       17311700            3084.08              473638      52.54000092      No MI                                           1.00E+17
       17311701             1564.3              228000      73.55000305      No MI                                           1.00E+17
       17311635            6146.99           959153.01               80      No MI                                           1.00E+17
       17311636             3162.5              552000               80      No MI                                           1.00E+17
       17311637            4540.19           699397.31      41.06000137      No MI                                           1.00E+17
       17311638            4007.31           633416.86      76.94000244      No MI                                           1.00E+17
       17255495            1111.98              213500      77.63999939      No MI                                           1.00E+17
       17256975             2830.7           532836.88      61.02999878      No MI                                           1.00E+17
       17311902              877.5              156000               80      No MI                                           1.00E+17
       17311903            1119.98           191995.73               80      No MI                                           1.00E+17
       17311905            1422.15           278625.09               80      No MI                                           1.00E+17
       17311910            1611.98              309500      69.55000305      No MI                                           1.00E+17
       17322785            3142.96              497250               65      No MI                                           1.00E+17
       17153067           12789.33          2044273.58      31.54000092      No MI                                           1.00E+17
       17230237            3190.19            588957.7      79.69999695      No MI                                           1.00E+17
       17304293                855              152000               80      No MI                                           1.00E+17
       17304303            2041.88              363000      77.73999786      No MI                                           1.00E+17
       17312237            2242.97              391500               90      PMI                                             1.00E+17
       17303541            2149.04              340000               80      No MI                                           1.00E+17
       17278974               1854              329600               80      No MI                                           1.00E+17
       17279607            4120.41           642932.25      64.34999847      No MI                                           1.00E+17
       17279642             953.35              139750      84.69999695      Republic MIC                                    1.00E+17
       17279645            1608.79              251250               75      No MI                                           1.00E+17
       17280101            1817.96           258299.85      78.79000092      No MI                                           1.00E+17
       17280056             870.36              137700               85      PMI                                             1.00E+17
       17286603            1970.79           299647.96      72.29000092      No MI                                           1.00E+17
       17293515            3405.15           524547.98               75      No MI                                           1.00E+17
       17293467            1192.92              160000               80      No MI                                           1.00E+17
       17295283            2718.56              483300      54.31000137      No MI                                           1.00E+17
       17295296            1012.92              176800               80      No MI                                           1.00E+17
       17297220             2812.5              500000               80      No MI                                           1.00E+17
       17272301             723.69              116000               80      No MI                                           1.00E+17
       17274240            3541.67              680000               80      No MI                                           1.00E+17
       17274244            1078.44              203000      82.02999878      PMI                                             1.00E+17
       17274322                537               76743      79.18000031      No MI                                           1.00E+17
       17274327            1776.67              328000               80      No MI                                           1.00E+17
       17265797            1796.84           240508.58      68.86000061      No MI                                           1.00E+17
       17255945            4500.33           711356.34               80      No MI                                           1.00E+17
       17264110            3850.22           710809.54      72.12999725      No MI                                           1.00E+17
       17128540            4641.21           542378.23      74.83000183      No MI                                           1.00E+17
       17051919               4460              892000      38.77999878      No MI                                           1.00E+17
       17175596            3128.73           493650.28      79.19999695      No MI
       17182068            3093.81              475761               90      PMI
       17275050            4950.86           547778.99      41.40000153      No MI                                           1.00E+17
       17275051            4287.11           493215.45      43.47999954      No MI                                           1.00E+17
       17275052            8168.53           954585.69      32.27000046      No MI                                           1.00E+17
       17275053            6027.25           702170.86               40      No MI                                           1.00E+17
       17275054            17012.5          1972574.24      68.97000122      No MI                                           1.00E+17
       17275055            4430.25           517724.66            43.75      No MI                                           1.00E+17
       17275056            4050.52           475023.64      58.54000092      No MI                                           1.00E+17
       17275057            3997.94           461923.06      77.05000305      No MI                                           1.00E+17
       17275058            4602.14           525069.71               75      No MI                                           1.00E+17
       17275059            5400.87           611263.23               80      No MI                                           1.00E+17
       17275060            3797.36           442952.04      69.12000275      No MI                                           1.00E+17
       17275061            4816.01           531289.46               80      No MI                                           1.00E+17
       17275062            3750.29           441726.28               80      No MI                                           1.00E+17
       17275063            3848.76           442318.74               75      No MI                                           1.00E+17
       17275065            9824.72          1147121.13      71.79000092      No MI                                           1.00E+17
       17275067            9356.87          1084915.85      36.06999969      No MI                                           1.00E+17
       17275068            5996.91           695332.41               60      No MI                                           1.00E+17
       17275070            11223.3          1311569.14               70      No MI                                           1.00E+17
       17275071            4540.67           528328.01               80      No MI                                           1.00E+17
       17275072             7726.4           881996.68      62.29999924      No MI                                           1.00E+17
       17275073           33754.27          3930537.48      53.33000183      No MI                                           1.00E+17
       17275074            6641.62              788482      71.41000366      No MI                                           1.00E+17
       17275075            4101.73           468227.78               70      No MI                                           1.00E+17
       17275076             6396.7           740371.64               80      No MI                                           1.00E+17
       17275077            4152.05           496479.15      46.29999924      No MI                                           1.00E+17
       17275078            8702.36           985728.21               74      No MI                                           1.00E+17
       17275079            5144.54           591858.51      44.11999893      No MI                                           1.00E+17
       17275080           13923.07          1594820.46      65.62000275      No MI                                           1.00E+17
       17275082            3799.44           459767.57      61.59000015      No MI                                           1.00E+17
       17275083            4219.28           492497.42      76.91999817      No MI                                           1.00E+17
       17275084            4788.89           561616.51            56.75      No MI                                           1.00E+17
       17275085            6750.85           780631.85      47.06000137      No MI                                           1.00E+17
       17275086            8506.25           989741.57      68.97000122      No MI                                           1.00E+17
       17275087             9208.3          1084503.41      40.74000168      No MI                                           1.00E+17
       17275088            5361.74           632779.56               70      No MI                                           1.00E+17
       17275089           17698.19          1973988.79      55.56000137      No MI                                           1.00E+17
       17275090            4459.53           510817.72      71.66999817      No MI                                           1.00E+17
       17275091            5474.53           642024.15               75      No MI                                           1.00E+17
       17275092           10573.53          1240009.68               70      No MI                                           1.00E+17
       17275093            4424.55           493497.18      67.01000214      No MI                                           1.00E+17
       17275094            4715.83           544417.28      57.88999939      No MI                                           1.00E+17
       17275095             4758.7           547469.13               75      No MI                                           1.00E+17
       17275096            5103.75           591772.27      46.15000153      No MI                                           1.00E+17
       17275097            6320.24           747089.74      62.91999817      No MI                                           1.00E+17
       17275098             4291.4           501058.54      58.65999985      No MI                                           1.00E+17
       17275099            4604.15           544237.56      47.83000183      No MI                                           1.00E+17
       17275100            4834.36           567366.15               75      No MI                                           1.00E+17
       17275101            4494.14           495239.92      35.70999908      No MI                                           1.00E+17
       17275102            6961.82           816446.92      64.70999908      No MI                                           1.00E+17
       17275103            7716.81            893925.6      40.90999985      No MI                                           1.01E+17
       17275104            4813.43           565904.19      74.19000244      No MI                                           1.00E+17
       17275105             4771.9           539947.56      69.68000031      No MI                                           1.00E+17
       17275106            3658.96           428903.62               80      No MI                                           1.00E+17
       17275107            3967.94           469965.25      75.95999908      No MI                                           1.00E+17
       17275108            4219.08           500488.26      25.85000038      No MI                                           1.23E+17
       17275109            3890.18           456220.64      68.80999756      No MI                                           1.00E+17
       17275110            6228.08           742718.13      66.95999908      No MI                                           1.00E+17
       17275112            4573.31           519783.16      67.30999756      No MI                                           1.00E+17
       17275113            4978.08           568266.33      54.86000061      No MI                                           1.00E+17
       17275114            3805.11           424407.59      31.56999969      No MI                                           1.00E+17
       17275116            3729.79           429097.43      57.61999893      No MI                                           1.00E+17
       17275117            4219.28           493071.12             12.5      No MI                                           1.00E+17
       17275118            5095.62           581683.71               80      No MI                                           1.00E+17
       17275119            7073.74           813805.46               75      No MI                                           1.00E+17
       17275120            4800.63           534979.64               70      No MI                                           1.00E+17
       17275121            6062.28           737079.45      62.33000183      No MI                                           1.00E+17
       17275122            6311.64           731825.04      61.83000183      No MI                                           1.00E+17
       17275123            3825.63           452210.03      60.04999924      No MI                                           1.00E+17
       17275124            9710.57           1128617.3               80      No MI                                           1.00E+17
       17275125             4355.5           514481.19      32.29999924      No MI                                           1.00E+17
       17275126            5617.63           643471.94      40.63000107      No MI                                           1.00E+17
       17275127            8371.18           989522.83      74.76999664      No MI                                           1.00E+17
       17275128            4061.98           464900.27      66.19999695      No MI                                           1.00E+17
       17275129            5230.28           603808.27      79.73999786      No MI                                           1.00E+17
       17275130            6864.37           814286.47      68.33000183      No MI                                           1.00E+17
       17275131            3767.03           443698.29      79.65000153      No MI                                           1.00E+17
       17275132            5841.93           698546.18      60.90999985      No MI                                           1.00E+17
       17275134            5617.63           641272.75      77.19999695      No MI                                           1.00E+17
       17275135            8120.05           963241.31      48.99000168      No MI                                           1.00E+17
       17275136            4888.77           579708.06               80      No MI                                           1.00E+17
       17275137            4359.65           521303.12      19.92000008      No MI                                           1.00E+17
       17275138            9940.63          1161675.56      72.48999786      No MI                                           1.00E+17
       17275140            7526.37           858291.84               80      No MI                                           1.00E+17
       17275141           11625.48          1374199.82               55      No MI                                           1.00E+17
       17275142            4805.23              550416               80      No MI                                           1.00E+17
       17275143            5188.81           598993.32      64.88999939      No MI                                           1.00E+17
       17275144           10685.28          1195754.91               70      No MI                                           1.00E+17
       17275145            5115.66           594929.04      57.27999878      No MI                                           1.00E+17
       17275146           13923.64          1638624.35               75      No MI                                           1.00E+17
       17275147           12615.66          1479500.78               65      No MI                                           1.00E+17
       17275148            4638.66           535508.64      79.79000092      No MI                                           1.00E+17
       17275149           10803.13          1237446.03               50      No MI                                           1.00E+17
       17275150            3582.87           423515.76      66.87999725      No MI                                           1.00E+17
       17275151           11847.06          1351014.95               80      No MI                                           1.00E+17
       17275152            4456.42           520326.21               80      No MI                                           1.00E+17
       17275153           10569.31          1248193.19               75      No MI                                           1.00E+17
       17275154            8574.23           993250.67      69.44000244      No MI                                           1.00E+17
       17275155            6822.52           802918.99      69.79000092      No MI                                           1.00E+17
       17275156             5662.2           643541.03      43.33000183      No MI                                           1.00E+17
       17275036            4891.09           571077.63      64.15000153      No MI                                           1.00E+17
       17275037            5751.91           643677.59      74.62999725      No MI                                           1.00E+17
       17275038            5427.69           638765.56               80      No MI                                           1.00E+17
       17275041            4805.06           534147.55      68.30000305      No MI                                           1.00E+17
       17275042            6481.04           731611.31               80      No MI                                           1.00E+17
       17275043           11719.66          1380394.64      46.20000076      No MI                                           1.00E+17
       17275044            4033.23           455290.37      64.56999969      No MI                                           1.00E+17
       17275045            8340.94           934347.38      61.29000092      No MI                                           1.00E+17
       17275046            5485.07           640992.44               50      No MI                                           1.00E+17
       17275049            4147.12           458613.55      71.54000092      No MI                                           1.00E+17
       17275157            4181.32           476828.79               80      No MI                                           1.00E+17
       17275158            7162.29              853364               75      No MI                                           1.00E+17
       17275159            4176.02           470955.88               80      No MI                                           1.00E+17
       17275160            4888.77           577926.12               80      No MI                                           1.00E+17
       17275161           12504.19          1459972.35               70      No MI                                           1.00E+17
       17275162            9482.33          1072940.91      77.13999939      No MI                                           1.00E+17
       17275163            7177.92           818556.12               80      No MI                                           1.00E+17
       17275164            8998.81           1002545.4      51.74000168      No MI                                           1.00E+17
       17275165            5148.54           615634.15               80      No MI                                           1.00E+17
       17275167            4503.03           468467.53               80      No MI                                           1.00E+17
       17275168               5907           695173.97      77.90000153      No MI                                           1.00E+17
       17275169            5154.81           613639.95               80      No MI                                           1.00E+17
       17275170             3544.2           417104.38            79.25      No MI                                           1.00E+17
       17275171            3674.96           437475.32      47.72000122      No MI                                           1.00E+17
       17275172            4768.11           482861.64               90      Triad Guaranty                                  1.00E+17
       17275173            6643.28           794366.64      78.05000305      No MI                                           1.00E+17
       17275174            8438.57           993105.67      26.31999969      No MI                                           1.00E+17
       17275175            5649.89           638886.58               90      Republic MIC                                    1.00E+17
       17275176            4564.31              500000      46.50999832      No MI                                           1.00E+17
       17275177            4355.54           496477.86      64.94000244      No MI                                           1.00E+17
       17275178            4529.76           516564.54               80      No MI                                           1.00E+17
       17275179            4219.28           496552.84      23.80999947      No MI                                           1.00E+17
       17275180            8642.51           992917.55      61.43999863      No MI                                           1.00E+17
       17311630               7475             1380000               80      No MI                                           1.00E+17
       17311631            1939.06              365000      74.48999786      No MI                                           1.00E+17
       17311632               2625              450000      77.58999634      No MI                                           1.00E+17
       17311633            5796.87             1050000               75      No MI                                           1.00E+17
       17311634            2894.07           434643.43      79.08999634      No MI                                           1.00E+17

LOAN_SEQ             MARGIN          NEXT_RATE_            MAX_RATE            MIN_RATE          PER_                PREPAY
                                     ADJ_DATE1                                                   RATE_CAP
--------------------------------------------------------------------------------------------------------------------------------
       17256879               0                                     6.875                 0                   0      No
       17264126               0                                     6.125                 0                   0      Yes
       17325358               0                                     6.875                 0                   0      Yes
       17256859               0                                      6.25                 0                   0      Yes
       17259488               0                                     5.875                 0                   0      Yes
       17298204               0                                     6.875                 0                   0      No
       17169204               0                                     6.125                 0                   0      Yes
       17279835               0                                     6.375                 0                   0      No
       17279836               0                                     6.125                 0                   0      No
       17279837               0                                      6.25                 0                   0      No
       17279838               0                                      6.25                 0                   0      No
       17279839               0                                     5.875                 0                   0      No
       17279840               0                                     6.375                 0                   0      No
       17279841               0                                         6                 0                   0      No
       17279842               0                                     6.125                 0                   0      No
       17279843               0                                     5.875                 0                   0      No
       17279844               0                                      6.75                 0                   0      No
       17279845               0                                       5.5                 0                   0      No
       17279846               0                                      6.25                 0                   0      No
       17279847               0                                         6                 0                   0      No
       17279848               0                                         6                 0                   0      No
       17279849               0                                      6.25                 0                   0      No
       17275039               0                                         6                 0                   0      No
       17275040               0                                     6.375                 0                   0      No
       17275047               0                                     6.375                 0                   0      No
       17275064               0                                      6.25                 0                   0      No
       17275066               0                                       6.5                 0                   0      No
       17275111               0                                      6.25                 0                   0      No
       17275115               0                                     5.625                 0                   0      No
       17275139               0                                     6.125                 0                   0      No
       17152818               0                                     6.375                 0                   0      No
       17298145               0                                     6.375                 0                   0      No
       17299558               0                                      7.25                 0                   0      Yes
       17299514               0                                       6.5                 0                   0      No
       17301699               0                                     6.375                 0                   0      Yes
       17302231               0                                      6.75                 0                   0      Yes
       17302239               0                                     6.875                 0                   0      No
       17301598               0                                     5.625                 0                   0      No
       17301606               0                                     6.875                 0                   0      No
       17301607               0                                       6.5                 0                   0      No
       17301620               0                                      6.75                 0                   0      No
       17272334               0                                         7                 0                   0      Yes
       17267318               0                                     6.375                 0                   0      Yes
       17265508               0                                     6.375                 0                   0      No
       17293451               0                                     6.625                 0                   0      No
       17255930               0                                      6.75                 0                   0      Yes
       17312146               0                                      7.25                 0                   0      Yes
       17326715               0                                     6.875                 0                   0      Yes
       17323136               0                                      6.75                 0                   0      Yes
       17325278               0                                     6.875                 0                   0      Yes
       17325635               0                                      6.75                 0                   0      Yes
       17325667               0                                      7.25                 0                   0      Yes
       17325722               0                                     6.375                 0                   0      No
       17325723               0                                     6.375                 0                   0      No
       17312267               0                                       6.5                 0                   0      Yes
       17322699               0                                     6.875                 0                   0      Yes
       17311728               0                                       6.5                 0                   0      Yes
       17311826               0                                         7                 0                   0      No
       17298836               0                                     6.875                 0                   0      No
       17299499               0                                     6.625                 0                   0      Yes
       17301733               0                                      6.25                 0                   0      Yes
       17302144               0                                         7                 0                   0      Yes
       17302214               0                                      6.75                 0                   0      Yes
       17302541               0                                      7.25                 0                   0      Yes
       17303766               0                                      6.75                 0                   0      Yes
       17303878               0                                         6                 0                   0      Yes
       17297180               0                                       6.5                 0                   0      Yes
       17286618               0                                     6.625                 0                   0      No
       17214309               0                                         6                 0                   0      Yes
       17217053               0                                      6.75                 0                   0      Yes
       17248384               0                                       6.5                 0                   0      Yes
       17251383               0                                      6.75                 0                   0      Yes
       17215989               0                                       6.5                 0                   0      No
       17215990               0                                      6.25                 0                   0      No
       17215991               0                                      6.75                 0                   0      No
       17215992               0                                     7.125                 0                   0      No
       17215993               0                                     6.875                 0                   0      No
       17215994               0                                         6                 0                   0      No
       17215995               0                                      6.75                 0                   0      No
       17215996               0                                     6.625                 0                   0      No
       17215997               0                                     6.375                 0                   0      No
       17215998               0                                     7.625                 0                   0      No
       17215999               0                                     7.125                 0                   0      No
       17216000               0                                       6.5                 0                   0      No
       17216001               0                                     6.125                 0                   0      No
       17216002               0                                     6.375                 0                   0      No
       17216003               0                                     7.375                 0                   0      No
       17216004               0                                     7.125                 0                   0      No
       17216005               0                                     6.875                 0                   0      No
       17216006               0                                      6.25                 0                   0      No
       17216008               0                                     5.875                 0                   0      No
       17216009               0                                       6.5                 0                   0      No
       17216011               0                                     6.625                 0                   0      No
       17216012               0                                     6.625                 0                   0      No
       17216013               0                                     6.875                 0                   0      No
       17216014               0                                     6.875                 0                   0      No
       17216015               0                                     6.375                 0                   0      No
       17216017               0                                      6.25                 0                   0      No
       17216018               0                                     6.875                 0                   0      No
       17216019               0                                     6.875                 0                   0      No
       17216020               0                                     6.375                 0                   0      No
       17216021               0                                     6.875                 0                   0      No
       17216022               0                                       7.5                 0                   0      No
       17216023               0                                     7.125                 0                   0      No
       17216024               0                                     6.375                 0                   0      No
       17216026               0                                     6.375                 0                   0      No
       17216027               0                                      6.75                 0                   0      No
       17216028               0                                     6.625                 0                   0      No
       17216029               0                                      7.25                 0                   0      No
       17216030               0                                     6.375                 0                   0      No
       17216031               0                                       6.5                 0                   0      No
       17216033               0                                       6.5                 0                   0      No
       17216034               0                                      6.75                 0                   0      No
       17216035               0                                     6.875                 0                   0      No
       17216038               0                                       6.5                 0                   0      No
       17216039               0                                       7.5                 0                   0      No
       17216040               0                                     6.625                 0                   0      No
       17216041               0                                      6.75                 0                   0      No
       17216042               0                                     6.375                 0                   0      No
       17246636               0                                     6.625                 0                   0      Yes
       17255952               0                                     6.875                 0                   0      Yes
       17215981               0                                      6.25                 0                   0      No
       17215982               0                                     6.125                 0                   0      No
       17215983               0                                         7                 0                   0      No
       17215984               0                                     6.375                 0                   0      No
       17215985               0                                     6.875                 0                   0      No
       17215986               0                                     6.125                 0                   0      No
       17215988               0                                      6.75                 0                   0      No
       17215977               0                                     6.125                 0                   0      No
       17215978               0                                     6.375                 0                   0      No
       17215979               0                                      6.75                 0                   0      No
       17215980               0                                     6.875                 0                   0      No
       17215962               0                                      6.75                 0                   0      No
       17215963               0                                     7.375                 0                   0      No
       17215967               0                                     7.875                 0                   0      No
       17215970               0                                     6.875                 0                   0      No
       17215971               0                                     7.875                 0                   0      No
       17215974               0                                      6.75                 0                   0      No
       17215975               0                                       6.5                 0                   0      No
       17215976               0                                     7.625                 0                   0      No
       17215955               0                                       6.5                 0                   0      No
       17215960               0                                      6.25                 0                   0      No
       17066770               0                                     6.625                 0                   0      No
       17301599               0                                       6.5                 0                   0      No
       17301600               0                                     6.875                 0                   0      No
       17301601               0                                     6.375                 0                   0      No
       17301602               0                                      5.75                 0                   0      No
       17301603               0                                         6                 0                   0      No
       17301604               0                                     6.375                 0                   0      No
       17301605               0                                     6.375                 0                   0      No
       17301608               0                                      6.25                 0                   0      No
       17301609               0                                      6.25                 0                   0      No
       17301610               0                                       6.5                 0                   0      No
       17301611               0                                         6                 0                   0      No
       17301612               0                                         6                 0                   0      No
       17301613               0                                     6.375                 0                   0      No
       17301614               0                                     5.625                 0                   0      No
       17301615               0                                      5.75                 0                   0      No
       17301616               0                                      6.75                 0                   0      No
       17301617               0                                     6.375                 0                   0      No
       17301618               0                                       6.5                 0                   0      No
       17301619               0                                      6.75                 0                   0      No
       17301621               0                                     6.375                 0                   0      No
       17301622               0                                       6.5                 0                   0      No
       17301624               0                                      6.25                 0                   0      No
       17301625               0                                     6.375                 0                   0      No
       17301626               0                                       6.5                 0                   0      No
       17301627               0                                     6.375                 0                   0      No
       17301628               0                                     6.375                 0                   0      No
       17301630               0                                       6.5                 0                   0      No
       17301631               0                                       6.5                 0                   0      No
       17301632               0                                      6.75                 0                   0      No
       17301633               0                                     6.875                 0                   0      No
       17301634               0                                       6.5                 0                   0      No
       17301635               0                                     6.125                 0                   0      No
       17301636               0                                     5.875                 0                   0      No
       17301637               0                                     6.875                 0                   0      No
       17301638               0                                      6.25                 0                   0      No
       17301639               0                                      6.75                 0                   0      No
       17301640               0                                      6.75                 0                   0      No
       17301641               0                                      6.25                 0                   0      No
       17301642               0                                     6.125                 0                   0      No
       17301643               0                                      6.25                 0                   0      No
       17301644               0                                     6.375                 0                   0      No
       17301645               0                                         6                 0                   0      No
       17301646               0                                     6.625                 0                   0      No
       17301647               0                                      6.25                 0                   0      No
       17301648               0                                      6.75                 0                   0      No
       17301649               0                                     5.875                 0                   0      No
       17301650               0                                      6.25                 0                   0      No
       17301651               0                                     6.375                 0                   0      No
       17301652               0                                     6.875                 0                   0      No
       17301653               0                                      5.75                 0                   0      No
       17301654               0                                      6.25                 0                   0      No
       17301655               0                                     6.875                 0                   0      No
       17301656               0                                      6.25                 0                   0      No
       17301657               0                                     6.375                 0                   0      No
       17301658               0                                     5.875                 0                   0      No
       17301659               0                                     6.375                 0                   0      No
       17301660               0                                      6.25                 0                   0      No
       17301661               0                                      5.75                 0                   0      No
       17301662               0                                      6.75                 0                   0      No
       17301663               0                                     6.875                 0                   0      No
       17301664               0                                      6.25                 0                   0      No
       17301665               0                                         7                 0                   0      No
       17301666               0                                      5.75                 0                   0      No
       17301667               0                                       6.5                 0                   0      No
       17301668               0                                     6.625                 0                   0      No
       17301669               0                                     6.375                 0                   0      No
       17301670               0                                      6.75                 0                   0      No
       17301671               0                                      5.75                 0                   0      No
       17301672               0                                     6.375                 0                   0      No
       17301673               0                                     6.375                 0                   0      No
       17301674               0                                     6.375                 0                   0      No
       17301675               0                                       6.5                 0                   0      No
       17301676               0                                     6.125                 0                   0      No
       17301677               0                                      6.75                 0                   0      No
       17301678               0                                      6.25                 0                   0      No
       17301679               0                                       6.5                 0                   0      No
       17301680               0                                       6.5                 0                   0      No
       17301681               0                                     6.125                 0                   0      No
       17301682               0                                       6.5                 0                   0      No
       17301684               0                                         6                 0                   0      No
       17301685               0                                     6.375                 0                   0      No
       17301686               0                                      6.75                 0                   0      No
       17301687               0                                     6.875                 0                   0      No
       17301688               0                                      7.25                 0                   0      No
       17301689               0                                      6.75                 0                   0      No
       17301690               0                                     6.875                 0                   0      No
       17301691               0                                      5.75                 0                   0      No
       17301692               0                                      6.25                 0                   0      No
       17301693               0                                     6.875                 0                   0      No
       17301694               0                                     6.875                 0                   0      No
       17255554               0                                     6.375                 0                   0      No
       17256994               0                                     5.875                 0                   0      No
       17265615               0                                     6.375                 0                   0      No
       17265616               0                                       6.5                 0                   0      No
       17265618               0                                     6.875                 0                   0      No
       17272390               0                                     6.875                 0                   0      No
       17252917               0                                       6.5                 0                   0      Yes
       17255498               0                                     6.125                 0                   0      No
       17255501               0                                     7.125                 0                   0      No
       17238727               0                                      6.25                 0                   0      No
       17230234               0                                       6.5                 0                   0      No
       17230245               0                                       6.5                 0                   0      No
       17224468               0                                      6.25                 0                   0      Yes
       17311639               0                                     6.625                 0                   0      No
       17311640               0                                     6.375                 0                   0      No
       17311643               0                                     6.375                 0                   0      Yes
       17311644               0                                     6.375                 0                   0      No
       17311645               0                                     6.375                 0                   0      No
       17311646               0                                     6.625                 0                   0      No
       17311647               0                                     6.375                 0                   0      No
       17311648               0                                      6.75                 0                   0      Yes
       17311649               0                                     7.125                 0                   0      No
       17311650               0                                      6.75                 0                   0      No
       17311651               0                                       6.5                 0                   0      No
       17311652               0                                     6.375                 0                   0      No
       17311653               0                                      6.25                 0                   0      No
       17311655               0                                     6.875                 0                   0      Yes
       17311656               0                                     6.625                 0                   0      No
       17311657               0                                     6.375                 0                   0      No
       17311658               0                                     6.375                 0                   0      No
       17311659               0                                     6.375                 0                   0      No
       17311662               0                                     7.375                 0                   0      Yes
       17311663               0                                      6.25                 0                   0      Yes
       17311664               0                                      6.75                 0                   0      No
       17311665               0                                     6.375                 0                   0      No
       17311666               0                                       6.5                 0                   0      No
       17311667               0                                       6.5                 0                   0      No
       17311668               0                                      6.75                 0                   0      No
       17311669               0                                       6.5                 0                   0      No
       17311670               0                                       6.5                 0                   0      No
       17311671               0                                         7                 0                   0      Yes
       17311673               0                                     6.875                 0                   0      No
       17311674               0                                     7.375                 0                   0      No
       17311675               0                                      6.75                 0                   0      No
       17311677               0                                     6.625                 0                   0      Yes
       17311678               0                                      6.75                 0                   0      No
       17311679               0                                     6.625                 0                   0      No
       17311680               0                                     6.875                 0                   0      No
       17311681               0                                     6.625                 0                   0      No
       17311682               0                                     6.875                 0                   0      No
       17311683               0                                      7.25                 0                   0      Yes
       17311684               0                                      6.75                 0                   0      No
       17311685               0                                     6.875                 0                   0      Yes
       17311686               0                                     6.625                 0                   0      Yes
       17311687               0                                      6.75                 0                   0      No
       17311688               0                                     7.375                 0                   0      No
       17311689               0                                      6.75                 0                   0      No
       17311690               0                                     6.875                 0                   0      No
       17311691               0                                      6.25                 0                   0      Yes
       17311692               0                                         7                 0                   0      No
       17311693               0                                     6.875                 0                   0      No
       17311694               0                                     6.875                 0                   0      No
       17311695               0                                       6.5                 0                   0      No
       17311696               0                                      6.75                 0                   0      No
       17311697               0                                      7.25                 0                   0      No
       17311698               0                                      6.75                 0                   0      No
       17311699               0                                     6.875                 0                   0      No
       17311700               0                                      6.75                 0                   0      No
       17311701               0                                      7.25                 0                   0      Yes
       17311635               0                                     6.625                 0                   0      No
       17311636               0                                     6.875                 0                   0      No
       17311637               0                                      6.75                 0                   0      No
       17311638               0                                       6.5                 0                   0      No
       17255495               0                                      6.25                 0                   0      No
       17256975               0                                     6.375                 0                   0      No
       17311902               0                                      6.75                 0                   0      No
       17311903               0                                         7                 0                   0      No
       17311905               0                                     6.125                 0                   0      No
       17311910               0                                      6.25                 0                   0      No
       17322785               0                                       6.5                 0                   0      Yes
       17153067               0                                     6.375                 0                   0      No
       17230237               0                                       6.5                 0                   0      No
       17304293               0                                      6.75                 0                   0      No
       17304303               0                                      6.75                 0                   0      No
       17312237               0                                     6.875                 0                   0      Yes
       17303541               0                                       6.5                 0                   0      Yes
       17278974               0                                      6.75                 0                   0      No
       17279607               0                                     6.625                 0                   0      Yes
       17279642               0                                      7.25                 0                   0      No
       17279645               0                                     6.625                 0                   0      No
       17280101               0                                       7.5                 0                   0      Yes
       17280056               0                                       6.5                 0                   0      Yes
       17286603               0                                     6.875                 0                   0      Yes
       17293515               0                                      6.75                 0                   0      Yes
       17293467               0                                       6.5                 0                   0      Yes
       17295283               0                                      6.75                 0                   0      Yes
       17295296               0                                     6.875                 0                   0      Yes
       17297220               0                                      6.75                 0                   0      Yes
       17272301               0                                     6.375                 0                   0      Yes
       17274240               0                                      6.25                 0                   0      No
       17274244               0                                     6.375                 0                   0      Yes
       17274322               0                                       7.5                 0                   0      Yes
       17274327               0                                       6.5                 0                   0      Yes
       17265797               0                                       6.5                 0                   0      Yes
       17255945               0                                       6.5                 0                   0      Yes
       17264110               0                                       6.5                 0                   0      No
       17128540               0                                         6                 0                   0      No
       17051919               0                                         6                 0                   0      No
       17175596               0                                       6.5                 0                   0      No
       17182068               0                                      6.75                 0                   0      No
       17275050               0                                     6.875                 0                   0      No
       17275051               0                                      6.25                 0                   0      No
       17275052               0                                         6                 0                   0      No
       17275053               0                                     5.875                 0                   0      No
       17275054               0                                     6.125                 0                   0      No
       17275055               0                                         6                 0                   0      No
       17275056               0                                         6                 0                   0      No
       17275057               0                                     6.125                 0                   0      No
       17275058               0                                     6.375                 0                   0      No
       17275059               0                                       6.5                 0                   0      No
       17275060               0                                         6                 0                   0      No
       17275061               0                                     6.875                 0                   0      No
       17275062               0                                     5.875                 0                   0      No
       17275063               0                                      6.25                 0                   0      No
       17275065               0                                     6.125                 0                   0      No
       17275067               0                                     6.125                 0                   0      No
       17275068               0                                     6.125                 0                   0      No
       17275070               0                                         6                 0                   0      No
       17275071               0                                     6.125                 0                   0      No
       17275072               0                                     6.375                 0                   0      No
       17275073               0                                         6                 0                   0      No
       17275074               0                                      5.75                 0                   0      No
       17275075               0                                     6.375                 0                   0      No
       17275076               0                                     6.125                 0                   0      No
       17275077               0                                      5.75                 0                   0      No
       17275078               0                                       6.5                 0                   0      No
       17275079               0                                      6.25                 0                   0      No
       17275080               0                                     6.375                 0                   0      No
       17275082               0                                       5.5                 0                   0      No
       17275083               0                                         6                 0                   0      No
       17275084               0                                         6                 0                   0      No
       17275085               0                                         6                 0                   0      No
       17275086               0                                     6.125                 0                   0      No
       17275087               0                                     5.875                 0                   0      No
       17275088               0                                     5.875                 0                   0      No
       17275089               0                                      6.75                 0                   0      No
       17275090               0                                     6.375                 0                   0      No
       17275091               0                                         6                 0                   0      No
       17275092               0                                         6                 0                   0      No
       17275093               0                                      6.75                 0                   0      No
       17275094               0                                      6.25                 0                   0      No
       17275095               0                                      6.25                 0                   0      No
       17275096               0                                     6.125                 0                   0      No
       17275097               0                                     5.875                 0                   0      No
       17275098               0                                     6.125                 0                   0      No
       17275099               0                                     5.875                 0                   0      No
       17275100               0                                     5.875                 0                   0      No
       17275101               0                                         7                 0                   0      No
       17275102               0                                         6                 0                   0      No
       17275103               0                                      6.25                 0                   0      No
       17275104               0                                     5.875                 0                   0      No
       17275105               0                                     6.625                 0                   0      No
       17275106               0                                         6                 0                   0      No
       17275107               0                                     5.875                 0                   0      No
       17275108               0                                     5.875                 0                   0      No
       17275109               0                                         6                 0                   0      No
       17275110               0                                      5.75                 0                   0      No
       17275112               0                                       6.5                 0                   0      No
       17275113               0                                     6.375                 0                   0      No
       17275114               0                                      6.75                 0                   0      No
       17275116               0                                      6.25                 0                   0      No
       17275117               0                                         6                 0                   0      No
       17275118               0                                     6.375                 0                   0      No
       17275119               0                                      6.25                 0                   0      No
       17275120               0                                      6.75                 0                   0      No
       17275121               0                                     5.375                 0                   0      No
       17275122               0                                     6.125                 0                   0      No
       17275123               0                                     5.875                 0                   0      No
       17275124               0                                     5.875                 0                   0      No
       17275125               0                                      5.75                 0                   0      No
       17275126               0                                     6.375                 0                   0      No
       17275127               0                                     5.875                 0                   0      No
       17275128               0                                     6.375                 0                   0      No
       17275129               0                                      6.25                 0                   0      No
       17275130               0                                     5.875                 0                   0      No
       17275131               0                                     5.875                 0                   0      No
       17275132               0                                      5.75                 0                   0      No
       17275134               0                                     6.375                 0                   0      No
       17275135               0                                     5.875                 0                   0      No
       17275136               0                                     5.875                 0                   0      No
       17275137               0                                      5.75                 0                   0      No
       17275138               0                                         6                 0                   0      No
       17275140               0                                       6.5                 0                   0      No
       17275141               0                                     5.875                 0                   0      No
       17275142               0                                     6.375                 0                   0      No
       17275143               0                                     6.125                 0                   0      No
       17275144               0                                      6.75                 0                   0      No
       17275145               0                                     6.125                 0                   0      No
       17275146               0                                         6                 0                   0      No
       17275147               0                                         6                 0                   0      No
       17275148               0                                      6.25                 0                   0      No
       17275149               0                                     6.375                 0                   0      No
       17275150               0                                     5.875                 0                   0      No
       17275151               0                                       6.5                 0                   0      No
       17275152               0                                     6.125                 0                   0      No
       17275153               0                                         6                 0                   0      No
       17275154               0                                      6.25                 0                   0      No
       17275155               0                                         6                 0                   0      No
       17275156               0                                       6.5                 0                   0      No
       17275036               0                                     6.125                 0                   0      No
       17275037               0                                      6.75                 0                   0      No
       17275038               0                                         6                 0                   0      No
       17275041               0                                      6.75                 0                   0      No
       17275042               0                                       6.5                 0                   0      No
       17275043               0                                     5.875                 0                   0      No
       17275044               0                                       6.5                 0                   0      No
       17275045               0                                     6.625                 0                   0      No
       17275046               0                                         6                 0                   0      No
       17275049               0                                     6.875                 0                   0      No
       17275157               0                                       6.5                 0                   0      No
       17275158               0                                      5.75                 0                   0      No
       17275159               0                                     6.625                 0                   0      No
       17275160               0                                     5.875                 0                   0      No
       17275161               0                                     6.125                 0                   0      No
       17275162               0                                     6.625                 0                   0      No
       17275163               0                                       6.5                 0                   0      No
       17275164               0                                     6.875                 0                   0      No
       17275165               0                                      5.75                 0                   0      No
       17275167               0                                         8                 0                   0      No
       17275168               0                                         6                 0                   0      No
       17275169               0                                     5.875                 0                   0      No
       17275170               0                                         6                 0                   0      No
       17275171               0                                     5.875                 0                   0      No
       17275172               0                                       8.5                 0                   0      No
       17275173               0                                      5.75                 0                   0      No
       17275174               0                                         6                 0                   0      No
       17275175               0                                     6.625                 0                   0      No
       17275176               0                                      7.25                 0                   0      No
       17275177               0                                       6.5                 0                   0      No
       17275178               0                                       6.5                 0                   0      No
       17275179               0                                         6                 0                   0      No
       17275180               0                                     6.375                 0                   0      No
       17311630               0                                       6.5                 0                   0      No
       17311631               0                                     6.375                 0                   0      Yes
       17311632               0                                         7                 0                   0      No
       17311633               0                                     6.625                 0                   0      No
       17311634               0                                         7                 0                   0      No

LOAN_SEQ             LIEN                 BALLOON           AMORT_          IO_PERIOD
                                                            TERM1
-------------------------------------------------------------------------------------------
       17256879      First Lien           No                       360                   0
       17264126      First Lien           No                       360                   0
       17325358      First Lien           No                       360                   0
       17256859      First Lien           No                       360                   0
       17259488      First Lien           No                       360                   0
       17298204      First Lien           No                       360                 120
       17169204      First Lien           No                       360                   0
       17279835      First Lien           No                       180                   0
       17279836      First Lien           No                       180                   0
       17279837      First Lien           No                       180                   0
       17279838      First Lien           No                       180                   0
       17279839      First Lien           No                       180                   0
       17279840      First Lien           No                       180                   0
       17279841      First Lien           No                       180                   0
       17279842      First Lien           No                       180                   0
       17279843      First Lien           No                       180                   0
       17279844      First Lien           No                       180                   0
       17279845      First Lien           No                       180                   0
       17279846      First Lien           No                       180                   0
       17279847      First Lien           No                       180                   0
       17279848      First Lien           No                       180                   0
       17279849      First Lien           No                       180                   0
       17275039      First Lien           No                       180                   0
       17275040      First Lien           No                       180                   0
       17275047      First Lien           No                       180                   0
       17275064      First Lien           No                       180                   0
       17275066      First Lien           No                       180                   0
       17275111      First Lien           No                       180                   0
       17275115      First Lien           No                       180                   0
       17275139      First Lien           No                       180                   0
       17152818      First Lien           No                       360                 120
       17298145      First Lien           No                       360                 120
       17299558      First Lien           No                       360                   0
       17299514      First Lien           No                       360                 120
       17301699      First Lien           No                       360                 120
       17302231      First Lien           No                       360                 120
       17302239      First Lien           No                       360                 120
       17301598      First Lien           No                       180                   0
       17301606      First Lien           No                       360                 120
       17301607      First Lien           No                       360                   0
       17301620      First Lien           No                       360                 120
       17272334      First Lien           No                       360                   0
       17267318      First Lien           No                       360                   0
       17265508      First Lien           No                       360                 120
       17293451      First Lien           No                       360                   0
       17255930      First Lien           No                       360                   0
       17312146      First Lien           No                       360                   0
       17326715      First Lien           No                       360                 120
       17323136      First Lien           No                       360                 120
       17325278      First Lien           No                       360                   0
       17325635      First Lien           No                       360                 120
       17325667      First Lien           No                       360                   0
       17325722      First Lien           No                       360                   0
       17325723      First Lien           No                       360                 120
       17312267      First Lien           No                       360                   0
       17322699      First Lien           No                       360                   0
       17311728      First Lien           No                       360                   0
       17311826      First Lien           No                       360                 120
       17298836      First Lien           No                       360                   0
       17299499      First Lien           No                       360                   0
       17301733      First Lien           No                       360                   0
       17302144      First Lien           No                       360                   0
       17302214      First Lien           No                       360                   0
       17302541      First Lien           No                       360                 120
       17303766      First Lien           No                       240                   0
       17303878      First Lien           No                       360                   0
       17297180      First Lien           No                       360                   0
       17286618      First Lien           No                       360                   0
       17214309      First Lien           No                       360                   0
       17217053      First Lien           No                       360                 120
       17248384      First Lien           No                       360                   0
       17251383      First Lien           No                       360                   0
       17215989      First Lien           No                       360                 120
       17215990      First Lien           No                       360                   0
       17215991      First Lien           No                       360                   0
       17215992      First Lien           No                       360                 120
       17215993      First Lien           No                       360                   0
       17215994      First Lien           No                       360                 120
       17215995      First Lien           No                       360                   0
       17215996      First Lien           No                       360                 120
       17215997      First Lien           Yes                      480                   0
       17215998      First Lien           No                       360                 120
       17215999      First Lien           No                       360                 120
       17216000      First Lien           No                       360                 120
       17216001      First Lien           No                       360                 120
       17216002      First Lien           No                       360                   0
       17216003      First Lien           No                       360                 120
       17216004      First Lien           No                       360                 120
       17216005      First Lien           No                       360                   0
       17216006      First Lien           No                       360                 120
       17216008      First Lien           No                       360                 120
       17216009      First Lien           No                       360                 120
       17216011      First Lien           No                       360                 120
       17216012      First Lien           No                       360                 120
       17216013      First Lien           No                       360                 120
       17216014      First Lien           No                       360                 120
       17216015      First Lien           No                       360                 120
       17216017      First Lien           No                       360                 120
       17216018      First Lien           No                       360                   0
       17216019      First Lien           No                       360                   0
       17216020      First Lien           No                       360                   0
       17216021      First Lien           No                       360                 120
       17216022      First Lien           No                       360                 120
       17216023      First Lien           No                       360                 120
       17216024      First Lien           No                       360                 120
       17216026      First Lien           No                       360                 120
       17216027      First Lien           No                       360                 120
       17216028      First Lien           No                       360                 120
       17216029      First Lien           No                       360                 120
       17216030      First Lien           No                       360                   0
       17216031      First Lien           No                       360                 120
       17216033      First Lien           No                       360                 120
       17216034      First Lien           No                       360                 120
       17216035      First Lien           No                       360                   0
       17216038      First Lien           No                       360                   0
       17216039      First Lien           No                       360                   0
       17216040      First Lien           No                       360                 120
       17216041      First Lien           No                       360                   0
       17216042      First Lien           No                       360                 120
       17246636      First Lien           No                       360                   0
       17255952      First Lien           No                       360                   0
       17215981      First Lien           No                       360                 120
       17215982      First Lien           No                       360                 120
       17215983      First Lien           No                       360                   0
       17215984      First Lien           No                       360                 120
       17215985      First Lien           No                       360                 120
       17215986      First Lien           No                       360                 120
       17215988      First Lien           No                       360                 120
       17215977      First Lien           No                       360                 120
       17215978      First Lien           No                       360                 120
       17215979      First Lien           No                       360                   0
       17215980      First Lien           No                       360                   0
       17215962      First Lien           No                       360                   0
       17215963      First Lien           No                       360                   0
       17215967      First Lien           No                       360                 120
       17215970      First Lien           No                       360                   0
       17215971      First Lien           No                       360                 120
       17215974      First Lien           No                       360                 120
       17215975      First Lien           No                       360                 120
       17215976      First Lien           No                       360                   0
       17215955      First Lien           No                       360                 120
       17215960      First Lien           No                       360                   0
       17066770      First Lien           No                       360                   0
       17301599      First Lien           No                       360                 120
       17301600      First Lien           No                       360                 120
       17301601      First Lien           No                       360                   0
       17301602      First Lien           No                       360                   0
       17301603      First Lien           No                       360                 120
       17301604      First Lien           No                       360                 120
       17301605      First Lien           No                       360                   0
       17301608      First Lien           No                       360                   0
       17301609      First Lien           No                       360                   0
       17301610      First Lien           No                       360                 120
       17301611      First Lien           No                       360                 120
       17301612      First Lien           No                       360                 120
       17301613      First Lien           No                       360                   0
       17301614      First Lien           No                       360                 120
       17301615      First Lien           No                       360                 120
       17301616      First Lien           No                       360                 120
       17301617      First Lien           No                       360                 120
       17301618      First Lien           No                       360                   0
       17301619      First Lien           No                       360                 120
       17301621      First Lien           No                       360                   0
       17301622      First Lien           No                       360                   0
       17301624      First Lien           No                       360                   0
       17301625      First Lien           No                       360                   0
       17301626      First Lien           No                       360                 120
       17301627      First Lien           No                       360                 120
       17301628      First Lien           No                       360                 120
       17301630      First Lien           No                       360                   0
       17301631      First Lien           No                       360                   0
       17301632      First Lien           No                       360                 120
       17301633      First Lien           No                       360                 120
       17301634      First Lien           No                       360                 120
       17301635      First Lien           No                       360                 120
       17301636      First Lien           No                       360                 120
       17301637      First Lien           No                       360                   0
       17301638      First Lien           No                       360                 120
       17301639      First Lien           No                       360                 120
       17301640      First Lien           No                       360                 120
       17301641      First Lien           No                       360                 120
       17301642      First Lien           No                       360                   0
       17301643      First Lien           No                       360                   0
       17301644      First Lien           No                       360                 120
       17301645      First Lien           No                       360                 120
       17301646      First Lien           No                       180                   0
       17301647      First Lien           No                       360                   0
       17301648      First Lien           No                       360                   0
       17301649      First Lien           No                       360                 120
       17301650      First Lien           No                       360                   0
       17301651      First Lien           No                       360                   0
       17301652      First Lien           No                       360                 120
       17301653      First Lien           No                       360                 120
       17301654      First Lien           No                       360                 120
       17301655      First Lien           No                       360                 120
       17301656      First Lien           No                       360                   0
       17301657      First Lien           No                       360                   0
       17301658      First Lien           No                       360                 120
       17301659      First Lien           No                       360                 120
       17301660      First Lien           No                       360                 120
       17301661      First Lien           No                       360                 120
       17301662      First Lien           No                       360                 120
       17301663      First Lien           No                       360                 120
       17301664      First Lien           No                       360                 120
       17301665      First Lien           No                       360                 120
       17301666      First Lien           No                       360                 120
       17301667      First Lien           No                       360                   0
       17301668      First Lien           No                       360                 120
       17301669      First Lien           No                       360                 120
       17301670      First Lien           No                       360                 120
       17301671      First Lien           No                       360                 120
       17301672      First Lien           No                       360                   0
       17301673      First Lien           No                       360                 120
       17301674      First Lien           No                       360                 120
       17301675      First Lien           No                       360                 120
       17301676      First Lien           No                       360                 120
       17301677      First Lien           No                       360                   0
       17301678      First Lien           No                       360                 120
       17301679      First Lien           No                       360                 120
       17301680      First Lien           No                       360                 120
       17301681      First Lien           No                       360                 120
       17301682      First Lien           No                       360                   0
       17301684      First Lien           No                       360                 120
       17301685      First Lien           No                       360                   0
       17301686      First Lien           No                       360                   0
       17301687      First Lien           No                       360                 120
       17301688      First Lien           No                       360                 120
       17301689      First Lien           No                       360                 120
       17301690      First Lien           No                       360                 120
       17301691      First Lien           No                       360                   0
       17301692      First Lien           No                       360                   0
       17301693      First Lien           No                       360                 120
       17301694      First Lien           No                       360                 120
       17255554      First Lien           No                       360                   0
       17256994      First Lien           No                       360                   0
       17265615      First Lien           No                       360                 120
       17265616      First Lien           No                       360                 120
       17265618      First Lien           No                       360                 120
       17272390      First Lien           No                       360                   0
       17252917      First Lien           No                       360                   0
       17255498      First Lien           No                       360                 120
       17255501      First Lien           No                       360                   0
       17238727      First Lien           No                       360                   0
       17230234      First Lien           No                       360                   0
       17230245      First Lien           No                       360                   0
       17224468      First Lien           No                       360                   0
       17311639      First Lien           No                       360                   0
       17311640      First Lien           No                       180                   0
       17311643      First Lien           No                       360                 120
       17311644      First Lien           Yes                      360                   0
       17311645      First Lien           No                       360                   0
       17311646      First Lien           No                       360                 120
       17311647      First Lien           No                       360                 120
       17311648      First Lien           No                       360                 120
       17311649      First Lien           Yes                      360                   0
       17311650      First Lien           No                       360                   0
       17311651      First Lien           No                       360                   0
       17311652      First Lien           No                       360                   0
       17311653      First Lien           No                       360                   0
       17311655      First Lien           No                       360                 120
       17311656      First Lien           No                       360                 120
       17311657      First Lien           No                       180                   0
       17311658      First Lien           No                       360                 120
       17311659      First Lien           No                       360                   0
       17311662      First Lien           No                       360                 120
       17311663      First Lien           No                       360                   0
       17311664      First Lien           No                       360                   0
       17311665      First Lien           No                       360                 120
       17311666      First Lien           No                       360                   0
       17311667      First Lien           No                       360                 120
       17311668      First Lien           No                       360                   0
       17311669      First Lien           No                       360                 120
       17311670      First Lien           No                       360                 120
       17311671      First Lien           No                       360                   0
       17311673      First Lien           No                       360                 120
       17311674      First Lien           Yes                      360                   0
       17311675      First Lien           No                       360                 120
       17311677      First Lien           No                       360                   0
       17311678      First Lien           No                       360                   0
       17311679      First Lien           No                       360                   0
       17311680      First Lien           No                       360                 120
       17311681      First Lien           No                       360                   0
       17311682      First Lien           No                       360                   0
       17311683      First Lien           No                       360                 120
       17311684      First Lien           No                       360                   0
       17311685      First Lien           No                       360                   0
       17311686      First Lien           No                       360                   0
       17311687      First Lien           No                       360                   0
       17311688      First Lien           No                       360                 120
       17311689      First Lien           No                       360                 120
       17311690      First Lien           No                       360                 120
       17311691      First Lien           No                       360                 120
       17311692      First Lien           No                       360                 120
       17311693      First Lien           No                       360                   0
       17311694      First Lien           No                       360                 120
       17311695      First Lien           No                       360                   0
       17311696      First Lien           No                       360                 120
       17311697      First Lien           No                       360                 120
       17311698      First Lien           No                       360                 120
       17311699      First Lien           No                       360                 120
       17311700      First Lien           No                       360                   0
       17311701      First Lien           No                       360                 120
       17311635      First Lien           No                       360                   0
       17311636      First Lien           No                       360                 120
       17311637      First Lien           No                       360                   0
       17311638      First Lien           No                       360                   0
       17255495      First Lien           No                       360                 120
       17256975      First Lien           No                       360                 120
       17311902      First Lien           No                       360                 120
       17311903      First Lien           No                       360                 120
       17311905      First Lien           No                       360                 120
       17311910      First Lien           No                       360                 120
       17322785      First Lien           No                       360                   0
       17153067      First Lien           No                       360                   0
       17230237      First Lien           No                       360                 120
       17304293      First Lien           No                       360                 120
       17304303      First Lien           No                       360                 120
       17312237      First Lien           No                       360                 120
       17303541      First Lien           No                       360                   0
       17278974      First Lien           No                       360                 120
       17279607      First Lien           No                       360                   0
       17279642      First Lien           No                       360                   0
       17279645      First Lien           No                       360                   0
       17280101      First Lien           No                       360                   0
       17280056      First Lien           No                       360                   0
       17286603      First Lien           No                       360                   0
       17293515      First Lien           No                       360                   0
       17293467      First Lien           No                       240                   0
       17295283      First Lien           No                       360                 120
       17295296      First Lien           No                       360                 120
       17297220      First Lien           No                       360                 120
       17272301      First Lien           No                       360                   0
       17274240      First Lien           No                       360                 120
       17274244      First Lien           No                       360                 120
       17274322      First Lien           No                       360                   0
       17274327      First Lien           No                       360                 120
       17265797      First Lien           No                       240                   0
       17255945      First Lien           No                       360                   0
       17264110      First Lien           No                       360                 120
       17128540      First Lien           No                       180                   0
       17051919      First Lien           No                       360                 120
       17175596      First Lien           No                       360                   0
       17182068      First Lien           No                       360                   0
       17275050      First Lien           No                       180                   0
       17275051      First Lien           No                       180                   0
       17275052      First Lien           No                       180                   0
       17275053      First Lien           No                       180                   0
       17275054      First Lien           No                       180                   0
       17275055      First Lien           No                       180                   0
       17275056      First Lien           No                       180                   0
       17275057      First Lien           No                       180                   0
       17275058      First Lien           No                       180                   0
       17275059      First Lien           No                       180                   0
       17275060      First Lien           No                       180                   0
       17275061      First Lien           No                       180                   0
       17275062      First Lien           No                       180                   0
       17275063      First Lien           No                       180                   0
       17275065      First Lien           No                       180                   0
       17275067      First Lien           No                       180                   0
       17275068      First Lien           No                       180                   0
       17275070      First Lien           No                       180                   0
       17275071      First Lien           No                       180                   0
       17275072      First Lien           No                       180                   0
       17275073      First Lien           No                       180                   0
       17275074      First Lien           No                       180                   0
       17275075      First Lien           No                       180                   0
       17275076      First Lien           No                       180                   0
       17275077      First Lien           No                       180                   0
       17275078      First Lien           No                       180                   0
       17275079      First Lien           No                       180                   0
       17275080      First Lien           No                       180                   0
       17275082      First Lien           No                       180                   0
       17275083      First Lien           No                       180                   0
       17275084      First Lien           No                       180                   0
       17275085      First Lien           No                       180                   0
       17275086      First Lien           No                       180                   0
       17275087      First Lien           No                       180                   0
       17275088      First Lien           No                       180                   0
       17275089      First Lien           No                       180                   0
       17275090      First Lien           No                       180                   0
       17275091      First Lien           No                       180                   0
       17275092      First Lien           No                       180                   0
       17275093      First Lien           No                       180                   0
       17275094      First Lien           No                       180                   0
       17275095      First Lien           No                       180                   0
       17275096      First Lien           No                       180                   0
       17275097      First Lien           No                       180                   0
       17275098      First Lien           No                       180                   0
       17275099      First Lien           No                       180                   0
       17275100      First Lien           No                       180                   0
       17275101      First Lien           No                       180                   0
       17275102      First Lien           No                       180                   0
       17275103      First Lien           No                       180                   0
       17275104      First Lien           No                       180                   0
       17275105      First Lien           No                       180                   0
       17275106      First Lien           No                       180                   0
       17275107      First Lien           No                       180                   0
       17275108      First Lien           No                       180                   0
       17275109      First Lien           No                       180                   0
       17275110      First Lien           No                       180                   0
       17275112      First Lien           No                       180                   0
       17275113      First Lien           No                       180                   0
       17275114      First Lien           No                       180                   0
       17275116      First Lien           No                       180                   0
       17275117      First Lien           No                       180                   0
       17275118      First Lien           No                       180                   0
       17275119      First Lien           No                       180                   0
       17275120      First Lien           No                       180                   0
       17275121      First Lien           No                       180                   0
       17275122      First Lien           No                       180                   0
       17275123      First Lien           No                       180                   0
       17275124      First Lien           No                       180                   0
       17275125      First Lien           No                       180                   0
       17275126      First Lien           No                       180                   0
       17275127      First Lien           No                       180                   0
       17275128      First Lien           No                       180                   0
       17275129      First Lien           No                       180                   0
       17275130      First Lien           No                       180                   0
       17275131      First Lien           No                       180                   0
       17275132      First Lien           No                       180                   0
       17275134      First Lien           No                       180                   0
       17275135      First Lien           No                       180                   0
       17275136      First Lien           No                       180                   0
       17275137      First Lien           No                       180                   0
       17275138      First Lien           No                       180                   0
       17275140      First Lien           No                       180                   0
       17275141      First Lien           No                       180                   0
       17275142      First Lien           No                       180                   0
       17275143      First Lien           No                       180                   0
       17275144      First Lien           No                       180                   0
       17275145      First Lien           No                       180                   0
       17275146      First Lien           No                       180                   0
       17275147      First Lien           No                       180                   0
       17275148      First Lien           No                       180                   0
       17275149      First Lien           No                       180                   0
       17275150      First Lien           No                       180                   0
       17275151      First Lien           No                       180                   0
       17275152      First Lien           No                       180                   0
       17275153      First Lien           No                       180                   0
       17275154      First Lien           No                       180                   0
       17275155      First Lien           No                       180                   0
       17275156      First Lien           No                       180                   0
       17275036      First Lien           No                       180                   0
       17275037      First Lien           No                       180                   0
       17275038      First Lien           No                       180                   0
       17275041      First Lien           No                       180                   0
       17275042      First Lien           No                       180                   0
       17275043      First Lien           No                       180                   0
       17275044      First Lien           No                       180                   0
       17275045      First Lien           No                       180                   0
       17275046      First Lien           No                       180                   0
       17275049      First Lien           No                       180                   0
       17275157      First Lien           No                       180                   0
       17275158      First Lien           No                       180                   0
       17275159      First Lien           No                       180                   0
       17275160      First Lien           No                       180                   0
       17275161      First Lien           No                       180                   0
       17275162      First Lien           No                       180                   0
       17275163      First Lien           No                       180                   0
       17275164      First Lien           No                       180                   0
       17275165      First Lien           No                       180                   0
       17275167      First Lien           No                       180                   0
       17275168      First Lien           No                       180                   0
       17275169      First Lien           No                       180                   0
       17275170      First Lien           No                       180                   0
       17275171      First Lien           No                       180                   0
       17275172      First Lien           No                       180                   0
       17275173      First Lien           No                       180                   0
       17275174      First Lien           No                       180                   0
       17275175      First Lien           No                       180                   0
       17275176      First Lien           No                       180                   0
       17275177      First Lien           No                       180                   0
       17275178      First Lien           No                       180                   0
       17275179      First Lien           No                       180                   0
       17275180      First Lien           No                       180                   0
       17311630      First Lien           No                       360                 120
       17311631      First Lien           No                       360                 120
       17311632      First Lien           No                       360                 120
       17311633      First Lien           No                       360                 120
       17311634      First Lien           No                       360                   0

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

    

    Available
      Exchanges of the Exchangeable Certificates

     

    Available Exchanges of the Exchangeable Certificates
      for Exchanged Certificates(1)(2)

    
      	
              
                Classes
                  of Exchangeable Certificates

              

            	 	
              
                Related
                  Classes of Exchanged Certificates

              

            
	
              Classes
                of Exchangeable
                Certificates

            	
              Current
                Principal Amount

            	 	
              Classes
                of Exchanged
                Certificates

            	
              Current
                Principal Amount

            	
              Pass-Through
                Rate

            
	
              Combination
                1

            	 	 	 	 
	
              Class
                1-A-1

            	
              $147,800,000

            	 	
              Class
                I-A-3(3)
                (4)

            	
              $118,240,000

            	
              Floating
                Rate(5)

            
	 	 	 	
              Class
                I-A-4(3)
                (4)

            	
              $29,560,000

            	
              Inverse
                Floating Rate(5)

            
	
              Combination
                2

            	 	 	 	 
	
              Class
                1-A-1

            	
              $147,800,000

            	 	
              Class
                I-A-5(4)(3)

            	
              $109,114,000

            	
              6.00%

            
	 	 	 	
              Class
                I-A-6
                (4)(3)

            	
              $23,906,000

            	
              6.00%

            
	 	 	 	
              Class
                I-A-7(4)(3)

            	
              $14,780,000

            	
              6.00%
                (Lockout)

            

    

    _________

    
      	
              (1)

            	
              Exchangeable
                Certificates and Exchanged Certificates may be exchanged only in
                the
                proportions shown in this Exhibit C. In any exchange, the relative
                proportions of the Exchangeable Certificates or Exchanged Certificates
                to
                be delivered (or, if applicable, received) in such exchange will
                equal the
                proportions reflected by the outstanding Current Principal Amounts
                of the
                Exchangeable Certificates or Exchanged Certificates at the time of
                exchange.

            

    

     

    
      	
              (2)

            	
              If,
                as a result of a proposed exchange, a Certificateholder would hold
                a
                Exchangeable Certificate or Exchanged Certificate of a class in an
                amount
                less than the applicable minimum denomination for that class, the
                Certificateholder will be unable to effect the proposed exchange.
                See
                “Description of the Certificates— Book-Entry Certificates;
                Denominations” in the prospectus
                supplement.

            

    

     

    
      	
              (3)

            	
              On
                each distribution date, holders of each Class of Exchanged Certificates
                will be entitled to receive interest distributions in an amount equal
                to
                the Accrued Certificate Interest on that class on each distribution
                date
                based on the pass-through rate as described in the prospectus
                supplement.

            

    

     

    
      	
              (4)

            	
              On
                each distribution date, principal allocable to the Exchanged Certificates
                will be distributed in the following order of
                priority:

            

    

     

    (A)           Combination
      Group I. To the Class I-A-3 Certificates and Class I-A-4 Certificates,
      concurrently, on a pro rata basis until the Current Principal Amounts thereof
      are reduced to zero.

     

    (B)           Combination
      Group II. To the Class I-A-5, Class I-A-6 and Class I-A-7 Certificates in
      the following order of priority:

     

    
      	
               

            	
              (a)

            	
              to
                the Class I-A-7 Certificates, the Lockout Priority Amount, until
                its
                Current Principal Amount is reduced to
                zero;

            

    

     

    
      	
               

            	
              (b)

            	
              sequentially,
                to the Class I-A-5 Certificates and Class I-A-6 Certificates, in
                that
                order, in each case, until their respective Current Principal Amounts
                are
                reduced to zero; and

            

    

     

    
      	
               

            	
              (c)

            	
              to
                the Class I-A-7 Certificates, without regard to the Lockout Priority
                Amount, until its Current Principal Amount is reduced to
                zero.

            

    

     

    
      (5)

    

     

    
      	
              
                Class

              

            	 	
              
                Maximum/Minimum

                Pass-Through
                  Rate

              

            	 	
              
                Formula
                  for Calculation of Class

                Pass-Through
                  Rate

              

            
	
              Class
                I-A-3

            	 	
              7.50%/0.70%

            	 	
              One-Month
                LIBOR + 0.70%

            
	
              Class
                I-A-4

            	 	
              27.2%/0.00%

            	 	
              27.20%
                - (4 x One-Month LIBOR)

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D-1

     

    REQUEST
      FOR RELEASE OF DOCUMENTS – WELLS FARGO

     

    To:           Wells
      Fargo Bank, N.A.

    1015
      10th
      Avenue

    Minneapolis,
      Minnesota 55414

    

    
      	
              RE:

            	
              Custodial
                Agreement dated as of

            

    

    August
      31, 2007, among SAMI II,

    EMC
      Mortgage Corporation, as

    Master
      Servicer, U.S. Bank National

    Association
      as Trustee and Wells Fargo

    Bank,
      National Association as Custodian

    

    In
      connection with the administration of the Mortgage Loans held by you pursuant
      to
      the above-captioned Custodial Agreement, we request the release, and hereby
      acknowledge receipt, of the Mortgage File for the Mortgage Loan described below,
      for the reason indicated.

     

    Mortgage
      Loan Number:

     

    Mortgagor
      Name, Address & Zip Code:

     

    Reason
      for Requesting Documents (check one):

     

    
      	
              _____

            	
              1.

            	
              Mortgage
                Paid in Full and proceeds have been deposited into the Custodial
                Account

            

    

     

    
      	
              _____

            	
              2.

            	
              Foreclosure

            

    

     

    
      	
              _____

            	
              3.

            	
              Substitution

            

    

     

    
      	
              _____

            	
              4.

            	
              Other
                Liquidation

            

    

     

    
      	
              _____

            	
              5.

            	
              Nonliquidation                                 Reason:
                ____________________________________

            	 

    

     

    
      	
              _____

            	
              6.

            	
              California
                Mortgage Loan paid in full

            

    

     

    
      	
               

            	
              By:
                

            	 	 
	 	 	
              (authorized
                signer)

            	 
	 	
              Issuer:   

            	 	 
	 	Address: 
	 	 
	 	Date:	 	 

    

                                                            

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                                                              

                                                                   

                                                                

    EXHIBIT
      D-2

     

    REQUEST
      FOR RELEASE OF DOCUMENTS – TREASURY BANK

     

    To:          Treasury
      Bank, A Division of Countrywide Bank FSB

    4100
      E.
      Los Angeles Avenue

    Simi
      Valley, California 93063

    Facsimile:  (805)
      577-6069

    

    
      	
              RE:

            	
              Custodial
                Agreement dated as of

            

    

    August
      31, 2007, among SAMI II,

    EMC
      Mortgage Corporation, as

    Master
      Servicer, U.S. Bank National

    Association
      as Trustee and Treasury Bank,

    A
      Division of Countrywide Bank, FSB, as Custodian

    

    In
      connection with the administration of the Mortgage Loans held by you pursuant
      to
      the above-captioned Custodial Agreement, we request the release, and hereby
      acknowledge receipt, of the Mortgage File for the Mortgage Loan described below,
      for the reason indicated.

     

    Mortgage
      Loan Number:

     

    Mortgagor
      Name, Address & Zip Code:

     

    Reason
      for Requesting Documents (check one):

     

    
      	
              _____

            	
              1.

            	
              Mortgage
                Paid in Full and proceeds have been deposited into the Custodial
                Account

            

    

     

    
      	
              _____

            	
              2.

            	
              Foreclosure

            

    

     

    
      	
              _____

            	
              3.

            	
              Substitution

            

    

     

    
      	
              _____

            	
              4.

            	
              Other
                Liquidation

            

    

     

    
      	
              _____

            	
              5.

            	
              Nonliquidation                                 Reason:
                ____________________________________

            	 

    

     

    
      	
              _____

            	
              6.

            	
              California
                Mortgage Loan paid in full

            

    

     

    
       

      
        	
                 

              	
                By:
                  

              	 	 
	 	 	
                (authorized
                  signer)

              	 
	 	
                Issuer:   

              	 	 
	 	Address: 
	 	 
	 	Date:	 	 

      

                                                              

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      E

     

    FORM
      OF
      TRANSFEREE AFFIDAVIT AND AGREEMENT

     

     

    
      	 	
              Affidavit
                pursuant to Section 860E(e)(4) of the Internal Revenue Code of 1986,
                as
                amended, and for other purposes

            

    

     

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

     

    The
      undersigned is the [Title of Officer] of [Name of Transferee] (the “Investor”),
      the proposed transferee of an Ownership Interest in the Prime Mortgage Trust, Mortgage
      Pass-Through Certificates, Series 2007-3, Class [_]-R-[_] Certificates
      (the “Certificates”) issued pursuant to the Pooling and Servicing Agreement,
      dated as of August 1, 2007 (the “Agreement”), among Structured Asset Mortgage
      Investments II Inc. as depositor (the “Depositor”), EMC Mortgage Corporation as
      seller and master servicer, and U.S. Bank National Association as trustee (the
      “Trustee”), and makes this affidavit on behalf of the Investor for the
      benefit of the Depositor and the Trustee.  Capitalized terms used, but
      not defined herein, shall have the meanings ascribed to such terms in the
      Agreement.

     

    1.  The
      Investor is, as of the date hereof, and will be, as of the date of the Transfer,
      a Permitted Transferee.  The Investor is not acquiring its ownership
      interest in the Certificates for the account of a Person other than a Permitted
      Transferee.

     

    2.  The
      Investor has been advised and understands that (i) a tax will be imposed on
      Transfers of the Certificates to Persons that are not Permitted Transferees;
      (ii) such tax will be imposed on the transferor, or, if such Transfer is
      through an agent (which includes a broker, nominee or middleman) for a Person
      that is not a Permitted Transferee, on the agent; and (iii) the Person
      otherwise liable for the tax shall be relieved of liability for the tax if
      a
      subsequent transferee furnishes 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.

     

    3.  The
      Investor has been advised and understands that a tax will be imposed on a
“pass-through entity” holding the Certificates if at any time during the taxable
      year of the pass-through entity a Person that is not a Permitted Transferee
      is
      the record holder of an interest in such entity.  The Investor
      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.)

     

    4.  The
      Investor has reviewed the provisions of Section 6.02(i) of the Agreement and
      understands the legal consequences of the acquisition of an Ownership Interest
      in the Certificates, including, without limitation, the restrictions on
      subsequent Transfers and the provisions regarding voiding any prohibited
      Transfers and mandatory sales.  The Investor expressly agrees to be
      bound by, and to abide by, such provisions of the Agreement and the restrictions
      noted on the face of the Certificates.  The Investor understands and
      agrees that any breach of any of the representations included herein shall
      render the Transfer of the Certificates to the Investor contemplated hereby
      null
      and void. The Investor consents to any amendment of the Agreement that shall
      be
      deemed necessary by the Depositor (upon advice of nationally recognized counsel)
      to constitute a reasonable arrangement to ensure that the Certificates will
      not
      be owned directly or indirectly by a Person other than a Permitted
      Transferee.

     

    5.  The
      Investor agrees not to Transfer the Certificates, or cause the Transfer of
      the
      Certificates by a Person for whom the Investor is acting as nominee, trustee
      or
      agent, in each case unless it has received an affidavit and agreement in
      substantially the same form as this affidavit and agreement containing these
      same representations and covenants from the subsequent transferee.  In
      connection with any such Transfer by the Investor, the Investor agrees to
      deliver to the Trustee and the Depositor an affidavit substantially in the
      form
      set forth as Exhibit R to the Agreement to the effect that the Investor has
      no actual knowledge that the Person to which the Transfer is to be made is
      not a
      Permitted Transferee.

     

    6.  The
      Investor has historically paid its debts as they have come due, intends to
      pay
      its debts as they come due in the future, and understands that the taxes
      associated with holder an ownership interest in the Certificates may exceed
      the
      cash flow with respect thereto in some or all periods and intends to pay such
      taxes as they become due.  The Investor does not have the intention,
      and no purpose of the Transfer of the Certificates to the Investor is, to impede
      the assessment or collection of any tax legally required to be paid with respect
      to the Certificates.

     

    7.  The
      Investor’s U.S. taxpayer identification number is [_____________].

     

    8.  The
      Investor is a “United States person” within the meaning of Section 7701(a)(30)
      of the Code (a “United State Person”).

     

    9.  The
      Investor is aware that the Certificates may be a “noneconomic residual interest”
within the meaning of Treasury regulations promulgated under Section 860E of
      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.

     

    10.  The
      Investor will not cause income from the Certificates to be attributable to
      a
      foreign permanent establishment or fixed base, within the meaning of an
      applicable income tax treaty, of the Investor or any other United States
      Person.

     

    11.  Check
      one
      of the following:

     

     o The
      Transfer of
      the Certificates complies with U.S. Treasury Regulation Sections 1.860E-1(c)(7)
      and (8) and, accordingly:

     

    (i)           the
      present value of the anticipated tax liabilities associated with holding the
      Certificates does not exceed the sum of:

     

    
      	
               

            	
              (a)

            	
              the
                present value of any consideration given to the Investor to acquire
                such
                Certificates;

            

    

     

    
      	
               

            	
              (b)

            	
              the
                present value of the expected future distributions on such Certificates;
                and

            

    

     

    
      	
               

            	
              (c)

            	
              the
                present value of the anticipated tax savings associated with holding
                such
                Certificates as the related REMIC generates losses;
                and

            

    

     

    (ii)           the
      Transfer of the Certificates will not result in such Certificates being held,
      directly or indirectly, by a foreign permanent establishment or fixed base,
      within the meaning of an applicable income tax treaty, of the Investor or any
      other United States Person.

     

    For
      purposes of the calculation in clause (i) above, (x) the Investor is assumed
      to
      pay tax at the highest rate currently specified in Section 11(b)(1) 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)(1) of the Code if the Investor
      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 (y) 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 Investor.

     

      The
      Transfer of the Certificates complies with U.S. Treasury Regulation Sections
      1.860E-1(c)(5) and (6) and, accordingly:

     

    
      	
               

            	
              (i)

            	
              the
                Investor is an “eligible corporation,” as defined in U.S. Treasury
                Regulation Section 1.860E-1(c)(6)(i), as to which income from the
                Certificates will only be taxed in the United
                States;

            

    

     

    
      	
               

            	
              (ii)

            	
              at
                the time of the Transfer, and at the close of the Investor’s two fiscal
                years preceding the fiscal year of the transfer, the Investor had
                gross
                assets for financial reporting purposes (excluding any obligation
                of a
                “related person” to the Investor within the meaning of U.S. Treasury
                Regulation Section 1.860E-1(c)(6)(ii) and any other asset the principal
                purpose of which is to permit the Investor to satisfy the condition of
                this clause (ii)) in excess of $100 million and net assets in excess
                of
                $10 million;

            

    

     

    
      	
               

            	
              (iii)

            	
              the
                Investor will transfer the Certificates only to another “eligible
                corporation,” as defined in U.S. Treasury Regulation Section
                1.860E-1(c)(6)(i), in a transaction in which the requirements of
                U.S. Treasury Regulation Sections 1.860E-1(c)(4)(i), (ii) and (iii)
                and -1(c)(5) are satisfied and, accordingly, the subsequent transferee
                provides a similar affidavit with this box checked;
                and

            

    

     

    
      	
               

            	
              (iv)

            	
              the
                Investor determined the consideration paid to it to acquire the
                Certificates 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 Investor) that it has determined in good
                faith and
                has concluded that such consideration, together with other assets
                of the
                Investor, will be sufficient to cover the taxes associated with the
                Certificates.

            

    

     

     o None
      of the
      above.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Investor has caused this instrument to be executed on
      its
      behalf, pursuant to authority of its Board of Directors, by its [Title of
      Officer] this ____ day of _________, 20__.

     

    
      	 	 	 	 	 	 	
              [NAME
                OF INVESTOR]

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	
              Name:

            	
              [Name
                of Officer]

            
	 	 	 	 	 	 	
              Title:

            	
              [Title
                of Officer]

            
	 	 	 	 	 	 	 	
              [Address
                of Investor for receipt of distributions]

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Address
                of Investor for receipt of tax
                information:

            

    

    

     

    Personally
      appeared before me the above-named [Name of Officer], known or proved to me
      to
      be the same person who executed the foregoing instrument and to be the [Title
      of
      Officer] of the Investor, and acknowledged to me that he/she executed the same
      as his/her free act and deed and the free act and deed of the
      Investor.

     

    Subscribed
      and sworn before me this ___ day of _________, 20___.

     

    NOTARY
      PUBLIC

     

    COUNTY
      OF

     

    STATE
      OF

     

    My
      commission expires the ___ day of ___________________, 20___.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

     

    EXHIBIT
      F-1

     

    FORM
      OF
      INVESTMENT LETTER

     

    [Date]

    [SELLER]

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    

    Structured
      Asset Mortgage Investments II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

     

    
      	
               

            	
              Re:

            	
              Structured
                Asset Mortgage Investments II Inc., Prime Mortgage Trust,

              
                Series
                  2007-3 Mortgage Pass-Through Certificates (the
                  “Certificates”),

                including
                  the Class I-B-4, Class I-B-5, Class I-B-6, Class II-B-4, Class
                  II-B-5 and
                  Class II-B-6 Certificates the “Privately Offered
                  Certificates”

              

            

    

    
    

    Dear
      Ladies and Gentlemen:

     

    In
      connection with our purchase of the [Privately Offered Certificates], we confirm
      that:

     

    
      	
               

            	
              (i)

            	
              we
                understand that the Privately Offered Certificates are not being
                registered under the Securities Act of 1933, as amended (the “Act”) or any
                applicable state securities or “Blue Sky” laws, and are being sold to us
                in a transaction that is exempt from the registration requirements
                of such
                laws;

            

    

     

    
      	
               

            	
              (ii)

            	
              any
                information we desired concerning the Certificates, including the
                Privately Offered Certificates, the trust in which the Certificates
                represent the entire beneficial ownership interest (the “Trust”) or any
                other matter we deemed relevant to our decision to purchase Privately
                Offered Certificates has been made available to
                us;

            

    

     

    
      	
               

            	
              (iii)

            	
              we
                are able to bear the economic risk of investment in Privately Offered
                Certificates; we are an institutional “accredited investor” as defined in
                Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated under
                the Act
                and a sophisticated institutional
                investor;

            

    

     

    
      	
               

            	
              (iv)

            	
              we
                are acquiring Privately Offered Certificates for our own account,
                not as
                nominee for any other person, and not with a present view to any
                distribution or other disposition of the Privately Offered
                Certificates;

            

    

     

    
      	
               

            	
              (v)

            	
              we
                agree the Privately Offered Certificates must be held indefinitely
                by us
                (and may not be sold, pledged, hypothecated or in any way disposed
                of)
                unless subsequently registered under the Act and any applicable state
                securities or “Blue Sky” laws or an exemption from the registration
                requirements of the Act and any applicable state securities or “Blue Sky”
                laws is available;

            

    

     

    
      	
               

            	
              (vi)

            	
              we
                agree that in the event that at some future time we wish to dispose
                of or
                exchange any of the Privately Offered Certificates (such disposition
                or
                exchange not being currently foreseen or contemplated), we will not
                transfer or exchange any of the Privately Offered Certificates
                unless:

            

    

     

    (A)
      (1)
      the sale is to an Eligible Purchaser (as defined below), (2) if required by
      the
      Pooling and Servicing Agreement (as defined below) a letter to substantially
      the
      same effect as either this letter or, if the Eligible Purchaser is a Qualified
      Institutional Buyer as defined under Rule 144A of the Act, the Rule 144A and
      Related Matters Certificate in the form attached to the Pooling and Servicing
      Agreement (as defined below) (or such other documentation as may be acceptable
      to the Trustee) is executed promptly by the purchaser and delivered to the
      addressees hereof and (3) all offers or solicitations in connection with the
      sale, whether directly or through any agent acting on our behalf, are limited
      only to Eligible Purchasers and are not made by means of any form of general
      solicitation or general advertising whatsoever; and

     

    (B)           if
      the Privately Offered Certificates is not registered under the Act (as to which
      we acknowledge you have no obligation), the Privately Offered Certificates
      is
      sold in a transaction that does not require registration under the Act and
      any
      applicable state securities or “blue sky” laws and, if U.S. Bank National
      Association (the “Trustee”) so requests, a satisfactory Opinion of Counsel is
      furnished to such effect, which Opinion of Counsel shall be an expense of the
      transferor or the transferee;

     

    
      	
               

            	
              (vii)

            	
              we
                agree to be bound by all of the terms (including those relating to
                restrictions on transfer) of the Pooling and Servicing, pursuant
                to which
                the Trust was formed; we have reviewed carefully and understand the
                terms
                of the Pooling and Servicing
                Agreement;

            

    

     

    
      	
               

            	
              (viii)

            	
              we
                either: (i) are not acquiring the Privately Offered Certificates
                directly
                or indirectly by, or on behalf of, an employee benefit plan or other
                retirement arrangement which is subject to Title I of the Employee
                Retirement Income Security Act of 1974, as amended, or section 4975
                of the
                Internal Revenue Code of 1986, as amended, or (ii) are providing
                a
                representation to the effect that the proposed transfer and holding
                of a
                Privately Offered Certificates and the servicing, management and
                operation
                of the Trust and its assets: (I) will not result in any prohibited
                transaction which is not covered under an individual or class prohibited
                transaction exemption, including, but not limited to, Prohibited
                Transaction Class Exemption (“PTCE”) 84-14, PTCE 91-38, PTCE 90-1, PTCE
                95-60, or PTCE 96-23 and (II) will not give rise to any additional
                obligations on the part of the Depositor, the Master Servicer or
                the
                Trustee or (iii) have attached hereto the opinion specified in Section
                5.07 of the Agreement.

            

    

     

    
      	
               

            	
              (ix)

            	
              We
                understand that each of the Privately Offered Certificates bears,
                and will
                continue to bear, a legend to substantiate the following effect:
“THIS
                CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
                ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE
                SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE,
                AGREES
                THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
                TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER
                APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES
                ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A
                QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A
“QIB”),
                PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT
                OF A
                QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,
                RESALE,
                PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
                (2)
                PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER
                THE
                SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
                “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE
                501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY
                IN
                WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING
                NOT
                FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A)
                THE
                RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED
                IN
                THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE
                ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER
                IS
                IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR
                IN EACH
                CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED
                STATES AND ANY OTHER APPLICABLE JURISDICTION. THIS CERTIFICATE MAY
                NOT BE
                ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE
                BENEFIT
                PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE I
                OF THE
                EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR SECTION
                4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
                PROPOSED
                TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
                AND
                OPERATION OF THE TRUST AND ITS ASSETS: (1) WILL NOT RESULT IN ANY
                PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR
                CLASS
                PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO,
                PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 91-38, PTCE
                90-1, PTCE 95-60 OR PTCE 96-23 AND (II) WILL NOT GIVE RISE TO ANY
                ADDITIONAL OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE MASTER SERVICER
                OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF A
                BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE OR UNLESS THE OPINION
                PROVIDED IN SECTION 5.07 OF THE AGREEMENT IS
                PROVIDED.”

            

    

     

    “Eligible
      Purchaser” means a corporation, partnership or other entity which we have
      reasonable grounds to believe and do believe (i) can make representations with
      respect to itself to substantially the same effect as the representations set
      forth herein, and (ii) is either a Qualified Institutional Buyer as defined
      under Rule 144A of the Act or an institutional “Accredited Investor” as defined
      under Rule 501 of the Act.

     

    Terms
      not
      otherwise defined herein shall have the meanings assigned to them in the Pooling
      and Servicing Agreement, dated as of August 1, 2007, among Structured Asset
      Mortgage Investments II Inc., EMC Mortgage Corporation, as seller and master
      servicer and U.S. Bank National Association as Trustee (the “Pooling and
      Servicing Agreement’).

     

    If
      the
      Purchaser proposes that its Certificates be registered in the name of a nominee
      on its behalf, the Purchaser has identified such nominee below, and has caused
      such nominee to complete the Nominee Acknowledgment at the end of this
      letter.

     

    Name
      of
      Nominee (if
      any):                    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                                                       

    IN
      WITNESS WHEREOF, this document has been executed by the undersigned who is
      duly
      authorized to do so on behalf of the undersigned Eligible Purchaser on the
      ___
      day of ________, 20___.

     

    
      	 	Very
              truly yours,	 
	 	 	 
	 	[PURCHASER]	 
	 	 	 	 
	
              Date

            	
              By:
                

            	 	 
	 	 	
              (Authorized
                Officer)

            	 
	 	 	 	 
	 	[By:	 	 
	 	 	
              Attorney-in-fact]

            	 

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Nominee
      Acknowledgment

     

    The
      undersigned hereby acknowledges and agrees that as to the Certificates being
      registered in its name, the sole beneficial owner thereof is and shall be the
      Purchaser identified above, for whom the undersigned is acting as
      nominee.

     

    
      	 	[NAME
              OF NOMINEE]	 
	 	 	 	 
	
               

            	
              By:
                

            	 	 
	 	 	
              (Authorized
                Officer)

            	 
	 	 	 	 
	 	[By:  	 	 
	 	 	
              Attorney-in-fact]

            	 

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                                                                  

     

    EXHIBIT
      F-2

     

    FORM
      OF
      RULE 144A AND RELATED MATTERS CERTIFICATE

     

     [Date]

    [SELLER]

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    

    Structured
      Asset Mortgage Investments II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

     

    
      	
               

            	
              Re:

            	
              Structured
                Asset Mortgage Investments II Inc., Prime Mortgage Trust,

              
                Series
                  2007-3 Mortgage Pass-Through Certificates (the
                  “Certificates”),

                including
                  the Class I-B-4, Class I-B-5, Class I-B-6, Class II-B-4, Class
                  II-B-5 and
                  Class II-B-6 Certificates the “Privately Offered
                  Certificates”

              

            

    

    
    

    Dear
      Ladies and Gentlemen:

     

    In
      connection with our purchase of Privately Offered Certificates, the undersigned
      certifies to each of the parties to whom this letter is addressed that it is
      a
      qualified institutional buyer (as defined in Rule 144A under the Securities
      Act
      of 1933, as amended (the “Act”)) as follows:

     

    
      	
              1.

            	
              It
                owned and/or invested on a discretionary basis eligible securities
                (excluding affiliate’s securities, bank deposit notes and CD’s, loan
                participations, repurchase agreements, securities owned but subject
                to a
                repurchase agreement and swaps), as described
                below:

            

    

     

    Date:
      ______________, 20__ (must be on or after the close of its most recent fiscal
      year)

     

    Amount:
      $
      _____________________; and

     

    2.           The
      dollar amount set forth above is:

     

    a.           greater
      than $100 million and the undersigned is one of the following
      entities:

     

    
      	
               

            	
              (x)

            	
              an
                insurance company as defined in Section 2(13) of the Act1;
                or

            

    

     

    
      	
               

            	
              (y)

            	
              an
                investment company registered under the Investment Company Act or
                any
                business development company as defined in Section 2(a)(48) of the
                Investment Company Act of 1940; or

            

    

     

    
      	
               

            	
              (z)

            	
              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; or

            

    

     

    
      	
               

            	
              (aa)

            	
              a
                plan (i) established and maintained by a state, its political
                subdivisions, or any agency or instrumentality of a state or its
                political
                subdivisions, the laws of which permit the purchase of securities
                of this
                type, for the benefit of its employees and (ii) the governing investment
                guidelines of which permit the purchase of securities of this type;
                or

            

    

     

    
      	
               

            	
              (bb)

            	
              a
                business development company as defined in Section 202(a)(22) of
                the
                Investment Advisers Act of 1940; or

            

    

     

    
      	
               

            	
              (cc)

            	
              a
                corporation (other than a U.S. bank, savings and loan association
                or
                equivalent foreign institution), partnership, Massachusetts or similar
                business trust, or an organization described in Section 501(c)(3)
                of the
                Internal Revenue Code; or

            

    

     

    
      	
               

            	
              (dd)

            	
              a
                U.S. bank, savings and loan association or equivalent foreign institution,
                which has an audited net worth of at least $25 million as demonstrated
                in
                its latest annual financial statements;
                or

            

    

     

    
      	
               

            	
              (ee)

            	
              an
                investment adviser registered under the Investment Advisers Act;
                or

            

    

     

    
      	
               

            	
              b.

            	
              greater
                than $10 million, and the undersigned is a broker-dealer registered
                with
                the SEC; or

            

    

     

    
      	
               

            	
              c.

            	
              less
                than $10 million, and the undersigned is a broker-dealer registered
                with
                the SEC and will only purchase Rule 144A securities in transactions
                in
                which it acts as a riskless principal (as defined in Rule 144A);
                or

            

    

     

    
      	
               

            	
              d.

            	
              less
                than $100 million, and the undersigned is an investment company registered
                under the Investment Company Act of 1940, which, together with one
                or more
                registered investment companies having the same or an affiliated
                investment adviser, owns at least $100 million of eligible securities;
                or

            

    

     

    
      	
               

            	
              e.

            	
              less
                than $100 million, and the undersigned is an entity, all the equity
                owners
                of which are qualified institutional
                buyers.

            

    

     

    The
      undersigned further certifies that it is purchasing a Privately Offered
      Certificates for its own account or for the account of others that independently
      qualify as “Qualified Institutional Buyers” as defined in Rule 144A. It is aware
      that the sale of the Privately Offered Certificates is being made in reliance
      on
      its continued compliance with Rule 144A. It is aware that the transferor may
      rely on the exemption from the provisions of Section 5 of the Act provided
      by
      Rule 144A. The undersigned understands that the Privately Offered Certificates
      may be resold, pledged or transferred only to (i) 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 in Rule 144A, or (ii)
      an
      institutional “accredited investor,” as such term is defined under Rule 501 of
      the Act in a transaction that otherwise does not constitute a public
      offering.

     

    The
      undersigned agrees that if at some future time it wishes to dispose of or
      exchange any of the Privately Offered Certificates, it will not transfer or
      exchange any of the Privately Offered Certificates to a Qualified Institutional
      Buyer without first obtaining a Rule 144A and Related Matters Certificate in
      the
      form hereof from the transferee and delivering such certificate to the
      addressees hereof. Prior to making any transfer of Privately Offered
      Certificates, if the proposed Transferee is an institutional “accredited
      investor,” the transferor shall obtain from the transferee and deliver to the
      addressees hereof an Investment Letter in the form attached to the Pooling
      and
      Servicing Agreement, dated as of August 1, 2007, among Structured Asset Mortgage
      Investments II Inc., EMC Mortgage Corporation and U.S. Bank National
      Association, as Trustee, pursuant to Certificates were issued.

     

    The
      undersigned certifies that it either: (i) is not acquiring the Privately Offered
      Certificates directly or indirectly by, or on behalf of, an employee benefit
      plan or other retirement arrangement which is subject to Title I of the Employee
      Retirement Income Security Act of 1974, as amended, or section 4975 of the
      Internal Revenue Code of 1986, as amended, or (ii) is providing a representation
      or an opinion of counsel to the effect that the proposed transfer and holding
      of
      a Privately Offered Certificates and the servicing, management and operation
      of
      the Trust and its assets: (I) will not result in any prohibited transaction
      which is not covered under a prohibited transaction exemption, including, but
      not limited to, Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE
      91-38, PTCE 90-1, PTCE 95-60, PTCE 96-23 and (II) will not give rise to any
      additional obligations on the part of the Depositor, the Master Servicer or
      the
      Trustee or (iii) has attached hereto the opinion specified in Section 5.07
      of
      the Agreement.

     

    If
      the
      Purchaser proposes that its Certificates be registered in the name of a nominee
      on its behalf, the Purchaser has identified such nominee below, and has caused
      such nominee to complete the Nominee Acknowledgment at the end of this
      letter.

     

    
 

    
      
        

      
  1           A
      purchase by an insurance company for one or more of its separate accounts,
      as
      defined by Section 2(a)(37) of the Investment Company Act of 1940, which are
      neither registered nor required to be registered thereunder, shall be deemed
      to
      be a purchase for the account of such insurance company.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Name
        of
        Nominee (if any):

    

     

    IN
      WITNESS WHEREOF, this document has been executed by the undersigned who is
      duly
      authorized to do so on behalf of the undersigned Eligible Purchaser on the
      ____
      day of ___________, 20___.

     

    
       

      
        	 	Very
                truly yours,	 
	 	 	 
	 	[PURCHASER]	 
	 	 	 	 
	
                 

              	
                By:
                  

              	 	 
	 	 	
                (Authorized
                  Officer)

              	 
	 	 	 	 
	 	[By:  	 	 
	 	 	
                Attorney-in-fact]

              	 

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    NOMINEE
      ACKNOWLEDGMENT

     

    The
      undersigned hereby acknowledges and agrees that as to the Certificates being
      registered in its name, the sole beneficial owner thereof is and shall be the
      Purchaser identified above, for whom the undersigned is acting as
      nominee.

     

    
       

      
        	 	[NAME
                OF NOMINEE]	 
	 	 	 	 
	
                 

              	
                By:
                  

              	 	 
	 	 	
                (Authorized
                  Officer)

              	 
	 	 	 	 
	 	[By:  	 	 
	 	 	
                Attorney-in-fact]

              	 

      

       

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      F-3

    

    

    FORM
      OF
      TRANSFER CERTIFICATE FOR EXCHANGE OR

    TRANSFER
      FROM RULE 144A GLOBAL CERTIFICATE TO

    REGULATION
      S GLOBAL CERTIFICATE

    

    

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    

    

    Reference
      is hereby made to the Pooling and Servicing Agreement (“Pooling and Servicing
      Agreement”), dated as of August 1, 2007, among Structured Asset Mortgage
      Investments II Inc., as Depositor, EMC Mortgage Corporation, as Seller and
      Master Servicer and U.S. Bank National Association as Trustee. Capitalized
      terms
      used but not defined herein are used as defined in the Pooling and Servicing
      Agreement:

    

    The
      undersigned (the “Transferor”) owns and proposes to transfer the
      interests in the Rule 144A Global Certificates specified in Annex A hereto
      (the
“Certificates”) to __________ (the “Transferee”), in the principal
      amounts in such Rule 144A Global Certificates (the “Transfer”) as further
      specified in Annex A hereto.   In connection with the Transfer,
      the Transferor hereby certifies that:

    

    
      	
               

            	
              (a)

            	
              the
                Transfer is being effected in accordance with transfer restrictions
                set
                forth in the Pooling and Servicing Agreement and the
                Certificates;

            

    

    

    
      	
               

            	
              (b)

            	
              the
                Transfer is being effected pursuant to and in accordance with Rule
                903 or
                Rule 904 under the Securities Act of 1933, as amended (the “Securities
                Act”) and, accordingly, the Transferor hereby further certifies
                that:

            

    

    

    
      	
               

            	
              (i)

            	
              the
                Transfer is not being made to a person in the United States and (x)
                at the
                time the buy order was originated, the Transferee was outside the
                United
                States or the Transferor and each Person acting on its behalf reasonably
                believed and believes that the Transferee was outside the United
                States or
                (y) the transaction was executed in, on or through the facilities
                of a
                “designated offshore securities market” (as defined Rule 902 of Regulation
                S under the Securities Act) and neither the Transferor nor any Person
                acting on its behalf knows that the transaction was prearranged with
                a
                buyer in the United States,

            

    

    
      	
               

            	
              (ii)

            	
              no
                directed selling efforts have been made in contravention of the
                requirements of Rule 903 or Rule 904 of Regulation S under the Securities
                Act, and

            

    

    

    
      	
               

            	
              (iii)

            	
              the
                transaction is not part of a plan or scheme to evade the registration
                requirements of the Securities Act.

            

    

    

    Upon
      consummation of the proposed transfer in accordance with the terms of the
      Pooling and Servicing Agreement, the transferred beneficial interest will be
      subject to the restrictions on transfer enumerated in the legends printed on
      the
      Regulation S Global Certificates by which the Transferee shall hold its interest
      and in the Pooling and Servicing Agreement   and the Securities
      Act.

     

    
      	 	Very
              truly yours,	 
	 	[Name
              of Transferor]	 
	 	 	 	 
	
              Dated:

            	
              By:
                

            	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    ANNEX
      A

    

    The
      Transferor owns and proposes to transfer a beneficial interest in the
      following:

    

    
      	
               

            	
              (i)

            	
              G

            	
              Class
                [___] Rule 144A Global Certificate, principal amount of
                $_____________,

            

    

    

    
      	
               

            	
              (ii)

            	
              G

            	
              Class
                [___] Rule 144A Global Certificate, principal amount of $_____________,
                or

            

    

    

    
      	
               

            	
              (iii)

            	
              G

            	
              Class
                [___] Rule 144A Global Certificate, principal amount of
                $_____________.

            

    

     

     

     

     

     

    EXHIBIT
      F-4

    

    FORM
      OF
      TRANSFER CERTIFICATE FOR EXCHANGE OR

    TRANSFER
      FROM REGULATION S GLOBAL CERTIFICATE TO

    RULE
      144A
      GLOBAL CERTIFICATE

    

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    

    

    Reference
      is hereby made to the Pooling and Servicing Agreement (“Pooling and Servicing
      Agreement”), dated as of August 1, 2007, among Structured Asset Mortgage
      Investments II Inc., as Depositor, EMC Mortgage Corporation, as Seller and
      Master Servicer and U.S. Bank National Association as Trustee. Capitalized
      terms
      used but not defined herein are used as defined in the Pooling and Servicing
      Agreement:

    

    The
      undersigned (the “Transferor”) owns and proposes to transfer the
      interests in the Regulation S Global Certificates specified in Annex A hereto
      (the “Certificates”), in the principal amounts in such Regulation S
      Global Certificates (the “Transfer”), as further specified in Annex A
      hereto.   In connection with the Transfer, the Transferor hereby
      certifies that:

    

    
      	
               

            	
              (a)

            	
              the
                Transfer is being effected in accordance with transfer restrictions
                set
                forth in the Pooling and Servicing Agreement and the
                Certificates;

            

    

    

    
      	
               

            	
              (b)

            	
              the
                Transfer is being effected pursuant to and in accordance with Rule
                144A
                under the Securities Act of 1933, as amended (the “Securities
                Act”), and, accordingly, the Transferor hereby further certifies
                that:

            

    

    

    
      	
               

            	
              (i)

            	
              the
                Transferee is purchasing the beneficial interest for its own account,
                or
                for one or more accounts with respect to which the Transferee exercises
                sole investment discretion,

            

    

    

    
      	
               

            	
              (ii)

            	
              the
                Transferor reasonably believes that the Transferee and each such
                account
                is   a “qualified institutional buyer” within the meaning
                of Rule 144A, and

            

    

    

    
      	
            	
              (iii)

            	
              the
                Transfer is in compliance with any applicable blue sky securities
                laws of
                any state of the United States.

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    Upon
      consummation of the proposed Transfer in accordance with the terms of the
      Pooling and Servicing Agreement, the transferred beneficial interest will be
      subject to the restrictions on transfer enumerated in the legends printed on
      the
      Rule 144A Global Certificates by which the Transferee shall hold its interest
      and in the Pooling and Servicing Agreement and the Securities Act.

     

    
       

      
        	 	Very
                truly yours,	 
	 	[Name
                of Transferor]	 
	 	 	 	 
	
                Dated:

              	
                By:
                  

              	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

      

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    ANNEX
      A

    

    The
      Transferor owns and proposes to transfer a beneficial interest in the
      following:

    

    
      	
               

            	
              (i)

            	
              G

            	
              Class
                [___] Regulation S Global Certificate, principal amount of
                $_____________,

            

    

    

    
      	
               

            	
              (ii)

            	
              G

            	
              Class
                [___] Regulation S Global Certificate, principal amount of $_____________,
                or

            

    

    

    
      	
               

            	
              (iii)

            	
              G

            	
              Class
                [___] Regulation S Global Certificate, principal amount of
                $_____________.

            

    

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      G-1

     

    FORM
      OF WELLS FARGO CUSTODIAL AGREEMENT

     

    CUSTODIAL
      AGREEMENT

     

    THIS
      CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the
“Agreement”), dated as of August 31, 2007, by and among U.S. BANK NATIONAL
      ASSOCIATION, not individually but solely as trustee under the Pooling and
      Servicing Agreement defined below (including its successors under the Pooling
      and Servicing Agreement defined below, the “Trustee”), STRUCTURED ASSET MORTGAGE
      INVESTMENTS II INC., as depositor (together with any successor in interest,
      the
“Depositor”),  EMC MORTGAGE CORPORATION, as a seller (in such
      capacity, “EMC”), as master servicer (together with any successor in interest or
      successor under the Pooling and Servicing Agreement referred to below, the
      “Master Servicer”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as custodian
      (together with any successor in interest or any successor appointed hereunder,
      the “Custodian”) and MASTER FUNDING LLC, as a seller (“Master Funding”, and
      together with EMC, the “Sellers”).

     

    WITNESSETH
      THAT:

     

    WHEREAS,
      the Depositor, EMC Mortgage Corporation, as a seller (in such capacity, “EMC”),
      the Master Servicer and the Trustee have entered into a Pooling and Servicing
      Agreement, dated as of August 1, 2007, relating to the issuance of Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 (as in effect
      on the date of this agreement, and as amended and supplemented from time to
      time, the “Pooling and Servicing Agreement”).

     

    WHEREAS,
      the Custodian has agreed to act as agent for the Trustee on behalf of the
      Certificateholders for the purposes of receiving and holding certain documents
      and other instruments delivered by the Depositor, the Sellers or the Master
      Servicer under the Pooling and Servicing Agreement and the Servicers under
      their
      respective Servicing Agreements, all upon the terms, conditions and obligations
      and subject to the limitations hereinafter set forth. In the event any custodian
      terms, conditions and obligations are defined in the Pooling and Servicing
      Agreement, this custodial agreement shall supersede.

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants and
      agreements hereinafter set forth, the Trustee, the Depositor, the Sellers,
      the
      Master Servicer and the Custodian hereby agree as follows:

     

    ARTICLE
      I

    DEFINITIONS

     

    Capitalized
      terms used in this Agreement and not defined herein shall have the meanings
      assigned in the Pooling and Servicing Agreement, unless otherwise required
      by
      the context herein.

     

    ARTICLE
      II

    CUSTODY
      OF MORTGAGE DOCUMENTS

     

    Section
      2.1.  Custodian
      to Act as Agent: Acceptance of Mortgage Files.  The Custodian, as
      the duly appointed custodial agent of the Trustee for these purposes,
      acknowledges (subject to any exceptions noted in the Initial Certification
      referred to in Section 2.3(a)) receipt of the Mortgage Files relating to the
      Mortgage Loans identified on the schedule attached hereto (the “Mortgage Files”)
      and declares that it holds and will hold such Mortgage Files as agent for the
      Trustee, in trust, for the use and benefit of all present and future
      Certificateholders.

     

    Section
      2.2.  Recordation
      of Assignments.  If any Mortgage File includes one or more
      assignments of Mortgage that have not been recorded pursuant to the provisions
      of Section 2.01 of the Pooling and Servicing Agreement and the related Mortgage
      Loan is not a MOM Loan or the related Mortgaged Properties are located in
      jurisdictions specifically excluded by the Opinion of Counsel delivered to
      the
      Trustee pursuant to Section 2.01 of the Pooling and Servicing Agreement, each
      such assignment shall be delivered by the Custodian to the Depositor for the
      purpose of recording it in the appropriate public office for real property
      records, and the Depositor, at no expense to the Custodian, shall promptly
      cause
      to be recorded in the appropriate public office for real property records each
      such assignment of Mortgage and, upon receipt thereof from such public office,
      shall return each such assignment of Mortgage to the Custodian.

     

    Section
      2.3.  Review
      of Mortgage Files.

     

    (a)  On
      or
      prior to the Closing Date, in accordance with Section 2.02 of the Pooling and
      Servicing Agreement, the Custodian shall deliver to EMC (on its own behalf
      and
      on behalf of Master Funding), the Depositor, the Master Servicer and the Trustee
      an Initial Certification in the form annexed hereto as Exhibit One evidencing
      receipt (subject to any exceptions noted therein) of a Mortgage File for each
      of
      the Mortgage Loans listed on Schedule A attached hereto (the “Mortgage Loan
      Schedule”).

     

    (b)  Within
      90
      days of the Closing Date, the Custodian agrees, for the benefit of
      Certificateholders, to review, in accordance with the provisions of Section
      2.02
      of the Pooling and Servicing Agreement, each such document, and shall deliver
      to
      EMC (on its own behalf and on behalf of Master Funding), the Depositor, the
      Master Servicer and the Trustee an Interim Certification in the form annexed
      hereto as Exhibit Two to the effect that all such documents have been executed
      and received and that such documents relate to the Mortgage Loans identified
      on
      the Mortgage Loan Schedule, except for any exceptions listed on Schedule A
      attached to such Interim Certification. The Custodian shall be under no duty
      or
      obligation to inspect, review or examine said documents, instruments,
      certificates or other papers to determine that the same are genuine,
      enforceable, or appropriate for the represented purpose or that they have
      actually been recorded or that they are other than what they purport to be
      on
      their face.

     

    (c)  Not
      later
      than 180 days after the Closing Date, the Custodian shall review,  for
      the benefit of Certificateholders, the Mortgage Files as provided in Section
      2.02 of the Pooling and Servicing Agreement and deliver to EMC (on its own
      behalf and on behalf of Master Funding), the Depositor, the Master Servicer
      and
      the Trustee a Final Certification in the form annexed hereto as Exhibit Three
      evidencing the completeness of the Mortgage Files.

     

    (d)  In
      reviewing the Mortgage Files as provided herein and in the Pooling and Servicing
      Agreement, the Custodian shall make no representation as to and shall not be
      responsible to verify (i) the validity, legality, enforceability, due
      authorization, recordability, sufficiency or genuineness of any of the documents
      included in any Mortgage File or (ii) the collectability, insurability,
      effectiveness or suitability of any of the documents in any Mortgage
      File.

     

    Upon
      receipt of written request from EMC, the Master Servicer or the Trustee, the
      Custodian shall as soon as practicable supply such Person with a list of all
      of
      the documents relating to the Mortgage Loans missing from the Mortgage
      Files.

     

    Section
      2.4.  Notification
      of Breaches of Representations and Warranties.  Upon discovery by
      the Custodian of a breach of any representation or warranty made by the
      Depositor as set forth in the Pooling and Servicing Agreement with respect
      to a
      Mortgage Loan relating to a Mortgage File, the Custodian shall give prompt
      written notice to the Depositor, the Master Servicer and the
      Trustee.

     

    Section
      2.5.  Custodian
      to Cooperate: Release of Mortgage Files.  Upon receipt of written
      notice from the Depositor that EMC has repurchased one or more Mortgage Loans
      pursuant to Article II of the Pooling and Servicing Agreement, and a request
      for
      release (a “Request for Release”) confirming that the purchase price therefor
      has been deposited in the Master Servicer Collection Account or the Distribution
      Account, then the Custodian agrees to promptly release to the Seller the related
      Mortgage Files.

     

    Upon
      the
      Custodian’s receipt of a Request for Release substantially in the form of
      Exhibit D to the Pooling and Servicing Agreement signed by a Servicing Officer
      of the related Servicer, stating that it has received payment in full of a
      Mortgage Loan or that payment in full will be escrowed in a manner customary
      for
      such purposes, the Custodian agrees promptly to release to the related Servicer,
      the related Mortgage File.  The Depositor shall deliver to the
      Custodian and the Custodian agrees to review in accordance with the provisions
      of this Agreement the Mortgage Note and other documents constituting the
      Mortgage File with respect to any Substitute Mortgage Loan.

     

    From
      time
      to time as is appropriate for the servicing or foreclosure of any Mortgage
      Loan,
      including, for this purpose collection under any Primary Insurance Policy,
      the
      related Servicer (or if the Servicer does not, the Master Servicer) shall
      deliver to the Custodian a Request for Release signed by a Servicing Officer
      requesting that possession of all of the Mortgage File be released to the
      related Servicer and certifying as to the reason for such release and that
      such
      release will not invalidate any insurance coverage provided in respect of the
      Mortgage Loan under any of the Insurance Policies. Upon receipt of the
      foregoing, the Custodian shall deliver the Mortgage File to the related
      Servicer. All Mortgage Files so released to the related Servicer shall be held
      by it in trust for the Trustee for the use and benefit of all present and future
      Certificateholders. The related Servicer shall cause each Mortgage File or
      any
      document therein so released to be returned to the Custodian when the need
      therefor by the related Servicer no longer exists, unless (i) the Mortgage
      Loan
      has been liquidated and the Liquidation Proceeds relating to the Mortgage Loan
      have been deposited in the Master Servicer Collection Account or the
      Distribution Account or (ii) 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 related 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.

     

    At
      any
      time that the related Servicer is required to deliver to the Custodian a Request
      for Release, the related Servicer shall deliver two copies of the Request for
      Release if delivered in hard copy or the related Servicer may furnish such
      Request for Release electronically to the Custodian, in which event the
      Servicing Officer transmitting the same shall be deemed to have signed the
      Request for Release. In connection with any Request for Release of a Mortgage
      File because of a repurchase of a Mortgage Loan, such Request for Release shall
      be followed by an assignment of mortgage, without recourse, representation
      or
      warranty from the Trustee to the Seller (unless such Mortgage Loan is a MOM
      Loan) and the related Mortgage Note shall be endorsed without recourse,
      representation or warranty by the Trustee and be returned to the Seller;
      provided, however, that in the case of a Mortgage Loan that is registered on
      the
      MERS System, no assignment of mortgage or endorsement of the Mortgage Note
      by
      the Trustee shall be required.  In connection with any Request for
      Release of a Mortgage File because of the payment in full of a Mortgage Loan,
      such Request for Release shall be accompanied by a certificate of satisfaction
      or other similar instrument to be executed by or on behalf of the Trustee and
      returned to the related Servicer.

     

    Section
      2.6.  Assumption
      Agreements.  In the event that any assumption agreement,
      substitution of liability agreement or sale of servicing agreement is entered
      into with respect to any Mortgage Loan subject to this Agreement in accordance
      with the terms and provisions of the Pooling and Servicing Agreement, the Master
      Servicer shall enforce any obligation of the related Servicer under the related
      Servicing Agreement to notify the Custodian that such assumption or substitution
      agreement has been completed by forwarding to the Custodian the original of
      such
      assumption or substitution agreement, which shall be added to the related
      Mortgage File and, for all purposes, shall be considered a part of such Mortgage
      File to the same extent as all other documents and instruments constituting
      parts thereof.

     

    ARTICLE
      III

    CONCERNING
      THE CUSTODIAN

     

    Section
      3.1.  Custodian
      as Bailee and Agent of the Trustee.  With respect to each Mortgage
      Note, Mortgage and other documents constituting each Mortgage File which are
      delivered to the Custodian, the Custodian is exclusively the bailee and
      custodial agent of the Trustee and has no instructions to hold any Mortgage
      Note
      or Mortgage for the benefit of any person other than the Trustee and the
      Certificateholders and undertakes to perform such duties and only such duties
      as
      are specifically set forth in this Agreement and in the Pooling and Servicing
      Agreement. Except upon compliance with the provisions of Section 2.5 of this
      Agreement, no Mortgage Note, Mortgage or Mortgage File shall be delivered by
      the
      Custodian to the Depositor, the Servicers or the Master Servicer or otherwise
      released from the possession of the Custodian.

     

    Section
      3.2.  Custodian
      May Own Certificates.  The Custodian in its individual
      or any
      other capacity may become the owner or pledgee of Mortgage Pass-Through
      Certificates with the same rights it would have if it were not
      Custodian.

     

    Section
      3.3.  Trustee
      to Pay Custodian’s Fees.  The Trustee covenants and agrees to pay
      to the Custodian from time to time, and the Custodian shall be entitled to,
      reasonable compensation for all services rendered by it in the exercise and
      performance of any of the powers and duties hereunder of the Custodian.

     

    Section
      3.4.  Custodian
      May Resign; Trustee May Remove Custodian.  The Custodian may
      resign from the obligations and duties hereby imposed upon it as such
      obligations and duties relate to its acting as Custodian of the Mortgage Loans.
      Upon receiving such written notice of resignation, the Trustee shall either
      take
      custody of the Mortgage Files itself and give prompt written notice thereof
      to
      the Depositor, the Master Servicer and the Custodian, or promptly appoint a
      successor Custodian by written instrument, in duplicate, one copy of which
      instrument shall be delivered to the resigning Custodian and one copy to the
      successor Custodian. If the Trustee shall not have taken custody of the Mortgage
      Files and no successor Custodian shall have been so appointed and have accepted
      appointment within 30 days after the giving of such written notice of
      resignation, the resigning Custodian may petition any court of competent
      jurisdiction for the appointment of a successor Custodian.

     

    The
      Trustee may remove the Custodian at
      any time with the consent of the Master Servicer. In such event, the Trustee
      shall appoint, or petition a court of competent jurisdiction to appoint, a
      successor Custodian hereunder. Any successor Custodian shall be a depository
      institution subject to supervision or examination by federal or state authority,
      shall be able to satisfy the other requirements contained in Section 3.6 and
      shall be unaffiliated with the Servicer, or the Depositor.

     

    Any
      resignation or removal of the
      Custodian and appointment of a successor Custodian pursuant to any of the
      provisions of this Section 3.4 shall become effective upon acceptance of
      appointment by the successor Custodian. The Trustee shall give prompt notice
      to
      the Depositor and the Master Servicer of the appointment of any successor
      Custodian. No successor Custodian shall be appointed by the Trustee without
      the
      prior approval of the Depositor and the Master Servicer.

     

    Section
      3.5.  Merger
      or Consolidation of Custodian.  Any Person into which the
      Custodian may be merged or converted or with which it may be consolidated,
      or
      any Person resulting from any merger, conversion or consolidation to which
      the
      Custodian shall be a party, or any Person succeeding to the business of the
      Custodian, shall be the successor of the Custodian 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 that
      such successor is a depository institution subject to supervision or examination
      by federal or state authority and is able to satisfy the other requirements
      contained in Section 3.6 and is unaffiliated with the Master Servicer or the
      Depositor.

     

    Section
      3.6.  Representations
      of the Custodian.  The Custodian hereby represents that it is a
      depository institution subject to supervision or examination by a federal or
      state authority, has a combined capital and surplus of at least $15,000,000
      and
      is qualified to do business in the jurisdictions in which it will hold any
      Mortgage File.

     

    ARTICLE
      IV

    COMPLIANCE
      WITH REGULATION AB

     

    Section
      4.1.  Intent
      of the Parties; Reasonableness.  The parties hereto acknowledge
      and agree that the purpose of this Article IV is to facilitate compliance by
      the
      Depositor with the provisions of Regulation AB and related rules and regulations
      of the Commission. The Depositor shall not exercise its right to request
      delivery of information or other performance under these provisions other than
      in good faith, or for purposes other than compliance with the Securities Act,
      the Exchange Act and the rules and regulations of the Commission under the
      Securities Act and the Exchange Act. Each of the parties hereto acknowledges
      that interpretations of the requirements of Regulation AB may change over time,
      whether due to interpretive guidance provided by the Commission or its staff,
      consensus among participants in the mortgage-backed securities markets, advice
      of counsel, or otherwise, and agrees to comply with requests made by the
      Depositor in good faith for delivery of information under these provisions
      on
      the basis of evolving interpretations of Regulation AB. The Custodian shall
      cooperate reasonably with the Depositor to deliver to the Depositor (including
      any of its assignees or designees), any and all disclosure, statements, reports,
      certifications, records and any other information necessary in the reasonable,
      good faith determination of the Depositor to permit the Depositor to comply
      with
      the provisions of Regulation AB.

     

    Section
      4.2.  Additional
      Representations and Warranties of the Custodian.

     

    (a)  The
      Custodian hereby represents and warrants that the information set forth in
      the
      Prospectus Supplement under the caption “Description of the Certificates – The
      Custodians” (the “Custodian Disclosure”) does not contain any untrue statement
      of a material fact or omit to state a material fact required to be stated
      therein or necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading.

     

    (b)  The
      Custodian shall be deemed to represent to the Depositor as of the date hereof
      and on each date on which information is provided to the Depositor under Section
      4.3 that, except as disclosed in writing to the Depositor prior to such date:
      (i) there are no aspects of its financial condition that could have a material
      adverse effect on the performance by it of its Custodian obligations under
      this
      Agreement or any other Securitization Transaction as to which it is the
      custodian; (ii) there are no material legal or governmental proceedings pending
      (or known to be contemplated) against it; and (iii) there are no affiliations,
      relationships or transactions relating to the Custodian with respect to the
      Depositor or any sponsor, issuing entity, servicer, trustee, originator,
      significant obligor, enhancement or support provider or other material
      transaction party (as such terms are used in Regulation AB) relating to the
      Securitization Transaction contemplated by the Agreement, as identified by
      the
      Depositor to the Custodian in writing as of the Closing Date (each, a
“Transaction Party”).

     

    (c)  If
      so
      requested by the Depositor on any date following the Closing Date, the Custodian
      shall, within five Business Days following such request, confirm in writing
      the
      accuracy of the representations and warranties set forth in paragraph (a) of
      this Section or, if any such representation and warranty is not accurate as
      of
      the date of such confirmation, provide reasonably adequate disclosure of the
      pertinent facts, in writing, to the requesting party. Any such request from
      the
      Depositor shall not be given more than once each calendar quarter, unless the
      Depositor shall have a reasonable basis for a determination that any of the
      representations and warranties may not be accurate.

     

    Section
      4.3.  Additional
      Information to Be Provided by the Custodian.  For so long as the
      Certificates are outstanding, for the purpose of satisfying the Depositor's
      reporting obligation under the Exchange Act with respect to any class of
      Certificates, the Custodian shall (a) notify the Depositor in writing of any
      material litigation or governmental proceedings pending against the Custodian
      that would be material to Certificateholders, and (b) provide to the Depositor
      a
      written description of such proceedings. Any notices and descriptions required
      under this Section 4.3 shall be given no later than five Business Days prior
      to
      the Determination Date following the month in which the Custodian has knowledge
      of the occurrence of the relevant event. As of the date the Depositor, the
      Trustee or Master Servicer files each Report on Form 10-D or Form 10-K with
      respect to the Certificates, the Custodian will be deemed to represent that
      any
      information previously provided under this Section 4.3, if any, is materially
      correct and does not have any material omissions unless the Custodian has
      provided an update to such information.

     

    Section
      4.4.  Report
      on Assessment of Compliance and Attestation.  On or before March
      15 of each calendar year, the Custodian shall:

     

    (a)  deliver
      to the Master Servicer, the Trustee and the Depositor a
      report  regarding the Custodian’s assessment of compliance (an
“Assessment of Compliance”) with the Servicing Criteria (as identified and
      marked in Exhibit Four attached hereto) during the preceding calendar year,
      as
      required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of
      Regulation AB. The Assessment of Compliance, as set forth in Regulation AB,
      must
      contain (i) a statement by such officer of its responsibility for assessing
      compliance with the Servicing Criteria applicable to the Custodian, (ii) a
      statement by such officer that the Custodian used the Servicing Criteria
      attached as Exhibit Four hereto, and which will also be attached to the
      Assessment of Compliance, to assess compliance with the Servicing Criteria
      applicable to the Custodian, (iii) an assessment by such officer of the
      Custodian’s compliance with the applicable Servicing Criteria for the period
      consisting of the preceding calendar year, including disclosure of any material
      instance of noncompliance with respect thereto during such period, which
      assessment shall be based on the activities the Custodian performs with respect
      to asset-backed securities transactions taken as a whole involving the
      Custodian, that are backed by the same asset type as the Mortgage Loans, (iv)
      a
      statement that a registered public accounting firm has issued an attestation
      report on the Custodian’s Assessment of Compliance for the period consisting of
      the preceding calendar year, and (v) a statement as to which of the Servicing
      Criteria, if any, are not applicable to the Custodian, which statement shall
      be
      based on the activities the Custodian performs with respect to asset-backed
      securities transactions taken as a whole involving the Custodian, that are
      backed by the same asset type as the Mortgage Loans. Such report at a minimum
      shall address each of the Servicing Criteria identified and marked on Exhibit
      Four attached hereto as being applicable to the Custodian; and

     

    (b)  deliver
      to the Master Servicer, the Trustee and the Depositor an Attestation Report
      (an
“Attestation Report”) by a registered public accounting firm that attests to,
      and reports on, the Assessment of Compliance made by the Custodian, as required
      by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation
      AB, which Attestation Report must be made in accordance with standards for
      attestation reports issued or adopted by the Public Company Accounting Oversight
      Board.

     

    (c)  Notwithstanding
      the foregoing, an Assessment of Compliance is not required to be delivered
      by
      the Custodian unless it is required as part of a Form 10-K with respect to
      the
      Trust Fund.

     

    (d)  In
      the
      event the Custodian is terminated under, or resigns pursuant to, the terms
      of
      this Agreement, the Custodian shall provide an Assessment of Compliance and
      cause to be provided an Attestation Report pursuant to this Section 4.4
      notwithstanding any such termination or resignation.

     

    Section
      4.5.  Indemnification;
      Remedies.

     

    (a)  The
      Custodian shall indemnify the Depositor, each affiliate of the Depositor, the
      Trustee, the Master Servicer and each broker dealer acting as underwriter,
      placement agent or initial purchaser of the Certificates or each Person who
      controls any of such parties (within the meaning of Section 15 of the Securities
      Act and Section 20 of the Exchange Act); and the respective present and former
      directors, officers, employees and agents of each of the foregoing, and shall
      hold each of them harmless from and against any losses, damages, penalties,
      fines, forfeitures, legal fees and expenses and related costs, judgments, and
      any other costs, fees and expenses that any of them may sustain arising out
      of
      or based upon:

     

    (i)  (A)
      any
      untrue statement of a material fact contained or alleged to be contained in
      the
      Custodian Disclosure and any information, report, certification, accountants’
attestation or other material provided under this Article IV by or on behalf
      of
      the Custodian (collectively, the “Custodian Information”), or (B) the omission
      or alleged omission to state in the Custodian Information a material fact
      required to be stated in the Custodian Information or necessary in order to
      make
      the statements therein, in the light of the circumstances under which they
      were
      made, not misleading; or

     

    (ii)  any
      failure by the Custodian to deliver any information, report, certification,
      accountants’ attestation or other material when and as required under this
      Article IV.

     

    (b)  In
      the
      case of any failure of performance described in clause (ii) of Section 4.5(a),
      the Custodian shall promptly reimburse the Depositor for all costs reasonably
      incurred by the Depositor in order to obtain the information, report,
      certification, accountants’ letter or other material not delivered as required
      by the Custodian.

     

    

    ARTICLE
      V

    MISCELLANEOUS
      PROVISIONS

     

    Section
      5.1.  Notices.  All
      notices, requests, consents and
      demands and other communications required under this Agreement or pursuant
      to
      any other instrument or document delivered hereunder shall be in writing and,
      unless otherwise specifically provided, may be delivered personally, by telegram
      or telex, or by registered or certified mail, postage prepaid, return receipt
      requested, at the addresses specified on the signature page hereof (unless
      changed by the particular party whose address is stated herein by similar notice
      in writing).

     

    Section
      5.2.  Amendments.  No
      modification or amendment of or
      supplement to this Agreement shall be valid or effective unless the same is
      in
      writing and signed by all parties hereto, and neither the Depositor, the Master
      Servicer nor the Trustee shall enter into any amendment hereof except as
      permitted by the Pooling and Servicing Agreement. The Trustee shall give prompt
      notice to the Custodian of any amendment or supplement to the Pooling and
      Servicing Agreement and furnish the Custodian with written copies
      thereof..

     

    Section
      5.3.  GOVERNING
      LAW.  THIS AGREEMENT
      SHALL BE DEEMED A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK WITHOUT
      REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF OTHER THAN SECTION 5-1401 AND
      SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS
      OF
      THE STATE OF NEW YORK.

     

    Section
      5.4.  Recordation
      of Agreement.  To the extent permitted by applicable law, this
      Agreement is subject to recordation in all appropriate public offices for real
      property records in all the counties or other comparable jurisdictions in which
      any or all of the properties subject to the Mortgages are situated, and in
      any
      other appropriate public recording office or elsewhere, such recordation to
      be
      effected by the Depositor and at the Trust’s expense, but only upon direction
      accompanied by an Opinion of Counsel reasonably satisfactory to the Depositor
      to
      the effect that the failure to effect such recordation is likely to materially
      and adversely affect the interests of the Certificateholders.

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

     

    Section
      5.5.  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.

     

    [Signature
      Page Follows]

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Agreement is executed as of the date first above
      written.

     

    
      	
              Address:

              One
                Federal Street, 3rd Floor

              Boston,
                Massachusetts 02110

              Attention:
                Corporate Trust Services, PRIME  2007-3

              Telecopier
                No.: (617) 603-6638

               

            	
              U.S.
                BANK NATIONAL ASSOCIATION, not individually but solely as
                Trustee

              By:
                _________________________________

              Name:

              Title:

               

            
	
              Address:

              383
                Madison Avenue

              New
                York, New York 10179

               

            	
              STRUCTURED
                ASSET MORTGAGE INVESTMENTS II INC., as Depositor

              By:
                _________________________________

              Name:         
                

              Title:           
                

               

            
	
              Address:

              2780
                Lake Vista Drive

              Lewisville,
                Texas 75067

              Facsimile:
                (214) 626-4889

              Attention:
                Michelle Viner

               

            	
              EMC
                MORTGAGE CORPORATION,

              as
                Master Servicer and Seller

               

              By:
                _________________________________

              Name:

              Title:

               

               

            
	
              Address:

              2780
                Lake Vista Drive,

              Lewisville,
                Texas 75067

              Facsimile:
                (214) 626-4889

              Attention:
                Mark Novachek

               

               

               

            	
              MASTER
                FUNDING LLC,

              as
                Seller

               

              By:
                _________________________________

              Name:

              Title:

            
	
              Address:

              1015
                10th Avenue Southeast, MS 0031

              Minneapolis,
                Minnesota 55414

              Attention:
                PRIME  2007-3

               

            	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION

              as
                Custodian

              By:
                _________________________________

              Name:

              Title:

               

            

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF MASSACHUSETTS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      the
      31st day of
      August 2007 before me, a notary public in and for said State, personally
      appeared _________________ known to me to be a(n) __________________of U.S.
      Bank
      National Association, one of the parties that executed the within agreement,
      and
      also known to me to be the person who executed the within agreement on behalf
      of
      said national banking association and acknowledged to me that such national
      banking association executed the within instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [SEAL]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

    

     

    On
      the
      31st day of
      August 2007 before me, a notary public in and for said State, personally
      appeared Joseph T. Jurkowski, Jr., known to me to be a Vice President of
      Structured Asset Mortgage Investments II Inc., one of the corporations that
      executed the within instrument, and also known to me to be the person who
      executed it on behalf of said corporation, and acknowledged to me that such
      corporation executed the within instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [SEAL]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF TEXAS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF DALLAS

            	
              )

            	 

    

    

     

    On
      the
      31st day of
      August 2007 before me, a notary public in and for said State, personally
      appeared _______________________, known to me to be a(n) __________________
      of
      EMC Mortgage Corporation, one of the parties that executed the within
      instrument, and also known to me to be the person who executed the within
      instrument on behalf of said party, and acknowledged to me that such party
      executed the within instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [SEAL]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    
      	
              STATE
                OF TEXAS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF DALLAS

            	
              )

            	 

    

    

     

    On
      the
      31st day of
      August 2007 before me, a notary public in and for said State, personally
      appeared _______________________, known to me to be a(n) __________________
      of
      Master Funding LLC, one of the parties that executed the within instrument,
      and
      also known to me to be the person who executed the within instrument on behalf
      of said party, and acknowledged to me that such party executed the within
      instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [SEAL]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              STATE
                OF MINNESOTA

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF
                HENNEPIN

            	
              )

            	 

    

    

     

    On
      the
      31th day of
      August 2007 before me, a notary public in and for said State, personally
      appeared _________________ known to me to be a(n) __________________of Wells
      Fargo Bank, N.A., one of the parties that executed the within agreement, and
      also known to me to be the person who executed the within agreement on behalf
      of
      said national banking association and acknowledged to me that such national
      banking association executed the within instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [SEAL]

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

    

    MORTGAGE
      LOAN SCHEDULE

    

    (Provided
      upon request)

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      ONE

     

    FORM
      OF
      CUSTODIAN INITIAL CERTIFICATION

     

    
      	 	
              August
                31, 2007

               

            

    

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME  2007-3

    Telecopier
      No.: (617) 603-6638

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067

    Facsimile:
      (469) 759-4714

    Attention:
      General Counsel

    

    Structured
      Asset Mortgage Investments II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Facsimile
      No.: (212) 272-2000

     

    Attention:
      PRIME 2007-3

     

    
      	
              Re:

            	
              Custodial
                Agreement, dated as of August 31, 2007, by and among Structured Asset
                Mortgage Investments II Inc., EMC Mortgage Corporation, Master Funding
                LLC, U.S. Bank National Association and Wells Fargo Bank, National
                Association as Custodian relating to Prime Mortgage Trust 2007-3,
                Mortgage
                Pass-Through Certificates, Series
                2007-3

            

    

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.3(a) of the above-captioned Custodial Agreement,
      and
      subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
      undersigned, as Custodian, hereby certifies that it has received a Mortgage
      File
      (which contains an original Mortgage Note or lost note affidavit) to the extent
      required in Section 2.01 of the Pooling and Servicing Agreement with respect
      to
      each Mortgage Loan listed in the Mortgage Loan Schedule, with any exceptions
      listed on Schedule A attached hereto.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement.

     

    

     

    

    

    
      	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION.

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      A

     

    (PROVIDED
      UPON REQUEST)

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      TWO

     

    FORM
      OF
      CUSTODIAN INTERIM CERTIFICATION

     

    
      	 	
              [DATE]

               

            

    

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME  2007-3

    Telecopier
      No.: (617) 603-6638

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067

    Facsimile:
      (469) 759-4714

    Attention:
      General Counsel

     

    Structured
      Asset Mortgage Investments II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Facsimile
      No.: (212) 272-2000

    

    Attention:
      PRIME 2007-3

     

    
      	
              Re:

            	
              Custodial
                Agreement, dated as of August 31, 2007, by and among Structured Asset
                Mortgage Investments II Inc., EMC Mortgage Corporation, Master Funding
                LLC, U.S. Bank National Association and Wells Fargo Bank, National
                Association as Custodian relating to Prime Mortgage Trust 2007-3,
                Mortgage
                Pass-Through Certificates, Series 2007-3

            
	 	 

    

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.3(b) of the above-captioned Custodial Agreement and
      subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
      undersigned, as Custodian, hereby certifies that it has received a Mortgage
      File
      to the extent required pursuant to Section 2.01 of the Pooling and Servicing
      Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
      Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
      and has determined that: all required documents have been executed and received
      and that such documents relate to the Mortgage Loans identified on the Mortgage
      Loan Schedule, with any exceptions listed on Schedule A attached
      hereto.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement.

     

    

     

    
      	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION.

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    (PROVIDED
      UPON REQUEST)

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      THREE

     

    FORM
      OF
      CUSTODIAN FINAL CERTIFICATION

     

    
      	 	
              [DATE]

               

            

    

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME  2007-3

    Telecopier
      No.: (617) 603-6638

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067

    Facsimile:
      (469) 759-4714

    Attention:
      General Counsel

     

    Structured
      Asset Mortgage Investments II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Facsimile
      No.: (212) 272-2000

    

    Attention:
      PRIME 2007-3

     

    
      	
              Re:

            	
              Custodial
                Agreement, dated as of August 31, 2007, by and among Structured Asset
                Mortgage Investments II Inc., EMC Mortgage Corporation, Master Funding
                LLC, U.S. Bank National Association and Wells Fargo Bank, National
                Association as Custodian relating to Prime Mortgage Trust 2007-3,
                Mortgage
                Pass-Through Certificates, Series
                2007-3

            

    

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.3(c) of the above-captioned Custodial
      Agreement

    and,
      subject to Section 2.02(b) of the Pooling and Servicing Agreement, the
      undersigned, as Custodian, hereby certifies that it has received a Mortgage
      File
      to the extent required pursuant to Section 2.01 of the Pooling and Servicing
      Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
      Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
      and has determined that: all required documents have been executed and received
      and that such documents relate to the Mortgage Loans identified on the Mortgage
      Loan Schedule, with any exceptions listed on Schedule A attached
      hereto.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement or in the Pooling and Servicing
      Agreement, as applicable.

     

    
      	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION.

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    (PROVIDED
      UPON REQUEST)

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      FOUR

     

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     

    The
      assessment of compliance to be delivered by the Custodian shall address, at
      a
      minimum, the criteria identified below as “Applicable Servicing
      Criteria”:

     

    
      	
               

              Servicing
                Criteria

            	
              Applicable

              Servicing
                Criteria

            
	
              Reference

            	
              Criteria

            	 
	 	
              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

            	 
	
               

              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

            	 
	
               

              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.

            	 
	 	
               

              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.

            	 
	
               

              1122(d)(2)(ii)

            	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel.

            	 
	
               

              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.

            	 
	
               

              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of overcollateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	 
	
               

               

              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 institutions”
                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.

            	 
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	 
	
               

               

               

              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 45 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
                reconciliations; 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.

            	 
	 	
               

              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.

            	 
	
               

              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.

            	 
	
               

              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.

            	 
	
               

              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.

            	 
	 	
               

              Pool
                Asset Administration

            	 
	
               

              1122(d)(4)(i)

            	
              Collateral
                or security on pool assets is maintained as required by the transaction
                agreements or related asset pool documents.

            	
              √

               

            
	
               

              1122(d)(4)(ii)

            	
              Pool
                assets and related documents are safeguarded as required by the
                transaction agreements.

            	
              √

               

            
	
               

               

              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

            	 
	
               

               

              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.

            	 
	
               

              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.

            	 
	
               

              1122(d)(4)(vi)

            	
              Changes
                with respect to the terms or status of an obligor’s pool asset (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.

            	 
	
               

               

              1122(d)(4)(vii)

            	
              Loss
                mitigation of recovery actions (e.g., forbearance plans, modifications
                and
                deed 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
                documents.

            	 
	
               

               

               

              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 in 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).

            	 
	
               

              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.

            	 
	
               

               

               

              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 3- calendar
                days of full repayment of the related pool asset, or such other number
                of
                days specified in the transaction agreements.

            	 
	
               

               

              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an obligor (such as tax ore 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 service at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	 
	
               

              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.

            	 
	
              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.

            	 
	
              1122(d)(4)(xiv)

            	
              Delinquencies,
                charge-offs and uncollectible funds are recognized and recorded in
                accordance with the transaction agreements.

            	 
	
              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.

            	 

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      G-2

     

    FORM
      OF TREASURY BANK CUSTODIAL AGREEMENT

     

    CUSTODIAL
      AGREEMENT

     

    THIS
      CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the
      "Agreement”), dated as of August 31, 2007, by and among U.S. BANK NATIONAL
      ASSOCIATION, not individually but solely as trustee under the Pooling and
      Servicing Agreement defined below (including its successors under the Pooling
      and Servicing Agreement defined below, the “Trustee”), STRUCTURED ASSET MORTGAGE
      INVESTMENTS II INC., as depositor (together with any successor in interest,
      the
“Depositor”),  EMC MORTGAGE CORPORATION, as a seller (in such
      capacity, “EMC”), as master servicer (together with any successor in interest or
      successor under the Pooling and Servicing Agreement referred to below, the
      “Master Servicer”), TREASURY BANK, A DIVISION OF COUNTRYWIDE BANK FSB, as
      custodian (together with any successor in interest or any successor appointed
      hereunder, the “Custodian”) and MASTER FUNDING LLC, as a seller (“Master
      Funding”, and together with EMC, the “Sellers”).

     

    WITNESSETH
      THAT:

     

    WHEREAS,
      the Depositor, EMC, the Master Servicer and the Trustee have entered into a
      Pooling and Servicing Agreement, dated as of August 1, 2007, relating to the
      issuance of Prime Mortgage Trust 2007-3, Mortgage Pass-Through Certificates,
      Series 2007-3 (as in effect on the date of this agreement, the "Original Pooling
      and Servicing Agreement," and as amended and supplemented from time to time,
      the
      "Pooling and Servicing Agreement”); and

     

    WHEREAS,
      the Custodian has agreed to act as agent for the Trustee for the purposes of
      receiving and holding certain documents and other instruments relating to the
      mortgage loans (herein referred to as the “Mortgage Loans”) listed on Schedule I
      hereto (the “Mortgage Loan Schedule”) delivered by (i) the Depositor, the
      Sellers or the Master Servicer under the Pooling and Servicing Agreement and
      (ii) the Servicers under their respective Servicing Agreements, all upon the
      terms and conditions and subject to the limitations hereinafter set
      forth;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants and
      agreements hereinafter set forth, the Trustee, the Depositor, the Sellers,
      the
      Master Servicer and the Custodian hereby agree as follows:

     

    ARTICLE
      I.

    DEFINITIONS

     

    Capitalized
      terms used in this Agreement and not defined herein shall have the meanings
      assigned in the Original Pooling and Servicing Agreement, unless otherwise
      required by the context herein.

     

    ARTICLE
      II.

    CUSTODY
      OF MORTGAGE DOCUMENTS

     

    Section
      2.1.                                Custodian
      to Act as Agent: Acceptance of Mortgage Files.  The Custodian, as
      the duly appointed agent of the Trustee for these purposes, acknowledges
      (subject to any exceptions noted in the Initial Certification referred to in
      Section 2.3(a)) receipt of the Mortgage Files relating to the Mortgage Loans
      attached hereto (the "Mortgage Files") and declares that it holds and will
      hold
      such Mortgage Files as agent for the Trustee, in trust, for the use and benefit
      of all present and future Certificateholders.

     

    Section
      2.2.                                Recordation
      of Assignments.  If any Mortgage File relating to the Mortgage
      Loans includes one or more assignments of Mortgage to the Trustee in a state
      which is specifically excluded from the Opinion of Counsel delivered by the
      Sellers to the Trustee and the Custodian pursuant to the provisions of Section
      2.01 of the Pooling and Servicing Agreement, each such assignment shall be
      delivered, at the direction of the Depositor (in written or electronic format),
      by the Custodian to the Depositor for the purpose of recording it in the
      appropriate public office for real property records, and the Depositor, at
      no
      expense to the Custodian, shall promptly cause to be recorded in the appropriate
      public office for real property records each such assignment of Mortgage and,
      upon receipt thereof from such public office, shall return each such assignment
      of Mortgage to the Custodian.

     

    Section
      2.3.                                Review
      of Mortgage Files.

     

    (a)           On
      or prior to the Closing Date, in accordance with Section 2.02 of the Pooling
      and
      Servicing Agreement, the Custodian shall deliver to the Depositor, EMC (on
      its
      own behalf and on behalf of Master Funding), the Master Servicer and the Trustee
      an Initial Certification in the form annexed hereto as Exhibit One evidencing
      receipt (subject to any exceptions noted therein) of a Mortgage File for each
      of
      the Mortgage Loans.

     

    (b)           Within
      90 days of the Closing Date (or, with respect to any Substitute Mortgage Loans,
      within 5 Business Days after the receipt by the Trustee or the Custodian
      thereof), the Custodian agrees, for the benefit of Certificateholders, to
      review, in accordance with the provisions of Section 2.02 of the Pooling and
      Servicing Agreement, each such document relating to the Mortgage Loans, and
      shall execute and deliver to the Depositor, EMC (on its own behalf and on behalf
      of Master Funding), the Master Servicer and the Trustee an Interim Certification
      in the form annexed hereto as Exhibit Two to the effect that all such documents
      have been executed and received and that such documents relate to the Mortgage
      Loans identified on the Mortgage Loan Schedule, except for any exceptions listed
      on Schedule A attached to such Interim Certification.  The Custodian
      shall be under no duty or obligation to inspect, review or examine said
      documents, instruments, certificates or other papers to determine that the
      same
      are genuine, enforceable, or appropriate for the represented purpose or that
      they have actually been recorded or that they are other than what they purport
      to be on their face.

     

    (c)           Not
      later than 180 days after the Closing Date (or, with respect to any Substitute
      Mortgage Loans, within 5 Business Days after the receipt by the Trustee or
      the
      Custodian thereof), the Custodian shall review the Mortgage Files relating
      to
      the Mortgage Loans as provided in Section 2.02 of the Pooling and Servicing
      Agreement and execute and deliver to the Depositor, EMC (on its own behalf
      and
      on behalf of Master Funding), the Master Servicer and the Trustee a Final
      Certification in the form annexed hereto as Exhibit Three evidencing the
      completeness of such Mortgage Files.

     

    (d)           In
      reviewing the Mortgage Files relating to the Mortgage Loans as provided herein
      and in the Pooling and Servicing Agreement, the Custodian shall make no
      representation as to and shall not be responsible to verify (i) the validity,
      legality, enforceability, due authorization, recordability, sufficiency or
      genuineness of any of the documents included in any Mortgage File or (ii) the
      collectibility, insurability, effectiveness or suitability of any of the
      documents in any Mortgage File.

     

    Upon
      receipt of written request from the Trustee, the Custodian shall as soon as
      practicable supply the requesting party with a list of all of the documents
      missing from the Mortgage Loans then contained in the Mortgage
      Files.

     

    Section
      2.4.                                Notification
      of Breaches of Representations and Warranties.  Upon discovery by
      the Custodian of a breach of any representation or warranty made by the
      Depositor as set forth in the Pooling and Servicing Agreement with respect
      to a
      Mortgage Loan relating to a Mortgage File, the Custodian shall give prompt
      written notice to the Depositor, the Master Servicer, the applicable Servicer
      and the Trustee.

     

    Section
      2.5.                                Custodian
      to Cooperate: Release of Mortgage Files.  Upon receipt of written
      notice from the Master Servicer or the Trustee that the Sellers have repurchased
      a Mortgage Loan pursuant to Article II of the Pooling and Servicing Agreement,
      and that the Repurchase Price therefor has been deposited in the Distribution
      Account, and a Request for Release (as defined below), the Custodian agrees
      to
      promptly release to the Sellers the related Mortgage File.

     

    Upon
      the
      Custodian's receipt of a request for release (a "Request for Release")
      substantially in the form of Exhibit D-2 to the Pooling and Servicing Agreement
      signed by an officer of the related Servicer involved in, or responsible for,
      the administration and servicing of the Mortgage Loans whose name appears on
      a
      list of servicing officers furnished by such Servicer upon request, as such
      list
      may from time to time be amended (each, a “Servicing Officer”) stating that it
      has received payment in full of a Mortgage Loan or that payment in full will
      be
      escrowed in a manner customary for such purposes, the Custodian agrees to
      promptly release to such Servicer the related Mortgage File.  The
      Depositor shall deliver to the Custodian, and the Custodian agrees to accept,
      the Mortgage Note and other documents constituting the Mortgage File with
      respect to any Substitute Mortgage Loan, which documents the Custodian will
      review to the extent provided in Article II of the Pooling and Servicing
      Agreement.

     

    From
      time
      to time as is appropriate for the servicing or foreclosure of any Mortgage
      Loan,
      including, for this purpose, collection under any Primary Mortgage Insurance
      Policy, the related Servicer shall (or if the related Servicer does not, then
      the Master Servicer may) deliver to the Custodian a Request for Release signed
      by a Servicing Officer requesting that possession of all of the related Mortgage
      File be released to such Servicer and certifying as to the reason for such
      release and that such release will not invalidate any insurance coverage
      provided in respect of the related Mortgage Loan under any of the Insurance
      Policies.  Upon receipt of the foregoing, the Custodian shall deliver
      such Mortgage File to the related Servicer.  All Mortgage Files so
      released to the related Servicer shall be held by it in trust for the Trustee
      for the use and benefit of all present and future
      Certificateholders.  The related Servicer shall cause each Mortgage
      File or any document therein so released to be returned to the Custodian when
      the need therefor by such Servicer no longer exists, unless (i) such Mortgage
      Loan has been liquidated and the Liquidation Proceeds relating to the related
      Mortgage Loan have been deposited in the Distribution Account or (ii) such
      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 related
      Mortgaged Property either judicially or non-judicially, and the related 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.

     

    At
      any
      time that a Servicer or the Master Servicer is required to deliver to the
      Custodian a Request for Release, such Servicer or the Master Servicer shall
      deliver two copies of the Request for Release if delivered in hard copy or
      such
      Servicer or the Master Servicer may furnish such Request for Release
      electronically to the Custodian, in which event the Servicing Officer
      transmitting the same shall be deemed to have signed such Request for Release.
      In connection with any Request for Release of a Mortgage File because of a
      repurchase of a Mortgage Loan, the assignment of mortgage and the related
      Mortgage Note shall be returned to the related Servicer or the Master Servicer,
      as applicable, for execution and endorsement, respectively, pursuant to a power
      of attorney from the Trustee and for delivery to the Sellers.  If the
      related Servicer or the Master Servicer does not have a power of attorney from
      the Trustee to execute the applicable assignment and to endorse the related
      Mortgage Note, such Request for Release shall be accompanied by an assignment
      of
      mortgage, without recourse, executed by the Trustee to the Sellers and the
      related Mortgage Note shall be endorsed without recourse by the Trustee (if
      not
      in blank) and be returned to the related Servicer or the Master Servicer, as
      applicable, for delivery to the Sellers; provided, however, that in the case
      of
      a Mortgage Loan that is registered on the MERS® System, no assignment of
      mortgage or endorsement of the Mortgage Note by the Trustee, or by the related
      Servicer or the Master Servicer pursuant to a power of attorney from the
      Trustee, shall be required.  In connection with any Request for
      Release of a Mortgage File because of the payment in full of a Mortgage Loan
      and
      if the related Servicer or the Master Servicer does not have a power of attorney
      from the Trustee to execute the applicable certificate of satisfaction or
      similar instrument, such Request for Release shall be accompanied by a
      certificate of satisfaction or other similar instrument to be executed by or
      on
      behalf of the Trustee and returned to the related Servicer or the Master
      Servicer, as applicable.

     

    Section
      2.6.                                Assumption
      Agreements.  In the event that any assumption
      agreement,  substitution of liability agreement or sale of servicing
      agreement is entered into with respect to any Mortgage Loan subject to this
      Agreement in accordance with the terms and provisions of the Pooling and
      Servicing Agreement, the Master Servicer, to the extent provided in the related
      Servicing Agreement, shall cause the related Servicer to notify the Custodian
      that such assumption agreement, substitution of liability agreement or sale
      of
      servicing agreement has been completed by forwarding to the Custodian the
      original of such assumption agreement, substitution of liability agreement
      or
      sale of servicing agreement, which shall be added to the related Mortgage File
      and, for all purposes, shall be considered a part of such Mortgage File to
      the
      same extent as all other documents and instruments constituting parts
      thereof.

     

    ARTICLE
      III.

    CONCERNING
      THE CUSTODIAN

     

    Section
      3.1.                                Custodian
      as Bailee and Agent of the Trustee.  With respect to each Mortgage
      Note and other documents constituting each Mortgage File relating to the
      Mortgage Loans which are delivered to the Custodian, the Custodian is
      exclusively the bailee and agent of the Trustee and has no instructions to
      hold
      any Mortgage Note or Mortgage File for the benefit of any person other than
      the
      Trustee and the Certificateholders and undertakes to perform such duties and
      only such duties as are specifically set forth in this
      Agreement.  Except upon compliance with the provisions of Section 2.5
      of this Agreement with respect to any Mortgage Loan, no Mortgage Note, Mortgage
      or Mortgage File shall be delivered by the Custodian to the Depositor, the
      Sellers, any Servicer or the Master Servicer or otherwise released from the
      possession of the Custodian.

     

    Section
      3.2.                                [Reserved.]

     

    Section
      3.3.                                Custodian
      May Own Certificates.  The Custodian in its individual or any
      other capacity may become the owner or pledgee of Certificates with the same
      rights it would have if it were not Custodian.

     

    Section
      3.4.                                Custodian's
      Fees and Expenses.  The Depositor covenants and agrees to cause
      EMC, in its capacity as a seller, to pay the Custodian from time to time, and
      the Custodian shall be entitled to, reasonable compensation for all services
      rendered by it in the exercise and performance of any of the powers and duties
      hereunder of the Custodian pursuant to a letter agreement between the Custodian
      and EMC, in its capacity as a seller.  In addition, EMC in its
      capacity as a seller, will pay or reimburse the Custodian upon its request
      for
      all reasonable expenses, disbursements and advances incurred or made by the
      Custodian in accordance with any of the provisions of this Agreement (including
      the reasonable compensation and the expenses and disbursements of its counsel
      and of all persons not regularly in its employ), except any such expense,
      disbursement or advance as may arise from its negligence or bad faith, or to
      the
      extent that such cost or expense is indemnified by the Depositor pursuant to
      the
      Pooling and Servicing Agreement.

     

    Section
      3.5.                                Custodian
      May Resign; Trustee May Remove Custodian.  The Custodian may
      resign from the obligations and duties hereby imposed upon it as such
      obligations and duties relate to its acting as Custodian of the Mortgage
      Loans.  Upon receiving such notice of resignation, the Trustee shall
      either take custody of the Mortgage Files itself and give prompt notice thereof
      to the Depositor, the Master Servicer, the Servicers and the Custodian, or
      promptly appoint a successor Custodian by written instrument, in duplicate,
      one
      copy of which instrument shall be delivered to the resigning Custodian and
      one
      copy to the successor Custodian.  If the Trustee shall not have taken
      custody of the Mortgage Files and no successor Custodian shall have been so
      appointed and have accepted appointment within 30 days after the giving of
      such
      notice of resignation, the resigning Custodian may petition any court of
      competent jurisdiction for the appointment of a successor
      Custodian.

     

    The
      Trustee may remove the Custodian at any time with the consent of the Master
      Servicer.  In such event, the Trustee shall appoint, or petition a
      court of competent jurisdiction to appoint, a successor Custodian
      hereunder.  Any successor Custodian shall be a depository institution
      subject to supervision or examination by federal or state authority, shall
      be
      able to satisfy the other requirements contained in Section 3.7 and shall be
      unaffiliated with any Servicer or the Depositor.

     

    Any
      resignation or removal of the Custodian and appointment of a successor Custodian
      pursuant to any of the provisions of this Section 3.5 shall become effective
      upon acceptance of appointment by the successor Custodian.  The
      Trustee shall give prompt notice to the Depositor and the Master Servicer of
      the
      appointment of any successor Custodian.  No successor Custodian shall
      be appointed by the Trustee without the prior approval of the Depositor and
      the
      Master Servicer.

     

    Section
      3.6.                                Merger
      or Consolidation of Custodian.  Any Person into which the
      Custodian may be merged or converted or with which it may be consolidated,
      or
      any Person resulting from any merger, conversion or consolidation to which
      the
      Custodian shall be a party, or any Person succeeding to the business of the
      Custodian, shall be the successor of the Custodian hereunder (provided such
      Person shall satisfy the requirements set forth in Section 3.7), without the
      execution or filing of any paper or any further act on the part of any of the
      parties hereto, anything herein to the contrary notwithstanding.

     

    Section
      3.7.                                Representations
      of the Custodian.  The Custodian hereby represents, and any
      successor Custodian hereunder shall represent, that it is a depository
      institution subject to supervision or examination by a federal or state
      authority, has a combined capital and surplus of at least $15,000,000 and is
      qualified to do business in the jurisdictions in which it will hold any Mortgage
      File.

     

    Section
      3.8.                                Duties
      and Obligations of the Custodian.

     

    (a)           The
      Custodian shall be under no duty or obligation to inspect, review or examine
      the
      Mortgage Files to determine that the contents thereof are appropriate for the
      represented purpose or that they have been actually recorded or that they are
      other than what they purport to be on their face.

     

    (b)           The
      Custodian shall not be responsible or liable for, and makes no representation
      or
      warranty with respect to, the validity, adequacy or perfection or any lien
      upon
      or security interest in the Mortgage Files.

     

    (c)           Any
      other provision of this Agreement to the contrary notwithstanding, the Custodian
      shall have no notice, and shall not be bound by any of the terms and conditions
      of any other document or agreement executed or delivered in connection with,
      or
      intended to control any part of, the transactions anticipated by or referred
      to
      in this Agreement unless the Custodian is a signatory party to that document
      or
      agreement.

     

    (d)           The
      Custodian may rely on and shall be protected in acting in good faith upon any
      certificate, instrument, opinion, notice, magnetic tape, letter, telegram or
      other document, or any security, delivered to it and in good faith believed
      by
      it to be genuine and to have been signed by the proper party or parties; but
      in
      the case of any loan document or other request, instruction, document or
      certificate which by any provision hereof is specifically required to be
      furnished to the Custodian, the Custodian shall be under a duty to examine
      the
      same to determine whether or not it conforms prima facie to the requirements
      of
      this Custodial Agreement.

     

    (e)           The
      Custodian shall not be liable for any error of judgment, or for any act done
      or
      step taken or omitted by it, in good faith, or for any mistake of fact or law,
      or for anything that it may do or refrain from doing in connection therewith,
      except in the case of its negligent performance or omission.

     

    (f)           The
      Custodian shall have no obligation to verify the receipt of any such documents
      the existence of which was not made known to the Custodian by the Mortgage
      Files.

     

    (g)           The
      Custodian shall not be responsible for delays or failures in performance
      resulting from acts beyond its control.  Such acts shall include, but
      not be limited to, acts of God, strikes, lockouts, riots, acts of war or
      terrorism, epidemics, nationalization, expropriation, currency restrictions,
      governmental regulations superimposed after the fact, fire, communication line
      failures, power failures, earthquakes or other disasters.

     

    

     

    ARTICLE
      IV.

    COMPLIANCE
      WITH REGULATION AB

     

    Section
      4.1.                                Intent
      of the parties; Reasonableness.  The parties hereto acknowledge
      and agree that the purpose of this Article IV is to facilitate compliance by
      the
      Depositor and the Master Servicer with the provisions of Regulation AB and
      related rules and regulations of the Commission.  The Depositor and
      the Master Servicer shall not exercise its right to request delivery of
      information or other performance under these provisions other than in good
      faith, or for purposes other than compliance with the Securities Act, the
      Exchange Act and the rules and regulations of the Commission under the
      Securities Act and the Exchange Act.  Each of the parties hereto
      acknowledges that interpretations of the requirements of Regulation AB may
      change over time, whether due to interpretive guidance provided by the
      Commission or its staff, consensus among participants in the mortgage-backed
      securities markets, advice of counsel, or otherwise, and the Custodian agrees
      to
      comply with requests made by the Depositor and the Master Servicer in good
      faith
      for delivery of information under these provisions on the basis of evolving
      interpretations of Regulation AB to the extent reasonably practicable, unless
      otherwise advised in writing by counsel.  The Custodian shall
      cooperate reasonably with the Depositor and the Master Servicer to deliver
      to
      the Depositor and the Master Servicer (including any of their respective
      assignees or designees), any and all disclosure, statements, reports,
      certifications, records and any other information necessary in the reasonable,
      good faith determination of the Depositor and the Master Servicer to permit
      the
      Depositor and the Master Servicer to comply with the provisions of Regulation
      AB.

     

    Section
      4.2.                                Additional
      Representations and Warranties of the Custodian.

     

    (a)           The
      Custodian hereby represents and warrants that the information with respect
      to
      the Custodian set forth in the Prospectus Supplement under the caption
      "Description of the Certificates—The Custodians—Treasury Bank" (the "Custodian
      Disclosure") does not contain any untrue statement of a material fact or omit
      to
      state a material fact required to be stated therein or necessary in order to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading.

     

    (b)           The
      Custodian shall be deemed to represent to the Depositor as of the date hereof
      and on each date on which information is provided to the Depositor under Section
      4.3 that, except as disclosed in writing to the Depositor prior to such date:
      (i) there are no aspects of its financial condition that could have a material
      adverse effect on the performance by it of its Custodian obligations under
      this
      Agreement; (ii) there are no material legal or governmental proceedings pending
      (or known to be contemplated) against it that would affect or interfere with
      the
      performance of its obligations hereunder; and (iii) there are no affiliations,
      relationships or transactions relating to the Custodian with respect to the
      Depositor or any sponsor, issuing entity, servicer (other than Countrywide
      Home
      Loan Servicing LP), trustee, originator, significant obligor, enhancement or
      support provider or other material transaction party (as such terms are used
      in
      Regulation AB) relating to the securitization transaction contemplated by the
      Pooling and Servicing Agreement, as identified by the Depositor to the Custodian
      in writing as of the Closing Date (each, a "Transaction Party") that would
      affect or interfere with the performance of its obligations hereunder and have
      not been previously disclosed to the Depositor and the Trustee.

     

    (c)           If
      so requested by the Depositor on any date following the Closing Date, the
      Custodian shall, within five Business Days following such request, confirm
      in
      writing the accuracy of the representations and warranties set forth in
      paragraph (1) of this section or, if any such representation and warranty is
      not
      accurate as of the date of such confirmation, provide reasonably adequate
      disclosure of the pertinent facts, in writing, to the requesting party. Any
      such
      request from the Depositor shall not be given more than once each calendar
      quarter, unless the Depositor shall have a reasonable basis for a determination
      that any of the representations and warranties may not be accurate.

     

    Section
      4.3.                                Additional
      Information to Be Provided by the Custodian.  For so long as the
      Certificates are outstanding, for the purpose of satisfying the Depositor’s
      reporting obligation under the Exchange Act with respect to any class of
      Certificates, the Custodian shall (a) notify the Depositor and the Master
      Servicer in writing of any material litigation or governmental proceedings
      pending against the Custodian (including any such proceedings known to be
      contemplated by the governmental authorities) that would be material to
      Certificateholders, and (b) provide to the Depositor and the Master Servicer
      a
      written description of such proceedings. Any notices and descriptions required
      under this Section 4.3 shall be given no later than five Business Days prior
      to
      the Determination Date following the month in which the Custodian has knowledge
      of the occurrence of the relevant event. As of the date the Depositor, the
      Trustee or the Master Servicer files each Report on Form 10-D or Form 10-K
      with
      respect to the Certificates, the Custodian will be deemed to represent that
      any
      information previously provided under this Section 4.3, if any, is materially
      correct and does not have any material omissions unless the Custodian has
      provided an update to such information.

     

    Section
      4.4.                                Report
      on Assessment of Compliance and Attestation.  On or before March
      15 of each calendar year in which a Form 10-K is required to be filed with
      respect to the Trust, the Custodian shall:

     

    (a)           deliver
      to the Depositor, the Master Servicer and the Trustee a report (in form and
      substance reasonably satisfactory to the Depositor) regarding the Custodian’s
      assessment of compliance with the Applicable Servicing Criteria as set forth
      in
      Exhibit Four during the immediately preceding calendar year, as required under
      Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation
      AB.  Such report shall be addressed to the Depositor and signed by an
      authorized officer of the Custodian, and shall address each of the Servicing
      Criteria specified on a certification substantially in the form of Exhibit
      Four
      hereto; and

     

    (b)           deliver
      to the Depositor, the Master Servicer and the Trustee, a report of a registered
      public accounting firm reasonably acceptable to the Master Servicer and the
      Depositor that attests to, and reports on, the assessment of compliance made
      by
      the Custodian and delivered pursuant to the preceding paragraph. Such
      attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of
      Regulation S-X under the Securities Act and the Exchange Act.

     

    Section
      4.5.                                Indemnification;
      Remedies.

     

    (a)           The
      Custodian shall indemnify the Depositor, each affiliate of the Depositor, the
      Master Servicer, the Trustee and each broker dealer acting as underwriter,
      placement agent or initial purchaser of the Certificates or each Person who
      controls any of such parties (within the meaning of Section 15 of the Securities
      Act and Section 20 of the Exchange Act); and the respective present and former
      directors, officers, employees and agents of each of the foregoing (each, an
      “Indemnified Party”), and shall hold each of them harmless from and against any
      losses, damages, penalties, fines, forfeitures, legal fees and expenses and
      related costs, judgments, and any other costs, fees and expenses that any of
      them may sustain arising out of or based upon:

     

    (i)           (A)
      any untrue statement of a material fact contained or alleged to be contained
      in
      the Custodian Disclosure and any information, report, certification,
      accountants’ attestation or other material provided under this Article IV by or
      on behalf of the Custodian (collectively, the “Custodian Information”), or (B)
      the omission or alleged omission to state in the Custodian Information a
      material fact required to be stated in the Custodian Information or necessary
      in
      order to make the statements therein, in the light of the circumstances under
      which they were made, not misleading; or

     

    (ii)           any
      failure by the Custodian to deliver any information, report, certification,
      accountants’ attestation or other material when and as required under this
      Article IV; or

     

    (iii)           the
      negligence, bad faith or willful misconduct of the Custodian in the performance
      of its obligations under this Article IV.

     

    (b)           In
      the case of any failure of performance described in clause (ii) of Section
      4.5(a), the Custodian shall promptly reimburse the Depositor and the Master
      Servicer for all costs reasonably incurred by the Depositor and the Master
      Servicer, respectively, in order to obtain the information, report,
      certification, accountants’ letter or other material not delivered as required
      by the Custodian.

     

    (c)           In
      no event shall the Custodian or its directors, officers and employees be liable
      for any special, indirect or consequential damages from any action taken or
      omitted to be taken by it or them hereunder or in connection herewith even
      if
      advised of the possibility of such damages.

     

    If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless any Indemnified Party, then the Custodian agrees that it shall
      contribute to the amount paid or payable by such Indemnified Party as a result
      of any claims, losses, damages or liabilities incurred by such Indemnified
      Party
      in such proportion as is appropriate to reflect the relative fault of such
      Indemnified Party on the one hand and the Custodian on the
      other.  This indemnification shall survive the termination of this
      Agreement or the termination of the Custodian.

     

    

     

    ARTICLE
      V.

    MISCELLANEOUS
      PROVISIONS

     

    Section
      5.1.                                Notices.  All
      notices, requests, consents and demands and other communications required under
      this Agreement or pursuant to any other instrument or document delivered
      hereunder shall be in writing and, unless otherwise specifically provided,
      may
      be delivered personally, by telegram or telex, or by registered or certified
      mail, postage prepaid, return receipt requested, at the addresses specified
      on
      the signature page hereof (unless changed by the particular party whose address
      is stated herein by similar notice in writing), in which case the notice will
      be
      deemed delivered when received.

     

    Section
      5.2.                                Amendments.  No
      modification or amendment of or supplement to this Agreement shall be valid
      or
      effective unless the same is in writing and signed by all parties hereto, and
      neither the Depositor, the Master Servicer nor the Trustee shall enter into
      any
      amendment hereof except as permitted by the Pooling and Servicing
      Agreement.  The Trustee shall give prompt notice to the Custodian of
      any amendment or supplement to the Pooling and Servicing Agreement and furnish
      the Custodian with written copies thereof.

     

    Section
      5.3.                                GOVERNING
      LAW.  THIS AGREEMENT SHALL BE DEEMED A CONTRACT MADE UNDER THE
      LAWS OF THE STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
      WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO
      ITS
      CONFLICT OF LAWS RULES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
      OBLIGATIONS LAW, WHICH SHALL APPLY HERETO).

     

    Section
      5.4.                                Recordation
      of Agreement.  To the extent permitted by applicable law, this
      Agreement is subject to recordation in all appropriate public offices for real
      property records in all the counties or other comparable jurisdictions in which
      any or all of the properties subject to the Mortgages are situated, and in
      any
      other appropriate public recording office or elsewhere, such recordation to
      be
      effected by the Depositor and at the Trust's expense on direction by the
      Trustee, but only upon direction accompanied by an Opinion of Counsel reasonably
      satisfactory to the Depositor to the effect that the failure to effect such
      recordation is likely to materially and adversely affect the interests of the
      Certificateholders.

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

     

    Section
      5.5.                                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.

     

    [Signature
      page follows]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF, this Agreement is executed as of the date first above
      written.

    

    
      	
              Address:

              One
                Federal Street, 3rd Floor

              Boston,
                Massachusetts 02110

              Attention:
                Corporate Trust Services, PRIME  2007-3

              Telecopier
                No.: (617) 603-6638

               

            	
              U.S.
                BANK NATIONAL ASSOCIATION, not individually but solely as
                Trustee

              By:__________________________________

              Name:

              Title:

               

            
	
              Address:

              383
                Madison Avenue

              New
                York, New York  10179

            	
              STRUCTURED
                ASSET MORTGAGE INVESTMENTS II INC.

              By:__________________________________

              Name:                      
                 

              Title:                      
                 

               

            
	
              Address:

               

              2780
                Lake Vista Drive

              Lewisville,
                Texas 75067

              (214)
                626-4889

              Attention:
                Michelle Viner

            	
              EMC
                MORTGAGE CORPORATION, as Master Servicer and Seller

              By:___________________________________

              Name:

              Title:

               

            
	 	 
	
              Address:

               

              2780
                Lake Vista Drive,

              Lewisville,
                Texas 75067

              Facsimile:
                (214) 626-4889

              Attention:
                Mark Novachek

               

               

            	
              MASTER
                FUNDING LLC,

              as
                Seller

              By:___________________________________

              Name:

              Title:

               

            
	
              Address:

              4100
                E. Los Angeles Avenue

              Simi
                Valley, California 93063

              Attention:
                Teresita Que

              Telephone:
                (805) 577-6028

              Facsimile:  (805)
                577-6069

            	
              TREASURY
                BANK, A DIVISION OF COUNTRYWIDE BANK FSB, as Custodian

              By:___________________________________

              Name:

              Title:

               

            

    

    
    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              STATE
                OF MASSACHUSETTS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      the
      31st day of
      August 2007 before me, a notary public in and for said State, personally
      appeared _________________ known to me to be a(n) __________________of U.S.
      Bank
      National Association, one of the parties that executed the within agreement,
      and
      also known to me to be the person who executed the within agreement on behalf
      of
      said national banking association and acknowledged to me that such national
      banking association executed the within instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [SEAL]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

    

     

    On
      the
      31st day of
      August 2007 before me, a notary public in and for said State, personally
      appeared _______________, known to me to be a Vice President of Structured
      Asset
      Mortgage Investments II Inc., one of the corporations that executed the within
      instrument, and also known to me to be the person who executed it on behalf
      of
      said corporation, and acknowledged to me that such corporation executed the
      within instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [Notarial
      Seal]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF TEXAS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      the
      31st day of
      August 2007 before me, a notary public in and for said State, personally
      appeared __________________known to me to be an authorized representative of
      EMC
      Mortgage Corporation, one of the corporations that executed the within
      instrument, and also known to me to be the person who executed it on behalf
      of
      said national banking association, and acknowledged to me that such national
      banking association executed the within instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [SEAL]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF TEXAS

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      the
      31st day of
      August 2007 before me, a notary public in and for said State, personally
      appeared __________________known to me to be an authorized representative of
      Master Funding LLC, one of the corporations that executed the within instrument,
      and also known to me to be the person who executed it on behalf of said national
      banking association, and acknowledged to me that such national banking
      association executed the within instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [SEAL]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF CALIFORNIA

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    On
      the
      31st day of
      August 2007 before me, a notary public in and for said State, personally
      appeared ______________, known to me to be a __________________ of Treasury
      Bank, a division of Countrywide Bank FSB, one of the corporations that executed
      the within instrument, and also known to me to be the person who executed it
      on
      behalf of said corporation, and acknowledged to me that such corporation
      executed the within instrument.

     

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

     

    
      	 	 
	 	
              Notary
                Public

            

    

     [Notarial
      Seal]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1

     

    Mortgage
      Loans

     

    [Provided
      upon Request]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      ONE

     

    FORM
      OF
      CUSTODIAN INITIAL CERTIFICATION

     

     

    
      
        	 	
                August
                  31, 2007

                 

              

      

    

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME  2007-3

    Email:
      maryellen.hunter@usbank.com

    Telecopier
      No.: (617) 603-6638

    

    Structured
      Asset Mortgage Investments II Inc.

    383
      Park
      Avenue

    New
      York,
      New York 10179

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067

    Attention:
      Janan Weeks

    Email:
      jweeks@bear.com

    Facsimile:
      (214) 626-3704

    

    With
      a
      copy to:

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067

    Attention:
      Michelle Viner

    Email: 
      mviner@bear.com

    Facsimile:
      (214) 626-4889

    

    Attention:
      Prime Mortgage Trust 2007-3, Mortgage Pass-Through Certificates, Series
      2007-3

    

    
      	
              Re:

            	
              Custodial
                Agreement, dated as of August 31, 2007, by and among Structured Asset
                Mortgage Investments II Inc., EMC Mortgage Corporation, Master Funding
                LLC, U.S. Bank National Association and Treasury Bank, a division
                of
                Countrywide Bank FSB, as Custodian relating to Prime Mortgage Trust
                2007-3, Mortgage Pass-Through Certificates, Series
                2007-3

            

    

     

    
      	
               

            	
              Ladies
                and Gentlemen:

            

    

     

    In
      accordance with Section 2.3 of the above-captioned Custodial Agreement, and
      subject to Section 2.02 of the Pooling and Servicing Agreement, the undersigned,
      as Custodian, hereby certifies that it has received a Mortgage File (which
      contains an original Mortgage Note or lost note affidavit) to the extent
      required in Section 2.01 of the Pooling and Servicing Agreement (other than
      with
      respect to clause (b)(v) thereof, for which no review has been made) with
      respect to each Mortgage Loan listed in the Mortgage Loan Schedule, with any
      exceptions listed on Schedule A attached hereto.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement.

     

    
      	
              TREASURY
                BANK, A DIVISION OF

              COUNTRYWIDE
                BANK FSB

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
      A TO EXHIBIT ONE

     

    Exceptions

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      TWO

     

    FORM
      OF
      CUSTODIAN INTERIM CERTIFICATION

     

     

    
      
        	 	
                _________
                  ___, 200__

                 

              

      

    

     

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME  2007-3

    Email:
      maryellen.hunter@usbank.com

    Telecopier
      No.: (617) 603-6638

    

    Structured
      Asset Mortgage Investments II Inc.

    383
      Park
      Avenue

    New
      York,
      New York 10179

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067

    Attention:
      Janan Weeks

    Email:
      jweeks@bear.com

    Facsimile:
      (214) 626-3704

    

    With
      a
      copy to:

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067

    Attention:
      Michelle Viner

    Email: 
      mviner@bear.com

    Facsimile:
      (214) 626-4889

    

    Attention:
      Prime Mortgage Trust 2007-3, Mortgage Pass-Through Certificates, Series
      2007-3

    

     

    
      	
              Re:

            	
              Custodial
                Agreement, dated as of August 31, 2007, by and among Structured Asset
                Mortgage Investments II Inc., EMC Mortgage Corporation, Master Funding
                LLC, U.S. Bank National Association and Treasury Bank, a division
                of
                Countrywide Bank FSB, as Custodian relating to Prime Mortgage Trust
                2007-3, Mortgage Pass-Through Certificates, Series
                2007-3

            

    

    Ladies
      and Gentlemen:

    In
      accordance with Section 2.3 of the above-captioned Custodial Agreement, the
      undersigned, as Custodian, hereby certifies that it has received a Mortgage
      File
      to the extent required pursuant to Section 2.01 of the Pooling and Servicing
      Agreement (other than with respect to clause (b)(v) thereof, for which no review
      has been made) with respect to each Mortgage Loan listed in the Mortgage Loan
      Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
      and has determined that: all required documents have been executed and received
      and that such documents related to the Mortgage Loans identified on the Mortgage
      Loan Schedule, with any exceptions listed on Schedule A attached
      hereto.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement.

     

    
      	
              TREASURY
                BANK, A DIVISION OF

              COUNTRYWIDE
                BANK FSB

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
      A TO EXHIBIT TWO

     

    Exceptions

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      THREE

     

    FORM
      OF
      CUSTODIAN FINAL CERTIFICATION

     

    
      	 	
              _________
                ___, 200__

               

            

    

     

     

    U.S.
      Bank
      National Association

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME  2007-3

    Email:
      maryellen.hunter@usbank.com

    Telecopier
      No.: (617) 603-6638

    

    Structured
      Asset Mortgage Investments II Inc.

    383
      Park
      Avenue

    New
      York,
      New York 10179

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067

    Attention:
      Janan Weeks

    Email:
      jweeks@bear.com

    Facsimile:
      (214) 626-3704

    

    With
      a
      copy to:

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067

    Attention:
      Michelle Viner

    Email: 
      mviner@bear.com

    Facsimile:
      (214) 626-4889

    

    Attention:  Prime
      Mortgage Trust 2007-3, Mortgage Pass-Through Certificates, Series
      2007-3

     

     

    
      	
              Re:

            	
              Custodial
                Agreement, dated as of August 31, 2007, by and among Structured Asset
                Mortgage Investments II Inc., EMC Mortgage Corporation, Master Funding
                LLC, U.S. Bank National Association and Treasury Bank, a division
                of
                Countrywide Bank FSB, as Custodian relating to Prime Mortgage Trust
                2007-3, Mortgage Pass-Through Certificates, Series
                2007-3

            

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.3 of the above-captioned Custodial Agreement, the
      undersigned, as Custodian, hereby certifies that it has received a Mortgage
      File
      to the extent required pursuant to Section 2.01 of the Pooling and Servicing
      Agreement (other than with respect to clause (b)(v) thereof, for which no review
      has been made) with respect to each Mortgage Loan listed in the Mortgage Loan
      Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
      and has determined that an original of each document related thereto required
      to
      be recorded has been returned from the related recording office with evidence
      of
      recording thereon, or a certified copy has been obtained from the related
      recording office, with any exceptions listed in Schedule A attached
      hereto.

     

    

     

    

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Custodial Agreement.

     

    
      	
              TREASURY
                BANK, A DIVISION OF

              COUNTRYWIDE
                BANK FSB

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
      A TO EXHIBIT THREE

     

    Exceptions

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      FOUR

     

    SERVICING
      CRITERIA TO BE ADDRESSED IN
      ASSESSMENT OF COMPLIANCE

     

    The
      assessment of compliance to be
      delivered by the Custodian shall address, at a minimum, the criteria identified
      as below as “Applicable Servicing Criteria”;

     

    
      	
               

              Servicing
                Criteria

            	
              Applicable

              Servicing
                Criteria

            
	
              Reference

            	
              Criteria

            	 
	 	
              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

            	 
	
               

              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

            	 
	
              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.

            	 
	 	
               

              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 and
                identification, or
                such other number of days specified in the transaction
                agreements.

            	 
	
               

              1122(d)(2)(ii)

            	
              Disbursements
                made via wire
                transfer on behalf of an obligor or to an investor are made only
                by
                authorized personnel.

            	 
	
               

              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.

            	 
	
               

              1122(d)(2)(iv)

            	
              The
                related accounts for the
                transaction, such as cash reserve accounts or accounts established
                as a
                form of overcollateralization, are separately maintained (e.g., with
                respect to commingling of cash) as set forth in the transaction
                agreements.

            	 
	
               

               

              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 institutions” 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.

            	 
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so
                as to prevent unauthorized access.

            	 
	
               

               

               

               

              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 reconciliations;
                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.

            	 
	 	
               

              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.

            	 
	
               

              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.

            	 
	
               

              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.

            	 
	
               

              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.

            	 
	 	
               

              Pool
                Asset
                Administration

            	 
	
               

              1122(d)(4)(i)

            	
              Collateral
                or security on pool
                assets is maintained as required by the transaction agreements or
                related
                asset pool documents.

            	
              √

               

            
	
               

              1122(d)(4)(ii)

            	
              Pool
                assets and related documents
                are safeguarded as required by the transaction
                agreements.

            	
              √

               

            
	
               

              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

            	 
	
               

               

              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.

            	 
	
               

              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.

            	 

    

    

    
      	
               

              1122(d)(4)(vi)

            	
              Changes
                with respect to the terms
                or status of an obligor’s pool asset (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.

            	 
	
               

               

              1122(d)(4)(vii)

            	
              Loss
                mitigation of recovery
                actions (e.g., forbearance plans, modifications and deed 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
                documents.

            	 
	
               

               

               

              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
                in 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).

            	 
	
               

              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.

            	 
	
               

               

               

              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 3- calendar days of full repayment
                of
                the related pool asset, or such other number of days specified in
                the
                transaction agreements.

            	 
	
               

               

              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an
                obligor (such as tax ore 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 service at least 30 calendar days prior to these dates, or
                such
                other number of days specified in the transaction
                agreements.

            	 
	
               

              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.

            	 
	
              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.

            	 
	
              1122(d)(4)(xiv)

            	
              Delinquencies,
                charge-offs and
                uncollectible funds are recognized and recorded in accordance with
                the
                transaction agreements.

            	 
	
              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.

            	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      H

    

    FORM
      OF
      MORTGAGE LOAN PURCHASE AGREEMENT

     

    MORTGAGE
      LOAN PURCHASE AGREEMENT

     

     

    among

     

     

    EMC
      MORTGAGE CORPORATION

     

    as
      a
      Mortgage Loan Seller

     

     

     

    MASTER
      FUNDING LLC

     

    as
      a
      Mortgage Loan Seller

     

     

    and

     

     

    STRUCTURED
      ASSET MORTGAGE INVESTMENTS II INC.

     

    as
      Purchaser

     

     

     

    Dated
      as
      of

     

    August
      31, 2007

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    

    
      	
              SECTION
                1.

            	
              Definitions

            
	
              SECTION
                2.

            	
              Purchase
                and Sale of the Mortgage Loans and Related Rights

            
	
              SECTION
                3.

            	
              Mortgage
                Loan Schedule

            
	
              SECTION
                4.

            	
              Mortgage
                Loan Transfer.

            
	
              SECTION
                5.

            	
              Examination
                of Mortgage Files.

            
	
              SECTION
                6.

            	
              Recordation
                of Assignments of Mortgage.

            
	
              SECTION
                7.

            	
              Representations
                and Warranties of EMC Concerning the Mortgage Loans

            
	
              SECTION
                8.

            	
              Representations
                and Warranties Concerning EMC

            
	
              SECTION
                9.

            	
              Representations
                and Warranties Concerning the Purchaser

            
	
              SECTION
                10.

            	
              Representations
                and Warranties Concerning Master Funding

            
	
              SECTION
                11.

            	
              Conditions
                to Closing.

            
	
              SECTION
                12.

            	
              Fees
                and Expenses

            
	
              SECTION
                13.

            	
              Accountants’
                Letters.

            
	
              SECTION
                14.

            	
              Indemnification.

            
	
              SECTION
                15.

            	
              Notices

            
	
              SECTION
                16.

            	
              Transfer
                of Mortgage Loans

            
	
              SECTION
                17.

            	
              Termination

            
	
              SECTION
                18.

            	
              Representations,
                Warranties and Agreements to Survive Delivery

            
	
              SECTION
                19.

            	
              Severability

            
	
              SECTION
                20.

            	
              Counterparts

            
	
              SECTION
                21.

            	
              Amendment

            
	
              SECTION
                22.

            	
              GOVERNING
                LAW

            
	
              SECTION
                23.

            	
              Further
                Assurances

            
	
              SECTION
                24.

            	
              Successors
                and Assigns.

            
	
              SECTION
                25.

            	
              The
                Sellers

            
	
              SECTION
                26.

            	
              Entire
                Agreement

            
	
              SECTION
                27.

            	
              No
                Partnership

            
	 	 

    

    

    EXHIBITS
      AND SCHEDULE TO

    MORTGAGE
      LOAN PURCHASE AGREEMENT

     

    
      	
              Exhibit
                1

            	
              Contents
                of Mortgage File

            
	
              Exhibit
                2

            	
              Mortgage
                Loan Schedule Information

            
	
              Exhibit
                3

            	
              Sellers’
                Information

            
	
              Exhibit
                4

            	
              Purchaser’s
                Information

            
	
              Exhibit
                5

            	
              Schedule
                of Lost Notes

            
	
              Exhibit
                6

            	
              Standard
                & Poor’s Appendix E to Glossary

            
	
              Schedule
                A

            	
              Required
                Ratings for Each Class of Certificates

            
	
              Schedule
                B

            	
              Mortgage
                Loan Schedule

            

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    MORTGAGE
      LOAN PURCHASE AGREEMENT

     

    MORTGAGE
      LOAN PURCHASE AGREEMENT, dated as of August 31, 2007, as amended and
      supplemented by any and all amendments hereto (collectively, the
“Agreement”), by and among EMC MORTGAGE CORPORATION, a Delaware
      corporation (“EMC” or a “Seller”), MASTER FUNDING LLC, a Delaware
      limited liability company (“Master Funding” or a “Seller”, and
      together with EMC, the “Sellers”) and STRUCTURED ASSET MORTGAGE
      INVESTMENTS II INC., a Delaware corporation (the
“Purchaser”).

     

    Upon
      the
      terms and subject to the conditions of this Agreement, each Seller agrees to
      sell, and the Purchaser agrees to purchase, certain conventional, first lien
      mortgage loans secured primarily by one- to four-family residential properties
      and individual condominium units (collectively, the “Mortgage Loans”) as
      described herein. The Purchaser intends to deposit the Mortgage Loans into
      a
      trust fund (the “Trust Fund”) and create Prime Mortgage Trust, Mortgage
      Pass-Through Certificates, Series 2007-3 (the “Certificates”), under a
      pooling and servicing agreement, to be dated as of August 1, 2007 (the
“Pooling and Servicing Agreement”), among the Purchaser, as depositor,
      U.S. Bank National Association, as trustee (the “Trustee”) and EMC
      Mortgage Corporation, as seller and master servicer.

     

    The
      Purchaser has filed with the Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-3 (Number 333-140247)
      relating to its Mortgage Pass-Through Certificates and the offering of certain
      series thereof (including certain classes of the Certificates) from time to
      time
      in accordance with Rule 415 under the Securities Act of 1933, as amended, and
      the rules and regulations of the Commission promulgated thereunder (the
“Securities Act”). Such registration statement, when it became effective
      under the Securities Act, and the prospectus relating to the public offering
      of
      certain classes of the Certificates by the Purchaser (the “Public
      Offering”), as each may be amended or supplemented from time to time
      pursuant to the Securities Act or otherwise, are referred to herein as the
      “Registration Statement” and the “Prospectus,” respectively. The
“Term Sheet Supplement” shall mean the free writing prospectus, dated
      August 30, 2007. The “Prospectus
      Supplement” shall mean the final
      supplement, dated
August 31, 2007, to the
      Prospectus, dated June 28, 2007, relating to certain
      classes of the
      Certificates. With respect to the Public Offering of certain classes of
      the Certificates, the Purchaser and Bear, Stearns & Co. Inc. (“Bear
      Stearns”) have entered into a terms agreement dated as of August 30, 2007 to
      an underwriting agreement dated February 26, 2007, between the Purchaser and
      Bear Stearns (together, the “Underwriting Agreement”).

     

    Now,
      therefore, in consideration of the premises and the mutual agreements set forth
      herein, the parties hereto agree as follows:

     

    SECTION
      1.  Definitions.  Certain
      terms are defined herein. Capitalized terms used herein but not defined herein
      shall have the meanings specified in the Pooling and Servicing Agreement. The
      following other terms are defined as follows:

     

    Acquisition
      Price: With respect to EMC and the sale of the EMC Mortgage Loans, cash in
      an amount equal to $______ (plus $______ in accrued interest)1. With respect to Master Funding
      and the sale
      of the Master Funding Mortgage Loans, cash in an amount equal to $______ (plus
      $______ in accrued interest)1.

     

    Bear
      Stearns: Bear, Stearns & Co. Inc.

     

    Closing
      Date: August 31, 2007.

     

    Cut-off
      Date: August 1, 2007.

     

    Cut-off
      Date Balance: Shall mean $299,959,137.

     

    Deleted
      Mortgage Loan: A Mortgage Loan replaced or to be replaced by a Substitute
      Mortgage Loan.

     

    Due
      Date: With respect to each Mortgage Loan, the date in each month on which
      its scheduled payment is due if such due date is the first day of a month and
      otherwise is deemed to be the first day of the following month or such other
      date specified in the related Servicing Agreement.

     

    EMC:
      EMC Mortgage Corporation.

     

    EMC
      Flow Loans:  The Mortgage Loans purchased by EMC pursuant to a
      flow loan purchase agreement.

     

    EMC
      Mortgage Loans:  The Mortgage Loans identified as such on the
      Mortgage Loan Schedule for which EMC is the applicable Seller.

     

    Fitch:
      Fitch Ratings, or its successor in interest.

     

    Master
      Funding: Master Funding LLC.

     

    Master
      Funding  Mortgage Loans:  The Mortgage Loans identified
      as such on the Mortgage Loan Schedule for which Master Funding is the applicable
      Seller.

     

    Master
      Servicer: EMC Mortgage Corporation.

     

    MERS:
      Mortgage Electronic Registration Systems, Inc., a corporation organized and
      existing under the laws of the State of Delaware, or any successor
      thereto.

     

    MERS®
      System: The system of recording transfers of Mortgages electronically
      maintained by MERS.

     

    Mortgage:
      The mortgage or deed of trust creating a first lien on an interest in real
      property securing a Mortgage Note.

     

    Mortgage
      File: The items referred to in Exhibit 1 pertaining to a particular
      Mortgage Loan and any additional documents required to be added to such
      documents pursuant to this Agreement.

     

    Mortgage
      Interest Rate: The annual rate of interest borne by a Mortgage Note as
      stated therein.

     

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

     

    Net
      Rate: For each Mortgage Loan, the Mortgage Interest Rate for such Mortgage
      Loan less the Servicing Fee Rate and the Lender-Paid PMI Rate (if
      applicable).

     

    Opinion
      of Counsel: A written opinion of counsel, who may be counsel for a Seller or
      the Purchaser, reasonably acceptable to the Trustee.

     

    Person:
      Any legal person, including any individual, corporation, partnership, joint
      venture, association, joint stock company, trust, unincorporated organization
      or
      government or any agency or political subdivision thereof.

     

    Purchase
      Price: With respect to any Mortgage Loan (or any property acquired with
      respect thereto) required to be repurchased by EMC (on its own behalf as a
      Seller and on behalf of Master Funding) pursuant to this Agreement or Article
      II
      of the Pooling and Servicing Agreement, an amount equal to the sum of (i)(a)
      100% of the Outstanding Principal Balance of such Mortgage Loan as of the date
      of repurchase (or if the related Mortgaged Property was acquired with respect
      thereto, 100% of the Outstanding Principal Balance at the date of the
      acquisition), plus (b) accrued but unpaid interest on the Outstanding Principal
      Balance at the related Mortgage Interest Rate, through and including the last
      day of the month of repurchase, plus (c) any unreimbursed Monthly Advances
      and
      servicing advances payable to the Servicer of the Mortgage Loan and (ii) any
      costs and damages (if any) incurred by the Trust in connection with any
      violation of such Mortgage Loan of any anti-predatory lending laws.

     

    Rating
      Agencies: Fitch and S&P, each a “Rating Agency.”

     

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

     

    Security
      Instrument: A written instrument creating a valid first lien on a Mortgaged
      Property securing a Mortgage Note, which may be any applicable form of mortgage,
      deed of  trust, deed to secure debt or security deed, including any
      riders or addenda thereto.

     

    Servicing
      Agreements: Shall have the meaning assigned to such term in the Pooling and
      Servicing Agreement.

     

    Standard
      & Poor’s or S&P: Standard & Poor’s, a division of The
      McGraw-Hill Companies, Inc. or its successors in interest.

     

    Substitute
      Mortgage Loan: A mortgage loan substituted for a Deleted Mortgage Loan which
      must meet on the date of such substitution the requirements stated herein and
      in
      the Pooling and Servicing Agreement; upon such substitution, such mortgage
      loan
      shall be a “Mortgage Loan” hereunder.

     

    Value:
      The value of the Mortgaged Property at the time of origination of the related
      Mortgage Loan, such value being the lesser of (i) the value of such property
      set
      forth in an appraisal accepted by the applicable originator of the Mortgage
      Loan
      or (ii) the sales price of such property at the time of
      origination.

     

    
      

        
        1           Please
          contact Bear, Stearns & Co.
          Inc. for Purchase Price.

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

    SECTION
      2.  Purchase
      and Sale of the Mortgage Loans and Related
      Rights.  (a)  Upon satisfaction of the conditions set
      forth in Section 11 hereof, each Seller agrees to sell, and the Purchaser agrees
      to purchase Mortgage Loans sold by such Seller having an aggregate outstanding
      principal balance as of the Cut-off Date equal to the Cut-off Date
      Balance.

     

    (b)  The
      closing for the purchase and sale of the Mortgage Loans and the closing for
      the
      issuance of the Certificates will take place on the Closing Date at the office
      of the Purchaser’s counsel in New York, New York or such other place as the
      parties shall agree.

     

    (c)  Upon
      the
      satisfaction of the conditions set forth in Section 11 hereof, on the Closing
      Date, the Purchaser shall pay to each respective Seller the related Acquisition
      Price for the Mortgage Loans sold by such Seller in immediately available funds
      by wire transfer to such account or accounts as shall be designated by such
      Seller.

     

    (d)  In
      addition to the foregoing, on the Closing Date each Seller assigns to the
      Purchaser all of its right, title and interest in the Servicing Agreements
      (other than its right to enforce the representations and warranties set forth
      therein).

     

    SECTION
      3.  Mortgage
      Loan Schedule.  EMC (on its own behalf as a Seller and on behalf
      of Master Funding) agrees to provide to the Purchaser as of the Cut-off Date
      a
      listing of the Mortgage Loans (the “Mortgage Loan Schedule”) setting
      forth the information listed on Exhibit 2 to this Agreement with respect
      to each of the Mortgage Loans being sold by the respective Seller. The Mortgage
      Loan Schedule shall be delivered to the Purchaser on the Closing Date and shall
      be in form and substance mutually agreed to by EMC (on its own behalf as a
      Seller and on behalf of Master Funding) and the Purchaser.

     

    SECTION
      4.  Mortgage
      Loan Transfer.

     

    (a)  The
      Purchaser will be entitled to all scheduled payments of principal and interest
      on the Mortgage Loans due after the Cut-off Date (regardless of when actually
      collected) and all payments thereon, other than scheduled principal and interest
      due on or before the Cut-off Date but received after the Cut-off Date. Each
      Seller will be entitled to all scheduled payments of principal and interest
      on
      the Mortgage Loans due on or before the Cut-off Date (including payments
      collected after the Cut-off Date) and all payments thereon, other than scheduled
      principal and interest due after the Cut-off Date but received on or before
      the
      Cut-off Date. Such principal amounts and any interest thereon belonging to
      the
      related Seller as described above will not be included in the aggregate
      outstanding principal balance of the Mortgage Loans as of the Cut-off Date
      as
      set forth on the Mortgage Loan Schedule.

     

    (b)  Pursuant
      to various conveyancing documents to be executed on the Closing Date and
      pursuant to the Pooling and Servicing Agreement, the Purchaser will assign
      on
      the Closing Date all of its right, title and interest in and to the Mortgage
      Loans to the Trustee for the benefit of the Certificateholders. In connection
      with the transfer and assignment of the Mortgage Loans, each Seller has
      delivered or will deliver or cause to be delivered to the Trustee by the Closing
      Date or such later date as is agreed to by the Purchaser and such Seller (each
      of the Closing Date and such later date is referred to as a “Mortgage File
      Delivery Date”), the items of each Mortgage File, provided,
however, that in lieu of the foregoing, each Seller may deliver
      the
      following documents, under the circumstances set forth below: (w) in lieu of
      the
      original Security Instrument (other than the Mortgages related to the EMC Flow
      Loans), assignments to the Trustee or intervening assignments thereof which
      have
      been delivered, are being delivered or will, upon receipt of recording
      information relating to the Security Instrument required to be included thereon,
      be delivered to recording offices for recording and have not been returned
      to
      the related Seller in time to permit their delivery as specified above, the
      related Seller may deliver a true copy thereof with a certification, on the
      face
      of such copy, substantially as follows: “Certified to be a true and correct copy
      of the original”; (x) in lieu of the Security Instrument (other than the
      Mortgages related to the EMC Flow Loans), assignments to the Trustee or
      intervening assignments thereof, if the applicable jurisdiction retains the
      originals of such documents (as evidenced by a certification from such Seller
      to
      such effect) such Seller may deliver photocopies of such documents containing
      an
      original certification by the judicial or other governmental authority of the
      jurisdiction where such documents were recorded; (y) in lieu of the Mortgage
      Notes relating to the Mortgage Loans, each identified in the list delivered
      by
      the Purchaser to the Trustee on the Closing Date and attached hereto as Exhibit
      5, the related Seller may deliver lost note affidavits and indemnities of such
      Seller; and (z) the related Seller shall not be required to deliver intervening
      assignments or Mortgage Note endorsements between the related Underlying Seller
      and such Seller, between such Seller and the Depositor, and between the
      Depositor and the Trustee; and provided further, however, that in the case
      of
      Mortgage Loans which have been prepaid in full after the Cut-off Date and prior
      to the Closing Date, the such Seller, in lieu of delivering the above documents,
      may deliver to the Trustee a certification by such Seller or the Master Servicer
      to such effect and shall deposit all amounts paid in respect of such Mortgage
      Loans in the Master Servicer Collection Account on the Closing
      Date.  Each Seller shall deliver such original documents (including
      any original documents as to which certified copies had previously been
      delivered) or such certified copies to the Trustee promptly after they are
      received.  EMC (on its own behalf as a Seller and on behalf of Master
      Funding) shall cause the Mortgage and intervening assignments, if any, and
      the
      assignment of the Security Instrument to be recorded not later than 180 days
      after the Closing Date, unless such assignment is not required to be recorded
      under the terms set forth in Section 6(a) hereof.

     

    (c)  In
      connection with the assignment of any Mortgage Loan registered on the MERS®
System, EMC (on its own behalf as a Seller and on behalf of Master Funding)
      further agrees that it will cause, at EMC’s own expense, within 30 days after
      the Closing Date, the MERS® System to indicate that such Mortgage Loans have
      been assigned by the related Seller to the Purchaser and by the Purchaser to
      the
      Trustee in accordance with this Agreement for the benefit of the
      Certificateholders by including (or deleting, in the case of Mortgage Loans
      which are repurchased in accordance with this Agreement) in such computer files
      (a) the code in the field which identifies the specific Trustee and (b) the
      code
      in the field “Pool Field” which identifies the series of the Certificates issued
      in connection with such Mortgage Loans. EMC (on its own behalf as a Seller
      and
      on behalf of Master Funding) further agrees that it will not, and will not
      permit any Servicer or the Master Servicer, and the Master Servicer agrees
      that
      it will not, alter the codes referenced in this paragraph with respect to any
      Mortgage Loan during the term of the Pooling and Servicing Agreement unless
      and
      until such Mortgage Loan is repurchased in accordance with the terms of the
      Pooling and Servicing Agreement.

     

    (d)  Each
      Seller and the Purchaser acknowledge hereunder that all of the Mortgage Loans
      and the related servicing will ultimately be assigned to U.S. Bank National
      Association, as Trustee for the Holders of the Mortgage, on the date
      hereof.

     

    SECTION
      5.  Examination
      of Mortgage Files.

     

    (a)  On
      or
      before the Mortgage File Delivery Date, each Seller will have made the related
      Mortgage Files available to the Purchaser or its agent for examination which
      may
      be at the offices of the Trustee or the related Seller and/or such Seller’s
      custodian. The fact that the Purchaser or its agent has conducted or has failed
      to conduct any partial or complete examination of the related Mortgage Files
      shall not affect the Purchaser’s rights to demand cure, repurchase, substitution
      or other relief as provided in this Agreement. In furtherance of the foregoing,
      each Seller shall make the related Mortgage Files available to the Purchaser
      or
      its agent from time to time so as to permit the Purchaser to confirm such
      Seller’s compliance with the delivery and recordation requirements of this
      Agreement and the Pooling and Servicing Agreement. 

     

    (b)  Pursuant
      to the Pooling and Servicing Agreement, on the Closing Date the Custodian,
      on
      behalf of the Trustee, for the benefit of the Certificateholders, will
      acknowledge receipt of each Mortgage Loan by delivery to EMC (on its own behalf
      as a Seller and on behalf of Master Funding), the Purchaser and the Trustee
      of
      an initial certification in the form attached as Exhibit One to the Custodial
      Agreement.

     

    (c)  Pursuant
      to the Pooling and Servicing Agreement, within 90 days of the Closing Date
      (or,
      with respect to any Substitute Mortgage Loan, within five Business Days after
      the receipt by the Trustee or Custodian thereof), the Trustee will review or
      shall cause the Custodian to review items of the Mortgage Files as set forth
      on
Exhibit 1 and will deliver to EMC (on its own behalf as a Seller and on
      behalf of Master Funding), the Purchaser and the Trustee an interim
      certification substantially in the form of Exhibit Two to the Custodial
      Agreement.  If the Trustee or Custodian, as its agent, finds any
      document listed on Exhibit 1 not to have been executed or received, or to
      be unrelated, determined on the basis of the Mortgagor name, original principal
      balance and loan number, to the Mortgage Loans identified in the Final Mortgage
      Loan Schedule or to appear defective on its face (a “Material Defect”),
      the Trustee or the Custodian, as its agent, shall promptly notify EMC of such
      Material Defect. EMC (on its own behalf as a Seller and on behalf of Master
      Funding) shall correct or cure any such Material Defect within 90 days from
      the
      date of notice from the Trustee or the Custodian, as its agent, of the Material
      Defect and if EMC (on its own behalf as a Seller and on behalf of Master
      Funding) fails to correct or cure such Material Defect within such period and
      such defect materially and adversely affects the interests of the
      Certificateholders in the related Mortgage Loan, EMC (on its own behalf as
      a
      Seller and on behalf of Master Funding) will, in accordance with the terms
      of
      the Pooling and Servicing Agreement, within 90 days of the date of notice,
      provide the Trustee with a Substitute Mortgage Loan (if within two years of
      the
      Closing Date) or purchase the related Mortgage Loan at the applicable Purchase
      Price; provided that, if such defect would cause the Mortgage Loan to be
      other than a “qualified mortgage” as defined in Section 860G(a)(3) of the Code,
      any such cure, repurchase or substitution must occur within 90 days from the
      date such breach was discovered; provided,however, that if such
      defect relates solely to the inability of EMC (on its own behalf as a Seller
      and
      on behalf of Master Funding) to deliver the original Security Instrument or
      intervening assignments thereof, or a certified copy because the originals
      of
      such documents, or a certified copy, have not been returned by the applicable
      jurisdiction, EMC shall not be required to purchase such Mortgage Loan if EMC
      (on its own behalf as a Seller and on behalf of Master Funding) delivers such
      original documents or certified copy promptly upon receipt, but in no event
      later than 360 days after the Closing Date. The foregoing repurchase obligation
      shall not apply in the event that EMC (on its own behalf as a Seller and on
      behalf of Master Funding) cannot deliver such original or copy of any document
      submitted for recording to the appropriate recording office in the applicable
      jurisdiction because such document has not been returned by such office;
      provided that EMC (on its own behalf as a Seller and on behalf of Master
      Funding) shall instead deliver a recording receipt of such recording office
      or,
      if such receipt is not available, a certificate confirming that such documents
      have been accepted for recording, and delivery to the Trustee or the Custodian,
      as its agent, shall be effected by EMC (on its own behalf as a Seller and on
      behalf of Master Funding) within thirty days of its receipt of the original
      recorded document.

     

    (d)  Pursuant
      to the Pooling and Servicing Agreement, within 180 days of the Closing Date
      (or,
      with respect to any Substitute Mortgage Loan, within five Business Days after
      the receipt by the Trustee or Custodian thereof) the Trustee will review or
      cause the Custodian to review items of the Mortgage Files as set forth on
Exhibit 1 and will deliver to EMC (on its own behalf as a Seller and on
      behalf of Master Funding), the Purchaser and the Trustee a final certification
      substantially in the form of Exhibit Three to the Custodial Agreement. If the
      Trustee or Custodian, as its agent, finds a Material Defect, the Trustee or
      the
      Custodian, as its agent, shall promptly notify EMC of such Material Defect.
      EMC
      (on its own behalf as a Seller and on behalf of Master Funding) shall correct
      or
      cure any such Material Defect within 90 days from the date of notice from the
      Trustee or the Custodian, as its agent, of the Material Defect and if EMC (on
      its own behalf as a Seller and on behalf of Master Funding) fails to correct
      or
      cure such Material Defect within such period and such defect materially and
      adversely affects the interests of the Certificateholders in the related
      Mortgage Loan, EMC (on its own behalf as a Seller and on behalf of Master
      Funding) will, in accordance with the terms of the Pooling and Servicing
      Agreement, within 90 days of the date of notice, provide the Trustee with a
      Substitute Mortgage Loan (if within two years of the Closing Date) or purchase
      the related Mortgage Loan at the applicable Purchase Price; provided
      that, if such defect would cause the Mortgage Loan to be other than a
“qualified mortgage” as defined in Section 860G(a)(3) of the Code, any such
      cure, repurchase or substitution must occur within 90 days from the date such
      breach was discovered; provided,however, that if such defect
      relates solely to the inability of EMC (on its own behalf as a Seller and on
      behalf of Master Funding) to deliver the original Security Instrument or
      intervening assignments thereof, or a certified copy because the originals
      of
      such documents, or a certified copy, have not been returned by the applicable
      jurisdiction, EMC shall not be required to purchase such Mortgage Loan if EMC
      (on its own behalf as a Seller and on behalf of Master Funding) delivers such
      original documents or certified copy promptly upon receipt, but in no event
      later than 360 days after the Closing Date. The foregoing repurchase obligation
      shall not apply in the event that EMC (on its own behalf as a Seller and on
      behalf of Master Funding) cannot deliver such original or copy of any document
      submitted for recording to the appropriate recording office in the applicable
      jurisdiction because such document has not been returned by such office;
      provided that EMC (on its own behalf as a Seller and on behalf of Master
      Funding) shall instead deliver a recording receipt of such recording office
      or,
      if such receipt is not available, a certificate confirming that such documents
      have been accepted for recording, and delivery to the Trustee or the Custodian,
      as its agent, shall be effected by EMC (on its own behalf as a Seller and on
      behalf of Master Funding) within thirty days of its receipt of the original
      recorded document.

     

    (e)  At
      the
      time of any substitution, EMC (on its own behalf as a Seller and on behalf
      of
      Master Funding) shall deliver or cause to be delivered the Substitute Mortgage
      Loan, the related Mortgage File and any other documents and payments required
      to
      be delivered in connection with a substitution pursuant to the Pooling and
      Servicing Agreement. At the time of any purchase or substitution, the Trustee
      in
      accordance with the terms of the Pooling and Servicing Agreement shall (i)
      assign to EMC (on its own behalf as a Seller and on behalf of Master Funding)
      and cause the Custodian to release the documents (including, but not limited
      to,
      the Mortgage, Mortgage Note and other contents of the Mortgage File) in the
      possession of the Custodian relating to the Deleted Mortgage Loan and (ii)
      execute and deliver such instruments of transfer or assignment, in each case
      without recourse, as shall be necessary to vest in EMC (on its own behalf as
      a
      Seller and on behalf of Master Funding) title to such Deleted Mortgage
      Loan.

     

    SECTION
      6.  Recordation
      of Assignments of Mortgage.

     

    (a)  EMC
      (on
      its own behalf as a Seller and on behalf of Master Funding) shall cause each
      assignment of the Security Instrument from the Sellers to the Trustee to be
      recorded not later than 180 days after the Closing Date, unless (a) such
      recordation is not required by the Rating Agencies or an Opinion of Counsel
      has
      been provided to the Trustee (with a copy to the Custodian) which states that
      the recordation of such assignments is not necessary to protect the interests
      of
      the Certificateholders in the related Mortgage Loans or (b) MERS is identified
      on the Mortgage or a properly recorded assignment of the Mortgage, as the
      Mortgagee of record solely as nominee for the related Seller and its successors
      and assigns; provided, however, notwithstanding the foregoing,
      each assignment shall be submitted for recording by EMC (on its own behalf
      as a
      Seller and on behalf of Master Funding) in the manner described above, at no
      expense to the Trust or Trustee, upon the earliest to occur of (i) reasonable
      direction by the Holders of Certificates evidencing Fractional Undivided
      Interests aggregating not less than 25% of the portion of the Trust related
      to
      such Classes, (ii) the occurrence of an Event of Default, (iii) the occurrence
      of a bankruptcy, insolvency or foreclosure relating to EMC and (iv) the
      occurrence of a servicing transfer as described in Section 8.02 of the Pooling
      and Servicing Agreement.

     

    While
      each such Mortgage or assignment is being recorded, if necessary, EMC (on its
      own behalf as a Seller and on behalf of Master Funding) shall leave or cause
      to
      be left with the Trustee a certified copy of such Mortgage or assignment. All
      customary recording fees and reasonable expenses relating to the recordation
      of
      the assignments of mortgage to the Trustee or the Opinion of Counsel, as the
      case may be, shall be borne by EMC.

     

    (b)  It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans
      by each Seller to the Purchaser, as contemplated by this Agreement be, and
      be
      treated as, a sale. It is, further, not the intention of the parties that such
      conveyance be deemed a pledge of the Mortgage Loans by such Seller to the
      Purchaser to secure a debt or other obligation of that Seller. However, in
      the
      event that, notwithstanding the intent of the parties, the Mortgage Loans are
      held by a court to continue to be property of such Seller, then (a) this
      Agreement shall also be deemed to be a security agreement within the meaning
      of
      Articles 8 and 9 of the applicable Uniform Commercial Code; (b) the transfer
      of
      the Mortgage Loans provided for herein shall be deemed to be a grant by such
      Seller to the Purchaser of a security interest in all of such Seller’s right,
      title and interest in and to the Mortgage Loans and all amounts payable to
      the
      holders of the Mortgage Loans in accordance with the terms thereof and all
      proceeds of the conversion, voluntary or involuntary, of the foregoing into
      cash, instruments, securities or other property, to the extent the Purchaser
      would otherwise be entitled to own such Mortgage Loans and proceeds pursuant
      to
      Section 4 hereof, including all amounts, other than investment earnings, from
      time to time held or invested in any accounts created pursuant to the Pooling
      and Servicing Agreement, whether in the form of cash, instruments, securities
      or
      other property; (c) the possession by the Purchaser or the Trustee of Mortgage
      Notes and such other items of property as constitute instruments, money,
      negotiable documents or chattel paper shall be deemed to be “possession by the
      secured party” for purposes of perfecting the security interest pursuant to
      Section 9-313 (or comparable provision) of the applicable Uniform Commercial
      Code; and (d) notifications to persons holding such property, and
      acknowledgments, receipts or confirmations from persons holding such property,
      shall be deemed notifications to, or acknowledgments, receipts or confirmations
      from, financial intermediaries, bailees or agents (as applicable) of the
      Purchaser for the purpose of perfecting such security interest under applicable
      law. Any assignment of the interest of the Purchaser pursuant to any provision
      hereof or pursuant to the Pooling and Servicing Agreement shall also be deemed
      to be an assignment of any security interest created hereby. EMC (on its own
      behalf as a Seller and on behalf of Master Funding) and the Purchaser shall,
      to
      the extent consistent with this Agreement, take such actions as may be
      reasonably necessary to ensure that, if this Agreement were deemed to create
      a
      security interest in the Mortgage Loans, such security interest would be deemed
      to be a perfected security interest of first priority under applicable law
      and
      will be maintained as such throughout the term of the Pooling and Servicing
      Agreement.

     

    SECTION
      7.  Representations
      and Warranties of EMC Concerning the Mortgage Loans.  EMC hereby
      represents and warrants to the Purchaser as of the Closing Date or such other
      date as may be specified below with respect to each Mortgage Loan:

     

    (i)  the
      information set forth in the Mortgage Loan Schedule attached hereto is true
      and
      correct in all material;

     

    (ii)  immediately
      prior to the transfer to the Purchaser, the related Seller was the sole owner
      of
      beneficial title and holder of each Mortgage and Mortgage Note relating to
      the
      Mortgage Loans and is conveying the same free and clear of any and all liens,
      claims, encumbrances, participation interests, equities, pledges, charges or
      security interests of any nature and such Seller has full right and authority
      to
      sell or assign the same pursuant to this Agreement;

     

    (iii)  each
      Mortgage Loan at the time it was made complied in all material respects with
      all
      applicable laws and regulations, including, without limitation, usury, equal
      credit opportunity, disclosure and recording laws and all applicable
      anti-predatory lending laws; and each Mortgage Loan has been serviced in all
      material respects in accordance with all applicable laws and regulations,
      including, without limitation, usury, equal credit opportunity, disclosure
      and
      recording laws and all applicable anti-predatory lending laws and the terms
      of
      the related Mortgage Note, the Mortgage and other loan documents;

     

    (iv)  there
      is
      no monetary default existing under any Mortgage or the related Mortgage Note
      and
      there is no material event which, with the passage of time or with notice and
      the expiration of any grace or cure period, would constitute a default, breach
      or event of acceleration; and neither the related Seller, any of its affiliates
      nor any servicer of any related Mortgage Loan has taken any action to waive
      any
      default, breach or event of acceleration; and no foreclosure action is
      threatened or has been commenced with respect to the Mortgage Loan;

     

    (v)  the
      terms
      of the Mortgage Note and the Mortgage have not been impaired, waived, altered
      or
      modified in any respect, except by written instruments, (i) if required by
      law
      in the jurisdiction where the Mortgaged Property is located, or (ii) to protect
      the interests of the Trustee on behalf of the Certificateholders;

     

    (vi)  no
      selection procedure reasonably believed by the related Seller to be adverse
      to
      the interests of the Certificateholders was utilized in selecting the Mortgage
      Loans;

     

    (vii)  each
      Mortgage is a valid and enforceable first lien on the property securing the
      related Mortgage Note and each Mortgaged Property is owned by the Mortgagor
      in
      fee simple (except with respect to common areas in the case of condominiums,
      PUDs and deminimis PUDs) or by leasehold for a term longer than
      the term of the related Mortgage, subject only to (i) the lien of current real
      property taxes and assessments, (ii) covenants, conditions and restrictions,
      rights of way, easements and other matters of public record as of the date
      of
      recording of such Mortgage, such exceptions being acceptable to mortgage lending
      institutions generally or specifically reflected in the appraisal obtained
      in
      connection with the origination of the related Mortgage Loan or referred to
      in
      the lender’s title insurance policy delivered to the originator of the related
      Mortgage Loan and (iii) 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 such Mortgage;

     

    (viii)  there
      is
      no mechanics’ lien or claim for work, labor or material affecting the premises
      subject to any Mortgage which is or may be a lien prior to, or equal with,
      the
      lien of such Mortgage except those which are insured against by the title
      insurance policy referred to in (xiii) below;

     

    (ix)  there
      was
      no delinquent tax or assessment lien against the property subject to any
      Mortgage, except where such lien was being contested in good faith and a stay
      had been granted against levying on the property;

     

    (x)  there
      is
      no valid offset, defense or counterclaim to any Mortgage Note or Mortgage,
      including the obligation of the Mortgagor to pay the unpaid principal and
      interest on such Mortgage Note;

     

    (xi)  the
      physical property subject to any Mortgage is free of material damage and is
      in
      good repair and there is no proceeding pending or threatened for the total
      or
      partial condemnation of any Mortgaged Property;

     

    (xii)  the
      Mortgaged Property and all improvements thereon comply with all requirements
      of
      any applicable zoning and subdivision laws and ordinances;

     

    (xiii)  a
      lender’s title insurance policy (on an ALTA or CLTA form) or binder, or other
      assurance of title customary in the relevant jurisdiction therefor in a form
      acceptable to Fannie Mae or Freddie Mac, was issued on the date that each
      Mortgage Loan was created by a title insurance company which, to the best of
      the
      related Seller’s knowledge, was qualified to do business in the jurisdiction
      where the related  Mortgaged Property is located, insuring such Seller
      and its successors and assigns that the Mortgage is a first priority lien on
      the
      related Mortgaged Property in the original principal amount of the Mortgage
      Loan.  The related Seller is the sole insured under such lender’s
      title insurance policy, and such policy, binder or assurance is valid and
      remains in full force and effect, and each such policy, binder or assurance
      shall contain all applicable endorsements including a negative amortization
      endorsement, if applicable;

     

    (xiv)  at
      the
      time of origination, each Mortgaged Property was the subject of an appraisal
      which conformed to the underwriting requirements of the originator of the
      Mortgage Loan and, the appraisal is in a form acceptable to Fannie Mae or
      FHLMC.

     

    (xv)  the
      improvements on each Mortgaged Property securing a Mortgage Loan is insured
      (by
      an insurer which is acceptable to the related Seller) against loss by fire
      and
      such hazards as are covered under a standard extended coverage endorsement
      in
      the locale in which the Mortgaged Property is located, in an amount which is
      not
      less than the lesser of the maximum insurable value of the improvements securing
      such Mortgage Loan or the outstanding principal balance of the Mortgage Loan,
      but in no event in an amount less than an amount that is required to prevent
      the
      Mortgagor from being deemed to be a co-insurer thereunder; if the improvement
      on
      the Mortgaged Property is a condominium unit, it is included under the coverage
      afforded by a blanket policy for the condominium project; if upon origination
      of
      the related Mortgage Loan, the improvements on the Mortgaged Property were
      in an
      area identified as a federally designated flood area, a flood insurance policy
      is in effect in an amount representing coverage not less than the least of
      (i)
      the outstanding principal balance of the Mortgage Loan, (ii) the restorable
      cost
      of improvements located on such Mortgaged Property or (iii) the maximum coverage
      available under federal law; and each Mortgage obligates the Mortgagor
      thereunder to maintain the insurance referred to above at the Mortgagor’s cost
      and expense;

     

    (xvi)  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), (2), (4), (5), (6),
      (7)  and (9) without reliance on the provisions of Treasury Regulation
      Section 1.860G-2(a)(3) or Treasury Regulation Section 1.860G-2(f)(2) or any
      other provision that would allow a Mortgage Loan to be treated as a “qualified
      mortgage” notwithstanding its failure to meet the requirements of Section
      860G(a)(3)(A) of the Code and Treasury Regulation Section 1.860G-2(a)(1), (2),
      (4), (5), (6), (7) and (9);

     

    (xvii)  none
      of
      the Mortgage Loans are (a) loans subject to 12 CFR Part 226.31, 12 CFR Part
      226.32 or 12 CFR Part 226.34 of Regulation Z, the regulation implementing TILA,
      which implements the Home Ownership and Equity Protection Act of 1994, as
      amended or (b) “high cost home,” “covered” (excluding home loans defined as
“covered home loans” in the New Jersey Home Ownership Security Act of 2002 that
      were originated between November 26, 2003 and July 7, 2004), “high risk home” or
“predatory” loans under any applicable state, federal or local law (or a
      similarly classified loan using different terminology under a law imposing
      heightened regulatory scrutiny or additional legal liability for residential
      mortgage loans having high interest rates, points and/or fees);

     

    (xviii)  the
      information set forth in Schedule A of the Prospectus Supplement with respect
      to
      the Mortgage Loans is true and correct in all material respects;

     

    (xix)  no
      Mortgage Loan (a) is a “high cost loan” or “covered loan” as applicable (as such
      terms are defined in the then current Standard & Poor’s LEVELS® Glossary,
      which is now Version 6.0, Appendix E, attached hereto as Exhibit 6 or (b) was
      originated on or after October 1, 2002 and before March 7, 2003, which is
      governed by the Georgia Fair Lending Act;

     

    (xx)  each
      Mortgage Loan was originated in accordance with the underwriting guidelines
      of
      the related originator;

     

    (xxi)  each
      original Mortgage has been recorded or is in the process of being recorded
      in
      accordance with the requirements of Section 2.01 of the Pooling and Servicing
      Agreement in the appropriate jurisdictions wherein such recordation is required
      to perfect the lien thereof for the benefit of the Trust Fund;

     

    (xxii)  the
      related Mortgage File contains each of the documents and instruments
      listed  in Section 2.01 of the Pooling and Servicing Agreement,
      subject to any exceptions, substitutions and qualifications as are set forth
      in
      such Section;

     

    (xxiii)  the
      Mortgage Loans are currently being serviced in accordance with accepted
      servicing practices; and

     

    (xxiv)  with
      respect to each Mortgage Loan that has a prepayment penalty feature, each such
      prepayment penalty is enforceable and will be enforced by the related Seller
      and
      each prepayment penalty is permitted pursuant to federal, state and local
      law.  In addition, with respect to each Mortgage Loan (i) no Mortgage
      Loan will impose a prepayment penalty for a term in excess of five years from
      the date such Mortgage Loan was originated and (ii) such prepayment penalty
      is
      at least equal to the lesser of (A) the maximum amount permitted under
      applicable law and (B) six months interest at the related Mortgage Interest
      Rate
      on the amount prepaid in excess of 20% of the original principal balance of
      such
      Mortgage Loan.

     

    (xxv)  if
      any of
      the Mortgage Loans are secured by a leasehold interest, with respect to each
      leasehold interest: the use of leasehold estates for residential properties
      is
      an accepted practice in the area where the related Mortgaged Property is
      located; residential property in such area consisting of leasehold estates
      is
      readily marketable; the lease is recorded and no party is in any way in breach
      of any provision of such lease; the leasehold is in full force and effect and
      is
      not subject to any prior lien or encumbrance by which the leasehold could be
      terminated or subject to any charge or penalty; and the remaining term of the
      lease does not terminate less than ten years after the maturity date of such
      Mortgage Loan;

     

    (xxvi)  each
      Mortgage Loan was originated (a)  by a savings and loan association,
      savings bank, commercial bank, credit union, insurance company or similar
      institution that is supervised and examined by a federal or state authority,
      (b)
      by a mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to Sections 203 and 211 of the National Housing Act, as amended, or
      (c)
      by a mortgage broker or correspondent lender in a manner such that the related
      Mortgage Loan would be regarded for purposes of Section 3(a)(41) of the
      Securities Exchange Act of 1934, as amended, as having been originated by an
      entity described in clauses (a) or (b) above.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 7 will inure to the benefit of the Purchaser, its successors and
      assigns, notwithstanding any restrictive or qualified endorsement on any
      Mortgage Note or assignment of Mortgage or the examination of any Mortgage
      File.
      Upon any substitution for a Mortgage Loan, the representations and warranties
      set forth above shall be deemed to be made by the related Seller as to any
      Substitute Mortgage Loan as of the date of substitution.

     

    Upon
      discovery or receipt of notice by EMC, the Purchaser or the Trustee of a breach
      of any representation or warranty of EMC set forth in this Section 7 which
      materially and adversely affects the value of the interests of the Purchaser,
      the Certificateholders or the Trustee in any of the Mortgage Loans delivered
      to
      the Purchaser pursuant to this Agreement, the party discovering or receiving
      notice of such breach shall give prompt written notice to the others. In the
      case of any such breach of a representation or warranty set forth in this
      Section 7, within 90 days from the date of discovery by EMC, or the date EMC
      is
      notified by the party discovering or receiving notice of such breach (whichever
      occurs earlier), EMC will (i) cure such breach in all material respects, (ii)
      purchase the affected Mortgage Loan at the applicable Purchase Price or (iii)
      if
      within two years of the Closing Date, substitute a qualifying Substitute
      Mortgage Loan in exchange for such Mortgage Loan; provided that, (A) in the
      case
      of a breach of the representation and warranty concerning the Mortgage Loan
      Schedule contained in clause (i) of this Section 7, if such breach is material
      and relates to any field on the Mortgage Loan Schedule which identifies any
      Prepayment Charge or (B) in the case of a breach of the representation contained
      in clause (x) of this Section 7, then, in each case, in lieu of purchasing
      such
      Mortgage Loan from the Trust Fund at the Purchase Price, EMC shall pay the
      amount of the Prepayment Charge (net of any amount previously collected by
      or
      paid to the Trust Fund in respect of such Prepayment Charge) from its own funds
      and without reimbursement therefor, and EMC shall have no obligation to
      repurchase or substitute for such Mortgage Loan. The obligations of EMC to
      cure,
      purchase or substitute a qualifying Substitute Mortgage Loan shall constitute
      the Purchaser’s, the Trustee’s and the Certificateholder’s sole and exclusive
      remedy under this Agreement or otherwise respecting a breach of representations
      or warranties hereunder with respect to the Mortgage Loans, except for the
      obligation of EMC to indemnify the Purchaser for such breach as set forth in
      and
      limited by Section 14 hereof.

     

    Any
      cause
      of action against EMC or relating to or arising out of a breach by EMC of any
      representations and warranties made in this Section 7 shall accrue as to any
      Mortgage Loan upon (i) discovery of such breach by EMC or notice thereof by
      the
      party discovering such breach and (ii) failure by EMC to cure such breach,
      purchase such Mortgage Loan or substitute a qualifying Substitute Mortgage
      Loan
      pursuant to the terms hereof.

     

    SECTION
      8.  Representations
      and Warranties  Concerning EMC.  As of the date hereof
      and as of the Closing Date, EMC represents and warrants to the Purchaser and
      Master Funding as to itself in the capacity indicated as follows:

     

    (a)  EMC
      (i)
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the State of Delaware and (ii) is qualified and in good standing to
      do
      business in each jurisdiction where such qualification is necessary, except
      where the failure so to qualify would not reasonably be expected to have a
      material adverse effect on EMC’s business as presently conducted or on EMC’s
      ability to enter into this Agreement and to consummate the transactions
      contemplated hereby;

     

    (b)  EMC
      has
      full power to own its property, to carry on its business as presently conducted
      and to enter into and perform its obligations under this Agreement;

     

    (c)  the
      execution and delivery by EMC of this Agreement have been duly authorized by
      all
      necessary action on the part of EMC; and neither the execution and delivery
      of
      this Agreement, nor the consummation of the transactions herein contemplated,
      nor compliance with the provisions hereof, will conflict with or result in
      a
      breach of, or constitute a default under, any of the provisions of any law,
      governmental rule, regulation, judgment, decree or order binding on EMC or
      its
      properties or the charter or by-laws of EMC, except those conflicts, breaches
      or
      defaults which would not reasonably be expected to have a material adverse
      effect on EMC’s ability to enter into this Agreement and to consummate the
      transactions contemplated hereby;

     

    (d)  the
      execution, delivery and performance by EMC of this Agreement and the
      consummation of the transactions contemplated hereby do not require the consent
      or approval of, the giving of notice to, the registration with, or the taking
      of
      any other action in respect of, any state, federal or other governmental
      authority or agency, except those consents, approvals, notices, registrations
      or
      other actions as have already been obtained, given or made and, in connection
      with the recordation of the Mortgages, powers of attorney or assignments of
      Mortgages not yet completed;

     

    (e)  this
      Agreement has been duly executed and delivered by EMC and, assuming due
      authorization, execution and delivery by the Purchaser, constitutes a valid
      and
      binding obligation of EMC enforceable against it in accordance with its terms
      (subject to applicable bankruptcy and insolvency laws and other similar laws
      affecting the enforcement of the rights of creditors generally);

     

    (f)  there
      are
      no actions, suits or proceedings pending or, to the knowledge of EMC, threatened
      against EMC, before or by any court, administrative agency, arbitrator or
      governmental body (i) with respect to any of the transactions contemplated
      by
      this Agreement or (ii) with respect to any other matter which in the judgment
      of
      EMC will be determined adversely to EMC and will if determined adversely to
      EMC
      materially and adversely affect EMC’s ability to perform its obligations under
      this Agreement; and EMC is not in default with respect to any order of any
      court, administrative agency, arbitrator or governmental body so as to
      materially and adversely affect the transactions contemplated by this Agreement;
      and

     

    (g)  the
      Sellers’ Information (as defined in Section 14(a) hereof) does not include any
      untrue statement of a material fact or omit to state a material fact necessary
      in order to make the statements made, in light of the circumstances under which
      they were made, not misleading.

     

    SECTION
      9.  Representations
      and Warranties Concerning the Purchaser.  As of the date hereof
      and as of the Closing Date, the Purchaser represents and warrants to the Sellers
      as follows:

     

    (a)  the
      Purchaser (i) is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware and (ii) is qualified and
      in
      good standing as a foreign corporation to do business in each jurisdiction
      where
      such qualification is necessary, except where the failure so to qualify would
      not reasonably be expected to have a material adverse effect on the Purchaser’s
      business as presently conducted or on the Purchaser’s ability to enter into this
      Agreement and to consummate the transactions contemplated hereby;

     

    (b)  the
      Purchaser has full corporate power to own its property, to carry on its business
      as presently conducted and to enter into and perform its obligations under
      this
      Agreement;

     

    (c)  the
      execution and delivery by the Purchaser of this Agreement have been duly
      authorized by all necessary corporate action on the part of the Purchaser;
      and
      neither the execution and delivery of this Agreement, nor the consummation
      of
      the transactions herein contemplated, nor compliance with the provisions hereof,
      will conflict with or result in a breach of, or constitute a default under,
      any
      of the provisions of any law, governmental rule, regulation, judgment, decree
      or
      order binding on the Purchaser or its properties or the articles of
      incorporation or by-laws of the Purchaser, except those conflicts, breaches
      or
      defaults which would not reasonably be expected to have a material adverse
      effect on the Purchaser’s ability to enter into this Agreement and to consummate
      the transactions contemplated hereby;

     

    (d)  the
      execution, delivery and performance by the Purchaser of this Agreement and
      the
      consummation of the transactions contemplated hereby do not require the consent
      or approval of, the giving of notice to, the registration with, or the taking
      of
      any other action in respect of, any state, federal or other governmental
      authority or agency, except those consents, approvals, notices, registrations
      or
      other actions as have already been obtained, given or made;

     

    (e)  this
      Agreement has been duly executed and delivered by the Purchaser and, assuming
      due authorization, execution and delivery by the Sellers, constitutes a valid
      and binding obligation of the Purchaser enforceable against it in accordance
      with its terms (subject to applicable bankruptcy and insolvency laws and other
      similar laws affecting the enforcement of the rights of creditors
      generally);

     

    (f)  there
      are
      no actions, suits or proceedings pending or, to the knowledge of the Purchaser,
      threatened against the Purchaser, before or by any court, administrative agency,
      arbitrator or governmental body (i) with respect to any of the transactions
      contemplated by this Agreement or (ii) with respect to any other matter which
      in
      the judgment of the Purchaser will be determined adversely to the Purchaser
      and
      will if determined adversely to the Purchaser materially and adversely affect
      the Purchaser’s ability to perform its obligations under this Agreement; and the
      Purchaser is not in default with respect to any order of any court,
      administrative agency, arbitrator or governmental body so as to materially
      and
      adversely affect the transactions contemplated by this Agreement;
      and

     

    (g)  the
      Purchaser’s Information (as defined in Section 14(b) hereof) does not include
      any untrue statement of a material fact or omit to state a material fact
      necessary in order to make the statements made, in light of the circumstances
      under which they were made, not misleading.

     

    SECTION
      10.  Representations
      and Warranties Concerning Master Funding.  As of the date hereof
      and as of the Closing Date, Master Funding represents and warrants to EMC and
      the Purchaser as follows:

     

    (a)  Master
      Funding (i) is a limited liability company duly organized, validly existing
      and
      in good standing under the laws of the State of Delaware and (ii) is qualified
      and in good standing to do business in each jurisdiction where such
      qualification is necessary, except where the failure so to qualify would not
      reasonably be expected to have a material adverse effect on Master Funding’s
      business as presently conducted or on Master Funding’s ability to enter into
      this Agreement and to consummate the transactions contemplated
      hereby;

     

    (b)  Master
      Funding has full power to own its property, to carry on its business as
      presently conducted and to enter into and perform its obligations under this
      Agreement;

     

    (c)  The
      execution and delivery by Master Funding of this Agreement has been duly
      authorized by all necessary action on the part of Master Funding; and neither
      the execution and delivery of this Agreement, nor the consummation of the
      transactions herein contemplated, nor compliance with the provisions hereof
      or
      thereof, will conflict with or result in a breach of, or constitute a default
      under, any of the provisions of any law, governmental rule, regulation,
      judgment, decree or order binding on Master Funding or its properties or the
      written consent of the sole member or limited liability company agreement of
      Master Funding, except those conflicts, breaches or defaults which would not
      reasonably be expected to have a material adverse effect on Master Funding’s
      ability to enter into this Agreement and to consummate the transactions
      contemplated hereby;

     

    (d)  The
      execution, delivery and performance by Master Funding of this Agreement and
      the
      consummation of the transactions contemplated hereby do not require the consent
      or approval of, the giving of notice to, the registration with, or the taking
      of
      any other action in respect of, any state, federal or other governmental
      authority or agency, except those consents, approvals, notices, registrations
      or
      other actions as have already been obtained, given or made and, in connection
      with the recordation of the Mortgages, powers of attorney or assignments of
      Mortgages not yet completed;

     

    (e)  This
      Agreement has been duly executed and delivered by Master Funding and, assuming
      due authorization, execution and delivery by the Purchaser or the parties
      thereto, constitutes a valid and binding obligation of Master Funding
      enforceable against it in accordance with its terms (subject to applicable
      bankruptcy and insolvency laws and other similar laws affecting the enforcement
      of the rights of creditors generally); and

     

    (f)  There
      are
      no actions, suits or proceedings pending or, to the knowledge of Master Funding,
      threatened against Master Funding, before or by any court, administrative
      agency, arbitrator or governmental body (i) with respect to any of the
      transactions contemplated by this Agreement or (ii) with respect to any other
      matter which in the judgment of Master Funding could reasonably be expected
      to
      be determined adversely to Master Funding and if determined adversely to Master
      Funding materially and adversely affect Master Funding’s ability to perform its
      obligations under this Agreement; and Master Funding is not in default with
      respect to any order of any court, administrative agency, arbitrator or
      governmental body so as to materially and adversely affect the transactions
      contemplated by this Agreement.

     

    SECTION
      11.  Conditions
      to Closing.

     

    (a)  The
      obligations of the Purchaser under this Agreement will be subject to the
      satisfaction, on or prior to the Closing Date, of the following
      conditions:

     

    (i)  Each
      of
      the obligations of each Seller required to be performed at or prior to the
      Closing Date pursuant to the terms of this Agreement shall have been duly
      performed and complied with in all material respects; all of the representations
      and warranties of each Seller under this Agreement shall be true and correct
      as
      of the date or dates specified in all material respects; and no event shall
      have
      occurred which, with notice or the passage of time, would constitute a default
      under this Agreement, or the Pooling and Servicing Agreement; and the Purchaser
      shall have received certificates to that effect signed by authorized officers
      of
      each of the Sellers.

     

    (ii)  The
      Purchaser shall have received all of the following closing documents, in such
      forms as are agreed upon and reasonably acceptable to the Purchaser, duly
      executed by all signatories (other than the Purchaser) as required pursuant
      to
      the respective terms thereof:

     

    (1)  The
      Pooling and Servicing Agreement, in form and substance reasonably satisfactory
      to the Trustee and the Purchaser, and all documents required thereby duly
      executed by all signatories;

     

    (2)  A
      certificate of an officer of EMC dated as of the Closing Date, in a form
      reasonably acceptable to the Purchaser, and attached thereto the resolutions
      of
      EMC authorizing the transactions contemplated by this Agreement, together with
      copies of the charter and by-laws of EMC;

     

    (3)  A
      certificate of an officer of Master Funding dated as of the Closing Date, in
      a
      form reasonably acceptable to the Purchaser, and attached thereto the
      resolutions of Master Funding authorizing the transactions contemplated by
      this
      Agreement, together with copies of the written consent of the sole member,
      limited liability company agreement and certificate of good standing of Master
      Funding;

     

    (4)  One
      or
      more opinions of counsel from the Sellers’ counsel otherwise in form and
      substance reasonably satisfactory to the Purchaser, the Trustee and each Rating
      Agency;

     

    (5)  A
      letter
      from each of the Rating Agencies giving each Class of Certificates set forth
      on
      Schedule A the rating set forth on Schedule A; and

     

    (6)  Such
      other documents, certificates (including additional representations and
      warranties) and opinions as may be reasonably necessary to secure the intended
      ratings from each Rating Agency for the Certificates.

     

    (iii)  The
      Certificates to be sold to Bear Stearns pursuant to the Underwriting Agreement
      and the Purchase Agreement shall have been issued and sold to Bear
      Stearns.

     

    (iv)  Each
      Seller shall have furnished to the Purchaser such other certificates of its
      officers or others and such other documents and opinions of counsel to evidence
      fulfillment of the conditions set forth in this Agreement and the transactions
      contemplated hereby as the Purchaser and its counsel may reasonably
      request.

     

    (b)  The
      obligations of each Seller under this Agreement shall be subject to the
      satisfaction, on or prior to the Closing Date, of the following
      conditions:

     

    (i)  The
      obligations of the Purchaser required to be performed by it on or prior to
      the
      Closing Date pursuant to the terms of this Agreement shall have been duly
      performed and complied with in all material respects, and all of the
      representations and warranties of the Purchaser under this Agreement shall
      be
      true and correct in all material respects as of the date hereof and as of the
      Closing Date, and no event shall have occurred which would constitute a breach
      by it of the terms of this Agreement, and each Seller shall have received a
      certificate to that effect signed by an authorized officer of the
      Purchaser.

     

    (ii)  Each
      Seller shall have received copies of all of the following closing documents,
      in
      such forms as are agreed upon and reasonably acceptable to each Seller, duly
      executed by all signatories other than the related Seller as required pursuant
      to the respective terms thereof:

     

    (1)  The
      Pooling and Servicing Agreement, in form and substance reasonably satisfactory
      to EMC, and all documents required thereby duly executed by all
      signatories;

     

    (2)  A
      certificate of an officer of the Purchaser dated as of the Closing Date, in
      a
      form reasonably acceptable to each Seller, and attached thereto the resolutions
      of the Purchaser authorizing the transactions contemplated by this Agreement
      and
      the Pooling and Servicing Agreement, together with copies of the Purchaser’s
      articles of incorporation, and evidence as to the good standing of the Purchaser
      dated as of a recent date;

     

    (3)  One
      or
      more opinions of counsel from the Purchaser’s counsel in form and substance
      reasonably satisfactory to each Seller;

     

    (4)  Such
      other documents, certificates (including additional representations and
      warranties) and opinions as may be reasonably necessary to secure the intended
      rating from each Rating Agency for the Certificates.

     

    SECTION
      12.  Fees
      and Expenses.  Subject to Section 17 hereof, EMC (on its own
      behalf as a Seller and on behalf of Master Funding) shall pay on the Closing
      Date or such later date as may be agreed to by the Purchaser (i) the fees and
      expenses of the Sellers’ attorneys and the reasonable fees and expenses of the
      Purchaser’s attorneys, (ii) the fees and expenses of Deloitte & Touche LLP,
      (iii) the fee for the use of Purchaser’s Registration Statement based on the
      aggregate original principal amount of the Certificates and the filing fee
      of
      the Commission as in effect on the date on which the Registration Statement
      was
      declared effective, (iv) the fees and expenses including counsel’s fees and
      expenses in connection with any “blue sky” and legal investment matters, (v) the
      fees and expenses of the Trustee which shall include without limitation the
      fees
      and expenses of the Trustee (and the fees and disbursements of its counsel)
      with
      respect to (A) legal and document review of this Agreement, the Pooling and
      Servicing Agreement, the Certificates and related agreements, (B) attendance
      at
      the Closing and (C) review of the Mortgage Loans to be performed by the
      Custodian, (vi) the expenses for printing or otherwise reproducing the
      Certificates, the Prospectus and the Prospectus Supplement, (vii) the fees
      and
      expenses of each Rating Agency (both initial and ongoing), (viii) the fees
      and
      expenses relating to the preparation and recordation of mortgage assignments
      (including intervening assignments, if any and if available, to evidence a
      complete chain of title from the originator to the Trustee) from each Seller
      to
      the Trustee or the expenses relating to the Opinion of Counsel referred to
      in
      Section 6(a) hereof, as the case may be, and (ix) Mortgage File due diligence
      expenses and other out-of-pocket expenses incurred by the Purchaser in
      connection with the purchase of the Mortgage Loans and by Bear Stearns in
      connection with the sale of the Certificates. EMC (on its own behalf as a Seller
      and on behalf of Master Funding) additionally agrees to pay directly to any
      third party on a timely basis the fees provided for above which are charged
      by
      such third party and which are billed periodically.

     

    SECTION
      13.  Accountants’
      Letters.

     

    (a)  Deloitte
      & Touche LLP will review the characteristics of a sample of the Mortgage
      Loans described in the Mortgage Loan Schedule and will compare those
      characteristics to the description of the Mortgage Loans contained in the
      Prospectus Supplement under the captions “Summary of Prospectus Supplement—The
      Mortgage Loans”, “The Mortgage Pool” and “Certain Characteristics of the
      Mortgage Loans” in Schedule A thereto. EMC (on its own behalf as a Seller and on
      behalf of Master Funding) will cooperate with the Purchaser in making available
      all information and taking all steps reasonably necessary to permit such
      accountants to complete the review and to deliver the letters required of them
      under the Underwriting Agreement. Deloitte & Touche LLP will also confirm
      certain calculations as set forth under the caption “Yield On The Certificates”
in the Prospectus Supplement.

     

    (b)  To
      the
      extent statistical information with respect to the Master Servicer or any
      Servicer’s servicing portfolio is included in the Prospectus Supplement under
      the caption “The Master Servicer and the Servicers,” a letter from the certified
      public accountant for such Master Servicer, Servicer or Servicers, as
      applicable, will be delivered to the Purchaser dated the date of the Prospectus
      Supplement, in the form previously agreed to by EMC and the Purchaser, with
      respect to such statistical information.

     

    SECTION
      14.  Indemnification.

     

    (a)  EMC
      (on
      its own behalf as a Seller and on behalf of Master Funding) shall indemnify
      and
      hold harmless the Purchaser and its directors, officers and controlling persons
      (as defined in Section 15 of the Securities Act) from and against any loss,
      claim, damage or liability or action in respect thereof, to which they or any
      of
      them may become subject, under the Securities Act or otherwise, insofar as
      such
      loss, claim, damage, liability or action arises out of, or is based upon (i)
      any
      untrue statement of a material fact contained in the Sellers’ Information
      as identified in Exhibit 3, the omission to state in the Prospectus
      Supplement or Prospectus (or any amendment thereof or supplement thereto
      approved by EMC (on its own behalf as a Seller and on behalf of Master Funding)
      and in which additional Sellers’ Information is identified), in reliance upon
      and in conformity with Sellers’ Information a material fact required to be
      stated therein or necessary to make the statements therein in light of the
      circumstances in which they were made, not misleading, (ii) any representation
      or warranty assigned or made by EMC in Section 7 or Section 8 or by Master
      Funding in Section 10 hereof being, or alleged to be, untrue or incorrect,
      or
      (iii) any failure by EMC (on its own behalf as a Seller and on behalf of Master
      Funding) to perform its obligations under this Agreement; and EMC (on its own
      behalf as a Seller and on behalf of Master Funding) shall reimburse the
      Purchaser and each other indemnified party for any legal and other expenses
      reasonably incurred by them in connection with investigating or defending or
      preparing to defend against any such loss, claim, damage, liability or
      action.

     

    The
      foregoing indemnity agreement is in addition to any liability which EMC or
      Master Funding otherwise may have to the Purchaser or any other such indemnified
      party.

     

    (b)  The
      Purchaser shall indemnify and hold harmless each Seller and its respective
      directors, officers and controlling persons (as defined in Section 15 of the
      Securities Act) from and against any loss, claim, damage or liability or action
      in respect thereof, to which they or any of them may become subject, under
      the
      Securities Act or otherwise, insofar as such loss, claim, damage, liability
      or
      action arises out of, or is based upon (i) any untrue statement of a material
      fact contained in the Purchaser’s Information as identified in Exhibit
      4, the omission to state in the Prospectus Supplement or Prospectus (or
      any
      amendment thereof or supplement thereto approved by the Purchaser and in which
      additional Purchaser’s Information is identified), in reliance upon and in
      conformity with the Purchaser’s Information, a material fact required to be
      stated therein or necessary to make the statements therein in light of the
      circumstances in which they were made, not misleading, (ii) any representation
      or warranty made by the Purchaser in Section 9 hereof being, or alleged to
      be,
      untrue or incorrect, or (iii) any failure by the Purchaser to perform its
      obligations under this Agreement; and the Purchaser shall reimburse each Seller,
      and each other indemnified party for any legal and other expenses reasonably
      incurred by them in connection with investigating or defending or preparing
      to
      defend any such loss, claim, damage, liability or action. The foregoing
      indemnity agreement is in addition to any liability which the Purchaser
      otherwise may have to the Sellers, or any other such indemnified
      party,

     

    (c)  Promptly
      after receipt by an indemnified party under subsection (a) or (b) above of
      notice of the commencement of any action, such indemnified party shall, if
      a
      claim in respect thereof is to be made against the indemnifying party under
      such
      subsection, notify each party against whom indemnification is to be sought
      in
      writing of the commencement thereof (but the failure so to notify an
      indemnifying party shall not relieve it from any liability which it may have
      under this Section 14 except to the extent that it has been prejudiced in any
      material respect by such failure or from any liability which it may have
      otherwise). In case any such action is brought against any indemnified party,
      and it notifies an indemnifying party of the commencement thereof, the
      indemnifying party will be entitled to participate therein and, to the extent
      it
      may elect by written notice delivered to the indemnified party promptly (but,
      in
      any event, within 30 days) after receiving the aforesaid notice from such
      indemnified party, to assume the defense thereof with counsel reasonably
      satisfactory to such indemnified party. Notwithstanding the foregoing, the
      indemnified party or parties shall have the right to employ its or their own
      counsel in any such case, but the fees and expenses of such counsel shall be
      at
      the expense of such indemnified party or parties unless (i) the employment
      of
      such counsel shall have been authorized in writing by one of the indemnifying
      parties in connection with the defense of such action, (ii) the indemnifying
      parties shall not have employed counsel to have charge of the defense of such
      action within a reasonable time after notice of commencement of the action,
      or
      (iii) such indemnified party or parties shall have reasonably concluded that
      there is a conflict of interest between itself or themselves and the
      indemnifying party in the conduct of the defense of any claim or that the
      interests of the indemnified party or parties are not substantially co-extensive
      with those of the indemnifying party (in which case the indemnifying parties
      shall not have the right to direct the defense of such action on behalf of
      the
      indemnified party or parties), in any of which events such fees and expenses
      shall be borne by the indemnifying parties; provided, however,
      that the indemnifying party shall be liable only for the fees and expenses
      of
      one counsel in addition to one local counsel in the jurisdiction involved.
      Anything in this subsection to the contrary notwithstanding, an indemnifying
      party shall not be liable for any settlement or any claim or action effected
      without its written consent; provided, however, that such consent
      was not unreasonably withheld.

     

    (d)  If
      the
      indemnification provided for in paragraphs (a) and (b) of this Section 14 shall
      for any reason be unavailable to an indemnified party in respect of any loss,
      claim, damage or liability, or any action in respect thereof, referred to in
      Section 14, then the indemnifying party shall in lieu of indemnifying the
      indemnified party contribute to the amount paid or payable by such indemnified
      party as a result of such loss, claim, damage or liability, or action in respect
      thereof, in such proportion as shall be appropriate to reflect the relative
      benefits received by the Sellers on the one hand and the Purchaser on the other
      from the purchase and sale of the Mortgage Loans, the offering of the
      Certificates and the other transactions contemplated hereunder. No person found
      liable for a fraudulent misrepresentation (within the meaning of Section 11(f)
      of the Securities Act) shall be entitled to contribution from any person who
      is
      not also found liable for such fraudulent misrepresentation.

     

    (e)  The
      parties hereto agree that reliance by an indemnified party on any publicly
      available information or any information or directions furnished by an
      indemnifying party shall not constitute negligence, bad faith or willful
      misconduct by such indemnified party.

     

    SECTION
      15.  Notices.  All
      demands, notices and communications hereunder shall be in writing but may be
      delivered by facsimile transmission subsequently confirmed in writing. Notices
      to EMC shall be directed to EMC Mortgage Corporation, 2780 Lake Vista Drive,
      Lewisville, TX 75067 Facsimile: (214) 626-4889, Attention: Michelle Viner;
      notices to Master Funding shall be directed to Master Funding LLC, 2780 Lake
      Vista Drive, Lewisville, Texas 75067 (Facsimile: (214) 626-4889, Attention:
      Mark
      Novachek; and notices to the Purchaser shall be directed to Structured Asset
      Mortgage Investments II Inc., 383 Madison Avenue, New York, New York 10179
      (Telecopy: (212-272-7206)), Attention: Baron Silverstein; or to any other
      address as may hereafter be furnished by one party to the other party by like
      notice. Any such demand, notice or communication hereunder shall be deemed
      to
      have been received on the date received at the premises of the addressee (as
      evidenced, in the case of registered or certified mail, by the date noted on
      the
      return receipt) provided that it is received on a business day during normal
      business hours and, if received after normal business hours, then it shall
      be
      deemed to be received on the next business day.

     

    SECTION
      16.  Transfer
      of Mortgage Loans.  The Purchaser retains the right to assign the
      Mortgage Loans and any or all of its interest under this Agreement to the
      Trustee without the consent of the Sellers, and, upon such assignment, the
      Trustee shall succeed to the applicable rights and obligations of the Purchaser
      hereunder; provided, however, the Purchaser shall remain entitled
      to the benefits set forth in Sections 12, 14 and 18 hereto and as provided
      in
      Section 2(a). Notwithstanding the foregoing, the sole and exclusive right and
      remedy of the Trustee with respect to a breach of representation or warranty
      of
      the Sellers shall be the purchase or substitution obligations of EMC contained
      in Sections 5 and 7 hereof.

     

    SECTION
      17.  Termination.  This
      Agreement may be terminated (a) by the mutual consent of the parties hereto
      prior to the Closing Date, (b) by the Purchaser, if the conditions to the
      Purchaser’s obligation to close set forth under Section 11(a) hereof are not
      fulfilled as and when required to be fulfilled or (c) by any Seller, if the
      conditions to the Sellers’ obligation to close set forth under Section 11(b)
      hereof are not fulfilled as and when required to be fulfilled. In the event
      of
      termination pursuant to clause (b), EMC (on its own behalf as a Seller and
      on
      behalf of Master Funding) shall pay, and in the event of termination pursuant
      to
      clause (c), the Purchaser shall pay, all reasonable out-of-pocket expenses
      incurred by the other in connection with the transactions contemplated by this
      Agreement. In the event of a termination pursuant to clause (a), each party
      shall be responsible for its own expenses.

     

    SECTION
      18.  Representations,
      Warranties and Agreements to Survive Delivery.  All
      representations, warranties and agreements contained in this Agreement, or
      contained in certificates of officers of the Sellers submitted pursuant hereto,
      shall remain operative and in full force and effect and shall survive delivery
      of the Mortgage Loans to the Purchaser (and by the Purchaser to the Trustee).
      Subsequent to the delivery of the Mortgage Loans to the Purchaser, EMC’s
      representations and warranties contained herein with respect to the Mortgage
      Loans shall be deemed to relate to the Mortgage Loans actually delivered to
      the
      Purchaser and included in the Mortgage Loan Schedule and any Substitute Mortgage
      Loan. 

     

    SECTION
      19.  Severability.  If
      any provision of this Agreement shall be prohibited or invalid under applicable
      law, the Agreement shall be ineffective only to such extent, without
      invalidating the remainder of this Agreement.

     

    SECTION
      20.  Counterparts.  This
      Agreement may be executed in counterparts, each of which will be an original,
      but which together shall constitute one and the same agreement.

     

    SECTION
      21.  Amendment.  This
      Agreement cannot be amended or modified in any manner without the prior written
      consent of each party.

     

    SECTION
      22.  Governing
      Law.  This Agreement shall be governed by, and construed in
      accordance with, the laws of the State of New York, without regard to conflict
      of laws principles thereof other than Section 5-1401 of the New York General
      Obligations Law.

     

    SECTION
      23.  Further
      Assurances.  Each of the parties agrees to execute and deliver
      such instruments and take such actions as another party may, from time to time,
      reasonably request in order to effectuate the purpose and to carry out the
      terms
      of this Agreement including any amendments hereto which may be required by
      either Rating Agency.

     

    SECTION
      24.  Successors
      and Assigns.

     

    This
      Agreement shall bind and inure to the benefit of and be enforceable by each
      of
      the Sellers and the Purchaser and their permitted successors and assigns and,
      to
      the extent specified in Section 14 hereof, Bear Stearns, and their directors,
      officers and controlling persons (within the meaning of federal securities
      laws). The Sellers acknowledge and agree that the Purchaser may assign its
      rights under this Agreement (including, without limitation, with respect to
      EMC’s representations and warranties respecting the Mortgage Loans) to the
      Trustee. Any person into which any Seller may be merged or consolidated (or
      any
      person resulting from any merger or consolidation involving such Seller), any
      person resulting from a change in form of such Seller or any person succeeding
      to the business of such Seller, shall be considered the “successor” of such
      Seller hereunder and shall be considered a party hereto without the execution
      or
      filing of any paper or any further act or consent on the part of any party
      hereto. Except as provided in the two preceding sentences, this Agreement cannot
      be assigned, pledged or hypothecated by either party hereto without the written
      consent of the other parties to this Agreement and any such assignment or
      purported assignment shall be deemed null and void.

     

    SECTION
      25.  The
      Sellers.  EMC will keep in full force and effect its existence,
      all rights and franchises as a corporation under the laws of the State of its
      incorporation and will obtain and preserve its qualification to do business
      as a
      foreign corporation in each jurisdiction in which such qualification is
      necessary to perform its obligations under this Agreement.  Master
      Funding will keep in full force and effect its existence, all rights and
      franchises as a limited liability company under the laws of the State of its
      formation and will obtain and preserve its qualification to do business as
      a
      foreign limited liability company in each jurisdiction in which such
      qualification is necessary to perform its obligations under this
      Agreement.

     

    SECTION
      26.  Entire
      Agreement.  This Agreement contains the entire agreement and
      understanding between the parties with respect to the subject matter hereof,
      and
      supersedes all prior and contemporaneous agreements, understandings, inducements
      and conditions, express or implied, oral or written, of any nature whatsoever
      with respect to the subject matter hereof.

     

    SECTION
      27.  No
      Partnership.  Nothing herein contained shall be deemed or
      construed to create a partnership or joint venture between the parties
      hereto.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto
      by their respective duly authorized officers as of the date first above
      written.

     

     

     

    
      	
              EMC
                MORTGAGE CORPORATION

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	 
	 
	
              MASTER
                FUNDING LLC

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	 
	 
	
              STRUCTURED
                ASSET MORTGAGE INVESTMENTS II INC.

               

            
	 	 
	
              By:

            	 
	
              Name:

            	
               

            
	
              Title:

            	
               

            

    

    

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      1

     

    CONTENTS
      OF 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 Purchaser or
      its
      designee, and which shall be delivered to the Purchaser or its designee pursuant
      to the terms of the Agreement.

     

    (i)  The
      original Mortgage Note, endorsed without recourse (a) to the order of the
      Trustee or (b) in the case of a Mortgage Loan registered on the MERS system,
      endorsed in blank, in either case showing an unbroken chain of endorsements
      from
      the originator thereof to the Person endorsing it to the Trustee, or lost note
      affidavit together with a copy of the related Mortgage Note;

     

    (ii)  The
      original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting the
      presence of the MIN and language indicating that such Mortgage Loan is a MOM
      Loan, which shall have been recorded (or, for Mortgage Loans other than the
      EMC
      Flow Loans, if the original is not available, a copy), with evidence of such
      recording indicated thereon (or if the original is not available, a copy),
      with
      evidence of such recording indicated thereon (or if the original Security
      Instrument, assignments to the Trustee or intervening assignments thereof which
      have been delivered, are being delivered or will, upon receipt of recording
      information relating to the Security Instrument required to be included thereon,
      be delivered to recording offices for recording and have not been returned
      to
      the related Seller in time to permit their recording as specified in Section
      2.01(b) of the Pooling and Servicing Agreement, shall be in recordable
      form);

     

    (iii)  unless
      the Mortgage Loan is a MOM Loan or has been assigned in the name of MERS, a
      certified copy of the assignment (which may be in the form of a blanket
      assignment if permitted in the jurisdiction in which the Mortgaged Property
      is
      located) to “U.S. Bank National Association, as Trustee”, with evidence of
      recording with respect to each Mortgage Loan in the name of the Trustee thereon
      (or if (A) the original Security Instrument, assignments to the Trustee or
      intervening assignments thereof which have been delivered, are being delivered
      or will, upon receipt of recording information relating to the Security
      Instrument required to be included thereon, be delivered to recording offices
      for recording and have not been returned to the related Seller in time to permit
      their delivery as specified in Section 2.01(b) of the Pooling and Servicing
      Agreement, the related Seller may deliver a true copy thereof with a
      certification, on the face of such copy, substantially as follows: “Certified to
      be a true and correct copy of the original” or (B) the related Mortgaged
      Property is located in a state other than Maryland or an Opinion of Counsel
      has
      been provided as set forth in Section 2.01(b) of the Pooling and Servicing
      Agreement, shall be in recordable form);

     

    (iv)  all
      intervening assignments of the Security Instrument, if applicable and only
      to
      the extent available to the Sellers with evidence of recording
      thereon;

     

    (v)  the
      original or a copy of the policy or certificate of primary mortgage guaranty
      insurance, to the extent available, if any;

     

    (vi)  the
      original policy of title insurance or mortgagee’s certificate of title insurance
      or commitment or binder for title insurance or, in the event such original
      title
      policy has not been received from the title insurer, such original title policy
      will be delivered within one year of the Closing Date or, in the event such
      original title policy is unavailable, a photocopy of such title policy or,
      in
      lieu thereof, a current lien search on the related Mortgaged Property;
      and

     

    (vii)  originals
      of all modification agreements, if applicable and available.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      2

     

    MORTGAGE
      LOAN SCHEDULE INFORMATION

     

    The
      Mortgage Loan Schedule shall set forth the following information with respect
      to
      each Mortgage Loan:

     

    (a)           the
      city, state and zip code of the Mortgaged Property;

     

    (b)           the
      property type;

     

    (c)           the
      Mortgage Rate;

     

    (d)           the
      Servicing Fee Rate;

     

    (e)           the
      Master Servicer’s Fee Rate, if applicable;

     

    (f)           the
      LPMI Fee, if applicable;

     

    (g)           the
      Trustee Fee Rate, if applicable;

     

    (h)           the
      Net Rate;

     

    (i)           the
      maturity date;

     

    (j)           the
      stated original term to maturity;

     

    (k)           the
      stated remaining term to maturity;

     

    (l)           the
      original principal balance;

     

    (m)           the
      first payment date;

     

    (n)           the
      principal and interest payment in effect as of the Cut-off Date;

     

    (o)           the
      unpaid principal balance as of the Cut-off Date;

     

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

     

    (q)           the
      insurer of any Primary Mortgage Insurance Policy;

     

    (r)           the
      MIN with respect to each MOM Loan;

     

    (s)           the
      Gross Margin, if applicable;

     

    (t)           the
      next Adjustment Date, if applicable;

     

    (u)           the
      Maximum Lifetime Mortgage Rate, if applicable;

     

    (v)           the
      Minimum Lifetime Mortgage Rate, if applicable;

     

    (w)           the
      Periodic Rate Cap, if applicable;

     

    (x)           the
      Loan Group, if applicable;

     

    (y)           a
      code indicating whether the Mortgage Loan is negatively amortizing;

     

    (z)           which
      Mortgage Loans adjust after an initial fixed rate period of one, two, three,
      five, seven or ten years or any other period;

     

    (aa)           the
      Prepayment Charge, if any;

     

    (bb)           lien
      position (e.g., first lien or second lien);

     

    (cc)           a
      code indicating whether the Mortgage Loan is has a balloon payment;

     

    (dd)           a
      code indicating whether the Mortgage Loan is an interest-only loan;

     

    (ee)           the
      interest-only term, if applicable;

     

    (ff)           the
      Mortgage Loan Seller; and

     

    (gg)           the
      original amortization term.

     

    

     

    Such
      schedule also shall set forth for all of the Mortgage Loans, the total number
      of
      Mortgage Loans, the total of each of the amounts described under (n) and (o)
      above, the weighted average by principal balance as of the Cut-off Date of
      each
      of the rates described under (c) through (h) above, and the weighted average
      remaining term to maturity by unpaid principal balance as of the Cut-off
      Date.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      3

     

    SELLERS’
      INFORMATION

     

    All
      information in the Prospectus Supplement described under the following Sections:
      “SUMMARY OF PROSPECTUS SUPPLEMENT—The Mortgage Loans,” “THE MORTGAGE POOL”, “THE
      SPONSOR" and “SCHEDULE A—CERTAIN CHARACTERISTICS OF THE MORTGAGE
      LOANS.”

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      4

     

    PURCHASER’S
      INFORMATION

     

    All
      information in the Prospectus Supplement and the Prospectus, except the Sellers’
Information.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      5

    

    SCHEDULE
      OF LOST NOTES

     

    Available
      Upon Request

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      6

    REVISED
March
      1, 2007

    

    APPENDIX  E
      – STANDARD & POOR’S PREDATORY LENDING CATEGORIES

     

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

     

    
      

       

      
        	
                Standard
                  & Poor’s High Cost Loan Categorization

              
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending

                Law/Effective
                  Date

              	
                Category
                  under

                Applicable
                  Anti-Predatory

                Lending
                  Law

              
	
                Arkansas

              	
                Arkansas
                  Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101
                  etseq.

                Effective
                  July 16, 2003

              	
                High
                  Cost Home Loan

              
	
                Cleveland
                  Heights, OH

              	
                Ordinance
                  No. 72-2003 (PSH), Mun. Code §§ 757.01 etseq.

                Effective
                  June 2, 2003

              	
                Covered
                  Loan

              
	
                Colorado

              	
                Consumer
                  Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101
                  etseq.

                Effective
                  for covered loans offered or entered into on or after January 1,
                  2003.
                  Other provisions of the Act took effect on June 7, 2002

              	
                Covered
                  Loan

              
	
                Connecticut

              	
                Connecticut
                  Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746
                  etseq.

                Effective
                  October 1, 2001

              	
                High
                  Cost Home Loan

              
	
                District
                  of Columbia

              	
                Home
                  Loan Protection Act, D.C. Code §§ 26-1151.01
                  etseq.

                Effective
                  for loans closed on or after January 28, 2003

              	
                Covered
                  Loan

              
	
                Florida

              	
                Fair
                  Lending Act, Fla. Stat. Ann. §§ 494.0078 etseq. Effective
                  October 2, 2002

              	
                High
                  Cost Home Loan

              
	
                Georgia
                  (Oct. 1, 2002 – Mar. 6, 2003)

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1
etseq.

                Effective
                  October 1, 2002 – March 6, 2003

              	
                High
                  Cost Home Loan

              
	
                Georgia
                  as amended (Mar. 7, 2003 – current)

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1

                etseq.

                Effective
                  for loans closed on or after March 7, 2003

              	
                High
                  Cost Home Loan

              
	
                HOEPA
                  Section 32

              	
                Home
                  Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                  §§ 226.32 and 226.34 Effective October 1, 1995, amendments October
                  1,
                  2002

              	
                High
                  Cost Loan

              
	
                Illinois

              	
                High
                  Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5
                  etseq.

                Effective
                  January 1, 2004 (prior to this date, regulations under Residential
                  Mortgage License Act effective from May 14, 2001)

              	
                High
                  Risk Home Loan

              
	
                Indiana

              	
                Indiana
                  Home Loan Practices Act, Ind. Code Ann. §§ 24-9-1-1
                  etseq.

                Effective
                  January 1, 2005; amended by 2005 HB

                1179,
                  effective July 1, 2005.

              	
                High
                  Cost Home Loans

              
	
                Kansas

              	
                Consumer
                  Credit Code, Kan. Stat. Ann. §§ 16a-1-101

                etseq.

                Sections
                  16a-1-301 and 16a-3-207 became effective

                April
                  14, 1999; Section 16a-3-308a became effective

                July
                  1, 1999

              	
                High
                  Loan to Value Consumer

                Loan
                  (id. § 16a-3-207) and;

              
	
                High
                  APR Consumer Loan (id. §

                16a-3-308a)

              
	
                Kentucky

              	
                2003
                  KY H.B. 287 – High Cost Home Loan Act, Ky.

                Rev.
                  Stat. §§ 360.100 etseq.

                Effective
                  June 24, 2003

              	
                High
                  Cost Home Loan

              
	
                Maine

              	
                Truth
                  in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et

                seq.

                Effective
                  September 29, 1995 and as amended from

                time
                  to time

              	
                High
                  Rate High Fee Mortgage

              
	
                Massachusetts

              	
                Part
                  40 and Part 32, 209 C.M.R. §§ 32.00 etseq. and 209 C.M.R. §§
                  40.01 etseq.

                Effective
                  March 22, 2001 and amended from time to time

              	
                High
                  Cost Home Loan

              
	
                Nevada

              	
                Assembly
                  Bill No. 284, Nev. Rev. Stat. §§ 598D.010
etseq.

                Effective
                  October 1, 2003

              	
                Home
                  Loan

              
	
                New
                  Jersey

              	
                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                  etseq.

                Effective
                  for loans closed on or after November 27, 2003

              	
                High
                  Cost Home Loan

              
	
                New
                  Mexico

              	
                Home
                  Loan Protection Act, N.M. Rev. Stat. §§ 58- 21A-1
                  etseq.

                Effective
                  as of January 1, 2004; Revised as of February 26, 2004

              	
                High
                  Cost Home Loan

              
	
                New
                  York

              	
                N.Y.
                  Banking Law Article 6-l

                Effective
                  for applications made on or after April 1, 2003

              	
                High
                  Cost Home Loan

              
	
                North
                  Carolina

              	
                Restrictions
                  and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                  etseq.

                Effective
                  July 1, 2000; amended October 1, 2003 (adding open-end lines of
                  credit)

              	
                High
                  Cost Home Loan

              
	
                Ohio

              	
                H.B.
                  386 (codified in various sections of the Ohio Code), Ohio Rev.
                  Code Ann.
                  §§ 1349.25 etseq.

                Effective
                  May 24, 2002

              	
                Covered
                  Loan

              
	
                Oklahoma

              	
                Consumer
                  Credit Code (codified in various sections of Title 14A)

                Effective
                  July 1, 2000; amended effective January 1, 2004

              	
                Subsection
                  10 Mortgage

              
	
                Rhode
                  Island

              	
                Rhode
                  Island Home Loan Protection Act, R.I. Gen. Laws §§ 34-25.2-1
                  etseq. Effective December 31, 2006.

              	
                High
                  Cost Home Loan

              
	
                South
                  Carolina

              	
                South
                  Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                  etseq.

                Effective
                  for loans taken on or after January 1, 2004

              	
                High
                  Cost Home Loan

              
	
                Tennessee

              	
                Tennessee
                  Home Loan Protection Act, Tenn. Code Ann. §§ 45-20-101
                  etseq. Effective January 1, 2007.

              	
                High
                  Cost Home Loan

              
	
                West
                  Virginia

              	
                West
                  Virginia Residential Mortgage Lender, Broker

                and
                  Servicer Act, W. Va. Code Ann. §§ 31-17-1 et

                seq.

                Effective
                  June 5, 2002

              	
                West
                  Virginia Mortgage Loan Act Loan

              

      

      

      

      
        	
                Standard
                  & Poor’s Covered Loan Categorization

              
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending

                Law/Effective
                  Date

              	
                Category
                  under

                Applicable
                  Anti-Predatory

                Lending
                  Law

              
	
                Georgia
                  (Oct. 1, 2002 – Mar. 6, 2003)

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1
etseq.

                Effective
                  October 1, 2002 – March 6, 2003

              	
                Covered
                  Loan

              
	
                New
                  Jersey

              	
                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                  etseq.

                Effective
                  November 27, 2003 – July 5, 2004

              	
                Covered
                  Home Loan

              

      

      

      
        	
                Standard
                  & Poor’s Home Loan Categorization

              
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending

                Law/Effective
                  Date

              	
                Category
                  under

                Applicable
                  Anti-Predatory

                Lending
                  Law

              
	
                Georgia
                  (Oct. 1, 2002 – Mar. 6, 2003)

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1
etseq.

                Effective
                  October 1, 2002 – March 6, 2003

              	
                Home
                  Loan

              
	
                New
                  Jersey

              	
                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                  etseq.

                Effective
                  for loans closed on or after November 27, 2003

              	
                Home
                  Loan

              
	
                New
                  Mexico

              	
                Home
                  Loan Protection Act, N.M. Rev. Stat. §§ 58- 21A-1
                  etseq.

                Effective
                  as of January 1, 2004; Revised as of February 26, 2004

              	
                Home
                  Loan

              
	
                North
                  Carolina

              	
                Restrictions
                  and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                  etseq.

                Effective
                  July 1, 2000; amended October 1, 2003 (adding open-end lines of
                  credit)

              	
                Consumer
                  Home Loan

              
	
                South
                  Carolina

              	
                South
                  Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                  etseq.

                Effective
                  for loans taken on or after January 1, 2004

              	
                Consumer
                  Home Loan

              

      

      Revised
        03/01/07

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    

    SCHEDULE
      A

     

    REQUIRED
      RATINGS FOR EACH CLASS OF CERTIFICATES

     

    Public
      Certificates

    

     

      
        	
                
                  Class

                

              	
                
                  S&P

                

              	
                
                  Fitch

                

              
	
                Class
                  I-A-1                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-A-2                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-A-3                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-A-4                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-A-5                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-A-6                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-A-7                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-B-1                                             

              	
                AA

              	
                AA

              
	
                Class
                  I-B-2                                             

              	
                A

              	
                A

              
	
                Class
                  I-B-3                                             

              	
                BBB

              	
                BBB

              
	
                Class
                  I-X                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-PO                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-R-1                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  I-R-2                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  II-A-1                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  II-A-2                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  II-B-1                                             

              	
                AA

              	
                AA

              
	
                Class
                  II-B-2                                             

              	
                A

              	
                A

              
	
                Class
                  II-B-3                                             

              	
                BBB

              	
                BBB

              
	
                Class
                  II-X                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  II-PO                                             

              	
                AAA

              	
                AAA

              
	
                Class
                  II-R                                             

              	
                AAA

              	
                AAA

              

      

    

     

     

    None
      of
      the above ratings have been lowered since the respective dates of such
      letters.

     

    Private
      Certificates

    

     

      
        	
                
                  Class

                

              	
                
                  S&P

                

              	
                
                  Fitch

                

              
	
                Class
                  I-B-4                                             

              	
                BB

              	
                BB

              
	
                Class
                  I-B-5                                             

              	
                B

              	
                B

              
	
                Class
                  I-B-6                                             

              	
                --

              	
                --

              
	
                Class
                  II-B-4                                             

              	
                BB

              	
                BB

              
	
                Class
                  II-B-5                                             

              	
                B

              	
                B

              
	
                Class
                  II-B-6                                             

              	
                --

              	
                --

              

      

    

     

    None
      of
      the above ratings have been lowered since the respective dates of such
      letters.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      B

     

    MORTGAGE
      LOAN SCHEDULE

     

    [Provided
      upon request]

    

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      I-1

    

    EMC
      SERVICING AGREEMENT

     

     

    ______________________________________________________________________________

    
 

    STRUCTURED
      ASSET MORTGAGE INVESTMENTS II INC.

    Owner

    

    and

    

    EMC
      MORTGAGE CORPORATION

    Servicer

    

    

    

    

    SERVICING
      AGREEMENT

    

    Dated
      as
      of August 1, 2007

    

    Prime
      Mortgage Trust 2007-3,

    Mortgage
      Pass-Through Certificates

    Series
      2007-3

     

    _________________________________________________________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBITS

    

    

    Exhibit
      A                      Mortgage
      Loan Schedule

    

    Exhibit
      B                      Custodial
      Account Letter Agreement

    

    Exhibit
      C                      Escrow
      Account Letter Agreement

    

    Exhibit
      D                      Form
      of Request for Release

    

    Exhibit
      E                      Remittance
      Overview Report

    

    Exhibit
      F                      Remittance
      Summary Report

    

    Exhibit
      G                      Form
      of Owner Certification

    

    Exhibit
      H                      Summary
      of Regulation AB Servicing Criteria

    

    Exhibit
      I                
      Summary of Applicable Regulation AB
      Requirements

    

    Exhibit
      J                 
     Servicing Criteria to be Addressed in Assessment
      of Compliance

    

    Exhibit
      K                      Default
      Overview Report

    

    Exhibit
      L                      Delinquent
      Summary Report

    

    Exhibit
      M                     Calculation
      of Gain-Loss Delinquent Loans

    

    Exhibit
      N                      Modified
      Loans Report

    

    Exhibit
      O                      Claims
      Submitted Report

    

    Exhibit
      P                      Loss
      Severity Summary Report

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      IS A
      SERVICING AGREEMENT, dated as of August 1, 2007, and is executed between
      Structured Asset Mortgage Investments II Inc. (the "Owner") and EMC Mortgage
      Corporation (the "Servicer").

     

    W
      I T N E
      S S E T H :

    

    WHEREAS,
      the Owner is the owner of the Mortgage Loans;

     

    WHEREAS,
      the Owner and the Servicer wish to prescribe the permanent management, servicing
      and control of the Mortgage Loans;

     

    NOW,
      THEREFORE, in consideration of the mutual agreements hereinafter set forth,
      and
      for other good and valuable consideration, the receipt and adequacy of which
      is
      hereby acknowledged, the Owner and the Servicer agree as follows:

     

    ARTICLE
      I

    DEFINITIONS

     

    Section
      1.01.  Defined Terms.

     

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

     

    Accepted
      Servicing Practices:   The procedures, including prudent
      collection and loan administration procedures, and the standard of care (i)
      employed by prudent mortgage servicers which service mortgage loans of the
      same
      type as the Mortgage Loans in the jurisdictions in which the related Mortgage
      Properties are located or (ii) in accordance with the Fannie Mae Guide or
      Freddie Mac Guide, subject to any variances negotiated with Fannie Mae or Freddie
      Mac
and subject to the express provisions of this Agreement.  Such
      standard of care shall not be lower than that the Servicer customarily employs
      and exercises in servicing and administering similar mortgage loans for its
      own
      account and shall be in full compliance with all federal, state, and local
      laws,
      ordinances, rules and regulations.

     

    Adjustment
      Date:  As to each ARM Loan, the date on which the Mortgage
      Interest Rate is adjusted in accordance with the terms of the related Mortgage
      Note.

     

    Agreement:  This
      Servicing Agreement including all exhibits hereto, amendments hereof and
      supplements hereto.

     

    Amounts
      Held for Future Distribution:  As to any Remittance Date shall be
      the total of the amounts held in the Custodial Account on any date of
      determination which were received after the Cut-off Date on account of (i)
      Liquidation Proceeds and Insurance Proceeds received or made in the month of
      such Remittance Date and Principal Prepayments received after the related
      Prepayment Period, and (ii) payments which represent early receipt of scheduled
      payments of principal and interest due on a date or dates subsequent to the
      related Due Date.

     

    ARM
      Loans: First lien, conventional, 1-4 family residential Mortgage Loans with
      interest rates which adjust from time to time in accordance with the related
      Index and are subject to Periodic Rate Caps and Lifetime Rate Caps and which
      may
      permit conversion to fixed interest rates.

     

    Business
      Day:   Any day other than (i) a Saturday or Sunday, or (ii) a
      legal holiday in the States of Maryland, Minnesota, New York or the jurisdiction
      in which the Servicer conducts its servicing activities, or (iii) a day on
      which
      banks in the States of Maryland, Minnesota, New York or the jurisdiction in
      which the Servicer conducts its servicing activities are authorized or obligated
      by law or executive order to be closed.

     

    Capitalization
      Reimbursement Amount: For any Remittance Date, the aggregate of the amounts
      added to the Stated Principal Balances of the Mortgage Loans during the
      preceding calendar month in connection with the modification of such Mortgage
      Loans pursuant to Section 4.01 which amounts represent unreimbursed Monthly
      Advances or Servicing Advances owed to the Servicer.

    

    Code:  The
      Internal Revenue Code of 1986, as it may be amended from time to time, or any
      successor statute thereto, and applicable U.S. Department of the Treasury
      regulations issued pursuant thereto.

     

    Commission
      or SEC:  The Securities and Exchange Commission.

     

    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, to the extent not required to be
      released to a Mortgagor in accordance with the terms of the related Mortgage
      Loan Documents.

     

    Custodial
      Account:   One or more demand account or accounts created and
      maintained pursuant to Section 4.04 which shall be entitled "PRIME 2007-3
      Custodial Account in trust for SAMI II, Owner of Whole Loan Mortgages and
      various Mortgagors" established at a Qualified Depository, each of which
      accounts shall be held by such Qualified Depository in a fiduciary capacity,
      separate and apart from its funds and general assets.

     

    Custodians:  Wells
      Fargo Bank, N.A. and Treasury Bank, a Division of Countrywide Bank, FSB, or
      such
      other custodian as Owner shall designate.

     

    Cut-off
      Date:  With respect to any Mortgage Loan, the opening of business
      on the first day of the month in which the related closing date with respect
      to
      such Mortgage Loan occurs.

     

    Delinquent:  As
      defined in the related pooling and servicing agreement.

     

    Depositor:
      The depositor, as such term is defined in Regulation AB, with respect to any
      Pass-Through Transfer.

     

    Determination
      Date: The 15th day (or if such 15th day is not a Business Day, the Business
      Day immediately preceding such 15th day) of the month of the Remittance
      Date.

     

    Due
      Date:   Each day on which payments of principal and interest
      are required to be paid in accordance with the terms of the related Mortgage
      Note, exclusive of any days of grace.

     

    Due
      Period:   With respect to each Remittance Date, the period
      commencing on the second day of the month preceding the month of such Remittance
      Date and ending on the first day of the month of the Remittance
      Date.

     

    Escrow
      Account:   The separate trust account or accounts created and
      maintained pursuant to Section 4.06 which shall be entitled "PRIME 2007-3 Escrow
      Account, in trust for SAMI II, Owner of Whole Loan Mortgages and various
      Mortgagors" and shall be established at a Qualified Depository, each of which
      accounts shall in no event contain funds in excess of the FDIC insurance
      limits.

     

    Escrow
      Payments:   With respect to any Mortgage Loan, the amounts
      constituting ground rents, taxes, assessments, water rates, sewer rents,
      municipal charges, mortgage insurance premiums, fire and hazard insurance
      premiums, condominium charges, and any other payments required to be escrowed
      by
      the Mortgagor with the mortgagee pursuant to the Mortgage or any other
      document.

     

    Event
      of Default:   Any one of the conditions or circumstances
      enumerated in Section 9.01.

     

    Exchange
      Act:  The Securities Exchange Act of 1934, as
      amended.

     

    Fannie
      Mae:  Fannie Mae, or any successor thereto.

     

    Fannie
      Mae Guide:   The Fannie Mae Selling Guide and the Fannie Mae
      Servicing Guide and all amendments or additions thereto.

     

    Fidelity
      Bond:  A fidelity bond to be maintained by the Servicer pursuant
      to Section 4.12.

     

    FIRREA:   The
      Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended
      from time to time.

     

    Freddie
      Mac:  Freddie Mac, or any successor thereto.

     

    Freddie
      Mac Guide:   The Freddie Mac Selling Guide and the Freddie
      Mac Servicing Guide and all amendments or additions thereto.

     

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

     

    GAAP:  Generally
      accepted accounting procedures, consistently applied.

     

    HUD:   The
      United States Department of Housing and Urban Development or any
      successor.

     

    Index:  With
      respect to each ARM Loan, on the related Adjustment Date, the index used to
      determine the Mortgage Interest Rate on each such ARM Loan.

     

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

     

    Lifetime
      Rate Cap:   With respect to each ARM Loan, the maximum
      Mortgage Interest Rate over the term of such Mortgage Loan, as specified in
      the
      related Mortgage Note.

     

    Liquidation
      Proceeds:   Amounts, other than Insurance Proceeds and
      Condemnation Proceeds, received in connection with the liquidation of a
      defaulted Mortgage Loan, whether through the sale or assignment of such Mortgage
      Loan, trustee's sale, foreclosure sale or otherwise, and any other amounts
      received with respect to an REO Property pursuant to Section 4.13.

     

    Margin:  With
      respect to each ARM Loan, the fixed percentage amount set forth in each related
      Mortgage Note which is added to the Index in order to determine the related
      Mortgage Interest Rate.

     

    Master
      Servicer:  EMC Mortgage Corporation, its successors in interest
      and assigns, or any successor thereto designated by the Owner.

     

    Monthly
      Advance:   The aggregate of the advances made by the Servicer
      on any Remittance Date pursuant to Section 5.03.

     

    Monthly
      Payment:   With respect to each Mortgage Loan, the scheduled
      monthly payment of principal and interest thereon which is payable by the
      related Mortgagor under the related Mortgage Note.

     

    Mortgage:  The
      mortgage, deed of trust or other instrument securing a Mortgage Note which
      creates a first lien on an unsubordinated estate in fee simple in real property
      securing the Mortgage Note.

     

    Mortgage
      Interest Rate:   The annual rate at which interest accrues on
      any Mortgage Loan in accordance with the provisions of the related Mortgage
      Note, and in the case of an ARM Loan, as adjusted from time to time on each
      Adjustment Date for such Mortgage Loan to equal the Index for such Mortgage
      Loan
      plus the Margin for such Mortgage Loan, and subject to the limitations on such
      interest rate imposed by the Periodic Rate Cap and the Lifetime Rate
      Cap.

     

    Mortgage
      Loan:   An individual Mortgage Loan described herein and as
      further identified on the Mortgage Loan Schedule, which Mortgage Loan includes
      without limitation the Mortgage Loan Documents, the Monthly Payments, Principal
      Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
      REO Disposition Proceeds, and all other rights, benefits, proceeds and
      obligations arising from or in connection with such Mortgage Loan.

     

    Mortgage
      Loan Documents:  The original mortgage loan legal documents held
      by the Custodian.

     

    Mortgage
      Loan Remittance Rate:   With respect to each Mortgage Loan,
      the annual rate of interest remitted to the Owner, which shall be equal to
      the
      related Mortgage Interest Rate minus the Servicing Fee Rate.

     

    Mortgage
      Loan Schedule:  The schedule of Mortgage Loans attached hereto as
Exhibit A, such schedule being acceptable to the Owner and the
      Servicer.

     

    Mortgage
      Note:  The note or other evidence of the indebtedness of a
      Mortgagor secured by a Mortgage.

     

    Mortgaged
      Property:  The underlying real property securing repayment of a
      Mortgage Note.

     

    Mortgagor:  The
      obligor on a Mortgage Note.

     

    Net
      Liquidation Proceeds:  As to any Mortgage Loan, Liquidation
      Proceeds net of unreimbursed Servicing Advances, Servicing Fees and Monthly
      Advances and expenses incurred by the Servicer in connection with the
      liquidation of the Mortgage Loan and the related Mortgaged
      Property.

     

    Nonrecoverable
      Advance:  Any advance previously made by the Servicer pursuant to
      Section 5.03 or any Servicing Advance proposed to be made by the Servicer in
      respect of a Mortgage Loan or REO Property which, in the good faith judgment
      of
      the Servicer, may not be ultimately recoverable by the Servicer from Liquidation
      Proceeds or Insurance Proceeds on such Mortgage Loan or REO Property as provided
      herein.  The determination by the Servicer that it has made a
      Nonrecoverable Advance, or that a proposed advance may constitute a
      Nonrecoverable Advance, shall be evidenced by an Officer's Certificate of the
      Servicer delivered to the Owner and detailing the reasons for such
      determination.

     

    Officer's
      Certificate:  A certificate signed by the Chairman of the Board,
      the Vice Chairman of the Board, the President, a Senior Vice President or a
      Vice
      President or by the Treasurer or the Secretary or one of the Assistant
      Treasurers or Assistant Secretaries of the Servicer, and delivered to the Owner
      as required by this Agreement.

     

    Opinion
      of Counsel:  A written opinion of counsel, who may be an employee
      of the party on behalf of whom the opinion is being given, reasonably acceptable
      to the Owner.

     

    Owner:  Structured
      Asset Mortgage Investments II Inc., its successors in interest and assigns
      (including the Trustee in connection with a Pass-Through Transfer).

     

    Partial
      Principal Prepayment:  A Principal Prepayment by a Mortgagor of a
      partial principal balance of a Mortgage Loan.

     

    Pass-Through
      Transfer: Any transaction involving either (1) a sale or other transfer of
      some or all of the Mortgage Loans directly or indirectly to an issuing entity
      in
      connection with an issuance of publicly offered or privately placed, rated
      or
      unrated mortgage-backed securities or (2) an issuance of publicly offered or
      privately placed, rated or unrated securities, the payments on which are
      determined primarily by reference to one or more portfolios of residential
      mortgage loans consisting, in whole or in part, of some or all of the Mortgage
      Loans.

     

    Periodic
      Rate Cap:   With respect to each ARM Loan, the maximum
      increase or decrease in the Mortgage Interest Rate on any Adjustment
      Date.

     

    Permitted
      Investments:  Any one or more of the following obligations or
      securities:

     

    
      	
               

            	
              (i)

            	
              direct
                obligations of, and obligations the timely payment of which are fully
                guaranteed by the United States of America or any agency or
                instrumentality of the United States of America the obligations of
                which
                are backed by the full faith and credit of the United States of
                America;

            

    

    

    
      	
               

            	
              (ii)

            	
              demand
                or time deposits, federal funds or bankers' acceptances issued by
                any
                depository institu­tion or trust company incorporated under the laws
                of the United States of America or any state thereof (including any
                Trustee or the Master Servicer) and subject to supervision and examination
                by federal and/or state banking authorities, provided that the commercial
                paper and/or the short-term deposit rating and/or the long-term unsecured
                debt obligations or deposits of such depository institution or trust
                company at the time of such investment or contractual commitment
                providing
                for such investment are rated in one of the two highest rating categories
                by each Rating Agency;

            

    

    

    
      	
               

            	
              (iii)

            	
              repurchase
                obligations with respect to (a) any security described in clause
                (i) above
                or (b) any other security issued or guaranteed by an agency or
                instrumen­tality of the United States of America, the obligations of
                which are backed by the full faith and credit of the United States
                of
                America, in either case entered into with a depository institution
                or
                trust company (acting as principal) described in clause (ii)(a)
                above;

            

    

    

    
      	
               

            	
              (iv)

            	
              securities
                bearing interest or sold at a discount issued by any corporation
                (including any Trustee or the Master Servicer) incorporated under
                the laws
                of the United States of America or any state thereof that are rated
                in one
                of the two highest rating categories by each Rating Agency at the
                time of
                such in­vestment or contractual commitment providing for such
                investment; provided, however, that securities issued by any
                particular corporation will not be Permitted Investments to the extent
                that investments therein will cause the then outstanding principal
                amount
                of secur­ities issued by such corporation and held as Permitted
                Investments to exceed 10% of the aggregate outstand­ing principal
                balances and amounts of all the Permitted
                Investments;

            

    

    

    
      	
               

            	
              (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 one year after the date of issuance there­of) which are
                rated in one of the two highest rating categories by each Rating
                Agency at
                the time of such investment;

            

    

    

    
      	
               

            	
              (vi)

            	
              any
                other demand, money market or time deposit, obligation, security
                or
                investment as may be acceptable to each Rating Agency;
                and

            

    

    

    
      	
               

            	
              (vii)

            	
              any
                money market funds the collateral of which consists of obligations
                fully
                guaranteed by the United States of America or any agency or
                instru­ment­al­ity of the United States of America the
                obligations of which are backed by the full faith and credit of the
                United
                States of America (which may include repurchase obligations secured
                by
                collateral described in clause (i)) and other securities (including
                money
                market or common trust funds for which any Trustee or the Master
                Servicer
                or any affiliate thereof acts as a manager or an advisor) and which
                money
                market funds are rated in one of the two highest rating categories
                by each
                Rating Agency;

            

    

    

    provided,
      however, that no instrument or security shall be a Permitted Investment
      if such instrument or security evidences a right to receive only interest
      payments with respect to the ob­li­ga­tions underlying such
      instrument or if such security provides for payment of both principal and
      interest with a yield to matur­ity in excess of 120% of the yield to
      maturity at par.

     

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

     

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

     

    Prepayment
      Interest Excess: With respect to any Remittance Date, for each Mortgage Loan
      that was the subject of a Principal Prepayment in full or in part during the
      portion of the related Prepayment Period occurring between the first day of
      the
      calendar month in which such Remittance Date occurs and the Determination Date
      of the calendar month in which such Remittance Date occurs, an amount equal
      to
      interest (to the extent received) at the applicable Mortgage Loan Remittance
      Rate on the amount of such Principal Prepayment for the number of days
      commencing on the first day of the calendar month in which such Remittance
      Date
      occurs and ending on the last date through which interest is collected from
      the
      related Mortgagor.

     

    Prepayment
      Interest Shortfall: With respect to any Remittance Date, for each such
      Mortgage Loan that was the subject of a Principal Prepayment during the portion
      of the related Prepayment Period occurring between the first day of the related
      Prepayment Period and the last day of the calendar month preceding the month
      in
      which such Remittance Date occurs, an amount equal to interest (to be paid
      by
      the Servicer out of its own funds without reimbursement therefor) at the
      applicable Mortgage Loan Remittance Rate on the amount of such Principal
      Prepayment for the number of days commencing on the date on which the prepayment
      is applied and ending on the last day of the calendar month preceding such
      Remittance Date.

     

    Prepayment
      Period: As to any Remittance Date, (a) in the case of Full Principal
      Prepayments, the period commencing on the 16th day of
      the month
      prior to the month in which the related Remittance Date occurs and ending on
      the
      15th day of
      the
      month in which such Remittance Date occurs, and (b) in the case of Partial
      Principal Prepayments or other recoveries, the preceding calendar
      month.

     

    Primary
      Mortgage Insurance Policy:   Each primary policy of mortgage
      insurance, or any replacement policy therefor obtained by the Servicer pursuant
      to Section 4.08.

     

    Prime
      Rate: The prime rate of U.S. money center banks as published from time to
      time in The Wall Street Journal.

     

    Principal
      Prepayment:  Any payment or other recovery of principal on a
      Mortgage Loan full or partial which is received in advance of its scheduled
      Due
      Date, including any Prepayment Charge and which 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.  Partial
      Principal Prepayments shall be applied in accordance with the terms of the
      related Mortgage Note.

     

    Qualified
      Appraiser:   An appraiser, duly appointed by the Servicer,
      who had no interest, direct or indirect in the Mortgaged Property or in any
      loan
      made on the security thereof, and whose compensation is not affected by the
      approval or disapproval of the Mortgage Loan, which appraiser and the appraisal
      made by such appraiser both satisfy the requirements of Title XI of FIRREA
      and
      the regulations promulgated thereunder, all as in effect on the date the
      Mortgage Loan was originated.

     

    Qualified
      Depository:   The Custodian or another depository, the
      accounts of which are (i)  an account or accounts maintained with a
      federal or state chartered depository institution or trust company, the
      long-term unsecured debt obligations and short-term unsecured debt obligations
      of which (or, in the case of a depository institution or trust company that
      is
      the principal subsidiary of a holding company, the debt obligations of such
      holding company, so long as Moody’s is not a Rating Agency) are rated by each
      Rating Agency in one of its two highest long-term and its highest short-term
      rating categories, respectively, at the time any amounts are held on deposit
      therein; provided, that following a downgrade, withdrawal, or suspension of
      such
      institution's rating above, each account shall promptly (and in any case within
      not more than 30 calendar days) be moved to one or more segregated trust
      accounts in the trust department of such institution, or to an account at
      another institution that complies with the above requirements, or (ii) a trust
      account or accounts maintained with the corporate trust department of a federal
      or state chartered depository institution or trust company having capital and
      surplus of not less than $50,000,000, acting in its fiduciary capacity or (iii)
      any other account acceptable to the Rating Agencies, as evidenced in writing.
      Each such account may bear interest unless otherwise specified
      herein.  This Agreement may be amended to reduce the rating
      requirements in clause (i) above pursuant to Section 11.02, provided that,
      the
      Person requesting such amendment obtains a letter from each Rating Agency
      stating that such amendment would not result in the downgrading or withdrawal
      of
      the respective ratings then assigned to the related securities.

     

    Qualified
      Insurer:   An insurance company duly qualified as such under
      the laws of the states in which the Mortgaged Properties are located, duly
      authorized and licensed in such states to transact the applicable insurance
      business and to write the insurance provided, approved as an insurer by Fannie
      Mae and Freddie Mac.

     

    Rating
      Agency:  Standard & Poor's, a division of The McGraw-Hill
      Companies, Inc., and Fitch Ratings.

     

    Reconstitution
      Agreement:  Any agreement involving any Pass-Through Transfer or
      Whole Loan Transfer.

     

    Regulation
      AB:  Subpart 229.1100 – Asset Backed Securities (Regulation AB),
      17 C.F.R. §§229.1100-229.1123, as 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.

     

    Relief
      Act: The Servicemembers
      Civil Relief Act,
      or similar state or local law.

     

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

     

    REMIC
      Provisions:  The provisions of the Federal income tax law relating
      to a REMIC, which appear at Section 860A through 860G of the Code, and related
      provisions, and regulations, rulings or pronouncements promulgated thereunder,
      as the foregoing may be in effect from time to time.

     

    Remittance
      Date:  The Remittance Date shall be the 18th day of any month, or
      if such 18th day is not a Business Day, the first Business Day immediately
      preceding such 18th day.

     

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

     

    REO
      Disposition Proceeds:   Amounts received by the Servicer in
      connection with a related REO Disposition.

     

    REO
      Property:   A Mortgaged Property acquired by the Servicer on
      behalf of the Owner as described in Section 4.13.

     

    SAMI
      II: Structured Asset Mortgage Investments II Inc.

     

    Sarbanes
      Certification: A certification required pursuant to The Sarbanes-Oxley Act
      of 2002 and the rules and regulations of the Commission promulgated thereunder
      (including any interpretations or amendments thereof by the Commission’s
      staff).

     

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

     

    Servicer:  EMC
      Mortgage Corporation, or any of its successors in interest or any successor
      under this Agreement appointed as herein provided.

     

    Servicing
      Advances:   All customary, reasonable and necessary "out of
      pocket" costs and expenses (including reasonable attorneys' fees and
      disbursements) incurred in the performance by the Servicer of its servicing
      obligations relating to each Mortgage Loan, including, but not limited to,
      the
      cost of (a) the preservation, restoration and protection of the Mortgaged
      Property, (b) any enforcement, administrative or judicial proceedings, or any
      legal work or advice specifically related to servicing the Mortgage Loans,
      including but not limited to, foreclosures, bankruptcies, condemnations, drug
      seizures, elections, foreclosures by subordinate or superior lienholders, and
      other legal actions incidental to the servicing of the Mortgage Loans (provided
      that such expenses are reasonable and that the Servicer specifies the Mortgage
      Loan(s) to which such expenses relate), (c) the management and liquidation
      of
      the Mortgaged Property if the Mortgaged Property is acquired in full or partial
      satisfaction of the Mortgage, (d) taxes, assessments, water rates, sewer rates
      and other charges which are or may become a lien upon the Mortgaged Property,
      and Primary Mortgage Insurance Policy premiums and fire and hazard insurance
      coverage and (e) compliance with the obligations under Section
      4.08.

     

    Servicing
      Criteria:  As of any date of determination, the “servicing
      criteria” set forth in Item 1122(d) of Regulation AB, or any amendments thereto,
      a summary of the requirements of which as of the date hereof is attached hereto
      as Exhibit H for convenience of reference only.  In the event of a
      conflict or inconsistency between the terms of Exhibit H and the text of Item
      1122(d) of Regulation AB, the text of Item 1122(d) of Regulation AB shall
      control (or those Servicing Criteria otherwise mutually agreed to by the Owner,
      the Servicer and any Person that will be responsible for signing any Sarbanes
      Certification with respect to a Pass-Through Transfer in response to evolving
      interpretations of Regulation AB and incorporated into a revised Exhibit
      H).

     

    Servicing
      Fee:  With respect to each Mortgage Loan, the amount of the annual
      servicing fee the Owner shall pay to the Servicer, which shall, for a period
      of
      one full month, be equal to one­-twelfth of the product of (a) the
      applicable Servicing Fee Rate and (b) the outstanding principal balance of
      the
      Mortgage Loan.  Such fee shall be payable monthly, computed on the
      basis of the same principal amount and period respecting which any related
      interest payment on a Mortgage Loan is computed.  The obligation of
      the Owner to pay the Servicing Fee is limited to, and the Servicing Fee is
      payable from the interest portion of such Monthly Payment collected by the
      Servicer or as otherwise provided under Section 4.05.

     

    Servicing
      Fee Rate:  The Servicing Fee Rate shall be a rate per annum equal
      to 0.25%.

     

    Servicing
      File:  The documents, records and other items pertaining to a
      particular Mortgage Loan and any additional documents relating to such Mortgage
      Loan as are in, or as may from time to time come into, the Servicer's
      possession.

     

    Servicing
      Modification: With respect to
      any Mortgage Loan that is in default or with respect to which default is
      imminent or reasonably foreseeable or as otherwise set forth in Section 4.01,
      any modification which is effected by the Servicer in accordance with the terms
      of this Agreement that results in any change to the payment terms of the
      Mortgage Loan.

    

    Servicing
      Officer:   Any officer of the Servicer involved in, or
      responsible for, the administration and servicing of the Mortgage Loans whose
      name appears on a list of servicing officers furnished by the Servicer to the
      Owner upon request, as such list may from time to time be amended.

     

    Stated
      Principal Balance:  As to each Mortgage Loan as of any date of
      determination, (i) the sum of (a) the principal balance of such Mortgage Loan
      after giving effect to payments of principal due and received or for which
      a
      Monthly Advance has been made and (b) the amount by which the Stated Principal
      Balance of the Mortgage Loan has been increased pursuant to a Servicing
      Modification, minus (ii) all amounts previously distributed to the Owner with
      respect to the Mortgage Loan representing Principal Prepayments.

     

    Subcontractor:
      Any vendor, subcontractor or other Person that is not responsible for the
      overall servicing (as “servicing” is commonly understood by participants in the
      mortgage-backed securities market) of 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 the Servicer or a
      Subservicer.

     

    Subservicer:
      Any Person that services Mortgage Loans on behalf of the Servicer or any
      Subservicer and is responsible for the performance (whether directly or through
      Subservicers or Subcontractors) of a substantial portion of the material
      servicing functions required to be performed by the Servicer under this
      Agreement or any Reconstitution Agreement that are identified in Item 1122(d)
      of
      Regulation AB.

     

    Trustee:  The
      Person appointed as trustee in connection with any Pass-Through
      Transfer.

     

    Whole
      Loan Transfer:  The sale or transfer of some or all of the
      ownership interest in the Mortgage Loans by the Owner to one or more third
      parties in whole loan or participation format, which third party may be Fannie
      Mae or Freddie Mac.

     

    ARTICLE
      II

    SERVICING
      OF MORTGAGE LOANS; POSSESSION OF SERVICING FILES; BOOKS AND RECORDS; DELIVERY
      OF
      MORTGAGE LOAN DOCUMENTS

     

    Section
      2.01.  Servicing of Mortgage Loans.

     

    The
      Servicer does hereby agree to service the Mortgage Loans in accordance with
      the
      terms of this Agreement.  The rights of the Owner to receive payments
      with respect to the Mortgage Loans shall be as set forth in this
      Agreement.

     

    Section
      2.02.  Maintenance of Servicing Files.

     

    The
      Servicer shall maintain a Servicing File consisting of all documents necessary
      to service the Mortgage Loans.  The possession of each Servicing File
      by the Servicer is for the sole purpose of servicing the Mortgage Loan, and
      such
      retention and possession by the Servicer is in a custodial capacity
      only.  The Servicer acknowledges that the ownership of each Mortgage
      Loan, including the Note, the Mortgage, all other Mortgage Loan Documents and
      all rights, benefits, proceeds and obligations arising therefrom or in
      connection therewith, has been vested in the Owner.  All rights
      arising out of the Mortgage Loans including, but not limited to, all funds
      received on or in connection with the Mortgage Loans and all records or
      documents with respect to the Mortgage Loans prepared by or which come into
      the
      possession of the Servicer shall be received and held by the Servicer in trust
      for the exclusive benefit of the Owner as the owner of the related Mortgage
      Loans.  Any portion of the related Servicing Files retained by the
      Servicer shall be appropriately identified in the Servicer's computer system
      to
      clearly reflect the ownership of the related Mortgage Loans by the
      Owner.  The Servicer shall release its custody of the contents of the
      related Servicing Files only in accordance with written instructions of the
      Owner, except when such release is required as incidental to the Servicer's
      servicing of the Mortgage Loans, such written instructions shall not be
      required.

     

    Section
      2.03.  Books and Records.

     

    The
      Servicer shall be responsible for maintaining, and shall maintain, a complete
      set of books and records for the Mortgage Loans which shall be appropriately
      identified in the Servicer's computer system to clearly reflect the ownership
      of
      the Mortgage Loan by the Owner.  In particular, the Servicer shall
      maintain in its possession, available for inspection by the Owner, or its
      designee and shall deliver to the Owner upon demand, evidence of compliance
      with
      all federal, state and local laws, rules and regulations, and requirements
      of
      Fannie Mae or Freddie Mac, as applicable, including but not limited to
      documentation as to the method used in determining the applicability of the
      provisions of the Flood Disaster Protection Act of 1973, as amended, to the
      Mortgaged Property, documentation evidencing insurance coverage and eligibility
      of any condominium project for approval by Fannie Mae and periodic inspection
      reports as required by Section 4.13.  To the extent that original
      documents are not required for purposes of realization of Liquidation Proceeds
      or Insurance Proceeds, documents maintained by the Servicer may be in the form
      of microfilm or microfiche or such other reliable means of recreating original
      documents, including but not limited to, optical imagery techniques so long
      as
      the Servicer complies with the requirements of the Fannie Mae
      Guide.

     

    The
      Servicer shall maintain with respect to each Mortgage Loan and shall make
      available for inspection by any Owner or its designee the related Servicing
      File
      (or copies thereof) during the time the Owner retains ownership of a Mortgage
      Loan and thereafter in accordance with applicable laws and
      regulations.

     

    Section
      2.04.  Transfer of Mortgage Loans.

     

    No
      transfer of a Mortgage Loan may be made unless such transfer is in compliance
      with the terms hereof. For the purposes of this Agreement, the Servicer shall
      be
      under no obligation to deal with any person with respect to this Agreement
      or
      any Mortgage Loan unless a notice of the transfer of such Mortgage Loan has
      been
      delivered to the Servicer in accordance with this Section 2.04.  The
      Owner may, subject to the terms of this Agreement, sell and transfer one or
      more
      of the Mortgage Loans in accordance with Sections 10.02 and 11.12,
provided, however, that the transferee will not be deemed to be an Owner
      hereunder binding upon the Servicer unless such transferee shall agree in
      writing to be bound by the terms of this Agreement and an assignment and
      assumption of this Agreement reasonably acceptable to the
      Servicer.  The Owner shall advise the Servicer in writing of the
      transfer.  Upon receipt of notice of the permitted transfer, the
      Servicer shall mark its books and records to reflect the ownership of the
      Mortgage Loans of such assignee, and shall release the previous Owner from
      its
      obligations hereunder with respect to the Mortgage Loans sold or
      transferred.

     

    Section
      2.05.  Delivery of Mortgage Loan Documents.

     

    The
      Servicer shall forward to the Custodian on behalf of the Owner original
      documents evidencing an assumption, modification, consolidation or extension
      of
      any Mortgage Loan entered into in accordance with Section 4.01 or 6.01 within
      4
      week(s) of their execution; provided, however, that the Servicer shall provide
      the Custodian on behalf of the Owner with a certified true copy of any such
      document submitted for recordation within 4 week(s) after its execution, and
      shall provide the original of any document submitted for recordation or a copy
      of  a recorded document if the original is not
      available.  If delivery is not completed within 180 days solely due to
      delays in making such delivery by reason of the fact that such documents shall
      not have been returned by the appropriate recording office, the Servicer shall
      continue to use its best efforts to effect delivery as soon as possible
      thereafter.

     

    From
      time
      to time the Servicer may have a need for Mortgage Loan Documents to be released
      by the Custodian.  If the Servicer shall require any of the Mortgage
      Loan Documents, the Servicer shall notify the Custodian in writing of such
      request in the form of the request for release attached hereto as Exhibit
      D.  The Custodian shall deliver to the Servicer within five (5)
      Business Days, any requested Mortgage Loan Document previously delivered to
      the
      Custodian, provided that such documentation is promptly returned to the
      Custodian when the Servicer no longer requires possession of the document,
      and
      provided that during the time that any such documentation is held by the
      Servicer, such possession is in trust for the benefit of the Owner.

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES OF THE SERVICER

     

    The
      Servicer represents, warrants and covenants to the Owner that as of the date
      hereof or as of such date specifically provided herein:

     

    (a)  The
      Servicer is a validly existing corporation in good standing under the laws
      of
      the State of its organization and is qualified to transact business in, is
      in
      good standing under the laws of, and possesses all licenses necessary for the
      conduct of its business in, each state in which any Mortgaged Property is
      located or is otherwise exempt or not required under applicable law to effect
      such qualification or license and no demand for such qualification or license
      has been made upon the Servicer by any such state, and in any event the Servicer
      is in compliance with the laws of each such State to the extent necessary to
      ensure the enforceability of each Mortgage Loan and the servicing of the
      Mortgage Loans in accordance with the terms of this Agreement;

     

    (b)  The
      Servicer has full power and authority to execute, deliver and perform, and
      to
      enter into and consummate all transactions contemplated by this Agreement and
      to
      conduct its business as presently conducted, has duly authorized the execution,
      delivery and performance of this Agreement, has duly executed and delivered
      this
      Agreement, and this Agreement constitutes a legal, valid and binding obligation
      of the Servicer, enforceable against it in accordance with its terms subject
      to
      bankruptcy laws and other similar laws of general application affecting rights
      of creditors and subject to the application of the rules of equity, including
      those respecting the availability of specific performance;

     

    (c)  None
      of the execution and delivery of this Agreement, the consummation of the
      transactions contemplated thereby and hereby, or the fulfillment of or
      compliance with the terms and conditions of this Agreement will conflict with
      any of the terms, conditions or provisions of the Servicer's articles of
      incorporation or by-laws or materially conflict with or result in a breach
      of
      any of the terms, conditions or provisions of any legal restriction or any
      agreement or instrument to which the Servicer is now a party or by which it
      is
      bound, or constitute a default or result in an acceleration under any of the
      foregoing, or result in the material violation of any law, rule, regulation,
      order, judgment or decree to which the Servicer or its property is
      subject;

     

    (d)  There
      is no litigation pending or, to the Servicer's knowledge, threatened with
      respect to the Servicer which is reasonably likely to have a material adverse
      effect on the execution, delivery or enforceability of this Agreement, or which
      is reasonably likely to have a material adverse effect on the financial
      condition of the Servicer;

     

    (e)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Servicer
      of
      or compliance by the Servicer with this Agreement or the consummation of the
      transactions contemplated by this Agreement except for consents, approvals,
      authorizations and orders which have been obtained;

     

    (f)  The
      Servicer is an approved seller/servicer of residential mortgage loans for Fannie
      Mae and Freddie Mac.  The Servicer is in good standing to service
      mortgage loans for Fannie Mae and Freddie Mac and no event has occurred which
      would make the Servicer unable to comply with eligibility requirements or which
      would require notification to either Fannie Mae or Freddie Mac;

     

    (g)  As
      of the date of each Pass-Through Transfer, and except as has been otherwise
      disclosed to the Owner, the Master Servicer and any Depositor, or disclosed
      in
      any public filing: (1) no default or servicing related performance trigger
      has
      occurred as to any other Pass-Through Transfer due to any act or failure to
      act
      of the Servicer; (2) no material noncompliance with applicable servicing
      criteria as to any other Pass-Through Transfer has occurred, been disclosed
      or
      reported by the Servicer; (3) the Servicer has not been terminated as servicer
      in a residential mortgage loan Pass-Through Transfer, either due to a servicing
      default or to application of a servicing performance test or trigger; (4) no
      material changes to the Servicer’s servicing policies and procedures for similar
      loans have occurred in the preceding three years; (5) there are no aspects
      of
      the Servicer’s financial condition that could have a material adverse impact on
      the performance by the Servicer of its obligations hereunder; (6) there are
      no
      legal proceedings pending, or known to be contemplated by governmental
      authorities, against the Servicer that could be material to investors in the
      securities issued in such Pass-Through Transfer; and (7) there are no
      affiliations, relationships or transactions relating to the Servicer of a type
      that are described under Item 1119 of Regulation AB;

     

    (h)  If
      so requested by the Owner, the Master Servicer or any Depositor on any date,
      the
      Servicer shall, within five Business Days following such request, confirm in
      writing the accuracy of the representations and warranties set forth in clause
      (g) of this Article or, if any such representation and warranty is not accurate
      as of the date of such request, provide reasonably adequate disclosure of the
      pertinent facts, in writing, to the requesting party;

     

    (i)  Notwithstanding
      anything to the contrary in the Agreement, the Servicer shall (or shall cause
      each Subservicer) (i) immediately notify the Owner, the Master Servicer and
      any
      Depositor in writing of (A) any material litigation or governmental proceedings
      pending against the Servicer or any Subservicer, (B) any affiliations or
      relationships that develop following the closing date of a Pass-Through Transfer
      between the Servicer or any Subservicer and any of the parties specified in
      clause (7) of paragraph (g) of this Article (and any other parties identified
      in
      writing by the requesting party) with respect to such Pass-Through Transfer,
      (C)
      any Event of Default under the terms of this Agreement or any Reconstitution
      Agreement, (D) any merger, consolidation  or sale of substantially all
      of the assets of the Servicer, and (E) the Servicer’s entry into an agreement
      with a Subservicer to perform or assist in the performance of any of the
      Servicer’s obligations under this Agreement or any Reconstitution Agreement and
      (ii) provide to the Owner and any Depositor a description of such proceedings,
      affiliations or relationships;

     

    (j)  As
      a condition to the succession to the Servicer or any Subservicer as servicer
      or
      subservicer under this Agreement or any Reconstitution Agreement by any Person
      (i) into which the Servicer or such Subservicer may be merged or consolidated,
      or (ii) which may be appointed as a successor to the Servicer or any
      Subservicer, the Servicer shall provide to the Owner, the Master Servicer and
      any Depositor, at least 15 calendar days prior to the effective date of such
      succession or appointment, (x) written notice to the Owner, the Master Servicer
      and any Depositor of such succession or appointment and (y) in writing and
      in
      form and substance reasonably satisfactory to the Owner, the Master Servicer
      and
      such Depositor, all information reasonably requested by the Owner, the Master
      Servicer or any Depositor in order to comply with its reporting obligation
      under
      Item 6.02 of Form 8-K with respect to any class of asset-backed securities;
      and

     

    (k)           Servicer
      has delivered to the Owner and the
      Master Servicer financial statements of its parent, for its last two complete
      fiscal years. All such financial information fairly presents the pertinent
      results of operations and financial position for the period identified and
      has
      been prepared in accordance with GAAP consistently applied throughout the
      periods involved, except as set forth in the notes thereto.  There has
      been no change in the servicing policies and procedures, business, operations,
      financial condition, properties or assets of the Servicer since the date of
      the
      Servicer’s financial information that would have a material adverse effect on
      its ability to perform its obligations under this Agreement.

     

    ARTICLE
      IV

    ADMINISTRATION
      AND SERVICING OF MORTGAGE LOANS

     

    Section
      4.01.  Servicer to Act as Servicer.

     

    The
      Servicer, as independent contract servicer, shall service and administer the
      Mortgage Loans in accordance with this Agreement and with Accepted Servicing
      Practices (giving due consideration to the Owner's reliance on the Servicer),
      and shall have full power and authority, acting alone, to do or cause to be
      done
      any and all things in connection with such servicing and administration which
      the Servicer may deem necessary or desirable and consistent with the terms
      of
      this Agreement and with Accepted Servicing Practices and shall exercise the
      same
      care that it customarily employs for its own account.  In addition,
      the Servicer shall furnish information regarding the borrower credit files
      related to such Mortgage Loan to credit reporting agencies in compliance with
      the provisions of the Fair Credit Reporting Act and the applicable implementing
      regulations. Except as set forth in this Agreement, the Servicer shall service
      the Mortgage Loans in accordance with Accepted Servicing Practices in compliance
      with the servicing provisions of the Fannie Mae Guide, which include, but are
      not limited to, provisions regarding the liquidation of Mortgage Loans, the
      collection of Mortgage Loan payments, the payment of taxes, insurance and other
      charges, the maintenance of hazard insurance with a Qualified Insurer, the
      maintenance of fidelity bond and errors and omissions insurance, inspections,
      the restoration of Mortgaged Property, the maintenance of Primary Mortgage
      Insurance Policies, insurance claims, and title insurance, management of REO
      Property, permitted withdrawals with respect to REO Property, liquidation
      reports, and reports of foreclosures and abandonments of Mortgaged Property,
      the
      transfer of Mortgaged Property, the release of Mortgage Loan Documents, annual
      statements, and examination of records and facilities.  In the event
      of any conflict, inconsistency or discrepancy between any of the servicing
      provisions of this Agreement and any of the servicing provisions of the Fannie
      Mae Guide, the provisions of this Agreement shall control and be binding upon
      the Owner and the Servicer.  The Owner may, at its option, deliver
      powers-of-attorney to the Servicer sufficient to allow the Servicer as servicer
      to execute all documentation requiring execution on behalf of Owner with respect
      to the servicing of the Mortgage Loans, including satisfactions, partial
      releases, modifications and foreclosure documentation or, in the alternative,
      shall as promptly as reasonably possible, execute and return such documentation
      to the Servicer.

     

    Consistent
      with and in addition to the terms set forth in this Agreement, if a Mortgage
      Loan is in default or such default is reasonably foreseeable, the Servicer
      may
      waive, modify or vary any term of any Mortgage Loan or consent to the
      postponement of strict compliance with any such term or in any manner grant
      indulgence to any Mortgagor, including without limitation, to (1) capitalize
      any
      amounts owing on the Mortgage Loan by adding such amount to the outstanding
      principal balance of the Mortgage Loan, (2) defer such amounts to a later date
      or the final payment date of such Mortgage Loan, (3) extend the maturity of
      any
      such Mortgage Loan, (4) amend the related Mortgage Loan to reduce the related
      Mortgage Interest Rate with respect to any Mortgage Loan, (5) convert the
      Mortgage Interest Rate on any Mortgage Loan from a fixed rate to an adjustable
      rate or vice versa, (6) with respect to a Mortgage Loan with an initial fixed
      rate period followed by an adjustable rate period, extend the fixed period
      and
      reduce the adjustable rate period, and/or (7) forgive the amount of any
      interest, principal or servicing advances owed by the related Mortgagor;
      provided that, in the Servicer's reasonable and prudent determination, such
      waiver, modification, postponement or indulgence: (A) is not materially adverse
      to the interests of the Owner on a present value basis using reasonable
      assumptions (including taking into account any estimated realized loss (as
      defined in the related pooling and servicing agreement) that might result absent
      such action); and (B) does not amend the related Mortgage Note to extend the
      maturity thereof later than the date of the Latest Possible Maturity Date (as
      such term is defined in the related pooling and servicing agreement); provided,
      further, with respect to any Mortgage Loan that is not in default or if default
      is not reasonably foreseeable, unless the Servicer has provided to the Owner
      a
      certification addressed to the Owner, based on the advice of counsel or
      certified public accountants that have a national reputation with respect to
      taxation of REMICs that a modification of such Mortgage Loan will not result
      in
      the imposition of taxes on or disqualify from REMIC status any of the REMICs
      and
      has obtained the prior written consent of the Owner, the Servicer shall not
      permit any modification with respect to any Mortgage
      Loan.  Notwithstanding the foregoing, for any waiver, modification,
      postponement or indulgence (not including any partial releases, assumptions
      of
      mortgages or modifications of any Mortgage Loan that is done in connection
      with
      compliance with the Relief Act) which the Servicer reasonably anticipates may
      result in a realized loss of 20% or more of the outstanding principal balance
      of
      a Mortgage Loan, the Servicer shall present such proposed waiver, modification,
      postponement or indulgence, together with any supporting documentation, to
      the
      Master Servicer for consideration and approval.  The Servicer shall
      submit all waivers, modifications or variances of the terms of any Mortgage
      Loan
      with respect to partial releases, assumptions of mortgages or for modifications
      done in furtherance of compliance with the Relief Act, together with any
      supporting documentation, to the Master Servicer for consideration and
      approval.

     

    In
      connection with any such Servicing Modification, the Servicer may reimburse
      itself from the Trust for any outstanding Monthly Advances and Servicing
      Advances in the same calendar month as the Servicing Modification to the extent
      that such Monthly Advances or Servicing Advances are reimbursable to the
      Servicer and to the extent of the related principal portion of funds available
      for the related Distribution Date (as defined in the related pooling and
      servicing agreement). To the extent there are not sufficient principal funds
      available on the related Distribution Date to reimburse the Servicer for such
      Monthly Advances and Servicing Advances, the Servicer may reimburse itself
      on a
      first priority basis from related principal funds that are available on future
      Distribution Dates. If any mortgagor’s obligation to repay any outstanding
      amounts due under the terms of the related Mortgage Loan for which a Monthly
      Advance or Servicing Advance has been made by the Servicer is forgiven, any
      such
      Monthly Advance or Servicing Advance will be treated as a realized loss which
      will be incurred on the Distribution Date related to the calendar month during
      which the Servicing Modification occurred.

     

    In
      the
      event of any such waiver, modification, postponement or indulgence which has
      been agreed to in writing by the Owner and which permits the deferral of
      interest or principal payments on any Mortgage Loan, the Servicer shall, on
      the
      Business Day immediately preceding the related Remittance Date in any month
      in
      which any such principal or interest payment has been deferred, deposit in
      the
      Custodial Account from its own funds, in accordance with Section 4.04 and
      Section 5.03, the difference between (a) such month's principal and one month's
      interest at the related Mortgage Loan Remittance Rate on the unpaid principal
      balance of such Mortgage Loan and (b) the amount paid by the
      Mortgagor.  The Servicer shall be entitled to reimbursement for
      Monthly Advances and Servicing Advances pursuant to Section 4.05. Without
      limiting the generality of the foregoing, the Servicer shall continue, and
      is
      hereby authorized and empowered, to prepare, execute and deliver, all
      instruments of satisfaction or cancellation, or of partial or full release,
      discharge and all other comparable instruments, with respect to the Mortgage
      Loans and with respect to the Mortgaged Properties.

     

    The
      Servicer shall perform all of its servicing responsibilities hereunder or may
      cause a subservicer to perform any such servicing responsibilities on its
      behalf, but the use by the Servicer of a subservicer shall not release the
      Servicer from any of its obligations hereunder and the Servicer shall remain
      responsible hereunder for all acts and omissions of each subservicer as fully
      as
      if such acts and omissions were those of the Servicer.  Any such
      subservicer must be a Fannie Mae approved seller/servicer or a Freddie Mac
      seller/servicer in good standing and no event shall have occurred, including
      but
      not limited to, a change in insurance coverage, which would make it unable
      to
      comply with the eligibility requirements for lenders imposed by Fannie Mae
      or
      for seller/servicers by Freddie Mac, or which would require notification to
      Fannie Mae or Freddie Mac.  The Servicer shall pay all fees and
      expenses of each subservicer from its own funds, and a subservicer's fee shall
      not exceed the Servicing Fee.

     

    At
      the
      cost and expense of the Servicer, without any right of reimbursement from the
      Custodial Account, the Servicer shall be entitled to terminate the rights and
      responsibilities of a subservicer and arrange for any servicing responsibilities
      to be performed by a successor subservicer meeting the requirements in the
      preceding paragraph, provided, however, that nothing contained herein shall
      be
      deemed to prevent or prohibit the Servicer, at the Servicer's option, from
      electing to service the related Mortgage Loans itself.  In the event
      that the Servicer's responsibilities and duties under this Agreement are
      terminated pursuant to Section 8.04, 9.01 or 10.01, and if requested to do
      so by
      the Owner, the Servicer shall at its own cost and expense terminate the rights
      and responsibilities of each subservicer effective as of the date of termination
      of the Servicer.  The Servicer shall pay all fees, expenses or
      penalties necessary in order to terminate the rights and responsibilities of
      each subservicer from the Servicer's own funds without reimbursement from the
      Owner.

     

    Notwithstanding
      any of the provisions of this Agreement relating to agreements or arrangements
      between the Servicer and a subservicer or any reference herein to actions taken
      through a subservicer or otherwise, the Servicer shall not be relieved of its
      obligations to the Owner and shall be obligated to the same extent and under
      the
      same terms and conditions as if it alone were servicing and administering the
      Mortgage Loans.  The Servicer shall be entitled to enter into an
      agreement with a subservicer for indemnification of the Servicer by the
      subservicer and nothing contained in this Agreement shall be deemed to limit
      or
      modify such indemnification.

     

    Any
      subservicing agreement and any other transactions or services relating to the
      Mortgage Loans involving a subservicer shall be deemed to be between such
      subservicer and Servicer alone, and the Owner shall have no obligations, duties
      or liabilities with respect to such Subservicer including no obligation, duty
      or
      liability of Owner to pay such subservicer's fees and expenses.  For
      purposes of distributions and advances by the Servicer pursuant to this
      Agreement, the Servicer shall be deemed to have received a payment on a Mortgage
      Loan when a subservicer has received such payment.

     

    Section
      4.02.  Collection of Mortgage Loan Payments.

     

    Continuously
      from the date hereof until the date each Mortgage Loan ceases to be subject
      to
      this Agreement, the Servicer will proceed with diligence to collect all payments
      due under each Mortgage Loan when the same shall become due and payable and
      shall, to the extent such procedures shall be consistent with this Agreement
      and
      the terms and provisions of related Primary Mortgage Insurance Policy, follow
      such collection procedures as it follows with respect to mortgage loans
      comparable to the Mortgage Loans and held for its own
      account.  Further, the Servicer will take reasonable care in
      ascertaining and estimating annual ground rents, taxes, assessments, water
      rates, fire and hazard insurance premiums, mortgage insurance premiums, and
      all
      other charges that, as provided in the Mortgage, will become due and payable
      to
      the end that the installments payable by the Mortgagors will be sufficient
      to
      pay such charges as and when they become due and payable.

     

    The
      Servicer shall not waive any Prepayment Charge unless: (i) the enforceability
      thereof shall have been limited by bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights generally,
      (ii) the enforcement thereof is illegal, or any local, state or federal agency
      has threatened legal action if the prepayment penalty is enforced, (iii) the
      mortgage debt has been accelerated in connection with a foreclosure or other
      involuntary payment or (iv) such waiver is standard and customary in servicing
      similar Mortgage Loans and relates to a default or a reasonably foreseeable
      default and would, in the reasonable judgment of the Servicer, maximize recovery
      of total proceeds taking into account the value of such Prepayment Charge and
      the related Mortgage Loan.

     

    Section
      4.03.  Realization Upon Defaulted Mortgage Loans.

     

    The
      Servicer shall use its reasonable efforts, consistent with the procedures that
      the Servicer would use in servicing loans for its own account and the
      requirements of the Fannie Mae Guide, to foreclose upon or otherwise comparably
      convert the ownership of properties securing such of the Mortgage Loans as
      come
      into and continue in default and as to which no satisfactory arrangements can
      be
      made for collection of delinquent payments pursuant to Section 4.01. In
      determining the delinquency status of any Mortgage Loan, the Servicer will
      apply
      the definition of Delinquent as such term is defined under the related pooling
      and servicing agreement.  The Servicer shall use its reasonable
      efforts to realize upon defaulted Mortgage Loans in such manner as will maximize
      the receipt of principal and interest by the Owner, taking into account, among
      other things, the timing of foreclosure proceedings.  The foregoing is
      subject to the provisions that, in any case in which Mortgaged Property shall
      have suffered damage, the Servicer shall not be required to expend its own
      funds
      toward the restoration of such property unless it shall determine in its
      discretion (i) that such restoration will increase the proceeds of liquidation
      of the related Mortgage Loan to the Owner after reimbursement to itself for
      such
      expenses, and (ii) that such expenses will be recoverable by the Servicer
      through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged
      Property, as contemplated in Section 4.05.  The Servicer shall be
      responsible for all costs and expenses incurred by it in any such proceedings
      or
      functions as Servicing Advances; provided, however, that it shall be entitled
      to
      reimbursement therefor as provided in Section 4.05.  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
      reasonable cause to believe that a Mortgaged Property is contaminated by
      hazardous or toxic substances or wastes, or if the Owner otherwise requests
      an
      environmental inspection or review of such Mortgaged Property, such an
      inspection or review is to be conducted by a qualified
      inspector.  Upon completion of the inspection, the Servicer shall
      promptly provide the Owner with a written report of the environmental
      inspection.  After reviewing the environmental inspection report, the
      Owner shall determine how the Servicer shall proceed with respect to the
      Mortgaged Property.

     

    Section
      4.04.    Establishment of Custodial Accounts; Deposits in
      Custodial Accounts.

     

    The
      Servicer shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan separate and apart from any of its own funds and general
      assets and shall establish and maintain one or more Custodial
      Accounts.  Each Custodial Account shall be established with a
      Qualified Depository.  To the extent such funds are not deposited in a
      Custodial Account, such funds may be invested in Permitted Investments for
      the
      benefit of the Owner (with any income earned thereon for the benefit of the
      Servicer).  Custodial Accounts will be reconciled within 45 calendar
      days after the bank statement cut-off date.  Funds deposited in the
      Custodial Account may be drawn on by the Servicer in accordance with Section
      4.05. The creation of any Custodial Account shall be evidenced by a letter
      agreement in the form shown in Exhibit B hereto.  The original
      of such letter agreement shall be furnished to the Owner upon request. The
      Servicer acknowledges and agrees that the Servicer shall bear any losses
      incurred with respect to Permitted Investments.  The amount of any
      such losses shall be immediately deposited by the Servicer in the Custodial
      Account, out of the Servicer's own funds, with no right to reimbursement
      therefor.

     

    The
      Servicer shall deposit in a mortgage clearing account on a daily basis, and
      in
      the Custodial Account or Accounts no later than 48 hours after receipt and
      identification of funds and retain therein the following payments and
      collections:

     

    (i)           all
      payments on account of principal, including Principal Prepayments (exclusive
      of
      Prepayment Charges) and penalties, on the Mortgage Loans received after the
      Cut-off Date;

     

    (ii)           all
      payments on account of interest on the Mortgage Loans adjusted to the related
      Mortgage Loan Remittance Rate received after the Cut-off Date;

     

    (iii)           all
      Liquidation Proceeds received after the Cut-off Date;

     

    (iv)           any
      net amounts received by the Servicer after the Cut-off Date in connection with
      any REO Property pursuant to Section 4.13;

     

    (v)           all
      Insurance Proceeds received after the Cut-off Date including amounts required
      to
      be deposited pursuant to Sections 4.08 and 4.10, other than proceeds to be
      held
      in the Escrow Account and applied to the restoration or repair of the Mortgaged
      Property or released to the Mortgagor in accordance with the Servicer's normal
      servicing procedures, the loan documents or applicable law;

     

    (vi)           all
      Condemnation Proceeds affecting any Mortgaged Property received after the
      Cut-off Date other than proceeds to be held in the Escrow Account and applied
      to
      the restoration or repair of the Mortgaged Property or released to the Mortgagor
      in accordance with the Servicer's normal servicing procedures, the loan
      documents or applicable law;

     

    (vii)           any
      Monthly Advances as provided in Section 5.03;

     

    (viii)         any
      amounts received after the Cut-off Date and required to be deposited in the
      Custodial Account pursuant to Section 6.02; and

     

    (ix)           with
      respect to each full or partial Principal Prepayment received after the Cut-off
      Date, any Prepayment Interest Shortfalls, to the extent of the Servicer's
      aggregate Servicing Fee received with respect to the related Due
      Period.

     

    The
      foregoing requirements for deposit in the Custodial 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, Prepayment Charges
      and assumption fees, to the extent permitted by Section 6.01, and all Prepayment
      Interest Excess need not be deposited by the Servicer in the Custodial
      Account.

     

    Section
      4.05.  Permitted Withdrawals From the Custodial
      Account.

     

    The
      Servicer may, from time to time, make withdrawals from the Custodial Account
      for
      the following purposes:

     

    (i)           to
      make payments to the Owner in the amounts and in the manner provided for in
      Section 5.01;

     

    (ii)           to
      reimburse itself for Monthly Advances, the Servicer's right to reimburse itself
      pursuant to this subclause (ii) being limited to (1) amounts received on the
      related Mortgage Loan which represent late collections (net of the related
      Servicing Fees) of principal and/or interest respecting which any such advance
      was made and (2) to the extent of
      Amounts Held for Future Distributions; provided, however, any such Amounts
      Held
      For Future Distribution so applied to reimburse the Servicer shall be replaced by
      the
Servicer by deposit in the
Custodial
      Account, no later than the close of
      business on the Remittance Date immediately preceding the Distribution Date
      on
      which such funds are required to be distributed pursuant to this Agreement
      and
      only to the extent there are not funds otherwise available in the Custodial
      Account to make a required distribution on such Distribution
      Date;

     

    (iii)           to
      reimburse itself for unreimbursed Servicing Advances and Monthly Advances,
      the
      Servicer's right to reimburse itself pursuant to this subclause (iii) with
      respect to any Mortgage Loan being limited to (1) Liquidation Proceeds,
      Condemnation Proceeds and Insurance Proceeds received after the Cut-off Date
      related to such Mortgage Loan; provided, however, the Servicer must provide
      documentation to the Master Servicer supporting Servicing Advances related
      to
      Liquidation Proceeds prior to withdrawing such amounts from the Custodial
      Account and (2) to the extent of
      Amounts Held for Future Distributions; provided, however, any such Amounts
      Held
      For Future Distribution so applied to reimburse the Servicer shall be replaced by
      the
Servicer by deposit in the
Custodial
      Account, no later than the close of
      business on the Remittance Date immediately preceding the Distribution Date
      on
      which such funds are required to be distributed pursuant to this Agreement
      and
      only to the extent there are not funds otherwise available in the Custodial
      Account to make a required distribution
      on such Distribution Date;

     

    (iv)           to
      pay to itself as servicing compensation (a) any interest earned on funds in
      the
      Custodial Account (all such interest to be withdrawn monthly not later than
      each
      Remittance Date) and (b) the Servicing Fee from that portion of any payment
      recovery attributable to interest on a particular Mortgage Loan;

     

    (v)           to
      reimburse itself for any Nonrecoverable Advances;

     

    (vi)           to
      transfer funds to another Qualified Depository in accordance with Section 4.09
      hereof;

     

    (vii)           to
      reimburse itself as provided in Section 8.03 hereof;

     

    (viii)         to
      remove funds inadvertently placed in the Custodial Account in error by the
      Servicer;

     

    (ix)
      to
      reimburse itself for any unreimbursed Monthly Advance or Servicing Advance
      made
      with respect to a Mortgage Loan for which a Servicing Modification was made
      and
      any unreimbursed Capitalization Reimbursement Amount, in each case only to
      the
      extent of any principal funds for any loan group related to such Mortgage Loans
      that are on deposit in the Custodial Account; and

    

    (x)           to
      clear and terminate the Custodial Account upon the termination of this
      Agreement.

     

    Section
      4.06.  Establishment of Escrow Accounts; Deposits in Escrow
      Accounts.

     

    The
      Servicer shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan which constitute Escrow Payments separate and apart from
      any
      of its own funds and general assets and shall establish and maintain one or
      more
      Escrow Accounts.  Each Escrow Account shall be established with a
      Qualified Depository.  To the extent such funds are not deposited in
      an Escrow Account, such funds may be invested in Permitted
      Investments.  Funds deposited in an Escrow Account may be drawn on by
      the Servicer in accordance with Section 4.07. The creation of any Escrow Account
      shall be evidenced by a letter agreement in the form shown in Exhibit C.
      The original of such letter agreement shall be furnished to the Owner upon
      request.  The Servicer acknowledges and agrees that the Servicer shall
      bear any losses incurred with respect to Permitted Investments.  The
      amount of any such losses shall be immediately deposited by the Servicer in
      the
      Escrow Account, as appropriate, out of the Servicer's own funds, with no right
      to reimbursement therefor.

     

    The
      Servicer shall deposit in a mortgage clearing account on a daily basis, and
      in
      the Escrow Account or Accounts no later than 48 hours after receipt of funds
      and
      retain therein:

     

    (i)           all
      Escrow Payments collected on account of the Mortgage Loans, for the purpose
      of
      effecting timely payment of any items as are required under the terms of this
      Agreement;

     

    (ii)           all
      Insurance Proceeds which are to be applied to the restoration or repair of
      any
      Mortgaged Property; and

     

    (iii)           all
      Servicing Advances for Mortgagors whose Escrow Payments are insufficient to
      cover escrow disbursements.

     

    The
      Servicer shall make withdrawals from an Escrow Account only to effect such
      payments as are required under this Agreement, and for such other purposes
      as
      shall be as set forth in and in accordance with Section 4.07.  Except
      as provided in Section 4.07, the Servicer shall be entitled to retain any
      interest paid on funds deposited in an Escrow Account by the Qualified
      Depository.

     

    Section
      4.07.  Permitted Withdrawals From Escrow Account.

     

    Withdrawals
      from the Escrow Account may be made by the Servicer only:

     

    (i)           to
      effect timely payments of ground rents, taxes, assessments, water rates, fire
      and hazard insurance premiums, Primary Mortgage Insurance Policy premiums,
      if
      applicable, and comparable items;

     

    (ii)           to
      reimburse Servicer for any Servicing Advance made by Servicer with respect
      to a
      related Mortgage Loan but only from amounts received on the related Mortgage
      Loan which represent late payments or collections of Escrow Payments
      thereunder;

     

    (iii)           to
      refund to the Mortgagor any funds as may be determined to be
      overages;

     

    (iv)           for
      transfer to the Custodial Account in connection with an acquisition of REO
      Property;

     

    (v)           for
      application to restoration or repair of the Mortgaged Property;

     

    (vi)           to
      pay to the Servicer, or to the Mortgagor to the extent required by law, any
      interest paid on the funds deposited in the Escrow Account;

     

    (vii)           to
      pay to the Mortgagors or other parties Insurance Proceeds deposited in
      accordance with Section 4.06;

     

    (viii)          to
      remove funds inadvertently placed in an Escrow Account in error by the Servicer;
      and

     

    (ix)           to
      clear and terminate the Escrow Account on the termination of this
      Agreement.

     

    As
      part
      of its servicing duties, the Servicer shall pay to the Mortgagors interest
      on
      funds in an Escrow Account, to the extent required by law, and to the extent
      that interest earned on funds in the Escrow Account is insufficient, shall
      pay
      such interest from its own funds, without any reimbursement
      therefor.

     

    Section
      4.08.  Payment of Taxes, Insurance and Other Charges, Maintenance
      of Primary Mortgage Insurance Policies, Collections Thereunder.

     

    With
      respect to each Mortgage Loan, the Servicer shall maintain accurate records
      reflecting the status of ground rents, taxes, assessments, water rates and
      other
      charges which are or may become a lien upon the Mortgaged Property and the
      status of Primary Mortgage Insurance Policy premiums and fire and hazard
      insurance coverage and shall obtain, from time to time, all bills for the
      payment of such charges, including renewal premiums and shall effect payment
      thereof prior to the applicable penalty or termination date and at a time
      appropriate for securing maximum discounts allowable, employing for such purpose
      deposits of the Mortgagor in the Escrow Account which shall have been estimated
      and accumulated by the Servicer in amounts sufficient for such purposes, as
      allowed under the terms of the Mortgage or applicable law.  To the
      extent that the Mortgage does not provide for Escrow Payments, the Servicer
      shall determine that any such payments are made by the Mortgagor when
      due.  The Servicer assumes full responsibility for the timely payment
      of all such bills and shall effect timely 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.

     

    The
      Servicer will maintain in full force and effect Primary Mortgage Insurance
      Policies issued by a Qualified Insurer with respect to each Mortgage Loan for
      which such coverage is herein required.  Such coverage will be
      maintained until the ratio of the current outstanding principal balance of
      the
      related Mortgage Loan to the appraised value of the related Mortgaged Property,
      based on the most recent appraisal of the Mortgaged Property performed by a
      Qualified Appraiser, such appraisal to be included in the Servicing File, is
      reduced to an amount for which Fannie Mae no longer requires such insurance
      to
      be maintained.  The Servicer will not cancel or refuse to renew any
      Primary Mortgage Insurance Policy that is required to be kept in force under
      this Agreement unless a replacement Primary Mortgage Insurance Policy for such
      canceled or nonrenewed policy is obtained from and maintained with a Qualified
      Insurer.  The Servicer shall not take any action which would result in
      non­coverage under any applicable Primary Mortgage Insurance Policy of any
      loss which, but for the actions of the Servicer would have been covered
      thereunder.  In connection with any assumption or substitution
      agreement entered into or to be entered into pursuant to Section 6.01, the
      Servicer shall promptly notify the insurer under the related Primary Mortgage
      Insurance Policy, if any, of such assumption or substitution of liability in
      accordance with the terms of such policy and shall take all actions which may
      be
      required by such insurer as a condition to the continuation of coverage under
      the Primary Mortgage Insurance Policy.  If such Primary Mortgage
      Insurance Policy is terminated as a result of such assumption or substitution
      of
      liability, the Servicer shall obtain a replacement Primary Mortgage Insurance
      Policy as provided above.

     

    In
      connection with its activities as servicer, the Servicer agrees to prepare
      and
      present, on behalf of itself and the Owner, claims to the insurer under any
      Primary Mortgage Insurance Policy in a timely fashion in accordance with the
      terms of such Primary Mortgage Insurance Policy and, in this regard, to take
      such action as shall be necessary to permit recovery under any Primary Mortgage
      Insurance Policy respecting a defaulted Mortgage Loan.  Pursuant to
      Section 4.04, any amounts collected by the Servicer under any Primary Mortgage
      Insurance Policy shall be deposited in the Custodial Account, subject to
      withdrawal pursuant to Section 4.05.

     

    Section
      4.09.  Transfer of Accounts.

     

    The
      Servicer may transfer the Custodial Account or the Escrow Account to a different
      Qualified Depository from time to time.  The Servicer shall notify the
      Owner of any such transfer within 15 Business Days of transfer. If any one
      of
      the investment ratings of a Qualified Depository holding funds or Eligible
      Investments in the Custodial Account or Escrow Account is downgraded by the
      issuing rating agency, the Servicer shall, within three (3) Business Days of
      receipt of notice of the downgrading, transfer all such accounts, funds and
      Permitted Investments to a different Qualified Depository in accordance with
      this Agreement.

     

    Section
      4.10.  Maintenance of Hazard Insurance.

     

    The
      Servicer shall cause to be maintained for each Mortgage Loan fire and hazard
      insurance with extended coverage as is customary in the area where the Mortgaged
      Property is located in an amount which is equal to the lesser of (i) the maximum
      insurable value of the improvements securing such Mortgage Loan or (ii) the
      greater of (a) the outstanding principal balance of the Mortgage Loan, and
      (b)
      the percentage such that the proceeds thereof shall be sufficient to prevent
      the
      Mortgagor and/or the Mortgagee from becoming a co-insurer.  If the
      Mortgaged Property is in an area identified in the Federal Register by the
      Federal Emergency Management Agency as being a special flood hazard area that
      has federally-mandated flood insurance requirements, the Servicer will cause
      to
      be maintained a flood insurance policy meeting the requirements of the current
      guidelines of the Federal Insurance Administration with a generally acceptable
      insurance carrier, in an amount representing coverage not less than the least
      of
      (i) the outstanding principal balance of the Mortgage Loan, (ii) the maximum
      insurable value of the improvements securing such Mortgage Loan or (iii) the
      maximum amount of insurance which is available under the Flood Disaster
      Protection Act of 1973, as amended.  The Servicer shall also maintain
      on the REO Property, fire and hazard insurance with extended coverage in an
      amount which is at least equal to the maximum insurable value of the
      improvements which are a part of such property, liability insurance and, to
      the
      extent required and available under the Flood Disaster Protection Act of 1973,
      as amended, flood insurance in an amount as provided above.  Any
      amounts collected by the Servicer under any such policies other than amounts
      to
      be deposited in the Escrow Account and applied to the restoration or repair
      of
      the Mortgaged Property or REO Property, or released to the Mortgagor in
      accordance with the Servicer's normal servicing procedures, shall be deposited
      in the Custodial Account, subject to withdrawal pursuant to Section
      4.05.  It is understood and agreed that no other additional insurance
      need be required by the Servicer or the Mortgagor or maintained on property
      acquired in respect of the Mortgage Loans, other than pursuant to the Fannie
      Mae
      Guide or such applicable state or federal laws and regulations as shall at
      any
      time be in force and as shall require such additional insurance.  All
      such policies shall be endorsed with standard mortgagee clauses with loss
      payable to the Servicer and its successors and/or assigns and shall provide
      for
      at least thirty days prior written notice of any cancellation, reduction in
      the
      amount or material change in coverage to the Servicer.  The Servicer
      shall not interfere with the Mortgagor's freedom of choice in selecting either
      his insurance carrier or agent, provided, however, that the Servicer shall
      not
      accept any such insurance policies from insurance companies unless such
      companies currently reflect a General Policy Rating in Best's Key Rating Guide
      currently acceptable to Fannie Mae and are licensed to do business in the state
      wherein the property subject to the policy is located.

     

    
      	
               

            	
              Section
                4.11

            	
              Maintenance
                of Mortgage Impairment Insurance
                Policy.

            

    

    

    In
      the
      event that the Servicer shall obtain and maintain a mortgage impairment or
      blanket policy issued by an issuer that has a Best rating of A:VI insuring
      against hazard losses on all of Mortgaged Properties securing the Mortgage
      Loans, then, to the extent such policy provides coverage in an amount equal
      to
      the amount required pursuant to Section 4.10 and otherwise complies with all
      other requirements of Section 4.10, the Servicer shall conclusively be deemed
      to
      have satisfied its obligations as set forth in Section 4.10, 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 Section
      4.10,
      and there shall have been one or more losses which would have been covered
      by
      such policy, deposit in the Custodial Account the amount not otherwise payable
      under the blanket policy because of such deductible clause. In connection with
      its activities as Servicer of the Mortgage Loans, the Servicer agrees to prepare
      and present, on behalf of the Owner, claims under any such blanket policy in
      a
      timely fashion in accordance with the terms of such policy. Upon request of
      the
      Owner, the Servicer shall cause to be delivered to the Owner a certified true
      copy of such policy and a statement from the insurer thereunder that such policy
      shall in no event be terminated or materially modified without thirty (30)
      days
      prior written notice to the Owner.

    

    Section
      4.12.  Fidelity Bond, Errors and Omissions
      Insurance.

     

    The
      Servicer shall maintain, at its own expense, a blanket fidelity bond and an
      errors and omissions insurance policy, with broad coverage with responsible
      companies that would meet the requirements of Fannie Mae or Freddie Mac on
      all
      officers, employees or other persons acting in any capacity with regard to
      the
      Mortgage Loans and who handle funds, money, documents and papers relating to
      the
      Mortgage Loans.  The Fidelity Bond and errors and omissions insurance
      shall be in the form of the Mortgage Banker's Blanket Bond and shall protect
      and
      insure the Servicer against losses, including forgery, theft, embezzlement,
      fraud, errors and omissions and negligent acts of such persons.  Such
      Fidelity Bond and errors and omissions insurance shall also protect and insure
      the Servicer against losses in connection with the failure to maintain any
      insurance policies required pursuant to this Agreement and the release or
      satisfaction of a Mortgage Loan without having obtained payment in full of
      the
      indebtedness secured thereby.  No provision of this Section 4.12
      requiring the Fidelity Bond and errors and omissions insurance shall diminish
      or
      relieve the Servicer from its duties and obligations as set forth in this
      Agreement.  The minimum coverage under any such Fidelity Bond and
      insurance policy shall be at least equal to the corresponding amounts required
      by Fannie Mae in the Fannie Mae Guide or by Freddie Mac in the Freddie Mac
      Guide.  The Servicer shall, upon request of Owner, deliver to the
      Owner a certificate from the surety and the insurer as to the existence of
      the
      Fidelity Bond and errors and omissions insurance policy and shall obtain a
      statement from the surety and the insurer that such Fidelity Bond or insurance
      policy shall in no event be terminated or materially modified without thirty
      days prior written notice to the Owner.  The Servicer shall notify the
      Owner within five Business Days of receipt of notice that such Fidelity Bond
      or
      insurance policy will be, or has been, materially modified or
      terminated.  The Owner and its successors or assigns as their
      interests may appear must be named as loss payees on the Fidelity Bond and
      as
      additional insured on the errors and omissions policy.

     

    Section
      4.13.  Title, Management and Disposition of REO
      Property.

     

    In
      the
      event that title to any Mortgaged Property is acquired in foreclosure or by
      deed
      in lieu of foreclosure, the deed or certificate of sale shall be taken in the
      name of the Owner or its designee.  Any such Person or Persons holding
      such title other than the Owner shall acknowledge in writing that such title
      is
      being held as nominee for the benefit of the Owner.

     

    The
      Servicer shall assume the responsibility for marketing each REO Property in
      accordance with Accepted Servicing Practices. Thereafter, the Servicer shall
      continue to provide certain administrative services to the Owner relating to
      such REO Property as set forth in this Section 4.13. The REO Property must
      be
      sold within three years following the end of the calendar year of the date
      of
      acquisition, unless a REMIC election has been made with respect to the
      arrangement under which the Mortgage Loans and REO Property are held and (i)
      the
      Owner shall have been supplied with an Opinion of Counsel (at the Servicer's
      expense) to the effect that the holding by the related trust of such Mortgaged
      Property subsequent to such three-year period (and specifying the period beyond
      such three-year period for which the Mortgaged Property may be held) will not
      result in the imposition of taxes on "prohibited transactions" of the related
      trust as defined in Section 860F of the Code, or cause the related REMIC to
      fail
      to qualify as a REMIC, in which case the related trust may continue to hold
      such
      Mortgaged Property (subject to any conditions contained in such Opinion of
      Counsel), or (ii) the Owner (at the Servicer's expense) or the Servicer shall
      have applied for, prior to the expiration of such three-year period, an
      extension of such three-year period in the manner contemplated by Section
      856(e)(3) of the Code, in which case the three-year period shall be extended
      by
      the applicable period.  If a period longer than three years is
      permitted under the foregoing sentence and is necessary to sell any REO
      Property, the Servicer shall report monthly to the Owner as to progress being
      made in selling such REO Property.

     

    Notwithstanding
      any other provision of this Agreement, if a REMIC election has been made, no
      Mortgaged Property held by a REMIC shall be rented (or allowed to continue
      to be
      rented) or otherwise used for the production of income by or on behalf of the
      related trust or sold or managed in such a manner or pursuant to any terms
      that
      would (i) cause such Mortgaged Property to fail to qualify at any time as
      "foreclosure property" within a meaning of Section 860G(a)(8) of the Code,
      (ii)
      subject the related trust to the imposition of any federal or state income
      taxes
      on "net income from foreclosure property" with respect to such Mortgaged
      Property within the meaning of Section 860G(c) of the Code, or (iii) cause
      the
      sale of such Mortgaged Property to result in the receipt by the related trust
      or
      any income from non-permitted assets as described in Section 860F(a) (2)(B)
      of
      the Code, unless the Servicer has agreed to indemnify and hold harmless the
      related trust with respect to the imposition of any such taxes.

     

    The
      Servicer shall deposit or cause to be deposited, on a daily basis in each
      Custodial 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, including the cost of
      maintaining any hazard insurance pursuant to Section 4.10 hereof.  The
      Servicer shall maintain separate records with respect to each REO Property
      identifying all deposits and withdrawals from the Custodial Account for each
      REO
      Property.

     

    The
      Servicer shall furnish to the Owner on each Remittance Date, an operating
      statement for each REO Property covering the operation of each REO Property
      for
      the previous month.  Such operating statement shall be accompanied by
      such other information as the Owner shall reasonably request.

     

    The
      Servicer shall, either itself or through an agent selected by the Servicer,
      and
      in accordance with the Fannie Mae Guide, manage, conserve, protect and operate
      each 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.
      Each
      REO Disposition shall be carried out by the Servicer at such price and upon
      such
      terms and conditions as the Servicer deems to be in the best interest of the
      Owner.  The REO Disposition Proceeds from the sale of the REO Property
      shall be promptly deposited in the Custodial Account.  As soon as
      practical thereafter, the expenses of such sale shall be paid and the Servicer
      shall be entitled to reimburse itself for any related unreimbursed Servicing
      Advances, unpaid Servicing Fees or Monthly Advances made.  Such
      reimbursement will be subject to Master Servicer approval of claims submitted
      within 90 days of liquidation (such approval will be rendered within 30 days
      of
      the Master Servicer’s receipt of the complete claim of loss notification
      package), and on the Remittance Date immediately following the Principal
      Prepayment Period in which such sale proceeds are received the proceeds of
      such
      sale deposited in the Custodial Account shall be distributed to the
      Purchaser.

     

    The
      Servicer shall cause each REO Property to be inspected promptly upon the
      acquisition of title thereto and shall cause each REO Property to be inspected
      at least monthly thereafter or more frequently as may be required by the
      circumstances. The Servicer shall make or cause the inspector to make a written
      report of each such inspection.  Such reports shall be retained in the
      Servicing File and copies thereof shall be forwarded by the Servicer to the
      Owner.

     

    Section
      4.14.  Notification of Adjustments.

     

    With
      respect to each Mortgage Loan, the Servicer shall adjust the Mortgage Interest
      Rate on the related Interest Rate Adjustment Date in compliance with
      requirements of applicable law and the related Mortgage and Mortgage
      Note.  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 Interest Rate adjustments.  The
      Servicer shall promptly, upon written request therefor, deliver to the Owner
      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 Owner that the Servicer has failed to adjust a Mortgage Interest
      Rate in accordance with the terms of the related Mortgage Note and Mortgage,
      the
      Servicer shall immediately deposit in the Custodial Account from its own funds
      the amount of any interest loss or deferral caused to the Owner
      thereby.

     

    ARTICLE
      V

    PAYMENTS
      TO THE OWNER

     

    Section
      5.01.  Remittances.

     

    On
      each
      Remittance Date, the Servicer shall remit to the Owner (i) all amounts credited
      to the Custodial Account as of the close of business on the last day of the
      calendar month preceding the Determination Date, net of charges against or
      withdrawals from the Custodial Account pursuant to Section 4.05, except (a)
      Full
      Principal Prepayments received on or before the 15th day of the month in which
      a
      Remittance Date occurs shall be remitted to the Owner on the Remittance Date
      of
      such month, and (b) Full Principal Prepayments received after the 15th day
      of
      the month in which a Remittance Date occurs shall be remitted to the Owner
      on
      the next following Remittance Date, plus, to the extent not already deposited
      in
      the Custodial Account, the sum of (ii) all Monthly Advances, if any, which
      the
      Servicer is obligated to distribute pursuant to Section 5.03 and (iii) all
      Prepayment Interest Shortfalls the Servicer is required to make up pursuant
      to
      Section 4.04, minus (iv) any amounts attributable to Monthly Payments collected
      after the Cut-off Date but due on a Due Date or Dates subsequent to the last
      day
      of the related Due Period, which amounts shall be remitted on the related
      Remittance Date next succeeding the Due Period for such amounts.

     

    With
      respect to any remittance received by the Owner after the Business Day on which
      such payment was due, the Servicer shall pay to the Owner interest on any such
      late payment at an annual rate equal to the Prime Rate, adjusted as of the
      date
      of each change, plus two percentage points, but in no event greater than the
      maximum amount permitted by applicable law.  Such interest shall be
      remitted to the Owner by the Servicer on the date such late payment is made
      and
      shall cover the period commencing with the day following such Business Day
      and
      ending with the Business Day on which such payment is made, both
      inclusive.  The payment by the Servicer of any such interest shall not
      be deemed an extension of time for payment or a waiver of any Event of Default
      by the Servicer.

     

    Section
      5.02    Statements to the Owner and the Master
      Servicer.

     

    The
      Servicer shall furnish to the Owner and the Master Servicer an individual
      Mortgage Loan accounting report (a ”Report”), as of the last Business Day of
      each month and the end of the related Prepayment Period, as applicable, in
      the
      Servicer's assigned loan number order to document Mortgage Loan payment activity
      on an individual Mortgage Loan basis.  With respect to each month,
      such Report shall be received by the Owner and the Master Servicer no later
      than
      the fifth Business Day of the month of the related Remittance Date (or, with
      respect to information as to Full Principal Prepayments and prepayment penalties
      no later than one (1) Business Day after the end of each Prepayment Period),
      a
      report in an Excel (or compatible) electronic format, in such format as may
      be
      mutually agreed upon by both the Owner and the Servicer, and which shall provide
      the information required to be contained in the monthly statements to
      certificateholders as specified in the related pooling and servicing agreement,
      to the extent applicable to the Servicer.

     

    In
      addition, the Servicer shall provide to the Master Servicer and the Owner such
      other information known or available to the Servicer that is necessary in order
      to provide the distribution and pool performance information as required under
      Regulation AB, as amended from time to time, as determined by the Owner in
      its
      sole discretion.  The Servicer shall also provide a monthly report, in
      the form of Exhibit E and Exhibit F hereto, or such other form as
      is mutually acceptable to the Servicer, the Owner and the Master Servicer,
      Exhibit K and Exhibit L with respect to defaulted mortgage loans,
Exhibit M with respect to realized losses and gains, Exhibit N
      with respect to modified mortgage loans, Exhibit O with respect to claims
      submitted and Exhibit P with respect to loss severity, with each such
      report.

     

    The
      Servicer shall prepare and file any and all information statements or other
      filings required to be delivered to any governmental taxing authority or to
      Owner or the Master Servicer pursuant to any applicable law with respect to
      the
      Mortgage Loans and the transactions contemplated hereby.  In addition,
      the Servicer shall provide the Owner and the Master Servicer with such
      information concerning the Mortgage Loans as is necessary for the Owner and
      the
      Master Servicer to prepare its federal income tax return as Owner and the Master
      Servicer may reasonably request from time to time.

     

    In
      addition, not more than 60 days after the end of each calendar year, the
      Servicer shall furnish to each Person who was an Owner and the Master Servicer
      at any time during such calendar year an annual statement in accordance with
      the
      requirements of applicable federal income tax law as to the aggregate of
      remittances of principal and interest for the applicable portion of such
      year.

     

    Section
      5.03.  Monthly Advances by the Servicer.

     

    Not
      later
      than the close of business on the Business Day preceding each Remittance Date,
      the Servicer shall deposit in the Custodial Account an amount equal to all
      payments not previously advanced by the Servicer, whether or not deferred
      pursuant to Section 4.01, of Monthly Payments, adjusted to the related Mortgage
      Loan Remittance Rate, which are delinquent at the close of business on the
      related Determination Date; provided, however, that the amount of any such
      deposit may be reduced by the Amounts Held for Future Distribution (as defined
      below) then on deposit in the Custodial Account.  Any portion of the
      Amounts Held for Future Distribution used to pay Monthly Advances shall be
      replaced by the Servicer by deposit into the Custodial Account on any future
      Remittance Date to the extent that the funds that are available in the Custodial
      Account for remittance to the Owner on such Remittance Date are less than the
      amount of payments required to be made to the Owner on such Remittance
      Date.

     

    The
      Servicer's obligation to make such Monthly Advances as to any Mortgage Loan
      will
      continue through the final disposition or liquidation of the Mortgaged Property,
      unless the Servicer deems such advance to be nonrecoverable from Liquidation
      Proceeds, REO Disposition Proceeds or Insurance Proceeds with respect to the
      applicable Mortgage Loan.  In such latter event, the Servicer shall
      deliver to the Owner an Officer's Certificate of the Servicer to the effect
      that
      an officer of the Servicer has reviewed the related Servicing File and has
      obtained a recent appraisal and has made the reasonable determination that
      any
      additional advances are nonrecoverable from Liquidation or Insurance Proceeds
      with respect to the applicable Mortgage Loan.

     

    Section
      5.04.  Liquidation Reports.

     

    Upon
      the
      foreclosure sale of any Mortgaged Property or the acquisition thereof by the
      Owner pursuant to a deed-in­-lieu of foreclosure, the Servicer shall submit
      to the Owner a liquidation report with respect to such Mortgaged Property in
      such form as the Servicer and the Owner shall agree.  The Servicer
      shall also provide reports on the status of REO Property containing such
      information as Owner may reasonably require.

     

    ARTICLE
      VI

    GENERAL
      SERVICING PROCEDURES

     

    Section
      6.01.  Assumption Agreements.

     

    The
      Servicer will, to the extent it has knowledge of any conveyance or prospective
      conveyance by any Mortgagor of a Mortgaged Property (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 any "due-on-sale"
      clause to the extent permitted by law; provided, however, that the Servicer
      shall not exercise any such rights if prohibited by law or the terms of the
      Mortgage Note from doing so or if the exercise of such rights would impair
      or
      threaten to impair any recovery under the related Primary Mortgage Insurance
      Policy, if any.  If the Servicer reasonably believes it is unable
      under applicable law to enforce such "due-on-sale" clause, the Servicer, will
      enter into an assumption agreement with the person to whom the Mortgaged
      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.  Where an
      assumption is allowed pursuant to this Section 6.01, the Servicer, with the
      prior consent of the primary mortgage insurer, if any, is authorized to enter
      into a substitution of liability agreement with the person to whom the Mortgaged
      Property has been conveyed or is proposed to be conveyed pursuant to which
      the
      original mortgagor is released from liability and such Person is substituted
      as
      mortgagor and becomes liable under the related Mortgage Note.  Any
      such substitution of liability agreement shall be in lieu of an assumption
      agreement.

     

    In
      connection with any such assumption or substitution of liability, the Servicer
      shall follow the underwriting practices and procedures of the Fannie Mae
      Guide.  With respect to an assumption or substitution of liability,
      the Mortgage Interest Rate borne by the related Mortgage Note and the amount
      of
      the Monthly Payment may not be changed.  The Servicer shall notify the
      Owner that any such substitution of liability or assumption agreement has been
      completed by forwarding to the Owner the original of any such substitution
      of
      liability or assumption agreement, which document shall be added to the related
      Mortgage Loan Documents and shall, for all purposes, be considered a part of
      such related mortgage file to the same extent as all other documents and
      instruments constituting a part thereof.  All fees collected by the
      Servicer for entering into an assumption or substitution of liability agreement
      shall belong to the Servicer.

     

    Notwithstanding
      the foregoing paragraphs of this section 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 any assumption which the Servicer may
      be
      restricted by law from preventing, for any reason whatsoever.  For
      purposes of this Section 6.01, 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
      6.02.  Satisfaction of Mortgages and Release of Mortgage Loan
      Documents.

     

    Upon
      the
      payment in full of any Mortgage Loan, the Servicer will immediately notify
      the
      Custodian with a certification and request for release by a Servicing Officer,
      which certification shall include a statement to the effect that all amounts
      received in connection with such payment which are required to be deposited
      in
      the Custodial Account pursuant to Section 4.04 have been so deposited, and
      a
      request for delivery to the Servicer of the portion of the Mortgage Loan
      Documents held by the Custodian.  Upon receipt of such certification
      and request, the Owner shall promptly release or cause the Custodian to promptly
      release the related Mortgage Loan Documents to the Servicer and the Servicer
      shall prepare and deliver for execution by the Owner or at the Owner's option
      execute under the authority of a power of attorney delivered to the Servicer
      by
      the Owner any satisfaction or release.  No expense incurred in
      connection with any instrument of satisfaction or deed of reconveyance shall
      be
      chargeable to the Custodial Account.

     

    In
      the
      event the Servicer satisfies or releases a Mortgage without having obtained
      payment in full of the indebtedness secured by the Mortgage or should it
      otherwise prejudice any right the Owner may have under the mortgage instruments,
      the Servicer, upon written demand, shall remit within one Business Day to the
      Owner the then outstanding principal balance of the related Mortgage Loan by
      deposit thereof in the Custodial Account.  The Servicer shall maintain
      the Fidelity Bond insuring the Servicer against any loss it may sustain with
      respect to any Mortgage Loan not satisfied in accordance with the procedures
      set
      forth herein.

     

    From
      time
      to time and as appropriate for the servicing or foreclosure of the Mortgage
      Loans, including for the purpose of collection under any Primary Mortgage
      Insurance Policy, upon request of the Servicer and delivery to the Custodian
      of
      a servicing receipt signed by a Servicing Officer, the Custodian shall release
      the portion of the Mortgage Loan Documents held by the Custodian to the
      Servicer. Such servicing receipt shall obligate the Servicer to promptly return
      the related Mortgage Loan Documents 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 Custodial Account or such documents have 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
      promptly delivered to the Owner or the Custodian a certificate of a Servicing
      Officer certifying as to the name and address of the Person to which such
      documents were 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, the servicing receipt shall
      be
      released by the Owner or the Custodian, as applicable, to the
      Servicer.

     

    Section
      6.03.  Servicing Compensation.

     

    As
      compensation for its services hereunder, the Servicer shall be entitled to
      withdraw from the Custodial Account or to retain from interest payments on
      the
      Mortgage Loans the amounts provided for as the Servicer's Servicing
      Fee.  Additional servicing compensation in the form of assumption
      fees, as provided in Section 6.01, late payment charges and other ancillary
      fees
      shall be retained by the Servicer to the extent not required to be deposited
      in
      the Custodial Account.  The Servicer shall be required to pay all
      expenses incurred by it in connection with its servicing activities hereunder
      and shall not be entitled to reimbursement therefor except as specifically
      provided for.

     

    Section
      6.04.   Annual Statement as to Compliance; Annual
      Certification.

     

    (a)           The
      Servicer will deliver to the Owner and the Master Servicer, not later than
      March
      15th of each calendar year beginning in 2008, an Officer’s Certificate (an
“Annual Statement of Compliance”) stating, as to each signatory thereof, that
      (i) a review of the activities of the Servicer during the preceding calendar
      year and of performance under this Agreement or other applicable servicing
      agreement has been made under such officer’s supervision and (ii) to the best of
      such officer’s knowledge, based on such review, the Servicer has fulfilled all
      of its obligations under this Agreement or other applicable servicing agreement
      in all material respects throughout such year, 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 of cure provisions
      thereof.  Such Annual Statement of Compliance shall contain no
      restrictions or limitations on its use.  Copies of such statement
      shall be provided by the Servicer to the Owner upon request and by the Owner
      to
      any Person identified as a prospective purchaser of the Mortgage
      Loans.  In the event that the Servicer has delegated any servicing
      responsibilities with respect to the Mortgage Loans to a Subservicer, the
      Servicer shall deliver an Annual Statement of Compliance of the Subservicer
      as
      described above as to each Subservicer as and when required with respect to
      the
      Servicer.

     

    (b)           With
      respect to the Mortgage Loans, by March 15th of each calendar year beginning
      in
      2008, an officer of the Servicer shall execute and deliver an Officer’s
      Certificate (an “Annual Certification”) to the Owner, the Master Servicer, the
      Trustee, and any related Depositor for the benefit of each such entity and
      such
      entity’s affiliates and the officers, directors and agents of any such entity
      and such entity’s affiliates, in the form attached hereto as Exhibit
      G.  In the event that the Servicer has delegated any servicing
      responsibilities with respect to the Mortgage Loans to a Subservicer or a
      Subcontractor, to the extent such Subcontractor is “participating in the
      servicing function” pursuant to Item 1122 of Regulation AB, the Servicer shall
      deliver an Annual Certification as to each such Subservicer and Subcontractor,
      as and when required with respect to the Servicer.

     

    In
      the
      event the Servicer or any Subservicer or Subcontractor engaged by it is
      terminated, assigns its rights and obligations under, or resigns pursuant to
      the
      terms of this Agreement, or any other applicable agreement in the case of a
      Subservicer or Subcontractor, as the case may be, such party shall provide
      an
      Annual Statement of Compliance pursuant to this Section 6.04 or to the related
      section of such other applicable agreement, as the case may be, as to the
      performance of its obligations with respect to the period of time it was subject
      to this Agreement or any other applicable agreement, as the case may be,
      notwithstanding any such termination, assignment or resignation.

     

    The
      Servicer shall indemnify and hold harmless the Master Servicer and its 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 6.04 or Section 6.09 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 Master Servicer, then the Servicer agrees that it shall contribute
      to the amount paid or payable by the Master Servicer as a result of the losses,
      claims, damages or liabilities of the Master Servicer in such proportion as
      is
      appropriate to reflect the relative fault of the Master Servicer on the one
      hand
      and the Servicer on the other in connection with a breach of the Servicer’s
      obligations under this Section 6.04 or Section 6.09 or the Servicer’s
      negligence, bad faith or willful misconduct in connection
      therewith.

     

    Upon
      request by the Owner or the Master Servicer, the Servicer will deliver to such
      requesting party a copy of the audited (if such financial statements are
      available, otherwise unaudited) financial statements of the Servicer for the
      most recent fiscal year of the Servicer.

     

    Section
      6.05.   [Reserved]

     

    Section
      6.06.  Owner's Right to Examine Servicer Records.

     

    The
      Owner
      shall have the right to examine and audit, at its expense, upon reasonable
      notice to the Servicer, during business hours or at such other times as might
      be
      reasonable under applicable circumstances, any and all of the books, records,
      documentation or other information of the Servicer, or held by another for
      the
      Servicer or on its behalf or otherwise, which relate to the performance or
      observance by the Servicer of the terms, covenants or conditions of this
      Agreement.

     

    The
      Servicer shall provide to the Owner and any supervisory agents or examiners
      representing a state or federal governmental agency having jurisdiction over
      the
      Owner access to any documentation regarding the Mortgage Loans in the possession
      of the Servicer which may be required by any applicable
      regulations.  Such access shall be afforded without charge, upon
      reasonable request, during normal business hours and at the offices of the
      Servicer, and in accordance with the applicable federal or state government
      regulations.

     

    Section
      6.07.  Compliance with REMIC
      Provisions.

     

    If
      a
      REMIC election has been made with respect to the arrangement under which the
      Mortgage Loans and REO Property are held, the Servicer shall not take any
      action, cause the REMIC to take any action or fail to take (or fail to cause
      to
      be taken) any action that, under the REMIC Provisions, if taken or not taken,
      as
      the case may be could (i) endanger the status of the REMIC as a REMIC or (ii)
      result in the imposition of a tax upon the REMIC (including but not limited
      to
      the tax on "prohibited transactions" as defined in Section 860F(a)(2) of the
      Code and the tax on "contribution" to a REMIC set forth in Section 860G(d)
      of
      the Code unless the Servicer has received an Opinion of Counsel (at the expense
      of the party seeking to take such actions) to the effect that the contemplated
      action will not endanger such REMIC status or result in the imposition of any
      such tax.

     

    Section
      6.08.  Non-solicitation.

     

    The
      Servicer shall not knowingly conduct any solicitation exclusively targeted
      to
      the Mortgagors for the purpose of inducing or encouraging the early prepayment
      or refinancing of the related Mortgage Loans.  It is understood and
      agreed that promotions undertaken by the Servicer or any agent or affiliate
      of
      the Servicer which are directed to the general public at large, including,
      without limitation, mass mailings based on commercially acquired mailing lists,
      newspaper, radio and television advertisements shall not constitute solicitation
      under this section.  Nothing contained herein shall prohibit the
      Servicer from (i) distributing to Mortgagors any general advertising including
      information brochures, coupon books, or other similar documentation which
      indicates services the Servicer offers, including refinances or (ii) providing
      financing of home equity loans to Mortgagors at the Mortgagor's
      request.

     

    Section
      6.09.    Assessment of Compliance with Servicing
      Criteria.

     

    On
      and
      after January 1, 2007, the Servicer shall service and administer, and shall
      cause each subservicer to service or administer, the Mortgage Loans in
      accordance with all applicable requirements of the Servicing
      Criteria.

     

    With
      respect to the Mortgage Loans, the Servicer shall deliver to the Owner or its
      designee, the Master Servicer, the Trustee, and any Depositor on or before
      March
      15th of each calendar year beginning in 2008, a report (an “Assessment of
      Compliance”) regarding the Servicer’s assessment of compliance with the
      Servicing Criteria during the preceding calendar year as required by Rules
      13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB, or as
      otherwise required by the Master Servicer, which as of the date hereof, require
      a report by an authorized officer of the Servicer that contains the
      following:

     

    (a)           A
      statement by such officer of its responsibility for assessing compliance with
      the Servicing Criteria applicable to the Servicer;

     

    (b)           A
      statement by such officer that such officer used the Servicing Criteria to
      assess compliance with the Servicing Criteria applicable to the
      Servicer;

     

    (c)           An
      assessment by such officer of the Servicer’s compliance with the applicable
      Servicing Criteria for the period consisting of the preceding calendar year,
      including disclosure of any material instance of noncompliance with respect
      thereto during such period, which assessment shall be based on the activities
      it
      performs with respect to asset-backed securities transactions taken as a whole
      involving the Servicer, that are backed by the same asset type as the Mortgage
      Loans;

     

    (d)           A
      statement that a registered public accounting firm has issued an attestation
      report on the Servicer’s Assessment of Compliance for the period consisting of
      the preceding calendar year; and

     

    (e)           A
      statement as to which of the Servicing Criteria, if any, are not applicable
      to
      the Servicer, which statement shall be based on the activities it performs
      with
      respect to asset-backed securities transactions taken as a whole involving
      the
      Servicer, that are backed by the same asset type as the Mortgage
      Loans.

     

    Such
      report at a minimum shall address each of the Servicing Criteria specified
      on
Exhibit J hereto.

     

    With
      respect to the Mortgage Loans, on or before March 15th of each calendar year
      beginning in 2008, the Servicer shall furnish to the Owner or its designee,
      the
      Master Servicer, the Trustee and any Depositor a report (an “Attestation
      Report”) by a registered public accounting firm that attests to, and reports on,
      the Assessment of Compliance made by the Servicer, as required by Rules 13a-18
      and 15d-18 of the Exchange Act and Item 1122(b) of Regulation AB, or as
      otherwise required by the Master Servicer, which Attestation Report must be
      made
      in accordance with standards for attestation reports issued or adopted by the
      Public Company Accounting Oversight Board.

     

    The
      Servicer shall cause each Subservicer, and each Subcontractor determined by
      the
      Servicer pursuant to Section 11.15 to be “participating in the servicing
      function” within the meaning of Item 1122 of Regulation AB, to deliver to the
      Owner, the Master Servicer, the Trustee and any Depositor an assessment of
      compliance and accountants’ attestation as and when provided in Section
      6.09.

     

    In
      the event the Servicer or any
      Subservicer or Subcontractor engaged by it is terminated, assigns its rights
      and
      obligations under, or resigns pursuant to, the terms of this Agreement, or
      any
      other applicable agreement in the case of a Subservicer or Subcontractor, as
      the
      case may be, such party shall provide an Assessment of Compliance and cause
      to
      be provided an Attestation Report pursuant to this Section 6.09 or to the
      related section of such other applicable agreement, as the case may be,
      notwithstanding any such termination, assignment or
      resignation.

     

    Section
      6.10.   Intent of the Parties;
      Reasonableness.

     

    The
      Owner
      and the Servicer acknowledge and agree that a purpose of clause (g) of Article
      III, Sections 5.02, 6.04, 6.09 and 10.02 of this Agreement is to facilitate
      compliance by the Owner and any Depositor with the provisions of Regulation
      AB
      and related rules and regulations of the Commission. None of the Owner, the
      Master Servicer or any Depositor shall exercise its right to request delivery of
      information or other performance under these provisions other than in good
      faith, or for purposes other than compliance with the Securities Act, the
      Exchange Act and the rules and regulations of the Commission thereunder. The
      Servicer acknowledges that interpretations of the requirements of Regulation
      AB
      may change over time, whether due to interpretive guidance provided by the
      Commission or its staff, consensus among participants in the asset-backed
      securities markets, advice of counsel, or otherwise, and agrees to comply with
      requests made by the Owner or any Depositor in good faith for delivery of
      information under these provisions on the basis of evolving interpretations
      of
      Regulation AB. In connection with any Pass-Through Transfer, the Servicer shall
      cooperate fully with the Owner to deliver to the Owner (including any of its
      assignees or designees) and any Depositor, any and all statements, reports,
      certifications, records and any other information necessary in the good faith
      determination of the Owner or any Depositor to permit the Owner or such
      Depositor to comply with the provisions of Regulation AB, together with such
      disclosures relating to the Servicer, any Subservicer and the Mortgage Loans,
      or
      the servicing of the Mortgage Loans, reasonably believed by the Owner or any
      Depositor to be necessary in order to effect such compliance.

     

    ARTICLE
      VII

    REPORTS
      TO BE PREPARED BY SERVICER

     

    Section
      7.01.  Servicer Shall Provide Information as Reasonably
      Required.

     

    The
      Servicer shall furnish to the Owner upon request, during the term of this
      Agreement, such periodic, special or other reports or information, whether
      or
      not provided for herein, as shall be necessary, reasonable or appropriate with
      respect to the purposes of this Agreement.  The Servicer may negotiate
      with the Owner for a reasonable fee for providing such report or information,
      unless (i) the Servicer is required to supply such report or information
      pursuant to any other section of this Agreement, or (ii) the report or
      information has been requested in connection with Internal Revenue Service
      or
      other regulatory agency requirements.  All such reports or information
      shall be provided by and in accordance with all reasonable instructions and
      directions given by the Owner. The Servicer agrees to execute and deliver all
      such instruments and take all such action as the Owner, from time to time,
      may
      reasonably request in order to effectuate the purpose and to carry out the
      terms
      of this Agreement.

     

    ARTICLE
      VIII

    THE
      SERVICER

     

    Section
      8.01.  Indemnification; Third Party Claims.

     

    The
      Servicer agrees to indemnify the Owner, its successors and assigns, any agent
      of
      the Owner, and the Master Servicer, and hold each of such Persons harmless
      from
      and against any and all claims, losses, damages, penalties, fines, forfeitures,
      legal fees and related costs, judgments, and any other costs, fees and expenses
      that such Person may sustain in any way related to the failure of the Servicer
      to perform in any way its duties and service the Mortgage Loans in strict
      compliance with the terms of this Agreement and for breach of any representation
      or warranty of the Servicer contained herein.  The Servicer shall
      immediately notify the Owner or other indemnified Person if a claim is made
      by a
      third party with respect to this Agreement or the Mortgage Loans, assume (with
      the consent of the Owner and such other Indemnified Person and with counsel
      reasonably satisfactory to the Owner and such Person) 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 such other indemnified Person in respect of such claim but failure
      to so notify the Owner and such other indemnified Person shall not limit its
      obligations hereunder.  The Servicer agrees that it will not enter
      into any settlement of any such claim without the consent of the Owner and
      such
      other indemnified Person unless such settlement includes an unconditional
      release of the Owner and such other indemnified Person from all liability that
      is the subject matter of such claim.  The provisions of this Section
      8.01 shall survive termination of this Agreement.

     

    Section
      8.02.  Merger or Consolidation of the Servicer.

     

    The
      Servicer will keep in full effect its existence, rights and franchises as a
      corporation under the laws of the state of its incorporation except as permitted
      herein, and will 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 duties under this
      Agreement.

     

    Any
      Person into which the Servicer may be merged or consolidated, or any corporation
      resulting from any merger, conversion or consolidation to which the Servicer
      shall be a party, or any Person succeeding to the business of the Servicer
      whether or not related to loan servicing, shall be the successor of the 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 surviving Person
      shall
      be an institution (i) having a GAAP net worth of not less than $25,000,000,
      (ii)
      the deposits of which are insured by the FDIC, or which is a HUD-approved
      mortgagee whose primary business is in origination and servicing of first lien
      mortgage loans, and (iii) which is a Fannie Mae or Freddie Mac approved
      seller/servicer in good standing.

     

    Section
      8.03.  Limitation on Liability of the Servicer and
      Others.

     

    Neither
      the Servicer nor any of the officers, employees or agents of the Servicer shall
      be under any liability to the Owner 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 made in good faith; provided, however, that this provision shall
      not
      protect the Servicer or any such person against any breach of warranties or
      representations made herein, or failure to perform in any way its obligations
      in
      compliance with any standard of care set forth in this Agreement, or any
      liability which would otherwise be imposed by reason of gross negligence or
      any
      breach of the terms and conditions of this Agreement.  The Servicer
      and any officer, employee or agent of the Servicer may rely in good faith on
      any
      document of any kind prima facie properly executed and submitted by the Owner
      respecting any matters arising hereunder.  The Servicer shall not be
      under any obligation to appear in, prosecute or defend any legal action which
      is
      not incidental to its duties to service the Mortgage Loans in accordance with
      this Agreement and which in its opinion may involve it in any expenses or
      liability; provided, however, that the Servicer may, with the consent of the
      Owner, which consent shall not be unreasonably withheld, undertake any such
      action which it may deem necessary or desirable with respect to this Agreement
      and the rights and duties of the parties hereto.  In such event, the
      reasonable legal expenses and costs of such action and any liability resulting
      therefrom shall be expenses, costs and liabilities for which the Owner will
      be
      liable, and the Servicer shall be entitled to be reimbursed therefor from the
      Custodial Account pursuant to Section 4.05.

     

    Section
      8.04.  Servicer Not to Resign.

     

    The
      Servicer shall not resign from the obligations and duties hereby imposed on
      it
      except by mutual consent of the Servicer and the Owner 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
      determination permitting the resignation of the Servicer shall be evidenced
      by
      an Opinion of Counsel to such effect delivered to the Owner which Opinion of
      Counsel shall be in form and substance acceptable to the Owner.  No
      such resignation shall become effective until a successor shall have assumed
      the
      Servicer's responsibilities and obligations hereunder in the manner provided
      in
      Section 11.01.

     

    Section
      8.05.  No Transfer of Servicing.

     

    With
      respect to the retention of the Servicer to service the Mortgage Loans
      hereunder, the Servicer acknowledges that the Owner has acted in reliance upon
      the Servicer's independent status, the adequacy of its servicing facilities,
      plan, personnel, records and procedures, its integrity, reputation and financial
      standing and the continuance thereof.  Without in any way limiting the
      generality of this section, the Servicer shall not either assign this Agreement
      or the servicing hereunder or delegate its rights or duties hereunder or any
      portion thereof, or sell or otherwise dispose of all or substantially all of
      its
      property or assets, without the prior written approval of the Owner, which
      approval shall not be unreasonably withheld; provided that the Servicer may
      assign the Agreement and the servicing hereunder without the consent of Owner
      to
      an affiliate of the Servicer to which all servicing of the Servicer is assigned
      so long as (i) such affiliate is a Fannie Mae and Freddie Mac approved servicer
      and (ii) if it is intended that such affiliate be spun off to the shareholders
      of the Servicer, such affiliate have a GAAP net worth of at least $25,000,000
      and (iii) such affiliate shall deliver to the Owner a certification pursuant
      to
      which such affiliate shall agree to be bound by the terms and conditions of
      this
      Agreement and shall certify that such affiliate is a Fannie Mae and Freddie
      Mac
      approved servicer in good standing.

     

    ARTICLE
      IX

    DEFAULT

     

    Section
      9.01.  Events of Default.

     

    In
      case
      one or more of the following Events of Default by the Servicer shall occur
      and
      be continuing, that is to say:

     

    (i)           any
      failure by the Servicer to remit to the Owner any payment required to be made
      under the terms of this Agreement which continues unremedied for one (1)
      Business Day after written notice thereof (it being understood that this
      subparagraph shall not affect Servicer's obligation pursuant to Section 5.01
      to
      pay default interest on any remittance received by the Owner after the Business
      Day on which such payment was due); or

     

    (ii)           any
      failure on the part of the Servicer duly to observe or perform in any material
      respect any other of the covenants or agreements on the part of the Servicer
      set
      forth in this Agreement (other than those described in clause (ix) hereof),
      the
      breach of which has a material adverse effect and which continue unremedied
      for
      a period of thirty 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 and such failure shall be deemed to have a
      material adverse effect) after the date on which written notice of such failure,
      requiring the same to be remedied, shall have been given to the Servicer by
      the
      Owner; or

     

    (iii)           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 Servicer and such decree or order
      shall have remained in force undischarged or unstayed for a period of sixty
      days; or

     

    (iv)           the
      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 Servicer
      or
      of or relating to all or substantially all of its property; or

     

    (v)           the
      Servicer shall admit in writing its inability to pay its debts generally as
      they
      become due, file a petition to take advantage of any applicable insolvency
      or
      reorganization statute, make an assignment for the benefit of its creditors,
      or
      voluntarily suspend payment of its obligations; or

     

    (vi)           the
      Servicer ceases to be approved by either Fannie Mae or Freddie Mac (to the
      extent such entities are then operating in a capacity similar to that in which
      they operate on the date hereof) as a mortgage loan servicer for more than
      thirty days to the extent such entities perform similar functions;
      or

     

    (vii)           the
      Servicer attempts to assign its right to servicing compensation hereunder or
      the
      Servicer attempts, without the consent of the Owner, to sell or otherwise
      dispose of all or substantially all of its property or assets or to assign
      this
      Agreement or the servicing responsibilities hereunder or to delegate its duties
      hereunder or any portion thereof except as otherwise permitted herein;
      or

     

    (viii)         the
      Servicer ceases to be qualified to transact business in any jurisdiction where
      it is currently so qualified, but only to the extent such non-qualification
      materially and adversely affects the Servicer's ability to perform its
      obligations hereunder; or

     

    (ix)           failure
      by the Servicer to duly perform, within the required time period, its
      obligations under Section 6.04, 6.09 or any of clauses (v) through (viii) of
      Section 10.02;

     

    then,
      and
      in each and every such case, so long as an Event of Default shall not have
      been
      remedied, the Owner, by notice in writing to the Servicer may, in addition
      to
      whatever rights the Owner may have under Section 8.01 and at law or equity
      to
      damages, including injunctive relief and specific performance, terminate all
      the
      rights and obligations of the Servicer (and if the Servicer is servicing any
      of
      the Mortgage Loans in a Pass-Through Transfer, appoint a successor servicer
      reasonably acceptable to the Master Servicer for such Pass-Through Transfer)
      under this Agreement and in and to the Mortgage Loans and the proceeds thereof
      without compensating the Servicer for the same.  On or after the
      receipt by the Servicer of such written notice, all authority and power of
      the
      Servicer under this Agreement, whether with respect to the Mortgage Loans or
      otherwise, shall pass to and be vested in the successor appointed pursuant
      to
      Section 11.01.  Upon written request from the Owner, the Servicer
      shall prepare, execute and deliver, any and all documents and other instruments,
      place in such successor's possession all Servicing Files, and 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, at the
      Servicer's sole expense.  The Servicer agrees to cooperate with the
      Owner and such successor in effecting the termination of the Servicer's
      responsibilities and rights hereunder, including, without limitation, the
      transfer to such successor for administration by it of all cash amounts which
      shall at the time be credited by the Servicer to the Custodial Account or Escrow
      Account or thereafter received with respect to the Mortgage Loans or any REO
      Property.

     

    The
      Servicer shall promptly reimburse the Owner (or any designee of the Owner,
      such
      as a master servicer) and any Depositor, as applicable, for all reasonable
      expenses incurred by the Owner (or such designee) or such Depositor, as such
      are
      incurred, in connection with the termination of the Servicer as servicer and
      the
      transfer of servicing of the Mortgage Loans to a successor servicer, if the
      termination and/or transfer of servicing is for cause related to a servicer
      default. The provisions of this paragraph shall not limit whatever rights the
      Owner or any Depositor may have under other provisions of this Agreement and/or
      any applicable Reconstitution Agreement or otherwise, whether in equity or
      at
      law, such as an action for damages, specific performance or injunctive
      relief.

     

    Section
      9.02.  Waiver of Defaults.

     

    The
      Owner
      may waive only by written notice any default by the Servicer in the performance
      of its obligations hereunder and its consequences.  Upon any such
      waiver of a past default, such default shall cease to exist, and any 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 in writing.

     

    ARTICLE
      X

    TERMINATION

     

    Section
      10.01.  Termination.

     

    The
      respective obligations and responsibilities of the Servicer shall terminate
      upon: (i) the later of the final payment or other liquidation (or any advance
      with respect thereto) of the last Mortgage Loan or the disposition of all REO
      Property and the remittance of all funds due hereunder; or (ii) by mutual
      consent of the Servicer and the Owner in writing; or (iii) termination by the
      Owner pursuant to Section 9.01. Simultaneously with any such termination and
      the
      transfer of servicing hereunder, the Servicer shall be entitled to be reimbursed
      for any outstanding Servicing Advances and Monthly Advances.

     

    Section
      10.02.   Cooperation of Servicer with a
      Reconstitution.

     

    The
      Servicer and the Owner agree that with respect to some or all of the Mortgage
      Loans, on or after the related closing date, on one or more dates (each a
      "Reconstitution Date") at the Owner's sole option, the Owner may effect a sale
      (each, a "Reconstitution") of some or all of the Mortgage Loans then subject
      to
      this Agreement, without recourse, to:

     

    (a)           one
      or more third party purchasers in one or more in whole loan transfers (each,
      a
      "Whole Loan Transfer"); or

     

    (b)           one
      or more trusts or other entities to be formed as part of one or more
      Pass-Through Transfers.

     

    The
      Servicer agrees to execute in connection with any agreements among the Owner,
      the Servicer, and any servicer in connection with a Whole Loan Transfer, an
      assignment, assumption and recognition agreement, or, at Owner’s request, a
      seller's warranties and servicing agreement or a participation and servicing
      agreement or similar agreement in form and substance reasonably acceptable
      to
      the parties, and in connection with a Pass-Through Transfer, a pooling and
      servicing agreement in form and substance reasonably acceptable to the
      parties.  It is understood that any such Reconstitution Agreements
      will not contain any greater obligations on the part of Servicer than are
      contained in this Agreement.

     

    With
      respect to each Whole Loan Transfer and each Pass-Through Transfer entered
      into
      by the Owner, the Servicer agrees (1) to cooperate fully with the Owner and
      any
      prospective purchaser with respect to all reasonable requests and due diligence
      procedures; (2) to execute, deliver and perform all Reconstitution Agreements
      required by the Owner; (3) to restate the representations and warranties set
      forth in this Agreement as of the settlement or closing date in connection
      with
      such Reconstitution (each, a "Reconstitution Date").

     

    In
      addition, the Servicer shall provide to such servicer or issuer, as the case
      may
      be, and any other participants in such Reconstitution:

     

    (i)           any
      and all information and appropriate verification of information which may be
      reasonably available to the Servicer, whether through letters of its auditors
      and counsel or otherwise, as the Owner or any such other participant shall
      request upon reasonable demand;

     

    (ii)           such
      additional representations, warranties, covenants, opinions of counsel, letters
      from auditors, and certificates of public officials or officers of the Servicer
      as are reasonably agreed upon by the Servicer and the Owner or any such other
      participant;

     

    (iii)           within
      5 Business Days after request by the Owner, the information with respect to
      the
      Servicer (as servicer) as required by Item 1108(b) and (c) of Regulation AB,
      a
      summary of the requirements of which as of the date hereof is attached hereto
      as
Exhibit I for convenience of reference only, as determined by Owner in
      its sole discretion.  In the event that the Servicer has delegated any
      servicing responsibilities with respect to the Mortgage Loans to a Subservicer,
      the Servicer shall provide the information required pursuant to this clause
      with
      respect to the Subservicer;

     

    (iv)           within
      5 Business Days after request by the Owner,

     

    (a)
      information regarding any legal
      proceedings pending (or known to be contemplated) against the Servicer (as
      servicer) and each Subservicer as required by Item 1117 of Regulation AB, a
      summary of the requirements of which as of the date hereof is attached hereto
      as
Exhibit I for convenience of reference only, as determined by Owner in
      its sole discretion,

     

    (b)
      information regarding affiliations
      with respect to the Servicer (as servicer) and each Subservicer as required
      by
      Item 1119(a) of Regulation AB, a summary of the requirements of which as of
      the
      date hereof is attached hereto as Exhibit I for convenience of reference
      only, as determined by Owner in its sole discretion, and

     

    

    (c)
      information regarding relationships
      and transactions with respect to the Servicer (as servicer) and each Subservicer
      as required by Item 1119(b) and (c) of Regulation AB, a summary of the
      requirements of which as of the date hereof is attached hereto as Exhibit
      I for convenience of reference only, as determined by Owner in its sole
      discretion;

     

    (v)           for
      the purpose of satisfying the reporting obligation under the Exchange Act with
      respect to any class of asset-backed securities, the Servicer shall (or shall
      cause each Subservicer to) (i) provide prompt notice to the Owner, the Master
      Servicer and any Depositor in writing of (A) any material litigation or
      governmental proceedings involving the Servicer or any Subservicer, (B) any
      affiliations or relationships that develop following the closing date of a
      Pass-Through Transfer between the Servicer or any Subservicer and any of the
      parties specified in clause (D) of paragraph (a) of this Section (and any other
      parties identified in writing by the requesting party) with respect to such
      Pass-Through Transfer, (C) any Event of Default under the terms of this
      Agreement or any Reconstitution Agreement, (D) any merger,
      consolidation  or sale of substantially all of the assets of the
      Servicer, and (E) the Servicer’s entry into an agreement with a Subservicer to
      perform or assist in the performance of any of the Servicer’s obligations under
      this Agreement or any Reconstitution Agreement and (ii) provide to the Owner
      and
      any Depositor a description of such proceedings, affiliations or
      relationships;

     

    (vi)           as
      a condition to the succession to the Servicer or any Subservicer as servicer
      or
      subservicer under this Agreement or any Reconstitution Agreement by any Person
      (i) into which the Servicer or such Subservicer may be merged or consolidated,
      or (ii) which may be appointed as a successor to the Servicer or any
      Subservicer, the Servicer shall provide to the Owner, the Master Servicer,
      and
      any Depositor, at least 15 calendar days prior to the effective date of such
      succession or appointment, (x) written notice to the Owner and any Depositor
      of
      such succession or appointment and (y) in writing and in form and substance
      reasonably satisfactory to the Owner and such Depositor, all information
      reasonably requested by the Owner or any Depositor in order to comply with
      its
      reporting obligation under Item 6.02 of Form 8-K with respect to any class
      of
      asset-backed securities;

     

    (vii)           in
      addition to such information as the Servicer, as servicer, is obligated to
      provide pursuant to other provisions of this Agreement, not later than ten
      days
      prior to the deadline for the filing of any distribution report on Form 10-D
      in
      respect of any Pass-Through Transfer that includes any of the Mortgage Loans
      serviced by the Servicer or any Subservicer, the Servicer or such Subservicer,
      as applicable, shall, to the extent the Servicer or such Subservicer has
      knowledge, provide to the party responsible for filing such report (including,
      if applicable, the Master Servicer) notice of the occurrence of any of the
      following events along with all information, data, and materials related thereto
      as may be required to be included in the related distribution report on Form
      10-D (as specified in the provisions of Regulation AB referenced
      below):

     

    (A)           any
      material modifications, extensions or waivers of pool asset terms, fees,
      penalties or payments during the distribution period or that have cumulatively
      become material over time (Item 1121(a)(11) of Regulation AB);

     

    (B)           material
      breaches of pool asset representations or warranties or transaction covenants
      (Item 1121(a)(12) of Regulation AB); and

     

    (C)           information
      regarding new asset-backed securities issuances backed by the same pool assets,
      any pool asset changes (such as, additions, substitutions or repurchases),
      and
      any material changes in origination, underwriting or other criteria for
      acquisition or selection of pool assets (Item 1121(a)(14) of Regulation AB);
      and

     

    (viii)       the
      Servicer shall provide to the Owner, the Master Servicer and any Depositor,
      evidence of the authorization of the person signing any certification or
      statement, copies or other evidence of Fidelity Bond Insurance and Errors and
      Omission Insurance policy, financial information and reports, and such other
      information related to the Servicer or any Subservicer or the Servicer or such
      Subservicer’s performance hereunder.

     

    In
      the
      event of a conflict or inconsistency between the terms of Exhibit I and
      the text of the applicable Item of Regulation AB as cited above, the text of
      Regulation AB, its adopting release and other public statements of the SEC
      shall
      control.

     

    The
      Servicer shall indemnify the Owner, each affiliate of the Owner, and each of
      the
      following parties participating in a Pass-Through Transfer: each issuing entity;
      each Person (including, but not limited to, the Master Servicer, if applicable)
      responsible for the preparation, execution or filing of any report required
      to
      be filed with the Commission with respect to such Pass-Through Transfer, or
      for
      execution of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under
      the Exchange Act with respect to such Pass-Through Transfer; each broker dealer
      acting as underwriter, placement agent or initial purchaser, each Person who
      controls any of such parties or the Depositor (within the meaning of Section
      15
      of the Securities Act and Section 20 of the Exchange Act); and the respective
      present and former directors, officers, employees, agents and affiliates of
      each
      of the foregoing and of the Depositor (each, an “Indemnified Party”), and shall
      hold each of them harmless from and against any claims, losses, damages,
      penalties, fines, forfeitures, legal fees and expenses and related costs,
      judgments, and any other costs, fees and expenses that any of them may sustain
      arising out of or based upon:

     

    (i)(A)
      any untrue statement of a material fact contained or alleged to be contained
      in
      any information, report, certification, data, accountants’ letter or other
      material provided under this Section 10.02 by or on behalf of the Servicer,
      or
      provided under this Section 10.02, Sections 6.04 and 6.09 and by or on behalf
      of
      any Subservicer or Subcontractor (collectively, the “Servicer Information”), or
      (B) the omission or alleged omission to state in the Servicer Information a
      material fact required to be stated in the Servicer Information or necessary
      in
      order to make the statements therein, in the light of the circumstances under
      which they were made, not misleading; provided, by way of clarification, that
      clause (B) of this paragraph shall be construed solely by reference to the
      Servicer Information and not to any other information communicated in connection
      with a sale or purchase of securities, without regard to whether the Servicer
      Information or any portion thereof is presented together with or separately
      from
      such other information;

     

    (ii)
      any
      breach by the Servicer of its obligations under this Section 10.02, including
      particularly 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 Section 10.02, including any failure
      by
      the Servicer to identify pursuant to Section 11.15 any Subcontractor
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB;

     

    (iii)
      any
      breach by the Servicer of a representation or warranty set forth in Section
      Article III or in a writing furnished pursuant to clause (h) of Article III
      and
      made as of a date prior to the closing date of the related Pass-Through
      Transfer, to the extent that such breach is not cured by such closing date,
      or
      any breach by the Servicer of a representation or warranty in a writing
      furnished pursuant to clause (h) of Article III to the extent made as of a
      date
      subsequent to such closing date; or

     

    (iv)
      the
      negligence bad faith or willful misconduct of the Servicer in connection with
      its performance under this Section 10.02.

     

    If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless an Indemnified Party, then the Servicer agrees that it shall contribute
      to the amount paid or payable by such Indemnified Party as a result of any
      claims, losses, damages or liabilities incurred by such Indemnified Party in
      such proportion as is appropriate to reflect the relative fault of such
      Indemnified Party on the one hand and the Servicer on the other.

     

    In
      the
      case of any failure of performance described above, the Servicer shall promptly
      reimburse the Owner, any 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 such Pass-Through Transfer, or for execution
      of a
      certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange
      Act with respect to such Pass-Through Transfer, for all costs reasonably
      incurred by each such party in order to obtain the information, report,
      certification, accountants’ letter or other material not delivered pursuant to
      this Section or Section 6.04 or Section 6.09 as required by the Servicer, any
      Subservicer or any Subcontractor.

     

    This
      indemnification shall survive the termination of this Agreement or the
      termination of any party to this Agreement.

     

    All
      Mortgage Loans not sold or transferred pursuant to a Whole Loan Transfer or
      Pass
      Through Transfer shall be subject to this Agreement and shall continue to be
      serviced in accordance with the terms of this Agreement and with respect thereto
      this Agreement shall remain in full force and effect.

     

    Section
      10.03.  Master Servicer.

     

    The
      Servicer, including any successor servicer hereunder, shall be subject to the
      supervision of the Master Servicer, which Master Servicer shall be obligated
      to
      ensure that the Servicer services the Mortgage Loans in accordance with the
      provisions of this Agreement.  The Master Servicer, acting on behalf
      of the Owner, shall have the same rights as the Owner to enforce the obligations
      of the Servicer under this Agreement.  The Master Servicer, or the
      entity specified in the related pooling and servicing agreement, shall be
      entitled to terminate the rights and obligations of the Servicer under this
      Agreement upon the failure of the Servicer to perform any of its obligations
      under this Agreement if such failure constitutes an Event of Default as provided
      in Article IX of this Agreement.  Notwithstanding anything to the
      contrary, in no event shall the Master Servicer assume any of the obligations
      of
      the Owner under this Agreement.

     

    ARTICLE
      XI

    MISCELLANEOUS
      PROVISIONS

     

    Section
      11.01.  Successor to the Servicer.

     

    Prior
      to
      termination of the Servicer's responsibilities and duties under this Agreement
      pursuant to Sections 8.04, 9.01 or 10.01(ii), the Owner shall (i) succeed to
      and
      assume all of the Servicer's responsibilities, rights, duties and obligations
      under this Agreement, or (ii) appoint a successor having the characteristics
      set
      forth in Section 8.02 hereof and which shall succeed to all rights and assume
      all of the responsibilities, duties and liabilities of the Servicer under this
      Agreement prior to the termination of the Servicer's responsibilities, duties
      and liabilities under this Agreement.  In connection with such
      appointment and assumption, the Owner may make such arrangements for the
      compensation of such successor out of payments on Mortgage Loans as the Owner
      and such successor shall agree.  In the event that the Servicer's
      duties, responsibilities and liabilities under this Agreement should be
      terminated pursuant to the aforementioned sections, the Servicer shall discharge
      such duties and responsibilities during the period from the date it acquires
      knowledge of such termination until the effective date thereof 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 or financial condition of its successor.  The resignation
      or removal of the Servicer pursuant to the aforementioned sections shall not
      become effective until a successor shall be appointed pursuant to this section
      and shall in no event relieve the Servicer of the representations and warranties
      made pursuant to Article III and the remedies available to the Owner under
      Section 8.01, it being understood and agreed that the provisions of such Article
      III and Section 8.01 shall be applicable to the Servicer notwithstanding any
      such resignation or termination of the Servicer, or the termination of this
      Agreement.

     

    Any
      successor appointed as provided herein shall execute, acknowledge and deliver
      to
      the Servicer and to the Owner an instrument accepting such appointment,
      whereupon such successor shall become fully vested with all the rights, powers,
      duties, responsibilities, obligations and liabilities of the Servicer, with
      like
      effect as if originally named as a party to this Agreement.  Any
      termination or resignation of the Servicer or this Agreement pursuant to Section
      8.04, 9.01 or 10.01 shall not affect any claims that the Owner may have against
      the Servicer arising prior to any such termination or resignation.

     

    The
      Servicer shall promptly deliver to the successor the funds in the Custodial
      Account and the Escrow Account and the Servicing Files and related documents
      and
      statements held by it hereunder and the Servicer shall account for all
      funds.  The Servicer shall execute and deliver such instruments and do
      such other things all as may reasonably be required to more fully and definitely
      vest and confirm in the successor all such rights, powers, duties,
      responsibilities, obligations and liabilities of the Servicer.  The
      successor shall make such arrangements as it may deem appropriate to reimburse
      the Servicer for unrecovered Monthly Advances and Servicing Advances which
      the
      successor retains hereunder and which would otherwise have been recovered by
      the
      Servicer pursuant to this Agreement but for the appointment of the successor
      servicer.

     

    Upon
      a
      successor's acceptance of appointment as such, the Servicer shall notify the
      Owner of such appointment.

     

    All
      reasonable costs and expenses incurred in connection with replacing the Servicer
      upon its resignation or the termination of the Servicer in accordance with
      the
      terms of this Agreement, including, without limitation, (i) all legal costs
      and
      expenses and all due diligence costs and expenses associated with an evaluation
      of the potential termination of the Servicer as a result of an Event of Default
      and (ii) all costs and expenses associated with the complete transfer of
      servicing, including all servicing files and all servicing data and the
      completion, correction or manipulation of such servicing data as may be required
      by the successor servicer to correct any errors or insufficiencies in the
      servicing data or otherwise to enable the successor service to service the
      Mortgage Loans in accordance with this Agreement, shall be payable on demand
      by
      the resigning or terminated Servicer without any right of reimbursement
      therefor.

     

    Section
      11.02.  Amendment.

     

    This
      Agreement may be amended from time to time by the Servicer and the Owner by
      written agreement signed by the Servicer and the Owner.

     

    Section
      11.03.  Recordation of Agreement.

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all the counties
      or
      other comparable jurisdictions in which any of all the properties subject to
      the
      Mortgages are situated, and in any other appropriate public recording office
      or
      elsewhere, such recordation to be effected by the Servicer at the Owner's
      expense on direction of the Owner accompanied by an opinion of counsel to the
      effect that such recordation materially and beneficially affects the interest
      of
      the Owner or is necessary for the administration or servicing the Mortgage
      Loans.

     

    Section
      11.04.  Governing Law.

     

    THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
      LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS
      OF LAWS.  THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
      HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     

    

    Section
      11.05.  Notices.

     

    Any
      demands, notices or other communications permitted or required hereunder shall
      be in writing and shall be deemed conclusively to have been given if personally
      delivered at or mailed by registered mail, postage prepaid, and return receipt
      requested or transmitted by telecopier and confirmed by a similar mailed
      writing, as follows:

     

    (i)           if
      to the Servicer:

    

    EMC
      Mortgage Corporation

    2780
      Lake Vista Drive

    Lewisville,
      Texas 75067

    Attention:  General
      Counsel

    Telecopier
      No.:  (469)
      759-4714

    

    (ii)           if
      to the Owner:

    

    Bear,
      Stearns & Co.
      Inc.

    383
      Madison Ave.

    New
      York, New York 10179

    Attention:  Global
      Credit
      Administration

    Telecopier
      No.:  (212)
      272-3751

    

    

    (iii)           if
      to the Master Servicer:

    

    EMC
      Mortgage Corporation

    2780
      Lake Vista Drive

    Lewisville,
      Texas 75067

    Attention:  Michelle
      Viner

    Telecopier
      No.:  (214)
      626-4889

    Email:
      mviner@bear.com

    

    

    or
      such
      other address as may hereafter be furnished to the other party by like
      notice.  Any such demand, notice, or communication hereunder shall be
      deemed to have been received on the date delivered to or received at the
      premises of the address (as evidenced, in the case of registered or certified
      mail, by the date noted on the return receipt).

     

    Section
      11.06.  Severability of Provisions.

     

    Any
      part,
      provision, representation or warranty of this Agreement which is prohibited
      or
      which is held to be void or unenforceable shall be ineffective to the extent
      of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof.  Any part, provision, representation or warranty of
      this Agreement which is prohibited or unenforceable or is held to be void or
      unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction,
      to the extent of such prohibition or unenforceability without invalidating
      the
      remaining provisions hereof, and any such prohibition or unenforceability in
      any
      jurisdiction as to any Mortgage Loan shall not invalidate or render
      unenforceable such provision in any other jurisdiction.  To the extent
      permitted by applicable law, the parties hereto waive any provision of law
      which
      prohibits or renders void or unenforceable any provision hereof.  If
      the invalidity of any part, provision, representation or warranty of this
      Agreement shall deprive any party of the economic benefit intended to be
      conferred by this Agreement, the parties shall negotiate, in good faith, to
      develop a structure the economic effect of which is nearly as possible the
      same
      as the economic effect of this Agreement without regard to such
      invalidity.

     

    Section
      11.07.  Exhibits

     

    The
      exhibits to this Agreement are hereby incorporated and made a part hereof and
      are an integral part of this Agreement.

     

    Section
      11.08.  General Interpretive Principles.

     

    For
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires:

     

    (i)           the
      terms defined in this Agreement have the meanings assigned to them in this
      Agreement and include the plural as well as the singular, and the use of any
      gender herein shall be deemed to include the other gender;

     

    (ii)           accounting
      terms not otherwise defined herein have the meanings assigned to them in
      accordance with generally accepted accounting principles;

     

    (iii)           references
      herein to "Articles," "Sections," "Subsections," "Paragraphs," and other
      subdivisions without reference to a document are to designated Articles,
      Sections, Subsections, Paragraphs and other subdivisions of this
      Agreement;

     

    (iv)           a
      reference to a Subsection without further reference to a Section is a reference
      to such Subsection as contained in the same Section in which the reference
      appears, and this rule shall also apply to Paragraphs and other
      subdivisions;

     

    (v)           the
      words "herein," "hereof," "hereunder" and other words of similar import refer
      to
      this Agreement as a whole and not to any particular provision; and

     

    (vi)           the
      term "include" or "including" shall mean without limitation by reason of
      enumeration.

     

    Section
      11.09.  Reproduction of Documents.

     

    This
      Agreement and all documents relating hereto, including, without limitation,
      (i)
      consents, waivers and modifications which may hereafter be executed, (ii)
      documents received by any party at the closing, and (iii) financial statements,
      certificates and other information previously or hereafter furnished, may be
      reproduced by any photographic, photostatic, microfilm, micro-card, miniature
      photographic or other similar process.  The parties agree that any
      such reproduction shall be admissible in evidence as the original itself in
      any
      judicial or administrative proceeding, whether or not the original is in
      existence and whether or not such reproduction was made by a party in the
      regular course of business, and that any enlargement, facsimile or further
      reproduction of such reproduction shall likewise be admissible in
      evidence.

     

    Section
      11.10.  Confidentiality of Information.

     

    Each
      party recognizes that, in connection with this Agreement, it may become privy
      to
      non-public information regarding the financial condition, operations and
      prospects of the other party.  Except as required to be disclosed by
      law, each party agrees to keep all non-public information regarding the other
      party strictly confidential, and to use all such information solely in order
      to
      effectuate the purpose of this Agreement.

     

    Section
      11.11.  Assignment by the Owner.

     

    The
      Owner
      shall have the right, without the consent of the Servicer hereof, to assign,
      in
      whole or in part, its interest under this Agreement with respect to some or
      all
      of the Mortgage Loans, and designate any person to exercise any rights of the
      Owner hereunder, by executing an assignment and assumption agreement reasonably
      acceptable to the Servicer and the assignee or designee shall accede to the
      rights and obligations hereunder of the Owner with respect to such Mortgage
      Loans.  In no event shall Owner sell a partial interest in any
      Mortgage Loan.  All references to the Owner in this Agreement shall be
      deemed to include its assignees or designees.  It is understood and
      agreed between the Owners and the Servicer that no more than five (5) Persons
      shall have the right of owner under this Agreement at any one time.

     

    Section
      11.12.  No Partnership.

     

    Nothing
      herein contained shall be deemed or construed to create a co-partnership or
      joint venture between the parties hereto and the services of the Servicer shall
      be rendered as an independent contractor and not as agent for
      Owner.

     

    Section
      11.13.  Execution, Successors and Assigns.

     

    This
      Agreement may be executed in one or more counterparts and by the different
      parties hereto on separate counterparts, each of which, when so executed, shall
      be deemed to be an original; such counterparts, together, shall constitute
      one
      and the same agreement.  Subject to Section 8.05, this Agreement shall
      inure to the benefit of and be binding upon the Servicer and the Owner and
      their
      respective successors and assigns.

     

    Section
      11.14.  Entire Agreement.

     

    Each
      of
      the Servicer and the Owner acknowledge that no representations, agreements
      or
      promises were made to it by the other party or any of its employees other than
      those representations, agreements or promises specifically contained
      herein.  This Agreement sets forth the entire understanding between
      the parties hereto and shall be binding upon all successors of both
      parties.

     

    Section
      11.15. Use of Subservicers and Subcontractors.

    

    (a)           The
      Servicer shall not hire or otherwise utilize the services of any Subservicer
      to
      fulfill any of the obligations of the Servicer as servicer under this Agreement
      or any Reconstitution Agreement unless the Servicer complies with the provisions
      of paragraph (b) of this Section. The Servicer shall not hire or otherwise
      utilize the services of any Subcontractor, and shall not permit any Subservicer
      to hire or otherwise utilize the servicers of any Subcontractor, to fulfill
      any
      of the obligations of the Servicer as servicer under this Agreement or any
      Reconstitution Agreement unless the Servicer complies with the provisions of
      paragraph (d) of this Section.  The Servicer must notify the Owner,
      the Master Servicer and any Depositor in writing of any affiliations or
      relationships that develop following the closing date between the Servicer
      or
      any Subservicer.

    

    (b)           The
      Servicer shall cause any Subservicer used by the Servicer (or by any
      Subservicer) for the benefit of the Owner and any Depositor to comply with
      the
      provisions of this Section and with clauses (g) and (j) of Article III, Sections
      6.04, 6.09 and 10.02 of this Agreement to the same extent as if such Subservicer
      were the Owner, and to provide the information required with respect to such
      Subservicer under Section 3.01(i) of this Agreement. The Servicer shall be
      responsible for obtaining from each Subservicer and delivering to the Owner,
      the
      Master Servicer and any Depositor any Annual Statement of Compliance required
      to
      be delivered by such Subservicer under Section 6.04(a), any Assessment of
      Compliance and Attestation Report required to be delivered by such Subservicer
      under Section 6.09, any Annual Certification required under Section 6.04(b),
      any
      Additional Form 10-D Disclosure and any Form 8-K Disclosure Information, as
      and
      when required to be delivered.

    

    (c)           The
      Servicer shall promptly upon request provide to the Owner, the Master Servicer
      and any Depositor (or any designee of the Depositor, such as an administrator)
      a
      written description (in form and substance satisfactory to the Owner, the Master
      Servicer and such Depositor) of the role and function of each Subcontractor
      utilized by the Servicer or any Subservicer, specifying (i) the identity of
      each
      such Subcontractor, (ii) which (if any) of such Subcontractors are
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, and (iii) which elements of the Servicing Criteria will be
      addressed in assessments of compliance provided by each Subcontractor identified
      pursuant to clause (ii) of this paragraph.

    

    (d)           As
      a condition to the utilization of any
      Subcontractor determined to be “participating in the servicing function” within
      the meaning of Item 1122 of Regulation AB, the Servicer shall cause any such
      Subcontractor used by the Servicer (or by any Subservicer) for the benefit
      of
      the Owner and any Depositor to comply with the provisions of Sections 6.07
      and
      10.02 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 Owner and any Depositor any Assessment
      of
      Compliance and Attestation Report and other certificates required to be
      delivered by such Subservicer and such Subcontractor under Section 6.09 (and any
      Annual Certification required under Section 6.09(b)), in each case as and when
      required to be delivered.

    

    11.16.    Third
      Party Beneficiary

     

    For
      purposes of this Agreement, each Master Servicer shall be considered a third
      party beneficiary to this Agreement, entitled to all the rights and benefits
      hereof as if it were a direct party to this Agreement.

     

    IN
      WITNESS WHEREOF, the Servicer and the Owner have caused their names to be signed
      hereto by their respective officers thereunto duly authorized as of the date
      and
      year first above written.

     

    

    
      	 	 	 	 EMC
              MORTGAGE CORPORATION, as
              Servicer
	 	 	 	 
	 	 	 	 By:
              ____________________________
	 	 	 	 Name:
	 	 	 	 Title:
	 	 	 	 
	 	 	 	 STRUCTURED
              ASSET MORTGAGE INVESTMENTS II
              INC.,
	 	 	 	 as
              Owner
	 	 	 	 
	 	 	 	 By:
              ___________________________
	 	 	 	 Name:
              Joseph T. Jurkowski, Jr.
	 	 	 	 Title:   Vice
              President

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    MORTGAGE
      LOAN SCHEDULE

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    CUSTODIAL
      ACCOUNT LETTER AGREEMENT

    (date)

    

    

    To:______________________

    _________________________

    _________________________

        (the
      "Depository")

     

    As
      "Servicer" under the Servicing Agreement, dated as of August 1, 2007, (the
      "Agreement"), we hereby authorize and request you to establish an account,
      as a
      Custodial Account pursuant to Section 4.04 of the Agreement, to be designated
      as
      "EMC Custodial Account, in trust for SAMI II, Owner of Whole Loan Mortgages,
      and
      various Mortgagors."  All deposits in the account shall be subject to
      withdrawal therefrom by order signed by the Servicer.  You may refuse
      any deposit which would result in violation of the requirement that the account
      be fully insured as described below.  This letter is submitted to you
      in duplicate.  Please execute and return one original to
      us.

     

                     

                     By:____________________

     

                     Name:__________________

     

                     Title:_________________

     

    The
      undersigned, as "Depository", hereby certifies that the above described account
      has been established under Account Number __________, at the office of the
      depository indicated above, and agrees to honor withdrawals on such account
      as
      provided above.  The full amount deposited at any time in the account
      will be invested in Permitted Investments as defined in the
      Agreement.

     

                     [                  ]

     

                     (name
      of Depository)

     

                     By:____________________

     

                     Name:__________________

     

                     Title:_________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    ESCROW
      ACCOUNT LETTER AGREEMENT

    

    (date)

    

    To:___________________________

    ______________________________

    ______________________________

           (the
      "Depository")

     

    

    As
      "Servicer" under the Servicing Agreement, dated as of August 1, 2007 (the
      "Agreement"), we hereby authorize and request you to establish an account,
      as an
      Escrow Account pursuant to Section 4.06 of the Agreement, to be designated
      as
      "EMC Escrow Account, in trust for SAMI II, Owner of Whole Loan Mortgages, and
      various Mortgagors."  All deposits in the account shall be subject to
      withdrawal therefrom by order signed by the Servicer.  You may refuse
      any deposit which would result in violation of the requirement that the account
      be fully insured as described below.  This letter is submitted to you
      in duplicate.  Please execute and return one original to
      us.

     

                     

                     By:____________________

     

                     Name:__________________

     

                     Title:_________________

     

    The
      undersigned, as "Depository", hereby certifies that the above described account
      has been established under Account Number __________, at the office of the
      depository indicated above, and agrees to honor withdrawals on such account
      as
      provided above.  The full amount deposited at any time in the account
      will be invested in Permitted Investments as defined in the
      Agreement.

     

                     [                  ]

     

                     (name
      of Depository)

     

                     By:____________________

     

                     Name:__________________

     

                     Title:_________________

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      D

    

    REQUEST
      FOR RELEASE OF DOCUMENTS

    

    To:           Wells
      Fargo Bank, N.A.

     

    1015
      10th Avenue Southeast, MS
      0031

     

    Minneapolis,
      Minnesota
      55414

     

    Attn:  ________________

     

    Treasury
      Bank, a Division of
      Countrywide Bank, FSB

     

    4100
      East Los Angeles
      Avenue

     

    Simi
      Valley, California
      93063

     

    Attn:  ________________

     

    

    
      	
               

            	
              Re:

            	
              Custodial
                Agreement dated as of August 31, 2007, between EMC Mortgage Corporation
                and [Wells Fargo Bank, N.A.] [Treasury Bank, a Division of Countrywide
                Bank, FSB], as Custodian

            

    

    

    In
      connection with the administration of the Mortgage Loans held by you as
      Custodian for the Owner pursuant to the above-captioned Custody Agreement,
      we
      request the release, and hereby acknowledge receipt, of the Custodian's Mortgage
      File for the Mortgage Loan described below, for the reason
      indicated.

     

    Mortgage
      Loan Number:

    

    Mortgagor
      Name, Address & Zip Code:

    

    Reason
      for Requesting Documents (check one):

     

    _______                                1.           Mortgage
      Paid in Full

     

    _______                                2.           Foreclosure

     

    _______                                3.           Substitution

     

    _______                                4.           Other
      Liquidation (Repurchases, etc.)

     

    _______                                5.           Nonliquidation  [Reason:_______________________________]

     

    Address
      to which Custodian should

     

    Deliver
      the Custodian's Mortgage
      File:                            __________________________________________

     

    __________________________________________

     

    __________________________________________

     

    

    

    By:_______________________________________

                                                                                                                       
                                                                
(authorized signer)

     

    Issuer:_____________________________________

     

                  
      Address:___________________________________

                                                                                
        ___________________________________

    

    Date:______________________________________

     

    

    

    Custodian

    

    [Wells
      Fargo Bank, N.A.] [Treasury Bank, a Division of Countrywide Bank,
      FSB]

     

    

    Please
      acknowledge the execution of the above request by your signature and date
      below:

     

    

    ____________________________________                                                                                                           _________________

     

    Signature                                                                           Date

     

    

    Documents
      returned to Custodian:

     

    

    ____________________________________                                                                                                           _________________

     

    Custodian                                                                                     Date

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
EXHIBIT
        E

    

    

    EMC
      FORM
– REMITTANCE OVERVIEW REPORT

    

    Remittance
      Overview Report:  Provides loan level detail regarding the
      remittance that will be submitted to EMC Master Servicing and contains the
      following data fields in the order below:

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              Deal
                Name

            	
              VARCHAR
                (15)

            
	
              Master
                Servicer Loan Number

            	
              NUMERIC
                (9,0)

            
	
              Current
                Investor Category

            	
              VARCHAR
                (5)

            
	
              Original
                Investor Category

            	
              VARCHAR
                (5)

            
	
              Servicer
                Loan Number

            	
              VARCHAR
                (15)

            
	
              Cutoff
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Loan
                Next Due Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Gross
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Net
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Pending
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Servicing
                Fee Rate

            	
              NUMERIC
                (7,7)

            
	
              MI
                Rate

            	
              NUMERIC
                (7,7)

            
	
              Scheduled
                P&I Amount (P & I Constant)

            	
              NUMERIC
                (12,2)

            
	
              ARM
                Index

            	
              NUMERIC
                (7,7)

            
	
              Pending
                ARM Index

            	
              NUMERIC
                (7,7)

            
	
              Beginning
                Scheduled Principal Balance

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Principal Remitted

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Principal Curtailment Remitted

            	
              NUMERIC
                (12,2)

            
	
              Curtailment
                Adjustment Remitted

            	
              NUMERIC
                (12,2)

            
	
              Liquidation
                Principal Remitted

            	
              NUMERIC
                (12,2)

            
	
              Principal
                Not Advanced (stop advance loans only)

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Gross Interest

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Interest Remitted

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Service Fee Amount

            	
              NUMERIC
                (12,2)

            
	
              Soldiers
                and Sailors Variance

            	
              NUMERIC
                (12,2)

            
	
              Net
                Interest Not Advanced

            	
              NUMERIC
                (12,2)

            
	
              Prepayment
                Penalty Remitted

            	
              NUMERIC
                (12,2)

            
	
              PMI
                Premium Remitted

            	
              NUMERIC
                (12,2)

            
	
              Additional
                Fees Remitted

            	
              NUMERIC
                (12,2)

            
	
              Ending
                Scheduled Balance

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Amount Remitted Total (each loan)

            	
              NUMERIC
                (12,2)

            
	
              Beginning
                Actual Balance

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Principal Collected

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Curtailments Collected

            	
              NUMERIC
                (12,2)

            
	
              Curtailment
                Adjustment Collected

            	
              NUMERIC
                (12,2)

            
	
              Gross
                Interest Collected

            	
              NUMERIC
                (12,2)

            
	
              Net
                Interest Collected

            	
              NUMERIC
                (12,2)

            
	
              Service
                Fee Collected

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Ending Principal Balance

            	
              NUMERIC
                (12,2)

            
	
              Liquidation
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Liquidation
                Type

            	
              VARCHAR
                (1)

            
	
              Gross
                Liquidation Proceeds

            	
              NUMERIC
                (12,2)

            
	
              Liquidation
                Expenses

            	
              NUMERIC
                (12,2)

            
	
              Principal
                and Interest Advanced Balance

            	
              NUMERIC
                (12,2)

            
	
              Delinquent
                Service Fee

            	
              NUMERIC
                (12,2)

            
	
              Calculated
                Loss to Trust

            	
              NUMERIC
                (12,2)

            
	
              Net
                Interest Remitted

            	
              NUMERIC
                (12,2)

            
	
              Collected
                Interest Not Remitted

            	
              NUMERIC
                (12,2)

            
	
              Ending
                Advance Balance

            	
              NUMERIC
                (12,2)

            
	
              Soldiers
                and Sailors Flag

            	
              VARCHAR
                (1)

            
	
              Soldiers
                and Sailors Old Rate

            	
              NUMERIC
                (7,7)

            
	
              Soldiers
                and Sailors Old P & I

            	
              NUMERIC
                (12,2)

            
	
              Modified
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Stop
                Advance Flag

            	 
	
              Stop
                Advance Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              BPO
                Value

            	
              NUMERIC
                (12,2)

            
	
              Cash
                Flow Group

            	
              VARCHAR
                (2)

            
	
              MSP
                Principal Balance

            	
              NUMERIC
                (12,2)

            
	
              Debt
                Forgiven / Charged Off

            	
              NUMERIC
                (12,2)

            
	
              Mortgagor
                PITI Payment

            	
              NUMERIC
                (12,2)

            
	
              Bankruptcy
                Status

            	
              VARCHAR
                (2)

            
	
              Foreclosure
                Status

            	
              VARCHAR
                (2)

            
	
              Modification
                Status

            	 
	
              Interest
                Only Loan

            	
              VARCHAR
                (2)

            
	
              Escrowed
                Loan

            	
              VARCHAR
                (2)

            
	
              Monthly
                Escrow Deposit

            	
              NUMERIC
                (12,2)

            
	
              Escrow
                Balance

            	
              NUMERIC
                (12,2)

            
	
              Escrow
                Advance Balance

            	
              NUMERIC
                (12,2)

            
	
              Restricted
                Escrow Balance

            	
              NUMERIC
                (12,2)

            
	
              Mortgagor
                Recoverable Corporate Expense Balance

            	
              NUMERIC
                (12,2)

            
	
              Non-Recoverable
                Corporate Expense Balance

            	
              NUMERIC
                (12,2)

            
	
              HUD
                235 Loan Status

            	
              VARCHAR
                (2)

            
	
              HUD
                235 Balance

            	
              NUMERIC
                (12,2)

            
	
              Late
                Charge Balance

            	
              NUMERIC
                (12,2)

            
	
              Buydown
                Loan Status

            	
              VARCHAR
                (2)

            
	
              Monthly
                Buydown Amount

            	
              NUMERIC
                (12,2)

            
	
              Monthly
                Buydown Funds Balance

            	
              NUMERIC
                (12,2)

            
	
              Prepayment
                Penalty Amount Waived

            	
              NUMERIC
                (12,2)

            
	
              Prepayment
                Penalty Waived Reason Code

            	
              VARCHAR
                (3)

            
	
              Material
                Breach Status

            	
              VARCHAR
                (3)

            
	
              Material
                Breach Code

            	
              VARCHAR
                (3)

            
	
              Prefunding
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              3rd
                Party
                Recoverable Expenses

            	
              NUMERIC
                (12,2)

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      F

     

    EMC
      FORM
– REMITTANCE SUMMARY REPORT

    

    Remittance
      Summary Report:  Provides summary data at a deal
      (investor/category) level regarding the remittance that will be submitted to
      EMC
      Master Servicing and contains the following data fields in the order
      below:

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              Deal

            	
              VARCHAR
                (15)

            
	
              Investor

            	
              VARCHAR
                (5)

            
	
              Category

            	
              VARCHAR
                (5)

            
	
              Principal
                Remitted

            	
              NUMERIC
                (15,2)

            
	
              Curtailments
                Remitted

            	
              NUMERIC
                (15,2)

            
	
              Curtailment
                Adjustments Remitted

            	
              NUMERIC
                (15,2)

            
	
              Liquidation
                Proceeds Remitted

            	
              NUMERIC
                (15,2)

            
	
              Principal
                Not Advanced (stop advance loans only)

            	
              NUMERIC
                (15,2)

            
	
              Principal
                Amounts Called/Collapsed

            	
              NUMERIC
                (15,2)

            
	
              Total
                Principal Remitted

            	
              NUMERIC
                (15,2)

            
	
              Interest
                Remitted

            	
              NUMERIC
                (15,2)

            
	
              PMI
                Premiums Remitted

            	
              NUMERIC
                (15,2)

            
	
              Soldiers
                and Sailors Difference

            	
              NUMERIC
                (15,2)

            
	
              Net
                Interest Not Advanced

            	
              NUMERIC
                (15,2)

            
	
              Non
                Comp Interest Remitted

            	
              NUMERIC
                (15,2)

            
	
              Prepayment
                Penalties Remitted

            	
              NUMERIC
                (15,2)

            
	
              Total
                Interest Remitted

            	
              NUMERIC
                (15,2)

            
	
              Arrearage
                Amount Remitted

            	
              NUMERIC
                (15,2)

            
	
              Aggregate
                Loss to Trust

              Total
                Manual Adjustments

            	
              NUMERIC
                (15,2)

            
	
              Debt
                Forgiven/ Charged Off

            	
              NUMERIC
                (15,2)

            
	
              Additional
                Fees Collected

            	
              NUMERIC
                (15,2)

            
	
              Total
                Remittance

            	
              NUMERIC
                (15,2)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G

    

    FORM
      OF
      SERVICER CERTIFICATION

    

    Re:           The
      [                      ]
      agreement dated as of
      [                                                      l,
      200[ ] (the “Agreement”), among [IDENTIFY PARTIES]

    

    I,
      ____________________________, the _______________________ of [NAME OF COMPANY]
      (the “Company”), certify to [the Purchaser], [the Depositor], and the [Master
      Servicer] [Trustee], and their officers, with the knowledge and intent that
      they
      will rely upon this certification, that:

     

    I
      have
      reviewed the servicer compliance statement of the Company 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 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 the Company during 200[ ] that were delivered by the
      Company to the [Depositor] [Master Servicer] [Trustee] pursuant to the Agreement
      (collectively, the “Company Servicing Information”);

     

    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;

     

    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] [Master
      Servicer] [Trustee];

     

    I
      am
      responsible for reviewing the activities performed by the Company as servicer
      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
      Company has fulfilled its obligations under the Agreement in all material
      respects; and

     

    The
      Compliance Statement required to be delivered by the Company pursuant to this
      Agreement, and the Servicing Assessment and Attestation Report required to
      be
      provided by the Company and by any Subservicer and Subcontractor pursuant to
      the
      Agreement, have been provided to the [Depositor] [Master
      Servicer].  Any material instances of noncompliance described in such
      reports have been disclosed to the [Depositor] [Master Servicer]. Any material
      instance of noncompliance with the Servicing Criteria has been disclosed in
      such
      reports.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H

    

    SUMMARY
      OF REGULATION AB

    SERVICING
      CRITERIA

    

    NOTE:
      This Exhibit H is provided for convenience of reference only.  In the
      event of a conflict or inconsistency between the terms of this Exhibit H and
      the
      text of Regulation AB, the text of Regulation AB, its adopting release and
      other
      public statements of the SEC shall control.

     

    Item
      1122(d)

     

    
      	
              (a)      
                 

            	
              General
                servicing considerations.

            

    

     

    (1)  Policies
      and procedures are instituted to monitor any performance or other triggers
      and
      events of default in accordance with the transaction agreements.

     

    (2)  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.

     

    (3)  Any
      requirements in the transaction agreements to maintain a back-up servicer for
      the mortgage loans are maintained.

     

    (4)  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.

     

    
      	
              (b)     
                 

            	
              Cash
                collection and administration.

            

    

     

    (1)  Payments
      on mortgage loans 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.

     

    (2)  Disbursements
      made via wire transfer on behalf of an obligor or to an
      investor are made only by authorized personnel.

     

    (3)  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.

     

    (4)  The
      related accounts for the transaction, such as cash reserve accounts or accounts
      established as a form of overcollateralization, are separately maintained (e.g.,
      with respect to commingling of cash) as set forth in the transaction
      agreements.

     

    (5)  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.

     

    (6)  Unissued
      checks are safeguarded so as to prevent unauthorized access.

     

    (7)  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.

     

    
      	
              (c)     
                 

            	
              Investor
                remittances and reporting.

            

    

     

    (1)  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
      mortgage loans serviced by the Servicer.

     

    (2)  Amounts
      due to investors are allocated and remitted in accordance with timeframes,
      distribution priority and other terms set forth in the transaction
      agreements.

     

    (3)  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.

     

    (4)  Amounts
      remitted to investors per the investor reports agree with cancelled checks,
      or
      other form of payment, or custodial bank statements.

     

    
      	
              (d)     
                 

            	
              Mortgage
                Loan administration.

            

    

     

    (1)  Collateral
      or security on mortgage loans is maintained as required by the transaction
      agreements or related mortgage loan documents.

     

    (2)  Mortgage
      loan and related documents are safeguarded as required by the transaction
      agreements.

     

    (3)  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.

     

    (4)  Payments
      on mortgage loans, including any payoffs, made in accordance with the related
      mortgage loan 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 mortgage loan
      documents.

     

    (5)  The
      Servicer’s records regarding the mortgage loans agree with the Servicer’s
      records with respect to an obligor’s unpaid principal balance.

     

    (6)  Changes
      with respect to the terms or status of an obligor’s mortgage loans (e.g., loan
      modifications or re-agings) are made, reviewed and approved by authorized
      personnel in accordance with the transaction agreements and related mortgage
      loan documents.

     

    (7)  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.

     

    (8)  Records
      documenting collection efforts are maintained during the period a mortgage
      loan
      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 mortgage loans including, for example, phone calls,
      letters and payment rescheduling plans in cases where delinquency is deemed
      temporary (e.g., illness or unemployment).

     

    (9)  Adjustments
      to interest rates or rates of return for mortgage loans with variable rates
      are
      computed based on the related mortgage loan documents.

     

    (10)  Regarding
      any funds held in trust for an obligor (such as escrow accounts):  (A)
      such funds are analyzed, in accordance with the obligor’s mortgage loan
      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 mortgage loan documents and state laws;
      and (C) such funds are returned to the obligor within 30 calendar days of full
      repayment of the related mortgage loans, or such other number of days specified
      in the transaction agreements.

     

    (11)  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.

     

    (12)  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.

     

    (13)  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.

     

    (14)  Delinquencies,
      charge-offs and uncollectable accounts are recognized and recorded in accordance
      with the transaction agreements.

     

    (15)  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.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

    

    SUMMARY
      OF APPLICABLE REGULATION AB REQUIREMENTS

    

    NOTE:
      This Exhibit I is provided for convenience of reference only.  In the
      event of a conflict or inconsistency between the terms of this Exhibit I and
      the
      text of Regulation AB, the text of Regulation AB, its adopting release and
      other
      public statements of the SEC shall control.

     

    Item
      1108(b) and (c)

     

    Provide
      the following information with respect to each servicer that will service,
      including interim service, 20% or more of the mortgage loans in any loan group
      in the securitization issued in the Pass-Through Transfer:

     

    -a
      description of the Owner’s form of organization;

    

    -a
      description of how long the Servicer has been servicing residential mortgage
      loans; a general discussion of the Servicer’s experience in servicing assets of
      any type as well as a more detailed discussion of the Servicer’s experience in,
      and procedures for the servicing function it will perform under this Agreement
      and any Reconstitution Agreements; information regarding the size, composition
      and growth of the Servicer’s portfolio of mortgage loans of the type similar to
      the Mortgage Loans and information on factors related to the Servicer that
      may
      be material to any analysis of the servicing of the Mortgage Loans or the
      related asset-backed securities, as applicable, including whether any default
      or
      servicing related performance trigger has occurred as to any other
      securitization due to any act or failure to act of the Servicer, whether any
      material noncompliance with applicable servicing criteria as to any other
      securitization has been disclosed or reported by the Servicer, and the extent
      of
      outsourcing the Servicer uses;

    

    -a
      description of any material changes to the Servicer’s policies or procedures in
      the servicing function it will perform under this Agreement and any
      Reconstitution Agreements for mortgage loans of the type similar to the Mortgage
      Loans during the past three years;

    

    -information
      regarding the Servicer’s financial condition to the extent that there is a
      material risk that the effect on one or more aspects of servicing resulting
      from
      such financial condition could have a material impact on the performance of
      the
      securities issued in the Pass-Through Transfer, or on servicing of mortgage
      loans of the same asset type as the Mortgage Loans;

    

    -any
      special or unique factors involved in servicing loans of the same type as the
      Mortgage Loans, and the Servicer’s processes and procedures designed to address
      such factors;

    

    -statistical
      information regarding principal and interest advances made by the Servicer
      on
      the Mortgage Loans and the Servicer’s overall servicing portfolio for the past
      three years; and

    

    -the
      Owner’s process for handling delinquencies, losses, bankruptcies and recoveries,
      such as through liquidation of REO Properties, foreclosure, sale of the Mortgage
      Loans or workouts.

    

    Item
      1117

    

    -describe
      any legal proceedings pending against the Servicer or against any of its
      property, including any proceedings known to be contemplated by governmental
      authorities, that may be material to the holders of the securities issued in
      the
      Pass-Through Transfer.

    

    Item
      1119(a)

     

    -describe
      any affiliations of the Servicer, each other originator of the Mortgage Loans
      and each Subservicer with the sponsor, depositor, issuing entity, trustee,
      any
      originator, any other servicer, any significant obligor, enhancement or support
      provider or any other material parties related to the Pass-Through
      Transfer.

    

    Item
      1119(b)

     

    -describe
      any business relationship, agreement, arrangement, transaction or understanding
      entered into outside of the ordinary course of business or on terms other than
      those obtained in an arm’s length transaction with an unrelated third party,
      apart from the Pass-Through Transfer, between the Servicer, each other
      originator of the Mortgage Loans and each Subservicer, or their respective
      affiliates, and the sponsor, depositor or issuing entity or their respective
      affiliates, that exists currently or has existed during the past two years,
      that
      may be material to the understanding of an investor in the securities issued
      in
      the Pass-Through Transfer.

    

    Item
      1119(c)

     

    -describe
      any business relationship, agreement, arrangement, transaction or understanding
      involving or relating to the Mortgage Loans or the Pass-Through Transfer,
      including the material terms and approximate dollar amount involved, between
      the
      Servicer, each other originator of the Mortgage Loans and each Subservicer,
      or
      their respective affiliates and the sponsor, depositor or issuing entity or
      their respective affiliates, that exists currently or has existed during the
      past two years.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      J

    

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

    

    SERVICING
      CRITERIA TO BE ADDRESSED

    IN
      ASSESSMENT OF COMPLIANCE

    (RMBS
      unless otherwise noted)

    

    Key:

    X
      - obligation

     

    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.

     

    
      	
              RegAB
                Reference

            	
              Servicing
                Criteria

            	
              Servicers

            

    

    

    
      	 	
              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

            
	
              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

            
	
              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

            
	 	
              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

            
	
              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

            
	
              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

            
	
              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

            
	
              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

            
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	
              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

            
	 	
              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

            
	
              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

            
	
              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

            
	
              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

            
	 	
              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

            
	
              1122(d)(4)(ii)

            	
              Pool
                assets  and related documents are safeguarded as required by the
                transaction agreements

            	
              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

            
	
              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

            
	
              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.

            	 

    

    

    

    
      	 	 	  [NAME
              OF OWNER] [NAME OF SUBSERVICER]
	 	 	 
	 	 	 Date:      
               _________________________
	 	 	 
	 	 	 By:           _________________________
	 	 	 Name:
	 	 	 Title:
	 	 	 
	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      K

    

    EMC
      FORM
– DEFAULT OVERVIEW REPORT

    

    Default
      Overview Report:  Provides loan level detail regarding the
      defaulted loans that are being serviced and reported to EMC Master
      Servicing.  The report contains the following data fields in the order
      below:

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              Servicer
                loan number

            	
              VARCHAR
                (15)

            
	
              SBO
                loan number

            	
              VARCHAR
                (9)

            
	
              Zip
                Code

            	
              VARCHAR
                (5)

            
	
              Original
                loan amount

            	
              NUMERIC
                (12,2)

            
	
              Original
                value amount

            	
              NUMERIC
                (12,2)

            
	
              Origination
                date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Loan
                type

            	
              VARCHAR
                (2)

            
	
              Actual
                due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Current
                loan amount

            	
              NUMERIC
                (12,2)

            
	
              Corporate
                expense balance

            	
              NUMERIC
                (12,2)

            
	
              Escrow
                balance/advance balance

            	
              NUMERIC
                (12,2)

            
	
              Suspense
                balance

            	
              NUMERIC
                (12,2)

            
	
              Restricted
                escrow balance

            	
              NUMERIC
                (12,2)

            
	
              Current
                Value date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Current
                value amount

            	
              NUMERIC
                (12,2)

            
	
              Current
                value source

            	
              VARCHAR
                (15)

            
	
              VA
                LGC/ FHA Case number

            	
              VARCHAR
                (15)

            
	
              %
                of MI coverage

            	
              NUMERIC
                (7,7)

            
	
              MI
                certificate number

            	
              VARCHAR
                (15)

            
	
              LPMI
                Cost

            	
              NUMERIC
                (7,7)

            
	
              Occupancy
                status

            	
              VARCHAR
                (1)

            
	
              First
                vacancy date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Property
                condition

            	
              VARCHAR
                (2)

            
	
              Property
                type

            	
              VARCHAR
                (2)

            
	
              Delinquency
                flag

            	
              VARCHAR
                (2)

            
	
              Reason
                for default

            	
              VARCHAR
                (2)

            
	
              FNMA
                action code

            	
              VARCHAR
                (3)

            
	
              FNMA
                delinquency reason code

            	
              VARCHAR
                (3)

            
	
              Loss
                mit flag

            	
              VARCHAR
                (2)

            
	
              Loss
                mit type

            	
              VARCHAR
                (2)

            
	
              Loss
                mit approval date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Loss
                mit removal date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                first due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                next due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                plan broken/reinstated/closed date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                plan created date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Foreclosure
                flag

            	
              VARCHAR
                (2)

            
	
              Foreclosure
                attorney referral date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                first legal date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                FC sale scheduled

            	
              DATE
                (MM/DD/YYYY)

            
	
              Foreclosure
                actual sale date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                redemption end date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                eviction complete date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                eviction start date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Bankruptcy
                flag

            	
              VARCHAR
                (2)

            
	
              Actual
                bankruptcy start date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Bankruptcy
                chapter

            	
              VARCHAR
                (2)

            
	
              Bankruptcy
                Case Number

            	
              VARCHAR
                (15)

            
	
              Post
                petition due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                discharge date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                relief/dismissal granted

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                MI claim filed date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                MI claim amount filed

            	
              NUMERIC
                (12,2)

            
	
              MI
                claim amount paid

            	
              NUMERIC
                (12,2)

            
	
              MI
                claim funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Title
                approval letter received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Title
                package HUD/VA date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                27011A transmitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                Part A funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                27011 B transmitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                Part B funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                NOE submitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                first funds received amount

            	
              NUMERIC
                (12,2)

            
	
              VA
                first funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                claim funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                claim submitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                claims funds received amount

            	
              NUMERIC
                (12,2)

            
	
              REO
                flag

            	
              VARCHAR
                (2)

            
	
              REO
                repaired value

            	
              NUMERIC
                (12,2)

            
	
              REO
                value (as is)

            	
              NUMERIC
                (12,2)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              REO
                value date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                value source

            	
              VARCHAR
                (15)

            
	
              REO
                original list date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                original list price

            	
              NUMERIC
                (12,2)

            
	
              REO
                list price adjustment amount

            	
              NUMERIC
                (12,2)

            
	
              REO
                list price adjustment date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                REO offer received

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                REO offer accepted

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                scheduled close date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                actual closing date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                sales price

            	
              NUMERIC
                (12,2)

            
	
              REO
                net sales proceeds

            	
              NUMERIC
                (12,2)

            
	
              Estimated
                loss

            	
              NUMERIC
                (12,2)

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      L

    

    EMC
      FORM
– DELINQUENCY SUMMARY REPORT

    

    Delinquency
      Summary Report:  Provides summary data at the servicer investor
      level regarding loan performance that will be submitted to EMC Master Servicing
      and contains the following data fields in the order below:

    
      	
              Field

            	
              Field
                Description

            
	
              Servicer
                Investor Number

               

            	
              VARCHAR
                (5)

            
	
              Mortgage
                Group

               

            	
              VARCHAR
                (1)

            
	
              Performance
                type (Current, 30 days, 60 days, 90+ days, Foreclosure, Bankruptcy
                or
                PIF)

               

            	
              VARCHAR
                (6)

            
	
              Count
                of Loans

               

            	
              NUMERIC
                (10,0)

            
	
              Percent
                of Investor Number

               

            	
              NUMERIC
                (7,7)

            
	
              Deal
                UPB

               

            	
              NUMERIC
                (14,2)

            
	
              Percent
                of Deal UPB

               

            	
              NUMERIC
                (7,7)

            
	
              Arrears
                Balance

               

            	
              NUMERIC
                (14,2)

            
	
              Percent
                of Arrears Balance

               

            	
              NUMERIC
                (7,7)

            
	
              Foreclosure
                Quick Sale

               

            	
              NUMERIC
                (12,2)

            
	
              REO
                Book Value

               

            	
              NUMERIC
                (12,2)

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      M

    

    EMC
      FORM
      - CALCULATION OF GAIN-LOSS DELINQUENT LOANS

    

    EMC
      Master Servicing Calculation of Gain/Loss on Delinquent Loan
      Worksheet

     

    Date:                                

     

    
      	
              Prepared
                By

               

            	
              Phone
                Number

               

            	
              Email
                Address

               

            
	 	 	 

    

     

    
      	
              Servicer
                Loan Number

               

            	
              Servicer
                Address

               

            	
              EMC
                Loan Number

               

            
	 	 	 

    

     

    
      	
              Borrower
                Name

               

            	
              Property
                Address

               

            
	 	 

    

     

    
      	
              Liquidation
                Type

               

            	
              REO

               

            	
              Third
                Party

               

            	
              Short
                Sale

               

            	
              Charge
                off

               

            	
              Deed
                In Lieu

               

            
	 	 	 	 	 	 

    

     

    Has
      this loan been previously
      modified?                                                                                                            Yes                                No

     

    Has
      this loan been crammed down in a
      bankruptcy?                                                                                        Yes                              
No

     

    If
“Yes”,
      provide amount _______________________________

     

    
      	
                 Liquidation
                and Acquisition Expenses:

            

    

     

     Amounts
      requiring Amortization Schedule for backup:

     

    
      	
              Actual
                Unpaid Principal Balance of Mortgage Loan

               

            	 
	
              Interest
                Accrued at Net Rate Less Servicing Fees

               

            	 
	
              Accrued
                Servicing Fees

               

            	 

    

     

    Amounts
      requiring Additional backup:

     

    
      	
              Attorney’s
                Fees

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              Attorney’s
                Costs

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              Taxes

               

            	
              Payment
                history showing disbursements

               

            	 
	
              Property
                Maintenance

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              Property
                Inspection

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              PMI/Hazard
                Insurance Premiums

               

            	
              Payment
                history showing disbursements

               

            	 
	
              Utility
                Expenses

               

            	
              Payment
                history showing disbursements

               

            	 
	
              Appraisal/BPO
                Expenses

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              HOA
                Dues

               

            	
              Payment
                history showing disbursements

               

            	 
	
              Cash
                For Keys

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              Miscellaneous
                (itemized)

               

            	
              Requires
                Itemization and supporting detail

               

            	 
	
              Total
                Expenses

               

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

               

            	 

    

     

    
      	
               

            	
              Credits
                to Loan:

            

    

     

    
      	
              Escrow
                Balance/Advance

               

            	
              Payment
                history showing disbursements and ending balance

               

            	 
	
              Rental
                Receipts

               

            	
              Payment
                history showing application of funds to loan

               

            	 
	
              Hazard
                Claim Proceeds

               

            	
              Payment
                history showing credit to account

               

            	 
	
              PMI
                Funds

               

            	
              EOB
                document

               

            	 
	
              Government
                Insurance Funds (Part A Funds)

               

            	
              EOB
                document

               

            	 
	
              REO
                Proceeds

               

            	
              HUD
                1 Settlement Statement

               

            	 
	
              Government
                Insurance Funds (Part B Funds)

               

            	
              EOB
                document

               

            	 
	
              Pool
                Insurance Proceeds

               

            	
              Payment
                history showing credit to account

               

            	 
	
              Other
                Credits (itemized)

               

            	
              Payment
                history showing credit to account

               

            	 
	
              Total
                Credits

               

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

               

            	 

    

     

    
      	
              Total
                Realized Loss (or Amount of Gain)

            	
              $________________

            

    

    

    NOTE:  Do
      not combine or net remit items.  All expenses and credits should be
      documented individually.   Claim packages are due by the fifth
      business day of the month following receipt of liquidation
      proceeds.  Late claims may result in delayed claim
      payment.  The Servicer is responsible to remit all funds pending loss
      approval and /or resolution of any disputed items.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      N

    

    EMC
      FORM
      - MODIFIED LOANS REPORT

    

    Modified
      Loans Report:   Provides loan level data regarding all loans that
      the Servicer has modified with the first modified payment due within thirty
      days
      following the end of the reporting cycle.  The report contains the
      following data fields in the order below:

    

    
      	
              Field
                Description

            	
              Field
                Description

            
	
              Loan

            	
              VARCHAR
                (15)

            
	
              Investor

            	
              VARCHAR
                (5)

            
	
              Original
                Category

            	
              VARCHAR
                (5)

            
	
              Current
                Category

            	
              VARCHAR
                (5)

            
	
              Stop
                Adv Flag

            	
              VARCHAR
                (3)

            
	
              Modified
                Due Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Mod
                Loan Curtailment

            	
              NUMERIC
                (15,2)

            
	
              Mod
                Loan Curt Adjustment

            	
              NUMERIC
                (15,2) 

            
	
              Principal
                Advanced Capped

            	
              NUMERIC
                (15,2) 

            
	
              Net
                Interest Advanced Capped

            	
              NUMERIC
                (15,2)

            
	
              Service
                Fee Advanced Capped

            	
              NUMERIC
                (15,2)

            
	
              Third
                Party Bal Capped

            	
              NUMERIC
                (15,2)

            
	
              Amount
                of Other Capped

            	
              NUMERIC
                (15,2)

            
	
              Borrower
                Interest Contribution

            	
              NUMERIC
                (15,2)

            
	
              Borrower
                Fee Code Arrearage Contribution

            	
              NUMERIC
                (15,2)

            
	
              Borrower
                Principal Contribution

            	
              NUMERIC
                (15,2)

            
	
              Amt
                Forgiven

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Delq Prin Bal

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Delq Int Bal

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Pre Prin Bal

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Pre Int Bal

            	
              NUMERIC
                (15,2)

            
	
              Excess
                Int Adjust

            	
              NUMERIC
                (15,2)

            
	
              Excess
                Interest on Mod

            	
              NUMERIC
                (15,2)

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      O

    

    EMC
      FORM
      - CLAIMS SUBMITTED REPORT

    

    Claims
      Submitted Report:  Provides loan level detail regarding claims
      submitted by the servicer’s investor number that will be submitted to EMC Master
      Servicing and contains the following data fields in the order
      below:

    

    
      	
              Field

            	
              Field
                Description

            
	
              Servicer
                Investor Number

               

            	
              VARCHAR
                (5)

            
	
              Servicer
                Investor Category

               

            	
              VARCHAR
                (5)

            
	
              Loan
                Number

               

            	
              VARCHAR
                (15)

            
	
              Mortgage
                Group

               

            	
              VARCHAR
                (1)

            
	
              Liquidation
                Type

               

            	
              VARCHAR
                (1)

            
	
              Escrow
                Balance or Advance Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Corporate
                Expense Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Restricted
                Escrow Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Replacement
                Reserve Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Suspense
                Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Third
                Party Expense Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Charge
                Off Amount

               

            	
              NUMERIC
                (12,2)

            
	
              Side
                Note Collections

               

            	
              NUMERIC
                (12,2)

            
	
              Claim
                Amount Submitted

               

            	
              NUMERIC
                (12,2)

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      P

    

    EMC
      FORM
      - LOSS SEVERITY SUMMARY REPORT

    

    Loss
      Severity Summary Report:  Provides summary data at the deal level
      regarding loss severity that will be submitted to EMC Master Servicing and
      contains the following data fields in the order below:

    

    
      	
              Field

            	
              Field
                Description

               

            
	
              Month
                End

            	
              DATE
                (MM/DD/YYYY)

            
	
              Deal
                Name

            	
              VARCHAR
                (15)

            
	
              Servicer
                Investor Number

            	
              VARCHAR
                (5)

            
	
              Servicer
                Investor Category

            	
              VARCHAR
                (5)

            
	
              Mortgage
                Group

            	
              VARCHAR
                (1)

            
	
              Loan
                Number

            	
              VARCHAR
                (15)

            
	
              Liquidation
                Type

            	
              VARCHAR
                (1)

            
	
              Loan
                Due Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              PIF
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Gross
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Net
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Service
                Fee Rate

            	
              NUMERIC
                (7,7)

            
	
              P
                & I Constant

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Beginning Balance

            	
              NUMERIC
                (12,2)

            
	
              Arrearage
                Balance

            	
              NUMERIC
                (12,2)

            
	
              Total
                Legal and Other Expenses

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Advanced Interest

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Liquidated Amount

            	
              NUMERIC
                (12,2)

            
	
              Gross
                Liquidation Proceeds

            	
              NUMERIC
                (12,2)

            
	
              P
                & I Advance Balance

            	
              NUMERIC
                (12,2)

            
	
              Delinquent
                Service Fee

            	
              NUMERIC
                (12,2)

            
	
              Net
                Liquidation Proceeds

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Net Interest

            	
              NUMERIC
                (12,2)

            
	
              Net
                Liquidated Funds Remitted

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss (Gain) Amount

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss (Gain) to Trust

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss (Gain) to Servicer

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss Severity %

            	
              NUMERIC
                (7,7)

            
	
              Total
                Loss Severity % to Trust

            	
              NUMERIC
                (7,7)

            
	
              Total
                Liquidated Remitted

            	
              NUMERIC
                (12,2)

            
	
              Claim
                on Trust Loss

            	
              NUMERIC
                (12,2)

            
	
              Claim
                on Servicer Loss

            	
              NUMERIC
                (12,2)

            
	
              Total
                Claim Amount

            	
              NUMERIC
                (12,2)

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      I-2

    

    NCMC
      SERVICING AGREEMENT

    

    
       

      
 

      EMC
        MORTGAGE CORPORATION

      Purchaser,
        

      

      NATIONAL
        CITY MORTGAGE COMPANY

      Company,

      

      PURCHASE,
        WARRANTIES AND SERVICING AGREEMENT

      Dated
        as
        of October 1, 2001

      

      

      

      

      

      (Fixed
        and Adjustable Rate Mortgage Loans)

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      TABLE
        OF CONTENTS

      

        
          	
                  ARTICLE
                    I

                
	 	 
	
                  Section
                    1.01

                	
                  Defined
                    Terms

                
	 	 
	
                  ARTICLE
                    II

                
	 	 
	
                  Section
                    2.01

                	
                  Agreement
                    to Purchase

                
	
                  Section
                    2.02

                	
                  Purchase
                    Price

                
	
                  Section
                    2.03

                	
                  Servicing
                    of Mortgage Loans

                
	
                  Section
                    2.04

                	
                  Record
                    Title and Possession of Mortgage Files; Maintenance of Servicing
                    Files

                
	
                  Section
                    2.05

                	
                  Books
                    and Records

                
	
                  Section
                    2.06

                	
                  Transfer
                    of Mortgage Loans

                
	
                  Section
                    2.07

                	
                  Delivery
                    of Mortgage Loan Documents

                
	
                  Section
                    2.08

                	
                  Quality
                    Control Procedures

                
	
                  Section
                    2.09

                	
                  Near-term
                    Principal Prepayments; Near Term Payment Defaults

                
	 	 
	
                  ARTICLE
                    III

                
	 	 
	
                  Section
                    3.01

                	
                  Representations
                    and Warranties of the Company

                
	
                  Section
                    3.02

                	
                  Representations
                    and Warranties as to Individual Mortgage Loans

                
	
                  Section
                    3.03

                	
                  Repurchase;
                    Substitution 36

                
	
                  Section
                    3.04

                	
                  Representations
                    and Warranties of the Purchaser

                
	 	 
	
                  ARTICLE
                    IV

                
	 	 
	
                  Section
                    4.01

                	
                  Company
                    to Act as Servicer

                
	
                  Section
                    4.02

                	
                  Collection
                    of Mortgage Loan Payments

                
	
                  Section
                    4.03

                	
                  Realization
                    Upon Defaulted Mortgage Loans

                
	
                  Section
                    4.04

                	
                  Establishment
                    of Custodial Accounts; Deposits in Custodial Accounts

                
	
                  Section
                    4.05

                	
                  Permitted
                    Withdrawals from the Custodial Account

                
	
                  Section
                    4.06

                	
                  Establishment
                    of Escrow Accounts; Deposits in Escrow Accounts

                
	
                  Section
                    4.07

                	
                  Permitted
                    Withdrawals From Escrow Account

                
	
                  Section
                    4.08

                	
                  Payment
                    of Taxes, Insurance and Other Charges; Maintenance of Primary
                    Mortgage
                    Insurance Policies; Collections Thereunder

                
	
                  Section
                    4.09

                	
                  Transfer
                    of Accounts

                
	
                  Section
                    4.10

                	
                  Maintenance
                    of Hazard Insurance

                
	
                  Section
                    4.11

                	
                  Maintenance
                    of Mortgage Impairment Insurance Policy

                
	
                  Section
                    4.12

                	
                  Fidelity
                    Bond, Errors and Omissions Insurance

                
	
                  Section
                    4.13

                	
                  Title,
                    Management and Disposition of REO Property

                
	
                  Section
                    4.14

                	
                  Notification
                    of Maturity Date

                
	 	 
	
                  ARTICLE
                    V

                
	 	 
	
                  Section
                    5.01

                	
                  Distributions

                
	
                  Section
                    5.02

                	
                  Statements
                    to the Purchaser

                
	
                  Section
                    5.03

                	
                  Monthly
                    Advances by the Company

                
	
                  Section
                    5.04

                	
                  Liquidation
                    Reports

                
	 	 
	
                  ARTICLE
                    VI

                
	 	 
	
                  Section
                    6.01

                	
                  Assumption
                    Agreements

                
	
                  Section
                    6.02

                	
                  Satisfaction
                    of Mortgages and Release of Mortgage Files

                
	
                  Section
                    6.03

                	
                  Servicing
                    Compensation

                
	
                  Section
                    6.04

                	
                  Annual
                    Statement as to Compliance

                
	
                  Section
                    6.05

                	
                  Annual
                    Independent Certified Public Accountants’ Servicing
                    Report

                
	
                  Section
                    6.06

                	
                  Purchaser’s
                    Right to Examine Company Records

                
	 	 
	
                  ARTICLE
                    VII

                
	 	 
	
                  Section
                    7.01

                	
                  Company
                    Shall Provide Information as Reasonably Required

                
	 	 
	
                  ARTICLE
                    VIII

                
	 	 
	
                  Section
                    8.01

                	
                  Indemnification;
                    Third Party Claims

                
	
                  Section
                    8.02

                	
                  Merger
                    or Consolidation of the Company

                
	
                  Section
                    8.03

                	
                  Limitation
                    on Liability of the Company and Others

                
	
                  Section
                    8.04

                	
                  Company
                    Not to Assign or Resign

                
	
                  Section
                    8.05

                	
                  No
                    Transfer of Servicing

                
	
                   

                	 
	
                  ARTICLE
                    IX

                
	 	 
	
                  Section
                    9.01

                	
                  Events
                    of Default

                
	
                  Section
                    9.02

                	
                  Waiver
                    of Defaults

                
	 	 
	
                  ARTICLE
                    X

                
	 	 
	
                  Section
                    10.01

                	
                  Termination

                
	 	 
	
                  ARTICLE
                    XI

                
	 	 
	
                  Section
                    11.01

                	
                  Successor
                    to the Company

                
	
                  Section
                    11.02

                	
                  Amendment

                
	
                  Section
                    11.03

                	
                  Recordation
                    of Agreement

                
	
                  Section
                    11.04

                	
                  Governing
                    Law

                
	
                  Section
                    11.05

                	
                  Notices

                
	
                  Section
                    11.06

                	
                  Severability
                    of Provisions

                
	
                  Section
                    11.07

                	
                  Exhibits

                
	
                  Section
                    11.08

                	
                  General
                    Interpretive Principles

                
	
                  Section
                    11.09

                	
                  Reproduction
                    of Documents

                
	
                  Section
                    11.10

                	
                  Confidentiality
                    of Information

                
	
                  Section
                    11.11

                	
                  Recordation
                    of Assignment of Mortgage

                
	
                  Section
                    11.12

                	
                  Assignment
                    by Purchaser

                
	
                  Section
                    11.13

                	
                  No
                    Partnership

                
	
                  Section
                    11.14

                	
                  Execution:
                    Successors and Assigns

                
	
                  Section
                    11.15

                	
                  Entire
                    Agreement

                
	
                  Section
                    11.16

                	
                  No
                    Solicitation

                
	
                  Section
                    11.17

                	
                  Closing

                
	
                  Section
                    11.18

                	
                  Cooperation
                    of Company with
                    Reconstitution

                

        

      

       

      

        
          	
                  EXHIBITS

                	 
	
                  A

                	
                  Contents
                    of Mortgage File

                
	
                  B

                	
                  Custodial
                    Account Letter Agreement

                
	
                  C

                	
                  Escrow
                    Account Letter Agreement

                
	
                  D

                	
                  Form
                    of Assignment, Assumption and Recognition Agreement

                
	
                  E

                	
                  Form
                    of Trial Balance

                
	
                  F

                	
                  [reserved]

                
	
                  G

                	
                  Request
                    for Release of Documents and Receipt

                
	
                  H

                	
                  Company’s
                    Underwriting Guidelines

                
	
                  I

                	
                  Form
                    of Term Sheet

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      This
        is a
        Purchase, Warranties and Servicing Agreement, dated as of October 1, 2001
        and is
        executed between EMC MORTGAGE CORPORATION, as Purchaser (the "Purchaser"),
        and
        NATIONAL CITY MORTGAGE COMPANY (the "Company").

      

      W I T N E

        S S E T H
        :

      

      WHEREAS,
        the Purchaser has heretofore agreed to purchase from the Company and the
        Company
        has heretofore agreed to sell to the Purchaser, from time to time, certain
        Mortgage Loans on a servicing retained basis, pursuant to the terms of this
        Agreement and the related Term Sheet.

      

      WHEREAS,
        each of the Mortgage Loans is secured by a mortgage, deed of trust or other
        security instrument creating a first lien on a residential dwelling located
        in
        the jurisdiction indicated on the Mortgage Loan Schedule, which is annexed
        to
        the related Term Sheet; and

      

      WHEREAS,
        the Purchaser and the Company wish to prescribe the representations and
        warranties of the Company with respect to itself and the Mortgage Loans and
        the
        management, servicing and control of the Mortgage Loans;

      

      NOW,
        THEREFORE, in consideration of the mutual agreements hereinafter set forth,
        and
        for other good and valuable consideration, the receipt and adequacy of which
        is
        hereby acknowledged, the Purchaser and the Company agree as
        follows:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        I

      

      DEFINITIONS

      

      Section
        1.01 Defined
        Terms.

      

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

      

      Accepted
        Servicing Practices:
        With
        respect to any Mortgage Loan, those mortgage servicing practices (including
        collection procedures) of prudent mortgage banking institutions which service
        mortgage loans of the same type as such Mortgage Loan in the jurisdiction
        where
        the related Mortgaged Property is located, and which are in accordance with
        Fannie Mae servicing practices and procedures, for MBS pool mortgages, as
        defined in the Fannie Mae Guides including future updates. 

      

      Adjustment
        Date:
        As to
        each adjustable rate Mortgage Loan, the date on which the Mortgage Interest
        Rate
        is adjusted in accordance with the terms of the related Mortgage
        Note.

      

      Agreement:
        This
        Purchase, Warranties and Servicing Agreement including all exhibits hereto,
        amendments hereof and supplements hereto.

      

      Appraised
        Value:
        With
        respect to any Mortgaged Property, the value thereof as determined by an
        appraisal made for the originator of the Mortgage Loan at the time of
        origination of the Mortgage Loan by an appraiser who met the requirements
        of the
        Company and Fannie Mae. 

      

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

       

      BIF:
        The
        Bank Insurance Fund, or any successor thereto.

      

      Business
        Day:
        Any day
        other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the State
        of
        New York or Ohio, or (iii) a day on which banks in the State of New York
        or Ohio
        are authorized or obligated by law or executive order to be closed.

      

      Closing
        Date:
        With
        respect to any Mortgage Loan, the date stated on the related Term Sheet,
        which
        are expected to be the dates set forth in the related Confirmation.

      

      Code:  The
        Internal Revenue Code of 1986, or any successor statute thereto.

      

      Company: National
        City Mortgage Company, their successors in interest and assigns, as permitted
        by
        this Agreement.

      

      Company's
        Officer's Certificate:
        A
        certificate signed by the Chairman of the Board, President, any Vice President
        or Treasurer of Company stating the date by which Company expects to receive
        any
        missing documents sent for recording from the applicable recording
        office.

      

      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, to the extent not required to be released to a Mortgagor in
        accordance with the terms of the related Mortgage Loan Documents.

      

      Confirmation:
        The
        Trade
        Confirmation Letter between the Purchaser and the Company which relates to
        the
        Mortgage Loans.

      

      Co-op
        Lease:
        With
        respect to a Co-op Loan, the lease with respect to a dwelling unit occupied
        by
        the Mortgagor and relating to the stock allocated to the related dwelling
        unit.

      

      Co-op
        Loan:
        A
        Mortgage Loan secured by the pledge of stock allocated to a dwelling unit
        in a
        residential cooperative housing corporation and a collateral assignment of
        the
        related Co-op Lease.

      

      Current
        Appraised Value: With
        respect to any Mortgaged Property, the value thereof as determined by an
        appraisal made for the Company (by an appraiser who met the requirements
        of the
        Company and Fannie Mae) at the request of a Mortgagor for the purpose of
        canceling a Primary Mortgage Insurance Policy in accordance with federal,
        state
        and local laws and regulations or otherwise made at the request of the Company
        or Mortgagor.

      

      Current
        LTV: The
        ratio
        of the Stated Principal Balance of a Mortgage Loan to the Current Appraised
        Value of the Mortgaged Property.

      

      Custodial
        Account:
        Each
        separate demand account or accounts created and maintained pursuant to Section
        4.04 which shall be entitled "National City Mortgage Company, in trust for
        the
        [Purchaser], Owner of Mortgage Loans" and shall be established in an Eligible
        Account, in the name of the Person that is the "Purchaser" with respect to
        the
        related Mortgage Loans.

       

      Custodian:
        With
        respect to any Mortgage Loan, the entity stated on the related Term Sheet,
        and
        its successors and assigns, as custodian for the Purchaser.

      

      Cut-off
        Date:
        With
        respect to any Mortgage Loan, the date stated on the related Term Sheet.
        

      

      Determination
        Date:
        The
        15th day (or if such 15th day is not a Business Day, the Business Day
        immediately preceding such 15th day) of the month of the related Remittance
        Date.

      

      Due
        Date:
        The day
        of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive
        of any days of grace, which is the first day of the month.

      

      Due
        Period:
        With
        respect to any Remittance Date, the period commencing on the second day of
        the
        month preceding the month of such Remittance Date and ending on the first
        day of
        the month of the Remittance Date.

      

      Eligible
        Account:
        An
        account established and maintained: (i) within FDIC insured accounts created,
        maintained and monitored by the Company so that all funds deposited therein
        are
        fully insured, or (ii) as
        a trust
        account with the corporate trust department of a depository institution or
        trust
        company organized under the laws of the United States of America or any one
        of
        the states thereof or the District of Columbia which is not affiliated with
        the
        Company (or any sub-servicer) or (iii) with an entity which is an institution
        whose
        deposits are insured by the FDIC, the unsecured and uncollateralized long-term
        debt obligations of which shall be rated “A2” or higher by Moody’s and “A” or
        higher by either Standard & Poor’s or Fitch, Inc. or
        one of
        the two highest short-term ratings by any applicable Rating Agency, and which
        is
        either (a) a federal savings association duly organized, validly existing
        and in
        good standing under the federal banking laws, (b) an institution duly organized,
        validly existing and in good standing under the applicable banking laws of
        any
        state, (c) a national banking association under the federal banking laws,
        or (d)
        a principal subsidiary of a bank holding company,
        or (iv)
        if ownership of the Mortgage Loans is evidenced by mortgaged-backed securities,
        the equivalent required ratings of each Rating Agency, and held such that
        the
        rights of the Purchaser and the owner of the Mortgage Loans shall be fully
        protected against the claims of any creditors of the Company (or any
        sub-servicer) and of any creditors or depositors of the institution in which
        such account is maintained or (v) in a separate non-trust account without
        FDIC
        or other insurance in an Eligible Institution. In the event that a Custodial
        Account is established pursuant to clause (iii), (iv) or (v) of the preceding
        sentence, the Company shall provide the Purchaser with written notice on
        the
        Business Day following the date on which the applicable institution fails
        to
        meet the applicable ratings requirements.

      

      Eligible
        Institution:
        National City Bank Ohio, or an institution having (i) the highest short-term
        debt rating, and one of the two highest long-term debt ratings of each Rating
        Agency; or (ii) with respect to any Custodial Account, an unsecured long-term
        debt rating of at least one of the two highest unsecured long-term debt ratings
        of each Rating Agency.

      

      Equity
        Take-Out Refinanced Mortgage Loan:
        A
        Refinanced Mortgage Loan the proceeds of which were in excess of the outstanding
        principal balance of the existing mortgage loan as defined in the Fannie
        Mae
        Guide(s). 

      

      Escrow
        Account:
        Each
        separate trust account or accounts created and maintained pursuant to Section
        4.06 which shall be entitled " National City Mortgage Company, in trust for
        the
        [Purchaser], Owner of Mortgage Loans, and various Mortgagors" and shall be
        established in an Eligible Account, in the name of the Person that is the
        "Purchaser" with respect to the related Mortgage Loans.

      

      Escrow
        Payments:
        With
        respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
        assessments, water rates, sewer rents, municipal charges, mortgage insurance
        premiums, fire and hazard insurance premiums, condominium charges, and any
        other
        payments required to be escrowed by the Mortgagor with the mortgagee pursuant
        to
        the Mortgage or any other document.

      

      Event
        of Default:
        Any one
        of the conditions or circumstances enumerated in Section 9.01.

      

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

      

      Fannie
        Mae Guide(s):
        The
        Fannie Mae Selling Guide and the Fannie Mae Servicing Guide and all amendments
        or additions thereto.

      

      FDIC:
        The
        Federal Deposit Insurance Corporation, or any successor thereto.

      

      FHLMC:
        The
        Federal Home Loan Mortgage Corporation, or any successor thereto.

      

      FHLMC
        Guide:
        The
        FHLMC Single Family Seller/Servicer Guide and all amendments or additions
        thereto.

      

      Fidelity
        Bond:
        A
        fidelity bond to be maintained by the Company pursuant to Section
        4.12.

      

      FIRREA:
        The
        Financial Institutions Reform, Recovery, and Enforcement Act of
        1989.

      

      GAAP:
        Generally accepted accounting principles, consistently applied.

      

      HUD:
        The
        United States Department of Housing and Urban Development or any
        successor.

      

      Index:
        With
        respect to any adjustable rate Mortgage Loan, the index identified on the
        Mortgage Loan Schedule and set forth in the related Mortgage Note for the
        purpose of calculating the interest rate thereon.

      

      Initial
        Rate Cap: As
        to
        each adjustable rate Mortgage Loan, where applicable, the maximum increase
        or
        decrease in the Mortgage Interest Rate on the first Adjustment
        Date.

      

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

      

      Lender
        Primary Mortgage Insurance Policy: Any
        Primary Mortgage Insurance Policy for which premiums are paid by the
        Company.

      

      Lender
        Paid Mortgage Insurance Rate:
        The
        Lender Paid Mortgage Insurance Rate shall be a rate per annum equal to the
        percentage shown on the Mortgage Loan Schedule.

      

      Lifetime
        Rate Cap:
        As to
        each Mortgage Loan, the maximum Mortgage Interest Rate over the term of such
        Mortgage Loan. 

      

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

      

      Loan-to-Value
        Ratio or LTV:
        With
        respect to any Mortgage Loan, the ratio of the original outstanding principal
        amount of the Mortgage Loan, to (i) the Appraised Value of the Mortgaged
        Property as of the Origination Date with respect to a Refinanced Mortgage
        Loan,
        and (ii) the lesser of the Appraised Value of the Mortgaged Property as of
        the
        Origination Date or the purchase price of the Mortgaged Property with respect
        to
        all other Mortgage Loans.

      

      Margin:
        With
        respect to each adjustable rate Mortgage Loan, the fixed percentage amount
        set
        forth in each related Mortgage Note which is added to the Index in order
        to
        determine the related Mortgage Interest Rate, as set forth in the Mortgage
        Loan
        Schedule.

      

      Monthly
        Advance:
        The
        aggregate of the advances made by the Company on any Remittance Date pursuant
        to
        Section 5.03.

      

      Monthly
        Payment:
        The
        scheduled monthly payment of principal and interest on a Mortgage Loan which
        is
        payable by a Mortgagor under the related Mortgage Note.

      

      Mortgage:
        The
        mortgage, deed of trust or other instrument securing a Mortgage Note which
        creates a first lien on an unsubordinated estate in fee simple in real property
        securing the Mortgage Note.

      

      Mortgage
        File:
        The
        mortgage documents pertaining to a particular Mortgage Loan which are specified
        in Exhibit A hereto and any additional documents required to be added to
        the
        Mortgage File pursuant to this Agreement.

      

      Mortgage
        Impairment Insurance Policy:
        A
        mortgage impairment or blanket hazard insurance policy as required by Section
        4.11.

      

      Mortgage
        Interest Rate:
        The
        annual rate at which interest accrues on any Mortgage Loan, which may be
        adjusted from time to time for an adjustable rate Mortgage Loan, in accordance
        with the provisions of the related Mortgage Note.

      

      Mortgage
        Loan:
        An
        individual mortgage loan which is the subject of this Agreement, each Mortgage
        Loan originally sold and subject to this Agreement being identified on the
        Mortgage Loan Schedule attached to the related Term Sheet, which Mortgage
        Loan
        includes without limitation the Mortgage File, the Monthly Payments, Principal
        Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
        REO Disposition Proceeds, 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 Documents:
        The
        documents listed in
        Exhibit A.

      

      Mortgage
        Loan Remittance Rate:
        With
        respect to each Mortgage Loan, the annual rate of interest remitted to the
        Purchaser, which shall be equal to the Mortgage Interest Rate minus the
        Servicing Fee Rate minus the Lender Paid Mortgage Insurance Rate, if
        any.

      

      Mortgage
        Loan Schedule:
        The
        schedule of Mortgage Loans annexed to the related Term Sheet, such schedule
        setting forth the following information with respect to each Mortgage Loan
        in
        the related Mortgage Loan Package:

      

      (1) the
        Company's Mortgage Loan identifying number;

      

      (2) the
        Mortgagor's first and last name;

      

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

      

      (4) a
        code
        indicating whether the Mortgaged Property is owner-occupied, a second home
        or an
        investor property;

      

      (5) the
        type
        of residential property constituting the Mortgaged Property;

      

      
        (6)
          the
          original months to maturity of the Mortgage Loan;

      

      

      (7)
        the
        remaining months to maturity from the related Cut-off Date, based on the
        original amortization schedule and, if different, the maturity expressed
        in the
        same manner but based on the actual amortization schedule;

      

      (8) the
        Sales
        Price, if applicable, Appraised Value and Loan-to-Value Ratio, at
        origination;

      

      (9) the
        Mortgage Interest Rate as of origination and as of the related Cut-off Date;
        with respect to each adjustable rate Mortgage Loan, the initial Adjustment
        Date,
        the next Adjustment Date immediately following the related Cut-off Date,
        the
        Index, the Margin, the Initial Rate Cap, if any, Periodic Rate Cap, if any,
        minimum Mortgage Interest Rate under the terms of the Mortgage Note and the
        Lifetime Rate Cap;

      

      (10) the
        Origination Date of the Mortgage Loan;

      

      (11) the
        stated maturity date;

      

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

      

      (13) the
        amount of the Monthly Payment as of the related Cut-off Date;

      

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

      

      (15) the
        scheduled Stated Principal Balance of the Mortgage Loan as of the close of
        business on the related Cut-off Date, after deduction of payments of principal
        due on or before the related Cut-off Date whether or not collected;

      

      (16)
         a
        code
        indicating the purpose of the Mortgage Loan (i.e., purchase, rate and term
        refinance, equity take-out refinance); 

      

      (17)
         a
        code
        indicating the documentation style (i.e. full, alternative, etc.); 

      

      (18) the
        number of times during the twelve (12) month period preceding the related
        Closing Date that any Monthly Payment has been received after the month of
        its
        scheduled due date;

      

      (19) the
        date
        on which the first payment is or was due; 

      

      
        (20)
          a
          code
          indicating whether or not the Mortgage Loan is the subject of a Primary
          Mortgage
          Insurance Policy and
          the
          name of the related insurance carrier;
          

      

      

      
        (21)
          a
          code
          indicating whether or not the Mortgage Loan is the subject of a Lender
          Primary
          Mortgage Insurance Policy and
          the
          name of the related insurance carrier;

      

      

      
        (22)
          a
          code
          indicating whether or not the Mortgage Loan is currently convertible and
          the
          conversion spread;

      

      

      
        (23)
          the
          last
          Due Date on which a Monthly Payment was actually applied to the unpaid
          principal
          balance of the Mortgage Loan.

      

      

      
        (24)
          product
          type (i.e. fixed, 3/1, 5/1, etc.);

      

      

      
        (25)
          credit
          score and/or mortgage score, if applicable;

      

      

      
        (26)
          the
          Lender Paid Mortgage Insurance Rate;

      

      

      
        (27)
          a
          code
          indicating whether or not the Mortgage Loan has a prepayment penalty and
          if so,
          the amount and term thereof; and

      

      

      (28) 
        the
        Current Appraised Value of the Mortgage Loan and Current LTV, if
        applicable.

      

      With
        respect to the Mortgage Loans in the aggregate, the Mortgage Loan Schedule
        attached to the related Term Sheet shall set forth the following information,
        as
        of the related Cut-off Date:

      

      (1) the
        number of Mortgage Loans;

      

      (2) the
        current aggregate outstanding principal balance of the Mortgage
        Loans;

      

      (3) the
        weighted average Mortgage Interest Rate of the Mortgage Loans; 

      

      (4) the
        weighted average maturity of the Mortgage Loans; and

      

      (5)
         the
        weighted average months to next Adjustment Date;

       

      Mortgage
        Note:
        The
        note or other evidence of the indebtedness of a Mortgagor secured by a
        Mortgage.

      

      Mortgaged
        Property:
        The
        underlying real property securing repayment of a Mortgage Note, consisting
        of a
        single parcel of real estate considered to be real estate under the laws
        of the
        state in which such real property is located which may include condominium
        units
        and planned unit developments, improved by a residential dwelling; except
        that
        with respect to real property located in jurisdictions in which the use of
        leasehold estates for residential properties is a widely-accepted practice,
        a
        leasehold estate of the Mortgage, the term of which is equal to or longer
        than
        the term of the Mortgage. 

      

      Mortgagor:
        The
        obligor on a Mortgage Note. 

      

      OCC:
        Office
        of the Comptroller of the Currency, its successors and assigns.

      

      Officers'
        Certificate:
        A
        certificate signed by the Chairman of the Board, the Vice Chairman of the
        Board,
        the President, a Senior Vice President or a Vice President or by the Treasurer
        or the Secretary or one of the Assistant Treasurers or Assistant Secretaries
        of
        the Company, and delivered to the Purchaser as required by this
        Agreement.

      

      Opinion
        of Counsel:
        A
        written opinion of counsel, who may be an employee of the party on behalf
        of
        whom the opinion is being given, reasonably acceptable to the
        Purchaser.

      

      Origination
        Date:
        The
        date on which a Mortgage Loan funded, which date shall not, in connection
        with a
        Refinanced Mortgage Loan, be the date of the funding of the debt being
        refinanced, but rather the closing of the debt currently outstanding under
        the
        terms of the Mortgage Loan Documents. 

      

      Periodic
        Rate Cap:
        As to
        each adjustable rate Mortgage Loan, the maximum increase or decrease in the
        Mortgage Interest Rate on any Adjustment Date, as set forth in the related
        Mortgage Note and the related Mortgage Loan Schedule.

      

      Permitted
        Investments:
        Any one
        or more of the following obligations or securities:

      

      (i) direct
        obligations of, and obligations fully guaranteed by the United States of
        America
        or any agency or instrumentality of the United States of America the obligations
        of which are backed by the full faith and credit of the United States of
        America; 

      

      
        	 	
                (ii)
                  (a) demand or time deposits, federal funds or bankers' acceptances
                  issued
                  by any depository institu-tion or trust company incorporated under
                  the
                  laws of the United States of America or any state thereof and subject
                  to
                  supervision and examination by federal and/or state banking authorities,
                  provided that the commercial paper and/or the short-term deposit
                  rating
                  and/or the long-term unsecured debt obligations or deposits of
                  such
                  depository institution or trust company at the time of such investment
                  or
                  contractual commitment providing for such investment are rated
                  in one of
                  the two highest rating categories by each Rating Agency and (b)
                  any other
                  demand or time deposit or certificate of deposit that is fully
                  insured by
                  the FDIC;

              

      

      

      
        	 	
                (iii)
                  repurchase obligations with a term not to exceed thirty (30) days
                  and with
                  respect to (a) any security described in clause (i) above and entered
                  into
                  with a depository institution or trust company (acting as principal)
                  described in clause (ii)(a) above;

              

      

      

      
        	 	
                (iv)
                  securities bearing interest or sold at a discount issued by any
                  corporation incorporated under the laws of the United States of
                  America or
                  any state thereof that are rated in one of the two highest rating
                  categories by each Rating Agency at the time of such in-vestment
                  or
                  contractual commitment providing for such investment; provided,
                  however,
                  that securities issued by any particular corporation will not be
                  Permitted
                  Investments to the extent that investments therein will cause the
                  then
                  outstanding principal amount of secur-ities issued by such corporation
                  and
                  held as Permitted Investments to exceed 10% of the aggregate outstand-ing
                  principal balances of all of the Mortgage Loans and Permitted
                  Investments;

              

      

      

      
        	 	
                (v)
                  commercial paper (including both non-interest-bearing discount
                  obligations
                  and interest-bearing obliga-tions payable on demand or on a specified
                  date
                  not more than one year after the date of issuance there-of) which
                  are
                  rated in one of the two highest rating categories by each Rating
                  Agency at
                  the time of such investment;

              

      

      

      
        	 	
                (vi)
                  any other demand, money market or time deposit, obligation, security
                  or
                  investment as may be acceptable to each Rating Agency as evidenced
                  in
                  writing by each Rating Agency; and

              

      

      

      
        	 	
                (vii)
                  any money market funds the collateral of which consists of obligations
                  fully guaranteed by the United States of America or any agency
                  or
                  instru-ment-al-ity of the United States of America the obligations
                  of
                  which are backed by the full faith and credit of the United States
                  of
                  America (which may include repurchase obligations secured by collateral
                  described in clause (i)) and other securities and which money market
                  funds
                  are rated in one of the two highest rating categories by each Rating
                  Agency. 

              

      

      

      provided,
        however,
        that no
        instrument or security shall be a Permitted Investment if such instrument
        or
        security evidences a right to receive only interest payments with respect
        to the
        ob-li-ga-tions underlying such instrument or if such security provides for
        payment of both principal and interest with a yield to matur-ity in excess
        of
        120% of the yield to maturity at par or if such investment or security is
        purchased at a price greater than par.

      

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

      

      Prepayment
        Interest Shortfall:
        With
        respect to any Remittance Date, for each Mortgage Loan that was the subject
        of a
        Principal Prepayment during the related Prepayment Period, an amount equal
        to
        the excess of one month’s interest at the applicable Mortgage Loan Remittance
        Rate on the amount of such Principal Prepayment over the amount of interest
        (adjusted to the Mortgage Loan Remittance Rate) actually paid by the related
        Mortgagor with respect to such Prepayment Period.

      

      Prepayment
        Period: With
        respect to any Remittance Date, the calendar month preceding the month in
        which
        such Remittance Date occurs.

      

      Primary
        Mortgage Insurance Policy:
        Each
        primary policy of mortgage insurance represented to be in effect pursuant
        to
        Section 3.02(hh), or any replacement policy therefor obtained by the Company
        pursuant to Section 4.08.

      

      Prime
        Rate:
        The
        prime rate announced to be in effect from time to time as published as the
        average rate in the Wall Street Journal (Northeast Edition).

      

      Principal
        Prepayment:
        Any
        payment or other recovery of principal on a Mortgage Loan full or partial
        which
        is received in advance of its scheduled Due Date, including any prepayment
        penalty or premium thereon and which 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. 

       

      Purchase
        Price:
        As
        defined in Section 2.02.

      

      Purchaser:
        EMC
        Mortgage Corporation, its successors in interest and assigns.

      

      Qualified
        Appraiser:
        An
        appraiser, duly appointed by the Company, who had no interest, direct or
        indirect in the Mortgaged Property or in any loan made on the security thereof,
        and whose compensation is not affected by the approval or disapproval of
        the
        Mortgage Loan, and such appraiser and the appraisal made by such appraiser
        both
        satisfy the requirements of Title XI of FIRREA and the regulations promulgated
        thereunder and the requirements of Fannie Mae, all as in effect on the date
        the
        Mortgage Loan was originated.

      

      Qualified
        Insurer:
        An
        insurance company duly qualified as such under the laws of the states in
        which
        the Mortgaged Properties are located, duly authorized and licensed in such
        states to transact the applicable insurance business and to write the insurance
        provided, approved as an insurer by Fannie Mae or FHLMC. 

      

      Rating
        Agency:
        Moody’s
        Investors Service, Standard & Poor's, Fitch, Inc. or, in the event that some
        or all of the ownership of the Mortgage Loans is evidenced by mortgage-backed
        securities, the nationally recognized rating agencies issuing ratings with
        respect to such securities, if any.

       

      Refinanced
        Mortgage Loan:
        A
        Mortgage Loan which was made to a Mortgagor who owned the Mortgaged Property
        prior to the origination of such Mortgage Loan and the proceeds of which
        were
        used in whole or part to satisfy an existing mortgage.

      

      REMIC:
        A "real
        estate mortgage investment conduit," as such term is defined in Section 860D
        of
        the Code.

      

      REMIC
        Provisions:
        The
        provisions of the federal income tax law relating to REMICs, which appear
        at
        Sections 860A through 860G of the Code, and the related provisions and
        regulations promulgated thereunder, as the foregoing may be in effect from
        time
        to time.

      

      Remittance
        Date:
        The
        18th day of any month, beginning with the First Remittance Date, or if such
        18th
        day is not a Business Day, the first Business Day immediately preceding such
        18th day.

      

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

      

      REO
        Disposition Proceeds:
        Amounts
        received by the Company in connection with a related REO
        Disposition.

      

      REO
        Property:
        A
        Mortgaged Property acquired by the Company on behalf of the Purchaser as
        described in Section 4.13.

      

      Repurchase
        Price:
        With
        respect to any Mortgage Loan, a price equal to (i) the
        product of the greater of 100% or the percentage of par as stated in the
        Confirmation multiplied by the Stated Principal Balance
        of such Mortgage Loan on the repurchase date,
        plus
        (ii) interest on such outstanding principal balance at the Mortgage Loan
        Remittance Rate from the last date through which interest has been paid and
        distributed to the Purchaser to the end of the month of repurchase, plus,
        (iii)
        third party expenses incurred in connection with the transfer of the Mortgage
        Loan being repurchased; less amounts received or advanced in respect of such
        repurchased Mortgage Loan which are being held in the Custodial Account for
        distribution in the month of repurchase. 

      

      Servicing
        Advances:
        All
        customary, reasonable and necessary "out of pocket" costs and expenses
        (including reasonable attorneys' fees and disbursements) incurred in the
        performance by the Company of its servicing obligations, including, but not
        limited to, the cost of (a) the preservation, restoration and protection
        of the
        Mortgaged Property, (b) any enforcement, administrative or judicial proceedings,
        or any legal work or advice specifically related to servicing the Mortgage
        Loans, including but not limited to, foreclosures, bankruptcies, condemnations,
        drug seizures, elections, foreclosures by subordinate or superior lienholders,
        and other legal actions incidental to the servicing of the Mortgage Loans
        (provided that such expenses are reasonable and that the Company specifies
        the
        Mortgage Loan(s) to which such expenses relate and, upon Purchaser’s request,
        provides documentation supporting such expense (which documentation would
        be
        acceptable to Fannie Mae), and provided further that any such enforcement,
        administrative or judicial proceeding does not arise out of a breach of any
        representation, warranty or covenant of the Company hereunder), (c) the
        management and liquidation of the Mortgaged Property if the Mortgaged Property
        is acquired in full or partial satisfaction of the Mortgage, (d) taxes,
        assessments, water rates, sewer rates and other charges which are or may
        become
        a lien upon the Mortgaged Property, and Primary Mortgage Insurance Policy
        premiums and fire and hazard insurance coverage, (e) any expenses reasonably
        sustained by the Company with respect to the liquidation of the Mortgaged
        Property in accordance with the terms of this Agreement and (f) compliance
        with
        the obligations under Section 4.08.

      

      Servicing
        Fee:
        With
        respect to each Mortgage Loan, the amount of the annual fee the Purchaser
        shall
        pay to the Company, which shall, for a period of one full month, be equal
        to
        one-twelfth of the product of (a) the Servicing Fee Rate and (b) the outstanding
        principal balance of such Mortgage Loan. Such fee shall be payable monthly,
        computed on the basis of the same principal amount and period respecting
        which
        any related interest payment on a Mortgage Loan is computed. The obligation
        of
        the Purchaser to pay the Servicing Fee is limited to, and the Servicing Fee
        is
        payable solely from, the interest portion of such Monthly Payment collected
        by
        the Company, or as otherwise provided under Section 4.05 and in accordance
        with
        the Fannie Mae Guide(s). Any fee payable to the Company for administrative
        services related to any REO Property as described in Section 4.13 shall be
        payable from Liquidation Proceeds of the related REO Property.

      

      Servicing
        Fee Rate:
        As set
        forth in the related Term Sheet.

      

      Servicing
        File:
        With
        respect to each Mortgage Loan, the file retained by the Company consisting
        of
        originals of all documents in the Mortgage File which are not delivered to
        the
        Purchaser and copies of the Mortgage Loan Documents listed in Exhibit A,
        the
        originals of which are delivered to the Purchaser or its designee pursuant
        to
        Section 2.04.

      

      Servicing
        Officer:
        Any
        officer of the Company involved in, or responsible for, the administration
        and
        servicing of the Mortgage Loans whose name appears on a list of servicing
        officers furnished by the Company to the Purchaser upon request, as such
        list
        may from time to time be amended.

      

      Stated
        Principal Balance:
        As to
        each Mortgage Loan as of any date of determination, (i) the principal balance
        of
        such 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 distributed to the Purchaser with respect to the Mortgage
        Loan representing payments or recoveries of principal or advances in lieu
        thereof.

      

      Subservicer:
        Any
        subservicer which is subservicing the Mortgage Loans pursuant to a Subservicing
        Agreement. Any subservicer shall meet the qualifications set forth in Section
        4.01.

      

      Subservicing
        Agreement:
        An
        agreement between the Company and a Subservicer, if any, for the servicing
        of
        the Mortgage Loans.

      

      Term
        Sheet:
        A
        supplemental agreement in the form attached hereto as Exhibit I which shall
        be
        executed and delivered by the Company and the Purchaser to provide for the
        sale
        and servicing pursuant to the terms of this Agreement of the Mortgage Loans
        listed on Schedule I attached thereto, which supplemental agreement shall
        contain certain specific information relating to such sale of such Mortgage
        Loans and may contain additional covenants relating to such sale of such
        Mortgage Loans.

      

      

      ARTICLE
        II

      

      SERVICING
        OF MORTGAGE LOANS;

      RECORD
        TITLE AND POSSESSION OF MORTGAGE FILES;

      BOOKS
        AND RECORDS; CUSTODIAL AGREEMENT;

      DELIVERY
        OF MORTGAGE LOAN DOCUMENTS

      

      Section
        2.01 Agreement
        to Purchase.

      

      The
        Company agrees to sell and the Purchaser agrees to purchase the Mortgage
        Loans
        having an aggregate Stated Principal Balance on the related Cut-off Date
        set
        forth in the related Term Sheet in an amount as set forth in the Confirmation,
        or in such other amount as agreed by the Purchaser and the Company as evidenced
        by the actual aggregate Stated Principal Balance of the Mortgage Loans accepted
        by the Purchaser on the related Closing Date, with servicing retained by
        the
        Company. The Company shall deliver the related Mortgage Loan Schedule attached
        to the related Term Sheet for the Mortgage Loans to be purchased on the related
        Closing Date to the Purchaser at least two (2) Business Days prior to the
        related Closing Date. The Mortgage Loans shall be sold pursuant to this
        Agreement, and the related Term Sheet shall be executed and delivered on
        the
        related Closing Date.

      

      Section
        2.02 Purchase
        Price.

      

      The
        Purchase Price for each Mortgage Loan shall be the percentage of par as stated
        in the Confirmation (subject to adjustment as provided therein), multiplied
        by
        the Stated Principal Balance, as of the related Cut-off Date, of the Mortgage
        Loan listed on the related Mortgage Loan Schedule attached to the related
        Term
        Sheet, after application of scheduled payments of principal due on or before
        the
        related Cut-off Date whether or not collected. 

      

      In
        addition to the Purchase Price as described above, the Purchaser shall pay
        to
        the Company, at closing, accrued interest on the Stated Principal Balance
        of
        each Mortgage Loan as of the related Cut-off Date at the Mortgage Loan
        Remittance Rate of each Mortgage Loan from the related Cut-off Date through
        the
        day prior to the related Closing Date, inclusive.

      

      The
        Purchase Price plus accrued interest as set forth in the preceding paragraph
        shall be paid on the related Closing Date by wire transfer of immediately
        available funds.

      

      Purchaser
        shall be entitled to (1) all scheduled principal due after the related Cut-off
        Date, (2) all other recoveries of principal collected on or after the related
        Cut-off Date (provided, however, that all scheduled payments of principal
        due on
        or before the related Cut-off Date and collected by the Company or any successor
        servicer after the related Cut-off Date shall belong to the Company), and
        (3)
        all payments of interest on the Mortgage Loans net of applicable Servicing
        Fees
        (minus that portion of any such payment which is allocable to the period
        prior
        to the related Cut-off Date). The outstanding principal balance of each Mortgage
        Loan as of the related Cut-off Date is determined after application of payments
        of principal due on or before the related Cut-off Date whether or not collected,
        together with any unscheduled principal prepayments collected prior to the
        related Cut-off Date; provided, however, that payments of scheduled principal
        and interest prepaid for a Due Date beyond the related Cut-off Date shall
        not be
        applied to the principal balance as of the related Cut-off Date. Such prepaid
        amounts shall be the property of the Purchaser. The Company shall deposit
        any
        such prepaid amounts into the Custodial Account, which account is established
        for the benefit of the Purchaser for subsequent remittance by the Company
        to the
        Purchaser.

      

      Section
        2.03 Servicing
        of Mortgage Loans.

      

      Simultaneously
        with the execution and delivery of each Term Sheet, the Company does hereby
        agree to directly service the Mortgage Loans listed on the related Mortgage
        Loan
        Schedule attached to the related Term Sheet subject to the terms of this
        Agreement and the related Term Sheet. The rights of the Purchaser to receive
        payments with respect to the related Mortgage Loans shall be as set forth
        in
        this Agreement.

      

      Section
        2.04 Record
        Title and Possession of Mortgage Files;
        Maintenance of Servicing Files.

      

      As
        of the
        related Closing Date, the Company sold, transferred, assigned, set over and
        conveyed to the Purchaser, without recourse, and the Company hereby acknowledges
        that the Purchaser has, but subject to the terms of this Agreement and the
        related Term Sheet, all the right, title and interest of the Company in and
        to
        the Mortgage Loans. Company will deliver the Mortgage Files to the Custodian
        designated by Purchaser, on or before the related Closing Date, at the expense
        of the Company. The Company shall maintain a Servicing File consisting of
        a copy
        of the contents of each Mortgage File and the originals of the documents
        in each
        Mortgage File not delivered to the Purchaser. The Servicing File shall contain
        all documents necessary to service the Mortgage Loans. The possession of
        each
        Servicing File by the Company is at the will of the Purchaser, for the sole
        purpose of servicing the related Mortgage Loan, and such retention and
        possession by the Company is in a custodial capacity only. From the related
        Closing Date, the ownership of each Mortgage Loan, including the Mortgage
        Note,
        the Mortgage, the contents of the related Mortgage File and all rights,
        benefits, proceeds and obligations arising therefrom or in connection therewith,
        has been vested in the Purchaser. All rights arising out of the Mortgage
        Loans
        including, but not limited to, all funds received on or in connection with
        the
        Mortgage Loans and all records or documents with respect to the Mortgage
        Loans
        prepared by or which come into the possession of the Company shall be received
        and held by the Company in trust for the benefit of the Purchaser as the
        owner
        of the Mortgage Loans. Any portion of the Mortgage Files retained by the
        Company
        shall be appropriately identified in the Company's computer system to clearly
        reflect the ownership of the Mortgage Loans by the Purchaser. The Company
        shall
        release its custody of the contents of the Mortgage Files only in accordance
        with written instructions of the Purchaser, except when such release is required
        as incidental to the Company's servicing of the Mortgage Loans or is in
        connection with a repurchase of any Mortgage Loan or Loans with respect thereto
        pursuant to this Agreement and the related Term Sheet, such written instructions
        shall not be required.

      

      Section
        2.05  Books
        and Records.

      

      The
        sale
        of each Mortgage Loan has been reflected on the Company's balance sheet and
        other financial statements as a sale of assets by the Company. The Company
        shall
        be responsible for maintaining, and shall maintain, a complete set of books
        and
        records for the Mortgage Loans that shall be appropriately identified in
        the
        Company's computer system to clearly reflect the ownership of the Mortgage
        Loan
        by the Purchaser. In particular, the Company shall maintain in its possession,
        available for inspection by the Purchaser, or its designee and shall deliver
        to
        the Purchaser upon demand, evidence of compliance with all federal, state
        and
        local laws, rules and regulations, and requirements of Fannie Mae or FHLMC,
        as
        applicable, including but not limited to documentation as to the method used
        in
        determining the applicability of the provisions of the Flood Disaster Protection
        Act of 1973, as amended, to the Mortgaged Property, documentation evidencing
        insurance coverage of any condominium project as required by Fannie Mae or
        FHLMC, and periodic inspection reports as required by Section 4.13. To the
        extent that original documents are not required for purposes of realization
        of
        Liquidation Proceeds or Insurance Proceeds, documents maintained by the Company
        may be in the form of microfilm or microfiche.

      

      The
        Company shall maintain with respect to each Mortgage Loan and shall make
        available for inspection by any Purchaser or its designee the related Servicing
        File during the time the Purchaser retains ownership of a Mortgage Loan and
        thereafter in accordance with applicable laws and regulations.

      

      In
        addition to the foregoing, Company shall provide to any supervisory agents
        or
        examiners that regulate Purchaser, including but not limited to, the FDIC
        and
        other similar entities, access, during normal business hours, upon reasonable
        advance notice to Company and without charge to Company or such supervisory
        agents or examiners, to any documentation regarding the Mortgage Loans that
        may
        be required by any applicable regulator.

      

      Section
        2.06. Transfer
        of Mortgage Loans.

      

      The
        Company shall keep at its servicing office books and records in which, subject
        to such reasonable regulations as it may prescribe, the Company shall note
        transfers of Mortgage Loans. No transfer of a Mortgage Loan may be made unless
        such transfer is in compliance with the terms hereof. For the purposes of
        this
        Agreement, the Company shall be under no obligation to deal with any person
        with
        respect to this Agreement or any Mortgage Loan unless a notice of the transfer
        of such Mortgage Loan has been delivered to the Company in accordance with
        this
        Section 2.06 and the books and records of the Company show such person as
        the
        owner of the Mortgage Loan. The Purchaser may, subject to the terms of this
        Agreement, sell and transfer one or more of the Mortgage Loans, provided,
        however, that the transferee will not be deemed to be a Purchaser hereunder
        binding upon the Company unless such transferee shall agree in writing to
        be
        bound by the terms of this Agreement and an original counterpart of the
        instrument of transfer in an Assignment and Assumption of this Agreement
        substantially in the form of Exhibit D hereto executed by the transferee
        shall
        have been delivered to the Company. The Purchaser also shall advise the Company
        of the transfer. Upon receipt of notice of the transfer, the Company shall
        mark
        its books and records to reflect the ownership of the Mortgage Loans of such
        assignee, and the previous Purchaser shall be released from its obligations
        hereunder with respect to the Mortgage Loans sold or transferred.

      

      Section
        2.07 Delivery
        of Mortgage Loan Documents.

      

      The
        Company shall deliver and release to the Purchaser or its designee the Mortgage
        Loan Documents in accordance with the terms of this Agreement and the related
        Term Sheet. The documents enumerated as items (1), (2), (3), (4), (5), (6),
        (7),
        (8), (9) and (16) in Exhibit A hereto shall be delivered by the Company to
        the
        Purchaser or its designee no later than three (3) Business Days prior to
        the
        related Closing Date pursuant to a bailee letter agreement. All other documents
        in Exhibit A hereto, together with all other documents executed in connection
        with the Mortgage Loan that Company may have in its possession, shall be
        retained by the Company in trust for the Purchaser. If the Company cannot
        deliver the original recorded Mortgage Loan Documents or the original policy
        of
        title insurance, including riders and endorsements thereto, on the related
        Closing Date, the Company shall, promptly upon receipt thereof and in any
        case
        not later than 120 days from the related Closing Date, deliver such original
        documents, including original recorded documents, to the Purchaser or its
        designee (unless the Company is delayed in making such delivery by reason
        of the
        fact that such documents shall not have been returned by the appropriate
        recording office). If delivery is not completed within 120 days solely due
        to
        delays in making such delivery by reason of the fact that such documents
        shall
        not have been returned by the appropriate recording office, Company shall
        deliver such document to Purchaser, or its designee, within such time period
        as
        specified in a Company's Officer's Certificate. In the event that documents
        have
        not been received by the date specified in the Company's Officer's Certificate,
        a subsequent Company's Officer's Certificate shall be delivered by such date
        specified in the prior Company's Officer's Certificate, stating a revised
        date
        for receipt of documentation. The procedure shall be repeated until the
        documents have been received and delivered. If
        delivery is not completed within 180 days solely due to delays in making
        such
        delivery by reason of the fact that such documents shall not have been returned
        by the appropriate recording office, the Company shall continue to use its
        best
        efforts to effect delivery as soon as possible thereafter, provided that
        if such
        documents are not delivered by the 270th day from the date of the related
        Closing Date, the Company shall repurchase the related Mortgage Loans at
        the
        Repurchase Price in accordance with Section 3.03 hereof.

      

      The
        Company shall pay all initial recording fees, if any, for the assignments
        of
        mortgage and any other fees in connection with the transfer of all original
        documents to the Purchaser or its designee. Company shall prepare, in recordable
        form, all assignments of mortgage necessary to assign the Mortgage Loans
        to
        Purchaser, or its designee. Company shall be responsible for recording the
        assignments of mortgage.

      

      Company
        shall provide an original or duplicate original of the title insurance policy
        to
        Purchaser or its designee within ninety (90) days of the receipt of the recorded
        documents (required for issuance of such policy) from the applicable recording
        office.

      

      Any
        review by the Purchaser, or its designee, of the Mortgage Files shall in
        no way
        alter or reduce the Company's obligations hereunder.

      

      If
        the
        Purchaser or its designee discovers any defect with respect to a Mortgage
        File,
        the Purchaser shall, or shall cause its designee to, give written specification
        of such defect to the Company which may be given in the exception report
        or the
        certification delivered pursuant to this Section 2.07, or otherwise in writing
        and the Company shall cure or repurchase such Mortgage Loan in accordance
        with
        Section 3.03.

      

      The
        Company shall forward to the Purchaser, or its designee, original documents
        evidencing an assumption, modification, consolidation or extension of any
        Mortgage Loan entered into in accordance with Section 4.01 or 6.01 within
        one
        week of their execution; provided, however, that the Company shall provide
        the
        Purchaser, or its designee, with a certified true copy of any such document
        submitted for recordation within one week of its execution, and shall provide
        the original of any document submitted for recordation or a copy of such
        document certified by the appropriate public recording office to be a true
        and
        complete copy of the original within sixty (60) days of its submission for
        recordation.

      

      From
        time
        to time the Company may have a need for Mortgage Loan Documents to be released
        from Purchaser, or its designee. Purchaser shall, or shall cause its designee,
        upon the written request of the Company, within ten (10) Business Days, deliver
        to the Company, any requested documentation previously delivered to Purchaser
        as
        part of the Mortgage File, provided that such documentation is promptly returned
        to Purchaser, or its designee, when the Company no longer requires possession
        of
        the document, and provided that during the time that any such documentation
        is
        held by the Company, such possession is in trust for the benefit of Purchaser.
        Company shall indemnify Purchaser, and its designee, from and against any
        and
        all losses, claims, damages, penalties, fines, forfeitures, costs and expenses
        (including court costs and reasonable attorney's fees) resulting from or
        related
        to the loss, damage, or misplacement of any documentation delivered to Company
        pursuant to this paragraph.

      

      Section
        2.08 Quality
        Control Procedures.

      

      The
        Company must have an internal quality control program that verifies, on a
        regular basis, the existence and accuracy of the legal documents, credit
        documents, property appraisals, and underwriting decisions. The program must
        be
        capable of evaluating and monitoring the overall quality of its loan production
        and servicing activities. The program is to ensure that the Mortgage Loans
        are
        originated and serviced in accordance with prudent mortgage banking practices
        and accounting principles; guard against dishonest, fraudulent, or negligent
        acts; and guard against errors and omissions by officers, employees, or other
        authorized persons.

      

      Section
        2.09 Near-term Principal Prepayments; Near Term Payment
        Defaults

      

      In
        the
        event any Principal Prepayment is made by a Mortgagor on or prior to sixty
        (60)
        days after the related Closing Date, the Company shall remit to the Purchaser
        an
        amount equal to the excess, if any, of the Purchase Price Percentage over
        par
        multiplied by the amount of such Principal Prepayment. Such remittance shall
        be
        made by the Company to Purchaser no later than the third Business Day following
        receipt of such Principal Prepayment by the Company.

      

      In
        the
        event any of the first two (2) scheduled Monthly Payments which are due under
        any Mortgage Loan after the related Cut-off Date are not made during the
        month
        in which such Monthly Payments are due, then not later than five (5) Business
        Days after notice to the Company by Purchaser (and at Purchaser’s sole option),
        the Company, shall repurchase such Mortgage Loan from the Purchaser pursuant
        to
        the repurchase provisions contained in this Subsection 3.03.

       

       

      
 

      ARTICLE
        III

      

      REPRESENTATIONS
        AND WARRANTIES OF

      THE
        COMPANY; REPURCHASE; REVIEW OF MORTGAGE LOANS

      

      Section
        3.01 Representations
        and Warranties of the Company. 

      

      The
        Company represents, warrants and covenants to the Purchaser that, as of the
        related Closing Date or as of such date specifically provided
        herein:

      

      (a) The
        Company is a corporation, duly organized, validly existing and in good standing
        under the laws of the State of Ohio and has all licenses necessary to carry
        out
        its business as now being conducted, and is licensed and qualified to transact
        business in and is in good standing under the laws of each state in which
        any
        Mortgaged Property is located or is otherwise exempt under applicable law
        from
        such licensing or qualification or is otherwise not required under applicable
        law to effect such licensing or qualification and no demand for such licensing
        or qualification has been made upon such Company by any such state, and in
        any
        event such Company is in compliance with the laws of any such state to the
        extent necessary to ensure the enforceability of each Mortgage Loan and the
        servicing of the Mortgage Loans in accordance with the terms of this
        Agreement;

       

      (b)
        The
        Company has the full power and authority and legal right to hold, transfer
        and
        convey each Mortgage Loan, to sell each Mortgage Loan and to execute, deliver
        and perform, and to enter into and consummate all transactions contemplated
        by
        this Agreement and the related Term Sheet and to conduct its business as
        presently conducted, has duly authorized the execution, delivery and performance
        of this Agreement and the related Term Sheet and any agreements contemplated
        hereby, has duly executed and delivered this Agreement and the related Term
        Sheet, and any agreements contemplated hereby, and this Agreement and the
        related Term Sheet and each Assignment to the Purchaser and any agreements
        contemplated hereby, constitutes a legal, valid and binding obligation of
        the
        Company, enforceable against it in accordance with its terms, and all requisite
        corporate action has been taken by the Company to make this Agreement and
        the
        related Term Sheet and all agreements contemplated hereby valid and binding
        upon
        the Company in accordance with their terms; 

      

      (c)
        Neither the execution and delivery of this Agreement and the related Term
        Sheet,
        nor the origination or purchase of the Mortgage Loans by the Company, the
        sale
        of the Mortgage Loans to the Purchaser, the consummation of the transactions
        contemplated hereby, or the fulfillment of or compliance with the terms and
        conditions of this Agreement and the related Term Sheet will conflict with
        any
        of the terms, conditions or provisions of the Company's charter or by-laws
        or
        materially conflict with or result in a material breach of any of the terms,
        conditions or provisions of any legal restriction or any agreement or instrument
        to which the Company is now a party or by which it is bound, or constitute
        a
        default or result in an acceleration under any of the foregoing, or result
        in
        the material violation of any law, rule, regulation, order, judgment or decree
        to which the Company or its properties are subject, or impair the ability
        of the
        Purchaser to realize on the Mortgage Loans.

      

      (d)
        There
        is no litigation, suit, proceeding or investigation pending or, to the best
        of
        Company’s knowledge, threatened, or any order or decree outstanding, with
        respect to the Company which, either in any one instance or in the aggregate,
        is
        reasonably likely to have a material adverse effect on the sale of the Mortgage
        Loans, the execution, delivery, performance or enforceability of this Agreement
        and the related Term Sheet, or which is reasonably likely to have a material
        adverse effect on the financial condition of the Company.

      

      (e)
        No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Company
        of
        or compliance by the Company with this Agreement or the related Term Sheet,
        or
        the sale of the Mortgage Loans and delivery of the Mortgage Files to the
        Purchaser or the consummation of the transactions contemplated by this Agreement
        or the related Term Sheet, except for consents, approvals, authorizations
        and
        orders which have been obtained;

      

      (f)
        The
        consummation of the transactions contemplated by this Agreement or the related
        Term Sheet is in the ordinary course of business of the Company and Company,
        and
        the transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
        by the Company pursuant to this Agreement or the related Term Sheet are not
        subject to bulk transfer or any similar statutory provisions in effect in
        any
        applicable jurisdiction;

      

      (g)
        The
        origination and servicing practices used by the Company and any prior originator
        or servicer with respect to each Mortgage Note and Mortgage have been legal
        and
        in accordance with applicable laws and regulations and the Mortgage Loan
        Documents, and in all material respects proper and prudent in the mortgage
        origination and servicing business. Each Mortgage Loan has been serviced
        in all
        material respects with Accepted Servicing Practices. With respect to escrow
        deposits and payments that the Company, on behalf of an investor, is entitled
        to
        collect, all such payments are in the possession of, or under the control
        of,
        the Company, and there exist no deficiencies in connection therewith for
        which
        customary arrangements for repayment thereof have not been made. All escrow
        payments have been collected in full compliance with state and federal law
        and
        the provisions of the related Mortgage Note and Mortgage. As to any Mortgage
        Loan that is the subject of an escrow, escrow of funds is not prohibited
        by
        applicable law and has been established in an amount sufficient to pay for
        every
        escrowed item that remains unpaid and has been assessed but is not yet due
        and
        payable. No escrow deposits or other charges or payments due under the Mortgage
        Note have been capitalized under any Mortgage or the related Mortgage
        Note;

      

      (h)
        The
        Company used no selection procedures that identified the Mortgage Loans as
        being
        less desirable or valuable than other comparable mortgage loans in the Company's
        portfolio at the related Cut-off Date; 

      

      (i) The
        Company will treat the sale of the Mortgage Loans to the Purchaser as a sale
        for
        reporting and accounting purposes and, to the extent appropriate, for federal
        income tax purposes; 

      

      (j) Company
        is an approved seller/servicer of residential mortgage loans for Fannie Mae,
        FHLMC and HUD, with such facilities, procedures and personnel necessary for
        the
        sound servicing of such mortgage loans. The Company is duly qualified, licensed,
        registered and otherwise authorized under all applicable federal, state and
        local laws, and regulations, if applicable, meets the minimum capital
        requirements set forth by the OCC, and is in good standing to sell mortgage
        loans to and service mortgage loans for Fannie Mae and FHLMC and no event
        has
        occurred which would make Company unable to comply with eligibility requirements
        or which would require notification to either Fannie Mae or FHLMC; 

      

      (k) The
        Company does not believe, nor does it have any cause or reason to believe,
        that
        it cannot perform each and every covenant contained in this Agreement or
        the
        related Term Sheet. The Company is solvent and the sale of the Mortgage Loans
        will not cause the Company to become insolvent. The sale of the Mortgage
        Loans
        is not undertaken with the intent to hinder, delay or defraud any of the
        Company's creditors;

      

      (l) No
        statement, tape, diskette, form, report or other document prepared by, or
        on
        behalf of, Company pursuant to this Agreement or the related Term Sheet or
        in
        connection with the transactions contemplated hereby, contains or will contain
        any statement that is or will be inaccurate or misleading in any material
        respect;

      

      (m)
         The
        Company acknowledges and agrees that the Servicing Fee represents reasonable
        compensation for performing such services and that the entire Servicing Fee
        shall be treated by the Company, for accounting and tax purposes, as
        compensation for the servicing and administration of the Mortgage Loans pursuant
        to this Agreement. In the opinion of Company, the consideration received
        by
        Company upon the sale of the Mortgage Loans to Purchaser under this Agreement
        and the related Term Sheet constitutes fair consideration for the Mortgage
        Loans
        under current market conditions. 

      

      (n)
         Company
        has delivered to the Purchaser financial statements of its parent, for its
        last
        two complete fiscal years. All such financial information fairly presents
        the
        pertinent results of operations and financial position for the period identified
        and has been prepared in accordance with GAAP consistently applied throughout
        the periods involved, except as set forth in the notes thereto. There has
        been
        no change in the business, operations, financial condition, properties or
        assets
        of the Company since the date of the Company’s financial information that would
        have a material adverse effect on its ability to perform its obligations
        under
        this Agreement;

      

      (o)
         The
        Company has not dealt with any broker, investment banker, agent or other
        person
        that may be entitled to any commission or compensation in connection with
        the
        sale of the Mortgage Loans; 

      

      Section
        3.02 Representations
        and Warranties as to Individual
        Mortgage Loans.

      

      References
        in this Section to percentages of Mortgage Loans refer in each case to the
        percentage of the aggregate Stated Principal Balance of the Mortgage Loans
        as of
        the related Cut-off Date, based on the outstanding Stated Principal Balances
        of
        the Mortgage Loans as of the related Cut-off Date, and giving effect to
        scheduled Monthly Payments due on or prior to the related Cut-off Date, whether
        or not received. References to percentages of Mortgaged Properties refer,
        in
        each case, to the percentages of expected aggregate Stated Principal Balances
        of
        the related Mortgage Loans (determined as described in the preceding sentence).
        The Company hereby represents and warrants to the Purchaser, as to each Mortgage
        Loan, as of the related Closing Date as follows:

      

      (a)
        The
        information set forth in the Mortgage Loan Schedule attached to the related
        Term
        Sheet is true, complete and correct in all material respects as of the related
        Cut-Off Date;

      

      (b) The
        Mortgage creates a valid, subsisting and enforceable first lien or a first
        priority ownership interest in an estate in fee simple in real property securing
        the related Mortgage Note subject to principles of equity, bankruptcy,
        insolvency and other laws of general application affecting the rights of
        creditors;

      

      (c)
        All
        payments due prior to the related Cut-off Date for such Mortgage Loan have
        been
        made as of the related Closing Date; the Mortgage Loan has not been dishonored;
        there are no material defaults under the terms of the Mortgage Loan; the
        Company
        has not advanced its own funds, or induced, solicited or knowingly received
        any
        advance of funds from a party other than the owner of the Mortgaged Property
        subject to the Mortgage, directly or indirectly, for the payment of any amount
        required by the Mortgage Loan. As
        of the
        related Closing Date, all of the Mortgage Loans will have an actual Interest
        Paid to Date of their related Cut-off Date(or later) and will be due for
        the
        scheduled monthly payment next succeeding the Cut-off Date (or later), as
        evidenced by a posting to Company's servicing collection system. No payment
        under any Mortgage Loan is delinquent as of the related Closing Date nor
        has any
        scheduled payment been delinquent at any time during the twelve (12) months
        prior to the month of the related Closing Date. 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 was due;

      

      (d)
        There
        are no defaults by Company in complying with the terms of the Mortgage, and
        all
        taxes, governmental assessments, insurance premiums, water, sewer and municipal
        charges, leasehold payments or ground rents which previously became due and
        owing have been paid, or escrow funds have been established in an amount
        sufficient to pay for every such escrowed item which remains unpaid and which
        has been assessed but is not yet due and payable;

      

      (e)
        The
        terms of the Mortgage Note and the Mortgage have not been impaired, waived,
        altered or modified in any respect, except by written instruments which have
        been recorded to the extent any such recordation is required by law, or,
        necessary to protect the interest of the Purchaser. No instrument of waiver,
        alteration or modification has been executed except in connection with a
        modification agreement and which modification agreement is part of the Mortgage
        File and the terms of which are reflected in the related Mortgage Loan Schedule,
        and no Mortgagor has been released, in whole or in part, from the terms thereof
        except in connection with an assumption agreement and which assumption agreement
        is part of the Mortgage File and the terms of which are reflected in the
        related
        Mortgage Loan Schedule; the substance of any such waiver, alteration or
        modification has been approved by the issuer of any related Primary Mortgage
        Insurance Policy, Lender Primary Mortgage Insurance Policy and title insurance
        policy, to the extent required by the related policies;

      

      (f)
        The
        Mortgage Note and the Mortgage are not subject to any right of rescission,
        set-off, counterclaim or defense, including, without limitation, the defense
        of
        usury, nor will the operation of any of the terms of the Mortgage Note or
        the
        Mortgage, or the exercise of any right thereunder, render the Mortgage Note
        or
        Mortgage unenforceable, in whole or in part, or subject to any right of
        rescission, set-off, counterclaim or defense, including the defense of usury,
        and no such right of rescission, set-off, counterclaim or defense has been
        asserted with respect thereto; and as of the related Closing Date the Mortgagor
        was not a debtor in any state or federal bankruptcy or insolvency
        proceeding;

      

      (g)
        All
        buildings or other customarily insured improvements upon the Mortgaged Property
        are insured by an insurer acceptable under the Fannie Mae or FHLMC Guides,
        against loss by fire, hazards of extended coverage and such other hazards
        as are
        provided for in the Fannie Mae or FHLMC Guide, as well as all additional
        requirements set forth in Section 4.10 of this Agreement. All such standard
        hazard policies are in full force and effect and contain a standard mortgagee
        clause naming the Company and its successors in interest and assigns as loss
        payee and such clause is still in effect and all premiums due thereon have
        been
        paid. If required by the Flood Disaster Protection Act of 1973, as amended,
        the
        Mortgage Loan is covered by a flood insurance policy meeting the requirements
        of
        the current guidelines of the Federal Insurance Administration which policy
        conforms to Fannie Mae or FHLMC requirements, as well as all additional
        requirements set forth in Section 4.10 of this Agreement. Such policy was
        issued
        by an insurer acceptable under Fannie Mae or FHLMC guidelines. 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 the
        Mortgagor's cost and expense and to seek reimbursement therefor from the
        Mortgagor.
        Neither
        the Company (nor any prior originator or servicer of any of the Mortgage
        Loans)
        nor any Mortgagor has engaged in any act or omission which has impaired or
        would
        impair the coverage of any such policy, the benefits of the endorsement provided
        for herein, or the validity and binding effect of either;

      

      (h)
        Any
        and all requirements of any federal, state or local law including, without
        limitation, usury, truth-in-lending, real estate settlement procedures, consumer
        credit protection, equal credit opportunity or disclosure laws applicable
        to the
        Mortgage Loan have been complied with in all material respects; the Company
        maintains, and shall maintain, evidence of such compliance as required by
        applicable law or regulation and shall make such evidence available for
        inspection at the Company's office during normal business hours upon reasonable
        advance notice;

      

      (i)
        The
        Mortgage has not been satisfied, canceled or subordinated, in whole or in
        part,
        or rescinded, 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 release, cancellation, subordination or rescission.
        The
        Company has not waived the performance by the Mortgagor of any action, if
        the
        Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
        in default, nor has the Company waived any default resulting from any action
        or
        inaction by the Mortgagor;

      

      (j) The
        Mortgage is a valid, subsisting, enforceable and perfected first lien on
        the
        Mortgaged Property, including all buildings on the Mortgaged Property and
        all
        installations and mechanical, electrical, plumbing, heating and air conditioning
        systems affixed to such buildings, and all additions, alterations and
        replacements made at any time with respect to the foregoing securing the
        Mortgage Note's original principal balance subject to principles of equity,
        bankruptcy, insolvency and other laws of general application affecting the
        rights of creditors. The Mortgage and the Mortgage Note do not contain any
        evidence of any security interest or other interest or right thereto. Such
        lien
        is free and clear of all adverse claims, liens and encumbrances having priority
        over the first lien of the Mortgage subject only to (1) the lien of
        non-delinquent current real property taxes and assessments not yet due and
        payable, (2) covenants, conditions and restrictions, rights of way, easements
        and other matters of the public record as of the date of recording which
        are
        acceptable to mortgage lending institutions generally and either (A) which
        are
        referred to in the lender’s title insurance policy delivered to the originator
        or otherwise considered in the appraisal made for the originator of the Mortgage
        Loan, or (B) which do not adversely affect the residential use or Appraised
        Value of the Mortgaged Property as set forth in such appraisal, and (3) other
        matters to which like properties are commonly subject which do not individually
        or in the aggregate 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, subsisting, enforceable and
        perfected first lien and first priority security interest on the property
        described therein, and the Company has the full right to sell and assign
        the
        same to the Purchaser;

      

      (k)
        The
        Mortgage Note and the related Mortgage are original and genuine and each
        is the
        legal, valid and binding obligation of the maker thereof, enforceable in
        all
        respects in accordance with its terms subject to principles of equity,
        bankruptcy, insolvency and other laws of general application affecting the
        rights of creditors, and the Company has taken all action necessary to transfer
        such rights of enforceability to the Purchaser. All parties to the Mortgage
        Note
        and the Mortgage had the legal capacity to enter into the Mortgage Loan and
        to
        execute and deliver the Mortgage Note and the Mortgage. The Mortgage Loan
        Documents are on forms acceptable to Fannie Mae and FHLMC. The Mortgage Note
        and
        the Mortgage have been duly and properly executed by such parties. No fraud,
        error, omission, misrepresentation, negligence or similar occurrence with
        respect to a Mortgage Loan has taken place on the part of Company or the
        Mortgagor, or on the part of any other party involved in the origination
        or
        servicing of the Mortgage Loan. The proceeds of the Mortgage Loan have been
        fully disbursed and there is no requirement for future advances thereunder,
        and
        any and all requirements as to completion of any on-site or off-site
        improvements and as to disbursements of any escrow funds therefor have been
        complied with. All costs, fees and expenses incurred in making or closing
        the
        Mortgage Loan and the recording of the Mortgage were paid, and the Mortgagor
        is
        not entitled to any refund of any amounts paid or due under the Mortgage
        Note or
        Mortgage;

      

      (l)
        The
        Company is the sole owner and holder of the Mortgage Loan and the indebtedness
        evidenced by the Mortgage Note. Upon the sale of the Mortgage Loan to the
        Purchaser, the Company will retain the Mortgage File or any part thereof
        with
        respect thereto not delivered to the Purchaser or the Purchaser’s designee in
        trust only for the purpose of servicing and supervising the servicing of
        the
        Mortgage Loan. Immediately prior to the transfer and assignment to the
        Purchaser, the Mortgage Loan, including the Mortgage Note and the Mortgage,
        were
        not subject to an assignment, sale or pledge to any person other than Purchaser,
        and the Company had good and marketable title to and was the sole owner thereof
        and had full right to transfer and sell the Mortgage Loan to the Purchaser
        free
        and clear of any encumbrance, equity, lien, pledge, charge, claim or security
        interest and has the full right and authority subject to no interest or
        participation of, or agreement with, any other party, to sell and assign
        the
        Mortgage Loan pursuant to this Agreement and following the sale of the Mortgage
        Loan, the Purchaser will own such Mortgage Loan free and clear of any
        encumbrance, equity, participation interest, lien, pledge, charge, claim
        or
        security interest. The Company intends to relinquish all rights to possess,
        control and monitor the Mortgage Loan, except for the purposes of servicing
        the
        Mortgage Loan as set forth in this Agreement. After the related Closing Date,
        the Company will not have any right to modify or alter the terms of the sale
        of
        the Mortgage Loan and the Company will not have any obligation or right to
        repurchase the Mortgage Loan or substitute another Mortgage Loan, except
        as
        provided in this Agreement, or as otherwise agreed to by the Company and
        the
        Purchaser;

      

      (m)
        Each
        Mortgage Loan is covered by an ALTA lender's title insurance policy or other
        generally acceptable form of policy or insurance acceptable to Fannie Mae
        or
        FHLMC (including adjustable rate endorsements), issued by a title insurer
        acceptable to Fannie Mae or FHLMC and qualified to do business in the
        jurisdiction where the Mortgaged Property is located, insuring (subject to
        the
        exceptions contained in (j)(1), (2) and (3) above) the Company, its successors
        and assigns, as to the first priority lien of the Mortgage in the original
        principal amount of the Mortgage Loan and 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. Where required by state law or regulation, the Mortgagor has been
        given
        the opportunity to choose the carrier of the required mortgage title insurance.
        The Company, its successors and assigns, is the sole insured of such lender's
        title insurance policy, such title insurance policy has been duly and validly
        endorsed to the Purchaser or the assignment to the Purchaser of the Company's
        interest therein does not require the consent of or notification to the insurer
        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 or servicer of the related Mortgage, including
        the
        Company, nor any Mortgagor, has done, by act or omission, anything which
        would
        impair the coverage of such lender's title insurance policy;

      

      (n)
        There
        is no default, breach, violation or event of acceleration existing under
        the
        Mortgage or the related 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 permitting acceleration;
        and
        neither the Company, nor any prior mortgagee has waived any default, breach,
        violation or event permitting acceleration;

      

      (o)
        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 liens) affecting the related Mortgaged Property which are or may
        be
        liens prior to or equal to the lien of the related Mortgage;

      

      (p)
        All
        improvements subject to the Mortgage which were considered in determining
        the
        appraised value of the Mortgaged Property lie wholly within the boundaries
        and
        building restriction lines of the Mortgaged Property (and wholly within the
        project with respect to a condominium unit) and no improvements on adjoining
        properties encroach upon the Mortgaged Property except those which are insured
        against by the title insurance policy referred to in clause (m) above and
        all
        improvements on the property comply with all applicable zoning and subdivision
        laws and ordinances;

      

      (q)
        Each
        Mortgage Loan was originated by or for the Company pursuant to, and conforms
        with, the Company’s underwriting guidelines attached as Exhibit H hereto. The
        Mortgage Loan bears interest at an adjustable rate (if applicable) as set
        forth
        in the related Mortgage Loan Schedule, and Monthly Payments under the Mortgage
        Note are due and payable on the first day of each month. The Mortgage contains
        the usual and enforceable provisions of the Company at the time of origination
        for the acceleration of the payment of the unpaid principal amount of the
        Mortgage Loan if the related Mortgaged Property is sold without the prior
        consent of the mortgagee thereunder;

      

      (r)
        The
        Mortgaged Property is not subject to any material damage. At origination
        of the
        Mortgage Loan there was not, since origination of the Mortgage Loan there
        has
        not been, and there currently is no proceeding pending for the total or partial
        condemnation of the Mortgaged Property. The Company has not received
        notification that any such proceedings are scheduled to commence at a future
        date;

      

      (s)
        The
        related Mortgage contains customary and enforceable provisions such as to
        render
        the rights and remedies of the holder thereof adequate for the realization
        against the Mortgaged Property of the benefits of the security provided thereby,
        including, (1) in the case of a Mortgage designated as a deed of trust, by
        trustee's sale, and (2) otherwise by judicial foreclosure. There is no homestead
        or other exemption available to the Mortgagor which would interfere with
        the
        right to sell the Mortgaged Property at a trustee's sale or the right to
        foreclose the Mortgage;

      

      (t)
        If
        the Mortgage constitutes a deed of trust, a trustee, authorized and duly
        qualified if required under applicable law to act as such, has been properly
        designated and currently so serves and is named in the Mortgage, and no fees
        or
        expenses, except as may be required by local law, are or will become payable
        by
        the Purchaser to the trustee under the deed of trust, except in connection
        with
        a trustee's sale or attempted sale after default by the Mortgagor;

      

      (u)
        The
        Mortgage File contains an appraisal of the related Mortgaged Property signed
        prior to the final approval of the mortgage loan application by a Qualified
        Appraiser, approved by the Company, who had no interest, direct or indirect,
        in
        the Mortgaged Property or in any loan made on the security thereof, and whose
        compensation is not affected by the approval or disapproval of the Mortgage
        Loan, and the appraisal and appraiser both satisfy the requirements of Fannie
        Mae or FHLMC and Title XI of the Federal Institutions Reform, Recovery, and
        Enforcement Act of 1989 and the regulations promulgated thereunder, all as
        in
        effect on the date the Mortgage Loan was originated. The appraisal is in
        a form
        acceptable to Fannie Mae or FHLMC;

      

      (v)
        All
        parties which have had any interest in the Mortgage, whether as mortgagee,
        assignee, pledgee or otherwise, are (or, during the period in which they
        held
        and disposed of such interest, were) (A) in compliance with any and all
        applicable licensing requirements of the laws of the state wherein the Mortgaged
        Property is located, and (B) (1) organized under the laws of such state,
        or (2)
        qualified to do business in such state, or (3) federal savings and loan
        associations or national banks or a Federal Home Loan Bank or savings bank
        having principal offices in such state, or (4) not doing business in such
        state;

      

      (w)
        The
        related Mortgage Note is not and has not been secured by any collateral except
        the lien of the corresponding Mortgage and the security interest of any
        applicable security agreement or chattel mortgage referred to above and such
        collateral does not serve as security for any other obligation;

      

      (x)
        The
        Mortgagor has received and has executed, where applicable, all disclosure
        materials required by applicable law with respect to the making of such mortgage
        loans;

      

      (y)
        The
        Mortgage Loan does not contain balloon or "graduated payment" features; No
        Mortgage Loan is subject to a buydown agreement or contains any buydown
        provision;

      

      (z)
        The
        Mortgagor is not in bankruptcy and, the Mortgagor is not insolvent and the
        Company has no knowledge of any circumstances or conditions with respect
        to the
        Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor's credit
        standing that could reasonably be expected to cause investors to regard the
        Mortgage Loan as an unacceptable investment, cause the Mortgage Loan to become
        delinquent, or materially adversely affect the value or marketability of
        the
        Mortgage Loan;

      

      (aa)
        Each
        Mortgage Loan bears interest based upon a thirty (30) day month and a three
        hundred and sixty (360) day year. The Mortgage Loans have an original term
        to
        maturity of not more than thirty (30) years, with interest payable in arrears
        on
        the first day of each month. As to each adjustable rate Mortgage Loan, on
        each
        applicable Adjustment Date, the Mortgage Interest Rate will be adjusted to
        equal
        the sum of the Index, plus the applicable Margin; provided, that the Mortgage
        Interest Rate, on each applicable Adjustment Date, will not increase by more
        than the Initial Rate Cap or Periodic Rate Cap, as applicable. Over the term
        of
        each adjustable rate Mortgage Loan, the Mortgage Interest Rate will not exceed
        such Mortgage Loan's Lifetime Rate Cap. None of the Mortgage Loans are
“interest-only” Mortgage Loans or “negative amortization” Mortgage Loans. With
        the respect to each adjustable rate Mortgage Loan, each Mort-gage Note requires
        a monthly payment which is suffi-cient (a) during the period prior to the
        first
        adjust-ment to the Mortgage Interest Rate, to fully amortize the original
        principal balance over the original term thereof and to pay interest at the
        related Mortgage Interest Rate, and (b) during the period following each
        Adjust-ment Date, to fully amortize the outstanding principal balance as
        of the
        first day of such period over the then remaining term of such Mortgage Note
        and
        to pay interest at the related Mortgage Interest Rate. With the respect to
        each
        adjustable rate Mortgage Loan, the Mortgage Note provides that when the Mortgage
        Interest Rate changes on an Adjustment Date, the then outstanding principal
        balance will be reamortized over the remaining life of the Mortgage Loan.
        No
        Mortgage Loan contains terms or provi-sions which would result in negative
        amortization. None of the Mortgage Loans contain a conversion feature which
        would cause the Mortgage Loan interest rate to convert to a fixed interest
        rate.
        None of the Mortgage Loans are considered agricultural loans; 

      

      (bb)
         
        (INTENTIONALLY LEFT BLANK)

      

      (cc)
        (INTENTIONALLY LEFT BLANK)

      

      (dd)
        (INTENTIONALLY LEFT BLANK)

       

      (ee)
        (INTENTIONALLY LEFT BLANK) 

      

      (ff)
        (INTENTIONALLY LEFT BLANK)

      

      (gg) 
        (INTENTIONALLY LEFT BLANK)

      

      (hh) Unless
        set forth in the related Term Sheet, in the event the Mortgage Loan had an
        LTV
        at origination greater than 80.00%, either (i) the excess of the principal
        balance of the Mortgage Loan over 75.0% of the Appraised Value of the Mortgaged
        Property with respect to a Refinanced Mortgage Loan, or the lesser of the
        Appraised Value or the purchase price of the Mortgaged Property with respect
        to
        a purchase money Mortgage Loan was insured as to payment defaults by a Primary
        Mortgage Insurance Policy issued by a Qualified Insurer or (ii) the Mortgage
        Loan was insured as to payment defaults by a Lender Primary Mortgage Insurance
        Policy issued by a Qualified Insurer. No Mortgage Loan has an LTV over 95%.
        All
        provisions of such Primary Mortgage Insurance Policy or Lender Primary Mortgage
        Insurance Policy, as applicable, have been and are being complied with, such
        policy is in full force and effect, and all premiums due thereunder have
        been
        paid. No Mortgage Loan requires payment of such premiums, in whole or in
        part,
        by the Purchaser. No action, inaction, or event has occurred and no state
        of
        facts exists that has, or will result in the exclusion from, denial of, or
        defense to coverage. Any Mortgage Loan subject to a Primary Mortgage Insurance
        Policy obligates the Mortgagor thereunder to maintain the Primary Mortgage
        Insurance Policy, subject to state and federal law, and to pay all premiums
        and
        charges in connection therewith. Any Mortgage Loan subject to a Lender Primary
        Mortgage Insurance Policy obligates the Company to maintain the Lender Primary
        Mortgage Insurance Policy and to pay all premiums and charges in connection
        therewith. No action has been taken or failed to be taken, on or prior to
        the
        Closing Date which has resulted or will result in an exclusion from, denial
        of,
        or defense to coverage under any Primary Mortgage Insurance Policy or Lender
        Primary Mortgage Insurance Policy (including, without limitation, any
        exclusions, denials or defenses which would limit or reduce the availability
        of
        the timely payment of the full amount of the loss otherwise due thereunder
        to
        the insured) whether arising out of actions, representations, errors, omissions,
        negligence, or fraud of the Company or the Mortgagor, or for any other reason
        under such coverage; With respect to any Primary Mortgage Insurance Policy,
        the
        mortgage interest rate for the Mortgage Loan as set forth on the related
        Mortgage Loan Schedule is net of any such insurance premium;

      

      (ii) The
        Assignment is in recordable form and is acceptable for recording under the
        laws
        of the jurisdiction in which the Mortgaged Property is located;

      

      (jj) Unless
        otherwise specified in the related Term Sheet, none of the Mortgage Loans
        are
        secured by an interest in a leasehold estate. The Mortgaged Property is located
        in the state identified in the related Mortgage Loan Schedule and consists
        of a
        single parcel of real property with a detached single family residence erected
        thereon, or a townhouse, or a two-to four-family dwelling, or an individual
        condominium unit in a condominium project, or an individual unit in a planned
        unit development or a de minimis planned unit development, provided, however,
        that no residence or dwelling is a single parcel of real property with a
        manufactured home not affixed to a permanent foundation, or a mobile home.
        Any
        condominium unit or planned unit development conforms with the Company’s
        underwriting guidelines. As
        of the
        date of origination, no portion of any Mortgaged Property is used for commercial
        purposes, and since the Origination Date, no portion of any Mortgaged Property
        has been, or currently is, used for commercial purposes;

      

      (kk) Payments
        on the Mortgage Loan commenced no more than sixty (60) days after the funds
        were
        disbursed in connection with the Mortgage Loan. The Mortgage Note is payable
        on
        the first day of each month in monthly installments of principal and interest,
        which installments are subject to change due to the adjustments to the Mortgage
        Interest Rate on each Adjustment Date, with interest calculated and payable
        in
        arrears. Each of the Mortgage Loans will amortize fully by the stated maturity
        date, over an original term of not more than thirty years from commencement
        of
        amortization;

      

      (ll) As
        of the
        Closing Date of the Mortgage Loan, the Mortgage Property was lawfully occupied
        under applicable law, and all inspections, licenses and certificates required
        to
        be made or issued with respect to all occupied portions of the Mortgaged
        Property and, with respect to the use and occupancy of the same, including
        but
        not limited to certificates of occupancy and fire underwriting certificates,
        have been made or obtained from the appropriate authorities;

      

      (mm) There
        is
        no pending action or proceeding directly involving the Mortgaged Property
        in
        which compliance with any environmental law, rule or regulation is an issue;
        there is no violation of any environmental law, rule or regulation with respect
        to the Mortgaged Property; and the Company has not received any notice of
        any
        environmental hazard on the Mortgaged Property and nothing further remains
        to be
        done to satisfy in full all requirements of each such law, rule or regulation
        constituting a prerequisite to use and enjoyment of said property;

      

      (nn) The
        Mortgagor has not notified the Company, and the Company has no knowledge
        of any
        relief requested or allowed to the Mortgagor under the Soldiers' and Sailors'
        Civil Relief Act of 1940;

      

      (oo)
        No
        Mortgage Loan is a construction or rehabilitation Mortgage Loan or was made
        to
        facilitate the trade-in or exchange of a Mortgaged Property;

      

      (pp) The
        Mortgagor for each Mortgage Loan is a natural person;

      

      (qq) None
        of
        the Mortgage Loans are Co-op Loans; 

      

      (rr)
         With
        respect to each Mortgage Loan that has a prepayment penalty feature, each
        such
        prepayment penalty is enforceable and will be enforced by the Company and
        each
        prepayment penalty is permitted pursuant to federal, state and local law.
        No
        Mortgage Loan will impose a prepayment penalty for a term in excess of five
        years from the date such Mortgage Loan was originated. Except as otherwise
        set
        forth on the Mortgage Loan Schedule, with respect to each Mortgage Loan that
        contains a prepayment penalty, such prepayment penalty is at least equal
        to the
        lesser of (A) the maximum amount permitted under applicable law and (B) six
        months interest at the related Mortgage Interest Rate on the amount prepaid
        in
        excess of 20% of the original principal balance of such Mortgage
        Loan;

      

      (ss)
         With
        respect to each Mortgage Loan either (i) the fair market value of the Mortgaged
        Property securing such Mortgage Loan was at least equal to 80 percent of
        the
        original principal balance of such Mortgage Loan at the time such Mortgage
        Loan
        was originated or (ii) (a) the Mortgage Loan is only secured by the Mortgage
        Property and (b) substantially all of the proceeds of such Mortgage Loan
        were
        used to acquire or to improve or protect the Mortgage Property. For the purposes
        of the preceding sentence, if the Mortgage Loan has been significantly modified
        other than as a result of a default or a reasonable foreseeable default,
        the
        modified Mortgage Loan will be viewed as having been originated on the date
        of
        the modification;

      

      (tt)
        The
        Mortgage Loan was originated by a mortgagee approved by the Secretary of
        Housing
        and Urban Development pursuant to sections 203 and 211 of the National Housing
        Act, a savings and loan association, a savings bank, a commercial bank, credit
        union, insurance company or similar institution which is supervised and examined
        by a federal or state authority; 

      

      (uu)
        None
        of the Mortgage Loans are simple interest Mortgage Loans and none of the
        Mortgaged Properties are timeshares; 

      

      (vv)
        All
        of the terms of the Mortgage pertaining to interest rate adjustments, payment
        adjustments and adjustments of the outstanding principal balance are
        enforceable, all such adjustments have been properly made, including the
        mailing
        of required notices, and such adjustments do not and will not affect the
        priority of the Mortgage lien. With respect to each Mortgage Loan which has
        passed its initial Adjustment Date, Company has performed an audit of the
        Mortgage Loan to determine whether all interest rate adjustments have been
        made
        in accordance with the terms of the Mortgage Note and Mortgage; and

      

      (ww)
        Each
        Mortgage Note, each Mortgage, each Assignment and any other documents required
        pursuant to this Agreement to be delivered to the Purchaser or its designee,
        or
        its assignee for each Mortgage Loan, have been, on or before the related
        Closing
        Date, delivered to the Purchaser or its designee, or its assignee.

      

      Section
        3.03 Repurchase;
        Substitution.

      

      It
        is
        understood and agreed that the representations and warranties set forth in
        Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans and delivery
        of the Mortgage Loan Documents to the Purchaser, or its designee, and shall
        inure to the benefit of the Purchaser, notwithstanding any restrictive or
        qualified endorsement on any Mortgage Note or Assignment or the examination,
        or
        lack of examination, of any Mortgage File. Upon discovery by either the Company
        or the Purchaser of a breach of any of the foregoing representations and
        warranties which materially and adversely affects the value of the Mortgage
        Loans or the interest of the Purchaser in any Mortgage Loan, the party
        discovering such breach shall give prompt written notice to the other. The
        Company shall have a period of sixty (60) days from the earlier of its discovery
        or its receipt of notice of any such breach within which to correct or cure
        such
        breach. The Company hereby covenants and agrees that if any such breach is
        not
        corrected or cured within such sixty day period, the Company shall, at the
        Purchaser's option and not later than ninety (90) days of its discovery or
        its
        receipt of notice of such breach, repurchase such Mortgage Loan at the
        Repurchase Price or, with the Purchaser's prior consent and at Purchaser’s sole
        option, substitute a Mortgage Loan as provided below. In the event that any
        such
        breach shall involve any representation or warranty set forth in Section
        3.01,
        and such breach is not cured within sixty (60) days of the earlier of either
        discovery by or notice to the Company of such breach, all Mortgage Loans
        shall,
        at the option of the Purchaser, be repurchased by the Company at the Repurchase
        Price. Any such repurchase shall be accomplished by wire transfer of immediately
        available funds to Purchaser in the amount of the Repurchase Price.

      

      If
        the
        Company is required to repurchase any Mortgage Loan pursuant to this Section
        3.03, the Company may, with the Purchaser's prior consent and at Purchaser’s
        sole option, within ninety (90) days from the related Closing Date, remove
        such
        defective Mortgage Loan from the terms of this Agreement and substitute another
        mortgage loan for such defective Mortgage Loan, in lieu of repurchasing such
        defective Mortgage Loan. Any substitute Mortgage Loan is subject to Purchaser
        acceptability. Any substituted Loans will comply with the representations
        and
        warranties set forth in this Agreement as of the substitution date

      

      The
        Company shall amend the related Mortgage Loan Schedule to reflect the withdrawal
        of the removed Mortgage Loan from this Agreement and the substitution of
        such
        substitute Mortgage Loan therefor. Upon such amendment, the Purchaser shall
        review the Mortgage File delivered to it relating to the substitute Mortgage
        Loan. In the event of such a substitution, accrued interest on the substitute
        Mortgage Loan for the month in which the substitution occurs and any Principal
        Prepayments made thereon during such month shall be the property of the
        Purchaser and accrued interest for such month on the Mortgage Loan for which
        the
        substitution is made and any Principal Prepayments made thereon during such
        month shall be the property of the Company. The principal payment on a
        substitute Mortgage Loan due on the Due Date in the month of substitution
        shall
        be the property of the Company and the principal payment on the Mortgage
        Loan
        for which the substitution is made due on such date shall be the property
        of the
        Purchaser.

      

      It
        is
        understood and agreed that the obligation of the Company set forth in this
        Section 3.03 to cure, repurchase or substitute for a defective Mortgage Loan,
        and to indemnify Purchaser pursuant to Section 8.01, constitute the sole
        remedies of the Purchaser respecting a breach of the foregoing representations
        and warranties. If the Company fails to repurchase or substitute for a defective
        Mortgage Loan in accordance with this Section 3.03, or fails to cure a defective
        Mortgage Loan to Purchaser's reasonable satisfaction in accordance with this
        Section 3.03, or to indemnify Purchaser pursuant to Section 8.01, that failure
        shall be an Event of Default and the Purchaser shall be entitled to pursue
        all
        remedies available in this Agreement as a result thereof. No provision of
        this
        paragraph shall affect the rights of the Purchaser to terminate this Agreement
        for cause, as set forth in Sections 10.01 and 11.01.

      

      Any
        cause
        of action against the Company relating to or arising out of the breach of
        any
        representations and warranties made in Sections 3.01 and 3.02 shall accrue
        as to
        any Mortgage Loan upon (i) the earlier of discovery of such breach by the
        Company or notice thereof by the Purchaser to the Company, (ii) failure by
        the
        Company to cure such breach or repurchase such Mortgage Loan as specified
        above,
        and (iii) demand upon the Company by the Purchaser for compliance with this
        Agreement.

      

      In
        the
        event that any Mortgage Loan is held by a REMIC, notwithstanding any contrary
        provision of this Agreement, with respect to any Mortgage Loan that is not
        in
        default or as to which no default is imminent, no substitution pursuant to
        Subsection 3.03 shall be made after the applicable REMIC's "start up day"
        (as
        defined in Section 860G(a) (9) of the Code), unless the Company has obtained
        an
        Opinion of Counsel to the effect that such substitution will not (i) result
        in
        the imposition of taxes on "prohibited transactions" of such REMIC (as defined
        in Section 860F of the Code) or otherwise subject the REMIC to tax, or (ii)
        cause the REMIC to fail to qualify as a REMIC at any time.

      

      Section
        3.04 Representations
        and Warranties of the Purchaser.

       

      The
        Purchaser represents, warrants and convenants to the Company that, as of
        the
        related Closing Date or as of such date specifically provided
        herein:

      

      (a)  The
        Purchaser is a corporation, dully organized validly existing and in good
        standing under the laws of the State of Delaware and is qualified to transact
        business in, is in good standing under the laws of, and possesses all licenses
        necessary for the conduct of its business in, each state in which any Mortgaged
        Property is located or is otherwise except or not required under applicable
        law
        to effect such qualification or license;

      

      (b)  The
        Purchaser has full power and authority to hold each Mortgage Loan, to purchase
        each Mortgage Loan pursuant to this Agreement and the related Term Sheet
        and to
        execute, deliver and perform, and to enter into and consummate all transactions
        contemplated by this Agreement and the related Term Sheet and to conduct
        its
        business as presently conducted, has duly authorized the execution, delivery
        and
        performance of this Agreement and the related Term Sheet, has duly executed
        and
        delivered this Agreement and the related Term Sheet;

      

      (c) None
        of
        the execution and delivery of this Agreement and the related Term Sheet,
        the
        purchase of the Mortgage Loans, the consummation of the transactions
        contemplated hereby, or the fulfillment of or compliance with the terms and
        conditions of this Agreement and the related Term Sheet will conflict with
        any
        of the terms, conditions or provisions of the Purchaser’s charter or by-laws or
        materially conflict with or result in a material breach of any of the terms,
        conditions or provisions
        of any legal restriction or any agreement or instrument to which the Purchaser
        is now a party or by which it is bound, or constitute a default or result
        in an
        acceleration under any of the foregoing, or result in the material violation
        of
        any law, rule, regulation, order, judgment or decree to which the Purchaser
        or
        its property is subject;

      

      (d) There
        is
        no litigation pending or to the best of the Purchaser’s knowledge, threatened
        with respect to the Purchaser which is reasonably likely to have a material
        adverse effect on the purchase of the related Mortgage Loans, the execution,
        delivery or enforceability of this Agreement and the related Term Sheet,
        or
        which is reasonably likely to have a material adverse effect on the financial
        condition of the Purchaser;

      

      (e) No
        consent, approval, authorization or order of any court or governmental agency
        or
        body is required for the execution, delivery and performance by the Purchaser
        of
        or compliance by the Purchaser with this Agreement and the related Term Sheet,
        the purchase of the Mortgage Loans or the consummation of the transactions
        contemplated by this Agreement and the related Term Sheet except for consents,
        approvals, authorizations and orders which have been obtained;

      

      (f) The
        consummation of the transactions contemplated by this Agreement and the related
        Term Sheet is in the ordinary course of business of the Purchaser;

      

      (h) The
        Purchaser will treat the purchase of the Mortgage Loans from the Company
        as a
        purchase for reporting, tax and accounting purposes; and

      

      (i) The
        Purchaser does not believe, nor does it have any cause or reason to believe,
        that it cannot perform each and every of its covenants contained in this
        Agreement and the related Term Sheet.

      

      The
        Purchaser shall indemnify the Company and hold it harmless against any claims,
        proceedings, losses, damages, penalties, fines, forfeitures, reasonable and
        necessary legal fees and related costs, judgments, and other costs and expenses
        resulting from a breach by the Purchaser of the representations and warranties
        contained in this Section 3.04. It is understood and agreed that the obligations
        of the Purchaser set forth in this Section 3.04 to indemnify the Seller as
        provided herein constitute the sole remedies of the Seller respecting a breach
        of the foregoing representations and warranties.

      

      

      ARTICLE
        IV

      

      ADMINISTRATION
        AND SERVICING OF MORTGAGE LOANS

      

      Section
        4.01 Company
        to Act as Servicer.

      

      The
        Company, as independent contract servicer, shall service and administer the
        Mortgage Loans in accordance with this Agreement and the related Term Sheet
        and
        with Accepted Servicing Practices, and shall have full power and authority,
        acting alone, to do or cause to be done any and all things in connection
        with
        such servicing and administration which the Company may deem necessary or
        desirable and consistent with the terms of this Agreement and the related
        Term
        Sheet and with Accepted Servicing Practices and exercise the same care that
        it
        customarily employs for its own account. Except as set forth in this Agreement
        and the related Term Sheet, the Company shall service the Mortgage Loans
        in
        strict compliance with the servicing provisions of the Fannie Mae Guides
        (special servicing option), which include, but are not limited to, provisions
        regarding the liquidation of Mortgage Loans, the collection of Mortgage Loan
        payments, the payment of taxes, insurance and other charges, the maintenance
        of
        hazard insurance with a Qualified Insurer, the maintenance of mortgage
        impairment insurance, the maintenance of fidelity bond and errors and omissions
        insurance, inspections, the restoration of Mortgaged Property, the maintenance
        of Primary Mortgage Insurance Policies and Lender Primary Mortgage Insurance
        Policies, insurance claims, the title, management and disposition of REO
        Property, permitted withdrawals with respect to REO Property, liquidation
        reports, and reports of foreclosures and abandonments of Mortgaged Property,
        the
        transfer of Mortgaged Property, the release of Mortgage Files, annual
        statements, and examination of records and facilities. In the event of any
        conflict, inconsistency or discrepancy between any of the servicing provisions
        of this Agreement and the related Term Sheet and any of the servicing provisions
        of the Fannie Mae Guides, the provisions of this Agreement and the related
        Term
        Sheet shall control and be binding upon the Purchaser and the Company.

      

      Consistent
        with the terms of this Agreement and the related Term Sheet, the Company
        may
        waive, modify or vary any term of any Mortgage Loan or consent to the
        postponement of any such term or in any manner grant indulgence to any Mortgagor
        if in the Company's reasonable and prudent determination such waiver,
        modification, postponement or indulgence is not materially adverse to the
        Purchaser, provided, however, that unless the Company has obtained the prior
        written consent of the Purchaser, the Company shall not permit any modification
        with respect to any Mortgage Loan that would change the Mortgage Interest
        Rate,
        defer for more than ninety days or forgive any payment of principal or interest,
        reduce or increase the outstanding principal balance (except for actual payments
        of principal) or change the final maturity date on such Mortgage Loan. In
        the
        event of any such modification which has been agreed to in writing by the
        Purchaser and which permits the deferral of interest or principal payments
        on
        any Mortgage Loan, the Company shall, on the Business Day immediately preceding
        the Remittance Date in any month in which any such principal or interest
        payment
        has been deferred, deposit in the Custodial Account from its own funds, in
        accordance with Section 4.04, the difference between (a) such month's principal
        and one month's interest at the Mortgage Loan Remittance Rate on the unpaid
        principal balance of such Mortgage Loan and (b) the amount paid by the
        Mortgagor. The Company shall be entitled to reimbursement for such advances
        to
        the same extent as for all other advances pursuant to Section 4.05. Without
        limiting the generality of the foregoing, the Company shall continue, and
        is
        hereby authorized and empowered, to prepare, execute and deliver, all
        instruments of satisfaction or cancellation, or of partial or full release,
        discharge and all other comparable instruments, with respect to the Mortgage
        Loans and with respect to the Mortgaged Properties. Notwithstanding anything
        herein to the contrary, the Company may not enter into a forbearance agreement
        or similar arrangement with respect to any Mortgage Loan which runs more
        than
        180 days after the first delinquent Due Date. Any such agreement shall be
        approved by Purchaser and, if required, by the Primary Mortgage Insurance
        Policy
        insurer and Lender Primary Mortgage Insurance Policy insurer, if required.
        

      

      Notwithstanding
        anything in this Agreement to the contrary, if any Mortgage Loan becomes
        subject
        to a Pass-Through Transfer, the Company (a) with respect to such Mortgage
        Loan,
        shall not permit any modification with respect to such Mortgage Loan that
        would
        change the Mortgage Interest Rate and (b) shall not (unless the Mortgagor
        is in
        default with respect to such Mortgage Loan or such default is, in the judgment
        of the Company, reasonably foreseeable) make or permit any modification,
        waiver
        or amendment of any term of such Mortgage Loan that would both (i) effect
        an
        exchange or reissuance of such Mortgage Loan under Section 1001 of the Code
        (or
        Treasury regulations promulgated thereunder) and (ii) cause any REMIC to
        fail to
        qualify as a REMIC under the Code or the imposition of any tax on “prohibited
        transactions” or “contriburions” after the startup date under the REMIC
        Provisions.

      

      Prior
        to
        taking any action with respect to the Mortgage Loans subject to a Pass-Through
        Transfer, which is not contemplated under the terms of this Agreement, the
        Company will obtain an Opinion of Counsel acceptable to the trustee in such
        Pass-Through Transfer with respect to whether such action could result in
        the
        imposition of a tax upon any REMIC (including but not limited to the tax
        on
        prohibited transactions as defined in Section 860F(a)(2) of the Code and
        the tax
        on contributions to a REMIC set forth in Section 860G(d) of the Code)(either
        such event, an “Adverse REMIC Event”), and the Company shall not take any such
        actions as to which it has been advised that an Adverse REMIC Event could
        occur.

      

      The
        Company shall not permit the creation of any “interests” (within the meaning of
        Section 860G of the Code) in any REMIC. The Company shall not enter into
        any
        arrangement by which a REMIC will receive a fee or other compensation for
        services nor permit a REMIC to receive any income from assets other than
        “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
        investments” as defined in Section 860G(a)(5) of the Code.

      

      In
        servicing and administering the Mortgage Loans, the Company shall employ
        Accepted Servicing Practices, giving due consideration to the Purchaser's
        reliance on the Company. Unless a different time period is stated in this
        Agreement or the related Term Sheet, Purchaser shall be deemed to have given
        consent in connection with a particular matter if Purchaser does not
        affirmatively grant or deny consent within five (5) Business Days from the
        date
        Purchaser receives a second written request for consent for such matter from
        Company as servicer. 

      

      The
        Mortgage Loans may be subserviced by a Subservicer on behalf of the Company
        provided that the Subservicer is an entity that engages in the business of
        servicing loans, and in either case shall be authorized to transact business,
        and licensed to service mortgage loans, in the state or states where the
        related
        Mortgaged Properties it is to service are situated, if and to the extent
        required by applicable law to enable the Subservicer to perform its obligations
        hereunder and under the Subservicing Agreement, and in either case shall
        be a
        FHLMC or Fannie Mae approved mortgage servicer in good standing, and no event
        has occurred, including but not limited to a change in insurance coverage,
        which
        would make it unable to comply with the eligibility requirements for lenders
        imposed by Fannie Mae or for seller/servicers imposed by Fannie Mae or FHLMC,
        or
        which would require notification to Fannie Mae or FHLMC. In addition, each
        Subservicer will obtain and preserve its qualifications to do business as
        a
        foreign corporation and its licenses to service mortgage loans, in each
        jurisdiction in which such qualifications and/or licenses are or shall be
        necessary to protect the validity and enforceability of this Agreement, or
        any
        of the Mortgage Loans and to perform or cause to be performed its duties
        under
        the related Subservicing Agreement. The Company may perform any of its servicing
        responsibilities hereunder or may cause the Subservicer to perform any such
        servicing responsibilities on its behalf, but the use by the Company of the
        Subservicer shall not release the Company from any of its obligations hereunder
        and the Company shall remain responsible hereunder for all acts and omissions
        of
        the Subservicer as fully as if such acts and omissions were those of the
        Company. The Company shall pay all fees and expenses of the Subservicer from
        its
        own funds, and the Subservicer's fee shall not exceed the Servicing Fee.
        Company
        shall notify Purchaser promptly in writing upon the appointment of any
        Subservicer.

      

      At
        the
        cost and expense of the Company, without any right of reimbursement from
        the
        Custodial Account, the Company shall be entitled to terminate the rights
        and
        responsibilities of the Subservicer and arrange for any servicing
        responsibilities to be performed by a successor subservicer meeting the
        requirements in the preceding paragraph, provided, however, that nothing
        contained herein shall be deemed to prevent or prohibit the Company, at the
        Company's option, from electing to service the related Mortgage Loans itself.
        In
        the event that the Company's responsibilities and duties under this Agreement
        are terminated pursuant to Section 4.13, 8.04, 9.01 or 10.01 and if requested
        to
        do so by the Purchaser, the Company shall at its own cost and expense terminate
        the rights and responsibilities of the Subservicer effective as of the date
        of
        termination of the Company. The Company shall pay all fees, expenses or
        penalties necessary in order to terminate the rights and responsibilities
        of the
        Subservicer from the Company's own funds without reimbursement from the
        Purchaser.

      

      Notwithstanding
        any of the provisions of this Agreement relating to agreements or arrangements
        between the Company and the Subservicer or any reference herein to actions
        taken
        through the Subservicer or otherwise, the Company shall not be relieved of
        its
        obligations to the Purchaser and shall be obligated to the same extent and
        under
        the same terms and conditions as if it alone were servicing and administering
        the Mortgage Loans. The Company shall be entitled to enter into an agreement
        with the Subservicer for indemnification of the Company by the Subservicer
        and
        nothing contained in this Agreement shall be deemed to limit or modify such
        indemnification. The Company will indemnify and hold Purchaser harmless from
        any
        loss, liability or expense arising out of its use of a Subservicer to perform
        any of its servicing duties, responsibilities and obligations
        hereunder.

      

      Any
        Subservicing Agreement and any other transactions or services relating to
        the
        Mortgage Loans involving the Subservicer shall be deemed to be between the
        Subservicer and Company alone, and the Purchaser shall have no obligations,
        duties or liabilities with respect to the Subservicer including no obligation,
        duty or liability of Purchaser to pay the Subservicer's fees and expenses.
        For
        purposes of distributions and advances by the Company pursuant to this
        Agreement, the Company shall be deemed to have received a payment on a Mortgage
        Loan when the Subservicer has received such payment.

      

      Section
        4.02 Collection
        of Mortgage Loan Payments.

      

      Continuously
        from the date hereof until the date each Mortgage Loan ceases to be subject
        to
        this Agreement, the Company will proceed diligently to collect all payments
        due
        under each Mortgage Loan when the same shall become due and payable and shall,
        to the extent such procedures shall be consistent with this Agreement, Accepted
        Servicing Practices, and the terms and provisions of any related Primary
        Mortgage Insurance Policy and Lender Primary Mortgage Insurance Policy, follow
        such collection procedures as it follows with respect to mortgage loans
        comparable to the Mortgage Loans and held for its own account. Further, the
        Company will take special care in ascertaining and estimating annual escrow
        payments, and all other charges that, as provided in the Mortgage, will become
        due and payable, so that the installments payable by the Mortgagors will
        be
        sufficient to pay such charges as and when they become due and
        payable.

      

      In
        no
        event will the Company waive its right to any prepayment penalty or premium
        without the prior written consent of Purchaser and Company will use diligent
        efforts to collect same when due except as otherwise provided in the prepayment
        penalty rider to the Mortgage. 

      

      Section
        4.03 Realization
        Upon Defaulted Mortgage

      

      The
        Company shall use its best efforts, consistent with the procedures that the
        Company would use in servicing loans for its own account, consistent with
        Accepted Servicing Practices, any Primary Mortgage Insurance Policies and
        Lender
        Primary Mortgage Insurance Policies and the best interest of Purchaser, to
        foreclose upon or otherwise comparably convert the ownership of properties
        securing such of the Mortgage Loans as come into and continue in default
        and as
        to which no satisfactory arrangements can be made for collection of delinquent
        payments pursuant to Section 4.01. Foreclosure or comparable proceedings
        shall
        be initiated or a notice of default sent within ninety (90) days of default
        for
        Mortgaged Properties for which no satisfactory arrangements can be made for
        collection of delinquent payments, subject to state and federal law and
        regulation. The Company shall use its best efforts to realize upon defaulted
        Mortgage Loans in such manner as will maximize the receipt of principal and
        interest by the Purchaser, taking into account, among other things, the timing
        of foreclosure proceedings. The foregoing is subject to the provisions that,
        in
        any case in which a Mortgaged Property shall have suffered damage, the Company
        shall not be required to expend its own funds toward the restoration of such
        property unless it shall determine in its discretion (i) that such restoration
        will increase the proceeds of liquidation of the related Mortgage Loan to
        the
        Purchaser after reimbursement to itself for such expenses, and (ii) that
        such
        expenses will be recoverable by the Company through Insurance Proceeds or
        Liquidation Proceeds from the related Mortgaged Property, as contemplated
        in
        Section 4.05. Company shall obtain prior approval of Purchaser as to repair
        or
        restoration expenses in excess of ten thousand dollars ($10,000). The Company
        shall notify the Purchaser in writing of the commencement of foreclosure
        proceedings. The Company shall be responsible for all costs and expenses
        incurred by it in any such proceedings or functions; provided, however, that
        it
        shall be entitled to reimbursement thereof from the related property, as
        contemplated in Section 4.05. 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 Company has reasonable cause to believe that
        a
        Mortgaged Property is contaminated by hazardous or toxic substances or wastes,
        or if the Purchaser otherwise requests an environmental inspection or review
        of
        such Mortgaged Property, such an inspection or review is to be conducted
        by a
        qualified inspector at the Purchaser's expense. Upon completion of the
        inspection, the Company shall promptly provide the Purchaser with a written
        report of the environmental inspection. After reviewing the environmental
        inspection report, the Purchaser shall determine how the Company shall proceed
        with respect to the Mortgaged Property. 

      

      Notwithstanding
        anything to the contrary contained herein, the Purchaser may, at the Purchaser's
        sole option, terminate the Company as servicer of any Mortgage Loan which
        becomes ninety (90) days or greater delinquent in payment of a scheduled
        Monthly
        Payment, without payment of any termination fee with respect thereto, provided
        that the Company shall on the date said termination takes effect be reimbursed
        for any unreimbursed advances of the Company's funds made pursuant to Section
        5.03 and any unreimbursed Servicing Advances and Servicing Fees in each case
        relating to the Mortgage Loan underlying such delinquent Mortgage Loan
        notwithstanding anything to the contrary set forth in Section 4.05. In the
        event
        of any such termination, the provisions of Section 11.01 hereof shall apply
        to
        said termination and the transfer of servicing responsibilities with respect
        to
        such delinquent Mortgage Loan to the Purchaser or its designee.

      

      In
        the
        event that a Mortgage Loan becomes part of a REMIC, and becomes REO Property,
        such property shall be disposed of by the Company, with the consent of Purchaser
        as required pursuant to this Agreement, before the close of the third taxable
        year following the taxable year in which the Mortgage Loan became an REO
        Property, unless the Company provides to the trustee under such REMIC an
        opinion
        of counsel to the effect that the holding of such REO Property subsequent
        to the
        close of the third taxable year following the taxable year in which the Mortgage
        Loan became an REO Property, will not result in the imposition of taxes on
        "prohibited transactions" as defined in Section 860F of the Code, or cause
        the
        transaction to fail to qualify as a REMIC at any time that certificates are
        outstanding. Company shall manage, conserve, protect and operate each such
        REO
        Property for the certificateholders solely for the purpose of its prompt
        disposition and sale in a manner which does not cause such property to fail
        to
        qualify as "foreclosure property" within the meaning of Section 860F(a)(2)(E)
        of
        the Code, or any "net income from foreclosure property" which is subject
        to
        taxation under the REMIC provisions of the Code. Pursuant to its efforts
        to sell
        such property, the Company shall either itself or through an agent selected
        by
        Company, protect and conserve such property in the same manner and to such
        an
        extent as is customary in the locality where such property is located.

      

      Section
        4.04 Establishment
        of Custodial Accounts; Deposits in
        Custodial Accounts.

      

      The
        Company shall segregate and hold all funds collected and received pursuant
        to
        each Mortgage Loan separate and apart from any of its own funds and general
        assets and shall establish and maintain one or more Custodial Accounts. The
        Custodial Account shall be an Eligible Account. Funds
        deposited in the Custodial Account, which shall be deposited within 24 hours
        of
        receipt, shall at all times be insured by the FDIC up to the FDIC insurance
        limits, or must be invested in Permitted Investments for the benefit of the
        Purchaser. Funds
        deposited in the Custodial Account may be drawn on by the Company in accordance
        with Section 4.05. The creation of any Custodial Account shall be evidenced
        by a
        letter agreement in the form shown in Exhibit B hereto. The original of such
        letter agreement shall be furnished to the Purchaser on the Closing Date,
        and
        upon the request of any subsequent Purchaser.

      

      The
        Company shall deposit in the Custodial Account on a daily basis, and retain
        therein the following payments and collections received or made by it subsequent
        to the Cut-off Date, or received by it prior to the Cut-off Date but allocable
        to a period subsequent thereto, other than in respect of principal and interest
        on the Mortgage Loans due on or before the Cut-off Date:

      

      (i) all
        payments on account of principal, including Principal Prepayments on the
        Mortgage Loans;

      

      (ii)
        all
        payments on account of interest on the Mortgage Loans adjusted to the Mortgage
        Loan Remittance Rate;

      

      (iii)
        all
        Liquidation Proceeds;

      

      (iv)
        any
        amounts required to be deposited by the Company in connection with any REO
        Property pursuant to Section 4.13 and in connection therewith, the Company
        shall
        provide the Purchaser with written detail itemizing all of such
        amounts;

      

      (v)
        all
        Insurance Proceeds including amounts required to be deposited pursuant to
        Sections 4.08, 4.10 and 4.11, other than proceeds to be held in the Escrow
        Account and applied to the restoration or repair of the Mortgaged Property
        or
        released to the Mortgagor in accordance with Accepted Servicing Practices,
        the
        Mortgage Loan Documents or applicable law;

      

      (vi)
        all
        Condemnation Proceeds affecting any Mortgaged Property which are not released
        to
        the Mortgagor in accordance with Accepted Servicing Practices, the loan
        documents or applicable law;

      

      (vii)
        any
        Monthly Advances;

      

      (viii)
        with
        respect to each full or partial Principal Prepayment, any Prepayment Interest
        Shortfalls, to the extent of the Company’s aggregate Servicing Fee received with
        respect to the related Prepayment Period;

      

      (ix)
        any
        amounts required to be deposited by the Company pursuant to Section 4.10
        in
        connection with the deductible clause in any blanket hazard insurance policy,
        such deposit shall be made from the Company's own funds, without reimbursement
        therefor; and

      

      (x)
        any
        amounts required to be deposited in the Custodial Account pursuant to Section
        4.01, 4.13 or 6.02.

      

      The
        foregoing requirements for deposit in the Custodial 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 and assumption
        fees,
        to the extent permitted by Section 6.01, need not be deposited by the Company
        in
        the Custodial Account. Any interest paid on funds deposited in the Custodial
        Account by the depository institution shall accrue to the benefit of the
        Company
        and the Company shall be entitled to retain and withdraw such interest from
        the
        Custodial Account pursuant to Section 4.05 (iv). The
        Purchaser shall not be responsible for any losses suffered with respect to
        investment of funds in the Custodial Account.

       

      Section
        4.05 Permitted
        Withdrawals From the Custodial Account.

      

      The
        Company may, from time to time, withdraw from the Custodial Account for the
        following purposes:

      

      (i) to
        make
        payments to the Purchaser in the amounts and in the manner provided for in
        Section 5.01;

      

      (ii)
        to
        reimburse itself for Monthly Advances, the Company's right to reimburse itself
        pursuant to this subclause (ii) being limited to amounts received on the
        related
        Mortgage Loan which represent late collections (net of the related Servicing
        Fees) of principal and/or interest respecting which any such advance was
        made,
        it being understood that, in the case of such reimbursement, the Company's
        right
        thereto shall be prior to the rights of the Purchaser, except that, where
        the
        Company is required to repurchase a Mortgage Loan, pursuant to Section 3.03,
        the
        Company's right to such reimbursement shall be subsequent to the payment
        to the
        Purchaser of the Repurchase Price pursuant to such Section and all other
        amounts
        required to be paid to the Purchaser with respect to such Mortgage
        Loan;

      

      (iii)
        to
        reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing
        Fees(or REO administration fees described in Section 4.13), the Company's
        right
        to reimburse itself pursuant to this subclause (iii) with respect to any
        Mortgage Loan being limited to related proceeds from Liquidation Proceeds,
        Condemnation Proceeds and Insurance Proceeds in accordance with the relevant
        provisions of the Fannie Mae Guides or as otherwise set forth in this Agreement;
        any recovery shall be made upon liquidation of the REO Property; 

      

      (iv) to
        pay to
        itself as part of its servicing compensation (a) any interest earned on funds
        in
        the Custodial Account (all such interest to be withdrawn monthly not later
        than
        each Remittance Date), and (b) the Servicing Fee from that portion of any
        payment or recovery as to interest with respect to a particular Mortgage
        Loan;

      

      (v) to
        pay to
        itself with respect to each Mortgage Loan that has been repurchased pursuant
        to
        Section 3.03 all amounts received thereon and not distributed as of the date
        on
        which the related repurchase price is determined,

      

      (vi) to

        transfer funds to another Eligible Account in accordance with Section 4.09
        hereof;

      

      (vii) to
        remove
        funds inadvertently placed in the Custodial Account by the Company;
        and

      

      (vi) to
        clear
        and terminate the Custodial Account upon the termination of this
        Agreement.

      

      

      Section
        4.06 Establishment
        of Escrow Accounts; Deposits
        in Escrow Accounts.

      

      The
        Company shall segregate and hold all funds collected and received pursuant
        to
        each Mortgage Loan which constitute Escrow Payments separate and apart from
        any
        of its own funds and general assets and shall establish and maintain one
        or more
        Escrow Accounts. The Escrow Account shall be an Eligible Account. Funds
        deposited in each Escrow Account shall at all times be insured in a manner
        to
        provide maximum insurance under the insurance limitations of the FDIC, or
        must
        be invested in Permitted Investments. Funds
        deposited in the Escrow Account may be drawn on by the Company in accordance
        with Section 4.07. The creation of any Escrow Account shall be evidenced
        by a
        letter agreement in the form shown in Exhibit C. The original of such letter
        agreement shall be furnished to the Purchaser on the Closing Date, and upon
        request to any subsequent purchaser.

      

      The
        Company shall deposit in the Escrow Account or Accounts on a daily basis,
        and
        retain therein:

      

      (i) all
        Escrow Payments collected on account of the Mortgage Loans, for the purpose
        of
        effecting timely payment of any such items as required under the terms of
        this
        Agreement;

      

      (ii) all
        Insurance Proceeds which are to be applied to the restoration or repair of
        any
        Mortgaged Property; and

      

      (iii) all
        Servicing Advances for Mortgagors whose Escrow Payments are insufficient
        to
        cover escrow disbursements.

      

      The
        Company shall make withdrawals from the Escrow Account only to effect such
        payments as are required under this Agreement, and for such other purposes
        as
        shall be as set forth or in accordance with Section 4.07. The Company shall
        be
        entitled to retain any interest paid on funds deposited in the Escrow Account
        by
        the depository institution other than interest on escrowed funds required
        by law
        to be paid to the Mortgagor and, to the extent required by law, the Company
        shall pay interest on escrowed funds to the Mortgagor notwithstanding that
        the
        Escrow Account is non-interest bearing or that interest paid thereon is
        insufficient for such purposes. The
        Purchaser shall not be responsible for any losses suffered with respect to
        investment of funds in the Escrow Account.

      

      

      Section
        4.07 Permitted
        Withdrawals From Escrow Account.

      

      Withdrawals
        from the Escrow Account may be made by Company only:

      

      (i) to
        effect
        timely payments of ground rents, taxes, assessments, water rates, Primary
        Mortgage Insurance Policy premiums, if applicable, fire and hazard insurance
        premiums, condominium assessments and comparable items;

      

      (ii) to
        reimburse Company for any Servicing Advance made by Company with respect
        to a
        related Mortgage Loan but only from amounts received on the related Mortgage
        Loan which represent late payments or collections of Escrow Payments
        thereunder;

      

      (iii) to
        refund
        to the Mortgagor any funds as may be determined to be overages;

      

      (iv) for
        transfer to the Custodial Account in accordance with the terms of this
        Agreement;

      

      (v) for
        application to restoration or repair of the Mortgaged Property;

      

      (vi) to
        pay to
        the Company, or to the Mortgagor to the extent required by law, any interest
        paid on the funds deposited in the Escrow Account;

      

      (vii)
         to
        clear
        and terminate the Escrow Account on the termination of this Agreement. As
        part
        of its servicing duties, the Company shall pay to the Mortgagors interest
        on
        funds in Escrow Account, to the extent required by law, and to the extent
        that
        interest earned on funds in the Escrow Account is insufficient, shall pay
        such
        interest from its own funds, without any reimbursement therefor;
        and

      

      (viii)
        to
        pay to the Mortgagors or other parties Insurance Proceeds deposited in
        accordance with Section 4.06.

      

      Section
        4.08 Payment
        of Taxes, Insurance and Other Charges; Maintenance of Primary
Mortgage
        Insurance
        Policies; Collections Thereunder.

       

      With
        respect to each Mortgage Loan, the Company shall maintain accurate records
        reflecting the status of ground rents, taxes, assessments, water rates and
        other
        charges which are or may become a lien upon the Mortgaged Property and the
        status of primary mortgage insurance premiums and fire and hazard insurance
        coverage and shall obtain, from time to time, all bills for the payment of
        such
        charges, including renewal premiums and shall effect payment thereof prior
        to
        the applicable penalty or termination date and at a time appropriate for
        securing maximum discounts allowable, employing for such purpose deposits
        of the
        Mortgagor in the Escrow Account which shall have been estimated and accumulated
        by the Company in amounts sufficient for such purposes, as allowed under
        the
        terms of the Mortgage or applicable law. To the extent that the Mortgage
        does
        not provide for Escrow Payments, the Company shall determine that any such
        payments are made by the Mortgagor at the time they first become due. The
        Company assumes full responsibility for the timely payment of all such bills
        and
        shall effect timely 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.

      

      The
        Company will maintain in full force and effect Primary Mortgage Insurance
        Policies and Lender Primary Mortgage Insurance Policies issued by a Qualified
        Insurer with respect to each Mortgage Loan for which such coverage is herein
        required. Such coverage will be terminated only with the approval of Purchaser,
        or as required by applicable law or regulation. The Company will not cancel
        or
        refuse to renew any Primary Mortgage Insurance Policy or Lender Primary Mortgage
        Insurance Policy in effect on the Closing Date that is required to be kept
        in
        force under this Agreement unless a replacement Primary Mortgage Insurance
        Policy or Lender Primary Mortgage Insurance Policy for such canceled or
        nonrenewed policy is obtained from and maintained with a Qualified Insurer.
        The
        Company shall not take any action which would result in non-coverage under
        any
        applicable Primary Mortgage Insurance Policy or Lender Primary Mortgage
        Insurance Policy of any loss which, but for the actions of the Company would
        have been covered thereunder. In connection with any assumption or substitution
        agreement entered into or to be entered into pursuant to Section 6.01, the
        Company shall promptly notify the insurer under the related Primary Mortgage
        Insurance Policy or Lender Primary Mortgage Insurance Policy, if any, of
        such
        assumption or substitution of liability in accordance with the terms of such
        policy and shall take all actions which may be required by such insurer as
        a
        condition to the continuation of coverage under the Primary Mortgage Insurance
        Policy or Lender Primary Mortgage Insurance Policy. If such Primary Mortgage
        Insurance Policy or Lender Primary Mortgage Insurance Policy is terminated
        as a
        result of such assumption or substitution of liability, the Company shall
        obtain
        a replacement Primary Mortgage Insurance Policy or Lender Primary Mortgage
        Insurance Policy as provided above.

      

      In
        connection with its activities as servicer, the Company agrees to prepare
        and
        present, on behalf of itself and the Purchaser, claims to the insurer under
        any
        Primary Mortgage Insurance Policy or Lender Primary Mortgage Insurance Policy
        in
        a timely fashion in accordance with the terms of such Primary Mortgage Insurance
        Policy or Lender Primary Mortgage Insurance Policy and, in this regard, to
        take
        such action as shall be necessary to permit recovery under any Primary Mortgage
        Insurance Policy or Lender Primary Mortgage Insurance Policy respecting a
        defaulted Mortgage Loan. Pursuant to Section 4.04, any amounts collected
        by the
        Company under any Primary Mortgage Insurance Policy or Lender Primary Mortgage
        Insurance Policy shall be deposited in the Custodial Account, subject to
        withdrawal pursuant to Section 4.05.

      

      Section
        4.09 Transfer
        of Accounts.

      

      The
        Company may transfer the Custodial Account or the Escrow Account to a different
        Eligible Account from time to time. Such transfer shall be made only upon
        obtaining the prior written consent of the Purchaser, which consent will
        not be
        unreasonably withheld.

      

      Section
        4.10 Maintenance
        of Hazard Insurance.

      

      The
        Company shall cause to be maintained for each Mortgage Loan fire and hazard
        insurance with extended coverage as is acceptable to Fannie Mae or FHLMC
        and
        customary in the area where the Mortgaged Property is located in an amount
        which
        is equal to the lesser of (i) the maximum insurable value of the improvements
        securing such Mortgage Loan or (ii) the greater of (a) the outstanding principal
        balance of the Mortgage Loan, and (b) an amount such that the proceeds thereof
        shall be sufficient to prevent the Mortgagor and/or the mortgagee from becoming
        a co-insurer. If required by the Flood Disaster Protection Act of 1973, as
        amended, each Mortgage Loan shall be covered by a flood insurance policy
        meeting
        the requirements of the current guidelines of the Federal Insurance
        Administration in effect with an insurance carrier acceptable to Fannie Mae
        or
        FHLMC, in an amount representing coverage not less than the least of (i)
        the
        outstanding principal balance of the Mortgage Loan, (ii) the maximum insurable
        value of the improvements securing such Mortgage Loan or (iii) the maximum
        amount of insurance which is available under the Flood Disaster Protection
        Act
        of 1973, as amended. If at any time during the term of the Mortgage Loan,
        the
        Company determines in accordance with applicable law and pursuant to the
        Fannie
        Mae Guides that a Mortgaged Property is located in a special flood hazard
        area
        and is not covered by flood insurance or is covered in an amount less than
        the
        amount required by the Flood Disaster Protection Act of 1973, as amended,
        the
        Company shall notify the related Mortgagor that the Mortgagor must obtain
        such
        flood insurance coverage, and if said Mortgagor fails to obtain the required
        flood insurance coverage within forty-five (45) days after such notification,
        the Company shall immediately force place the required flood insurance on
        the
        Mortgagor’s behalf. The Company shall also maintain on each REO Property, fire
        and hazard insurance with extended coverage in an amount which is at least
        equal
        to the maximum insurable value of the improvements which are a part of such
        property, and, to the extent required and available under the Flood Disaster
        Protection Act of 1973, as amended, flood insurance in an amount as provided
        above. Any amounts collected by the Company under any such policies other
        than
        amounts to be deposited in the Escrow Account and applied to the restoration
        or
        repair of the Mortgaged Property or REO Property, or released to the Mortgagor
        in accordance with Accepted Servicing Practices, shall be deposited in the
        Custodial Account, subject to withdrawal pursuant to Section 4.05. It is
        understood and agreed that no other additional insurance need be required
        by the
        Company of the Mortgagor or maintained on property acquired in respect of
        the
        Mortgage Loan, other than pursuant to this Agreement, the Fannie Mae Guides
        or
        such applicable state or federal laws and regulations as shall at any time
        be in
        force and as shall require such additional insurance. All such policies shall
        be
        endorsed with standard mortgagee clauses with loss payable to the Company
        and
        its successors and/or assigns and shall provide for at least thirty days
        prior
        written notice of any cancellation, reduction in the amount or material change
        in coverage to the Company. The Company shall not interfere with the Mortgagor's
        freedom of choice in selecting either his insurance carrier or agent, provided,
        however, that the Company shall not accept any such insurance policies from
        insurance companies unless such companies are Qualified Insurers.

      

      Section
        4.11 Maintenance
        of Mortgage Impairment Insurance
        Policy.

      

      In
        the
        event that the Company shall obtain and maintain a blanket policy issued
        by an
        insurer acceptable to Fannie Mae or FHLMC insuring against hazard losses
        on all
        of the Mortgage Loans, then, to the extent such policy provides coverage
        in an
        amount equal to the amount required pursuant to Section 4.10 and otherwise
        complies with all other requirements of Section 4.10, it shall conclusively
        be
        deemed to have satisfied its obligations as set forth in Section 4.10, it
        being
        understood and agreed that such policy may contain a deductible clause, in
        which
        case the Company shall, in the event that there shall not have been maintained
        on the related Mortgaged Property or REO Property a policy complying with
        Section 4.10, and there shall have been a loss which would have been covered
        by
        such policy, deposit in the Custodial Account the amount not otherwise payable
        under the blanket policy because of such deductible clause. In connection
        with
        its activities as servicer of the Mortgage Loans, the Company agrees to prepare
        and present, on behalf of the Purchaser, claims under any such blanket policy
        in
        a timely fashion in accordance with the terms of such policy. Upon request
        of
        the Purchaser, the Company shall cause to be delivered to the Purchaser a
        certified true copy of such policy and shall use its best efforts to obtain
        a
        statement from the insurer thereunder that such policy shall in no event
        be
        terminated or materially modified without thirty (30) days' prior written
        notice
        to the Purchaser.

      

      Section
        4.12 Fidelity
        Bond, Errors and Omissions Insurance.

      

      The
        Company shall maintain, at its own expense, a blanket fidelity bond and an
        errors and omissions insurance policy, with broad coverage with responsible
        companies on all officers, employees or other persons acting in any capacity
        with regard to the Mortgage Loan to handle funds, money, documents and papers
        relating to the Mortgage Loan. The Fidelity Bond shall be in the form of
        the
        Mortgage Banker's Blanket Bond and shall protect and insure the Company against
        losses, including forgery, theft, embezzlement and fraud of such persons.
        The
        errors and omissions insurance shall protect and insure the Company against
        losses arising out of errors and omissions and negligent acts of such persons.
        Such errors and omissions insurance shall also protect and insure the Company
        against losses in connection with the failure to maintain any insurance policies
        required pursuant to this Agreement and the release or satisfaction of a
        Mortgage Loan without having obtained payment in full of the indebtedness
        secured thereby. No provision of this Section 4.12 requiring the Fidelity
        Bond
        or errors and omissions insurance shall diminish or relieve the Company from
        its
        duties and obligations as set forth in this Agreement. The minimum coverage
        under any such bond and insurance policy shall be at least equal to the
        corresponding amounts required by Fannie Mae in the Fannie Mae Guides. Upon
        request by the Purchaser, the Company shall deliver to the Purchaser a
        certificate from the surety and the insurer as to the existence of the Fidelity
        Bond and errors and omissions insurance policy and shall obtain a statement
        from
        the surety and the insurer that such Fidelity Bond or insurance policy shall
        in
        no event be terminated or materially modified without thirty (30) days' prior
        written notice to the Purchaser. The Company shall notify the Purchaser within
        five (5) business days of receipt of notice that such Fidelity Bond or insurance
        policy will be, or has been, materially modified or terminated. The Purchaser
        (or any party having the status of Purchaser hereunder) and any subsidiary
        thereof and their successors or assigns as their interests may appear must
        be
        named as loss payees on the Fidelity Bond and as additional insured on the
        errors and omissions policy. Upon request by Purchaser, Company shall provide
        Purchaser with an insurance certificate certifying coverage under this Section
        4.12, and will provide an update to such certificate upon request, or upon
        renewal or material modification of coverage.

      

      Section
        4.13 Title,
        Management and Disposition of REO Property.

      

      In
        the
        event that title to the Mortgaged Property is acquired in foreclosure or
        by deed
        in lieu of foreclosure, the deed or certificate of sale shall be taken in
        the
        name of the Purchaser or its designee, or in the event the Purchaser or its
        designee is not authorized or permitted to hold title to real property in
        the
        state where the REO Property is located, or would be adversely affected under
        the "doing business" or tax laws of such state by so holding title, the deed
        or
        certificate of sale shall be taken in the name of such Person or Persons
        as
        shall be consistent with an opinion of counsel obtained by the Company from
        an
        attorney duly licensed to practice law in the state where the REO Property
        is
        located. Any Person or Persons holding such title other than the Purchaser
        shall
        acknowledge in writing that such title is being held as nominee for the benefit
        of the Purchaser.

      

      The
        Company shall notify the Purchaser in accordance with the Fannie Mae Guides
        of
        each acquisition of REO Property upon such acquisition (and, in any event,
        shall
        provide notice of the consummation of any foreclosure sale within three (3)
        Business Days of the date Company receives notice of such consummation),
        together with a copy of the drive by appraisal or brokers price opinion of
        the
        Mortgaged Property obtained in connection with such acquisition, and thereafter
        assume the responsibility for marketing such REO property in accordance with
        Accepted Servicing Practices. Thereafter, the Company shall continue to provide
        certain administrative services to the Purchaser relating to such REO Property
        as set forth in this Section 4.13. The fee for such administrative services
        shall be $2,000 to be paid upon liquidation of the REO Property. No Servicing
        Fee shall be assessed or otherwise accrue on any REO Property from and after
        the
        date on which it becomes an REO Property. 

      

      The
        Company shall, either itself or through an agent selected by the Company,
        and in
        accordance with the Fannie Mae Guides manage, conserve, protect and operate
        each
        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
        Company shall cause each REO Property to be inspected promptly upon the
        acquisition of title thereto and shall cause each REO Property to be inspected
        at least monthly thereafter or more frequently as required by the circumstances.
        The Company shall make or cause to be made a written report of each such
        inspection. Such reports shall be retained in the Mortgage File and copies
        thereof shall be forwarded by the Company to the Purchaser.

      

      The
        Company shall use its best efforts to dispose of the REO Property as soon
        as
        possible and shall sell such REO Property in any event within one year after
        title has been taken to such REO Property, unless the Company determines,
        and
        gives an appropriate notice to the Purchaser to such effect, that a longer
        period is necessary for the orderly liquidation of such REO Property. If
        a
        longer period than one (1) year is permitted under the foregoing sentence
        and is
        necessary to sell any REO Property, the Company shall report monthly to the
        Purchaser as to the progress being made in selling such REO Property. No
        REO
        Property shall be marketed for less than the Appraised Value, without the
        prior
        consent of Purchaser. No REO Property shall be sold for less than ninety
        five
        percent (95%) of its Appraised Value, without the prior consent of Purchaser.
        All requests for reimbursement of Servicing Advances shall be in accordance
        with
        the Fannie Mae Guides. The disposition of REO Property shall be carried out
        by
        the Company at such price, and upon such terms and conditions, as the Company
        deems to be in the best interests of the Purchaser (subject to the above
        conditions) only with the prior written consent of the Purchaser. Company
        shall
        provide monthly reports to Purchaser in reference to the status of the marketing
        of the REO Properties.

      

      Notwithstanding
        anything to the contrary contained herein, the Purchaser may, at the Purchaser's
        sole option, terminate the Company as servicer of any such REO Property without
        payment of any termination fee with respect thereto, provided that the Company
        shall on the date said termination takes effect be reimbursed for any
        unreimbursed advances of the Company's funds made pursuant to Section 5.03
        and
        any unreimbursed Servicing Advances and Servicing Fees in each case relating
        to
        the Mortgage Loan underlying such REO Property notwithstanding anything to
        the
        contrary set forth in Section 4.05. In the event of any such termination,
        the
        provisions of Section 11.01 hereof shall apply to said termination and the
        transfer of servicing responsibilities with respect to such REO Property
        to the
        Purchaser or its designee. Within five Business Days of any such termination,
        the Company shall, if necessary convey such property to the Purchaser and
        shall
        further provide the Purchaser with the following information regarding the
        subject REO Property: the related drive by appraisal or brokers price opinion,
        and copies of any related Mortgage Impairment Insurance Policy claims. In
        addition, within five Business Days, the Company shall provide the Purchaser
        with the following information regarding the subject REO Property: the related
        trustee’s deed upon sale and copies of any related hazard insurance claims, or
        repair bids.

      

      Section
        4.14 Notification
        of Maturity Date.

      

      With
        respect to each Mortgage Loan, the Company shall execute and deliver to the
        Mortgagor any and all necessary notices required under applicable law and
        the
        terms of the related Mortgage Note and Mortgage regarding the maturity date
        if
        required under applicable law.

      

      ARTICLE
        V

      

      PAYMENTS
        TO THE PURCHASER

      

      Section
        5.01 Distributions.

      

      On
        each
        Remittance Date, the Company shall distribute by wire transfer of immediately
        available funds to the Purchaser (i) all amounts credited to the Custodial
        Account as of the close of business on the preceding Determination Date,
        net of
        charges against or withdrawals from the Custodial Account pursuant to Section
        4.05, plus (ii) all Monthly Advances, if any, which the Company is obligated
        to
        distribute pursuant to Section 5.03, plus, (iii) interest at the Mortgage
        Loan
        Remittance Rate on any Principal Prepayment from the date of such Principal
        Prepayment through the end of the month for which disbursement is made provided
        that the Company’s obligation as to payment of such interest shall be limited to
        the Servicing Fee earned during the month of the distribution, plus (iv)
        unless
        otherwise stated in the related Confirmation or related Term Sheet, any amount
        received by the Company that represents a prepayment penalty with respect
        to a
        Mortgage Loan, minus (v) any amounts attributable to Monthly Payments collected
        but due on a Due Date or Dates subsequent to the preceding Determination
        Date,
        which amounts shall be remitted on the Remittance Date next succeeding the
        Due
        Period for such amounts. It is understood that, by operation of Section 4.04,
        the remittance on the first Remittance Date with respect to Mortgage Loans
        purchased pursuant to the related Term Sheet is to include principal collected
        after the Cut-off Date through the preceding Determination Date plus interest,
        adjusted to the Mortgage Loan Remittance Rate collected through such
        Determination Date exclusive of any portion thereof allocable to the period
        prior to the Cut-off Date, with the adjustments specified in clauses (ii),
        (iii)
        and (iv) above.

      

      With
        respect to any remittance received by the Purchaser after the Remittance
        Date,
        the Company shall pay to the Purchaser interest on any such late payment
        at an
        annual rate equal to the Prime Rate, adjusted as of the date of each change,
        plus three (3) percentage points, but in no event greater than the maximum
        amount permitted by applicable law. Such interest shall cover the period
        commencing with the day following the Business Day such payment was due and
        ending with the Business Day on which such payment is made to the Purchaser,
        both inclusive. The payment by the Company of any such interest shall not
        be
        deemed an extension of time for payment or a waiver of any Event of Default
        by
        the Company. On each Remittance Date, the Company shall provide a remittance
        report detailing all amounts being remitted pursuant to this Section
        5.01.

      

      Section
        5.02 Statements
        to the Purchaser.

      

      The
        Company shall furnish to Purchaser an individual loan accounting report,
        as of
        the last Business Day of each month, in the Company's assigned loan number
        order
        to document Mortgage Loan payment activity on an individual Mortgage Loan
        basis.
        With respect to each month, the corresponding individual loan accounting
        report
        shall be received by the Purchaser no later than the fifth Business Day of
        the
        following month on a disk or tape or other computer-readable format in such
        format as may be mutually agreed upon by both Purchaser and Company, and
        no
        later than the fifth Business Day of the following month in hard copy, and
        shall
        contain the following:

      

      (i)
        With
        respect to each Monthly Payment, the amount of such remittance allocable
        to
        principal (including a separate breakdown of any Principal Prepayment, including
        the date of such prepayment, and any prepayment penalties or premiums, along
        with a detailed report of interest on principal prepayment amounts remitted
        in
        accordance with Section 4.04);

      

      (ii)
        with
        respect to each Monthly Payment, the amount of such remittance allocable
        to
        interest;

      

      (iii)
        the
        amount of servicing compensation received by the Company during the prior
        distribution period;

      

      (iv)
        the
        aggregate Stated Principal Balance of the Mortgage Loans;

      

      (v)
        the
        aggregate of any expenses reimbursed to the Company during the prior
        distribution period pursuant to Section 4.05; 

      

      (vi)
        The
        number and aggregate outstanding principal balances of Mortgage Loans (a)
        delinquent (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 days or more; (b)
        as to
        which foreclosure has commenced; and (c) as to which REO Property has been
        acquired; and

      

      The
        Company shall also provide a trial balance, sorted in Purchaser's assigned
        loan
        number order, in the form of Exhibit E hereto, with each such
        Report.

      

      The
        Company shall prepare and file any and all information statements or other
        filings required to be delivered to any governmental taxing authority or
        to
        Purchaser pursuant to any applicable law with respect to the Mortgage Loans
        and
        the transactions contemplated hereby.

      

      Section
        5.03 Monthly
        Advances by the Company.

      

      Not
        later
        than the close of business on the Business Day preceding each Remittance
        Date,
        the Company shall deposit in the Custodial Account an amount equal to all
        payments not previously advanced by the Company, whether or not deferred
        pursuant to Section 4.01, of principal (due after the Cut-off Date) and interest
        not allocable to the period prior to the Cut-off Date, adjusted to the Mortgage
        Loan Remittance Rate, which were due on a Mortgage Loan and delinquent at
        the
        close of business on the related Determination Date.

      

      The
        Company's obligation to make such Monthly Advances as to any Mortgage Loan
        will
        continue through the last Monthly Payment due prior to the payment in full
        of
        the Mortgage Loan, or through the Remittance Date prior to the date on which
        the
        Mortgaged Property liquidates (including Insurance Proceeds, proceeds from
        the
        sale of REO Property or Condemnation Proceeds) with respect to the Mortgage
        Loan
        unless the Company deems such advance to be nonrecoverable. In such event,
        the
        Company shall deliver to the Purchaser an Officer's Certificate of the Company
        to the effect that an officer of the Company has reviewed the related Mortgage
        File and has made the reasonable determination that any additional advances
        are
        nonrecoverable. 

      

      Section
        5.04 Liquidation
        Reports.

      

      Upon
        the
        foreclosure sale of any Mortgaged Property or the acquisition thereof by
        the
        Purchaser pursuant to a deed-in-lieu of foreclosure, the Company shall submit
        to
        the Purchaser a liquidation report with respect to such Mortgaged Property
        in a
        form mutually acceptable to Company and Purchaser. The Company shall also
        provide reports on the status of REO Property containing such information
        as
        Purchaser may reasonably require.

       

      ARTICLE
        VI

      

      GENERAL
        SERVICING PROCEDURES

      

      Section
        6.01 Assumption
        Agreements.

      

      The
        Company will, to the extent it has knowledge of any conveyance or prospective
        conveyance by any Mortgagor of the Mortgaged Property (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 any "due-on-sale"
        clause to the extent permitted by law; provided, however, that the Company
        shall
        not exercise any such rights if prohibited by law or the terms of the Mortgage
        Note from doing so or if the exercise of such rights would impair or threaten
        to
        impair any recovery under the related Primary Mortgage Insurance Policy or
        Lender Primary Mortgage Insurance Policy, if any. If the Company reasonably
        believes it is unable under applicable law to enforce such "due-on-sale"
        clause,
        the Company, with the approval of the Purchaser, will enter into an assumption
        agreement with the person to whom the Mortgaged 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. Where an assumption is allowed pursuant
        to
        this Section 6.01, the Company, with the prior consent of the Purchaser and
        the
        primary mortgage insurer, if any, is authorized to enter into a substitution
        of
        liability agreement with the person to whom the Mortgaged Property has been
        conveyed or is proposed to be conveyed pursuant to which the original mortgagor
        is released from liability and such Person is substituted as mortgagor and
        becomes liable under the related Mortgage Note. Any such substitution of
        liability agreement shall be in lieu of an assumption agreement. 

      

      In
        connection with any such assumption or substitution of liability, the Company
        shall follow the underwriting practices and procedures of the Company. With
        respect to an assumption or substitution of liability, the Mortgage Interest
        Rate borne by the related Mortgage Note, the amount of the Monthly Payment
        and
        the maturity date may not be changed (except pursuant to the terms of the
        Mortgage Note). If the credit of the proposed transferee does not meet such
        underwriting criteria, the Company diligently shall, to the extent permitted
        by
        the Mortgage or the Mortgage Note and by applicable law, accelerate the maturity
        of the Mortgage Loan. The Company shall notify the Purchaser that any such
        substitution of liability or assumption agreement has been completed by
        forwarding to the Purchaser the original of any such substitution of liability
        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. All fees collected by the Company for entering into an assumption
        or
        substitution of liability agreement shall belong to the Company.

      

      Notwithstanding
        the foregoing paragraphs of this Section or any other provision of this
        Agreement, the Company 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 any assumption which the Company may be restricted
        by law from preventing, for any reason whatsoever. For purposes of this Section
        6.01, 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
        6.02 Satisfaction
        of Mortgages and Release of Mortgage
        Files.

      

      Upon
        the
        payment in full of any Mortgage Loan, or the receipt by the Company of a
        notification that payment in full will be escrowed in a manner customary
        for
        such purposes, the Company will immediately notify the Purchaser 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 Custodial Account pursuant to Section 4.04
        have
        been or will be so deposited, of a Servicing Officer and shall request delivery
        to it of the portion of the Mortgage File held by the Purchaser. The Purchaser
        shall no later than five Business Days after receipt of such certification
        and
        request, release or cause to be released to the Company, the related Mortgage
        Loan Documents and, upon its receipt of such documents, the Company shall
        promptly prepare and deliver to the Purchaser the requisite satisfaction
        or
        release. No later than five (5) Business Days following its receipt of such
        satisfaction or release, the Purchaser shall deliver, or cause to be delivered,
        to the Company the release or satisfaction properly executed by the owner
        of
        record of the applicable mortgage or its duly appointed attorney in fact.
        No
        expense incurred in connection with any instrument of satisfaction or deed
        of
        reconveyance shall be chargeable to the Custodial Account.

      

      In
        the
        event the Company satisfies or releases a Mortgage without having obtained
        payment in full of the indebtedness secured by the Mortgage or should it
        otherwise prejudice any right the Purchaser may have under the mortgage
        instruments, the Company, upon written demand, shall remit within two (2)
        Business Days to the Purchaser the then outstanding principal balance of
        the
        related Mortgage Loan by deposit thereof in the Custodial Account. The Company
        shall maintain the Fidelity Bond and errors and omissions insurance insuring
        the
        Company against any loss it may sustain with respect to any Mortgage Loan
        not
        satisfied in accordance with the procedures set forth herein.

      

      From
        time
        to time and as appropriate for the servicing or foreclosure of the Mortgage
        Loan, including for the purpose of collection under any Primary Mortgage
        Insurance Policy or Lender Primary Mortgage Insurance Policy, the Purchaser
        shall, upon request of the Company and delivery to the Purchaser of a servicing
        receipt signed by a Servicing Officer, release the portion of the Mortgage
        File
        held by the Purchaser to the Company. Such servicing receipt shall obligate
        the
        Company to return the related Mortgage documents to the Purchaser when the
        need
        therefor by the Company no longer exists, unless the Mortgage Loan has been
        liquidated and the Liquidation Proceeds relating to the Mortgage Loan have
        been
        deposited in the Custodial 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 Company has delivered to the Purchaser 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, the servicing receipt shall be released
        by
        the Purchaser to the Company.

      

      Section
        6.03 Servicing
        Compensation.

      

      As
        compensation for its services hereunder, the Company shall be entitled to
        withdraw from the Custodial Account (to the extent of interest payments
        collected on the Mortgage Loans) or to retain from interest payments collected
        on the Mortgage Loans, the amounts provided for as the Company's Servicing
        Fee,
        subject to payment of compensating interest on Principal Prepayments as capped
        by the Servicing Fee pursuant to Section 5.01 (iii). Additional servicing
        compensation in the form of assumption fees, as provided in Section 6.01,
        and
        late payment charges or otherwise shall be retained by the Company to the
        extent
        not required to be deposited in the Custodial Account. No Servicing Fee shall
        be
        payable in connection with partial Monthly Payments. The Company shall be
        required to pay all expenses incurred by it in connection with its servicing
        activities hereunder and shall not be entitled to reimbursement therefor
        except
        as specifically provided for.

      

      Section
        6.04 Annual
        Statement as to Compliance.

      

      The
        Company will deliver to the Purchaser not later than 90 days following the
        end
        of each fiscal year of the Company beginning in March 2002,
        an
        Officers' Certificate stating, as to each signatory thereof, that (i) a review
        of the activities of the Company during the preceding calendar year and of
        performance under this Agreement has been made under such officers' supervision,
        and (ii) to the best of such officers' knowledge, based on such review, the
        Company has fulfilled all of its obligations under this Agreement throughout
        such year, or, if there has been a default in the fulfillment of any such
        obligation, specifying each such default known to such officers and the nature
        and status of cure provisions thereof. Copies of such statement shall be
        provided by the Company to the Purchaser upon request.

      

      Section
        6.05 Annual
        Independent Certified Public Accountants'
        Servicing Report.

      

      Within
        ninety (90) days of Company's fiscal year end beginning in March 2002 the
        Company at its expense shall cause a firm of independent public accountants
        which is a member of the American Institute of Certified Public Accountants
        to
        furnish a statement to the Purchaser to the effect that such firm has examined
        certain documents and records relating to the Company's servicing of mortgage
        loans of the same type as the Mortgage Loans pursuant to servicing agreements
        substantially similar to this Agreement, which agreements may include this
        Agreement, and that, on the basis of such an examination, conducted
        substantially in the uniform single audit program for mortgage bankers, such
        firm is of the opinion that the Company's servicing has been conducted in
        compliance with the agreements examined pursuant to this Section 6.05, except
        for (i) such exceptions as such firm shall believe to be immaterial, and
        (ii)
        such other exceptions as shall be set forth in such statement. Copies of
        such
        statement shall be provided by the Company to the Purchaser. In addition,
        on an
        annual basis, Company shall provided Purchaser with copies of its audited
        financial statements. 

      

      Section
        6.06 Purchaser's
        Right to Examine Company Records.

      

      The
        Purchaser shall have the right to examine and audit upon reasonable notice
        to
        the Company, during business hours or at such other times as might be reasonable
        under applicable circumstances, any and all of the books, records, documentation
        or other information of the Company, or held by another for the Company or
        on
        its behalf or otherwise, which relates to the performance or observance by
        the
        Company of the terms, covenants or conditions of this Agreement.

      

      The
        Company shall provide to the Purchaser and any supervisory agents or examiners
        representing a state or federal governmental agency having jurisdiction over
        the
        Purchaser, including but not limited to FDIC and other similar entities,
        access
        to any documentation regarding the Mortgage Loans in the possession of the
        Company which may be required by any applicable regulations. Such access
        shall
        be afforded without charge, upon reasonable request, during normal business
        hours and at the offices of the Company, and in accordance with the federal
        government, FDIC, or any other similar regulations.

      

      ARTICLE
        VII

      

      REPORTS
        TO BE PREPARED BY SERVICER

      

      Section
        7.01 Company
        Shall Provide Information as Reasonably
        Required.

      

      The
        Company shall furnish to the Purchaser during the term of this Agreement
        such
        periodic, special or other reports, information or documentation, not provided
        for herein, as shall be necessary, reasonable or appropriate in respect to
        the
        Purchaser, or otherwise in respect to the Mortgage Loans and the performance
        of
        the Company under this Agreement, including any reports, information or
        documentation reasonably required to comply with any regulations regarding
        any
        supervisory agents or examiners of the Purchaser all such reports or information
        to be as provided by and in accordance with such applicable instructions
        and
        directions as the Purchaser may reasonably request in relation to this Agreement
        or the performance of the Company under this Agreement. Such periodic, special
        or other reports, information or documentation furnished to the Purchaser
        at the
        Purchaser’s request pursuant to the preceding sentence shall be at the expense
        of the Purchaser. The Company agrees to execute and deliver all such instruments
        and take all such action as the Purchaser, from time to time, may reasonably
        request in order to effectuate the purpose and to carry out the terms of
        this
        Agreement.

      

      In
        connection with marketing the Mortgage Loans, the Purchaser may make available
        to a prospective purchaser audited financial statements of the Company for
        the
        most recently completed two (2) fiscal years for which such statements are
        available, as well as a Consolidated Statement of Condition at the end of
        the
        last two (2) fiscal years covered by any Consolidated Statement of Operations.
        If it has not already done so, the Company shall furnish promptly to the
        Purchaser or a prospective purchaser copies of the statements specified
        above.

      

      The
        Company shall make reasonably available to the Purchaser or any prospective
        Purchaser a knowledgeable financial or accounting officer for the purpose
        of
        answering questions and to permit any prospective purchaser to inspect the
        Company’s servicing facilities for the purpose of satisfying such prospective
        purchaser that the Company has the ability to service the Mortgage Loans
        as
        provided in this Agreement.

       

      
 

      

      ARTICLE
        VIII

      

      THE
        SERVICER

      

      Section
        8.01 Indemnification;
        Third Party Claims.

      

      The
        Company agrees to indemnify the Purchaser and hold it harmless against any
        and
        all claims, losses, damages, penalties, fines, forfeitures, legal fees and
        related costs, judgments, and any other costs, fees and expenses that the
        Purchaser may sustain in any way related to the failure of the Company to
        observe and perform its duties, obligations, covenants, and agreements to
        service the Mortgage Loans in strict compliance with the terms of this
        Agreement. The Company agrees to indemnify the Purchaser and hold it harmless
        against any and all claims, losses, damages, penalties, fines, forfeitures,
        legal fees and related costs, judgments, and any other costs, fees and expenses
        that the Purchaser may sustain in any way related to the breach of a
        representation or warranty set forth in Sections 3.01 or 3.02 of this Agreement.
        The Company shall immediately notify the Purchaser if a claim is made by
        a third
        party against Company with respect to this Agreement or the Mortgage Loans,
        assume (with the consent of the Purchaser) the defense of any such claim
        and pay
        all expenses in connection therewith, including counsel fees, whether or
        not
        such claim is settled prior to judgment, and promptly pay, discharge and
        satisfy
        any judgment or decree which may be entered against it or the Purchaser in
        respect of such claim. The Company shall follow any written instructions
        received from the Purchaser in connection with such claim. The Purchaser
        shall
        promptly reimburse the Company for all amounts advanced by it pursuant to
        the
        two preceding sentences except when the claim relates to the failure of the
        Company to service and administer the Mortgages in strict compliance with
        the
        terms of this Agreement, the breach of representation or warranty set forth
        in
        Sections 3.01 or 3.02, or the gross negligence, bad faith or willful misconduct
        of Company. The provisions of this Section 8.01 shall survive termination
        of
        this Agreement.

      

      Section
        8.02 Merger
        or Consolidation of the Company.

      

      The
        Company will keep in full effect its existence, rights and franchises as
        a
        corporation under the laws of the state of its incorporation except as permitted
        herein, and will 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 duties under this
        Agreement.

      

      Any
        Person into which the Company may be merged or consolidated, or any corporation
        resulting from any merger, conversion or consolidation to which the Company
        shall be a party, or any Person succeeding to the business of the Company
        whether or not related to loan servicing, shall be the successor of the Company
        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
        shall
        be an institution (i) having a GAAP net worth of not less than $25,000,000,
        (ii)
        the deposits of which are insured by the FDIC and/or BIF, and which is a
        HUD-approved mortgagee whose primary business is in origination and servicing
        of
        first lien mortgage loans, and (iii) who is a Fannie Mae or FHLMC approved
        seller/servicer in good standing; provided, further, however, that the Company
        shall give sixty (60) days written notice to the Purchaser of any merger,
        conversion or consolidation to which the Company shall be a party, or of
        any
        Person succeeding to the business of the Company, and the Purchaser, at it
        sole
        option, shall make the determination as to whether such successor of the
        Company
        shall continue to service the Mortgage Loans hereunder.

      

      Section
        8.03 Limitation
        on Liability of the Company and Others.

      

      Neither
        the Company nor any of the officers, employees or agents of the Company shall
        be
        under any liability to the Purchaser 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 made in good faith; provided, however, that this provision shall
        not
        protect the Company or any such person against any breach of warranties or
        representations made herein, or failure to perform its obligations in strict
        compliance with any standard of care set forth in this Agreement, or any
        liability which would otherwise be imposed by reason of negligence, bad faith
        or
        willful misconduct, or any breach of the terms and conditions of this Agreement.
        The Company and any officer, employee or agent of the Company may rely in
        good
        faith on any document of any kind prima facie properly executed and submitted
        by
        the Purchaser respecting any matters arising hereunder. The Company shall
        not be
        under any obligation to appear in, prosecute or defend any legal action which
        is
        not incidental to its duties to service the Mortgage Loans in accordance
        with
        this Agreement and which in its reasonable opinion may involve it in any
        expenses or liability; provided, however, that the Company may, with the
        consent
        of the Purchaser, undertake any such action which it may deem necessary or
        desirable in respect to this Agreement and the rights and duties of the parties
        hereto. In such event, the reasonable legal expenses and costs of such action
        and any liability resulting therefrom shall be expenses, costs and liabilities
        for which the Purchaser will be liable, and the Company shall be entitled
        to be
        reimbursed therefor from the Purchaser upon written demand.

      

      Section
        8.04 Company
        Not to Assign or Resign.

      

      The
        Company shall not assign this Agreement or resign from the obligations and
        duties hereby imposed on it except by mutual consent of the Company and the
        Purchaser or upon the determination that its duties hereunder are no longer
        permissible under applicable law and such incapacity cannot be cured by the
        Company. Any such determination permitting the resignation of the Company
        shall
        be evidenced by an Opinion of Counsel to such effect delivered to the Purchaser
        which Opinion of Counsel shall be in form and substance acceptable to the
        Purchaser. No such resignation shall become effective until a successor shall
        have assumed the Company's responsibilities and obligations hereunder in
        the
        manner provided in Section 11.01.

      

      Section
        8.05 No
        Transfer of Servicing.

      

      With
        respect to the retention of the Company to service the Mortgage Loans hereunder,
        the Company acknowledges that the Purchaser has acted in reliance upon the
        Company's independent status, the adequacy of its servicing facilities, plan,
        personnel, records and procedures, its integrity, reputation and financial
        standing and the continuance thereof. Without in any way limiting the generality
        of this Section, the Company shall not either assign this Agreement or the
        servicing hereunder or delegate its rights or duties hereunder or any portion
        thereof, or sell or otherwise dispose of all or substantially all of its
        property or assets, without the prior written approval of the Purchaser,
        which
        consent shall be granted or withheld in the Purchaser's sole
        discretion.

      

      Without
        in any way limiting the generality of this Section 8.05, in the event that
        the
        Company either shall assign this Agreement or the servicing responsibilities
        hereunder or delegate its duties hereunder or any portion thereof without
        (i)
        satisfying the requirements set forth herein or (ii) the prior written consent
        of the Purchaser, then the Purchaser shall have the right to terminate this
        Agreement, without any payment of any penalty or damages and without any
        liability whatsoever to the Company (other than with respect to accrued but
        unpaid Servicing Fees and Servicing Advances remaining unpaid) or any third
        party. 

       

      
 

      

      ARTICLE
        IX

      

      DEFAULT

      

      Section
        9.01 Events
        of Default.

      

      In
        case
        one or more of the following Events of Default by the Company shall occur
        and be
        continuing, that is to say:

      

      (i)
        any
        failure by the Company to remit to the Purchaser any payment required to
        be made
        under the terms of this Agreement which continues unremedied for a period
        of one
        (1) Business Day; or

      

      (ii)
        failure on the part of the Company duly to observe or perform in any material
        respect any other of the covenants or agreements on the part of the Company
        set
        forth in this Agreement which 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 Company by the Purchaser;
        or

      

      (iii)
        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 Company and such decree or order
        shall have remained in force undischarged or unstayed for a period of sixty
        days; or

      

      (iv)
        the
        Company 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 Company
        or
        of or relating to all or substantially all of its property; or

      

      (v)
        the
        Company shall admit in writing its inability to pay its debts generally as
        they
        become due, file a petition to take advantage of any applicable insolvency
        or
        reorganization statute, make an assignment for the benefit of its creditors,
        or
        voluntarily suspend payment of its obligations; or

      

      (vi)
        Company ceases to be approved by either Fannie Mae or FHLMC as a mortgage
        loan
        seller or servicer for more than thirty days; or

      

      (vii)
        the
        Company attempts to assign its right to servicing compensation hereunder
        or the
        Company attempts, without the consent of the Purchaser, to sell or otherwise
        dispose of all or substantially all of its property or assets or to assign
        this
        Agreement or the servicing responsibilities hereunder or to delegate its
        duties
        hereunder or any portion thereof; or

      

      (viii)
        the Company ceases to be (a) licensed to service first lien residential mortgage
        loans in any jurisdiction in which a Mortgaged Property is located and such
        licensing is required, and (b) qualified to transact business in any
        jurisdiction where it is currently so qualified, but only to the extent such
        non-qualification materially and adversely affects the Company's ability
        to
        perform its obligations hereunder; or

      

      (ix)
        the
        Company fails to meet the eligibility criteria set forth in the last sentence
        of
        Section 8.02.

      

      Then,
        and
        in each and every such case, so long as an Event of Default shall not have
        been
        remedied, the Purchaser, by notice in writing to the Company (except in the
        case
        of an Event of Default under clauses (iii), (iv) or (v) above, in which case,
        automatically and without notice) Company may, in addition to whatever rights
        the Purchaser may have under Sections 3.03 and 8.01 and at law or equity
        or to
        damages, including injunctive relief and specific performance, terminate
        all the
        rights and obligations of the Company under this Agreement and in and to
        the
        Mortgage Loans and the proceeds thereof without compensating the Company
        for the
        same. On or after the receipt by the Company of such written notice (or,
        in the
        case of an Event of Default under clauses (iii), (iv) or (v) above, in which
        case, automatically and without notice), all authority and power of the Company
        under this Agreement, whether with respect to the Mortgage Loans or otherwise,
        shall pass to and be vested in the successor appointed pursuant to Section
        11.01. Upon written request from the Purchaser, the Company shall prepare,
        execute and deliver, any and all documents and other instruments, place in
        such
        successor's possession all Mortgage Files, and 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, at the Company's
        sole
        expense. The Company agrees to cooperate with the Purchaser and such successor
        in effecting the termination of the Company's responsibilities and rights
        hereunder, including, without limitation, the transfer to such successor
        for
        administration by it of all cash amounts which shall at the time be credited
        by
        the Company to the Custodial Account or Escrow Account or thereafter received
        with respect to the Mortgage Loans or any REO Property.

      

      Section
        9.02 Waiver
        of Defaults.

      

      The
        Purchaser may waive only by written notice any default by the Company in
        the
        performance of its obligations hereunder and its consequences. Upon any such
        waiver of a past default, such default shall cease to exist, and any 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 in writing.

      

       

      ARTICLE
        X

      

      TERMINATION

      

      Section
        10.01 Termination.

       

      The
        respective obligations and responsibilities of the Company shall terminate
        upon:
        (i) the later of the final payment or other liquidation (or any advance with
        respect thereto) of the last Mortgage Loan and the disposition of all remaining
        REO Property and the remittance of all funds due hereunder; or (ii) by mutual
        consent of the Company and the Purchaser in writing; or (iii) termination
        with
        cause under the terms of this Agreement.

      

       

      ARTICLE
        XI

      

      MISCELLANEOUS
        PROVISIONS

      

      Section
        11.01 Successor
        to the Company.

      

      Prior
        to
        termination of Company's responsibilities and duties under this Agreement
        pursuant to Sections 4.13, 8.04, 9.01, 10.01 (ii) or (iii), the Purchaser
        shall
        (i) succeed to and assume all of the Company's responsibilities, rights,
        duties
        and obligations under this Agreement, or (ii) appoint a successor having
        the
        characteristics set forth in Section 8.02 hereof and which shall succeed
        to all
        rights and assume all of the responsibilities, duties and liabilities of
        the
        Company under this Agreement prior to the termination of Company's
        responsibilities, duties and liabilities under this Agreement. In connection
        with such appointment and assumption, the Purchaser may make such arrangements
        for the compensation of such successor out of payments on Mortgage Loans
        as the
        Purchaser and such successor shall agree. In the event that the Company's
        duties, responsibilities and liabilities under this Agreement should be
        terminated pursuant to the aforementioned Sections, the Company shall discharge
        such duties and responsibilities during the period from the date it acquires
        knowledge of such termination until the effective date thereof 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 or financial condition of its successor. The resignation or removal
        of Company pursuant to the aforementioned Sections shall not become effective
        until a successor shall be appointed pursuant to this Section and shall in
        no
        event relieve the Company of the representations and warranties made pursuant
        to
        Sections 3.01, 3.02 and 3.03 and the remedies available to the Purchaser
        thereunder and under Section 8.01, it being understood and agreed that the
        provisions of such Sections 3.01, 3.02, 3.03 and 8.01 shall be applicable
        to the
        Company notwithstanding any such resignation or termination of the Company,
        or
        the termination of this Agreement.

      

      Any
        successor appointed as provided herein shall execute, acknowledge and deliver
        to
        the Company and to the Purchaser an instrument accepting such appointment,
        whereupon such successor shall become fully vested with all the rights, powers,
        duties, responsibilities, obligations and liabilities of the Company, with
        like
        effect as if originally named as a party to this Agreement. Any termination
        or
        resignation of the Company or this Agreement pursuant to Section 4.13, 8.04,
        9.01 or 10.01 shall not affect any claims that the Purchaser may have against
        the Company arising prior to any such termination or resignation.

      

      The
        Company shall promptly deliver to the successor the funds in the Custodial
        Account and the Escrow Account and the Mortgage Files and related documents
        and
        statements held by it hereunder and the Company shall account for all funds.
        The
        Company shall execute and deliver such instruments and do such other things
        all
        as may reasonably be required to more fully and definitely vest and confirm
        in
        the successor all such rights, powers, duties, responsibilities, obligations
        and
        liabilities of the Company. The successor shall make arrangements as it may
        deem
        appropriate to reimburse the Company for unrecovered Servicing Advances which
        the successor retains hereunder and which would otherwise have been recovered
        by
        the Company pursuant to this Agreement but for the appointment of the successor
        servicer.

      

      Upon
        a
        successor's acceptance of appointment as such, the Company shall notify by
        mail
        the Purchaser of such appointment.

      

      Section
        11.02 Amendment.

      

      This
        Agreement may be amended from time to time by the Company and the Purchaser
        by
        written agreement signed by the Company and the Purchaser.

      

      Section
        11.03 Recordation
        of Agreement.

      

      To
        the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all the counties
        or
        other comparable jurisdictions in which any of the properties subject to
        the
        Mortgages are situated, and in any other appropriate public recording office
        or
        elsewhere, such recordation to be effected by the Company at the Company's
        expense on direction of the Purchaser accompanied by an opinion of counsel
        to
        the effect that such recordation materially and beneficially affects the
        interest of the Purchaser or is necessary for the administration or servicing
        of
        the Mortgage Loans.

      

      Section
        11.04 Governing
        Law.

      

      This
        Agreement and the related Term Sheet shall be governed by and construed in
        accordance with the laws of the State of New York except to the extent preempted
        by Federal law. The obligations, rights and remedies of the parties hereunder
        shall be determined in accordance with such laws.

      

      Section
        11.05 Notices.

      

      Any
        demands, notices or other communications permitted or required hereunder
        shall
        be in writing and shall be deemed conclusively to have been given if personally
        delivered at or mailed by registered mail, postage prepaid, and return receipt
        requested or certified mail, return receipt requested, or transmitted by
        telex,
        telegraph or telecopier and confirmed by a similar mailed writing, as
        follows:

      

      (i)            
        if
        to the
        Company:

       

      National
        City Mortgage Company

      3232
        Newmark Drive

      Miamisburg,
        Ohio 45342

      Attention:
        Sheila N. Hansford

      Telecopier
        No.: (937) 910-4137

      

      Servicing
        contact:

      

      National
        City Mortgage Company

      3232
        Newmark Drive

      Miamisburg,
        Ohio 45342

      Attention:
        T. Jackson Case

      

       

      (ii)        
          if
        to the
        Purchaser:

       

      EMC
        Mortgage Corporation 

      Mac
        Arthur Ridge II, 

      909
        Hidden Ridge Drive, Suite 200

      Irving,
        Texas 75038

      Attention:
        Mr. Edward Raice

      Telecopier
        No.: (972) 444-2810

      

      With
        a
        copy to:

      

      Bear
        Stearns Mortgage Capital Corporation

      245
        Park
        Avenue

      New
        York,
        New York 10167

      Attention:
        Mary Haggerty

      

      or
        such
        other address as may hereafter be furnished to the other party by like notice.
        Any such demand, notice or communication hereunder shall be deemed to have
        been
        received on the date delivered to or received at the premises of the addressee
        (as evidenced, in the case of registered or certified mail, by the date noted
        on
        the return receipt).

      

      Section
        11.06 Severability
        of Provisions.

      

      Any
        part,
        provision, representation or warranty of this Agreement and the related Term
        Sheet which is prohibited or which is held to be void or unenforceable shall
        be
        ineffective to the extent of such prohibition or unenforceability without
        invalidating the remaining provisions hereof. Any part, provision,
        representation or warranty of this Agreement which is prohibited or
        unenforceable or is held to be void or unenforceable in any jurisdiction
        shall
        be ineffective, as to such jurisdiction, to the extent of such prohibition
        or
        unenforceability without invalidating the remaining provisions hereof, and
        any
        such prohibition or unenforceability in any jurisdiction as to any Mortgage
        Loan
        shall not invalidate or render unenforceable such provision in any other
        jurisdiction. To the extent permitted by applicable law, the parties hereto
        waive any provision of law that prohibits or renders void or unenforceable
        any
        provision hereof. If the invalidity of any part, provision, representation
        or
        warranty of this Agreement shall deprive any party of the economic benefit
        intended to be conferred by this Agreement, the parties shall negotiate,
        in good
        faith, to develop a structure the economic effect of which is nearly as possible
        the same as the economic effect of this Agreement without regard to such
        invalidity.

      

      Section
        11.07 Exhibits.

      

      The
        exhibits to this Agreement are hereby incorporated and made a part hereof
        and
        are an integral part of this Agreement.

      

      Section
        11.08 General
        Interpretive Principles.

      

      For
        purposes of this Agreement, except as otherwise expressly provided or unless
        the
        context otherwise requires:

      

      (i)
         the
        terms
        defined in this Agreement have the meanings assigned to them in this Agreement
        and include the plural as well as the singular, and the use of any gender
        herein
        shall be deemed to include the other gender;

      

      (ii)
         accounting
        terms not otherwise defined herein have the meanings assigned to them in
        accordance with generally accepted accounting principles;

       

      (iii)
         references
        herein to "Articles", "Sections", Subsections", "Paragraphs", and other
        subdivisions without reference to a document are to designated Articles,
        Sections, Subsections, Paragraphs and other subdivisions of this
        Agreement;

      

      (iv)
         a
        reference to a Subsection without further reference to a Section is a reference
        to such Subsection as contained in the same Section in which the reference
        appears, and this rule shall also apply to Paragraphs and other
        subdivisions;

      

      (v)
         the
        words
        "herein", "hereof ", "hereunder" and other words of similar import refer
        to this
        Agreement as a whole and not to any particular provision; 

      

      (vi)
         the
        term
        "include" or "including" shall mean without limitation by reason of enumeration;
        and

      

      (viii)
         headings
        of the Articles and Sections in this Agreement are for reference purposes
        only
        and shall not be deemed to have any substantive effect.

      

      Section
        11.09 Reproduction
        of Documents.

      

      This
        Agreement and all documents relating thereto, including, without limitation,
        (i)
        consents, waivers and modifications which may hereafter be executed, (ii)
        documents received by any party at the closing, and (iii) financial statements,
        certificates and other information previously or hereafter furnished, may
        be
        reproduced by any photographic, photostatic, microfilm, micro-card, miniature
        photographic or other similar process. The parties agree that any such
        reproduction shall be admissible in evidence as the original itself in any
        judicial or administrative proceeding, whether or not the original is in
        existence and whether or not such reproduction was made by a party in the
        regular course of business, and that any enlargement, facsimile or further
        reproduction of such reproduction shall likewise be admissible in
        evidence.

      

      Section
        11.10 Confidentiality
        of Information.

      

      Each
        party recognizes that, in connection with this Agreement, it may become privy
        to
        non-public information regarding the financial condition, operations and
        prospects of the other party. Each party agrees to keep all non-public
        information regarding the other party strictly confidential, and to use all
        such
        information solely in order to effectuate the purpose of the Agreement, provided
        that each party may provide confidential information to its employees, agents
        and affiliates who have a need to know such information in order to effectuate
        the transaction, provided further that such information is identified as
        confidential non-public information. In addition, confidential information
        may
        be provided to a regulatory authority with supervisory power over Purchaser,
        provided such information is identified as confidential non-public
        information.

      

      Section
        11.11 Recordation
        of Assignments of Mortgage.

      

      To
        the
        extent permitted by applicable law, each of the Assignments 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 and at the Company’s
        expense in the event recordation is either necessary under applicable law
        or
        requested by the Purchaser at its sole option.

      

      Section
        11.12 Assignment
        by Purchaser.

      

      The
        Purchaser shall have the right, without the consent of the Company, to assign,
        in whole or in part, its interest under this Agreement with respect to some
        or
        all of the Mortgage Loans, and designate any person to exercise any rights
        of
        the Purchaser hereunder, by executing an Assignment and Assumption Agreement
        substantially in the form of Exhibit D hereto and the assignee or designee
        shall
        accede to the rights and obligations hereunder of the Purchaser with respect
        to
        such Mortgage Loans. In no event shall Purchaser sell a partial interest
        in any
        Mortgage Loan without the written consent of Company, which consent shall
        not be
        unreasonably denied. All references to the Purchaser in this Agreement shall
        be
        deemed to include its assignee or designee. 

      

      Section
        11.13 No
        Partnership.

      

      Nothing
        herein contained shall be deemed or construed to create a co-partnership
        or
        joint venture between the parties hereto and the services of the Company
        shall
        be rendered as an independent contractor and not as agent for
        Purchaser.

      

      Section
        11.14 Execution:
        Successors and Assigns.

      

      This
        Agreement may be executed in one or more counterparts and by the different
        parties hereto on separate counterparts, each of which, when so executed,
        shall
        be deemed to be an original; such counterparts, together, shall constitute
        one
        and the same agreement. Subject to Section 8.04, this Agreement shall inure
        to
        the benefit of and be binding upon the Company and the Purchaser and their
        respective successors and assigns.

      

      Section
        11.15 Entire
        Agreement.

      

      The
        Company acknowledges that no representations, agreements or promises were
        made
        to the Company by the Purchaser or any of its employees other than those
        representations, agreements or promises specifically contained herein and
        in the
        Confirmation. The Confirmation and this Agreement and the related Term Sheet
        sets forth the entire understanding between the parties hereto; provided,
        however, only this Agreement and the related Term Sheet shall be binding
        upon
        all successors of both parties. In the event of any inconsistency between
        the
        Confirmation and this Agreement, this Agreement and the related Term Sheet
        shall
        control.

      

      Section
        11.16. No
        Solicitation.

      

      From
        and
        after the Closing Date, the Company agrees that it will not take any action
        or
        permit or cause any action to be taken by any of its agents or affiliates,
        to
        personally, by telephone or mail, solicit the borrower or obligor under any
        Mortgage Loan to refinance the Mortgage Loan, in whole or in part, without
        the
        prior written consent of the Purchaser. Notwithstanding the foregoing, it
        is
        understood and agreed that (i) promotions undertaken by the Company or any
        affiliate of the Company which are directed to the general public at large,
        or
        segments thereof, provided that no segment shall consist primarily of the
        Mortgage Loans, including, without limitation, mass mailing based on
        commercially acquired mailing lists, newspaper, radio and television
        advertisements, and customer portfolio and (ii) responses to unsolicited
        requests or inquiries made by a Mortgagor or an agent of a Mortgagor, shall
        not
        constitute solicitation under this Section 11.16. This Section 11.16 shall
        not
        be deemed to preclude the Company or any of its affiliates from soliciting
        any
        Mortgagor for any other financial products or services. From and after the
        Closing Date, the Purchaser agrees that it will not take any action or permit
        or
        cause any action to be taken by any of its agents or affiliates, or by any
        independent contractors on the Purchaser’s behalf, to personally by telephone or
        mail, solicit the borrower or obligor under any Mortgage Loan to refinance
        the
        Mortgage Loan, in whole or in part, without the prior written consent of
        the
        Company,. In addition, the Purchaser or any of its affiliates shall not solicit
        any Mortgagor for any other financial products or services. Notwithstanding
        the
        foregoing, it is understood and agreed that (i) promotions undertaken by
        the
        Purchasr or any affiliate of the Purchaser which are directed to the general
        public at large, or segments thereof, provided that no segment shall consist
        primarily of the Mortgage Loans, including, without limitation, mass mailing
        based on commercially acquired mailing lists, newspaper, radio and television
        advertisements and (ii) responses to unsolicited requests or inquiries made
        by a
        Mortgagor or an agent of a Mortgagor, shall not constitute solicitation under
        this Section 11.16 The Company shall use its best efforts to prevent the
        sale of
        the name of any Mortgagor to any Person who is not affiliate of the
        Company.

      

      Section
        11.17. Closing.

      

      The
        closing for the purchase and sale of the Mortgage Loans shall take place
        on the
        related Closing Date. The closing shall be either: by telephone, confirmed
        by
        letter or wire as the parties shall agree, or conducted in person, at such
        place
        as the parties shall agree.

      

      The
        closing for the Mortgage Loans to be purchased on the related Closing Date
        shall
        be subject to each of the following conditions:

      

      (a) at
        least
        one (1) Business Day prior to the related Closing Date, the Company shall
        deliver to the Purchaser a magnetic diskette, or transmit by modem, a listing
        on
        a loan-level basis of the information contained in the related Mortgage Loan
        Schedule attached to the related Term Sheet;

      

      (b) all
        of
        the representations and warranties of the Company under this Agreement shall
        be
        materially true and correct as of the related Closing Date and no event shall
        have occurred which, with notice or the passage of time, would constitute
        a
        material default under this Agreement;

      

      (c) the
        Purchaser shall have received, or the Purchaser's attorneys shall have received
        in escrow, all documents required pursuant to this Agreement, the related
        Term
        Sheet, an opinion of counsel and an officer's certificate, all in such forms
        as
        are agreed upon and acceptable to the Purchaser, duly executed by all
        signatories other than the Purchaser as required pursuant to the terms
        hereof;

      

      (d) the
        Company shall have delivered and released to the Purchaser (or its designee)
        on
        or prior to the related Closing Date all documents required pursuant to the
        terms of this Agreement and the related Term Sheet; and

      

      (e) all
        other
        terms and conditions of this Agreement, the related Term Sheet and the
        Confirmation shall have been materially complied with.

      

      Subject
        to the foregoing conditions, the Purchaser shall pay to the Company on the
        related Closing Date the Purchase Price, plus accrued interest pursuant to
        Section 2.02 of this Agreement, by wire transfer of immediately available
        funds
        to the account designated by the Company.

      

      Section
        11.18. Cooperation
        of Company with a Reconstitution.

      

      The
        Company and the Purchaser agree that with respect to some or all of the Mortgage
        Loans, on or after the related Closing Date, on one or more dates (each a
        "Reconstitution Date") at the Purchaser's sole option, the Purchaser may
        effect
        a sale (each, a "Reconstitution") of some or all of the Mortgage Loans then
        subject to this Agreement, without recourse, to:

      

      (a) 
        one or
        more third party purchasers in one or more in whole loan transfers (each,
        a
        "Whole Loan Transfer"); or

      

      (b) one
        or
        more trusts or other entities to be formed as part of one or more pass-through
        transfers (each, a "Pass-Through Transfer").

      

      The
        Company agrees to execute in connection with any agreements among the Purchaser,
        the Company, and any servicer in connection with a Whole Loan Transfer, an
        Assignment, Assumption and Recognition Agreement substantially in the form
        of
        Exhibit D hereto, or, at Purchaser’s request, a seller's warranties and
        servicing agreement or a participation and servicing agreement or similar
        agreement in form and substance reasonably acceptable to the parties, and
        in
        connection with a Pass-Through Transfer, a pooling and servicing agreement
        in
        form and substance reasonably acceptable to the parties, (collectively the
        agreements referred to herein are designated, the "Reconstitution Agreements").
        It is understood that any such Reconstitution Agreements will not contain
        any
        greater obligations on the part of Company than are contained in this
        Agreement.

      

      With
        respect to each Whole Loan Transfer and each Pass-Through Transfer entered
        into
        by the Purchaser, the Company agrees (1) to cooperate fully with the Purchaser
        and any prospective purchaser with respect to all reasonable requests and
        due
        diligence procedures; (2) to execute, deliver and perform all Reconstitution
        Agreements required by the Purchaser; (3) to restate the representations
        and
        warranties set forth in this Agreement as of the settlement or closing date
        in
        connection with such Reconstitution (each, a "Reconstitution Date"). In that
        connection, the Company shall provide to such servicer or issuer, as the
        case
        may be, and any other participants in such Reconstitution: (i) any and all
        information (including servicing portfolio information) and appropriate
        verification of information (including servicing portfolio information) which
        may be reasonably available to the Company, whether through letters of its
        auditors and counsel or otherwise, as the Purchaser or any such other
        participant shall request upon reasonable demand; and (ii) such additional
        representations, warranties, covenants, opinions of counsel, letters from
        auditors, and certificates of public officials or officers of the Company
        as are
        reasonably agreed upon by the Company and the Purchaser or any such other
        participant. In connection with each Pass-Through Transfer, the Company agrees
        to provide reasonable and customary indemnification to the Purchaser and
        its
        affiliates for disclosure contained in any offering document relating to
        the
        Company or its affiliates, the Mortgage Loans and the underwriting standards
        of
        the Mortgage Loans. The Purchaser shall be responsible for the costs relating
        to
        the delivery of such information. With respect to each Pass-Through Transfer,
        the Purchaser shall provide thirty (30) days notice of such transfer, unless
        otherwise agreed by the parties in the related Confirmation. With respect
        to
        each Whole Loan Transfer, limits on frequency of Reconstitution may be provided
        in the related Confirmation or related Term Sheet for the related Mortgage
        Loans. 

       

      All
        Mortgage Loans not sold or transferred pursuant to a Reconstitution shall
        remain
        subject to, and serviced in accordance with the terms of, this Agreement
        and the
        related Term Sheet, and with respect thereto this Agreement and the related
        Term
        Sheet shall remain in full force and effect.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the Company and the Purchaser have caused their names to
        be
        signed hereto by their respective officers thereunto duly authorized as of
        the
        day and year first above written.

       

      
        	 	 	 
	 	EMC
                MORTGAGE CORPORATION
	 	
                Purchaser

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                Name:   

              	 
	 	Title:	 

      

       

      
         

        
          	 	 	 
	 	NATIONAL
                  CITY MORTGAGE COMPANY
	 	
                  Company

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  Name:   

                	 
	 	Title:	 

        

         

         

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        A

       

      CONTENTS
        OF 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 Purchaser,
        and
        which shall be retained by the Company in the Servicing File or delivered
        to the
        Purchaser or its designee pursuant to Sections 2.04 and 2.05 of the Purchase,
        Warranties and Servicing Agreement.

      

      1.
        The
        original Mortgage Note endorsed "Pay to the order of
        ____________________________________________________, without recourse,"
        and
        signed via original signature in the name of the Company by an authorized
        officer, with all intervening endorsements showing a complete chain of title
        from the originator to the Company, together with any applicable riders.
        In no
        event may an endorsement be a facsimile endorsement. If the Mortgage Loan
        was
        acquired by the Company in a merger, the endorsement must be by "[Company],
        successor by merger to the [name of predecessor]". If the Mortgage Loan was
        acquired or originated by the Company while doing business under another
        name,
        the endorsement must be by "[Company] formerly known as [previous name]".
        Mortgage Notes may be in the form of a lost note affidavit subject to Purchaser
        acceptability. 

      

      2.
        The
        original Mortgage (together with a standard adjustable rate mortgage rider)
        with
        evidence of recording thereon, or a copy thereof certified by the public
        recording office in which such mortgage has been recorded or, if the original
        Mortgage has not been returned from the applicable public recording office,
        a
        true certified copy, certified by the Company.

      

      3.
        The
        original or certified copy, certified by the Company, of the Primary Mortgage
        Insurance Policy or Lender Primary Mortgage Insurance Policy, if
        required.

      

      4. The
        original Assignment, from the Company to _____________________________________,
        or in accordance with Purchaser's instructions, which assignment shall, but
        for
        any blanks requested by Purchaser, be in form and substance acceptable for
        recording. If the Mortgage Loan was acquired or originated by the Company
        while
        doing business under another name, the Assignment must be by "[Company] formerly
        known as [previous name]". If the Mortgage Loan was acquired by the Company
        in a
        merger, the endorsement must be by "[Company], successor by merger to the
        [name
        of predecessor]". None of the Assignments are blanket assignments of
        mortgage.

      

      5. The
        original policy of title insurance, including riders and endorsements thereto,
        or if the policy has not yet been issued, a written commitment or interim
        binder
        or preliminary report of title issued by the title insurance or escrow
        company.

      

      6. Originals
        of all recorded intervening Assignments, or copies thereof, certified by
        the
        public recording office in which such Assignments have been recorded showing
        a
        complete chain of title from the originator to the Company, with evidence
        of
        recording thereon, or a copy thereof certified by the public recording office
        in
        which such Assignment has been recorded or, if the original Assignment has
        not
        been returned from the applicable public recording office, a true certified
        copy, certified by the Company.

      

      7. Originals,
        or copies thereof certified by the public recording office in which such
        documents have been recorded, of each assumption, extension, modification,
        written assurance or substitution agreements, if applicable, or if the original
        of such document has not been returned from the applicable public recording
        office, a true certified copy, certified by the Company. 

      

      8. If
        the
        Mortgage Note or Mortgage or any other material document or instrument relating
        to the Mortgage Loan has been signed by a person on behalf of the Mortgagor,
        the
        original or copy of power of attorney or other instrument that authorized
        and
        empowered such person to sign bearing evidence that such instrument has been
        recorded, if so required in the appropriate jurisdiction where the Mortgaged
        Property is located, or a copy thereof certified by the public recording
        office
        in which such instrument has been recorded or, if the original instrument
        has
        not been returned from the applicable public recording office, a true certified
        copy, certified by the Company.

      

      9. reserved.

      

      10. Mortgage
        Loan closing statement (Form HUD-1) and any other truth-in-lending or real
        estate settlement procedure forms required by law.

      

      11.
        Residential loan application.

      

      12. Uniform
        underwriter and transmittal summary (Fannie Mae Form 1008) or reasonable
        equivalent.

      

      13. Credit
        report on the mortgagor.

      

      14. Business
        credit report, if applicable.

      

      15. Residential
        appraisal report and attachments thereto.

      

      16. The
        original of any guarantee executed in connection with the Mortgage
        Note.

      

      17. Verification
        of employment and income except for Mortgage Loans originated under a limited
        documentation program, all in accordance with Company's underwriting
        guidelines.

      

      18. Verification
        of acceptable evidence of source and amount of down payment, in accordance
        with
        Company's underwriting guidelines.

      

      19. Photograph
        of the Mortgaged Property (may be part of appraisal).

      

      20. Survey
        of
        the Mortgaged Property, if any.

      

      21. Sales
        contract, if applicable.

      

      22. If
        available, termite report, structural engineer’s report, water portability and
        septic certification.

      

      23. Any
        original security agreement, chattel mortgage or equivalent executed in
        connection with the Mortgage.

      

      24. Name
        affidavit, if applicable.

      

      Notwithstanding
        anything to the contrary herein, Company may provide one certificate for
        all of
        the Mortgage Loans indicating that the documents were delivered for
        recording.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

      

      CUSTODIAL
        ACCOUNT LETTER AGREEMENT

      

      ______________,
        2001

      

      To: [_______________________]
        

      (the
        "Depository")

      

      As
        "Company" under the Purchase, Warranties and Servicing Agreement, dated as
        of
        October 1, 2001 (the "Agreement"), we hereby authorize and request you to
        establish an account, as a Custodial Account pursuant to Section 4.04 of
        the
        Agreement, to be designated as " National City Mortgage Company, in trust
        for
        the [Purchaser], Owner of Mortgage Loans". All deposits in the account shall
        be
        subject to withdrawal therefrom by order signed by the Company. This letter
        is
        submitted to you in duplicate. Please execute and return one original to
        us.

      

      NATIONAL
        CITY MORTGAGE COMPANY

       

      By:____________________________

       

      Name:__________________________

       

      Title:___________________________

       

       

      

      The
        undersigned, as "Depository", hereby certifies that the above described account
        has been established under Account Number [__________], at the office of
        the
        depository indicated above, and agrees to honor withdrawals on such account
        as
        provided above. The full amount deposited at any time in the account will
        be
        insured up to applicable limits by the Federal Deposit Insurance Corporation
        through the Bank Insurance Fund or the Savings Association Insurance Fund
        or
        will be invested in Permitted Investments as defined in the
        Agreement.

      

      [___________________________]

       

      By:____________________________

       

      Name:__________________________

       

      Title:___________________________

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

      

      ESCROW
        ACCOUNT LETTER AGREEMENT

      _____________,
        2001

      

      To: [_______________________]

      (the
        "Depository")

      

      As
        “Company” under the Purchase Warranties and Servicing Agreement, dated as of
        October 1, 2001 (the "Agreement"), we hereby authorize and request you to
        establish an account, as an Escrow Account pursuant to Section 4.06 of the
        Agreement, to be designated as "National City Mortgage Company, in trust
        for the
        [Purchaser], Owner of Mortgage Loans, and various Mortgagors." All deposits
        in
        the account shall be subject to withdrawal therefrom by order signed by the
        Company. This letter is submitted to you in duplicate. Please execute and
        return
        one original to us.

       

      
        NATIONAL
          CITY MORTGAGE COMPANY

         

        By:____________________________

         

        Name:__________________________

         

        Title:___________________________

         

      

      

      The
        undersigned, as "Depository", hereby certifies that the above described account
        has been established under Account Number __________, at the office of the
        depository indicated above, and agrees to honor withdrawals on such account
        as
        provided above. The full amount deposited at any time in the account will
        be
        insured up to applicable limits by the Federal Deposit Insurance Corporation
        through the Bank Insurance Fund or the Savings Association Insurance Fund
        or
        will be invested in Permitted Investments as defined in the
        Agreement.

      

      
        [___________________________]

         

        By:____________________________

         

        Name:__________________________

         

        Title:___________________________

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        D

      

      FORM
        OF
        ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

      

      This
        is a
        Purchase, Assignment, Assumption and Recognition Agreement (this “PAAR
        Agreement”) made as of __________, 200__, among EMC Mortgage Corporation (the
“Assignor”), ___________________ (the “Assignee”), and _______________________
        (the “Company”).

      

      In
        consideration of the mutual promises contained herein the parties hereto
        agree
        that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
        1 annexed hereto (the "Assigned Loan Schedule") now serviced by Company for
        Assignor and its successors and assigns pursuant to the Purchase, Warranties
        and
        Servicing Agreement, dated as of _________, 200__, between Assignor and Company
        (the “Purchase Agreement”) shall be subject to the terms of this PAAR Agreement.
        Capitalized terms used herein but not defined shall have the meanings ascribed
        to them in the Purchase Agreement.

      

      Purchase,
        Assignment and Assumption

      

      1. Assignor
        hereby grants, transfers and assigns to Assignee all of the right, title
        and
        interest of Assignor in the Assigned Loans and, as they relate to the Assigned
        Loans, all of its right, title and interest in, to and under the Purchase
        Agreement.

      

      2. Simultaneously
        with the execution hereof, (i) Assignee shall pay to Assignor the “Funding
        Amount” as set forth in that certain letter agreement, dated as of _________
        ____, between Assignee and Assignor (the “Confirmation”) and (ii) Assignor, at
        its expense, shall have caused to be delivered to Assignee or its designee
        the
        Mortgage File for each Assigned Loan in Assignor's or its custodian's
        possession, as set forth in the Purchase Agreement, along with, for each
        Assigned Loan, an endorsement of the Mortgage Note from the applicable Company,
        in blank, and an assignment of mortgage in recordable form from the applicable
        Company, in blank. Assignee shall pay the Funding Amount by wire transfer
        of
        immediately available funds to the account specified by Assignor. Assignee
        shall
        be entitled to all scheduled payments due on the Assigned Loans after
        ___________, 200__ and all unscheduled payments or other proceeds or other
        recoveries on the Assigned Loans received on and after _____________,
        200__.

      

      Representations,
        Warranties and Covenants

      

      3. Assignor
        warrants and represents to Assignee and Company as of the date
        hereof:

      

      (a) Attached
        hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
        which agreement is in full force and effect as of the date hereof and the
        provisions of which have not been waived, amended or modified in any respect,
        nor has any notice of termination been given thereunder;

      

      (b) Assignor
        is the lawful owner of the Assigned Loans with full right to transfer the
        Assigned Loans and any and all of its interests, rights and obligations under
        the Purchase Agreement as they relate to the Assigned Loans, free and clear
        from
        any and all claims and encumbrances; and upon the transfer of the Assigned
        Loans
        to Assignee as contemplated herein, Assignee shall have good title to each
        and
        every Assigned Loan, as well as any and all of Assignee’s interests, rights and
        obligations under the Purchase Agreement as they relate to the Assigned Loans,
        free and clear of any and all liens, claims and encumbrances;

      

      (c) There
        are
        no offsets, counterclaims or other defenses available to Company with respect
        to
        the Assigned Loans or the Purchase Agreement;

       

      (d) Assignor
        has no knowledge of, and has not received notice of, any waivers under, or
        any
        modification of, any Assigned Loan;

      

      (e) Assignor
        is duly organized, validly existing and in good standing under the laws of
        the
        jurisdiction of its incorporation, and has all requisite power and authority
        to
        acquire, own and sell the Assigned Loans;

      

      (f) Assignor
        has full corporate power and authority to execute, deliver and perform its
        obligations under this PAAR Agreement, and to consummate the transactions
        set
        forth herein. The consummation of the transactions contemplated by this PAAR
        Agreement is in the ordinary course of Assignor’s business and will not conflict
        with, or result in a breach of, any of the terms, conditions or provisions
        of
        Assignor’s charter or by-laws or any legal restriction, or any material
        agreement or instrument to which Assignor is now a party or by which it is
        bound, or result in the violation of any law, rule, regulation, order, judgment
        or decree to which Assignor or its property is subject. The execution, delivery
        and performance by Assignor of this PAAR Agreement and the consummation by
        it of
        the transactions contemplated hereby, have been duly authorized by all necessary
        corporate action on part of Assignor. This PAAR Agreement has been duly executed
        and delivered by Assignor and, upon the due authorization, execution and
        delivery by Assignee and Company, will constitute the valid and legally binding
        obligation of Assignor enforceable against Assignor in accordance with its
        terms
        except as enforceability may be limited by bankruptcy, reorganization,
        insolvency, moratorium or other similar laws now or hereafter in effect relating
        to creditors’ rights generally, and by general principles of equity regardless
        of whether enforceability is considered in a proceeding in equity or at law;
        

       

      (g)  No
        consent, approval, order or authorization of, or declaration, filing or
        registration with, any governmental entity is required to be obtained or
        made by
        Assignor in connection with the execution, delivery or performance by Assignor
        of this PAAR Agreement, or the consummation by it of the transactions
        contemplated hereby; and

      

      (h)  Neither
        Assignor nor anyone acting on its behalf has offered, transferred, pledged,
        sold
        or otherwise disposed of the Assigned Loans or any interest in the Assigned
        Loans, or solicited any offer to buy or accept a transfer, pledge or other
        disposition of the Assigned Loans, or any interest in the Assigned Loans
        or
        otherwise approached or negotiated with respect to the Assigned Loans, or
        any
        interest in the Assigned Loans 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 which would constitute a distribution of the Assigned
        Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which
        would render the disposition of the Assigned Loans a violation of Section
        5 of
        the 1933 Act or require registration pursuant thereto.

      

       

      4. Assignee
        warrants and represents to, and covenants with, Assignor and Company as of
        the
        date hereof:

       

      

      (a) Assignee
        is duly organized, validly existing and in good standing under the laws of
        the
        jurisdiction of its organization and has all requisite power and authority
        to
        acquire, own and purchase the Assigned Loans;

      

      (b) Assignee
        has full corporate power and authority to execute, deliver and perform its
        obligations under this PAAR Agreement, and to consummate the transactions
        set
        forth herein. The consummation of the transactions contemplated by this PAAR
        Agreement is in the ordinary course of Assignee’s business and will not conflict
        with, or result in a breach of, any of the terms, conditions or provisions
        of
        Assignee’s charter or by-laws or any legal restriction, or any material
        agreement or instrument to which Assignee is now a party or by which it is
        bound, or result in the violation of any law, rule, regulation, order, judgment
        or decree to which Assignee or its property is subject. The execution, delivery
        and performance by Assignee of this PAAR Agreement and the consummation by
        it of
        the transactions contemplated hereby, have been duly authorized by all necessary
        corporate action on part of Assignee. This PAAR Agreement has been duly executed
        and delivered by Assignee and, upon the due authorization, execution and
        delivery by Assignor and Company, will constitute the valid and legally binding
        obligation of Assignee enforceable against Assignee in accordance with its
        terms
        except as enforceability may be limited by bankruptcy, reorganization,
        insolvency, moratorium or other similar laws now or hereafter in effect relating
        to creditors’ rights generally, and by general principles of equity regardless
        of whether enforceability is considered in a proceeding in equity or at law;
        

      

      (c) No
        consent, approval, order or authorization of, or declaration, filing or
        registration with, any governmental entity is required to be obtained or
        made by
        Assignee in connection with the execution, delivery or performance by Assignee
        of this PAAR Agreement, or the consummation by it of the transactions
        contemplated hereby; and 

      

      (d) Assignee
        agrees to be bound as “Purchaser” by all of the terms, covenants and conditions
        of the Purchase Agreement with respect to the Assigned Loans, and from and
        after
        the date hereof, Assignee assumes for the benefit of each of Assignor and
        Company all of Assignor's obligations as “Purchaser” thereunder but solely with
        respect to such Assigned Loans.

       

      5. Company
        warrants and represents to, and covenant with, Assignor and Assignee as of
        the
        date hereof:

      

      (a) Attached
        hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
        which agreement is in full force and effect as of the date hereof and the
        provisions of which have not been waived, amended or modified in any respect,
        nor has any notice of termination been given thereunder; 

      

      (b)
         Company
        is duly organized, validly existing and in good standing under the laws of
        the
        jurisdiction of its incorporation, and has all requisite power and authority
        to
        service the Assigned Loans and otherwise to perform its obligations under
        the
        Purchase Agreement;

      

      
        (c)
          Company
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this PAAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          PAAR
          Agreement is in the ordinary course of Company’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Company’s charter or by-laws or any legal restriction, or any material agreement
          or instrument to which Company is now a party or by which it is bound,
          or result
          in the violation of any law, rule, regulation, order, judgment or decree
          to
          which Company or its property is subject. The execution, delivery and
          performance by Company of this PAAR Agreement and the consummation by it
          of the
          transactions contemplated hereby, have been duly authorized by all necessary
          corporate action on part of Company. This PAAR Agreement has been duly
          executed
          and delivered by Company, and, upon the due authorization, execution and
          delivery by Assignor and Assignee, will constitute the valid and legally
          binding
          obligation of Company, enforceable against Company in accordance with its
          terms
          except as enforceability may be limited by bankruptcy, reorganization,
          insolvency, moratorium or other similar laws now or hereafter in effect
          relating
          to creditors’ rights generally, and by general principles of equity regardless
          of whether enforceability is considered in a proceeding in equity or at
          law;

      

      

      
        (d)
          No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignee in connection with the execution, delivery or performance by Company
          of
          this PAAR Agreement, or the consummation by it of the transactions contemplated
          hereby; and

      

      

      
        (e)
          No
          event
          has occurred
          from the
          Closing Date to the date hereof which would render the representations
          and
          warranties as to the related Assigned Loans made by the Company in Sections
          3.01
          and 3.02 of the Purchase Agreement to be untrue in any material
          respect.

      

      

      Recognition
        of Assignee

      

      6. From
        and
        after the date hereof, Company shall recognize Assignee as owner of the Assigned
        Loans and will service the Assigned Loans in accordance with the Purchase
        Agreement. It is the intention of Assignor, Company and Assignee that this
        PAAR
        Agreement shall be binding upon and for the benefit of the respective successors
        and assigns of the parties hereto. Neither Company nor Assignor shall amend
        or
        agree to amend, modify, waiver, or otherwise alter any of the terms or
        provisions of the Purchase Agreement which amendment, modification, waiver
        or
        other alteration would in any way affect the Assigned Loans without the prior
        written consent of Assignee.

      

       

      Miscellaneous

      

      7. All
        demands, notices and communications related to the Assigned Loans, the Purchase
        Agreement and this PAAR Agreement shall be in writing and shall be deemed
        to
        have been duly given if personally delivered at or mailed by registered mail,
        postage prepaid, as follows:

       

      

      (a)        
         In
        the
        case of Company,

      

      ____________________

      ____________________

      ____________________

      ____________________

      ____________________

       

      With
        a
        copy to ______________________________________.

      

      
        	(b)  	
                In
                  the case of Assignor,

              

      

      

      ____________________

      ____________________

      ____________________

      ____________________

      ____________________ 

      

      (c)         
         In
        the
        case of Assignee,

      

      EMC
        Mortgage Corporation 

      Mac
        Arthur Ridge II 

      909
        Hidden Ridge Drive, Suite 200

      Irving,
        Texas 75038

      Attention:
        Mr. Edward Raice

      Telecopier
        No.: (972) 444-2810

      

      with
        a
        copy to:

      

      ___________________

      245
        Park
        Avenue

      New
        York,
        New York 10167

      Attention:
        ___________

      Telecopier
        No.: (212) 272-____

      

      8. Each
        party will pay any commissions it has incurred and the fees of its attorneys
        in
        connection with the negotiations for, documenting of and closing of the
        transactions contemplated by this PAAR Agreement. 

      

      9. This
        PAAR
        Agreement shall be construed in accordance with the laws of the State of
        New
        York, without regard to conflicts of law principles, and the obligations,
        rights
        and remedies of the parties hereunder shall be determined in accordance with
        such laws.

      

      10. No
        term
        or provision of this PAAR Agreement may be waived or modified unless such
        waiver
        or modification is in writing and signed by the party against whom such waiver
        or modification is sought to be enforced.

      

      11. This
        PAAR
        Agreement shall inure to the benefit of the successors and assigns of the
        parties hereto. Any entity into which Assignor, Assignee or Company may be
        merged or consolidated shall, without the requirement for any further writing,
        be deemed Assignor, Assignee or Company, respectively, hereunder.

      

      12. This
        PAAR
        Agreement shall survive the conveyance of the Assigned Loans, the assignment
        of
        the Purchase Agreement to the extent of the Assigned Loans by Assignor to
        Assignee and the termination of the Purchase Agreement.

      

      13. This
        PAAR
        Agreement may be executed simultaneously in any number of counterparts. Each
        counterpart shall be deemed to be an original and all such counterparts shall
        constitute one and the same instrument.

      

      14. In
        the
        event that any provision of this PAAR Agreement conflicts with any provision
        of
        the Purchase Agreement with respect to the Assigned Loans, the terms of this
        PAAR Agreement shall control. In the event that any provision of this PAAR
        Agreement conflicts with any provision of the Confirmation with respect to
        the
        Assigned Loans, the terms of this PAAR Agreement shall control.

      

      

      [Modification
        of Purchase Agreement

      

      
        15.
          The
          Company and Assignor hereby amend the Purchase Agreement as
          follows:

      

      

      (a) The
        following definitions are added to Section 1.01 of the Purchase
        Agreement:

      

      Securities
        Administrator: ________________________

      

      Supplemental
        PMI Insurer: ________________________

      

      Supplemental
        PMI Policy: The
        primary guarantee insurance policy of the Supplemental PMI Insurer attached
        hereto as Exhibit J, or any successor Supplemental PMI Policy given to the
        Servicer by the Assignee.

      

      Trustee:
         ________________________

      

      (b) The
        following definition is amended and restated:

      

      Insurance
        Proceeds: Proceeds
        of any Primary Mortgage Insurance Policy
        or
        Lender Primary Mortgage Insurance Policy,
        the
        Supplemental PMI Policy, any title policy, any hazard insurance policy or
        any
        other insurance policy covering a Mortgage Loan or other related Mortgaged
        Property, including any amounts required to be deposited in the Custodial
        Account pursuant to Section 4.04, to the extent such proceeds are not to
        be
        applied to the restoration of the related Mortgaged Property or released
        to the
        Mortgagor in accordance with Accepted Servicing Practices.

      

      (c) The
        following are added as the fourth, fifth and sixth paragraphs of Section
        4.08:

      

      “In
        connection with its activities as servicer, the Company agrees to prepare
        and
        present, on behalf of itself and the Purchaser, claims to the Supplemental
        PMI
        Insurer with respect to the Supplemental PMI Policy and, in this regard,
        to take
        such action as shall be necessary to permit recovery under any Supplemental
        PMI
        Policy respecting a defaulted Mortgage Loan. Pursuant to Section 4.04, any
        amounts collected by the Company under any Supplemental PMI Policy shall
        be
        deposited in the Custodial Account, subject to withdrawal pursuant to Section
        4.05.

      

      In
        accordance with the Supplemental PMI Policy, the Company shall provide to
        the
        Supplemental PMI Insurer any required information regarding the Mortgage
        Loans.

      

      The
        Company shall provide to the [Securities Administrator] on a monthly basis
        via
        computer tape, or other mutually acceptable format, the unpaid principal
        balance, insurer certificate number, lender loan number, and premium due
        the
        Supplemental PMI Insurer for each Mortgage Loan covered by the Supplemental
        PMI
        Policy. In addition, the Company agrees to forward to the Purchaser and the
        [Securities Administrator] any statements or other reports given by the
        Supplemental PMI Insurer to the Servicer in connection with a claim under
        the
        Supplemental PMI Policy.”

      

      (d) Clause
        (vi) of Section 6.1 is amended to read as follows:

      

      “Company
        ceases to be approved by either Fannie Mae or FHLMC as a mortgage loan seller
        or
        servicer for more than thirty days, or the Company fails to meet the servicer
        eligibility requirements of the Supplemental PMI Insurer; or”]

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this PAAR Agreement as
        of the
        day and year first above written.

      
         

        
          	 	 	 
	 	EMC
                  MORTGAGE
                  CORPORATION
	 	
                  Assignor

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  Name:   

                	 
	 	Title:	 

        

         

      

       

      
         

        
          	 	 	 
	 	 
	 	
                  Assignee

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  Name:   

                	 
	 	Title:	 

        

      

       

      
        
           

          
            	 	 	 
	 	 
	 	
                    Company

                  
	 
 	 
 	 
 
	 	By:  	 
	 	
                    Name:   

                  	 
	 	Title:	 

          

        

         

        
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      ATTACHMENT
        1

      

      ASSIGNED
        LOAN SCHEDULE

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ATTACHMENT
        2

      

      PURCHASE,
        WARRANTIES AND SERVICING AGREEMENT

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        E

      

      FORM
        OF
        TRIAL BALANCE

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G

      

      REQUEST
        FOR RELEASE OF DOCUMENTS AND RECEIPT

      

      RE: Mortgage
        Loan #___________________________________

      BORROWER:__________________________________________________

      PROPERTY:
        __________________________________________________

      

      

      Pursuant
        to a Purchase, Warranties and Servicing Agreement (the "Agreement") between
        the
        Company and the Purchaser, the undersigned hereby certifies that he or she
        is an
        officer of the Company requesting release of the documents for the reason
        specified below. The undersigned further certifies that:

      

      (Check
        one of the items below)

      

      _____ On
        _________________, the above captioned mortgage loan was paid in full or
        that
        the Company has been notified that payment in full has been or will be escrowed.
        The Company hereby certifies that all amounts with respect to this loan which
        are required under the Agreement have been or will be deposited in the Custodial
        Account as required.

      

      _____ The
        above
        captioned loan is being repurchased pursuant to the terms of the Agreement.
        The
        Company hereby certifies that the repurchase price has been credited to the
        Custodial Account as required under the Agreement.

      

      _____ The
        above
        captioned loan is being placed in foreclosure and the original documents
        are
        required to proceed with the foreclosure action. The Company hereby certifies
        that the documents will be returned to the Purchaser in the event of
        reinstatement.

      

      _____ Other
        (explain)

      

      _______________________________________________________

      _______________________________________________________

      

      All
        capitalized terms used herein and not defined shall have the meanings assigned
        to them in the Agreement.

      

      Based
        on
        this certification and the indemnities provided for in the Agreement, please
        release to the Company all original mortgage documents in your possession
        relating to this loan.

      

      Dated:_________________

      

      By:________________________________

      Signature

      ___________________________________

      Title

      

      Send
        documents to: _____________________________________________

      _____________________________________________

      _____________________________________________

      

      Acknowledgement:

      

      Purchaser
        hereby acknowledges that all original documents previously released on the
        above
        captioned mortgage loan have been returned and received by the
        Purchaser.

      

      

      Dated:________________

      

      By:________________________________

      Signature

      

      _______________________________

      Title

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      EXHIBIT
        H

      

      COMPANY’S
        UNDERWRITING GUIDELINES

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        I

       

      TERM
        SHEET

      

      This
        TERM
        SHEET (the "Term Sheet") dated _____________, between National City Mortgage
        Company, a ________ corporation, located at 3232 Newmark Drive, Miamisburg,
        Ohio
        45342 (the “Company”) and EMC Mortgage Corporation, a Delaware corporation,
        located at ______________ (the "Purchaser") is made pursuant to the terms
        and
        conditions of that certain Purchase, Warranties and Servicing Agreement (the
        "Agreement") dated as of October 1, 2001, between the Company and the Purchaser,
        the provisions of which are incorporated herein as if set forth in full herein,
        as such terms and conditions may be modified or supplemented hereby. All
        initially capitalized terms used herein unless otherwise defined shall have
        the
        meanings ascribed thereto in the Agreement. 

      

      The
        Purchaser hereby purchases from the Company and the Company hereby sells
        to the
        Purchaser, all of the Company’s right, title and interest in and to the Mortgage
        Loans described on the Mortgage Loan Schedule annexed hereto as Schedule
        I,
        pursuant to and in accordance with the terms and conditions set forth in
        the
        Agreement, as same may be supplemented or modified hereby. Hereinafter, the
        Company shall service the Mortgage Loans for the benefit of the Purchaser
        and
        all subsequent transferees of the Mortgage Loans pursuant to and in accordance
        with the terms and conditions set forth in the Agreement. 

      

      1. Definitions

      

      For
        purposes of the Mortgage Loans to be sold pursuant to this Term Sheet, the
        following terms shall have the following meanings:

      

      Aggregate
        Principal Balance

      (as
        of
        the Cut-Off Date):    

      

      Closing
        Date:    

      

      Custodian:    

      

      Cut-off
        Date:    

      

      Initial
        Weighted Average

      Mortgage
        Loan Remittance Rate:  

      

      Mortgage
        Loan:    

      

      Purchase
        Price Percentage:   

      

      Servicing
        Fee Rate:   

      

      Additional
        Closing Conditions: 

      

      In
        addition to the conditions specified in the Agreement, the obligation of
        each of
        the Company and the Purchaser is subject to the fulfillment, on or prior
        to the
        applicable Closing Date, of the following additional conditions: [None].
        

      

      Additional
        Loan Documents: 

      

      In
        addition to the contents of the Mortgage File specified in the Agreement,
        the
        following documents shall be delivered with respect to the Mortgage Loans:
        [None]

      

      [Additional]
        [Modification] of Representations and Warranties:

       

      [In
        addition to the representations and warranties set forth in the Agreement,
        as of
        the date hereof, the Company makes the following additional representations
        and
        warranties with respect to the Mortgage Loans: [None]. [Notwithstanding anything
        to the contrary set forth in the Agreement, with respect to each Mortgage
        Loan
        to be sold on the Closing Date, the representation and warranty set forth
        in
        Section ______ of the Agreement shall be modified to read as
        follows:]

      

      Except
        as
        modified herein, Section ______ of the Agreement shall remain in full force
        and
        effect as of the date hereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have caused their names to be signed
        hereto
        by their respective duly authorized officers as of the date first above
        written.

       

      
        
           

          
            	 	 	 
	 	NATIONAL
                    CITY
                    MORTGAGE COMPANY
	 	
                     

                  
	 
 	 
 	 
 
	 	By:  	 
	 	
                    Name:   

                  	 
	 	Title:	 

          

           

          
            
               

              
                	 	 	 
	 	
                        EMC
                          MORTGAGE CORPORATION

                      
	 	
                         

                      
	 
 	 
 	 
 
	 	By:  	 
	 	
                        Name:   

                      	 
	 	Title:	 

              

               

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

      

      
SCHEDULE
        I

      

      MORTGAGE
        LOAN SCHEDULE

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      AMENDMENT
        REG AB

       

      TO
        THE PURCHASE, WARRANTIES AND SERVICING AGREEMENT

       

      This
        is
        Amendment Reg AB (the “Amendment
        Reg AB”),
        dated
        as of March 1, 2006 (the “Amendment
        Date”),
        by
        and between EMC Mortgage Corporation (the “Purchaser”), and
        National City Mortgage, Co. (the “Company”)
        to
        that certain Seller’s Purchase, Warranties and Servicing Agreement dated as of
        October 1, 2001 between the Company and the Purchaser (the “Agreement”).

       

      W I T N E S S E T H

       

      WHEREAS,
        the Company and the Purchaser have agreed, subject to the terms and conditions
        of this Amendment Reg AB that the Agreement be amended to reflect certain
        agreed
        upon revisions to the terms of the Agreement.

       

      Accordingly,
        the Company and the Purchaser hereby agree, in consideration of the mutual
        premises and mutual obligations set forth herein, that the Agreement is hereby
        amended as follows:

       

      DEFINED
        TERMS

      

      [Capitalized
        terms not defined are presumed to be defined in the applicable
        Agreement.]

      

      Commission:
        The
        United States Securities and Exchange Commission.

      

      Company
        Information:
        As
        defined in Section 7(a).

      

      Depositor:
        The
        depositor, as such term is defined in Regulation AB, with respect to any
        Securitization Transaction.

      

      Exchange
        Act.
        The
        Securities Exchange Act of 1934, as amended.

      

      Master
        Servicer:
        With
        respect to any Securitization Transaction, the “master servicer,” if any,
        identified in the related transaction documents.

      

      Qualified
        Correspondent:
        Any
        Person from which the Company purchased Mortgage Loans, provided that the
        following conditions are satisfied: (i) such Mortgage Loans were originated
        pursuant to an agreement between the Company and such Person that contemplated
        that such Person would underwrite mortgage loans from time to time, for sale
        to
        the Company, in accordance with underwriting guidelines designated by the
        Company (“Designated Guidelines”) or guidelines that do not vary materially from
        such Designated Guidelines; (ii) such Mortgage Loans were in fact underwritten
        as described in clause (i) above and were acquired by the Company within
        180
        days after origination; (iii) either (x) the Designated Guidelines were,
        at the
        time such Mortgage Loans were originated, used by the Company in origination
        of
        mortgage loans of the same type as the Mortgage Loans for the Company’s own
        account or (y) the Designated Guidelines were, at the time such Mortgage
        Loans
        were underwritten, designated by the Company on a consistent basis for use
        by
        lenders in originating mortgage loans to be purchased by the Company; and
        (iv)
        the Company employed, at the time such Mortgage Loans were acquired by the
        Company, pre-purchase or post-purchase quality assurance procedures (which
        may
        involve, among other things, review of a sample of mortgage loans purchased
        during a particular time period or through particular channels) designed
        to
        ensure that Persons from which it purchased mortgage loans properly applied
        the
        underwriting criteria designated by the Company. For the avoidance of doubt,
        a
“Qualified Correspondent” includes a “table broker” or mortgage lender that
        originates loans underwritten and funded by the Company or an Affiliate of
        the
        Company.

      

      Reconstitution:
        Any
        Securitization Transaction or Whole Loan Transfer.

      

      Reconstitution
        Agreement: Any servicing agreement relating to a Reconstitution.

      

      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.

      

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

      

      Securitization
        Transaction.
        Any
        transaction involving either (1) a sale or other transfer of some or all
        of the
        Mortgage Loans directly or indirectly to an issuing entity in connection
        with an
        issuance of publicly offered or privately placed, rated or unrated
        mortgage-backed securities or (2) an issuance of publicly offered or privately
        placed, rated or unrated securities, the payments on which are determined
        primarily by reference to one or more portfolios of residential mortgage
        loans
        consisting, in whole or in part, of some or all of the Mortgage
        Loans.

      

      Servicer:
        As
        defined in Section 3(c).

      

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

      

      Static
        Pool Information:
        Static
        pool information as described in Item 1105(a)(1)-(3) and 1105(c) of Regulation
        AB.

      

      Subcontractor:
        Any
        vendor, subcontractor or other Person that is not responsible for the overall
        servicing (as “servicing” is commonly understood by participants in the
        mortgage-backed securities market) of Mortgage Loans but performs one or
        more
        discrete material functions identified in Item 1122(d) of Regulation AB with
        respect to Mortgage Loans under the direction or authority of the Company
        or a
        Subservicer.

      

      Subservicer:
        Any
        Person that services Mortgage Loans on behalf of the Company or any Subservicer
        and is responsible for the performance (whether directly or through Subservicers
        or Subcontractors) of a substantial portion of the material servicing functions
        required to be performed by the Company under this Agreement or any
        Reconstitution Agreement that are identified in Item 1122(d) of Regulation
        AB;
        provided, however, that the term “Subservicer” shall not include any master
        servicer, or any special servicer other than the Company engaged at the request
        of a Depositor, Purchaser or investor in a Securitization Transaction, nor
        any
“back-up servicer” or trustee performing servicing functions on behalf of a
        Securitization Transaction.

      

      Third-Party
        Originator:
        Each
        Person, other than a Qualified Correspondent, that originated Mortgage Loans
        acquired by the Company and shall not include a mortgage broker that does
        not
        fund loans.

      

      Whole
        Loan Transfer:
        Any
        sale or transfer of some or all of the Mortgage Loans, other than a
        Securitization Transaction.

       

      ARTICLE
        1

      COMPLIANCE
        WITH REGULATION AB

      

      Section
        1
Intent
        of the Parties.

      

      The
        Purchaser and the Company acknowledge and agree that the purpose of Article
        1 of
        this Agreement is to facilitate compliance by the Purchaser and any Depositor
        with the provisions of Regulation AB and related rules and regulations of
        the
        Commission. Although Regulation AB is applicable by its terms only to offerings
        of asset-backed securities that are registered under the Securities Act,
        the
        Company acknowledges that investors in privately offered securities may require
        that the Purchaser or any Depositor provide comparable disclosure in
        unregistered offerings and will provide such comparable disclosure in
        unregistered offerings to the extent such disclosure becomes consistent with
        industry practice. References in this Agreement to compliance with Regulation
        AB
        include provision of comparable disclosure in private offerings. Neither
        the
        Purchaser nor any Depositor shall exercise its right to request (if any request
        is required) delivery of information or other performance under these provisions
        other than in good faith, or for purposes other than compliance with the
        provisions of the Securities Act, the Exchange Act and the rules and regulations
        of the Commission thereunder (or the provision in a private offering of
        disclosure comparable to that required under the Securities Act). The Company
        acknowledges that interpretations of the requirements of Regulation AB may
        change over time, whether due to interpretive guidance provided by the
        Commission or its staff, consensus among participants in the asset-backed
        securities markets, advice of counsel, or otherwise, and agrees to comply
        with
        reasonable requests made by the Purchaser, any Master Servicer or any Depositor
        in good faith for delivery of information under these provisions on the basis
        of
        evolving interpretations of Regulation AB. In connection
        with any Securitization Transaction, the Company shall cooperate as set forth
        herein with the Purchaser to deliver to the Purchaser (including any of its
        assignees or designees) and any Depositor, any and all statements, reports,
        certifications, records and any other information necessary in the good faith
        determination of the Purchaser or any Depositor to permit the Purchaser or
        such
        Depositor to comply with the provisions of Regulation AB, together with such
        disclosures relating to the Company, any Subservicer, any Third-Party Originator
        and the Mortgage Loans, or the servicing of the Mortgage Loans, reasonably
        believed by the Purchaser or any Depositor to be necessary in order to effect
        such compliance.

      

      Section
        2
        Additional Representations and Warranties of the Company.

      

      (a) The
        Company shall be deemed to represent to the Purchaser and to any Depositor,
        as
        of the date on which information is first provided to the Purchaser or any
        Depositor under Section 3 that, except as disclosed in writing to the Purchaser
        or such Depositor prior to such date and unless otherwise disclosed in such
        information provided under Section 3: (i)
        the Company 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 the Company; (ii)
the
        Company 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 applicable servicing criteria with respect to other securitizations
        of
        residential mortgage loans involving the Company as servicer
        has been disclosed or reported by the Company; (iv) no material
        changes to the Company’s policies or procedures with respect to the servicing
        function it will perform under this Agreement and any Reconstitution Agreement
        for mortgage loans of a type similar to the Mortgage Loans
        have occurred during the three-year period immediately preceding the
scheduled
        closing date of the related
        Securitization Transaction; (v) there are no aspects of the Company’s financial
        condition that could have a material adverse effect on the performance by
        the
        Company of its servicing obligations under this Agreement or any Reconstitution
        Agreement;
        (v) there are no material
        legal or governmental proceedings pending (or known to be contemplated by
        Government authorities) against the Company, or to the knowledge of the Company,
        any Subservicer or any Third-Party Originator;
        and (vi) there are no affiliations, relationships or transactions relating
        to
        the Company, any Subservicer or any Third-Party Originator with respect to
        any
        Securitization Transaction and any party thereto identified by the related
        Depositor of a type described in Item 1119 of Regulation AB.

      

      (b) If
        so requested by the Purchaser or any Depositor on any date following
the
        date
        on which information is first provided to the Purchaser or any Depositor
        under
        Section 3,
        the Company shall, within five business days following such request, confirm
        in
        writing the accuracy of the representations and warranties set forth in
        paragraph (a) of this Section or, if any such representation and warranty
        is not
        accurate as of the date of such request, provide reasonably adequate disclosure
        of the pertinent facts, in writing, to the requesting party.

      

      Section
        3
Information
        to Be Provided by the Company.

      

      In
        connection with any Securitization Transaction the Company shall (i)
within
        five business days
        following request by the Purchaser or any Depositor, provide to the Purchaser
        and such Depositor (or, as applicable, cause each Third-Party Originator
        and
        each Subservicer to provide), in writing, or in a mutually agreed upon
        electronic format, and in form and substance reasonably satisfactory to the
        Purchaser and such Depositor, the information and materials specified in
        paragraphs (a), (b), (c) and (f) of this Section, and (ii) as promptly as
        practicable following notice to or discovery by the Company, provide to the
        Purchaser and any Depositor (in writing, or in a mutually agreed upon electronic
        format, and in form and substance reasonably satisfactory to the Purchaser
        and
        such Depositor) the information specified in paragraph (d) of this
        Section.

      

      (a) If
        so
        requested by the Purchaser or any Depositor, the Company shall provide (or
        cause
        each Third-Party Originator or Subservicer, as applicable, to provide) such
        information, as mutually agreed upon by the Purchaser or any Depositor and
        the
        Company (or such Third-Party Originator or Subservicer, as applicable),
        regarding (i) the Company, as originator of the Mortgage Loans (including
        as an
        acquirer of Mortgage Loans from a Qualified Correspondent), or (ii) each
        Third-Party Originator, and (iii) as applicable, each Subservicer, as is
        requested for the purpose of compliance with Items 1103(a)(1), 1105, 1110,
        1117
        and 1119 of Regulation AB. Such information shall include, at a
        minimum:

      

      (A)   
        the
        originator’s form of organization;

      

      (B)   
        a
        description of the originator’s origination program and how long the originator
        has been engaged in originating residential mortgage loans, which description
        shall include a discussion of the originator’s experience in originating
        mortgage loans of a similar type as the Mortgage Loans; information regarding
        the size and composition of the originator’s origination portfolio; and
        information that may be materialin the good faith judgment of the Purchaser
        or
        any Depositor, to an analysis of the performance of the Mortgage Loans,
        including the originators’ credit-granting or underwriting criteria for mortgage
        loans of similar type(s) as the Mortgage Loans and such other information
        as the
        Purchaser or any Depositor may reasonably request for the purpose of compliance
        with Item 1110(b)(2) of Regulation AB;

      

      (C)   
        a
        description of any material legal proceedings pending (or known to be
        contemplated by governmental authorities) against the Company, or to the
        knowledge of the Company, each Third-Party Originator and each Subservicer;
        and

      

      (D)   
        a
        description of any affiliation or relationship between the Company, each
        Third-Party Originator, each Subservicer and any of the following parties
        to a
        Securitization Transaction, as such parties are identified and noticed to
        the
        Company by the Purchaser or any Depositor in writing in advance of such
        Securitization Transaction:

      

      (1)  the
        sponsor;

      (2)  the
        depositor;

      (3)  the
        issuing entity;

      (4)  any
        servicer;

      (5)  any
        trustee;

      (6)  any
        originator;

      (7)  any
        significant obligor;

      (8)  any
        enhancement or support provider; and

      (9)  any
        other
        material transaction party.

      

      (b) If
        so
        requested by the Purchaser or any Depositor, the Company shall provide (or,
        as
        applicable, cause each Third-Party Originator to provide) Static Pool
        Information with respect to the mortgage loans (of a similar type as the
        Mortgage Loans, as reasonably identified by the Purchaser as provided below)
        originated by (i) the Company, if the Company is an originator of Mortgage
        Loans
        (including as an acquirer of Mortgage Loans from a Qualified Correspondent),
        and/or (ii) each Third-Party Originator. Such Static Pool Information shall
        be
        prepared by the Company (or Third-Party Originator) on the basis of its
        reasonable, good faith interpretation of the requirements of Item 1105(a)(1)-(3)
        of Regulation AB. To the extent that there is reasonably available to the
        Company (or Third-Party Originator) Static Pool Information with respect
        to more
        than one mortgage loan type, the Purchaser or any Depositor shall be entitled
        to
        specify whether some or all of such information shall be provided pursuant
        to
        this paragraph. The content of such Static Pool Information may be in the
        form
        customarily provided by the Company, and need not be customized for the
        Purchaser or any Depositor. Such Static Pool Information for each vintage
        origination year or prior securitized pool, as applicable, shall be presented
        in
        increments no less frequently than quarterly over the life of the mortgage
        loans
        included in the vintage origination year or prior securitized pool. The most
        recent periodic increment must be as of a date no later than 135 days prior
        to
        the date of the prospectus or other offering document in which the Static
        Pool
        Information is to be included or incorporated by reference. The Static Pool
        Information shall be provided in an electronic format that provides a permanent
        record of the information provided, such as a portable document format (.pdf)
        file, or other such electronic format as mutually agreed upon by the Purchaser
        or the Depositor and the Company, as applicable.

      

      Promptly
        following notice or discovery of a material error in Static Pool Information
        provided pursuant to the immediately preceding paragraph (including an omission
        to include therein information required to be provided pursuant to such
        paragraph), the Company shall provide corrected Static Pool Information to
        the
        Purchaser or any Depositor, as applicable, in the same format in which Static
        Pool Information was previously provided to such party by the
        Company.

      

      If
        so
        requested by the Purchaser or any Depositor, the Company shall provide (or,
        as
        applicable, cause each Third-Party Originator to provide), at the expense
        of the
        Purchaser or Depositor, as applicable (to the extent of any additional
        incremental expense associated with delivery pursuant to this Agreement),
        such
        agreed-upon procedures letters of certified public accountants reasonably
        acceptable to the Purchaser or Depositor, as applicable, pertaining
        to Static Pool Information relating to prior securitized pools for
        securitizations closed on or after January 1, 2006 or, in the case of Static
        Pool Information with respect to the Company’s or Third-Party Originator’s
        originations or purchases, to calendar months commencing January 1,
        2006,
        as the
        Purchaser or such Depositor shall reasonably request. Such statements and
        letters shall be addressed to and be for the benefit of such parties as the
        Purchaser or such Depositor shall designate, which may include, by way of
        example, any Sponsor, any Depositor and any broker dealer acting as underwriter,
        placement agent or initial purchaser with respect to a Securitization
        Transaction[, and shall also be addressed to and for the benefit of the Company,
        its assignees and such Third-Party Originator. Any such statement or letter
        may
        take the form of a standard, generally applicable document accompanied by
        a
        reliance letter authorizing reliance by the addressees designated by the
        Purchaser or such Depositor.

      

      (c) If
        so
        requested by the Purchaser or any Depositor, the Company shall provide such
        information regarding the Company, as servicer of the Mortgage Loans, and
        cause
        each Subservicer to so provide such information (each of the Company and
        each
        Subservicer, for purposes of this paragraph, a “Servicer”), as is requested for
        the purpose of compliance with Item 1108 of Regulation AB. Such information
        shall include, at a minimum:

      

      (A) the
        Servicer’s form of organization;

       

      (B) a
        description of how long the Servicer has been servicing residential mortgage
        loans; a general discussion of the Servicer’s experience in servicing assets of
        any type as well as a more detailed discussion of the Servicer’s experience in,
        and procedures for, the servicing function it will perform under this Agreement
        and any Reconstitution Agreements; information regarding the size, composition
        and growth of the Servicer’s portfolio of residential mortgage loans of a type
        similar to the Mortgage Loans and information on factors related to the Servicer
        that may be material, in the good faith judgment of the Purchaser or any
        Depositor, to any analysis of the servicing of the Mortgage Loans or the
        related
        asset-backed securities, as applicable, including, without
        limitation:

       

      (1) whether
        any prior securitizations of mortgage loans of a type similar to the Mortgage
        Loans involving the Servicer have defaulted or experienced an early amortization
        or other performance triggering event because of servicing during the three-year
        period immediately preceding the scheduled closing date of the related
        Securitization Transaction;

      (2) the
        extent of outsourcing the Servicer utilizes;

      (3) whether
        there has been previous disclosure of material noncompliance with the applicable
        servicing criteria with respect to other securitizations of residential mortgage
        loans involving the Servicer as a servicer during the three-year period
        immediately preceding the scheduled closing date of the related Securitization
        Transaction; and

      (4) whether
        the Servicer has 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; and

      (5) such
        other information as the Purchaser or any Depositor may reasonably request
        for
        the purpose of compliance with Item 1108(b)(2) of Regulation AB;

       

      (C) a
        description of any material changes during the three-year period immediately
        preceding the scheduled closing date of the related Securitization Transaction
        to the Servicer’s policies or procedures with respect to the servicing function
        it will perform under this Agreement and any Reconstitution Agreements for
        mortgage loans of a type similar to the Mortgage Loans;

       

      (D) information
        regarding the Servicer’s financial condition, to the extent that there is a
        material risk that the effect on one or more aspects of servicing resulting
        from
        such financial condition would have a material impact on pool performance
        or on
        the performance by the Company of its servicing obligations under this Agreement
        or any Reconstitution Agreement;

       

      (E) information
        regarding advances made by the Servicer on the Mortgage Loans and the Servicer’s
        overall servicing portfolio of residential mortgage loans for the three-year
        period immediately preceding the scheduled closing date of the related
        Securitization Transaction, which may be limited to a statement by an authorized
        officer of the Servicer to the effect that the Servicer has made all advances
        required to be made on residential mortgage loans serviced by it during such
        period, or, if such statement would not be accurate, information regarding
        the
        percentage and type of advances not made as required, and the reasons for
        such
        failure to advance;

       

      (F) a
        description of the Servicer’s processes and procedures designed to address any
        special or unique factors involved in servicing loans of a similar type as
        the
        Mortgage Loans;

      

      (G) a
        description of the Servicer’s processes for handling delinquencies, losses,
        bankruptcies and recoveries, such as through liquidation of mortgaged
        properties, sale of defaulted mortgage loans or workouts; and

      

      (H) information
        as to how the Servicer defines or determines delinquencies and charge-offs,
        including the effect of any grace period, re-aging, restructuring, partial
        payments considered current or other practices with respect to delinquency and
        loss experience.

      

      (d) For
        the
        purpose of satisfying the reporting obligation under the Exchange Act with
        respect to any class of asset-backed securities, at the time the Company
        knows
        or should have known of any of the circumstances in subsection (i) of this
        paragraph, the Company shall (or shall cause each Subservicer and Third-Party
        Originator to) (i) immediately notify the Purchaser, any Master Servicer
        and any
        Depositor in writing of (A) any material litigation proceedings pending or
        governmental proceedings known to be contemplated against the Company, any
        Subservicer or any Third-Party Originator, as applicable, (B) any affiliations
        or relationships that develop following the closing date of a Securitization
        Transaction between the Company, any Subservicer or any Third-Party Originator
        and any of the parties specified in clause (D) of paragraph (a) of this Section
        (and any other parties identified in writing by the requesting party) with
        respect to such Securitization Transaction, (C) any Event of Default under
        the
        terms of this Agreement or any Reconstitution Agreement, (D) any merger,
        consolidation or sale of substantially all of the assets of the Company,
        and (E)
        the Company’s entry into an agreement with a Subservicer to perform or assist in
        the performance of any of the Company’s obligations under this Agreement or any
        Reconstitution Agreement and (ii) provide to the Purchaser and any Depositor
        a
        description of such proceedings, affiliations or relationships.

      

      All
        notification pursuant to this Section 3(d) should
        be
        sent to EMC by e-mail to regABnotifications@bear.com.
        In
        addition, each
        such
        notice
        other
        than those pursuant to Section 3(d)(i)(A), should be sent to:

      

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Conduit Seller Approval Dept.

      Facsimile:
        (214) 626-3751

      Email:
        sellerapproval@bear.com

      

      With
        a
        copy to:

      

      Bear,
        Stearns & Co. Inc.

      383
        Madison Avenue, 3rd Floor

      New,
        York, NY 10179

      Attention:
        Global Credit Administration

      Facsimile:
        (212) 272-6564

      

      Notifications
        pursuant to Section 3(d)(i)(A) should be sent to: 

      

      EMC
        Mortgage Corporation

      Two
        Mac
        Arthur Ridge

      909
        Hidden Ridge Drive, Suite 200

      Irving,
        TX 75038

      Attention:
        Associate General Counsel for Loan Administration

      Facsimile:
        (972) 831-2555

      

      With
        copies to:

      

      Bear,
        Stearns & Co. Inc.

      383
        Madison Avenue, 3rd Floor

      New,
        York, NY 10179

      Attention:
        Global Credit Administration

      Facsimile:
        (212) 272-6564

      

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive

      Lewisville,
        TX 75067-3884

      Attention:
        Conduit Seller Approval Dept.

      Facsimile:
        (214) 626-3751

      Email:
        sellerapproval@bear.com

      

      (e) As
        a
        condition to the succession to the Company or any Subservicer as servicer
        or
        subservicer under this Agreement or any Reconstitution Agreement by any Person
        (i) into which the Company or such Subservicer may be merged or consolidated,
        or
        (ii) which may be appointed as a successor to the Company or any Subservicer,
        the Company shall provide to the Purchaser, any Master Servicer and any
        Depositor, at least fifteen calendar days prior to the effective date of
        such
        succession or appointment, (x) written notice to the Purchaser and any Depositor
        of such succession or appointment and (y) in writing and in form and substance
        reasonably satisfactory to the Purchaser and such Depositor, all information
        reasonably requested by the Purchaser or any Depositor in order to comply
        with
        its reporting obligation under Item 6.02 of Form 8-K with respect to the
        related
        Securitization Transaction.

      

      (f) In
        addition to such information as the Company, as servicer, is obligated to
        provide pursuant to other provisions of this Agreement, if so requested by
        the
        Purchaser or any Depositor, the Company shall provide such information regarding
        the performance or servicing of the Mortgage Loans as is reasonably required
        to
        facilitate preparation of distribution reports in accordance with Item 1121
        of
        Regulation AB as applicable to the Company. The Company shall also provide
        a
        monthly report, in the form of Exhibit
        C
        hereto,
        or such other form as is mutually acceptable to the Company, the Purchaser
        and
        any Master Servicer, Exhibit
        D
        with
        respect to defaulted mortgage loans and Exhibit
        E,
        with
        respect to realized losses and gains, with each such report. Such information
        shall be provided concurrently with the monthly reports otherwise required
        to be
        delivered by the servicer under this Agreement, commencing with the first
        such
        report due not less than ten Business Days following such request. 

      

      (g)
        In
        addition to such information as the Company, as servicer, is obligated to
        provide pursuant to other provisions of this Agreement, not later than ten
        days
        prior to the deadline for the filing of any distribution report on Form 10-D
        in
        respect of any Securitization Transaction that includes any of the Mortgage
        Loans serviced by the Company or any Subservicer, the Company or such
        Subservicer, as applicable, shall, to the extent the Company or such Subservicer
        has knowledge, provide to the party responsible for filing such report
        (including, if applicable, the Master Servicer) notice of the occurrence
        of any
        of the following events along with all information, data, and materials related
        thereto as may be required to be included in the related distribution report
        on
        Form 10-D (as specified in the provisions of Regulation AB referenced
        below):

      (i) any
        material modifications, extensions or waivers of pool asset terms, fees,
        penalties or payments during the distribution period or that have cumulatively
        become material over time (Item 1121(a)(11) of Regulation AB);

      

      (ii) material
        breaches of pool asset representations or warranties or transaction covenants
        (Item 1121(a)(12) of Regulation AB); and

      

      (iii) information
        regarding any pool asset changes (such as, additions, substitutions or
        repurchases), and any material changes in origination, underwriting or other
        criteria for acquisition or selection of pool assets (Item 1121(a)(14) of
        Regulation AB).

      

      (h)
        The
        Company shall provide, as may be reasonably requested by the Purchaser, any
        Master Servicer or any Depositor, evidence of the authorization of the person
        signing any certification or statement, copies or other evidence of Fidelity
        Bond Insurance and Errors and Omission Insurance policy, financial information
        and reports, and such other information related to the Company or any
        Subservicer or the Company or such Subservicer’s performance hereunder to the
        Purchaser, any Master Servicer and any Depositor.

      

      Section
        4
Servicer
        Compliance Statement.

      

      On
        or
        before March 1 of each calendar year, commencing in 2007, the Company shall
        deliver to the Purchaser, any Master Servicer and any Depositor a statement
        of
        compliance addressed to the Purchaser, such Master Servicer and such Depositor
        and signed by an authorized officer of the Company, to the effect that (i)
        a
        review of the Company’s activities as servicer during the immediately preceding
        calendar year (or applicable portion thereof) and of its performance under
        this
        Agreement and any applicable Reconstitution Agreement during such period
        has
        been made under such officer’s supervision, and (ii) to the best of such
        officers’ knowledge, based on such review, the Company has fulfilled all of its
        obligations under this Agreement and any applicable Reconstitution Agreement
        in
        all material respects throughout such calendar year (or applicable portion
        thereof) or, if there has been a failure to fulfill any such obligation in
        any
        material respect, specifically identifying each such failure known to such
        officer and the nature and the status thereof.

      

      

      Section
        5
Report
        on Assessment of Compliance and Attestation.

      

      (a) On
        or
        before March 1 of each calendar year, commencing in 2007, the 

      Company
        shall:

      

      (i) deliver
        to the Purchaser, any Master Servicer and any Depositor a report (in form
        and
        substance reasonably satisfactory to the Purchaser, such Master Servicer
        and
        such Depositor) regarding the Company’s assessment of compliance with the
        Servicing Criteria during the immediately preceding calendar year, as required
        under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation
        AB. Such report shall be addressed to the Purchaser, such Master Servicer
        and
        such Depositor and signed by an authorized officer of the Company, and shall
        address each of the applicable Servicing Criteria specified on Exhibit B
        hereto;

      

      (ii) deliver
        to the Purchaser, any Master Servicer and any Depositor a report of a registered
        public accounting firm reasonably acceptable to the Purchaser, such Master
        Servicer and such Depositor that attests to, and reports on, the assessment
        of
        compliance made by the Company and delivered pursuant to the preceding
        paragraph. Such attestation shall be in accordance with Rules 1-02(a)(3)
        and
        2-02(g) of Regulation S-X under the Securities Act and the Exchange
        Act;

      

      (iii) cause
        each Subservicer, and each Subcontractor determined by the Company pursuant
        to
        Section 6(b) to be “participating in the servicing function” within the meaning
        of Item 1122 of Regulation AB, to deliver to the Purchaser, any Master Servicer
        and any Depositor an assessment of compliance and accountants’ attestation as
        and when provided in paragraphs (a) and (b) of this Section; and

      

      (iv) deliver
        and cause each Subservicer and Subcontractor described in clause (iii) to
        provide to the Purchaser, any Master Servicer any Depositor and any other
        Person
        that will be responsible for signing the certification (a “Sarbanes
        Certification”) required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act
        (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) on behalf of
        an
        asset-backed issuer with respect to a Securitization Transaction a certification
        signed by the appropriate officer of the Company in the form attached hereto
        as
        Exhibit A; provided that such certification delivered by the Company may
        not be
        filed as an exhibit to, or included in, any offering document or registration
        statement.

      

      The
        Company acknowledges that the parties identified in clause (a)(iv) above
        may
        rely on the certification provided by the Company pursuant to such clause
        in
        signing a Sarbanes Certification and filing such with the
        Commission.

      

      (b) Each
        assessment of compliance provided by a Subservicer pursuant to 

      Section
        5(a)(i) shall address each of the Servicing Criteria specified on Exhibit
        B
        hereto. An assessment of compliance provided by a Subcontractor pursuant
        to
        Section 5(a)(iii) need not address any elements of the Servicing Criteria
        other
        than those specified by the Company pursuant to Section 6.

      

      Section
        6
Use
        of
        Subservicers and Subcontractors.

      

      The
        Company shall not hire or otherwise utilize the services of any Subservicer
        to
        fulfill any of the obligations of the Company as servicer under this Agreement
        or any Reconstitution Agreement unless the Company complies with the provisions
        of paragraph (a) of this Section. The Company shall not hire or otherwise
        utilize the services of any Subcontractor, and shall not permit any Subservicer
        to hire or otherwise utilize the services of any Subcontractor, to fulfill
        any
        of the obligations of the Company as servicer under this Agreement or any
        Reconstitution Agreement unless the Company complies with the provisions
        of
        paragraph (b) of this Section.

      

      (a) It
        shall
        not be necessary for the Company to seek the consent of the Purchaser, any
        Master Servicer or any Depositor to the utilization of any Subservicer. The
        Company shall cause any Subservicer used by the Company (or by any Subservicer)
        for the benefit of the Purchaser and any Depositor to comply with the provisions
        of this Section and with Sections 2, 3(c), (e), (f) and (g), 4, 5, and 07
        of
        this Agreement to the same extent as if such Subservicer were the Company,
        and
        to provide the information required with respect to such Subservicer under
        Section 3(d) of this Agreement. The Company shall be responsible for obtaining
        from each Subservicer and delivering to the Purchaser and any Depositor any
        servicer compliance statement required to be delivered by such Subservicer
        under
        Section 4, any assessment of compliance and attestation required to be delivered
        by such Subservicer under Section 5 and any certification required to be
        delivered to the Person that will be responsible for signing the Sarbanes
        Certification under Section 5 as and when required to be delivered.

      

      (b) It
        shall
        not be necessary for the Company to seek the consent of the Purchaser, any
        Master Servicer or any Depositor to the utilization of any Subcontractor.
        The
        Company shall promptly upon request provide to the Purchaser, any Master
        Servicer and any Depositor (or any designee of the Depositor, such as a master
        servicer or administrator) a written description (in form and substance
        satisfactory to the Purchaser, any Master Servicer and such Depositor) of
        the
        role and function of each Subcontractor utilized by the Company or any
        Subservicer, specifying (i) the identity of each such Subcontractor, (ii)
        which
        (if any) of such Subcontractors are “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB, and (iii) which elements
        of
        the Servicing Criteria will be addressed in assessments of compliance provided
        by each Subcontractor identified pursuant to clause (ii) of this
        paragraph.

      

      As
        a
        condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB, the Company shall cause any such Subcontractor used by the
        Company (or by any Subservicer) for the benefit of the Purchaser and any
        Depositor to comply with the provisions of Sections 5 and 7 of this Agreement
        to
        the same extent as if such Subcontractor were the Company. The Company shall
        be
        responsible for obtaining from each Subcontractor and delivering to the
        Purchaser and any Depositor any assessment of compliance and attestation
        and the
        other certifications required to be delivered by such Subcontractor under
        Section 5, in each case as and when required to be delivered.

      

      Section
        7
Indemnification;
        Remedies.
        

      

      (a) The
        Company
        shall
        indemnify the Purchaser and each of the following parties participating
        in a Securitization Transaction: each
        sponsor and issuing entity; each Person (including, but not limited to, any
        Master Servicer) responsible for the preparation, execution or filing of
        any
        report required to be filed with the Commission with respect to such
        Securitization Transaction, or for execution of a certification pursuant
        to Rule
        13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
        Securitization Transaction; each broker dealer acting as underwriter, placement
        agent or initial purchaser,
        each
        Person who controls any of such parties or the Depositor (within
        the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
        Act);
        and the
        respective present and former directors, officers, employees, agents and
        affiliates of each of the foregoing and the Depositor (each, an “Indemnified
        Party”), and shall hold each of them (each, an “Indemnified Party”) harmless
        from and against any claims, losses, damages, penalties, fines, forfeitures,
        legal fees and expenses and related costs, judgments, and any other costs,
        fees
        and expenses that any of them may sustain arising out of or based
        upon:

      

      (i)(A) any
        untrue statement of a material fact contained or alleged to be contained
        in
any
        information, report, certification, accountants’ letter or other
        material
        provided
under
        this Article 1 by
        or on
        behalf of the Company,
        or provided under this Article 1 by or on behalf of any Subservicer,
        Subcontractor or Third-Party Originator (collectively, the “Company
        Information”),
        or (B)
        the omission or alleged omission to state in the Company Information a material
        fact required to be stated in the Company Information or necessary in order
        to
        make the statements therein, in the light of the circumstances under which
        they
        were made, not misleading; provided,
        by way of clarification,
        that
        clause (B) of this paragraph shall be construed solely by reference to the
        Company Information and not to any other information communicated in connection
        with a sale or purchase of securities, without regard to whether the Company
        Information or any portion thereof is presented together with or separately
        from
        such other information;

      

      (ii) any
        breach by the Company of its obligations under this Article I, including
        particularly the failure by the Company, any Subservicer, any Subcontractor
        or
        any Third-Party
        Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Article I, including
        any failure by the Company to identify pursuant to Section 6(b) any
        Subcontractor “participating in the servicing function” within the meaning of
        Item 1122 of Regulation AB; or

      

      (iii) any
        breach by the Company of a representation or warranty set forth in Section
        2(a)
        or in a writing furnished pursuant to Section 2(b) and made as of a date
        prior
        to the closing date of the related Securitization Transaction, to the extent
        that such breach is not cured by such closing date, or any breach by the
        Company
        of a representation or warranty in a writing furnished pursuant to Section
        2(b)
        to the extent made as of a date subsequent to such closing date; or

      

      (iv) if
        the
        indemnification provided for herein is unavailable or insufficient to hold
        harmless an Indemnified Party, then the Company agrees that it shall contribute
        to the amount paid or payable by such Indemnified Party as a result of any
        claims, losses, damages or liabilities incurred by such Indemnified Party
        in
        such proportion as is appropriate to reflect the relative fault of such
        Indemnified Party on the one hand and the Company on the other.

       

      

      In
        the
        case of any failure of performance described in clause (a)(ii) of this Section,
        the Company shall promptly reimburse the Purchaser, any 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 such
        Securitization Transaction, or for execution of a certification pursuant
        to Rule
        13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
        Securitization 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 Company, any
        Subservicer, any Subcontractor or any Third-Party
        Originator.

      

      This
        indemnification shall survive the termination of this Agreement or the
        termination of any party to this Agreement.

      

      (b) (i) Any
        failure by the Company, any Subservicer, any Subcontractor or any Third-Party
        Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Article I, or any
        breach by the Company of a representation or warranty set forth in Section
        2(a)
        or in a writing furnished pursuant to Section 2(b) and made as of a date
        prior
        to the closing date of the related Securitization Transaction, to the extent
        that such breach is not cured by such closing date, or any breach by the
        Company
        of a representation or warranty in a writing furnished pursuant to Section
        2(b)
        to the extent made as of a date subsequent to such closing date, shall, except
        as provided in clause (ii) of this paragraph, immediately and automatically,
        without notice or grace period, constitute an Event of Default with respect
        to
        the Company under this Agreement and any applicable Reconstitution Agreement,
        if
        such failure or breach is not cured within two (2) Business Days after the
        Company receives written notice of such failure or breach (which may be provided
        by e-mail), and shall entitle the Purchaser or any Depositor, as applicable,
        in
        its sole discretion to terminate the rights and obligations of the Company
        as
        servicer under this Agreement and/or any applicable Reconstitution Agreement
        without payment (notwithstanding anything in this Agreement or any applicable
        Reconstitution Agreement to the contrary) of any compensation to the Company
        except for reimbursing
        the Company for any servicing advances that the Company actually made as
        servicer pursuant to this Agreement and rights
        arising
        prior to such termination (and if the Company is servicing any of the Mortgage
        Loans in a Securitization Transaction, appoint a successor servicer reasonably
        acceptable to any Master Servicer for such Securitization Transaction);
provided
        that to
        the extent that any provision of this Agreement and/or any applicable
        Reconstitution Agreement expressly provides for the survival of certain rights
        or obligations following termination of the Company as servicer, such provision
        shall be given effect.

       

      (ii) Any
        failure by the Company, any Subservicer or any Subcontractor to deliver any
        information, report, certification or accountants’ letter when and as required
        under Section 4 or 5, including any failure by the Company to identify pursuant
        to Section 6(b) any Subcontractor “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB, which continues unremedied
        for
        ten calendar days after the date of written notice from the Master Servicer
        shall constitute an Event of Default (notwithstanding any other provision
        in
        this Agreement or any Reconstitution Agreement to the contrary) with respect
        to
        the Company under this Agreement and any applicable Reconstitution Agreement,
        and shall entitle the Purchaser, any Master Servicer or any Depositor, as
        applicable, in its sole discretion to terminate the rights and obligations
        of
        the Company as servicer under this Agreement and/or any applicable
        Reconstitution Agreement without payment (notwithstanding anything in this
        Agreement to the contrary) of any compensation to the Company except for
        reimbursing
        the Company for any servicing advances that the Company actually made as
        servicer pursuant to this Agreement and rights
        arising
        prior to such termination; provided
        that to
        the extent that any provision of this Agreement and/or any applicable
        Reconstitution Agreement expressly provides for the survival of certain rights
        or obligations following termination of the Company as servicer, such provision
        shall be given effect. 

       

      (iii) The
        Company shall promptly reimburse the Purchaser (or any designee of the
        Purchaser, such as a master servicer) and any Depositor, as applicable, for
        all
        reasonable expenses incurred by the Purchaser (or such designee) or such
        Depositor, as such are incurred, in connection with the termination of the
        Company as servicer and the transfer of servicing of the Mortgage Loans to
        a
        successor servicer. The provisions of this paragraph shall not limit whatever
        rights the Purchaser or any Depositor may have under other provisions of
        this
        Agreement and/or any applicable Reconstitution Agreement or otherwise, whether
        in equity or at law, such as an action for damages, specific performance
        or
        injunctive relief.

       

      (c) Notification
        and Cooperation.
        The parties hereto further agree, and any Indemnified Party not a party hereto
        is deemed to agree, as a condition to its reliance on such indemnification,
        that
        the Company’s indemnification obligations under this Section 7 are subject to
        the following terms and conditions:

      

      (i) An
        Indemnified Party seeking indemnification hereunder shall give written notice
        to
        the Company within a reasonable time after the Indemnified Party receives
        notice
        of an indemnifiable claim provided that failure to give such notice within
        a
        reasonable time shall not invalidate the Company’s obligations to indemnify such
        Indemnified Party except if, and then only to the extent that, such failure
        materially prejudices the Indemnifying Party or its ability to defend such
        claim, and the Indemnifying Party shall have the burden of proving such material
        prejudice;

      (ii) The
        Company shall undertake the defense of the action or claim with counsel or
        other
        representatives of its own choosing and reasonably acceptable to the Indemnified
        Party (which counsel shall not, except with the consent of the Indemnified
        Party, be counsel to the Indemnifying Party);

      (iii) The
        Indemnified Party shall have the right to participate and assist in, but
        not
        control, the defense of such claim and employ separate counsel in any action
        or
        claim, at the expense of the Indemnified Party (i.e., at its own expense),
        provided that if the interests of the Company and the Indemnified Party diverge,
        the Indemnified Party shall be entitled to separate counsel at the Company’s
        expense, provided
        such expense is reasonable;
        and

      (iv) The
        Company shall not settle or compromise any claim suit or action against the
        Indemnified Party without the express prior written consent of the Indemnified
        Party.

      

      (d) Exclusive
        Remedy.
        Except for remedies under the Agreement and remedies that cannot be waived
        as a
        matter of law and injunctive relief, the rights under this Section 7 shall
        be
        the exclusive remedy for breaches of this Section 7 (including any covenant,
        obligation, representation or warranty contained herein or
        therein).

      

      (e) Limitations. Notwithstanding
        anything in this Agreement to the contrary, in no event shall the Company
        be
        obligated under this Section 7 to indemnify an Indemnified Party otherwise
        entitled to indemnity hereunder in respect of any indemnifiable claims or
        losses
        to the extent that such claims or losses result directly from the willful
        misconduct, bad faith or negligent acts of the Indemnified Party.

      

      (f) The
        parties hereto agree that any written notice under this Section 7 may be
        made
        via email.

      

      Section
        8
Third
        Party Beneficiary.

       

      For
        purposes of this Article I and any related provisions thereto, each Master
        Servicer shall be considered a third-party beneficiary of this Agreement,
        entitled to all the rights and benefits hereof as if it were a direct party
        to
        this Agreement.

       

      IN
        WITNESS WHEREOF, the Seller and the Purchaser have caused this Amendment
        to be
        executed and delivered by their duly authorized officers as of the day and
        year
        first above written.

      

      
        	 	 	 
	 	
                NATIONAL
                  CITY MORTGAGE CO.

                (Seller)

              
	 
 	 
 	 
 
	 	 	By:__________________________
	 	Name: Kelly
                C.
                Johnson                        
                
	 	Title:
                Senior
                Vice
                President                   
                

      

       

      
        
          	 	 	 
	 	
                  
                    EMC
                      MORTGAGE CORPORATION

                    (Purchaser)

                  

                
	 
 	 
 	 
 
	 	 	By:
                  __________________________
	 	Name: ________________________
	 	Title:
                  _________________________

      

      EXHIBIT
        A

       

      FORM
        OF
        ANNUAL CERTIFICATION

       

      
        	
              	Re:	
                The
                  [       ]
                  agreement dated as of
                  [     ],
                  200[  ] (the “Agreement”), 

                              among
                  [IDENTIFY
                  PARTIES]

              

      

       

      I,
        ________________________________, the _______________________ of [NAME OF
        COMPANY] (the “Company”), certify to [the Purchaser], [the Depositor], and the
        [Master Servicer] [Securities Administrator] [Trustee], and their officers,
        with
        the knowledge and intent that they will rely upon this certification,
        that:

       

      (1) I
        have
        reviewed the servicer compliance statement of the Company 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 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 the Company
        during 200[ ] that were delivered by the Company to the [Depositor] [Master
        Servicer] [Securities Administrator] [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] [Master
        Servicer] [Securities Administrator] [Trustee];

       

      (4) I
        am
        responsible for reviewing the activities performed by the Company as servicer
        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
        Company has fulfilled its obligations under the Agreement; and

       

      (5) The
        Compliance Statement required to be delivered by the Company pursuant to
        this
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by the Company and by any Subservicer and Subcontractor “participating
        in the servicing function” pursuant to the Agreement, have been provided to the
        [Depositor] [Master Servicer]. Any material instances of noncompliance described
        in such reports have been disclosed to the [Depositor] [Master Servicer].
        Any
        material instance of noncompliance with the Servicing Criteria has been
        disclosed in such reports.

      
        	 	 	 
	 	
                 

              
	 
 	 
 	
                Date: _________________________

              
	 	 	By:
                 _________________________
	 	
              
	 	
                Name:
                   _________________________

                 

                Title:  _________________________

              

      

       

       

      EXHIBIT
        B

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      

      The
        assessment of compliance to be delivered by the Company [Name of Subservicer]
        shall address, at a minimum, the criteria identified as below as “Applicable
        Servicing Criteria”:

      

      
        	
                Servicing
                  Criteria 

              	
                Applicable
                  Servicing Criteria

              
	
                Reference

              	
                Criteria

              	
                 

              
	
                 

              	
                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

              
	
                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

              
	
                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the mortgage loans 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

              
	
                 

              	
                Cash
                  Collection and Administration

              	 
	
                1122(d)(2)(i)

              	
                Payments
                  on mortgage loans 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

              
	
                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

              
	
                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

              
	
                1122(d)(2)(iv)

              	
                The
                  related accounts for the transaction, such as cash reserve accounts
                  or
                  accounts established as a form of overcollateralization, are separately
                  maintained (e.g., with respect to commingling of cash) as set forth
                  in the
                  transaction agreements.

              	
                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

              
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized
                  access.

              	
                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 (A) are mathematically accurate;
                  (B) were
                  prepared within 30 calendar days after the bank statement cutoff
                  date, or
                  such other number of days specified in the transaction agreements;
                  (C)
                  were 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

              
	
                 

              	
                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 mortgage loans serviced by the
                  Servicer.

              	
                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

              
	
                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

              
	
                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

              
	
                 

              	
                Pool
                  Asset Administration

              	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on mortgage loans is maintained as required by the
                  transaction
                  agreements or related mortgage loan documents.

              	
                X

              
	
                1122(d)(4)(ii)

              	
                Mortgage
                  loan and related documents are safeguarded as required by the transaction
                  agreements

              	
                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 mortgage loans, including any payoffs, made in accordance with
                  the
                  related mortgage loan 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 mortgage loan documents.

              	
                X

              
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the mortgage loans 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 mortgage loans
                  (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 mortgage
                  loan 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 mortgage loans 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 mortgage loans with variable
                  rates are computed based on the related mortgage loan
                  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 mortgage loan
                  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 mortgage loan
                  documents and state laws; and (C) such funds are returned to the
                  obligor
                  within 30 calendar days of full repayment of the related mortgage
                  loans,
                  or such other number of days specified in the transaction
                  agreements.

              	
                X

              
	
                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

              
	
                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.

              	 
	
                 

              	
                 

              	
                 

              

      

      
 

      EXHIBIT
        C

      

      REPORTING
        DATA FOR MONTHLY REPORT

      

      
        	
                Standard
                  File Layout - Master Servicing

              
	
                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

              
	
                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
        D

      

      REPORTING
        DATA FOR DEFAULTED LOANS

       

      
        	
                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

              
	
                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 ($)

              

      

      
 

      
        	Exhibit 2: Standard
                File Codes - Delinquency
                Reporting

      

       

      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

              

      

      
        	
              	·	
                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

              

      

       

       

      
        	Exhibit 2: Standard
                File Codes - Delinquency Reporting, Continued

      

       

      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
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

      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
        E

      

      REPORTING
        DATA FOR REALIZED LOSSES AND GAINS

      

      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. 

      1.  

       

      2.  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
        Officer Certificate 

       

      *
        Unusual
        or extraordinary items may require further documentation. 

       

      
        	
              	13.	
                The
                  total of lines 1 through 12.

              

      

       

      3.  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      
     

       

      
        	 	
                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 ( ). 

              

      

      
        	
                 

                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           
  &#1
        60;        ________________ 
(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)

       

      Escrow
        Disbursement Detail

      

      

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of Coverage

              	
                Total
                  Paid

              	
                Base
                  Amount

              	
                Penalties

              	
                Interest

              
	
                 

                 

                 

              	
                 

                 

              	 	 	 	 	 
	
                 

                 

                 

              	 	 	 	 	 	 
	
                 

                 

                 

              	 	 	 	 	 	 
	
                 

                 

                 

              	 	 	 	 	 	 
	
                 

                 

                 

              	 	 	 	 	 	 
	
                 

                 

                 

              	 	 	 	 	 	 
	
                 

                 

                 

              	 	 	 	 	 	 
	
                 

                 

                 

              	 	 	 	 	 	 

      

       

       

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      I-3

    

    MID
      AMERICA SERVICING AGREEMENT

     

     

     

    EMC
      MORTGAGE CORPORATION 

    Purchaser,

    

    MID
      AMERICA
      BANK, FSB

    Company,

    

    PURCHASE,
      WARRANTIES AND SERVICING AGREEMENT

    Dated
      as
      of February 1, 2006

    

    

    
 

    (Fixed
      and Adjustable Rate Mortgage Loans)

     

    
 

    TABLE
      OF CONTENTS

    

    ARTICLE
      I

    

    

    
      	Section
              1.01	
              Defined
                Terms

            

    

    

    ARTICLE
      II

    

    
      	Section
              2.01	
              Agreement
                to Purchase

            

    

    
      	Section
              2.02	
              Purchase
                Price

            

    

    
      	Section
              2.03	
              Reserved

            

    

    
      	Section
              2.04	
              Record
                Title and Possession of Mortgage Files;

              Maintenance of Servicing
                Files

            

    

    
      	Section
              2.05	
              Books
                and Records

            

    

    
      	Section
              2.06	
              Transfer
                of Mortgage Loans

            

    

    
      	Section
              2.07	
              Delivery
                of Mortgage Loan Documents

            

    

    
      	Section
              2.08	
              Quality
                Control Procedures

            

    

    
      	Section
              2.09	
              Near-term
                Principal Prepayments; 

              Near
                Term Payment Defaults

            

    

    

    ARTICLE
      III

    

    
      
        	Section
                3.01	
                Representations
                  and Warranties of the Company

              

      

      
        
          	Section
                  3.02	
                  Representations
                    and Warranties as to 

                  Individual
                    Mortgage Loans

                

        

      

    

    
      
        
          
            
              	Section
                      3.03	
                      Repurchase;
                        Substitution

                    

            

          

        

      

    

    
      
        
          	
                  Section
                    3.04

                	
                  Representations
                    and Warranties of the
                    Purchaser

                

        

      

    

    

    ARTICLE
      IV

    

    
      	Section
              4.01	
              Company
                to Act as Servicer

            

    

    
      	Section
              4.02	
              Collection
                of Mortgage Loan Payments

            

    

    
      	Section
              4.03	
              Realization
                Upon Defaulted Mortgage

            

    

    
      	Section
              4.04	
              Establishment
                of Custodial Accounts; 

              Deposits in Custodial
                Accounts

            

    

    
      	Section
              4.05	
              Permitted
                Withdrawals from the 

              Custodial
                Account

            

    

    
      	Section
              4.06	
              Establishment
                of Escrow Accounts; 

              Deposits
                in Escrow Accounts

            

    

    
      	Section
              4.07	
              Permitted
                Withdrawals From Escrow Account

            

    

    
      	Section
              4.08	
              Payment
                of Taxes, Insurance and Other

              Charges; Maintenance of Primary
                Mortgage

              InsurancePolicies;
                Collections Thereunder 

            

    

    
      	Section 4.09	
              Transfer of
                Accounts

            

    

    
      	
              Section
                4.10

            	
              Maintenance
                of Hazard Insurance

            

    

    
      	Section
              4.11	
              Maintenance
                of Mortgage Impairment

              Insurance
                Policy

            

    

    
      	Section
              4.12	
              Fidelity
                Bond, Errors and Omissions

              Insurance

            

    

    
      	Section
              4.13	
              Title,
                Management and Disposition of REO
                Property

            

    

    
      	Section
              4.14	
              Notification
                of Maturity Date

            

    

    

    ARTICLE
      V

    

    
      	Section
              5.01	
              Distributions

            

    

    
      	Section
              5.02	
              Statements
                to the Purchaser

            

    

    
      	Section
              5.03	
              Monthly
                Advances by the Company

            

    

    
      	Section
              5.04	
              Liquidation
                Reports

            

    

    

    ARTICLE
      VI

    

    
      	Section
              6.01	
              Assumption
                Agreements

            

    

    
      	Section
              6.02	
              Satisfaction
                of Mortgages and Release

              of Mortgage
                Files

            

    

    
      	Section
              6.03	
              Servicing
                Compensation

            

    

    
      	Section
              6.04	
              Reserved

            

    

    
      	Section
              6.05	
              Reserved

            

    

    
      	Section
              6.06	
              Purchaser’s
                Right to Examine Company Records

            

    

    

    ARTICLE
      VII

    

    
      	Section
              7.01	
              Company
                Shall Provide Information as Reasonably 

              Required

            

    

    

    ARTICLE
      VIII

    

    
      	Section
              8.01	
              Indemnification;
                Third Party Claims

            

    

    
      	Section
              8.02	
              Merger
                or Consolidation of the Company

            

    

    
      	Section
              8.03	
              Limitation
                on Liability of the Company and
                Others

            

    

    
      	Section
              8.04	
              Company
                Not to Assign or Resign

            

    

    
      	Section
              8.05	
              No
                Transfer of Servicing

            

    

    ARTICLE
      IX

    

    
      	Section
              9.01	
              Events
                of Default

            

    

    
      	Section
              9.02	
              Waiver
                of Defaults

            

    

    

    ARTICLE
      X

    

    
      	Section
              10.01	
              Termination

            

    

    

    ARTICLE
      XI

    

    
      	Section
              11.01	
              Successor
                to the Company

            

    

    
      	Section
              11.02	
              Amendment

            

    

    
      	Section
              11.03	
              Reserved

            

    

    
      	Section
              11.04	
              Governing
                Law

            

    

    
      	Section
              11.05	
              Notices

            

    

    
      	Section
              11.06	
              Severability
                of Provisions

            

    

    
      	Section
              11.07	
              Exhibits

            

    

    
      	Section
              11.08	
              General
                Interpretive Principles

            

    

    
      	Section
              11.09	
              Reproduction
                of Documents

            

    

    
      	Section
              11.10	
              Confidentiality
                of Information

            

    

    
      	Section
              11.11	
              Recordation
                of Assignment of Mortgage

            

    

    
      	Section
              11.12	
              Assignment

            

    

    
      	Section
              11.13	
              No
                Partnership

            

    

    
      	Section
              11.14	
              Signature
                Pages/Counterparts; Successors and
                Assigns

            

    

    
      	Section
              11.15	
              Entire
                Agreement

            

    

    
      	Section
              11.16	
              No
                Solicitation

            

    

    
      	Section
              11.17	
              Closing

            

    

    
      	Section
              11.18	
              Reserved

            

    

    
      	Section
              11.19	
              Monthly
                Reporting with Respect to a
                Reconstitution

            

    

    

    EXHIBITS

    
      	
            	A	
              Contents
                of Mortgage File

            

    

    
      	
            	B	
              Custodial
                Account Letter Agreement

            

    

    
      	
            	C	
              Escrow
                Account Letter Agreement

            

    

    
      	
            	D	
              Form
                of Purchase, Assignment, Assumption and Recognition
                Agreement

            

    

    
      	
            	E	
              Form
                of Trial Balance

            

    

    
      	
            	F	
              [Reserved]

            

    

    
      	
            	G	
              Request
                for Release of Documents and
                Receipt

            

    

    
      	
            	H	
              Company’s
                Underwriting Guidelines

            

    

    
      	
            	I	
              Term
                Sheet

            

    

    
      	
            	J	
              Reconstituted
                Mortgage Loan Reporting

            

    

     

    This
      is a
      Purchase, Warranties and Servicing Agreement, dated as of February 1, 2006
      and
      is executed between EMC MORTGAGE CORPORATION, as Purchaser, with offices located
      at Mac
      Arthur Ridge II, 909 Hidden Ridge Drive, Suite 200, Irving, Texas
      75038,
      and
Mid
      America Bank, fsb, with offices located at 2650 Warrenville Road, Suite 500,
      Downers Grove, Illinois 60515.

    

    

    W I T N E&#160
      ;S S E T H
      :

    

    WHEREAS,
      the Purchaser has heretofore agreed to purchase from the Company and the Company
      has heretofore agreed to sell to the Purchaser, from time to time, certain
      Mortgage Loans on
      a
      servicing retained basis;
      

    

    WHEREAS,
      each of the Mortgage Loans is secured by a mortgage, deed of trust or other
      security instrument creating a first lien on a residential dwelling located
      in
      the jurisdiction indicated on the Mortgage Loan Schedule, which is annexed
      to
      the related Term Sheet; and

    

    WHEREAS,
      the Purchaser and the Company wish to prescribe the representations and
      warranties of the Company with respect to itself and the Mortgage Loans and
      the
      management, servicing and control of the Mortgage Loans;

    

    NOW,
      THEREFORE, in consideration of the mutual agreements hereinafter set forth,
      and
      for other good and valuable consideration, the receipt and adequacy of which
      is
      hereby acknowledged, the Purchaser and the Company agree as
      follows:

    

     

    ARTICLE
      I

    

    DEFINITIONS

    

    Section
      1.01 Defined
      Terms.

    

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

    

    Accepted
      Servicing Practices:
      With
      respect to any Mortgage Loan, those mortgage servicing practices (including
      collection procedures) of prudent mortgage banking institutions which service
      mortgage loans of the same type as such Mortgage Loan in the jurisdiction where
      the related Mortgaged Property is located, and which are in accordance with
      Fannie Mae servicing practices and procedures, for MBS pool mortgages, as
      defined in the Fannie Mae Guides including future updates. 

    

    Adjustment
      Date:
      With
      respect to each adjustable rate Mortgage Loan, the date on which the Mortgage
      Interest Rate is adjusted in accordance with the terms of the related Mortgage
      Note.

    

    Agreement:
      This
      Purchase, Warranties and Servicing Agreement including all exhibits hereto,
      amendments hereof and supplements hereto.

    

    Appraised
      Value:
      With
      respect to any Mortgaged Property, the value thereof as determined by an
      appraisal made for the originator of the Mortgage Loan at the Origination Date
      of the Mortgage Loan by a Qualified Appraiser. 

    

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

     

    BIF:
      The
      Bank Insurance Fund, or any successor thereto.

    

    Business
      Day:
      Any day
      other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the State
      of
      New York or State of Illinois, or (iii) a day on which banks in the State of
      New
      York or State of Illinois are authorized or obligated by law or executive order
      to be closed.

    

    Closing
      Date:
      With
      respect to any Mortgage Loan, the date stated on the related Term Sheet.

     

    Code: The
      Internal Revenue Code of 1986, or any successor statute thereto.

    

    Company:
       Mid
      America Bank, fsb, its successors in interest and assigns, as permitted by
      this
      Agreement.

    

    Company's
      Officer's Certificate:
      A
      certificate signed by the Chairman of the Board, President, any Vice President,
      Secretary or Treasurer of the Company stating the date by which the Company
      expects to receive any missing documents sent for recording from the applicable
      recording office.

    

    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, to the extent not required to be released to a Mortgagor in
      accordance with the terms of the related Mortgage Loan Documents.

    

    Confirmation:
      The
      trade confirmation letter between the Purchaser and the Company which relates
      to
      the Mortgage Loans.

    

    Consumer
      Information:
      Information including, but not limited to, all personal information about
      Mortgagors that is supplied to the Purchaser by or on behalf of the
      Company.

    

    Co-op
      Lease:
      With
      respect to a Co-op Loan, the lease with respect to a dwelling unit occupied
      by
      the Mortgagor and relating to the stock allocated to the related dwelling
      unit.

    

    Co-op
      Loan:
      A
      Mortgage Loan secured by the pledge of stock allocated to a dwelling unit in
      a
      residential cooperative housing corporation and a collateral assignment of
      the
      related Co-op Lease.

    

    Current
      Appraised Value: With
      respect to any Mortgaged Property, the value thereof as determined by an
      appraisal made for the Company (by a Qualified Appraiser) at the request of
      a
      Mortgagor for the purpose of canceling a Primary Mortgage Insurance Policy
      in
      accordance with federal, state and local laws and regulations or otherwise
      made
      at the request of the Company or Mortgagor.

    

    Current
      LTV: The
      ratio
      of the Stated Principal Balance of a Mortgage Loan to the Current Appraised
      Value of the Mortgaged Property.

    

    Custodial
      Account:
      Each
      separate demand account or accounts created and maintained pursuant to Section
      4.04 which shall be entitled "Mid America Bank, fsb, in trust for the
      [Purchaser], Owner of Mortgage Loans" and shall be established in an Eligible
      Account, in the name of the Person that is the "Purchaser" with respect to
      the
      related Mortgage Loans.

     

    Custodian:
      With
      respect to any Mortgage Loan, the entity stated on the related Term Sheet,
      and
      its successors and assigns, as custodian for the Purchaser.

    

    Cut-off
      Date:
      With
      respect to any Mortgage Loan, the date stated on the related Term Sheet.

    

    Determination
      Date:
      The
      15th day (or if such 15th day is not a Business Day, the Business Day
      immediately preceding such 15th day) of the month of the related Remittance
      Date.

    

    Due
      Date:
      With
      respect to each Mortgage Loan, the day of the month on which the Monthly Payment
      is due on a Mortgage Loan, exclusive of any days of grace, which is the first
      day of the month.

    

    Due
      Period:
      With
      respect to any Remittance Date, the period commencing on the second day of
      the
      month preceding the month of such Remittance Date and ending on the first day
      of
      the month of the Remittance Date.

    

    Electronic
      Transmission:
      As
      defined in Section 11.14.

    

    Eligible
      Account:
      An
      account established and maintained: (i) within FDIC insured accounts created,
      maintained and monitored by the Company so that all funds deposited therein
      are
      fully insured, or (ii) as a trust account with the corporate trust department
      of
      a depository institution or trust company organized under the laws of the United
      States of America or any one of the states thereof or the District of Columbia
      which is not affiliated with the Company (or any sub-servicer) or (iii) with
      an
      entity which is an institution whose deposits are insured by the FDIC, the
      unsecured and uncollateralized long-term debt obligations of which shall be
      rated “A2” or higher by Standard & Poor’s and “A” or higher by Fitch, Inc.
      or one of the two highest short-term ratings by any applicable Rating Agency,
      and which is either (a) a federal savings association duly organized, validly
      existing and in good standing under the federal banking laws, (b) an institution
      duly organized, validly existing and in good standing under the applicable
      banking laws of any state, (c) a national banking association under the federal
      banking laws, or (d) a principal subsidiary of a bank holding company, or (iv)
      if ownership of the Mortgage Loans is evidenced by mortgaged-backed securities,
      the equivalent required ratings of each Rating Agency, and held such that the
      rights of the Purchaser and the owner of the Mortgage Loans shall be fully
      protected against the claims of any creditors of the Company (or any
      sub-servicer) and of any creditors or depositors of the institution in which
      such account is maintained or (v) in a separate non-trust account without FDIC
      or other insurance in an Eligible Institution. In the event that a Custodial
      Account is established pursuant to clause (iii), (iv) or (v) of the preceding
      sentence, the Company shall provide the Purchaser with written notice on the
      Business Day following the date on which the applicable institution fails to
      meet the applicable ratings requirements.

    

    Eligible
      Institution:
      An
      institution having (i) the highest short-term debt rating, and one of the two
      highest long-term debt ratings of each Rating Agency; or (ii) with respect
      to
      any Custodial Account, an unsecured long-term debt rating of at least one of
      the
      two highest unsecured long-term debt ratings of each Rating Agency.

    

    Equity
      Take-Out Refinanced Mortgage Loan:
      A
      Refinanced Mortgage Loan the proceeds of which were in excess of the outstanding
      principal balance of the existing mortgage loan as defined in the Fannie Mae
      Guide(s). 

    

    Escrow
      Account:
      Each
      separate trust account or accounts created and maintained pursuant to Section
      4.06 which shall be entitled "Mid America Bank, fsb, in trust for the
      [Purchaser], Owner of Mortgage Loans, and various Mortgagors", in the name
      of
      the Person that is the "Purchaser" with respect to the related Mortgage
      Loans.

    

    Escrow
      Payments:
      With
      respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
      assessments, water rates, sewer rents, municipal charges, mortgage insurance
      premiums, fire and hazard insurance premiums, condominium charges, and any
      other
      payments required to be escrowed by the Mortgagor with the mortgagee pursuant
      to
      the Mortgage or any other related document.

    

    Event
      of Default:
      Any one
      of the conditions or circumstances enumerated in Section 9.01.

    

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

    

    Fannie
      Mae Guide(s):
      The
      Fannie Mae Selling Guide and the Fannie Mae Servicing Guide and all amendments
      or additions thereto.

    

    FDIC:
      The
      Federal Deposit Insurance Corporation, or any successor thereto.

    

    FHLMC:
      The
      Federal Home Loan Mortgage Corporation, or any successor thereto.

    

    FHLMC
      Guide:
      The
      FHLMC Single Family Seller/Servicer Guide and all amendments or additions
      thereto.

    

    Fidelity
      Bond:
      A
      fidelity bond to be maintained by the Company pursuant to Section
      4.12.

    

    FIRREA:
      The
      Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as
      amended, from time to time, and in effect.

    

    First
      Remittance Date:
      With
      respect to any Mortgage Loan, the Remittance Date occurring in the month
      following the month in which the related Closing Date occurs.

    

    GAAP:
      Generally accepted accounting principles in the United States of America,
      consistently applied.

    

    HUD:
      The
      United States Department of Housing and Urban Development, or any successor
      thereto.

    

    Index:
      With
      respect to any adjustable rate Mortgage Loan, the index identified on the
      Mortgage Loan Schedule and set forth in the related Mortgage Note for the
      purpose of calculating the interest rate thereon.

    

    Initial
      Rate Cap: With
      respect to
      each
      adjustable rate Mortgage Loan, where applicable, the maximum increase or
      decrease in the Mortgage Interest Rate on the first Adjustment
      Date.

    

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

    

    Lender
      Paid Mortgage Insurance Rate:
      A rate
      per annum equal to the percentage shown on the Mortgage Loan
      Schedule.

    

    Lender
      Primary Mortgage Insurance Policy:
      Any
      Primary Mortgage Insurance Policy for which premiums are paid by the Company.
      

    

    Lifetime
      Rate Cap:
      With
      respect to each adjustable rate Mortgage Loan, the maximum Mortgage Interest
      Rate over the term of such Mortgage Loan. 

    

    Liquidation
      Proceeds:
      The
      proceeds received in connection with the liquidation of a defaulted Mortgage
      Loan, whether through the sale or assignment of such Mortgage Loan, trustee's
      sale, foreclosure sale or otherwise.

    

    Loan-to-Value
      Ratio or LTV:
      With
      respect to any Mortgage Loan, the ratio of the original outstanding principal
      amount of the Mortgage Loan, to (i) the Appraised Value of the Mortgaged
      Property with respect to a Refinanced Mortgage Loan, and (ii) the lesser of
      the
      Appraised Value of the Mortgaged Property or the Sales Price of the Mortgaged
      Property with respect to all other Mortgage Loans.

    

    Margin:
      With
      respect to each adjustable rate Mortgage Loan, the fixed percentage amount
      set
      forth in each related Mortgage Note which is added to the Index in order to
      determine the related Mortgage Interest Rate, as set forth in the Mortgage
      Loan
      Schedule.

    

    Monthly
      Advance:
      The
      aggregate of the advances made by the Company on any Remittance Date pursuant
      to
      Section 5.03.

    

    Monthly
      Payment:
      The
      scheduled monthly payment of principal and interest on a Mortgage Loan which
      is
      payable by a Mortgagor under the related Mortgage Note.

    

    Mortgage:
      With
      respect to each Mortgage Loan, the mortgage, deed of trust or other instrument
      securing a Mortgage Note which creates a first lien or first priority ownership
      in an estate in fee simple in real property on the Mortgaged
      Property.

    

    Mortgage
      File:
      The
      Mortgage Loan Documents pertaining to a particular Mortgage Loan, and any
      additional documents required to be added to the Mortgage File pursuant to
      this
      Agreement.

    

    Mortgage
      Impairment Insurance Policy:
      A
      mortgage impairment or blanket hazard insurance policy as described in Section
      4.11.

    

    Mortgage
      Interest Rate:
      The
      annual rate at which interest accrues on any Mortgage Loan, which may be
      adjusted from time to time for an adjustable rate Mortgage Loan, in accordance
      with the provisions of the related Mortgage Note.

    

    Mortgage
      Loan:
      Each
      mortgage loan originally sold to the Purchaser and subject to this Agreement
      being identified on the Mortgage Loan Schedule attached to the related Term
      Sheet, which Mortgage Loan includes without limitation the Mortgage File, the
      Monthly Payments, Principal Prepayments, Liquidation Proceeds, Condemnation
      Proceeds, Insurance Proceeds, REO Disposition Proceeds, 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 Documents:
      The
      documents listed in Exhibit
      A
      hereto
      pertaining to any Mortgage Loan.

    

    Mortgage
      Loan Remittance Rate:
      With
      respect to each Mortgage Loan, the annual rate of interest remitted to the
      Purchaser, which shall be equal to the Mortgage Interest Rate minus the
      Servicing Fee Rate minus the Lender Paid Mortgage Insurance Rate.

    

    Mortgage
      Loan Schedule:
      The
      schedule of Mortgage Loans annexed to the related Term Sheet, such schedule
      setting forth the following information with respect to each Mortgage Loan
      sold
      pursuant to such Term Sheet:

    

    
      (1)the
        Company's Mortgage Loan identifying number;

    

    

    
      (2)the
        Mortgagor's first and last name;

    

    

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

    

    

    
      (4)a
        code
        indicating whether the Mortgaged Property is owner-occupied, a second home
        or an
        investor property;

    

    

    
      (5)the
        type
        of residential property constituting the Mortgaged Property;

    

    

    
      (6)the
        original months to maturity of the Mortgage Loan;

    

    

    
      (7)the
        remaining months to maturity from the related Cut-off Date, based on the
        original amortization schedule and, if different, the maturity expressed
        in the
        same manner but based on the actual amortization schedule;

    

    

    
      (8)the
        Sales
        Price, if applicable, Appraised Value and Loan-to-Value
        Ratio;

    

    

    (9) the
      Mortgage Interest Rate as of origination and as of the related Cut-off Date;
      with respect to each adjustable rate Mortgage Loan, the initial Adjustment
      Date,
      the next Adjustment Date immediately following the related Cut-off Date, the
      Index, the Margin, the Initial Rate Cap, if any, Periodic Rate Cap, if any,
      minimum Mortgage Interest Rate under the terms of the Mortgage Note and the
      Lifetime Rate Cap;

    

    (10) the
      Origination Date of the Mortgage Loan;

    

    (11) the
      stated maturity date;

    

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

    

    (13) the
      amount of the Monthly Payment as of the related Cut-off Date;

    

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

    

    (15) the
      scheduled Stated Principal Balance of the Mortgage Loan as of the close of
      business on the related Cut-off Date, after deduction of payments of principal
      due on or before the related Cut-off Date whether or not collected;

    

    (16)
      a
      code
      indicating the purpose of the Mortgage Loan (i.e., purchase, rate and term
      refinance, Equity Take-Out Refinanced Mortgage Loan); 

    

    (17)
      a
      code
      indicating the documentation style (i.e. full, alternative, etc.); 

    

    (18) the
      number of times during the twelve (12) month period preceding the related
      Closing Date that any Monthly Payment has been received after the month of
      its
      scheduled Due Date;

    

    (19) the
      date
      on which the first payment is or was due; 

    

    (20)
      a
      code
      indicating whether or not the Mortgage Loan is the subject of a Primary Mortgage
      Insurance Policy and the name of the related insurance carrier; 

    

    (21)
      a
      code
      indicating whether or not the Mortgage Loan is currently convertible and the
      conversion spread; 

    

    (22)
      the
      last
      Due Date on which a Monthly Payment was actually applied to the unpaid principal
      balance of the Mortgage Loan.

    

    (23)
      product
      type (i.e. fixed, adjustable, 3/1, 5/1, etc.); 

    

    (24)
      credit
      score, if applicable;

    

    (25) a
      code
      indicating whether or not the Mortgage Loan is the subject of a Lender Primary
      Mortgage Insurance Policy and the name of the related insurance carrier and
      the
      Lender Paid Mortgage Insurance Rate; 

    

    (26)
      a
      code
      indicating whether or not the Mortgage Loan has a prepayment penalty and if
      so,
      the amount and term thereof;

    

    (27)
      the
      Current Appraised Value of the Mortgage Loan and Current LTV, if
      applicable;

    

    (28)
      whether
      such Mortgage Loan is a “Home Loan”, “Covered Home Loan”, “Manufactured Housing”
or “Home Improvement Loan” as defined in the
      New Jersey Home Ownership Security Act of 2002;

    

    (29)
      whether
      the Mortgage Loan has
      a mandatory arbitration clause;
      and

    

    (30)
      whether
      the Mortgage Loan is “interest-only”
      “negative amortization”.

    

    With
      respect to the Mortgage Loans in the aggregate, the Mortgage Loan Schedule
      attached to the related Term Sheet shall set forth the following information,
      as
      of the related Cut-off Date:

    

    (1) the
      number of Mortgage Loans;

    

    (2) the
      current aggregate outstanding principal balance of the Mortgage
      Loans;

    

    (3) the
      weighted average Mortgage Interest Rate of the Mortgage Loans; 

    

    (4) the
      weighted average maturity of the Mortgage Loans; and

    

    (5)
       the
      weighted average months to next Adjustment Date;

     

    Mortgage
      Note:
      The
      original executed note or other evidence of the indebtedness of a Mortgagor
      secured by a Mortgage.

    

    Mortgaged
      Property:
      With
      respect to each Mortgage Loan, the underlying real property securing repayment
      of the related Mortgage Note, consisting of a single parcel of real estate
      considered to be real estate under the laws of the state in which such real
      property is located which may include condominium units and planned unit
      developments, improved by a residential dwelling; except that with respect
      to
      real property located in jurisdictions in which the use of leasehold estates
      for
      residential properties is a widely-accepted practice, a leasehold estate of
      the
      Mortgage, the term of which is equal to or longer than the term of the Mortgage.
      

    

    Mortgagor:
      With
      respect to each Mortgage Loan, the obligor on the related Mortgage Note.

     

    Nonrecoverable
      Advance:
      Any
      portion of a Monthly Advance or Servicing Advance previously made or proposed
      to
      be made by the Company pursuant to this Agreement, that, in the good faith
      judgment of the Company, will not or, in the case of a proposed advance, would
      not, be ultimately recoverable by it from the related Mortgagor or the related
      Liquidation Proceeds, Insurance Proceeds, Condemnation Proceeds or otherwise
      with respect to the related Mortgage Loan.

    

    Officers'
      Certificate:
      A
      certificate signed by the Chairman of the Board, the Vice Chairman of the Board,
      the President, a Senior Vice President or a Vice President or by the Treasurer
      or the Secretary or one of the Assistant Treasurers or Assistant Secretaries
      of
      the Company, and delivered to the Purchaser as required by this
      Agreement.

    

    Opinion
      of Counsel:
      A
      written opinion of counsel, who may be an employee of the party on behalf of
      whom the opinion is being given, reasonably acceptable to the
      Purchaser.

    

    Origination
      Date:
      The
      date on which a Mortgage Loan funded, which date shall not, in connection with
      a
      Refinanced Mortgage Loan, be the date of the funding of the debt being
      refinanced, but rather the closing of the debt currently outstanding under
      the
      terms of the Mortgage Loan Documents. 

    

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

    

    Pass-Through
      Transfer:
      Any
      transaction involving either (1) a sale or other transfer of some or all of
      the
      Mortgage Loans directly or indirectly to an issuing entity in connection with
      an
      issuance of publicly offered or privately placed, rated or unrated
      mortgage-backed securities or (2) an issuance of publicly offered or privately
      placed, rated or unrated securities, the payments on which are determined
      primarily by reference to one or more portfolios of residential mortgage loans
      consisting, in whole or in part, of some or all of the Mortgage
      Loans.

    

    Periodic
      Rate Cap:
      With
      respect to each adjustable rate Mortgage Loan, the maximum increase or decrease
      in the Mortgage Interest Rate on any Adjustment Date, as set forth in the
      related Mortgage Note and the related Mortgage Loan Schedule.

    

    Permitted
      Investments:
      Any one
      or more of the following obligations or securities:

    

    (i) direct
      obligations of, and obligations fully guaranteed by the United States of America
      or any agency or instrumentality of the United States of America the obligations
      of which are backed by the full faith and credit of the United States of
      America; 

    

    
      	 	
              (ii)
                (a) demand or time deposits, federal funds or bankers' acceptances
                issued
                by any depository institu-tion or trust company incorporated under
                the
                laws of the United States of America or any state thereof and subject
                to
                supervision and examination by federal and/or state banking authorities,
                provided that the commercial paper and/or the short-term deposit
                rating
                and/or the long-term unsecured debt obligations or deposits of such
                depository institution or trust company at the time of such investment
                or
                contractual commitment providing for such investment are rated in
                one of
                the two highest rating categories by each Rating Agency and (b) any
                other
                demand or time deposit or certificate of deposit that is fully insured
                by
                the FDIC;

            

    

    

    
      	 	
              (iii)
                repurchase obligations with a term not to exceed thirty (30) days
                and with
                respect to (a) any security described in clause (i) above and entered
                into
                with a depository institution or trust company (acting as principal)
                described in clause (ii)(a) above;

            

    

    

    
      	 	
              (iv)
                securities bearing interest or sold at a discount issued by any
                corporation incorporated under the laws of the United States of America
                or
                any state thereof that are rated in one of the two highest rating
                categories by each Rating Agency at the time of such in-vestment
                or
                contractual commitment providing for such investment; provided,
                however,
                that securities issued by any particular corporation will not be
                Permitted
                Investments to the extent that investments therein will cause the
                then
                outstanding principal amount of secur-ities issued by such corporation
                and
                held as Permitted Investments to exceed 10% of the aggregate outstand-ing
                principal balances of all of the Mortgage Loans and Permitted
                Investments;

            

    

    

    
      	 	
              (v)
                commercial paper (including both non-interest-bearing discount obligations
                and interest-bearing obliga-tions payable on demand or on a specified
                date
                not more than one year after the date of issuance there-of) which
                are
                rated in one of the two highest rating categories by each Rating
                Agency at
                the time of such investment;

            

    

    

    
      	 	
              (vi)
                any other demand, money market or time deposit, obligation, security
                or
                investment as may be acceptable to each Rating Agency as evidenced
                in
                writing by each Rating Agency; and

            

    

    

    
      	 	
              (vii)
                any money market funds the collateral of which consists of obligations
                fully guaranteed by the United States of America or any agency or
                instru-ment-al-ity of the United States of America the obligations
                of
                which are backed by the full faith and credit of the United States
                of
                America (which may include repurchase obligations secured by collateral
                described in clause (i)) and other securities and which money market
                funds
                are rated in one of the two highest rating categories by each Rating
                Agency;

            

    

    

    provided,
      however,
      that no
      instrument or security shall be a Permitted Investment if such instrument or
      security evidences a right to receive only interest payments with respect to
      the
      ob-li-ga-tions underlying such instrument or if such security provides for
      payment of both principal and interest with a yield to matur-ity in excess
      of
      120% of the yield to maturity at par or if such investment or security is
      purchased at a price greater than par.

    

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

    

    Prepayment
      Interest Shortfall:
      With
      respect to any Remittance Date, for each Mortgage Loan that was the subject
      of a
      Principal Prepayment during the related Prepayment Period, an amount equal
      to
      the excess of one month’s interest at the applicable Mortgage Loan Remittance
      Rate on the amount of such Principal Prepayment over the amount of interest
      (adjusted to the Mortgage Loan Remittance Rate) actually paid by the related
      Mortgagor with respect to such Prepayment Period.

    

    Prepayment
      Period: With
      respect to any Remittance Date, the calendar month preceding the month in which
      such Remittance Date occurs.

    

    Primary
      Mortgage Insurance Policy:
      Each
      primary policy of mortgage insurance represented to be in effect pursuant to
      Section 3.02(hh), or any replacement policy therefor obtained by the Company
      pursuant to Section 4.08.

    

    Prime
      Rate:
      The
      prime rate announced to be in effect from time to time as published as the
      average rate in the Wall Street Journal (Northeast Edition).

    

    Principal
      Prepayment:
      Any
      payment or other recovery of principal on a Mortgage Loan full or partial which
      is received in advance of its scheduled Due Date, including any prepayment
      penalty or premium thereon and which 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. 

     

    Purchase
      Price:
      As
      defined in Section 2.02.

    

    Purchaser:
      EMC
      Mortgage Corporation, its successors in interest and assigns.

    

    Qualified
      Appraiser:
      An
      appraiser, duly appointed by the Company, who had no interest, direct or
      indirect in the related Mortgaged Property or in any loan made on the security
      thereof, and whose compensation is not affected by the approval or disapproval
      of the Mortgage Loan, and such appraiser and the appraisal made by such
      appraiser both satisfy the requirements of Title XI of FIRREA and the
      regulations promulgated thereunder, all as in effect on the date the Mortgage
      Loan was originated.

    

    Qualified
      Insurer:
      A
      mortgage insurance company duly authorized and licensed as such under the laws
      of the states in which the related Mortgaged Property is located and approved
      as
      an insurer by Fannie Mae or FHLMC. 

    

    Rating
      Agency:
      Standard & Poor's, Fitch, Inc. or, in the event that some or all of the
      ownership of the Mortgage Loans is evidenced by mortgage-backed securities,
      the
      nationally recognized rating agencies issuing ratings with respect to such
      securities, if any.

     

    Reconstituted
      Mortgage Loans:
      As
      defined in Section 11.19. 

    

    Reconstitution:
      As
      defined in Section 11.18. 

    

    Reconstitution
      Agreement:
      As
      defined in Section 11.18. 

    

    Reconstitution
      Date:
      As
      defined in Section 11.18. 

    

    Refinanced
      Mortgage Loan:
      A
      Mortgage Loan which was made to a Mortgagor who owned the Mortgaged Property
      prior to the origination of such Mortgage Loan and the proceeds of which were
      used in whole or part to satisfy an existing mortgage.

    

    REMIC:
      A "real
      estate mortgage investment conduit," as such term is defined in Section 860D
      of
      the Code.

    

    REMIC
      Provisions:
      The
      provisions of the federal income tax law relating to REMICs, which appear at
      Sections 860A through 860G of the Code, and the related provisions and
      regulations promulgated thereunder, as the foregoing may be in effect from
      time
      to time.

    

    Remittance
      Date:
      The
      18th day of any month, beginning with the First Remittance Date, or if such
      18th
      day is not a Business Day, the first Business Day immediately preceding such
      18th day.

    

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

    

    REO
      Disposition Proceeds:
      Amounts
      received by the Company in connection with a related REO
      Disposition.

    

    REO
      Property:
      A
      Mortgaged Property acquired by the Company on behalf of the Purchaser as
      described in Section 4.13.

    

    Repurchase
      Price:
      With
      respect to any Mortgage Loan, a price equal to (i) the product of the greater
      of
      (x) 100% or (y) the percentage of par as stated in the related Term Sheet;
      multiplied by the Stated Principal Balance of such Mortgage Loan on the
      repurchase date, plus (ii) interest on such Stated Principal Balance at the
      Mortgage Loan Remittance Rate from the last date through which interest has
      been
      paid and distributed to the Purchaser to the end of the month of repurchase,
      plus, (iii) reasonable and necessary third party expenses incurred in connection
      with the transfer of the Mortgage Loan being repurchased; less amounts received
      or advanced in respect of such repurchased Mortgage Loan which are being held
      in
      the Custodial Account for distribution in the month of repurchase.

    

    SAIF:
      The
      Savings Association Insurance Fund, or any successor thereto.

    

    Sales
      Price: With
      respect to any Mortgage Loan the proceeds of which were used by the Mortgagor
      to
      acquire the related Mortgaged Property, the amount paid by the related Mortgagor
      for such Mortgaged Property.

    

    Servicing
      Advances:
      All
      customary, reasonable and necessary "out of pocket" costs and expenses
      (including reasonable attorneys' fees and disbursements) incurred in the
      performance by the Company of its servicing obligations, including, but not
      limited to, the cost of (a) the preservation, restoration and protection of
      the
      Mortgaged Property, (b) any enforcement, administrative or judicial proceedings,
      or any legal work or advice specifically related to servicing the Mortgage
      Loans, including but not limited to, foreclosures, bankruptcies, condemnations,
      drug seizures, elections, foreclosures by subordinate or superior lienholders,
      and other legal actions incidental to the servicing of the Mortgage Loans
      (provided that such expenses are reasonable and that the Company specifies
      the
      Mortgage Loan(s) to which such expenses relate and, upon the Purchaser’s
      request, provides documentation supporting such expense (which documentation
      would be acceptable to Fannie Mae), and provided further that any such
      enforcement, administrative or judicial proceeding does not arise out of a
      breach of any representation, warranty or covenant of the Company hereunder),
      (c) the management and liquidation of the Mortgaged Property if the Mortgaged
      Property is acquired in full or partial satisfaction of the Mortgage, (d) taxes,
      assessments, water rates, sewer rates and other charges which are or may become
      a lien upon the Mortgaged Property, and Primary Mortgage Insurance Policy
      premiums and fire and hazard insurance coverage, (e) any expenses reasonably
      sustained by the Company with respect to the liquidation of the Mortgaged
      Property in accordance with the terms of this Agreement and (f) compliance
      with
      the obligations under Section 4.08.

    

    Servicing
      Fee:
      With
      respect to each Mortgage Loan, the amount of the annual fee the Purchaser shall
      pay to the Company, which shall, for a period of one full month, be equal to
      one-twelfth of the product of (a) the Servicing Fee Rate and (b) the unpaid
      principal balance of such Mortgage Loan. Such fee shall be payable monthly,
      computed on the basis of the same principal amount and period respecting which
      any related interest payment on a Mortgage Loan is computed. The obligation
      of
      the Purchaser to pay the Servicing Fee is limited to, and the Servicing Fee
      is
      payable solely from, the interest portion of such Monthly Payment collected
      by
      the Company, or as otherwise provided under Section 4.05(iii) and in accordance
      with the Fannie Mae Guide(s). Any fee payable to the Company for administrative
      services related to any REO Property as described in Section 4.13 shall be
      payable from Liquidation Proceeds of the related REO Property.

    

    Servicing
      Fee Rate:
      As set
      forth in the Term Sheet.

    

    Servicing
      File:
      With
      respect to each Mortgage Loan, the file retained by the Company consisting
      of
      originals of all documents in the Mortgage File which are not delivered to
      the
      Purchaser and copies of the Mortgage Loan Documents listed in Exhibit
      A,
      the
      originals of which are delivered to the Purchaser or its designee pursuant
      to
      Section 2.04.

    

    Servicing
      Officer:
      Any
      officer of the Company involved in, or responsible for, the administration
      and
      servicing of the Mortgage Loans whose name appears on a list of servicing
      officers furnished by the Company to the Purchaser upon request, as such list
      may from time to time be amended.

    

    Stated
      Principal Balance:
      As to
      each Mortgage Loan as of any date of determination, (i) the principal balance
      of
      such 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 distributed to the Purchaser with respect to the Mortgage
      Loan representing payments or recoveries of principal or advances in lieu
      thereof.

    

    Subservicer:
      Any
      subservicer which is subservicing the Mortgage Loans pursuant to a Subservicing
      Agreement. Any subservicer shall meet the qualifications set forth in Section
      4.01.

    

    Subservicing
      Agreement:
      An
      agreement between the Company and a Subservicer, if any, for the servicing
      of
      the Mortgage Loans.

    

    Term
      Sheet:
      A
      supplemental agreement in the form attached hereto as Exhibit
      I
      which
      shall be executed and delivered by the Company and the Purchaser to provide
      for
      the sale and servicing pursuant to the terms of this Agreement of the Mortgage
      Loans listed on Schedule I attached thereto, which supplemental agreement shall
      contain certain specific information relating to such sale of such Mortgage
      Loans and may contain additional covenants relating to such sale of such
      Mortgage Loans.

    

    Whole
      Loan Transfer:
      As
      defined in Section 11.18.

     

     

    ARTICLE
      II

    

    PURCHASE
      OF MORTGAGE LOANS; SERVICING OF MORTGAGE LOANS;

    RECORD
      TITLE AND POSSESSION OF MORTGAGE FILES;

    BOOKS
      AND RECORDS; CUSTODIAL AGREEMENT;

    DELIVERY
      OF MORTGAGE LOAN DOCUMENTS

    

    Section
      2.01 Agreement
      to Purchase.

    

    From
      time
      to time, the Company agrees to sell and the Purchaser agrees to purchase the
      Mortgage Loans having an aggregate Stated Principal Balance on the related
      Cut-off Date set forth in the related Term Sheet in an amount as set forth
      in
      the Confirmation, or in such other amount as agreed by the Purchaser and the
      Company as evidenced by the actual aggregate Stated Principal Balance of the
      Mortgage Loans accepted by the Purchaser on the related Closing Date, with
      servicing retained by the Company. The Company shall deliver the related
      Mortgage Loan Schedule attached to the related Term Sheet for the Mortgage
      Loans
      to be purchased on the related Closing Date to the Purchaser at least two (2)
      Business Days prior to the related Closing Date. The Mortgage Loans shall be
      sold pursuant to this Agreement, and the related Term Sheet shall be executed
      and delivered on the related Closing Date.

    

    Section
      2.02 Purchase
      Price.

    

    The
      “Purchase Price” for each Mortgage Loan shall be the percentage of par as stated
      in the related Term Sheet, multiplied by the Stated Principal Balance, as of
      the
      related Cut-off Date, of the Mortgage Loan listed on the related Mortgage Loan
      Schedule attached to the related Term Sheet, after application of scheduled
      payments of principal due on or before the related Cut-off Date whether or
      not
      collected. 

    

    In
      addition to the Purchase Price as described above, the Purchaser shall pay
      to
      the Company, at closing, accrued interest on the Stated Principal Balance of
      each Mortgage Loan as of the related Cut-off Date at the Mortgage Loan
      Remittance Rate of each Mortgage Loan from the related Cut-off Date through
      the
      day prior to the related Closing Date, inclusive.

    

    The
      Purchase Price plus accrued interest as set forth in the preceding paragraph
      shall be paid on the related Closing Date by wire transfer of immediately
      available funds.

    

    The
      Purchaser shall be entitled to (1) all scheduled principal due after the related
      Cut-off Date, (2) all other recoveries of principal collected on or after the
      related Cut-off Date (provided, however, that all scheduled payments of
      principal due on or before the related Cut-off Date and collected by the Company
      or any successor servicer after the related Cut-off Date shall belong to the
      Company), and (3) all payments of interest on the Mortgage Loans net of
      applicable Servicing Fees (minus that portion of any such payment which is
      allocable to the period prior to the related Cut-off Date). The Stated Principal
      Balance of each Mortgage Loan as of the related Cut-off Date is determined
      after
      application of payments of principal due on or before the related Cut-off Date
      whether or not collected, together with any unscheduled principal prepayments
      collected prior to the related Cut-off Date; provided, however, that payments
      of
      scheduled principal and interest prepaid for a Due Date beyond the related
      Cut-off Date shall not be applied to the principal balance as of the related
      Cut-off Date. Such prepaid amounts (minus the applicable Servicing Fee) shall
      be
      the property of the Purchaser. The Company shall deposit any such prepaid
      amounts into the Custodial Account, which account is established for the benefit
      of the Purchaser for subsequent remittance by the Company to the
      Purchaser.

    

    Section
      2.03 [Reserved]

    

    Section
      2.04 Record
      Title and Possession of Mortgage Files; Maintenance of Servicing
      Files.

    

    As
      of the
      related Closing Date, the Company sold, transferred, assigned, set over and
      conveyed to the Purchaser, without recourse, on a servicing retained basis,
      and
      the Company hereby acknowledges that the Purchaser has, but subject to the
      terms
      of this Agreement and the related Term Sheet, all the right, title and interest
      of the Company in and to the Mortgage Loans. The Company will deliver the
      Mortgage Files to the Custodian designated by the Purchaser, on or before the
      related Closing Date, at the expense of the Company. The Company shall maintain
      a Servicing File consisting of a copy of the contents of each Mortgage File
      and
      the originals of the documents in each Mortgage File not delivered to the
      Purchaser. The Servicing File shall contain all documents necessary to service
      the Mortgage Loans. The possession of each Servicing File by the Company is
      at
      the will of the Purchaser, for the sole purpose of servicing the related
      Mortgage Loan, and such retention and possession by the Company is in a
      custodial capacity only. From the related Closing Date, the ownership of each
      Mortgage Loan, including the Mortgage Note, the Mortgage, the contents of the
      related Mortgage File and all rights, benefits, proceeds and obligations arising
      therefrom or in connection therewith, has been vested in the Purchaser. All
      rights arising out of the Mortgage Loans including, but not limited to, all
      funds received on or in connection with the Mortgage Loans and all records
      or
      documents with respect to the Mortgage Loans prepared by or which come into
      the
      possession of the Company shall be received and held by the Company in trust
      for
      the benefit of the Purchaser as the owner of the Mortgage Loans. Any portion
      of
      the Mortgage Files retained by the Company shall be appropriately identified
      in
      the Company's computer system to clearly reflect the ownership of the Mortgage
      Loans by the Purchaser. The Company shall release its custody of the contents
      of
      the Mortgage Files only in accordance with written instructions of the
      Purchaser, except when such release is required as incidental to the Company's
      servicing of the Mortgage Loans or is in connection with a repurchase of any
      Mortgage Loan or Loans with respect thereto pursuant to this Agreement and
      the
      related Term Sheet, such written instructions shall not be
      required.

    

    Section
      2.05  Books
      and Records.

    

    The
      sale
      of each Mortgage Loan shall be reflected on the Company's balance sheet and
      other financial statements as a sale of assets by the Company. The Company
      shall
      be responsible for maintaining, and shall maintain, a complete set of books
      and
      records for the Mortgage Loans that shall be appropriately identified in the
      Company's computer system to clearly reflect the ownership of the Mortgage
      Loan
      by the Purchaser. In particular, the Company shall maintain in its possession,
      available for inspection by the Purchaser, or its designee and shall deliver
      to
      the Purchaser upon demand, evidence of compliance with all federal, state and
      local laws, rules and regulations, and requirements of Fannie Mae or FHLMC,
      as
      applicable, including but not limited to documentation as to the method used
      in
      determining the applicability of the provisions of the Flood Disaster Protection
      Act of 1973, as amended, to the Mortgaged Property, documentation evidencing
      insurance coverage of any condominium project as required by Fannie Mae or
      FHLMC, and periodic inspection reports as required by Section 4.13. To the
      extent that original documents are not required for purposes of realization
      of
      Liquidation Proceeds or Insurance Proceeds, documents maintained by the Company
      may be in the form of microfilm or microfiche.

    

    The
      Company shall maintain with respect to each Mortgage Loan and shall make
      available for inspection by the Purchaser or its designee the related Servicing
      File during the time the Purchaser retains ownership of a Mortgage Loan and
      thereafter in accordance with applicable laws and regulations.

    

    In
      addition to the foregoing, the Company shall provide to any supervisory agents
      or examiners that regulate the Purchaser, including but not limited to, the
      OTS,
      the FDIC and other similar entities, access, during normal business hours,
      upon
      reasonable advance notice to the Company and without cost to the Company or
      such
      supervisory agents or examiners, to any documentation regarding the Mortgage
      Loans that may be required by any applicable regulator.

    

    Section
      2.06. Transfer
      of Mortgage Loans.

    

    The
      Company shall keep at its servicing office books and records in which, subject
      to such reasonable regulations as it may prescribe, the Company shall note
      transfers of Mortgage Loans. No transfer of a Mortgage Loan may be made unless
      such transfer is in compliance with the terms hereof. For the purposes of this
      Agreement, the Company shall be under no obligation to deal with any person
      with
      respect to this Agreement or any Mortgage Loan unless a notice of the transfer
      of such Mortgage Loan has been delivered to the Company in accordance with
      this
      Section 2.06 and the books and records of the Company show such person as the
      owner of the Mortgage Loan. The Purchaser may, subject to the terms of this
      Agreement, sell and transfer one or more of the Mortgage Loans; provided,
      however, that the transferee will not be deemed to be a Purchaser hereunder
      binding upon the Company unless such transferee shall agree in writing to be
      bound by the terms of this Agreement and an original counterpart of the
      instrument of transfer in an Assignment and Assumption of this Agreement
      substantially in the form of Exhibit
      D
      hereto
      executed by the transferee shall have been delivered to the Company. The
      Purchaser also shall advise the Company of the transfer. Upon receipt of notice
      of the transfer, the Company shall mark its books and records to reflect the
      ownership of the Mortgage Loans of such assignee, and the previous Purchaser
      shall be released from its obligations hereunder with respect to the Mortgage
      Loans sold or transferred.

    

    Section
      2.07 Delivery
      of Mortgage Loan Documents.

    

    The
      Company shall deliver and release to the Purchaser or its designee the Mortgage
      Loan Documents in accordance with the terms of this Agreement and the related
      Term Sheet. The documents enumerated as items (1), (2), (3), (4), (5), (6),
      (7),
      (8), (9) and (16) in Exhibit
      A
      hereto
      shall be delivered by the Company to the Purchaser or its designee no later
      than
      three (3) Business Days prior to the related Closing Date pursuant to a bailee
      letter agreement. All other documents in Exhibit
      A
      hereto,
      together with all other documents executed in connection with the Mortgage
      Loan
      that the Company may have in its possession, shall be retained by the Company
      in
      trust for the Purchaser. If the Company cannot deliver the original recorded
      Mortgage Loan Documents or the original policy of title insurance, including
      riders and endorsements thereto, on the related Closing Date, the Company shall,
      promptly upon receipt thereof and in any case not later than 150 days from
      the
      related Closing Date, deliver such original documents, including original
      recorded documents, to the Purchaser or its designee (unless the Company is
      delayed in making such delivery by reason of the fact that such documents shall
      not have been returned by the appropriate recording office). If delivery is
      not
      completed within 150 days solely due to delays in making such delivery by reason
      of the fact that such documents shall not have been returned by the appropriate
      recording office, the Company shall deliver such document to Purchaser, or
      its
      designee, within such time period as specified in a Company's Officer's
      Certificate. In the event that documents have not been received by the date
      specified in the Company's Officer's Certificate, a subsequent Company's
      Officer's Certificate shall be delivered by such date specified in the prior
      Company's Officer's Certificate, stating a revised date for receipt of
      documentation. The procedure shall be repeated until the documents have been
      received and delivered. If delivery is not completed within 270 days solely
      due
      to delays in making such delivery by reason of the fact that such documents
      shall not have been returned by the appropriate recording office, the Company
      shall continue to use its best efforts to effect delivery as soon as possible
      thereafter, provided that if such documents are not delivered by the 330th
      day
      from the date of the related Closing Date, the Company shall repurchase the
      related Mortgage Loans at the Repurchase Price in accordance with Section 3.03
      hereof unless the Company provides evidence that such non-delivery is solely
      due
      to delays by the appropriate recording office.

    

    The
      Company shall pay all initial recording fees, if any, for the assignments of
      mortgage and any other fees in connection with the transfer of all original
      documents to the Purchaser or its designee. The Company shall prepare, in
      recordable form, all assignments of mortgage necessary to assign the Mortgage
      Loans to the Purchaser, or its designee. The Company shall be responsible for
      recording the assignments of mortgage as directed by the Purchaser.

    

    The
      Company shall provide an original or duplicate original of the title insurance
      policy to the Purchaser or its designee within ninety (90) days of the receipt
      of the recorded documents (required for issuance of such policy) from the
      applicable recording office.

    

    Any
      review by the Purchaser, or its designee, of the Mortgage Files shall in no
      way
      alter or reduce the Company's obligations hereunder.

    

    If
      the
      Purchaser or its designee discovers any defect with respect to a Mortgage File,
      the Purchaser shall, or shall cause its designee to, give written specification
      of such defect to the Company which may be given in the exception report
      attached as an exhibit to the related Term Sheet or the certification delivered
      pursuant to this Section 2.07, or otherwise in writing and the Company shall
      cure or repurchase such Mortgage Loan in accordance with Section
      3.03.

    

    The
      Company shall forward to the Purchaser, or its designee, original documents
      evidencing an assumption, modification, consolidation or extension of any
      Mortgage Loan entered into in accordance with Section 4.01 or 6.01 within thirty
      (30) days of their execution; provided, however, that the Company shall provide
      the Purchaser, or its designee, with a certified true copy of any such document
      submitted for recordation within thirty (30) days of its execution, and shall
      provide the original of any document submitted for recordation or a copy of
      such
      document certified by the appropriate public recording office to be a true
      and
      complete copy of the original within 120 days of its submission for
      recordation.

    

    From
      time
      to time, the Company may have a need (other than in connection with a payment
      in
      full, which is described more fully in Section 6.02 herein) for Mortgage Loan
      Documents to be released from the Purchaser, or its designee. The Purchaser
      shall, or shall cause its designee, upon the written request of the Company
      in
      the form attached hereto as Exhibit
      G,
      within
      ten (10) Business Days, deliver to the Company, any requested documentation
      previously delivered to the Purchaser as part of the Mortgage File, provided
      that such documentation is promptly returned to the Purchaser, or its designee,
      when the Company no longer requires possession of the document, and provided
      that during the time that any such documentation is held by the Company, such
      possession is in trust for the benefit of the Purchaser. 

    

    Section
      2.08 Quality
      Control Procedures.

    

    The
      Company must have an internal quality control program that verifies, on a
      regular basis, the existence and accuracy of the legal documents, credit
      documents, property appraisals, and underwriting decisions. The program must
      be
      capable of evaluating and monitoring the overall quality of its loan production
      and servicing activities. The program is to ensure that the Mortgage Loans
      are
      originated and serviced in accordance with prudent mortgage banking practices
      and accounting principles; guard against dishonest, fraudulent, or negligent
      acts; and guard against errors and omissions by officers, employees, or other
      authorized persons.

    

    Section
      2.09 Near-term
      Principal Prepayments; Near Term Payment Defaults.

    

    In
      the
      event any Principal Prepayment in full is made by a Mortgagor on or prior to
      three months (unless such other period is set forth in the related Confirmation
      and Term Sheet) after the related Closing Date, the Company shall, upon written
      notice thereof from the Purchaser received by the Company within sixty (60)
      days
      of the date of such prepayment in full, remit to the Purchaser an amount equal
      to the excess, if any, of the Purchase Price Percentage over par multiplied
      by
      the amount of such Principal Prepayment in full. Such remittance shall be made
      by the Company to the Purchaser no later than the seventh Business Day following
      receipt of such notice of Principal Prepayment by the Purchaser.

    

    In
      the
      event either of the first three (3) scheduled Monthly Payments (unless such
      other number of Monthly Payments is set forth in the related Confirmation or
      Term Sheet) which are due under any Mortgage Loan after the related Cut-off
      Date
      are not made during the month in which such Monthly Payments are due, then
      not
      later than seven (7) Business Days after written notice to the Company by the
      Purchaser (and at the Purchaser’s sole option), the Company, shall repurchase
      such Mortgage Loan from the Purchaser pursuant to the repurchase provisions
      contained in Subsection 3.03. However, if the Company provides evidence
      satisfactory to the Purchaser that the delinquency was due to a servicing set
      up
      error, no repurchase shall be required. 

    
 

    ARTICLE
      III

    

    REPRESENTATIONS
      AND WARRANTIES OF

    THE
      COMPANY; REPURCHASE; REVIEW OF MORTGAGE LOANS

    

    Section
      3.01 Representations
      and Warranties of the Company.
      

    

    The
      Company represents, warrants and covenants to the Purchaser that, as of the
      related Closing Date or as of such date specifically provided
      herein:

    

    (a)
      The
      Company is duly organized, validly existing and in good standing under the
      laws
      of the jurisdiction of its organization and has all licenses necessary to carry
      out its business as now being conducted, and is licensed and qualified to
      transact business in and is in good standing under the laws of each state in
      which any Mortgaged Property is located or is otherwise exempt under applicable
      law from such licensing or qualification or is otherwise not required under
      applicable law to effect such licensing or qualification and no demand for
      such
      licensing or qualification has been made upon the Company by any such state,
      and
      in any event the Company is in material compliance with the laws of any such
      state to the extent necessary to ensure the enforceability of each Mortgage
      Loan
      and the servicing of the Mortgage Loans in accordance with the terms of this
      Agreement;

     

    (b)
      The
      Company has adequate power and authority and legal right to hold each Mortgage
      Loan, to sell each Mortgage Loan and to execute, deliver and perform, and to
      enter into and consummate all transactions contemplated by this Agreement and
      the related Term Sheet. The Company has duly authorized the execution, delivery
      and performance of this Agreement and the related Term Sheet and any agreements
      contemplated hereby, has duly executed and delivered this Agreement and the
      related Term Sheet, and any agreements contemplated hereby, and, assuming due
      authorization, execution and delivery by the Purchaser, this Agreement and
      the
      related Term Sheet and each Assignment to the Purchaser and any agreements
      contemplated hereby, constitutes a legal, valid and binding obligation of the
      Company, enforceable against it in accordance with its terms, except as
      enforceability thereof may be limited by bankruptcy, insolvency or
      reorganization; 

    (c)
      Neither the execution and delivery of this Agreement and the related Term Sheet,
      nor the origination or purchase of the Mortgage Loans by the Company, the sale
      of the Mortgage Loans to the Purchaser, the consummation of the transactions
      contemplated hereby, or the fulfillment of or compliance with the terms and
      conditions of this Agreement and the related Term Sheet will violate the
      Company's charter or by-laws or constitute a default under or result in a
      material breach or acceleration of any material agreement or instrument to
      which
      the Company is now a party or by which it is bound, or result in the material
      violation of any law, rule, regulation, order, judgment or decree to which
      the
      Company or its properties are subject, or impair the ability of the Purchaser
      to
      enforce its rights under the Mortgage Loans.

    

    (d)
      There
      is no action, suit, proceeding or investigation pending or, to the best of
      the
      Company’s knowledge, threatened against the Company, or any order or decree
      outstanding, with respect to the Company which, either in any one instance
      or in
      the aggregate, could reasonably be expected to have a material adverse effect
      on
      the financial condition of the Company or seeks to prevent the consummation,
      performance or enforceability of any of the transactions contemplated by this
      Agreement.

    

    (e)
      No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Company
      of
      or compliance by the Company with this Agreement or the related Term Sheet,
      or
      the consummation of the transactions contemplated by this Agreement or the
      related Term Sheet, except for consents, approvals, authorizations and orders
      which have been obtained;

    

    (f)
      The
      consummation of the transactions contemplated by this Agreement or the related
      Term Sheet is in the ordinary course of business of the Company, and the
      transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
      by
      the Company pursuant to this Agreement or the related Term Sheet are not subject
      to bulk transfer or any similar statutory provisions in effect in any applicable
      jurisdiction;

    

    (g)
      The
      origination and servicing practices used by the Company and any prior originator
      or servicer with respect to each Mortgage Note and Mortgage have been legal
      and
      in accordance with applicable laws and regulations and the Mortgage Loan
      Documents, and in all material respects proper and prudent in the mortgage
      origination and servicing business. Each
      Mortgage Loan is being (and has been) serviced in accordance with Accepted
      Servicing Practices and applicable state and federal laws, including, without
      limitation, the Federal Truth-In-Lending Act and other consumer protection
      laws,
      real estate settlement procedures, usury, equal credit opportunity and
      disclosure laws. With
      respect to escrow deposits and payments that the Company, on behalf of an
      investor, is entitled to collect, all such payments are in the possession of,
      or
      under the control of, the Company, and there exist no deficiencies in connection
      therewith for which customary arrangements for repayment thereof have not been
      made. All escrow payments have been collected in full compliance with state
      and
      federal law and the provisions of the related Mortgage Note and Mortgage. As
      to
      any Mortgage Loan that is the subject of an escrow, escrow of funds is not
      prohibited by applicable law and has been established in an amount sufficient
      to
      pay for every escrowed item that remains unpaid and has been assessed but is
      not
      yet due and payable. No escrow deposits or other charges or payments due under
      the Mortgage Note have been capitalized under any Mortgage or the related
      Mortgage Note;

    

    (h)
      The
      Company used no selection procedures that identified the Mortgage Loans as
      being
      less desirable or valuable than other comparable mortgage loans in the Company's
      portfolio at the related Cut-off Date; 

    

    (i)
      The
      Company will treat the sale of the Mortgage Loans to the Purchaser as a sale
      for
      reporting and accounting purposes and, to the extent appropriate, for federal
      income tax purposes; 

    

    (j)
      The
      Company is an approved seller/servicer of residential mortgage loans for Fannie
      Mae, FHLMC and HUD, with such facilities, procedures and personnel necessary
      for
      the sound servicing of such mortgage loans. The Company is duly qualified,
      licensed, registered and otherwise authorized under all applicable federal,
      state and local laws, and regulations, if applicable, meets the minimum capital
      requirements set forth by the OTS, and is in good standing to sell mortgage
      loans to and service mortgage loans for Fannie Mae and FHLMC and no event has
      occurred which would make the Company unable to comply with eligibility
      requirements or which would require notification to either Fannie Mae or FHLMC;
      

    

    (k)
      The
      Company does not believe, nor does it have any cause or reason to believe,
      that
      it cannot perform each and every covenant contained in this Agreement or the
      related Term Sheet. The Company is solvent and the sale of the Mortgage Loans
      will not cause the Company to become insolvent. The sale of the Mortgage Loans
      is not undertaken with the intent to hinder, delay or defraud any of the
      Company's creditors;

    

    (l)
      No
      statement, tape, diskette, form, report or other document prepared by, or on
      behalf of, the Company pursuant to this Agreement or the related Term Sheet
      or
      in connection with the transactions contemplated hereby, contains or will
      contain any statement that is or will be inaccurate or misleading in any
      material respect;

    

    (m)
      The
      Company acknowledges and agrees that the Servicing Fee represents reasonable
      compensation for performing such services and that the entire Servicing Fee
      shall be treated by the Company, for accounting and tax purposes, as
      compensation for the servicing and administration of the Mortgage Loans pursuant
      to this Agreement. In the opinion of the Company, the consideration received
      by
      the Company upon the sale of the Mortgage Loans to the Purchaser under this
      Agreement and the related Term Sheet constitutes fair consideration for the
      Mortgage Loans under current market conditions. 

    

    (n)
      The
      Company has delivered to the Purchaser financial statements of its parent,
      for
      its last two complete fiscal years as requested. All such financial information
      fairly presents the pertinent results of operations and financial position
      for
      the period identified and has been prepared in accordance with GAAP throughout
      the periods involved, except as set forth in the notes thereto. There has been
      no change in the business, operations, financial condition, properties or assets
      of the Company since the date of the Company’s financial information that would
      have a material adverse effect on its ability to perform its obligations under
      this Agreement; and

    

    (o)
      The
      Company has not dealt with any broker, investment banker, agent or other person
      that may be entitled to any commission or compensation in connection with the
      sale of the Mortgage Loans.

    

    Section
      3.02 Representations
      and Warranties as to Individual Mortgage Loans.

    

    The
      Company hereby represents and warrants to the Purchaser, as to each Mortgage
      Loan, as of the related Closing Date as follows:

    

      
      (a)
The
      information set forth in the Mortgage Loan Schedule attached to the related
      Term
      Sheet is true, complete and correct in all material respects as of the related
      Cut-Off Date;

    

    (b)
      The
      Mortgage is a valid, existing and enforceable first lien or a first priority
      ownership interest in an estate in fee simple in real property on the Mortgaged
      Property securing the related Mortgage Note subject to principles of equity,
      bankruptcy, insolvency and other laws of general application affecting the
      rights of creditors;

    

    (c)
      All
      payments due prior to the related Cut-off Date for such Mortgage Loan have
      been
      made; there are no material defaults under the terms of the Mortgage Loan;
      the
      Company has not advanced its own 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 Loan. All of the Mortgage Loans will have an actual
      interest paid to date of their related Cut-off Date (or later) and will be
      due
      for the scheduled monthly payment next succeeding the Cut-off Date (or later),
      as evidenced by a posting to the Company's servicing collection system. No
      payment under any Mortgage Loan is delinquent nor has any scheduled payment
      been
      delinquent at any time during the twelve (12) months prior to the month of
      the
      related Closing Date. 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 was due;

    

    (d)
      There
      are no defaults by the Company in complying with the terms of the Mortgage,
      and
      all taxes, governmental assessments, insurance premiums, water, sewer and
      municipal charges, leasehold payments or ground rents which previously became
      due and owing have been paid, or escrow funds have been established in an amount
      sufficient to pay for every such escrowed item which remains unpaid and which
      has been assessed but is not yet due and payable;

    

    (e)
      The
      terms of the Mortgage Note and the Mortgage have not been impaired, waived,
      altered or modified in any respect, except by written instruments which have
      been recorded to the extent any such recordation is required by law, or,
      necessary to protect the interest of the Purchaser. No instrument of waiver,
      alteration or modification has been executed except in connection with a
      modification agreement and which modification agreement is part of the Mortgage
      File and the terms of which are reflected in the related Mortgage Loan Schedule,
      and no Mortgagor has been released, in whole or in part, from the terms thereof
      except in connection with an assumption agreement and which assumption agreement
      is part of the Mortgage File and the terms of which are reflected in the related
      Mortgage Loan Schedule; the substance of any such waiver, alteration or
      modification has been approved by the issuer of any related Primary Mortgage
      Insurance Policy, Lender Primary Mortgage Insurance Policy and title insurance
      policy, to the extent required by the related policies;

    

    (f)
      The
      Mortgage Note and the Mortgage are not subject to any right of rescission,
      set-off, counterclaim or defense, including, without limitation, the defense
      of
      usury, nor will the operation of any of the terms of the Mortgage Note or the
      Mortgage, or the exercise of any right thereunder, render the Mortgage Note
      or
      Mortgage unenforceable, in whole or in part, or subject to any 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;

    

    (g)
      All
      buildings or other customarily insured improvements upon the Mortgaged Property
      are insured by a Qualified Insurer, against loss by fire, hazards of extended
      coverage and such other hazards as are provided for in the Fannie Mae or FHLMC
      Guide, as well as all additional requirements set forth in Section 4.10 of
      this
      Agreement. All such insurance policies are in full force and effect and contain
      a standard mortgagee clause naming the Company and its successors in interest
      and assigns as loss payee and such clause is still in effect and all premiums
      due thereon have been paid. If required by the Flood Disaster Protection Act
      of
      1973, as amended, the Mortgage Loan is covered by a flood insurance policy
      meeting the requirements of the current guidelines of the Federal Insurance
      Administration which policy conforms to Fannie Mae or FHLMC requirements, as
      well as all additional requirements set forth in Section 4.10 of this Agreement.
      Such policy was issued by a Qualified Insurer. The Mortgage obligates the
      Mortgagor thereunder to maintain all such insurance at the Mortgagor's cost
      and
      expense, and on the Mortgagor's failure to do so, authorizes the holder of
      the
      Mortgage to maintain such insurance at the Mortgagor's cost and expense and
      to
      seek reimbursement therefor from the Mortgagor. Neither the Company (nor any
      prior originator or servicer of any of the Mortgage Loans) nor any Mortgagor
      has
      engaged in any act or omission which has impaired or would impair the coverage
      of any such policy, the benefits of the endorsement provided for therein, or
      the
      validity and binding effect of either;

    

    (h)
      Each
Mortgage
      Loan complies with, and the Company has complied with, applicable local, state
      and federal laws, regulations and other requirements including, without
      limitation, usury, equal credit opportunity, real estate settlement procedures,
      the Federal Truth-In-Lending Act, disclosure laws and all applicable predatory
      and abusive lending laws and consummation of the transactions contemplated
      hereby, including without limitation, the receipt of interest by the owner
      of
      such Mortgage Loan, will not involve the violation of any such laws, rules
      or
      regulations. None of the Mortgage Loans are (a) Mortgage Loans subject to 12
      CFR
      Part 226.31, 12 CFR Part 226.32 or 226.34 of Regulation Z, the regulation
      implementing TILA, which implements the Home Ownership and Equity Protection
      Act
      of 1994, as amended, or (b) except as may be provided in subparagraph (c) below,
      classified and/or defined, as a “high cost”, “threshold”, “predatory” “high risk
      home loan” or “covered” loan (or a similarly classified loan using different
      terminology under a law imposing additional legal liability for mortgage loans
      having high interest rates, points and or/fees) under any other applicable
      state, federal or local law including, but not limited to, the States of
      Georgia, New York, North Carolina, Arkansas, Kentucky or New Mexico, (c)
      Mortgage Loans subject to the New Jersey Home Ownership Security Act of 2002
      (the “Act”), unless such Mortgage Loan is a (1) “Home Loan” as defined in the
      Act that is a first lien Mortgage Loan, which is not a “High Cost Home Loan” as
      defined in the Act or (2) “Covered Home Loan” as defined in the Act that is a
      first lien purchase money Mortgage Loan, which is not a High Cost Home Loan
      under the Act, or (d) secured by Mortgaged Property in the Commonwealth of
      Massachusetts with a loan application date on or after November 7, 2004 that
      refinances a mortgage loan that is less than sixty (60) months old, unless
      such
      Mortgage Loan (1) is on an investment property, (ii) meets the requirements
      set
      forth in the Code of Massachusetts Regulation (“CMR”), 209 CMR 53.04(1)(b), or
      (iii) meets the requirements set forth in the 209 CMR 53.04(1)(c). In addition
      to and notwithstanding anything to the contrary herein, no Mortgage Loan for
      which the Mortgaged Property is located in New Jersey is a Home Loan as defined
      in the Act that was made, arranged, or assigned by a person selling either
      a
      manufactured home or home improvements to the Mortgaged Property or was made
      by
      an originator to whom the Mortgagor was referred by any such seller. The Company
      shall maintain in its possession, available for the Purchaser’s inspection, as
      appropriate, and shall deliver to the Purchaser or its designee upon demand,
      evidence of compliance with all such requirements;
      

    

    (i)
      The
      Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
      or rescinded, 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 release, cancellation, subordination or rescission. The
      Company has not waived the performance by the Mortgagor of any action, if the
      Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
      in default, nor has the Company waived any default resulting from any action
      or
      inaction by the Mortgagor;

    

    (j)
      The
      Mortgage is a valid, existing, enforceable and perfected first lien on the
      Mortgaged Property, including all improvements securing the Mortgage Note's
      original principal balance subject to principles of equity, bankruptcy,
      insolvency and other laws of general application affecting the rights of
      creditors. The Mortgage and the Mortgage Note do not contain any evidence of
      any
      other security interest or other interest or right thereto. Such lien is free
      and clear of all adverse claims, liens and encumbrances having priority over
      the
      first lien of the Mortgage subject only to (1) the lien of non-delinquent
      current real property taxes and assessments not yet due and payable, (2)
      covenants, conditions and restrictions, rights of way, easements and other
      matters of the public record as of the date of recording which are acceptable
      to
      mortgage lending institutions generally and either (A) which are referred to
      in
      the lender’s title insurance policy delivered to the originator or otherwise
      considered in the appraisal made for the originator of the Mortgage Loan, or
      (B)
      which do not adversely affect the residential use or Appraised Value of the
      Mortgaged Property as set forth in such appraisal, and (3) other matters to
      which like properties are commonly subject which do not, individually or in
      the
      aggregate, 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, enforceable and perfected first
      lien and first priority security interest on the property described therein,
      and
      the Company has the full right to sell and assign the same to the
      Purchaser;

    

    (k)
      The
      Mortgage Note and the related Mortgage are original and genuine and each is
      the
      legal, valid and binding obligation of the maker thereof, enforceable in
      accordance with its terms subject to principles of equity, bankruptcy,
      insolvency and other laws of general application affecting the rights of
      creditors, and the Company has taken all action necessary to transfer such
      rights of enforceability to the Purchaser (as applicable). All parties to the
      Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage
      Loan and to execute and deliver the Mortgage Note and the Mortgage. The Mortgage
      Loan Documents are on forms acceptable to Fannie Mae and FHLMC. The Mortgage
      Note and the Mortgage have been duly and properly executed by such parties.
      No
      fraud, error, omission, misrepresentation, negligence or similar occurrence
      with
      respect to a Mortgage Loan has taken place on the part of the Company or the
      Mortgagor, or on the part of any other party involved in the origination or
      servicing of the Mortgage Loan. The proceeds of the Mortgage Loan have been
      fully disbursed and there is no requirement for future advances thereunder,
      and
      any and all requirements as to completion of any on-site or off-site
      improvements and as to disbursements of any escrow funds therefor have been
      complied with. All costs, fees and expenses incurred in making or closing the
      Mortgage Loan and the recording of the Mortgage were paid, and the Mortgagor
      is
      not entitled to any refund of any amounts paid or due under the Mortgage Note
      or
      Mortgage;

    

    (l)
      The
      Company is the sole owner and holder of the Mortgage Loan and the indebtedness
      evidenced by the Mortgage Note, and had full right to transfer and sell the
      Mortgage Loan to the Purchaser free and clear of any encumbrance, equity,
      participation interests, lien, pledge, charge, claim or security interest.
      Upon
      the sale of the Mortgage Loan to the Purchaser, the Company will retain the
      Mortgage File or any part thereof with respect thereto not delivered to the
      Purchaser or the Purchaser’s designee in trust only for the purpose of servicing
      and supervising the servicing of the Mortgage Loan. Immediately prior to the
      transfer and assignment to the Purchaser, the Mortgage Loan, including the
      Mortgage Note and the Mortgage, were not subject to an assignment, sale or
      pledge to any person other than the Purchaser, and the Company had good and
      marketable title to and was the sole owner thereof. Following the sale of the
      Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear of
      any
      encumbrance, equity, participation interest, lien, pledge, charge, claim or
      security interest. The Company intends to relinquish all rights to possess,
      control and monitor the Mortgage Loan, except for purposes of servicing the
      Mortgage Loan as set forth in this Agreement. After the related Closing Date,
      the Company will not have any right to modify or alter the terms of the sale
      of
      the Mortgage Loan and the Company will not have any obligation or right to
      repurchase the Mortgage Loan or substitute another Mortgage Loan, except as
      provided in this Agreement, or as otherwise agreed to by the Company and the
      Purchaser;

    

    (m)
      Each
      Mortgage Loan is covered by an ALTA lender's title insurance policy or other
      generally acceptable form of policy or insurance acceptable to Fannie Mae or
      FHLMC (including adjustable rate endorsements), issued by a title insurer
      acceptable to Fannie Mae or FHLMC and qualified to do business in the
      jurisdiction where the Mortgaged Property is located, insuring (subject to
      the
      exceptions contained in (j)(1), (2) and (3) above) the Company, its successors
      and assigns, as to the first priority lien of the Mortgage in the original
      principal amount of the Mortgage Loan and, with respect to adjustable rate
      Mortgage Loans, 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. Where required
      by
      state law or regulation, the Mortgagor has been given the opportunity to choose
      the carrier of the required mortgage title insurance. The Company, its
      successors and assigns, is the sole insured of such lender's title insurance
      policy, such title insurance policy has been duly and validly endorsed to the
      Purchaser (to the extent necessary) or the assignment to the Purchaser of the
      Company's interest therein does not require the consent of or notification
      to
      the insurer 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 or servicer of the related Mortgage,
      including the Company, nor any Mortgagor, has done, by act or omission, anything
      which would impair the coverage of such lender's title insurance
      policy;

    

    (n)
      There
      is no default, breach, violation or event of acceleration existing under the
      Mortgage or the related 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 neither
      the Company, nor any prior mortgagee, has waived any default, breach, violation
      or event of acceleration;

    

    (o)
      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 liens) affecting the related Mortgaged Property which are or may be
      liens prior to or equal to the lien of the related Mortgage;

    

    (p)
      All
      improvements subject to the Mortgage which were considered in determining the
      appraised value of the Mortgaged Property lie wholly within the boundaries
      and
      building restriction lines of the Mortgaged Property (and wholly within the
      project with respect to a condominium unit) and no improvements on adjoining
      properties encroach upon the Mortgaged Property except those which are insured
      against by the title insurance policy referred to in clause (m) above and all
      improvements on the property comply with all applicable zoning and subdivision
      laws and ordinances;

    

    (q)
      Each
      Mortgage Loan was originated by or for the Company pursuant to, and conforms
      with, the Company’s underwriting guidelines attached as Exhibit
      H
      hereto.
      The Mortgage Loan bears interest at an adjustable rate (if applicable) as set
      forth in the related Mortgage Loan Schedule, and Monthly Payments under the
      Mortgage Note are due and payable on the first day of each month. The Mortgage
      contains the usual and enforceable provisions of the Company at the time of
      origination for the acceleration of the payment of the unpaid principal amount
      of the Mortgage Loan if the related Mortgaged Property is sold without the
      prior
      consent of the mortgagee thereunder;

    

    (r)
      The
      Mortgaged Property is not subject to any material damage. At origination of
      the
      Mortgage Loan there was not, since origination of the Mortgage Loan there has
      not been, and there currently is no proceeding pending for the total or partial
      condemnation of the Mortgaged Property. The Company has not received
      notification that any such proceedings are scheduled to commence at a future
      date;

    

    (s)
      The
      related Mortgage contains customary and enforceable provisions such as to render
      the rights and remedies of the holder thereof adequate for the realization
      against the Mortgaged Property of the benefits of the security provided thereby,
      including, (1) in the case of a Mortgage designated as a deed of trust, by
      trustee's sale, and (2) otherwise by judicial foreclosure. There is no homestead
      or other exemption available to the Mortgagor which would interfere with the
      right to sell the Mortgaged Property at a trustee's sale or the right to
      foreclose the Mortgage;

    

    (t)
      If
      the Mortgage constitutes a deed of trust, a trustee, authorized and duly
      qualified if required under applicable law to act as such, has been properly
      designated and currently so serves and is named in the Mortgage, and no fees
      or
      expenses, except as may be required by local law, are or will become payable
      by
      the Purchaser to the trustee under the deed of trust, except in connection
      with
      a trustee's sale or attempted sale after default by the Mortgagor;

    

    (u)
      The
      Mortgage File contains an appraisal of the related Mortgaged Property signed
      prior to the final approval of the mortgage loan application by a Qualified
      Appraiser, approved by the Company, who had no interest, direct or indirect,
      in
      the Mortgaged Property or in any loan made on the security thereof, and whose
      compensation is not affected by the approval or disapproval of the Mortgage
      Loan, and the appraisal and appraiser both satisfy the requirements of Fannie
      Mae or FHLMC and Title XI of the FIRREA and the regulations promulgated
      thereunder, all as in effect on the date the Mortgage Loan was originated.
      The
      appraisal is in a form acceptable to Fannie Mae or FHLMC;

    

    (v)
      All
      parties which have had any interest in the Mortgage, whether as mortgagee,
      assignee, pledgee or otherwise, are (or, during the period in which they held
      and disposed of such interest, were) (A) in compliance with any and all
      applicable licensing requirements of the laws of the state wherein the Mortgaged
      Property is located, and (B) (1) organized under the laws of such state, or
      (2)
      qualified to do business in such state, or (3) federal savings and loan
      associations or national banks or a Federal Home Loan Bank or savings bank
      having principal offices in such state, or (4) not doing business in such
      state;

    

    (w)
      The
      related Mortgage Note is not and has not been secured by any collateral except
      the lien of the corresponding Mortgage and the security interest of any
      applicable security agreement or chattel mortgage referred to above and such
      collateral does not serve as security for any other obligation;

    

    (x)
      The
      Mortgagor has received and has executed, where applicable, all disclosure
      materials required by applicable law with respect to the making of such mortgage
      loans;

    

    (y)
      The
      Mortgage Loan does not contain balloon or "graduated payment" features and
      no
      Mortgage Loan is subject to a buydown agreement or contains any buydown
      provision;

    

    (z)
      The
      Mortgagor is not in bankruptcy and, the Mortgagor is not insolvent and the
      Company has no knowledge of any circumstances or conditions with respect to
      the
      Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor's credit
      standing that could reasonably be expected to cause investors to regard the
      Mortgage Loan as an unacceptable investment, cause the Mortgage Loan to become
      delinquent, or materially adversely affect the value or marketability of the
      Mortgage Loan;

    

    (aa)
      Each
      Mortgage Loan bears interest based upon a thirty (30) day month and a three
      hundred and sixty (360) day year. The Mortgage Loans have an original term
      to
      maturity of not more than forty (40) years, with interest payable in arrears
      on
      the first day of each month. As to each adjustable rate Mortgage Loan, on each
      applicable Adjustment Date, the Mortgage Interest Rate will be adjusted to
      equal
      the sum of the Index, plus the applicable Margin; provided, that the Mortgage
      Interest Rate, on each applicable Adjustment Date, will not increase by more
      than the Initial Rate Cap or Periodic Rate Cap, as applicable. Over the term
      of
      each adjustable rate Mortgage Loan, the Mortgage Interest Rate will not exceed
      such Mortgage Loan's Lifetime Rate Cap. Unless indicated on the related Mortgage
      Loan Schedule, none of the Mortgage Loans are “interest-only”
      Mortgage Loans or “negative amortization” Mortgage Loans.
      With
      respect to each adjustable rate Mortgage Loan, each Mort-gage Note requires
      a
      monthly payment which is suffi-cient (a) during the period prior to the first
      adjust-ment to the Mortgage Interest Rate, to fully amortize the original
      principal balance over the original term thereof and to pay interest at the
      related Mortgage Interest Rate, and (b) during the period following each
      Adjust-ment Date, to fully amortize the outstanding principal balance as of
      the
      first day of such period over the then remaining term of such Mortgage Note
      and
      to pay interest at the related Mortgage Interest Rate. With respect to each
      adjustable rate Mortgage Loan, the Mortgage Note provides that when the Mortgage
      Interest Rate changes on an Adjustment Date, the then outstanding principal
      balance will be reamortized over the remaining life of the Mortgage Loan. Unless
      indicated on the related Mortgage Loan Schedule, no Mortgage Loan contains
      terms
      or provi-sions which would result in negative amortization. None of the Mortgage
      Loans contain a conversion feature which would cause the Mortgage Interest
      Rate
      to convert to a fixed interest rate. None of the Mortgage Loans are considered
      agricultural loans; 

    

    (bb)
      (INTENTIONALLY LEFT BLANK)

    

    (cc)
      (INTENTIONALLY LEFT BLANK)

    

    (dd)
      (INTENTIONALLY LEFT BLANK)

     

    (ee)
      (INTENTIONALLY LEFT BLANK) 

    

    (ff)
      (INTENTIONALLY LEFT BLANK)

    

    (gg)
      (INTENTIONALLY LEFT BLANK)

    

    (hh)
      In
      the event the Mortgage Loan had an LTV at origination greater than 80.00%,
      the
      excess of the principal balance of the Mortgage Loan over 75.0% of the Appraised
      Value of the Mortgaged Property with respect to a Refinanced Mortgage Loan,
      or
      the lesser of the Appraised Value or the Sales Price of the Mortgaged Property
      with respect to a purchase money Mortgage Loan was insured as to payment
      defaults by a Primary Mortgage Insurance Policy issued by a Qualified Insurer.
      Any Mortgage Loan subject to a Lender Primary Mortgage Insurance Policy or
      a
      Primary Mortgage Insurance Policy that is also subject to the Company’s captive
      reinsurance agreement with the applicable insurer shall remain subject to such
      captive reinsurance agreement between the Company and the applicable insurer,
      provided that such insurer is a Qualified Insurer. Unless otherwise indicated
      on
      the related Mortgage Loan Schedule, no Mortgage Loan has an LTV over 95%. All
      provisions of such Primary Mortgage Insurance Policy have been and are being
      complied with, such policy is in full force and effect, and all premiums due
      thereunder have been paid. No Mortgage Loan requires payment of such premiums,
      in whole or in part, by the Purchaser. No action, inaction, or event has
      occurred and no state of facts exists that has, or will result in the exclusion
      from, denial of, or defense to coverage. Any Mortgage Loan subject to a Primary
      Mortgage Insurance Policy obligates the Mortgagor thereunder to maintain the
      Primary Mortgage Insurance Policy, subject to state and federal law, and to
      pay
      all premiums and charges in connection therewith. No action has been taken
      or
      failed to be taken, on or prior to the Closing Date which has resulted or will
      result in an exclusion from, denial of, or defense to coverage under any Primary
      Mortgage Insurance Policy (including, without limitation, any exclusions,
      denials or defenses which would limit or reduce the availability of the timely
      payment of the full amount of the loss otherwise due thereunder to the insured)
      whether arising out of actions, representations, errors, omissions, negligence,
      or fraud of the Company or the Mortgagor, or for any other reason under such
      coverage. The Mortgage Interest Rate for the Mortgage Loan as set forth on
      the
      related Mortgage Loan Schedule is net of any such insurance premium. Unless
      otherwise indicated on the related Mortgage Loan Schedule, none of the Mortgage
      Loans are subject to “lender-paid”
      mortgage insurance.
      Any
      Mortgage Loan subject to a Lender Primary Mortgage Insurance Policy obligates
      the Company to maintain the Lender Primary Mortgage Insurance Policy and to
      pay
      all premiums and charges in connection therewith;

    

    (ii)
      The
      Assignment is in recordable form and is acceptable for recording under the
      laws
      of the jurisdiction in which the Mortgaged Property is located;

    

    (jj)
      None
      of the Mortgage Loans are secured by an interest in a leasehold estate. The
      Mortgaged Property is located in the state identified in the related Mortgage
      Loan Schedule and consists of a single parcel of real property with a detached
      single family residence erected thereon, or a townhouse, or a two-to four-family
      dwelling, or an individual condominium unit in a condominium project, or an
      individual unit in a planned unit development or a de minimis planned unit
      development; provided, however, that no residence or dwelling is a single parcel
      of real property with a manufactured home not affixed to a permanent foundation,
      or a mobile home. Any
      condominium unit or planned unit development conforms with the Company’s
      underwriting guidelines. As
      of the
      Origination Date, no portion of any Mortgaged Property was used for commercial
      purposes, and since the Origination Date, no portion of any Mortgaged Property
      has been, or currently is, used for commercial purposes;

    

    (kk)
      Payments on the Mortgage Loan commenced no more than sixty (60) days after
      the
      funds were disbursed in connection with the Mortgage Loan. Each of the Mortgage
      Loans will amortize fully by the stated maturity date;

    

    (ll)
      The
      Mortgage Property was lawfully occupied under applicable law, and all
      inspections, licenses and certificates required to be made or issued with
      respect to all occupied portions of the Mortgaged Property and, with respect
      to
      the use and occupancy of the same, including but not limited to certificates
      of
      occupancy and fire underwriting certificates, have been made or obtained from
      the appropriate authorities;

    

    (mm)
      There is no pending action or proceeding directly involving the Mortgaged
      Property in which compliance with any environmental law, rule or regulation
      is
      an issue; there is no violation of any environmental law, rule or regulation
      with respect to the Mortgaged Property; and the Company has not received any
      notice of any environmental hazard on the Mortgaged Property and nothing further
      remains to be done to satisfy in full all requirements of each such law, rule
      or
      regulation constituting a prerequisite to use and enjoyment of said
      property;

    

    (nn)
      The
      Mortgagor has not notified the Company, and the Company has no knowledge of
      any
      relief requested or allowed to the Mortgagor under the Servicemembers Civil
      Relief Act of 2004;

    

    (oo)
      No
      Mortgage Loan is a construction or rehabilitation Mortgage Loan or was made
      to
      facilitate the trade-in or exchange of a Mortgaged Property;

    

    (pp) The
      Mortgagor for each Mortgage Loan is a natural person;

    

    (qq) None
      of
      the Mortgage Loans are Co-op Loans; 

    

    (rr)
       With
      respect to each Mortgage Loan that has a prepayment penalty feature, each such
      prepayment penalty is enforceable and will be enforced by the Company and each
      prepayment penalty is permitted pursuant to federal, state and local law. No
      Mortgage Loan will impose a prepayment penalty for a term in excess of five
      years from the date such Mortgage Loan was originated. Except as otherwise
      set
      forth on the Mortgage Loan Schedule, with respect to each Mortgage Loan that
      contains a prepayment penalty, such prepayment penalty is at least equal to
      the
      lesser of (A) the maximum amount permitted under applicable law and (B) six
      months interest at the related Mortgage Interest Rate on the amount prepaid
      in
      excess of 20% of the original principal balance of such Mortgage
      Loan;

    

    (ss)
       With
      respect to each Mortgage Loan either (i) the fair market value of the Mortgaged
      Property securing such Mortgage Loan was at least equal to 80 percent of the
      original principal balance of such Mortgage Loan at the time such Mortgage
      Loan
      was originated or (ii) (a) the Mortgage Loan is only secured by the Mortgage
      Property and (b) substantially all of the proceeds of such Mortgage Loan were
      used to acquire or to improve or protect the Mortgage Property. For the purposes
      of the preceding sentence, if the Mortgage Loan has been significantly modified
      other than as a result of a default or a reasonable foreseeable default, the
      modified Mortgage Loan will be viewed as having been originated on the date
      of
      the modification;

    

    (tt)
      The
      Mortgage Loan was originated by a mortgagee approved by the Secretary of HUD
      pursuant to Sections 203 and 211 of the National Housing Act, a savings and
      loan
      association, a savings bank, a commercial bank, credit union, insurance company
      or similar institution which is supervised and examined by a federal or state
      authority; 

    

    (uu)
      None
      of the Mortgage Loans are simple interest Mortgage Loans and none of the
      Mortgaged Properties are timeshares; 

    

    (vv)
      All
      of the terms of the Mortgage pertaining to interest rate adjustments, payment
      adjustments and adjustments of the outstanding principal balance are
      enforceable, all such adjustments have been properly made, including the mailing
      of required notices, and such adjustments do not and will not affect the
      priority of the Mortgage lien. With respect to each Mortgage Loan which has
      passed its initial Adjustment Date, the Company has performed an audit of the
      Mortgage Loan to determine whether all interest rate adjustments have been
      made
      in accordance with the terms of the Mortgage Note and Mortgage;

    

    (ww)
      Each
      Mortgage Note, each Mortgage, each Assignment and any other documents required
      pursuant to this Agreement to be delivered to the Purchaser or its designee,
      or
      its assignee for each Mortgage Loan, have been, on or before the related Closing
      Date, delivered to the Purchaser or its designee, or its assignee;

    

    (xx)
      There is no Mortgage Loan that was originated on or after October 1, 2002 and
      before March 7, 2003, which is secured by property located in the State of
      Georgia;

    

    (yy)
      No
      proceeds from any Mortgage Loan were used to finance single-premium credit
      insurance policies;

    

    (zz)
      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 Mortgagors, 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
      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;

    

    (aaa)
      The methodology used in underwriting the extension of credit for each Mortgage
      Loan employs objective mathematical principles which relate the Mortgagor’s
      income, assets and liabilities (except for any Mortgage Loan which does not
      require statement of income or assets) 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;

     

    (bbb)
      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
      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 loan’s origination, the Mortgagor was offered the option of
      obtaining a mortgage loan that did not require payment of such a premium, (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 Company shall not impose such prepayment
      premium in any instance when the Mortgage is accelerated as the result of the
      Mortgagor’s default in making the loan payments;

     

    (ccc)
      No Mortgagor was required to purchase any credit life, disability, accident
      or
      health insurance product as a condition of obtaining the extension of credit.
      No
      Mortgagor obtained a prepaid single-premium credit life, disability, accident
      or
      health insurance policy in connection with the origination of the Mortgage
      Loan;

     

    (ddd)
      The
      Company will
      transmit full-file credit reporting data for each Mortgage Loan pursuant to
      the
      Fannie Mae Selling Guide and that for each Mortgage Loan, the Company 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;

     

    (eee)
      With
      respect to any Mortgage Loan originated on or after August 1, 2004, neither
      the
      related Mortgage nor the related Mortgage Note requires the Mortgagor to submit
      to arbitration to resolve any dispute arising out of or relating in any way
      to
      the Mortgage Loan;

    

    (fff)
      No Mortgage Loan is secured by Mortgaged Property in the Commonwealth of
      Massachusetts with a loan application date on or after November 7, 2004 that
      refinances a mortgage loan that is less than sixty (60) months old, unless
      such
      Mortgage Loan (1) is on an investment property, (ii) meets the requirements
      set
      forth in the Code of Massachusetts Regulation (“CMR”), 209 CMR 53.04(1)(b), or
      (iii) meets the requirements set forth in the 209 CMR 53.04(1)(c); 

    

    (ggg) 
      For any Mortgage Loan with Mortgaged Property located in Texas which is a second
      lien and the interest rate is in excess of 10% where terms of the Mortgage
      Note
      contain a provision for which the Mortgagor may be entitled to prepaid interest
      upon payoff, no Mortgagor paid any administrative fees, points, or loan
      origination fees which would actually result in any prepaid interest being
      due
      the Mortgagor under the terms of the Mortgage Note; and

     

    (hhh)  
      The Company has 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 Company has
      established an anti-money laundering compliance program as required by the
      Anti-Money Laundering Laws and has conducted the requisite due diligence in
      connection with the origination of each Mortgage Loan for the purposes of the
      Anti-Money Laundering Laws.  The Company further represents that it
      takes reasonable efforts to determine whether any Mortgagor appears on any
      list of blocked or prohibited parties designated by the U.S. Department of
      Treasury.

    

    Section
      3.03 Repurchase;
      Substitution.

    

    It
      is
      understood and agreed that the representations and warranties set forth in
      Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans and delivery
      of the Mortgage Loan Documents to the Purchaser, or its designee, and shall
      inure to the benefit of the Purchaser, notwithstanding any restrictive or
      qualified endorsement on any Mortgage Note or Assignment or the examination,
      or
      lack of examination, of any Mortgage File. Upon discovery by either the Company
      or the Purchaser of a breach of any of the foregoing representations and
      warranties which materially and adversely affects the value of the Mortgage
      Loans or the interest of the Purchaser in any Mortgage Loan, the party
      discovering such breach shall give prompt written notice to the other. The
      Company shall have a period of sixty (60) days from the earlier of its discovery
      or its receipt of notice of any such breach within which to correct or cure
      such
      breach. The Company hereby covenants and agrees that if any such breach is
      not
      corrected or cured within such sixty day period, the Company shall, at the
      Purchaser's option and not later than ninety (90) days of its discovery or
      its
      receipt of notice of such breach, repurchase such Mortgage Loan at the
      Repurchase Price or, with the Purchaser's prior consent and at Purchaser’s sole
      option, substitute a Mortgage Loan as provided below. In the event that any
      such
      breach shall involve any representation or warranty set forth in Section 3.01,
      and such breach is not cured within sixty (60) days of the earlier of either
      discovery by or notice to the Company of such breach, all Mortgage Loans shall,
      at the option of the Purchaser, be repurchased by the Company at the Repurchase
      Price. Any such repurchase shall be accomplished by wire transfer of immediately
      available funds to Purchaser in the amount of the Repurchase Price.

    

    If
      the
      Company is required to repurchase any Mortgage Loan pursuant to this Section
      3.03, the Company may, with the Purchaser's prior consent and at the Purchaser’s
      sole option, within ninety (90) days from the related Closing Date, remove
      such
      defective Mortgage Loan from the terms of this Agreement and substitute another
      mortgage loan for such defective Mortgage Loan, in lieu of repurchasing such
      defective Mortgage Loan. Any substitute Mortgage Loan is subject to the
      Purchaser acceptability. Any substituted Loans will comply with the
      representations and warranties set forth in this Agreement as of the
      substitution date.

    

    The
      Company shall amend the related Mortgage Loan Schedule to reflect the withdrawal
      of the removed Mortgage Loan from this Agreement and the substitution of such
      substitute Mortgage Loan therefor. Upon such amendment, the Purchaser shall
      review the Mortgage File delivered to it relating to the substitute Mortgage
      Loan. In the event of such a substitution, accrued interest on the substitute
      Mortgage Loan for the month in which the substitution occurs and any Principal
      Prepayments made thereon during such month shall be the property of the
      Purchaser and accrued interest for such month on the Mortgage Loan for which
      the
      substitution is made and any Principal Prepayments made thereon during such
      month shall be the property of the Company. The principal payment on a
      substitute Mortgage Loan due on the Due Date in the month of substitution shall
      be the property of the Company and the principal payment on the Mortgage Loan
      for which the substitution is made due on such date shall be the property of
      the
      Purchaser.

    

    For
      any
      month in which the Company is permitted to substitute one or more substitute
      Mortgage Loans, the Company will determine the amount (if any) by which the
      aggregate Stated Principal Balance (after application of the principal portion
      of all scheduled payments due in the month of substitution) of all the
      substitute Mortgage Loans in the month of substitution is less then the
      aggregate Stated Principal Balance (after application of the principal portion
      of the scheduled payment due in the month of substitution) of the such replaced
      Mortgage Loan. An amount equal to the aggregate of such deficiencies described
      in the preceding sentence for any Remittance Date shall be deposited into the
      Custodial Account by the Company on the related Determination Date in the month
      following the calendar month during which the substitution occurred.

    

    It
      is
      understood and agreed that the obligation of the Company set forth in this
      Section 3.03 to cure, repurchase or substitute for a defective Mortgage Loan,
      and to indemnify the Purchaser pursuant to Section 8.01, constitute the sole
      remedies of the Purchaser respecting a breach of the foregoing representations
      and warranties. If the Company fails to repurchase or substitute for a defective
      Mortgage Loan in accordance with this Section 3.03, or fails to cure a defective
      Mortgage Loan to the Purchaser's reasonable satisfaction in accordance with
      this
      Section 3.03, or to indemnify the Purchaser pursuant to Section 8.01, that
      failure shall be an Event of Default and the Purchaser shall be entitled to
      pursue all remedies available in this Agreement as a result thereof. No
      provision of this paragraph shall affect the rights of the Purchaser to
      terminate this Agreement for cause, as set forth in Sections 10.01 and
      11.01.

    

    Any
      cause
      of action against the Company relating to or arising out of the breach of any
      representations and warranties made in Sections 3.01 and 3.02 shall accrue
      as to
      any Mortgage Loan upon (i) the earlier of discovery of such breach by the
      Company or notice thereof by the Purchaser to the Company, (ii) failure by
      the
      Company to cure such breach or repurchase such Mortgage Loan as specified above,
      and (iii) demand upon the Company by the Purchaser for compliance with this
      Agreement.

    

    In
      the
      event that any Mortgage Loan is held by a REMIC, notwithstanding any contrary
      provision of this Agreement, with respect to any Mortgage Loan that is not
      in
      default or as to which no default is imminent, no substitution pursuant to
      Subsection 3.03 shall be made after the applicable REMIC's "start up day" (as
      defined in Section 860G(a) (9) of the Code), unless the Company has obtained
      an
      Opinion of Counsel to the effect that such substitution will not (i) result
      in
      the imposition of taxes on "prohibited transactions" of such REMIC (as defined
      in Section 860F of the Code) or otherwise subject the REMIC to tax, or (ii)
      cause the REMIC to fail to qualify as a REMIC at any time.

    

    Section
      3.04 Representations
      and Warranties of the Purchaser.

     

    The
      Purchaser represents, warrants and covenants to the Company that, as of the
      related Closing Date or as of such date specifically provided
      herein:

    

    (a)  The
      Purchaser is a corporation, dully organized validly existing and in good
      standing under the laws of the State of Delaware and is qualified to transact
      business in, is in good standing under the laws of, and possesses all licenses
      necessary for the conduct of its business in, each state in which any Mortgaged
      Property is located or is otherwise exempt or not required under applicable
      law
      to effect such qualification or license;

    

    (b)  The
      Purchaser has full power and authority to hold each Mortgage Loan, to purchase
      each Mortgage Loan pursuant to this Agreement and the related Term Sheet and
      to
      execute, deliver and perform, and to enter into and consummate all transactions
      contemplated by this Agreement and the related Term Sheet and to conduct its
      business as presently conducted, has duly authorized the execution, delivery
      and
      performance of this Agreement and the related Term Sheet, has duly executed
      and
      delivered this Agreement and the related Term Sheet;

    

    (c) None
      of
      the execution and delivery of this Agreement and the related Term Sheet, the
      purchase of the Mortgage Loans, the consummation of the transactions
      contemplated hereby, or the fulfillment of or compliance with the terms and
      conditions of this Agreement and the related Term Sheet will conflict with
      any
      of the terms, conditions or provisions of the Purchaser’s charter or by-laws or
      materially conflict with or result in a material breach of any of the terms,
      conditions or provisions
      of any legal restriction or any agreement or instrument to which the Purchaser
      is now a party or by which it is bound, or constitute a default or result in
      an
      acceleration under any of the foregoing, or result in the material violation
      of
      any law, rule, regulation, order, judgment or decree to which the Purchaser
      or
      its property is subject;

    

    (d) There
      is
      no litigation, suit, proceeding or investigation pending or to the best of
      the
      Purchaser’s knowledge, threatened against the Purchaser, or any order or decree
      with respect to the Purchaser which is reasonably likely to have a material
      adverse effect on the purchase of the related Mortgage Loans, the execution,
      delivery or enforceability of this Agreement and the related Term Sheet, or
      which is reasonably likely to have a material adverse effect on the financial
      condition of the Purchaser;

    

    (e) No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Purchaser
      of
      or compliance by the Purchaser with this Agreement and the related Term Sheet,
      the purchase of the Mortgage Loans or the consummation of the transactions
      contemplated by this Agreement and the related Term Sheet except for consents,
      approvals, authorizations and orders which have been obtained;

    

    (f) The
      consummation of the transactions contemplated by this Agreement and the related
      Term Sheet is in the ordinary course of business of the Purchaser;

    

    (h) The
      Purchaser will treat the purchase of the Mortgage Loans from the Company as
      a
      purchase for reporting, tax and accounting purposes; and

    

    (i) The
      Purchaser does not believe, nor does it have any cause or reason to believe,
      that it cannot perform each and every of its covenants contained in this
      Agreement and the related Term Sheet.

    

    The
      Purchaser shall indemnify the Company and hold it harmless against any claims,
      proceedings, losses, damages, penalties, fines, forfeitures, reasonable and
      necessary legal fees and related costs, judgments, and other costs and expenses
      resulting from a breach by the Purchaser of the representations and warranties
      contained in this Section 3.04. It is understood and agreed that the obligations
      of the Purchaser set forth in this Section 3.04 to indemnify the Seller as
      provided herein constitute the sole remedies of the Company respecting a breach
      of the foregoing representations and warranties.

    

     

    ARTICLE
      IV

    

    ADMINISTRATION
      AND SERVICING OF MORTGAGE LOANS

    

    Section
      4.01 Company
      to Act as Servicer.

    

    The
      Company, as independent contract servicer, shall service and administer the
      Mortgage Loans in accordance with this Agreement and the related Term Sheet
      and
      with Accepted Servicing Practices, and shall have full power and authority,
      acting alone, to do or cause to be done any and all things in connection with
      such servicing and administration which the Company may deem necessary or
      desirable and consistent with the terms of this Agreement and the related Term
      Sheet and with Accepted Servicing Practices and exercise the same care that
      it
      customarily employs for its own account. Except as set forth in this Agreement
      and the related Term Sheet, the Company shall service the Mortgage Loans in
      strict compliance with the servicing provisions of the Fannie Mae Guides
      (special servicing option), which include, but are not limited to, provisions
      regarding the liquidation of Mortgage Loans, the collection of Mortgage Loan
      payments, the payment of taxes, insurance and other charges, the maintenance
      of
      hazard insurance with a Qualified Insurer, the maintenance of mortgage
      impairment insurance, the maintenance of fidelity bond and errors and omissions
      insurance, inspections, the restoration of Mortgaged Property, the maintenance
      of Primary Mortgage Insurance Policies and Lender Primary Mortgage Insurance
      Policies, insurance claims, the title, management and disposition of REO
      Property, permitted withdrawals with respect to REO Property, liquidation
      reports, and reports of foreclosures and abandonments of Mortgaged Property,
      the
      transfer of Mortgaged Property, the release of Mortgage Files, annual
      statements, and examination of records and facilities. In the event of any
      conflict, inconsistency or discrepancy between any of the servicing provisions
      of this Agreement and the related Term Sheet and any of the servicing provisions
      of the Fannie Mae Guides, the provisions of this Agreement and the related
      Term
      Sheet shall control and be binding upon the Purchaser and the Company.

    

    Consistent
      with the terms of this Agreement and the related Term Sheet, the Company may
      waive, modify or vary any term of any Mortgage Loan or consent to the
      postponement of any such term or in any manner grant indulgence to any Mortgagor
      if in the Company's reasonable and prudent determination such waiver,
      modification, postponement or indulgence is not materially adverse to the
      Purchaser, provided, however, that unless the Company has obtained the prior
      written consent of the Purchaser, the Company shall not permit any modification
      with respect to any Mortgage Loan that would change the Mortgage Interest Rate,
      defer for more than ninety (90) days or forgive any payment of principal or
      interest, reduce or increase the outstanding principal balance (except for
      actual payments of principal) or change the final maturity date on such Mortgage
      Loan. In the event of any such modification which has been agreed to in writing
      by the Purchaser and which permits the deferral of interest or principal
      payments on any Mortgage Loan, the Company shall, on the Business Day
      immediately preceding the Remittance Date in any month in which any such
      principal or interest payment has been deferred, deposit in the Custodial
      Account from its own funds, in accordance with Section 4.04, the difference
      between (a) such month's principal and one month's interest at the Mortgage
      Loan
      Remittance Rate on the unpaid principal balance of such Mortgage Loan and (b)
      the amount paid by the Mortgagor. The Company shall be entitled to reimbursement
      for such advances to the same extent as for all other advances pursuant to
      Section 4.05. Without limiting the generality of the foregoing, the Company
      shall continue, and is hereby authorized and empowered, to prepare, execute
      and
      deliver on behalf of itself and the Purchaser, all instruments of satisfaction
      or cancellation, or of partial or full release, discharge and all other
      comparable instruments, with respect to the Mortgage Loans and with respect
      to
      the Mortgaged Properties. Notwithstanding anything herein to the contrary,
      the
      Company may not enter into a forbearance agreement or similar arrangement with
      respect to any Mortgage Loan which runs more than 180 days after the first
      delinquent Due Date. Any such agreement shall be approved by the Purchaser
      and,
      if required, by the Primary Mortgage Insurance Policy insurer and Lender Primary
      Mortgage Insurance Policy insurer, if required. 

    

    Notwithstanding
      anything in this Agreement to the contrary, if any Mortgage Loan becomes subject
      to a Pass-Through Transfer, the Company (a) with respect to such Mortgage Loan,
      shall not permit any modification with respect to such Mortgage Loan that would
      change the Mortgage Interest Rate and (b) shall not (unless the Mortgagor is
      in
      default with respect to such Mortgage Loan or such default is, in the judgment
      of the Company, reasonably foreseeable) make or permit any modification, waiver
      or amendment of any term of such Mortgage Loan that would both (i) effect an
      exchange or reissuance of such Mortgage Loan under Section 1001 of the Code
      (or
      Treasury regulations promulgated thereunder) and (ii) cause any REMIC to fail
      to
      qualify as a REMIC under the Code or the imposition of any tax on “prohibited
      transactions” or “contributions” after the startup date under the REMIC
      Provisions.

    

    Prior
      to
      taking any action with respect to the Mortgage Loans subject to a Pass-Through
      Transfer, which is not contemplated under the terms of this Agreement, the
      Company will obtain an Opinion of Counsel acceptable to the trustee in such
      Pass-Through Transfer with respect to whether such action could result in the
      imposition of a tax upon any REMIC (including but not limited to the tax on
      prohibited transactions as defined in Section 860F(a)(2) of the Code and the
      tax
      on contributions to a REMIC set forth in Section 860G(d) of the Code)(either
      such event, an “Adverse REMIC Event”), and the Company shall not take any such
      actions as to which it has been advised that an Adverse REMIC Event could
      occur.

    

    The
      Company shall not permit the creation of any “interests” (within the meaning of
      Section 860G of the Code) in any REMIC. The Company shall not enter into any
      arrangement by which a REMIC will receive a fee or other compensation for
      services nor permit a REMIC to receive any income from assets other than
“qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
      investments” as defined in Section 860G(a)(5) of the Code.

    

    In
      servicing and administering the Mortgage Loans, the Company shall employ
      Accepted Servicing Practices, giving due consideration to the Purchaser's
      reliance on the Company. Unless a different time period is stated in this
      Agreement or the related Term Sheet, the Purchaser shall be deemed to have
      given
      consent in connection with a particular matter if the Purchaser does not
      affirmatively grant or deny consent within five (5) Business Days from the
      date
      the Purchaser receives a second written request for consent for such matter
      from
      the Company as servicer. 

    

    The
      Mortgage Loans may be subserviced by a Subservicer on behalf of the Company
      provided that the Subservicer is an entity that engages in the business of
      servicing loans, and in either case shall be authorized to transact business,
      and licensed to service mortgage loans, in the state or states where the related
      Mortgaged Properties it is to service are situated, if and to the extent
      required by applicable law to enable the Subservicer to perform its obligations
      hereunder and under the Subservicing Agreement, and in either case shall be
      a
      FHLMC or Fannie Mae approved mortgage servicer in good standing, and no event
      has occurred, including but not limited to a change in insurance coverage,
      which
      would make it unable to comply with the eligibility requirements for lenders
      imposed by Fannie Mae or for seller/servicers imposed by Fannie Mae or FHLMC,
      or
      which would require notification to Fannie Mae or FHLMC. In addition, each
      Subservicer will obtain and preserve its qualifications to do business as a
      foreign corporation and its licenses to service mortgage loans, in each
      jurisdiction in which such qualifications and/or licenses are or shall be
      necessary to protect the validity and enforceability of this Agreement, or
      any
      of the Mortgage Loans and to perform or cause to be performed its duties under
      the related Subservicing Agreement. The Company may perform any of its servicing
      responsibilities hereunder or may cause the Subservicer to perform any such
      servicing responsibilities on its behalf, but the use by the Company of the
      Subservicer shall not release the Company from any of its obligations hereunder
      and the Company shall remain responsible hereunder for all acts and omissions
      of
      the Subservicer as fully as if such acts and omissions were those of the
      Company. The Company shall pay all fees and expenses of the Subservicer from
      its
      own funds, and the Subservicer's fee shall not exceed the Servicing Fee. The
      Company shall notify the Purchaser promptly in writing upon the appointment
      of
      any Subservicer.

    

    At
      the
      cost and expense of the Company, without any right of reimbursement from the
      Custodial Account, the Company shall be entitled to terminate the rights and
      responsibilities of the Subservicer and arrange for any servicing
      responsibilities to be performed by a successor subservicer meeting the
      requirements in the preceding paragraph; provided, however, that nothing
      contained herein shall be deemed to prevent or prohibit the Company, at the
      Company's option, from electing to service the related Mortgage Loans itself.
      In
      the event that the Company's responsibilities and duties under this Agreement
      are terminated pursuant to Section 4.03, 4.13, 8.04, 9.01 or 10.01 and if
      requested to do so by the Purchaser, the Company shall at its own cost and
      expense terminate the rights and responsibilities of the Subservicer effective
      as of the date of termination of the Company. The Company shall pay all fees,
      expenses or penalties necessary in order to terminate the rights and
      responsibilities of the Subservicer from the Company's own funds without
      reimbursement from the Purchaser.

    

    Notwithstanding
      any of the provisions of this Agreement relating to agreements or arrangements
      between the Company and the Subservicer or any reference herein to actions
      taken
      through the Subservicer or otherwise, the Company shall not be relieved of
      its
      obligations to the Purchaser and shall be obligated to the same extent and
      under
      the same terms and conditions as if it alone were servicing and administering
      the Mortgage Loans. The Company shall be entitled to enter into an agreement
      with the Subservicer for indemnification of the Company by the Subservicer
      and
      nothing contained in this Agreement shall be deemed to limit or modify such
      indemnification. The Company will indemnify and hold the Purchaser harmless
      from
      any loss, liability or expense arising out of its use of a Subservicer to
      perform any of its servicing duties, responsibilities and obligations
      hereunder.

    

    Any
      Subservicing Agreement and any other transactions or services relating to the
      Mortgage Loans involving the Subservicer shall be deemed to be between the
      Subservicer and the Company alone, and the Purchaser shall have no obligations,
      duties or liabilities with respect to the Subservicer including no obligation,
      duty or liability of the Purchaser to pay the Subservicer's fees and expenses.
      For purposes of distributions and advances by the Company pursuant to this
      Agreement, the Company shall be deemed to have received a payment on a Mortgage
      Loan when the Subservicer has received such payment.

    

    Section
      4.02 Collection
      of Mortgage Loan Payments.

    

    Continuously
      from the date hereof until the date each Mortgage Loan ceases to be subject
      to
      this Agreement, the Company will proceed diligently to collect all payments
      due
      under each Mortgage Loan when the same shall become due and payable and shall,
      to the extent such procedures shall be consistent with this Agreement, Accepted
      Servicing Practices, and the terms and provisions of any related Primary
      Mortgage Insurance Policy and Lender Primary Mortgage Insurance Policy, follow
      such collection procedures as it follows with respect to mortgage loans
      comparable to the Mortgage Loans and held for its own account. Further, the
      Company will take special care in ascertaining and estimating annual escrow
      payments, and all other charges that, as provided in the Mortgage, will become
      due and payable, so that the installments payable by the Mortgagors will be
      sufficient to pay such charges as and when they become due and
      payable.

    

    In
      no
      event will the Company waive its right to any prepayment penalty or premium
      without the prior written consent of the Purchaser and the Company will use
      diligent efforts to collect same when due except as otherwise provided in the
      prepayment penalty provisions provided in the Mortgage Loan Documents.

    

    Section
      4.03 Realization
      Upon Defaulted Mortgage.

    

    The
      Company shall use its best efforts, consistent with the procedures that the
      Company would use in servicing loans for its own account, consistent with
      Accepted Servicing Practices, any Primary Mortgage Insurance Policies and Lender
      Primary Mortgage Insurance Policies and the best interest of the Purchaser,
      to
      foreclose upon or otherwise comparably convert the ownership of properties
      securing such of the Mortgage Loans as come into and continue in default and
      as
      to which no satisfactory arrangements can be made for collection of delinquent
      payments pursuant to Section 4.01. Foreclosure or comparable proceedings shall
      be initiated within ninety (90) days of default for Mortgaged Properties for
      which no satisfactory arrangements can be made for collection of delinquent
      payments, subject to state and federal law and regulation. The Company shall
      use
      its best efforts to realize upon defaulted Mortgage Loans in such manner as
      will
      maximize the receipt of principal and interest by the Purchaser, taking into
      account, among other things, the timing of foreclosure proceedings. The
      foregoing is subject to the provisions that, in any case in which a Mortgaged
      Property shall have suffered damage, the Company shall not be required to expend
      its own funds toward the restoration of such property unless it shall determine
      in its discretion (i) that such restoration will increase the proceeds of
      liquidation of the related Mortgage Loan to the Purchaser after reimbursement
      to
      itself for such expenses, and (ii) that such expenses will be recoverable by
      the
      Company through Insurance Proceeds or Liquidation Proceeds from the related
      Mortgaged Property, as contemplated in Section 4.05. The Company shall obtain
      prior approval of the Purchaser as to repair or restoration expenses in excess
      of ten thousand dollars ($10,000). The Company shall notify the Purchaser in
      writing of the commencement of foreclosure proceedings and not less than five
      (5) days prior to the acceptance or rejection of any offer of reinstatement.
      The
      Company shall be responsible for all costs and expenses incurred by it in any
      such proceedings or functions; provided, however, that it shall be entitled
      to
      reimbursement thereof from the related property, as contemplated in Section
      4.05. 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 Company has reasonable cause to believe that a Mortgaged Property is
      contaminated by hazardous or toxic substances or wastes, or if the Purchaser
      otherwise requests an environmental inspection or review of such Mortgaged
      Property, such an inspection or review is to be conducted by a qualified
      inspector at the Purchaser's expense. Upon completion of the inspection, the
      Company shall promptly provide the Purchaser with a written report of the
      environmental inspection. After reviewing the environmental inspection report,
      the Purchaser shall determine how the Company shall proceed with respect to
      the
      Mortgaged Property. 

    

    Notwithstanding
      anything to the contrary contained herein, the Purchaser may, at the Purchaser's
      sole option, terminate the Company as servicer of any Mortgage Loan which
      becomes ninety (90) days or greater delinquent in payment of a scheduled Monthly
      Payment, without payment of any termination fee with respect thereto, provided
      that the Company shall on the date said termination takes effect be reimbursed
      for any unreimbursed Monthly Advances of the Company's funds made pursuant
      to
      Section 5.03 and any unreimbursed Servicing Advances and Servicing Fees in
      each
      case relating to the Mortgage Loan underlying such delinquent Mortgage Loan
      notwithstanding anything to the contrary set forth in Section 4.05. In the
      event
      of any such termination, the provisions of Section 11.01 hereof shall apply
      to
      said termination and the transfer of servicing responsibilities with respect
      to
      such delinquent Mortgage Loan to the Purchaser or its designee.

    

    In
      the
      event that a Mortgage Loan becomes part of a REMIC, and becomes REO Property,
      such property shall be disposed of by the Company, with the consent of the
      Purchaser as required pursuant to this Agreement, before the close of the third
      taxable year following the taxable year in which the Mortgage Loan became an
      REO
      Property, unless the Company provides to the trustee under such REMIC an Opinion
      of Counsel to the effect that the holding of such REO Property subsequent to
      the
      close of the third taxable year following the taxable year in which the Mortgage
      Loan became an REO Property, will not result in the imposition of taxes on
      "prohibited transactions" as defined in Section 860F of the Code, or cause
      the
      transaction to fail to qualify as a REMIC at any time that certificates are
      outstanding. The Company shall manage, conserve, protect and operate each such
      REO Property for the certificateholders solely for the purpose of its prompt
      disposition and sale in a manner which does not cause such property to fail
      to
      qualify as "foreclosure property" within the meaning of Section 860F(a)(2)(E)
      of
      the Code, or any "net income from foreclosure property" which is subject to
      taxation under the REMIC provisions of the Code. Pursuant to its efforts to
      sell
      such property, the Company shall either itself or through an agent selected
      by
      the Company, protect and conserve such property in the same manner and to such
      an extent as is customary in the locality where such property is located.
      Additionally, the Company shall perform the tax withholding and reporting
      related to Sections 1445 and 6050J of the Code.

    

    Section
      4.04 Establishment
      of Custodial Accounts; Deposits in Custodial Accounts.

    

    The
      Company shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan separate and apart from any of its own funds and general
      assets and shall establish and maintain one or more Custodial Accounts. The
      Custodial Account shall be an Eligible Account. Funds shall be deposited in
      the
      Custodial Account within twenty-four (24) hours of receipt, and shall at all
      times be insured by the FDIC up to the FDIC insurance limits, or must be
      invested in Permitted Investments for the benefit of the Purchaser. Funds
      deposited in the Custodial Account may be drawn on by the Company in accordance
      with Section 4.05. The creation of any Custodial Account shall be evidenced
      by a
      letter agreement in the form shown in Exhibit
      B
      hereto.
      The original of such letter agreement shall be furnished to the Purchaser on
      the
      Closing Date, and upon the request of any subsequent Purchaser.

    

    The
      Company shall deposit in the Custodial Account on a daily basis, and retain
      therein the following payments and collections received or made by it subsequent
      to the Cut-off Date, or received by it prior to the Cut-off Date but allocable
      to a period subsequent thereto, other than in respect of principal and interest
      on the Mortgage Loans due on or before the Cut-off Date:

    

    (i) all
      payments on account of principal, including Principal Prepayments, on the
      Mortgage Loans;

    

    (ii)
       all
      payments on account of interest on the Mortgage Loans adjusted to the Mortgage
      Loan Remittance Rate;

    

    (iii)
       all
      Liquidation Proceeds;

    

    (iv)
       any
      amounts required to be deposited by the Company in connection with any REO
      Property pursuant to Section 4.13 and in connection therewith, the Company
      shall
      provide the Purchaser with written detail itemizing all of such
      amounts;

    

    (v)
       all
      Insurance Proceeds including amounts required to be deposited pursuant to
      Sections 4.08, 4.10 and 4.11, other than proceeds to be held in the Escrow
      Account and applied to the restoration or repair of the Mortgaged Property
      or
      released to the Mortgagor in accordance with Accepted Servicing Practices,
      the
      Mortgage Loan Documents or applicable law;

    

    (vi)
       all
      Condemnation Proceeds affecting any Mortgaged Property which are not released
      to
      the Mortgagor in accordance with Accepted Servicing Practices, the loan
      documents or applicable law;

    

    (vii)
       any
      Monthly Advances;

    

    (viii)
       with
      respect to each full or partial Principal Prepayment, any Prepayment Interest
      Shortfalls, to the extent of the Company’s aggregate Servicing Fee received with
      respect to the related Prepayment Period;

    

    (ix)
       any
      amounts required to be deposited by the Company pursuant to Section 4.10 in
      connection with the deductible clause in any blanket hazard insurance policy,
      such deposit shall be made from the Company's own funds, without reimbursement
      therefor; and

    

    (x)
       any
      amounts required to be deposited in the Custodial Account pursuant to Section
      4.01, 4.13 or 6.02.

    

    The
      foregoing requirements for deposit in the Custodial 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 and assumption fees,
      to the extent permitted by Section 6.01, need not be deposited by the Company
      in
      the Custodial Account. Any interest paid on funds deposited in the Custodial
      Account by the depository institution shall accrue to the benefit of the Company
      and the Company shall be entitled to retain and withdraw such interest from
      the
      Custodial Account pursuant to Section 4.05(iv). The Purchaser shall not be
      responsible for any losses suffered with respect to investment of funds in
      the
      Custodial Account.

    

    Section
      4.05 Permitted
      Withdrawals From the Custodial Account.

    

    The
      Company may, from time to time, withdraw from the Custodial Account for the
      following purposes:

    

    (i) to
      make
      payments to the Purchaser in the amounts and in the manner provided for in
      Section 5.01;

    

    (ii)
      to
      reimburse itself for Monthly Advances, the Company's right to reimburse itself
      pursuant to this subclause (ii) being limited to amounts received on the related
      Mortgage Loan which represent late collections (net of the related Servicing
      Fees) of principal and/or interest respecting which any such advance was made,
      it being understood that, in the case of such reimbursement, the Company's
      right
      thereto shall be prior to the rights of the Purchaser, except that, where the
      Company is required to repurchase a Mortgage Loan, pursuant to Section 3.03,
      the
      Company's right to such reimbursement shall be subsequent to the payment to
      the
      Purchaser of the Repurchase Price pursuant to such Section and all other amounts
      required to be paid to the Purchaser with respect to such Mortgage
      Loan;

    

    (iii)
      to
      reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing
      Fees (or REO administration fees described in Section 4.13), the Company's
      right
      to reimburse itself pursuant to this subclause (iii) with respect to any
      Mortgage Loan being limited to related proceeds from Liquidation Proceeds,
      Condemnation Proceeds and Insurance Proceeds in accordance with the relevant
      provisions of the Fannie Mae Guides or as otherwise set forth in this Agreement;
      any recovery shall be made upon liquidation of the REO Property; 

    

    (iv) to
      pay to
      itself as part of its servicing compensation (a) any interest earned on funds
      in
      the Custodial Account (all such interest to be withdrawn monthly not later
      than
      each Remittance Date), and (b) the Servicing Fee from that portion of any
      payment or recovery as to interest with respect to a particular Mortgage
      Loan;

    

    (v) to
      pay to
      itself with respect to each Mortgage Loan that has been repurchased pursuant
      to
      Section 3.03 all amounts received thereon and not distributed as of the date
      on
      which the related Repurchase Price is determined,

    

    (vi) to
      transfer funds to another Eligible Account in accordance with Section 4.09
      hereof;

    

    (vii) to
      remove
      funds inadvertently placed in the Custodial Account by the Company;

    

    (vi) to
      clear
      and terminate the Custodial Account upon the termination of this Agreement;
      and

    

    (vii)
      to
      reimburse itself for Nonrecoverable Advances to the extent not reimbursed
      pursuant to clause (ii) or clause (iii).

    

    Section
      4.06 Establishment
      of Escrow Accounts; Deposits in Escrow Accounts.

    

    The
      Company shall segregate and hold all funds collected and received pursuant
      to
      each Mortgage Loan which constitute Escrow Payments separate and apart from
      any
      of its own funds and general assets and shall establish and maintain one or
      more
      Escrow Accounts. The Escrow Account shall be an Eligible Account. Funds
      deposited in each Escrow Account shall at all times be insured in a manner
      to
      provide maximum insurance under the insurance limitations of the FDIC, or must
      be invested in Permitted Investments. Funds
      deposited in the Escrow Account may be drawn on by the Company in accordance
      with Section 4.07. The creation of any Escrow Account shall be evidenced by
      a
      letter agreement in the form shown in Exhibit
      C.
      The
      original of such letter agreement shall be furnished to the Purchaser on the
      Closing Date, and upon request to any subsequent purchaser.

    

    The
      Company shall deposit in the Escrow Account or Accounts on a daily basis, and
      retain therein:

    

    (i) all
      Escrow Payments collected on account of the Mortgage Loans, for the purpose
      of
      effecting timely payment of any such items as required under the terms of this
      Agreement;

    

    (ii) all
      Insurance Proceeds which are to be applied to the restoration or repair of
      any
      Mortgaged Property; and

    

    (iii) all
      Servicing Advances for Mortgagors whose Escrow Payments are insufficient to
      cover escrow disbursements.

    

    The
      Company shall make withdrawals from the Escrow Account only to effect such
      payments as are required under this Agreement, and for such other purposes
      as
      shall be as set forth or in accordance with Section 4.07. The Company shall
      be
      entitled to retain any interest paid on funds deposited in the Escrow Account
      by
      the depository institution other than interest on escrowed funds required by
      law
      to be paid to the Mortgagor and, to the extent required by law, the Company
      shall pay interest on escrowed funds to the Mortgagor notwithstanding that
      the
      Escrow Account is non-interest bearing or that interest paid thereon is
      insufficient for such purposes. The
      Purchaser shall not be responsible for any losses suffered with respect to
      investment of funds in the Escrow Account.

    

    Section
      4.07 Permitted
      Withdrawals From Escrow Account.

    

    Withdrawals
      from the Escrow Account may be made by the Company only:

    

    (i) to
      effect
      timely payments of ground rents, taxes, assessments, water rates, Primary
      Mortgage Insurance Policy premiums, if applicable, fire and hazard insurance
      premiums, condominium assessments and comparable items;

    

    (ii) to
      reimburse the Company for any Servicing Advance made by the Company with respect
      to a related Mortgage Loan but only from amounts received on the related
      Mortgage Loan which represent late payments or collections of Escrow Payments
      thereunder;

    

    (iii) to
      refund
      to the Mortgagor any funds as may be determined to be overages;

    

    (iv) for
      transfer to the Custodial Account in accordance with the terms of this
      Agreement;

    

    (v) for
      application to restoration or repair of the Mortgaged Property;

    

    (vi) to
      pay to
      the Company, or to the Mortgagor to the extent required by law, any interest
      paid on the funds deposited in the Escrow Account;

    

    (vii)
       to
      clear
      and terminate the Escrow Account on the termination of this
      Agreement;

    

    (viii)
       to
      pay to
      the Mortgagors or other parties Insurance Proceeds deposited in accordance
      with
      Section 4.06; and

    

    
      (viii)to
        remove
        funds inadvertently placed in the Escrow Account by the
        Company.

    

    

    Section
      4.08 Payment
      of Taxes, Insurance and Other Charges; Maintenance of Primary Mortgage Insurance
      Policies; Collections Thereunder.

     

    With
      respect to each Mortgage Loan, the Company shall maintain accurate records
      reflecting the status of ground rents, taxes, assessments, water rates and
      other
      charges which are or may become a lien upon the Mortgaged Property and the
      status of primary mortgage insurance premiums and fire and hazard insurance
      coverage and shall obtain, from time to time, all bills for the payment of
      such
      charges, including renewal premiums and shall effect payment thereof prior
      to
      the applicable penalty or termination date and at a time appropriate for
      securing maximum discounts allowable, employing for such purpose deposits of
      the
      Mortgagor in the Escrow Account which shall have been estimated and accumulated
      by the Company in amounts sufficient for such purposes, as allowed under the
      terms of the Mortgage or applicable law. To the extent that the Mortgage does
      not provide for Escrow Payments, the Company shall determine that any such
      payments are made by the Mortgagor at the time they first become due. The
      Company assumes full responsibility for the timely payment of all such bills
      and
      shall effect timely 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.

    

    The
      Company will maintain in full force and effect Primary Mortgage Insurance
      Policies or Lender Primary Mortgage Insurance Policies issued by a Qualified
      Insurer with respect to each Mortgage Loan for which such coverage is herein
      required. Such coverage will be terminated only with the approval of the
      Purchaser, until the LTV of the related Mortgage Loan is reduced to that amount
      for which Fannie Mae no longer requires such insurance to be maintained, or
      as
      required by applicable law or regulation. The Company will not cancel or refuse
      to renew any Primary Mortgage Insurance Policy or Lender Primary Mortgage
      Insurance Policy in effect on the Closing Date that is required to be kept
      in
      force under this Agreement unless a replacement Primary Mortgage Insurance
      Policy or Lender Primary Mortgage Insurance Policy for such canceled or
      nonrenewed policy is obtained from and maintained with a Qualified Insurer.
      The
      Company shall not take any action which would result in non-coverage under
      any
      applicable Primary Mortgage Insurance Policy or Lender Primary Mortgage
      Insurance Policy of any loss which, but for the actions of the Company would
      have been covered thereunder. In connection with any assumption or substitution
      agreement entered into or to be entered into pursuant to Section 6.01, the
      Company shall promptly notify the insurer under the related Primary Mortgage
      Insurance Policy or Lender Primary Mortgage Insurance Policy, if any, of such
      assumption or substitution of liability in accordance with the terms of such
      policy and shall take all actions which may be required by such insurer as
      a
      condition to the continuation of coverage under the Primary Mortgage Insurance
      Policy or Lender Primary Mortgage Insurance Policy. If such Primary Mortgage
      Insurance Policy or Lender Primary Mortgage Insurance Policy is terminated
      as a
      result of such assumption or substitution of liability, the Company shall obtain
      a replacement Primary Mortgage Insurance Policy or Lender Primary Mortgage
      Insurance Policy as provided above.

    

    In
      connection with its activities as servicer, the Company agrees to prepare and
      present, on behalf of itself and the Purchaser, claims to the insurer under
      any
      Private Mortgage Insurance Policy in a timely fashion in accordance with the
      terms of such Primary Mortgage Insurance Policy or Lender Primary Mortgage
      Insurance Policy and, in this regard, to take such action as shall be necessary
      to permit recovery under any Primary Mortgage Insurance Policy or Lender Primary
      Mortgage Insurance Policy respecting a defaulted Mortgage Loan. Pursuant to
      Section 4.04, any amounts collected by the Company under any Primary Mortgage
      Insurance Policy or Lender Primary Mortgage Insurance Policy shall be deposited
      in the Custodial Account, subject to withdrawal pursuant to Section
      4.05.

    

    Section
      4.09 Transfer
      of Accounts.

    

    The
      Company may transfer the Custodial Account or the Escrow Account to a different
      Eligible Account from time to time. Such transfer shall be made only upon
      obtaining the prior written consent of the Purchaser, which consent will not
      be
      unreasonably withheld.

    

    Section
      4.10 Maintenance
      of Hazard Insurance.

    

    The
      Company shall cause to be maintained for each Mortgage Loan fire and hazard
      insurance with extended coverage as is acceptable to Fannie Mae or FHLMC and
      customary in the area where the Mortgaged Property is located in an amount
      which
      is equal to the greater of (a) the outstanding principal balance of the Mortgage
      Loan, and (b) an amount such that the proceeds thereof shall be sufficient
      to
      prevent the Mortgagor and/or the mortgagee from becoming a co-insurer. If
      required by the Flood Disaster Protection Act of 1973, as amended, each Mortgage
      Loan shall be covered by a flood insurance policy meeting the requirements
      of
      the current guidelines of the Federal Insurance Administration in effect with
      an
      insurance carrier acceptable to Fannie Mae or FHLMC, in an amount representing
      coverage not less than the lesser of (i) the outstanding principal balance
      of
      the Mortgage Loan, (ii) the maximum insurable value of the improvements securing
      such Mortgage Loan or (iii) the maximum amount of insurance which is available
      under the Flood Disaster Protection Act of 1973, as amended. If at any time
      during the term of the Mortgage Loan, the Company determines in accordance
      with
      applicable law and pursuant to the Fannie Mae Guides that a Mortgaged Property
      is located in a special flood hazard area and is not covered by flood insurance
      or is covered in an amount less than the amount required by the Flood Disaster
      Protection Act of 1973, as amended, the Company shall notify the related
      Mortgagor that the Mortgagor must obtain such flood insurance coverage, and
      if
      said Mortgagor fails to obtain the required flood insurance coverage within
      forty-five (45) days after such notification, the Company shall immediately
      force place the required flood insurance on the Mortgagor’s behalf. The Company
      shall also maintain on each REO Property, fire and hazard insurance with
      extended coverage in an amount which is at least equal to the maximum insurable
      value of the improvements which are a part of such property, and, to the extent
      required and available under the Flood Disaster Protection Act of 1973, as
      amended, flood insurance in an amount as provided above. Any amounts collected
      by the Company under any such policies other than amounts to be deposited in
      the
      Escrow Account and applied to the restoration or repair of the Mortgaged
      Property or REO Property, or released to the Mortgagor in accordance with
      Accepted Servicing Practices, shall be deposited in the Custodial Account,
      subject to withdrawal pursuant to Section 4.05. It is understood and agreed
      that
      no other additional insurance need be required by the Company of the Mortgagor
      or maintained on property acquired in respect of the Mortgage Loan, other than
      pursuant to this Agreement, the Fannie Mae Guides or such applicable state
      or
      federal laws and regulations as shall at any time be in force and as shall
      require such additional insurance. All such policies shall be endorsed with
      standard mortgagee clauses with loss payable to the Company and its successors
      and/or assigns and shall provide for at least thirty (30) days prior written
      notice of any cancellation, reduction in the amount or material change in
      coverage to the Company. The Company shall not interfere with the Mortgagor's
      freedom of choice in selecting either his insurance carrier or agent; provided,
      however, that the Company shall not accept any such insurance policies from
      insurance companies unless such companies are Qualified Insurers.

    

    Section
      4.11 Maintenance
      of Mortgage Impairment Insurance Policy.

    

    In
      the
      event that the Company shall obtain and maintain a blanket policy issued by
      a
      Qualified Insurer insuring against hazard losses on all of the Mortgage Loans,
      then, to the extent such policy provides coverage in an amount equal to the
      amount required pursuant to Section 4.10 and otherwise complies with all other
      requirements of Section 4.10, it shall conclusively be deemed to have satisfied
      its obligations as set forth in Section 4.10, it being understood and agreed
      that such policy may contain a deductible clause, in which case the Company
      shall, in the event that there shall not have been maintained on the related
      Mortgaged Property or REO Property a policy complying with Section 4.10, and
      there shall have been a loss which would have been covered by such policy,
      deposit in the Custodial Account the amount not otherwise payable under the
      blanket policy because of such deductible clause. In connection with its
      activities as servicer of the Mortgage Loans, the Company agrees to prepare
      and
      present, on behalf of the Purchaser, claims under any such blanket policy in
      a
      timely fashion in accordance with the terms of such policy. Upon request of
      the
      Purchaser, the Company shall cause to be delivered to the Purchaser a certified
      true copy of such policy and shall use its best efforts to obtain a statement
      from the insurer thereunder that such policy shall in no event be terminated
      or
      materially modified without thirty (30) days' prior written notice to the
      Purchaser.

    

    Section
      4.12 Fidelity
      Bond, Errors and Omissions Insurance.

    

    The
      Company shall maintain, at its own expense, a blanket fidelity bond and an
      errors and omissions insurance policy, with broad coverage with responsible
      companies on all officers, employees or other persons acting in any capacity
      with regard to the Mortgage Loan to handle funds, money, documents and papers
      relating to the Mortgage Loan. The Fidelity Bond shall be in the form of the
      Financial Institution Bond Form A and shall protect and insure the Company
      against losses, including forgery, theft, embezzlement and fraud of such
      persons. The errors and omissions insurance shall protect and insure the Company
      against losses arising out of errors and omissions and negligent acts of such
      persons. Such errors and omissions insurance shall also protect and insure
      the
      Company against losses in connection with the failure to maintain any insurance
      policies required pursuant to this Agreement and the release or satisfaction
      of
      a Mortgage Loan without having obtained payment in full of the indebtedness
      secured thereby. No provision of this Section 4.12 requiring the Fidelity Bond
      or errors and omissions insurance shall diminish or relieve the Company from
      its
      duties and obligations as set forth in this Agreement. The minimum coverage
      under any such bond and insurance policy shall be at least equal to the
      corresponding amounts required by Fannie Mae in the Fannie Mae Guides. Upon
      request by the Purchaser, the Company shall deliver to the Purchaser a
      certificate from the surety and the insurer as to the existence of the Fidelity
      Bond and errors and omissions insurance policy and shall obtain a statement
      from
      the surety and the insurer that such Fidelity Bond or insurance policy shall
      in
      no event be terminated or materially modified without thirty (30) days' prior
      written notice to the Purchaser. The Company shall notify the Purchaser within
      five (5) business days of receipt of notice that such Fidelity Bond or insurance
      policy will be, or has been, materially modified or terminated. Upon request
      by
      the Purchaser, the Company shall provide the Purchaser with an insurance
      certificate certifying coverage under this Section 4.12, and will provide an
      update to such certificate upon request, or upon renewal or material
      modification of coverage.

    

    Section
      4.13 Title,
      Management and Disposition of REO Property.

    

    In
      the
      event that title to the Mortgaged Property is acquired in foreclosure or by
      deed
      in lieu of foreclosure, the deed or certificate of sale shall be taken in the
      name of the Purchaser or its designee, or in the event the Purchaser or its
      designee is not authorized or permitted to hold title to real property in the
      state where the REO Property is located, or would be adversely affected under
      the "doing business" or tax laws of such state by so holding title, the deed
      or
      certificate of sale shall be taken in the name of such Person or Persons as
      shall be consistent with an Opinion of Counsel obtained by the Company from
      an
      attorney duly licensed to practice law in the state where the REO Property
      is
      located. Any Person or Persons holding such title other than the Purchaser
      shall
      acknowledge in writing that such title is being held as nominee for the benefit
      of the Purchaser.

    

    The
      Company shall notify the Purchaser in accordance with the Fannie Mae Guides
      of
      each acquisition of REO Property upon such acquisition (and, in any event,
      shall
      provide notice of the consummation of any foreclosure sale within three (3)
      Business Days of the date the Company receives notice of such consummation),
      together with a copy of the drive by appraisal or brokers price opinion of
      the
      Mortgaged Property obtained in connection with such acquisition, and thereafter
      assume the responsibility for marketing such REO property in accordance with
      Accepted Servicing Practices. Thereafter, the Company shall continue to provide
      certain administrative services to the Purchaser relating to such REO Property
      as set forth in this Section 4.13. No Servicing Fee shall be assessed or
      otherwise accrue on any REO Property from and after the date on which it becomes
      an REO Property. 

    

    The
      Company shall, either itself or through an agent selected by the Company, and
      in
      accordance with the Fannie Mae Guides manage, conserve, protect and operate
      each
      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
      Company shall cause each REO Property to be inspected promptly upon the
      acquisition of title thereto and shall cause each REO Property to be inspected
      at least monthly thereafter or more frequently as required by the circumstances.
      The Company shall make or cause to be made a written report of each such
      inspection. Such reports shall be retained in the Mortgage File and copies
      thereof shall be forwarded by the Company to the Purchaser.

    

    The
      Company shall use its best efforts to dispose of the REO Property as soon as
      possible and shall sell such REO Property in any event within three (3) years
      after title has been taken to such REO Property. No REO Property shall be
      marketed for less than the Appraised Value, without the prior consent of the
      Purchaser. No REO Property shall be sold for less than ninety-five percent
      (95%)
      of its Appraised Value, without the prior consent of Purchaser. All requests
      for
      reimbursement of Servicing Advances shall be in accordance with the Fannie
      Mae
      Guides. The disposition of REO Property shall be carried out by the Company
      at
      such price, and upon such terms and conditions, as the Company deems to be
      in
      the best interests of the Purchaser (subject to the above conditions) only
      with
      the prior written consent of the Purchaser. The Company shall provide monthly
      reports to the Purchaser in reference to the status of the marketing of the
      REO
      Properties.

    

    Notwithstanding
      anything to the contrary contained herein, the Purchaser may, at the Purchaser's
      sole option, terminate the Company as servicer of any such REO Property without
      payment of any termination fee with respect thereto; provided that the Company
      shall on the date said termination takes effect be reimbursed for any
      unreimbursed advances of the Company's funds made pursuant to Section 5.03
      and
      any unreimbursed Servicing Advances and Servicing Fees in each case relating
      to
      the Mortgage Loan underlying such REO Property notwithstanding anything to
      the
      contrary set forth in Section 4.05. In the event of any such termination, the
      provisions of Section 11.01 hereof shall apply to said termination and the
      transfer of servicing responsibilities with respect to such REO Property to
      the
      Purchaser or its designee. Within five (5) Business Days of any such
      termination, the Company shall, if necessary convey such property to the
      Purchaser and shall further provide the Purchaser with the following information
      regarding the subject REO Property: the related drive by appraisal or brokers
      price opinion, and copies of any related Mortgage Impairment Insurance Policy
      claims. In addition, within five (5) Business Days, the Company shall provide
      the Purchaser with the following information and documents regarding the subject
      REO Property: the related trustee’s deed upon sale and copies of any related
      hazard insurance claims, or repair bids.

    

    Section
      4.14 Notification
      of Maturity Date.

    

    With
      respect to each Mortgage Loan, the Company shall execute and deliver to the
      Mortgagor any and all necessary notices required under applicable law and the
      terms of the related Mortgage Note and Mortgage regarding the maturity date
      if
      required under applicable law.

     

     

    ARTICLE
      V

    

    PAYMENTS
      TO THE PURCHASER

    

    Section
      5.01 Distributions.

    

    On
      each
      Remittance Date, the Company shall distribute by wire transfer of immediately
      available funds to the Purchaser (i) all amounts credited to the Custodial
      Account as of the close of business on the preceding Determination Date, net
      of
      charges against or withdrawals from the Custodial Account pursuant to Section
      4.05, plus (ii) all Monthly Advances, if any, which the Company is obligated
      to
      distribute pursuant to Section 5.03, plus, (iii) interest at the Mortgage Loan
      Remittance Rate on any Principal Prepayment from the date of such Principal
      Prepayment through the end of the month for which disbursement is made provided
      that the Company’s obligation as to payment of such interest shall be limited to
      the Servicing Fee earned during the month of the distribution, minus (iv) any
      amounts attributable to Monthly Payments collected but due on a Due Date or
      Dates subsequent to the preceding Determination Date, which amounts shall be
      remitted on the Remittance Date next succeeding the Due Period for such amounts.
      It is understood that, by operation of Section 4.04, the remittance on the
      First
      Remittance Date with respect to Mortgage Loans purchased pursuant to the related
      Term Sheet is to include principal collected after the Cut-off Date through
      the
      preceding Determination Date plus interest, adjusted to the Mortgage Loan
      Remittance Rate collected through such Determination Date exclusive of any
      portion thereof allocable to the period prior to the Cut-off Date, with the
      adjustments specified in clauses (ii), (iii) and (iv) above.

    

    With
      respect to any remittance received by the Purchaser after the Remittance Date,
      the Company shall pay to the Purchaser interest on any such late payment at
      an
      annual rate equal to the Prime Rate, adjusted as of the date of each change,
      plus three (3) percentage points, but in no event greater than the maximum
      amount permitted by applicable law. Such interest shall cover the period
      commencing with the day following the Business Day such payment was due and
      ending with the Business Day on which such payment is made to the Purchaser,
      both inclusive. The payment by the Company of any such interest shall not be
      deemed an extension of time for payment or a waiver of any Event of Default
      by
      the Company. On each Remittance Date, the Company shall provide a remittance
      report detailing all amounts being remitted pursuant to this Section
      5.01.

    

    Section
      5.02 Statements
      to the Purchaser.

    

    The
      Company shall furnish to the Purchaser an individual loan accounting report,
      as
      of the last Business Day of each month, in the Company's assigned loan number
      order to document Mortgage Loan payment activity on an individual Mortgage
      Loan
      basis. With respect to each month, the corresponding individual loan accounting
      report shall be received by the Purchaser no later than the fifth Business
      Day
      of the following month on a disk or tape or other computer-readable format
      in
      such format as may be mutually agreed upon by both the Purchaser and the
      Company, and no later than the fifth Business Day of the following month in
      hard
      copy, and shall contain the following:

    

    (i)
      With
      respect to each Monthly Payment, the amount of such remittance allocable to
      principal (including a separate breakdown of any Principal Prepayment, including
      the date of such prepayment, and any prepayment penalties or premiums, along
      with a detailed report of interest on principal prepayment amounts remitted
      in
      accordance with Section 4.04);

    

    (ii)
      with
      respect to each Monthly Payment, the amount of such remittance allocable to
      interest;

    

    (iii)
      the
      amount of servicing compensation received by the Company during the prior
      distribution period;

    

    (iv)
      the
      aggregate Stated Principal Balance of the Mortgage Loans;

    

    (v)
      the
      aggregate of any expenses reimbursed to the Company during the prior
      distribution period pursuant to Section 4.05; and

    

    (vi)
      The
      number and aggregate outstanding principal balances of Mortgage Loans (a)
      delinquent (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 days or more; (b) as
      to
      which foreclosure has commenced; and (c) as to which REO Property has been
      acquired.

    

    The
      Company shall also provide a trial balance, sorted in the Purchaser's assigned
      loan number order, in the form of Exhibit
      E
      hereto,
      with each such Report.

    

    The
      Company shall prepare and file any and all information statements or other
      filings required to be delivered to any governmental taxing authority or to
      the
      Purchaser pursuant to any applicable law with respect to the Mortgage Loans
      and
      the transactions contemplated hereby. In addition, the Company shall provide
      the
      Purchaser with such information concerning the Mortgage Loans as is necessary
      for the Purchaser to prepare its federal income tax return as the Purchaser
      may
      reasonably request from time to time.

    

    In
      addition, not more than ninety (90) days after the end of each calendar year,
      the Company shall furnish to each Person who was a Purchaser at any time during
      such calendar year an annual statement in accordance with the requirements
      of
      applicable federal income tax law as to the aggregate of remittances for the
      applicable portion of such year.

    

    Section
      5.03 Monthly
      Advances by the Company.

    

    Not
      later
      than the close of business on the Business Day preceding each Remittance Date,
      the Company shall deposit in the Custodial Account an amount equal to all
      payments not previously advanced by the Company, whether or not deferred
      pursuant to Section 4.01, of principal (due after the Cut-off Date) and interest
      not allocable to the period prior to the Cut-off Date, adjusted to the Mortgage
      Loan Remittance Rate, which were due on a Mortgage Loan and delinquent at the
      close of business on the related Determination Date.

    

    The
      Company's obligation to make such Monthly Advances as to any Mortgage Loan
      will
      continue through the last Monthly Payment due prior to the payment in full
      of
      the Mortgage Loan, or through the Remittance Date prior to the date on which
      the
      Mortgaged Property liquidates (including Insurance Proceeds, proceeds from
      the
      sale of REO Property or Condemnation Proceeds) with respect to the Mortgage
      Loan
      unless the Company deems such advance to be a Nonrecoverable Advance. In such
      event, the Company shall deliver to the Purchaser an Officer's Certificate
      of
      the Company to the effect that an officer of the Company has reviewed the
      related Mortgage File and has made the reasonable determination that any
      additional advances are nonrecoverable. 

    

    Section
      5.04 Liquidation
      Reports.

    

    Upon
      the
      foreclosure sale of any Mortgaged Property or the acquisition thereof by the
      Purchaser pursuant to a deed-in-lieu of foreclosure, the Company shall submit
      to
      the Purchaser a liquidation report with respect to such Mortgaged Property
      in a
      form mutually acceptable to the
      Company
      and the Purchaser. The Company shall also provide reports on the status of
      REO
      Property containing such information as the Purchaser may reasonably
      require.

    

    ARTICLE
      VI

    

    GENERAL
      SERVICING PROCEDURES

    

    Section
      6.01 Assumption
      Agreements.

    

    The
      Company will, to the extent it has knowledge of any conveyance or prospective
      conveyance by any Mortgagor of the Mortgaged Property (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 any "due-on-sale"
      clause to the extent permitted by law; provided, however, that the Company
      shall
      not exercise any such rights if prohibited by law or the terms of the Mortgage
      Note from doing so or if the exercise of such rights would impair or threaten
      to
      impair any recovery under the related Primary Mortgage Insurance Policy or
      Lender Primary Mortgage Insurance Policy, if any. If the Company reasonably
      believes it is unable under applicable law to enforce such "due-on-sale" clause,
      the Company, will enter into an assumption agreement with the person to whom
      the
      Mortgaged 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. Where
      an assumption is allowed pursuant to this Section 6.01, the Company, with the
      prior consent of the Purchaser and the primary mortgage insurer, if any, is
      authorized to enter into a substitution of liability agreement with the person
      to whom the Mortgaged Property has been conveyed or is proposed to be conveyed
      pursuant to which the original mortgagor is released from liability and such
      Person is substituted as mortgagor and becomes liable under the related Mortgage
      Note. Any such substitution of liability agreement shall be in lieu of an
      assumption agreement. 

    

    In
      connection with any such assumption or substitution of liability, the Company
      shall follow the underwriting practices and procedures of the Company. With
      respect to an assumption or substitution of liability, the Mortgage Interest
      Rate borne by the related Mortgage Note, the amount of the Monthly Payment
      and
      the maturity date may not be changed (except pursuant to the terms of the
      Mortgage Note). If the credit of the proposed transferee does not meet such
      underwriting criteria, the Company diligently shall, to the extent permitted
      by
      the Mortgage or the Mortgage Note and by applicable law, accelerate the maturity
      of the Mortgage Loan. The Company shall notify the Purchaser that any such
      substitution of liability or assumption agreement has been completed by
      forwarding to the Purchaser the original of any such substitution of liability
      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. All fees collected by the Company for entering into an assumption
      or
      substitution of liability agreement shall belong to the Company.

    

    Notwithstanding
      the foregoing paragraphs of this Section or any other provision of this
      Agreement, the Company 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 any assumption which the Company may be restricted
      by law from preventing, for any reason whatsoever. For purposes of this Section
      6.01, 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
      6.02 Satisfaction
      of Mortgages and Release of Mortgage Files.

    

    Upon
      the
      payment in full of any Mortgage Loan, or the receipt by the Company of a
      notification that payment in full will be escrowed in a manner customary for
      such purposes, the Company will immediately notify the Purchaser 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 Custodial Account pursuant to Section 4.04
      have
      been or will be so deposited, of a Servicing Officer and shall request execution
      of any document necessary to satisfy the Mortgage Loan and delivery to it of
      the
      portion of the Mortgage File held by the Purchaser or its designee. The
      Purchaser shall no later than five (5) Business Days after receipt of such
      certification and request, release or cause to be released to the Company,
      the
      related Mortgage Loan Documents and, upon its receipt of such documents, the
      Company shall promptly prepare and deliver to the Purchaser the requisite
      satisfaction or release. No later than five (5) Business Days following its
      receipt of such satisfaction or release, the Purchaser shall deliver, or cause
      to be delivered, to the Company the release or satisfaction properly executed
      by
      the owner of record of the applicable mortgage or its duly appointed attorney
      in
      fact. No expense incurred in connection with any instrument of satisfaction
      or
      deed of reconveyance shall be chargeable to the Custodial Account.

    

    In
      the
      event the Company satisfies or releases a Mortgage without having obtained
      payment in full of the indebtedness secured by the Mortgage or should it
      otherwise prejudice any right the Purchaser may have under the mortgage
      instruments, the Company, upon written demand, shall remit within two (2)
      Business Days to the Purchaser the then outstanding principal balance of the
      related Mortgage Loan by deposit thereof in the Custodial Account. The Company
      shall maintain the Fidelity Bond and errors and omissions insurance insuring
      the
      Company against any loss it may sustain with respect to any Mortgage Loan not
      satisfied in accordance with the procedures set forth herein.

    

    From
      time
      to time and as appropriate for the servicing or foreclosure of the Mortgage
      Loan, including for the purpose of collection under any Primary Mortgage
      Insurance Policy or Lender Primary Mortgage Insurance Policy, the Purchaser
      shall, upon request of the Company and delivery to the Purchaser of a servicing
      receipt signed by a Servicing Officer, release the portion of the Mortgage
      File
      held by the Purchaser to the Company. Such servicing receipt shall obligate
      the
      Company to return the related Mortgage documents to the Purchaser when the
      need
      therefor by the Company no longer exists, unless the Mortgage Loan has been
      liquidated and the Liquidation Proceeds relating to the Mortgage Loan have
      been
      deposited in the Custodial 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 Company has delivered to the Purchaser 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, the servicing receipt shall be released
      by
      the Purchaser to the Company.

    

    Section
      6.03 Servicing
      Compensation.

    

    As
      compensation for its services hereunder, the Company shall be entitled to
      withdraw from the Custodial Account (to the extent of interest payments
      collected on the Mortgage Loans) or to retain from interest payments collected
      on the Mortgage Loans, the amounts provided for as the Company's Servicing
      Fee,
      subject to payment of compensating interest on Principal Prepayments as capped
      by the Servicing Fee pursuant to Section 5.01(iii). Additional servicing
      compensation in the form of assumption fees, as provided in Section 6.01, and
      late payment charges or otherwise shall be retained by the Company to the extent
      not required to be deposited in the Custodial Account. The Company shall be
      required to pay all expenses incurred by it in connection with its servicing
      activities hereunder and shall not be entitled to reimbursement therefor except
      as specifically provided for.

    

    Section
      6.04 [Reserved]

    

    Section
      6.05 [Reserved]

    

    Section
      6.06 Purchaser's
      Right to Examine the Company Records.

    

    The
      Purchaser shall have the right to examine and audit upon reasonable notice
      to
      the Company, during business hours or at such other times as might be reasonable
      under applicable circumstances, any and all of the books, records, documentation
      or other information of the Company, or held by another for the Company or
      on
      its behalf or otherwise, which relates to the performance or observance by
      the
      Company of the terms, covenants or conditions of this Agreement.

    

    The
      Company shall provide to the Purchaser and any supervisory agents or examiners
      representing a state or federal governmental agency having jurisdiction over
      the
      Purchaser, including but not limited to OTS, FDIC and other similar entities,
      access to any documentation regarding the Mortgage Loans in the possession
      of
      the Company which may be required by any applicable regulations. Such access
      shall be afforded without charge, upon reasonable request, during normal
      business hours and at the offices of the Company, and in accordance with the
      FDIC, OTS, or any other similar federal or state regulations, as
      applicable.

    

    ARTICLE
      VII

    

    REPORTS
      TO BE PREPARED BY SERVICER

    

    Section
      7.01 Company
      Shall Provide Information as Reasonably Required.

    

    The
      Company shall furnish to the Purchaser during the term of this Agreement, such
      periodic, special or other reports, information or documentation, whether or
      not
      provided for herein, as shall be necessary, reasonable or appropriate in respect
      to the Purchaser, or otherwise in respect to the Mortgage Loans and the
      performance of the Company under this Agreement, including any reports,
      information or documentation reasonably required to comply with any regulations
      regarding any supervisory agents or examiners of the Purchaser all such reports
      or information to be as provided by and in accordance with such applicable
      instructions and directions as the Purchaser may reasonably request in relation
      to this Agreement or the performance of the Company under this Agreement. The
      Company agrees to execute and deliver all such instruments and take all such
      action as the Purchaser, from time to time, may reasonably request in order
      to
      effectuate the purpose and to carry out the terms of this
      Agreement.

    

    In
      connection with marketing the Mortgage Loans, the Purchaser may make available
      to a prospective purchaser audited financial statements of the Company for
      the
      most recently completed two (2) fiscal years for which such statements are
      available, as well as a Consolidated Statement of Condition at the end of the
      last two (2) fiscal years covered by any Consolidated Statement of Operations.
      If it has not already done so, the Company shall furnish promptly to the
      Purchaser or a prospective purchaser copies of the statements specified above
      if
      reasonably requested.

    

    The
      Company shall make reasonably available to the Purchaser or any prospective
      Purchaser a knowledgeable financial or accounting officer for the purpose of
      answering questions and to permit any prospective purchaser to inspect the
      Company’s servicing facilities for the purpose of satisfying such prospective
      purchaser that the Company has the ability to service the Mortgage Loans as
      provided in this Agreement.

     

    ARTICLE
      VIII

    

    THE
      SERVICER

    

    Section
      8.01 Indemnification;
      Third Party Claims.

    

    The
      Company agrees to indemnify the Purchaser and hold it harmless against any
      and
      all claims, losses, damages, penalties, fines, forfeitures, legal fees and
      related costs, judgments, and any other costs, fees and expenses that the
      Purchaser may sustain in any way related to the failure of the Company to
      observe and perform its duties, obligations, covenants, and agreements to
      service the Mortgage Loans in strict compliance with the terms of this
      Agreement, including, but not limited to, the loss, damage, or misplacement
      of
      any documentation delivered to the Company pursuant to Section 2.07 and the
      Company's
      failure to perform the obligations set forth in Section 11.10.
      The
      Company agrees to indemnify the Purchaser and hold it harmless against any
      and
      all claims, losses, damages, penalties, fines, forfeitures, legal fees and
      related costs, judgments, and any other costs, fees and expenses that the
      Purchaser may sustain in any way from any claim, demand, defense or assertion
      based on or grounded upon, or resulting from any assertion based on, grounded
      upon or resulting from a breach or alleged breach of any of the representation
      or warranty set forth in Sections 3.01 or 3.02 of this Agreement. The Company
      shall immediately notify the Purchaser if a claim covered by the indemnification
      herein is made by a third party against the Company with respect to this
      Agreement or the Mortgage Loans, assume (with the consent of the Purchaser)
      the
      defense of any such claim and pay all expenses in connection therewith,
      including counsel fees, whether or not such claim is settled prior to judgment,
      and promptly pay, discharge and satisfy any judgment or decree which may be
      entered against it or the Purchaser in respect of such claim. The Company shall
      follow any written instructions received from the Purchaser in connection with
      such claim. The Purchaser shall promptly reimburse the Company for all amounts
      advanced by it pursuant to the two preceding sentences except when the claim
      relates to the failure of the Company to service and administer the Mortgages
      in
      strict compliance with the terms of this Agreement, the breach of representation
      or warranty set forth in Sections 3.01 or 3.02, or the negligence, bad faith
      or
      willful misconduct of the Company. The provisions of this Section 8.01 shall
      survive termination of this Agreement.

    

    Section
      8.02 Merger
      or Consolidation of the Company.

    

    The
      Company will keep in full effect its existence, rights and franchises under
      the
      laws of the jurisdiction of organization except as permitted herein, and will
      obtain and preserve its qualification to do business in each other 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 duties under this Agreement.

    

    Any
      Person into which the Company may be merged or consolidated, or any corporation
      resulting from any merger, conversion or consolidation to which the Company
      shall be a party, or any Person succeeding to the business of the Company
      whether or not related to loan servicing, shall be the successor of the Company
      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
      shall
      be an institution (i) having a GAAP net worth of not less than $25,000,000,
      (ii)
      the deposits of which are insured by the FDIC, SAIF and/or BIF, and which is
      a
      HUD-approved mortgagee whose primary business is in origination and servicing
      of
      first lien mortgage loans, and (iii) who is a Fannie Mae or FHLMC approved
      seller/servicer in good standing.

    

    Section
      8.03 Limitation
      on Liability of the Company and Others.

    

    Neither
      the Company nor any of the officers, employees or agents of the Company shall
      be
      under any liability to the Purchaser 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 made in good faith; provided, however, that this provision shall
      not
      protect the Company or any such person against any breach of warranties or
      representations made herein, or failure to perform its obligations in strict
      compliance with any standard of care set forth in this Agreement, or any
      liability which would otherwise be imposed by reason of negligence, bad faith
      or
      willful misconduct, or any breach of the terms and conditions of this Agreement.
      The Company and any officer, employee or agent of the Company may rely in good
      faith on any document of any kind prima facie properly executed and submitted
      by
      the Purchaser respecting any matters arising hereunder. The Company shall not
      be
      under any obligation to appear in, prosecute or defend any legal action which
      is
      not incidental to its duties to service the Mortgage Loans in accordance with
      this Agreement and which in its reasonable opinion may involve it in any
      expenses or liability; provided, however, that the Company may, with the consent
      of the Purchaser, undertake any such action which it may deem necessary or
      desirable in respect to this Agreement and the rights and duties of the parties
      hereto. In such event, the reasonable legal expenses and costs of such action
      and any liability resulting therefrom shall be expenses, costs and liabilities
      for which the Purchaser will be liable, and the Company shall be entitled to
      be
      reimbursed therefor from the Purchaser upon written demand.

    

    Section
      8.04 Company
      Not to Assign or Resign.

    

    The
      Company shall not assign this Agreement or resign from the obligations and
      duties hereby imposed on it except by mutual consent of the Company and the
      Purchaser or upon the determination that its servicing duties hereunder are
      no
      longer permissible under applicable law and such incapacity cannot be cured
      by
      the Company. Any such determination permitting the resignation of the Company
      shall be evidenced by an Opinion of Counsel to such effect delivered to the
      Purchaser. No such resignation shall become effective until a successor shall
      have assumed the Company's responsibilities and obligations hereunder in the
      manner provided in Section 11.01.

    

    Section
      8.05 No
      Transfer of Servicing.

    

    With
      respect to the retention of the Company to service the Mortgage Loans hereunder,
      the Company acknowledges that the Purchaser has acted in reliance upon the
      Company's independent status, the adequacy of its servicing facilities, plan,
      personnel, records and procedures, its integrity, reputation and financial
      standing and the continuance thereof. Without in any way limiting the generality
      of this Section, the Company shall not either assign this Agreement or the
      servicing hereunder or delegate its rights or duties hereunder or any portion
      thereof, or sell or otherwise dispose of all or substantially all of its
      property or assets, without the prior written approval of the Purchaser, which
      consent shall be granted or withheld in the Purchaser's sole discretion, unless
      the Company meets the requirements of the last sentence of Section 8.02 herein
      after any such disposition.

    

    Without
      in any way limiting the generality of this Section 8.05, in the event that
      the
      Company either shall assign this Agreement or the servicing responsibilities
      hereunder or delegate its duties hereunder or any portion thereof without (i)
      satisfying the requirements set forth herein or (ii) the prior written consent
      of the Purchaser, then the Purchaser shall have the right to terminate this
      Agreement, without any payment of any penalty or damages and without any
      liability whatsoever to the Company (other than with respect to accrued but
      unpaid Servicing Fees and Servicing Advances remaining unpaid) or any third
      party. 

    

    ARTICLE
      IX

    

    DEFAULT

    

    Section
      9.01 Events
      of Default.

    

    In
      case
      one or more of the following Events of Default by the Company shall occur and
      be
      continuing, that is to say:

    

    (i)
      any
      failure by the Company to remit to the Purchaser any payment required to be
      made
      under the terms of this Agreement which continues unremedied for a period of
      one
      (1) Business Day after receipt of written notice to the Company; or

    

    (ii)
      failure on the part of the Company duly to observe or perform in any material
      respect any other of the covenants or agreements on the part of the Company
      set
      forth in this Agreement which 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 Company by the Purchaser;
      or

    

    (iii)
      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 Company and such decree or order
      shall have remained in force undischarged or unstayed for a period of sixty
      (60)
      days; or

    

    (iv)
      the
      Company 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 Company
      or
      of or relating to all or substantially all of its property; or

    

    (v)
      the
      Company shall admit in writing its inability to pay its debts generally as
      they
      become due, file a petition to take advantage of any applicable insolvency
      or
      reorganization statute, make an assignment for the benefit of its creditors,
      or
      voluntarily suspend payment of its obligations; or

    

    (vi)
      the
      Company ceases to be approved by either Fannie Mae or FHLMC as a mortgage loan
      seller or servicer for more than thirty (30) days; or

    

    (vii)
      the
      Company attempts to assign its right to servicing compensation hereunder or
      the
      Company attempts, without the consent of the Purchaser, to sell or otherwise
      dispose of all or substantially all of its property or assets (except as
      expressly permitted hereunder) or to assign this Agreement or the servicing
      responsibilities hereunder (except as expressly
      permitted
      hereunder) or to delegate its duties hereunder or any portion thereof;
      or

    

    (viii)
      the Company ceases to be (a) licensed to service first lien residential mortgage
      loans in any jurisdiction in which a Mortgaged Property is located and such
      licensing is required, and (b) qualified to transact business in any
      jurisdiction where it is currently so qualified, but only to the extent such
      non-qualification materially and adversely affects the Company's ability to
      perform its obligations hereunder; or

    

    (ix)
      the
      Company fails to meet the eligibility criteria set forth in the last sentence
      of
      Section 8.02.

    

    Then,
      and
      in each and every such case, so long as an Event of Default shall not have
      been
      remedied, the Purchaser, by notice in writing to the Company (except in the
      case
      of an Event of Default under clauses (iii), (iv) or (v) above, in which case,
      automatically and without notice) the Company may, in addition to whatever
      rights the Purchaser may have under Sections 3.03 and 8.01 and at law or equity
      or to damages, including injunctive relief and specific performance, terminate
      all the rights and obligations of the Company under this Agreement and in and
      to
      the Mortgage Loans and the proceeds thereof without compensating the Company
      for
      the same. On or after the receipt by the Company of such written notice (or,
      in
      the case of an Event of Default under clauses (iii), (iv) or (v) above, in
      which
      case, automatically and without notice), all authority and power of the Company
      under this Agreement, whether with respect to the Mortgage Loans or otherwise,
      shall pass to and be vested in the successor appointed pursuant to Section
      11.01. Upon written request from the Purchaser, the Company shall prepare,
      execute and deliver, any and all documents and other instruments, place in
      such
      successor's possession all Mortgage Files, and 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, at the Company's sole
      expense. The Company agrees to cooperate with the Purchaser and such successor
      in effecting the termination of the Company's responsibilities and rights
      hereunder, including, without limitation, the transfer to such successor for
      administration by it of all cash amounts which shall at the time be credited
      by
      the Company to the Custodial Account or Escrow Account or thereafter received
      with respect to the Mortgage Loans or any REO Property.

    

    Section
      9.02 Waiver
      of Defaults.

    

    The
      Purchaser may waive only by written notice any default by the Company in the
      performance of its obligations hereunder and its consequences. Upon any such
      waiver of a past default, such default shall cease to exist, and any 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 in writing.

     

    ARTICLE
      X

    

    TERMINATION

    

    Section
      10.01 Termination.

     

    The
      respective obligations and responsibilities of the Company shall terminate
      upon:
      (i) the later of the final payment or other liquidation (or any advance with
      respect thereto) of the last Mortgage Loan and the disposition of all remaining
      REO Property and the remittance of all funds due hereunder; or (ii) by mutual
      consent of the Company and the Purchaser in writing; or (iii) termination with
      cause under the terms of this Agreement.

    

    ARTICLE
      XI

    

    MISCELLANEOUS
      PROVISIONS

    

    Section
      11.01 Successor
      to the Company.

    

    Prior
      to
      termination of the Company's responsibilities and duties under this Agreement
      pursuant to Sections 4.03, 4.13, 8.04, 9.01, 10.01 (ii) or (iii), the Purchaser
      shall (i) succeed to and assume all of the Company's responsibilities, rights,
      duties and obligations under this Agreement, or (ii) appoint a successor having
      the characteristics set forth in Section 8.02 hereof and which shall succeed
      to
      all rights and assume all of the responsibilities, duties and liabilities of
      the
      Company under this Agreement prior to the termination of the Company's
      responsibilities, duties and liabilities under this Agreement. In connection
      with such appointment and assumption, the Purchaser may make such arrangements
      for the compensation of such successor out of payments on Mortgage Loans as
      the
      Purchaser and such successor shall agree. In the event that the Company's
      duties, responsibilities and liabilities under this Agreement should be
      terminated pursuant to the aforementioned Sections, the Company shall discharge
      such duties and responsibilities during the period from the date it acquires
      knowledge of such termination until the effective date thereof 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 or financial condition of its successor. The resignation or removal
      of the Company pursuant to the aforementioned Sections shall not become
      effective until a successor shall be appointed pursuant to this Section and
      shall in no event relieve the Company of the representations and warranties
      made
      pursuant to Sections 3.01 and 3.02 and the remedies available to the Purchaser
      under Sections 3.03 and 8.01, it being understood and agreed that the provisions
      of such Sections 3.01, 3.02, 3.03 and 8.01 shall be applicable to the Company
      notwithstanding any such resignation or termination of the Company, or the
      termination of this Agreement.

    

    Any
      successor appointed as provided herein shall execute, acknowledge and deliver
      to
      the Company and to the Purchaser an instrument accepting such appointment,
      whereupon such successor shall become fully vested with all the rights, powers,
      duties, responsibilities, obligations and liabilities of the Company, with
      like
      effect as if originally named as a party to this Agreement. Any termination
      or
      resignation of the Company or termination of this Agreement pursuant to Section
      4.03, 4.13, 8.04, 9.01 or 10.01 shall not affect any claims that the Purchaser
      may have against the Company arising prior to any such termination or
      resignation.

    

    The
      Company shall promptly deliver to the successor the funds in the Custodial
      Account and the Escrow Account and the Mortgage Files and related documents
      and
      statements held by it hereunder and the Company shall account for all funds.
      The
      Company shall execute and deliver such instruments and do such other things
      all
      as may reasonably be required to more fully and definitely vest and confirm
      in
      the successor all such rights, powers, duties, responsibilities, obligations
      and
      liabilities of the Company. The successor shall make arrangements as it may
      deem
      appropriate to reimburse the Company for Nonrecoverable Advances which the
      successor retains hereunder and which would otherwise have been recovered by
      the
      Company pursuant to this Agreement but for the appointment of the successor
      servicer.

    

    Upon
      a
      successor's acceptance of appointment as such, the party who obtained such
      successor shall notify by mail the other party of such appointment.

    

    Section
      11.02 Amendment.

    

    This
      Agreement may be amended from time to time by the Company and the Purchaser
      by
      written agreement signed by the Company and the Purchaser.

    

    Section
      11.03 [Reserved]

    

    Section
      11.04 Governing
      Law.

    

    This
      Agreement and the related Term Sheet shall be governed by and construed in
      accordance with the laws of the State of New York except to the extent preempted
      by Federal law. The obligations, rights and remedies of the parties hereunder
      shall be determined in accordance with such laws.

    

    Section
      11.05 Notices.

    

    Any
      demands, notices or other communications permitted or required hereunder shall
      be in writing and shall be deemed conclusively to have been given if personally
      delivered at or mailed by registered mail, postage prepaid, and return receipt
      requested or certified mail, return receipt requested, or transmitted by telex,
      telegraph or telecopier and confirmed by a similar mailed writing, as
      follows:

    

    
      	
            	(i)	
              if
                to the Company:

            

    

     

    Mid
      America Bank, fsb

    2650
      Warrenville Road, Suite 500

    Downers
      Grove, Illinois 60515

    Attention:
      Theresa Mann

    Fax:
      (630) 799-7964

    

    and
      with
      respect to notices relating to servicing matters:

    

    Mid
      America Bank, fsb

    2650
      Warrenville Road, Suite 500

    Downers
      Grove, Illinois 60515

    Attention:
      Ann Ryan

    Fax:
      (630) 799-7964

    

    
      	
            	(ii)	
              if
                to the Purchaser:

            

    

     

    EMC
      Mortgage Corporation 

    Mac
      Arthur Ridge II, 

    909
      Hidden Ridge Drive, Suite 200

    Irving,
      Texas 75038

    Attention:
      Ms. Ralene Ruyle

    Telecopier
      No.: (972) 444-2810

    

    With
      a
      copy to:

    

    Bear
      Stearns Mortgage Capital Corporation

    383
      Madison Avenue

    New
      York,
      New York 10179

    Attention:
      Steven Trombetta

    

    or
      such
      other address as may hereafter be furnished to the other party by like notice.
      Any such demand, notice or communication hereunder shall be deemed to have
      been
      received on the date delivered to or received at the premises of the addressee
      (as evidenced, in the case of registered or certified mail, by the date noted
      on
      the return receipt).

    

    Section
      11.06 Severability
      of Provisions.

    

    Any
      part,
      provision, representation or warranty of this Agreement and the related Term
      Sheet which is prohibited or which is held to be void or unenforceable shall
      be
      ineffective to the extent of such prohibition or unenforceability without
      invalidating the remaining provisions hereof. Any part, provision,
      representation or warranty of this Agreement which is prohibited or
      unenforceable or is held to be void or unenforceable in any jurisdiction shall
      be ineffective, as to such jurisdiction, to the extent of such prohibition
      or
      unenforceability without invalidating the remaining provisions hereof, and
      any
      such prohibition or unenforceability in any jurisdiction as to any Mortgage
      Loan
      shall not invalidate or render unenforceable such provision in any other
      jurisdiction. To the extent permitted by applicable law, the parties hereto
      waive any provision of law that prohibits or renders void or unenforceable
      any
      provision hereof. If the invalidity of any part, provision, representation
      or
      warranty of this Agreement shall deprive any party of the economic benefit
      intended to be conferred by this Agreement, the parties shall negotiate, in
      good
      faith, to develop a structure the economic effect of which is nearly as possible
      the same as the economic effect of this Agreement without regard to such
      invalidity.

    

    Section
      11.07 Exhibits.

    

    The
      exhibits to this Agreement are hereby incorporated and made a part hereof and
      are an integral part of this Agreement.

    

    Section
      11.08 General
      Interpretive Principles.

    

    For
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires:

    

    (i)
       the
      terms
      defined in this Agreement have the meanings assigned to them in this Agreement
      and include the plural as well as the singular, and the use of any gender herein
      shall be deemed to include the other gender;

    

    (ii)
       accounting
      terms not otherwise defined herein have the meanings assigned to them in
      accordance with generally accepted accounting principles;

     

    (iii)
       references
      herein to "Articles", "Sections", Subsections", "Paragraphs", and other
      subdivisions without reference to a document are to designated Articles,
      Sections, Subsections, Paragraphs and other subdivisions of this
      Agreement;

    

    (iv)
       a
      reference to a Subsection without further reference to a Section is a reference
      to such Subsection as contained in the same Section in which the reference
      appears, and this rule shall also apply to Paragraphs and other
      subdivisions;

    

    (v)
       the
      words
      "herein", "hereof ", "hereunder" and other words of similar import refer to
      this
      Agreement as a whole and not to any particular provision; 

    

    (vi)
       the
      term
      "include" or "including" shall mean without limitation by reason of enumeration;
      and

    

    (viii)
       headings
      of the Articles and Sections in this Agreement are for reference purposes only
      and shall not be deemed to have any substantive effect.

    

    Section
      11.09 Reproduction
      of Documents.

    

    This
      Agreement and all documents relating thereto, including, without limitation,
      (i)
      consents, waivers and modifications which may hereafter be executed, (ii)
      documents received by any party at the closing, and (iii) financial statements,
      certificates and other information previously or hereafter furnished, may be
      reproduced by any photographic, photostatic, microfilm, micro-card, miniature
      photographic or other similar process. The parties agree that any such
      reproduction shall be admissible in evidence as the original itself in any
      judicial or administrative proceeding, whether or not the original is in
      existence and whether or not such reproduction was made by a party in the
      regular course of business, and that any enlargement, facsimile or further
      reproduction of such reproduction shall likewise be admissible in
      evidence.

    

    Section
      11.10 Confidentiality
      of Information.

    

    Each
      party recognizes that, in connection with this Agreement, it may become privy
      to
      non-public information regarding the financial condition, operations and
      prospects of the other party. Each party agrees to keep all non-public
      information regarding the other party strictly confidential, and to use all
      such
      information solely in order to effectuate the purpose of the Agreement; provided
      that each party may provide confidential information to its employees, agents
      and affiliates who have a need to know such information in order to effectuate
      the transaction. In addition, confidential information may be provided to a
      regulatory authority with supervisory power over the Purchaser, provided such
      information is identified as confidential non-public information.

    

    The
      Company agrees that the Company (i) shall comply with any applicable laws and
      regulations regarding the privacy and security of Consumer Information
      including, but not limited to the Gramm-Leach-Bliley
      Act, Title V, Subtitle A, 15 U.S.C. § 6801 et seq.,
      (ii)
      shall not use Consumer Information in any manner inconsistent with any
      applicable laws and regulations regarding the privacy and security of Consumer
      Information, (iii) shall not disclose Consumer Information to third parties
      except at the specific written direction of the Purchaser, (iv) shall maintain
      adequate physical, technical and administrative safeguards to protect Consumer
      Information from unauthorized access as provided by the applicable laws and
      regulations, and (v) shall immediately notify the Purchaser of any actual or
      suspected breach of the confidentiality of Consumer Information that would
      have
      a material and adverse effect on the Purchaser.

    Section
      11.11 Recordation
      of Assignments of Mortgage.

    

    To
      the
      extent permitted by applicable law, each of the Assignments 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 and at the Company’s
      expense in the event recordation is either necessary under applicable law or
      requested by the Purchaser at its sole option.

    

    Section
      11.12 Assignment.

    

    The
      Purchaser shall have the right, without the consent of the Company, to assign,
      in whole or in part, its interest under this Agreement with respect to some
      or
      all of the Mortgage Loans, and designate any person to exercise any rights
      of
      the Purchaser hereunder, by executing a Purchase, Assignment, Assumption and
      Recognition Agreement substantially in the form of Exhibit
      D
      hereto
      and the assignee or designee shall accede to the rights and obligations
      hereunder of the Purchaser with respect to such Mortgage Loans. In no event
      shall the Purchaser sell a partial interest in any Mortgage Loan without the
      written consent of the Company, which consent shall not be unreasonably denied.
      All references to the Purchaser in this Agreement shall be deemed to include
      its
      assignee or designee. The Company shall have the right, only with the consent
      of
      the Purchaser or otherwise in accordance with this Agreement, to assign, in
      whole or in part, its interest under this Agreement with respect to some or
      all
      of the Mortgage Loans.

    

    Section
      11.13 No
      Partnership.

    

    Nothing
      herein contained shall be deemed or construed to create a co-partnership or
      joint venture between the parties hereto and the services of the Company shall
      be rendered as an independent contractor and not as agent for the
      Purchaser.

    

    Section
      11.14 Signature
      Pages/Counterparts; Successors and Assigns.
      

    

    This
      Agreement and/or any Term Sheet shall be executed by each party (i) in one
      or
      more fully executed copies, each of which shall constitute a fully executed
      original Agreement, and/or (ii) in counterparts having one or more original
      signatures, and all such counterparts containing the original signatures of
      all
      of the parties hereto taken together shall constitute a fully executed original
      Agreement or Term Sheet, as applicable, and/or (iii) by delivery of one or
      more
      original signed signature pages to the other parties hereto (x) by mail or
      courier, and/or (y) by electronic transmission, including without limitation
      by
      telecopier, facsimile or email of a scanned image (“Electronic Transmission”),
      each of which as received shall constitute for all purposes an executed original
      signature page of such party. The Purchaser may deliver a copy of this Agreement
      and/or any Term Sheet, fully executed as provided herein, to each other party
      hereto by mail and/or courier and/or Electronic Transmission, and such copy
      as
      so delivered shall constitute a fully executed original Agreement or Term Sheet,
      as applicable, superseding any prior form of the Agreement or Term Sheet, as
      applicable, that differs therefrom in any respect. This Agreement shall inure
      to
      the benefit of and be binding upon the Company and the Purchaser and their
      respective successor and assigns.

    

    Section
      11.15 Entire
      Agreement.

    

    The
      Company acknowledges that no representations, agreements or promises were made
      to the Company by the Purchaser or any of its employees other than those
      representations, agreements or promises specifically contained herein and in
      the
      Confirmation. The Confirmation and this Agreement and the related Term Sheet
      sets forth the entire understanding between the parties hereto; provided,
      however, only this Agreement and the related Term Sheet shall be binding upon
      all successors of both parties. In the event of any inconsistency between the
      Confirmation and this Agreement, this Agreement and the related Term Sheet
      shall
      control.

    

    Section
      11.16. No
      Solicitation.

    

    From
      and
      after the Closing Date, the Company agrees that it will not take any action
      or
      permit or cause any action to be taken by any of its agents or affiliates,
      to
      personally, by telephone or mail, solicit the Mortgagor under any Mortgage
      Loan
      to refinance the Mortgage Loan, in whole or in part, without the prior written
      consent of the Purchaser. Notwithstanding the foregoing, it is understood and
      agreed that (i) promotions undertaken by the Company or any affiliate of the
      Company which are directed to the general public at large, or segments thereof,
      provided that no segment shall consist primarily of the Mortgage Loans,
      including, without limitation, mass mailing based on commercially acquired
      mailing lists, newspaper, radio and television advertisements and (ii) responses
      to unsolicited requests or inquiries made by a Mortgagor or an agent of a
      Mortgagor, shall not constitute solicitation under this Section 11.16. This
      Section 11.16 shall not be deemed to preclude the Company or any of its
      affiliates from soliciting any Mortgagor for any other financial products or
      services. The Company shall use its best efforts to prevent the sale of the
      name
      of any Mortgagor to any Person who is not affiliate of the Company.

    

    Section
      11.17. Closing.

    

    The
      closing for the purchase and sale of the Mortgage Loans shall take place on
      the
      related Closing Date. The closing shall be either: by telephone, confirmed
      by
      letter or wire as the parties shall agree, or conducted in person, at such
      place
      as the parties shall agree.

    

    The
      closing for the Mortgage Loans to be purchased on the related Closing Date
      shall
      be subject to each of the following conditions:

    

    (a) at
      least
      one (1) Business Day prior to the related Closing Date, the Company shall
      deliver to the Purchaser a magnetic diskette, or transmit by modem, a listing
      on
      a loan-level basis of the information contained in the related Mortgage Loan
      Schedule attached to the related Term Sheet;

    

    (b) all
      of
      the representations and warranties of the Company under this Agreement shall
      be
      materially true and correct as of the related Closing Date and no event shall
      have occurred which, with notice or the passage of time, would constitute a
      material default under this Agreement;

    

    (c) the
      Purchaser shall have received, or the Purchaser's attorneys shall have received
      in escrow, all documents required pursuant to this Agreement, the related Term
      Sheet and an Officer Certificate (on or prior to the initial Closing Date only),
      all in such forms as are agreed upon and acceptable to the Purchaser, duly
      executed by all signatories other than the Purchaser as required pursuant to
      the
      terms hereof; and

    

    (d) all
      other
      terms and conditions of this Agreement, the related Term Sheet and the
      Confirmation shall have been materially complied with.

    

    Subject
      to the foregoing conditions, the Purchaser shall pay to the Company on the
      related Closing Date the Purchase Price, plus accrued interest pursuant to
      Section 2.02 of this Agreement, by wire transfer of immediately available funds
      to the account designated by the Company.

    

    Section
      11.18. [Reserved]
      

    

    Section
      11.19. Monthly
      Reporting with Respect to a Reconstitution.

    

    As
      long
      as the Company continues to service Mortgage Loans, the Company agrees that
      with
      respect to any Mortgage Loan sold or transferred pursuant to a Reconstitution
      as
      described in Section 11.18 of this Agreement (a “Reconstituted Mortgage Loan”),
      the Company, at its expense, shall provide the Purchaser with the information
      set forth in Exhibit
      E
      attached
      hereto for each Reconstituted Mortgage Loan in Excel or such electronic
      delimited file format as may be mutually agreed upon by both the Purchaser
      and
      the Company. Such information shall be provided monthly for all Reconstituted
      Mortgage Loans on the fifth (5th)
      Business Day of each month for the immediately preceding monthly period, and
      shall be transmitted to fast.data@bear.com.

    
 

    IN
      WITNESS WHEREOF, the Company and the Purchaser have caused their names to be
      signed hereto by their respective officers thereunto duly authorized as of
      the
      day and year first above written.

     

    
      	 	 	 
	 	
              EMC
                MORTGAGE CORPORATION

              Purchaser

            
	 
 	 
 	 
 
	 	 	By: 
	 	
              
                

              

            
	 	
              Name:
                

              Title:
                

            

    

    
      
        	 	 	 
	 	
                MID
                  AMERICA BANK, FSB

                Company

              
	 
 	 
 	 
 
	 	 	By: 
	 	
                
                  

                

              
	 	
                Name:
                  

                Title:
                  

              

      

      
      

       

    

    EXHIBIT
      A

    

    CONTENTS
      OF 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 Purchaser,
      and
      which shall be retained by the Company in the Servicing File or delivered to
      the
      Purchaser or its designee pursuant to Sections 2.04 and 2.05 of the Purchase,
      Warranties and Servicing Agreement.

    

    1.
      The
      original Mortgage Note endorsed "Pay to the order of _______________________,
      without recourse," and signed via original signature in the name of the Company
      by an authorized officer, with all intervening endorsements showing a complete
      chain of title from the originator to the Company, together with any applicable
      riders. In no event may an endorsement be a facsimile endorsement. If the
      Mortgage Loan was acquired by the Company in a merger, the endorsement must
      be
      by "[Company], successor by merger to the [name of predecessor]". If the
      Mortgage Loan was acquired or originated by the Company while doing business
      under another name, the endorsement must be by "[Company] formerly known as
      [previous name]". Mortgage Notes may be in the form of a lost note affidavit
      subject to the Purchaser acceptability. 

    

    2.
      The
      original Mortgage (together with a standard adjustable rate mortgage rider)
      with
      evidence of recording thereon, or a copy thereof certified by the public
      recording office in which such mortgage has been recorded or, if the original
      Mortgage has not been returned from the applicable public recording office,
      a
      true certified copy, certified by the Company.

    

    3.
      The
      original or certified copy, certified by the Company, of the Primary Mortgage
      Insurance Policy, if required.

    

    4.
      The
      original Assignment, from the Company to _______________________________, or
      in
      accordance with the Purchaser's instructions, which assignment shall, but for
      any blanks requested by the Purchaser, be in form and substance acceptable
      for
      recording. If the Mortgage Loan was acquired or originated by the Company while
      doing business under another name, the Assignment must be by "[Company] formerly
      known as [previous name]". If the Mortgage Loan was acquired by the Company
      in a
      merger, the endorsement must be by "[Company], successor by merger to the [name
      of predecessor]". None of the Assignments are blanket assignments of
      mortgage.

    

    5.
      The
      original policy of title insurance, including riders and endorsements thereto,
      or if the policy has not yet been issued, a written commitment or interim binder
      or preliminary report of title issued by the title insurance or escrow
      company.

    

    6.
      Originals of all recorded intervening Assignments, or copies thereof, certified
      by the public recording office in which such Assignments have been recorded
      showing a complete chain of
      title
      from the originator to the Company, with evidence of recording thereon, or
      a
      copy thereof certified by the public recording office in which such Assignment
      has been recorded or, if the original Assignment has not been returned from
      the
      applicable public recording office, a true certified copy, certified by the
      Company.

    

    7.
      Originals, or copies thereof certified by the public recording office in which
      such documents have been recorded, of each assumption, extension, modification,
      written assurance or substitution agreements, if applicable, or if the original
      of such document has not been returned from the applicable public recording
      office, a true certified copy, certified by the Company. 

    

    8.
      If the
      Mortgage Note or Mortgage or any other material document or instrument relating
      to the Mortgage Loan has been signed by a person on behalf of the Mortgagor,
      the
      original or copy of power of attorney or other instrument that authorized and
      empowered such person to sign bearing evidence that such instrument has been
      recorded, if so required in the appropriate jurisdiction where the Mortgaged
      Property is located, or a copy thereof certified by the public recording office
      in which such instrument has been recorded or, if the original instrument has
      not been returned from the applicable public recording office, a true certified
      copy, certified by the Company.

    

    9.
      Reserved.

    

    10.
      Mortgage Loan closing statement (Form HUD-1) and any other truth-in-lending
      or
      real estate settlement procedure forms required by law.

    

    11.
      Residential loan application.

    

    12.
      Uniform underwriter and transmittal summary (Fannie Mae Form 1008) or reasonable
      equivalent.

    

    13.
      Credit report on the mortgagor.

    

    14.
      Business credit report, if applicable.

    

    15.
      Residential appraisal report and attachments thereto.

    

    16.
      The
      original of any guarantee executed in connection with the Mortgage
      Note.

    

    17.
      Verification of employment and income except for Mortgage Loans originated
      under
      a limited documentation program, all in accordance with Company's underwriting
      guidelines.

    

    18.
      Verification of acceptable evidence of source and amount of down payment, in
      accordance with the Company's underwriting guidelines.

    

    19.
      Photograph of the Mortgaged Property (may be part of appraisal)

    .

    20.
      Survey of the Mortgaged Property, if any.

    

    21.
      Sales
      contract, if applicable.

    

    22.
      If
      available, termite report, structural engineer’s report, water portability and
      septic certification.

    

    23.
      Any
      original security agreement, chattel mortgage or equivalent executed in
      connection with the Mortgage.

    

    24.
      Name
      affidavit, if applicable.

    

    Notwithstanding
      anything to the contrary herein, the Company may provide one certificate for
      all
      of the Mortgage Loans indicating that the documents were delivered for
      recording.

    
 

    EXHIBIT
      B

    

    CUSTODIAL
      ACCOUNT LETTER AGREEMENT

    

    ______________,
      2005

    

    To:   [_______________________]
      

     (the
      "Depository")

    

    As
      "Company" under the Purchase, Warranties and Servicing Agreement, dated as
      of
      [_____________________] 1, 200[_] (the "Agreement"), we hereby authorize and
      request you to establish an account, as a Custodial Account pursuant to Section
      4.04 of the Agreement, to be designated as
      "[______________________________________], in trust for the [Purchaser], Owner
      of Mortgage Loans". All deposits in the account shall be subject to withdrawal
      therefrom by order signed by the Company. This letter is submitted to you in
      duplicate. Please execute and return one original to us.

    
      	 	 	 
	 	
              [__________________________]

            
	 
 	 
 	 
	 	  	
              By:____________________________

               

            
	 	
              Name:__________________________

               

            
	 	Title:___________________________ 

    The
      undersigned, as "Depository", hereby certifies that the above described account
      has been established under Account Number [__________], at the office of the
      depository indicated above, and agrees to honor withdrawals on such account
      as
      provided above. The full amount deposited at any time in the account will be
      insured up to applicable limits by the Federal Deposit Insurance Corporation
      through the Bank Insurance Fund or the Savings Association Insurance Fund or
      will be invested in Permitted Investments as defined in the
      Agreement.

    
      	 	 	 
	 	
              [__________________________]

            
	 
 	 
 	 
	 	  	
              By:____________________________

               

            
	 	
              Name:__________________________

               

            
	 	Title:___________________________ 

    EXHIBIT
      C

    

    ESCROW
      ACCOUNT LETTER AGREEMENT

    _____________,
      2005

    

    To:    [_______________________]

     (the
      "Depository")

    

    As
      “Company” under the Purchase Warranties and Servicing Agreement, dated as of
      [____________________]1, 200[_] (the "Agreement"), we hereby authorize and
      request you to establish an account, as an Escrow Account pursuant to Section
      4.06 of the Agreement, to be designated as "[__________________________], in
      trust for the [Purchaser], Owner of Mortgage Loans, and various Mortgagors."
      All
      deposits in the account shall be subject to withdrawal therefrom by order signed
      by the Company. This letter is submitted to you in duplicate. Please execute
      and
      return one original to us.

    
      
        	 	 	 
	 	
                [__________________________]

              
	 
 	 
 	 
	 	  	
                By:____________________________

                 

              
	 	
                Name:__________________________

                 

              
	 	Title:___________________________ 

    

    The
      undersigned, as "Depository", hereby certifies that the above described account
      has been established under Account Number __________, at the office of the
      depository indicated above, and agrees to honor withdrawals on such account
      as
      provided above. The full amount deposited at any time in the account will be
      insured up to applicable limits by the Federal Deposit Insurance Corporation
      through the Bank Insurance Fund or the Savings Association Insurance Fund or
      will be invested in Permitted Investments as defined in the
      Agreement.

    
      
        	 	 	 
	 	
                [__________________________]

              
	 
 	 
 	 
	 	  	
                By:____________________________

                 

              
	 	
                Name:__________________________

                 

              
	 	Title:___________________________ 

      

       

    

    

    EXHIBIT
      D

    

    FORM
      OF
      PURCHASE, ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

    

    This
      is a
      Purchase, Assignment, Assumption and Recognition Agreement (this “PAAR
      Agreement”) made as of __________, 200__, among EMC Mortgage Corporation (
“Assignor”), ___________________ ( “Assignee”), and Mid America Bank, fsb (
“Company”).

    

    In
      consideration of the mutual promises contained herein the parties hereto agree
      that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
      1 annexed hereto (the "Assigned Loan Schedule") now serviced by Company for
      Assignor and its successors and assigns pursuant to the Purchase, Warranties
      and
      Servicing Agreement, dated as of _________, 200__, between Assignor and Company
      (the “Purchase Agreement”) shall be subject to the terms of this PAAR Agreement.
      Capitalized terms used herein but not defined shall have the meanings ascribed
      to them in the Purchase Agreement.

    

    Purchase,
      Assignment and Assumption

    

    1. Assignor
      hereby grants, transfers and assigns to Assignee all of the right, title and
      interest of Assignor in the Assigned Loans and, as they relate to the Assigned
      Loans, all of its right, title and interest in, to and under the Purchase
      Agreement.

    

    2. Simultaneously
      with the execution hereof, (i) Assignee shall pay to Assignor the “Funding
      Amount” as set forth in that certain letter agreement, dated as of _________
      ____, between Assignee and Assignor (the “Confirmation”) and (ii) Assignor, at
      its expense, shall have caused to be delivered to Assignee or its designee
      the
      Mortgage File for each Assigned Loan in Assignor's or its custodian's
      possession, as set forth in the Purchase Agreement, along with, for each
      Assigned Loan, an endorsement of the Mortgage Note from the Company, in blank,
      and an assignment of mortgage in recordable form from the Company, in blank.
      Assignee shall pay the Funding Amount by wire transfer of immediately available
      funds to the account specified by Assignor. Assignee shall be entitled to all
      scheduled payments due on the Assigned Loans after ___________, 200__ and all
      unscheduled payments or other proceeds or other recoveries on the Assigned
      Loans
      received on and after _____________, 200__.

    

    Representations,
      Warranties and Covenants

    

    3. Assignor
      warrants and represents to Assignee and Company as of the date
      hereof:

    

    (a) Attached
      hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
      which agreement is in full force and effect as of the date hereof and the
      provisions of which have not been waived, amended or modified in any respect,
      nor has any notice of termination been given thereunder;

     

    (b) Assignor
      is the lawful owner of the Assigned Loans with full right to transfer the
      Assigned Loans and any and all of its interests, rights and obligations under
      the Purchase Agreement as they relate to the Assigned Loans, free and clear
      from
      any and all claims and encumbrances; and upon the transfer of the Assigned
      Loans
      to Assignee as contemplated herein, Assignee shall have good title to each
      and
      every Assigned Loan, as well as any and all of Assignee’s interests, rights and
      obligations under the Purchase Agreement as they relate to the Assigned Loans,
      free and clear of any and all liens, claims and encumbrances;

    

    (c) There
      are
      no offsets, counterclaims or other defenses available to Company with respect
      to
      the Assigned Loans or the Purchase Agreement;

     

    (d) Assignor
      has no knowledge of, and has not received notice of, any waivers under, or
      any
      modification of, any Assigned Loan;

    

    (e) Assignor
      is duly organized, validly existing and in good standing under the laws of
      the
      jurisdiction of its incorporation, and has all requisite power and authority
      to
      acquire, own and sell the Assigned Loans;

    

    (f) Assignor
      has full corporate power and authority to execute, deliver and perform its
      obligations under this PAAR Agreement, and to consummate the transactions set
      forth herein. The consummation of the transactions contemplated by this PAAR
      Agreement is in the ordinary course of Assignor’s business and will not conflict
      with, or result in a breach of, any of the terms, conditions or provisions
      of
      Assignor’s charter or by-laws or any legal restriction, or any material
      agreement or instrument to which Assignor is now a party or by which it is
      bound, or result in the violation of any law, rule, regulation, order, judgment
      or decree to which Assignor or its property is subject. The execution, delivery
      and performance by Assignor of this PAAR Agreement and the consummation by
      it of
      the transactions contemplated hereby, have been duly authorized by all necessary
      corporate action on part of Assignor. This PAAR Agreement has been duly executed
      and delivered by Assignor and, upon the due authorization, execution and
      delivery by Assignee and Company, will constitute the valid and legally binding
      obligation of Assignor enforceable against Assignor in accordance with its
      terms
      except as enforceability may be limited by bankruptcy, reorganization,
      insolvency, moratorium or other similar laws now or hereafter in effect relating
      to creditors’ rights generally, and by general principles of equity regardless
      of whether enforceability is considered in a proceeding in equity or at law;
      

     

    (g) No
      consent, approval, order or authorization of, or declaration, filing or
      registration with, any governmental entity is required to be obtained or made
      by
      Assignor in connection with the execution, delivery or performance by Assignor
      of this PAAR Agreement, or the consummation by it of the transactions
      contemplated hereby; and

    

    (h) Neither
      Assignor nor anyone acting on its behalf has offered, transferred, pledged,
      sold
      or otherwise disposed of the Assigned Loans or any interest in the Assigned
      Loans, or solicited any offer to buy or accept a transfer, pledge or other
      disposition of the Assigned Loans, or any interest in the Assigned Loans or
      otherwise approached or negotiated with respect to the Assigned Loans,
      or
      any interest in the Assigned Loans 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 which would constitute a distribution of the Assigned
      Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which
      would render the disposition of the Assigned Loans a violation of Section 5
      of
      the 1933 Act or require registration pursuant thereto.

     

     

    4. Assignee
      warrants and represents to, and covenants with, Assignor and Company as of
      the
      date hereof:

     

    

    (a) Assignee
      is duly organized, validly existing and in good standing under the laws of
      the
      jurisdiction of its organization and has all requisite power and authority
      to
      acquire, own and purchase the Assigned Loans;

    

    (b) Assignee
      has full corporate power and authority to execute, deliver and perform its
      obligations under this PAAR Agreement, and to consummate the transactions set
      forth herein. The consummation of the transactions contemplated by this PAAR
      Agreement is in the ordinary course of Assignee’s business and will not conflict
      with, or result in a breach of, any of the terms, conditions or provisions
      of
      Assignee’s charter or by-laws or any legal restriction, or any material
      agreement or instrument to which Assignee is now a party or by which it is
      bound, or result in the violation of any law, rule, regulation, order, judgment
      or decree to which Assignee or its property is subject. The execution, delivery
      and performance by Assignee of this PAAR Agreement and the consummation by
      it of
      the transactions contemplated hereby, have been duly authorized by all necessary
      corporate action on part of Assignee. This PAAR Agreement has been duly executed
      and delivered by Assignee and, upon the due authorization, execution and
      delivery by Assignor and Company, will constitute the valid and legally binding
      obligation of Assignee enforceable against Assignee in accordance with its
      terms
      except as enforceability may be limited by bankruptcy, reorganization,
      insolvency, moratorium or other similar laws now or hereafter in effect relating
      to creditors’ rights generally, and by general principles of equity regardless
      of whether enforceability is considered in a proceeding in equity or at law;
      

    

    (c) No
      consent, approval, order or authorization of, or declaration, filing or
      registration with, any governmental entity is required to be obtained or made
      by
      Assignee in connection with the execution, delivery or performance by Assignee
      of this PAAR Agreement, or the consummation by it of the transactions
      contemplated hereby; and 

    

    (d) Assignee
      agrees to be bound as “Purchaser” by all of the terms, covenants and conditions
      of the Purchase Agreement with respect to the Assigned Loans, and from and
      after
      the date hereof, Assignee assumes for the benefit of each of Assignor and
      Company all of Assignor's obligations as “Purchaser” thereunder but solely with
      respect to such Assigned Loans.

     

    5. Company
      warrants and represents to, and covenant with, Assignor and Assignee as of
      the
      date hereof:

     

    (a) Attached
      hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
      which agreement is in full force and effect as of the date hereof and the
      provisions of which have not been waived, amended or modified in any respect,
      nor has any notice of termination been given thereunder; 

    

    (b)
      Company
      is duly organized, validly existing and in good standing under the laws of
      the
      jurisdiction of its incorporation, and has all requisite power and authority
      to
      service the Assigned Loans and otherwise to perform its obligations under the
      Purchase Agreement;

    

    (c)
      Company
      has full corporate power and authority to execute, deliver and perform its
      obligations under this PAAR Agreement, and to consummate the transactions set
      forth herein. The consummation of the transactions contemplated by this PAAR
      Agreement is in the ordinary course of Company’s business and will not conflict
      with, or result in a breach of, any of the terms, conditions or provisions
      of
      Company’s charter or by-laws or any legal restriction, or any material agreement
      or instrument to which Company is now a party or by which it is bound, or result
      in the violation of any law, rule, regulation, order, judgment or decree to
      which Company or its property is subject. The execution, delivery and
      performance by Company of this PAAR Agreement and the consummation by it of
      the
      transactions contemplated hereby, have been duly authorized by all necessary
      corporate action on part of Company. This PAAR Agreement has been duly executed
      and delivered by Company, and, upon the due authorization, execution and
      delivery by Assignor and Assignee, will constitute the valid and legally binding
      obligation of Company, enforceable against Company in accordance with its terms
      except as enforceability may be limited by bankruptcy, reorganization,
      insolvency, moratorium or other similar laws now or hereafter in effect relating
      to creditors’ rights generally, and by general principles of equity regardless
      of whether enforceability is considered in a proceeding in equity or at
      law;

    

    (d)
      No
      consent, approval, order or authorization of, or declaration, filing or
      registration with, any governmental entity is required to be obtained or made
      by
      Company in connection with the execution, delivery or performance by Company
      of
      this PAAR Agreement, or the consummation by it of the transactions contemplated
      hereby; 

    

    (e)
      No
      event
      has occurred
      from the
      Closing Date to the date hereof which would render the representations and
      warranties as to the related Assigned Loans made by Company in Sections 3.01
      and
      3.02 of the Purchase Agreement to be untrue in any material respect;
      and

    

    (f)
      Neither
      this PAAR Agreement nor any certification, statement, report or other agreement,
      document or instrument furnished or to be furnished by Company pursuant to
      this
      PAAR Agreement contains or will contain any materially untrue statement of
      fact
      or omits or will omit to state a fact necessary to make the statements contained
      therein not misleading.

    

    Recognition
      of Assignee

    

    6. From
      and
      after the date hereof, Company shall recognize Assignee as owner of the Assigned
      Loans and will service the Assigned Loans in accordance with the Purchase
      Agreement. It is the intention of Assignor, Company and Assignee that this
      PAAR
      Agreement shall be binding upon and for the benefit of the respective successors
      and assigns of the parties hereto. Neither Company nor Assignor shall amend
      or
      agree to amend, modify, waiver, or otherwise alter any of the terms or
      provisions of the Purchase Agreement which amendment, modification, waiver
      or
      other alteration would in any way affect the Assigned Loans without the prior
      written consent of Assignee.

    

     

    Miscellaneous

    

    7. All
      demands, notices and communications related to the Assigned Loans, the Purchase
      Agreement and this PAAR Agreement shall be in writing and shall be deemed to
      have been duly given if personally delivered at or mailed by registered mail,
      postage prepaid, as follows:

     

    

    
      	
            	(a)	
              In
                the case of Company,

            

    

    

    Mid
      America Bank, fsb

    2650
      Warrenville Road, Suite 500

    Downers
      Grove, Illinois 60515

    Attention:
      Theresa Mann

    Fax:
      (630) 799-7964

    

    and
      with
      respect to notices relating to servicing matters:

    

    Mid
      America Bank, fsb

    2650
      Warrenville Road, Suite 500

    Downers
      Grove, Illinois 60515

    Attention:
      Ann Ryan

    Fax:
      (630) 799-7964

    

    
      	
            	(b)	
              In
                the case of Assignor,

            

    

    

    ____________________

    ____________________

    ____________________

    ____________________

    ____________________ 

    

    
      	
            	(c)	
              In
                the case of Assignee,

            

    

    
 

    EMC
      Mortgage Corporation 

    Mac
      Arthur Ridge II 

    909
      Hidden Ridge Drive, Suite 200

    Irving,
      Texas 75038

    Attention:
      Raylene Ruyle

    Telecopier
      No.: (972) 444-2810

    

    with
      a
      copy to:

    

    Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Attention:
      Steve Trombetta

    Telecopier
      No.: (212) 272-[___]

    

    8. Each
      party will pay any commissions it has incurred and the fees of its attorneys
      in
      connection with the negotiations for, documenting of and closing of the
      transactions contemplated by this PAAR Agreement. 

    

    9. This
      PAAR
      Agreement shall be construed in accordance with the laws of the State of New
      York, without regard to conflicts of law principles, and the obligations, rights
      and remedies of the parties hereunder shall be determined in accordance with
      such laws.

    

    10. No
      term
      or provision of this PAAR Agreement may be waived or modified unless such waiver
      or modification is in writing and signed by the party against whom such waiver
      or modification is sought to be enforced.

    

    11. This
      PAAR
      Agreement shall inure to the benefit of the successors and assigns of the
      parties hereto. Any entity into which Assignor, Assignee or Company may be
      merged or consolidated shall, without the requirement for any further writing,
      be deemed Assignor, Assignee or Company, respectively, hereunder.

    

    12. This
      PAAR
      Agreement shall survive the conveyance of the Assigned Loans, the assignment
      of
      the Purchase Agreement to the extent of the Assigned Loans by Assignor to
      Assignee and the termination of the Purchase Agreement.

    

    13. This
      PAAR
      Agreement may be executed simultaneously in any number of counterparts. Each
      counterpart shall be deemed to be an original and all such counterparts shall
      constitute one and the same instrument.

    

    14. In
      the
      event that any provision of this PAAR Agreement conflicts with any provision
      of
      the Purchase Agreement with respect to the Assigned Loans, the terms of this
      PAAR Agreement shall control. In the event that any provision of this PAAR
      Agreement conflicts with any provision of
      the
      Confirmation with respect to the Assigned Loans, the terms of this PAAR
      Agreement shall control.

    

    

    [Modification
      of Purchase Agreement

    

    15.  Company
      and Assignor hereby amend the Purchase Agreement as follows:

    

    (a)   
      The
      following definitions are added to Section 1.01 of the Purchase
      Agreement:

    

    Securities
      Administrator:      
      ________________________

    

    Supplemental
      PMI Insurer:    ________________________

    

    Supplemental
      PMI Policy:    
The
      primary guarantee insurance policy of the Supplemental PMI Insurer attached
      hereto as Exhibit [_], or any successor Supplemental PMI Policy given to the
      Servicer by the Assignee.

    

    Trustee:        ________________________

    

    (b)   
      The
      following definition is amended and restated:

    

    Insurance
      Proceeds: Proceeds
      of any Primary Mortgage Insurance Policy, the Supplemental PMI Policy, any
      title
      policy, any hazard insurance policy or any other insurance policy covering
      a
      Mortgage Loan or other related Mortgaged Property, including any amounts
      required to be deposited in the Custodial Account pursuant to Section 4.04,
      to
      the extent such proceeds are not to be applied to the restoration of the related
      Mortgaged Property or released to the Mortgagor in accordance with Accepted
      Servicing Practices.

    

    (c)   
      The
      following are added as the fourth, fifth and sixth paragraphs of Section
      4.08:

    

    “In
      connection with its activities as servicer, the Company agrees to prepare and
      present, on behalf of itself and the Purchaser, claims to the Supplemental
      PMI
      Insurer with respect to the Supplemental PMI Policy and, in this regard, to
      take
      such action as shall be necessary to permit recovery under any Supplemental
      PMI
      Policy respecting a defaulted Mortgage Loan. Pursuant to Section 4.04, any
      amounts collected by the Company under any Supplemental PMI Policy shall be
      deposited in the Custodial Account, subject to withdrawal pursuant to Section
      4.05.

    

    In
      accordance with the Supplemental PMI Policy, the Company shall provide to the
      Supplemental PMI Insurer any required information regarding the Mortgage
      Loans.

    

    The
      Company shall provide to the [Securities Administrator] on a monthly basis
      via
      computer tape, or other mutually acceptable format, the unpaid principal
      balance, insurer certificate number, lender loan number, and premium due the
      Supplemental PMI Insurer for each Mortgage Loan covered by the Supplemental
      PMI
      Policy. In addition, the Company agrees to forward to the

    Purchaser
      and the [Securities Administrator] any statements or other reports given by
      the
      Supplemental PMI Insurer to the Servicer in connection with a claim under the
      Supplemental PMI Policy.”

    

    (d)   
      Clause
      (vi) of Section 9.01 is amended to read as follows:

    

    “Company
      ceases to be approved by either Fannie Mae or FHLMC as a mortgage loan seller
      or
      servicer for more than thirty days, or the Company fails to meet the servicer
      eligibility requirements of the Supplemental PMI Insurer; or”]

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this PAAR Agreement as of
      the
      day and year first above written.

    
      	 	 	 
	 	
              EMC
                MORTGAGE CORPORATION

              Assignor

            
	 
 	 
 	 
 
	 	  	By:
              __________________________
	 	
              Name:________________________

            
	 	Title:______________________

    

     

    
      
        	 	 	 
	 	
                
                  _________________________________

                  Assignee

                

              
	 
 	 
 	 
 
	 	  	By:_______________________________
	 	Name:_____________________________
	 	Title:__________________________

         

        
          
            	 	 	 
	 	
                    
                      
                        MID
                          AMERICA BANK, FSB

                        Company

                      

                    

                  
	 
 	 
 	 
 
	 	  	By:_______________________________
	 	Name:_____________________________
	 	Title:__________________________

        

      

    

    ATTACHMENT
      1

    

    ASSIGNED
      LOAN SCHEDULE

    

    ATTACHMENT
      2

    

    PURCHASE,
      WARRANTIES AND SERVICING AGREEMENT

    

    EXHIBIT
      E

    

    FORM
      OF
      TRIAL BALANCE

    

    EXHIBIT
      G

    

    REQUEST
      FOR RELEASE OF DOCUMENTS AND RECEIPT

    

    RE:    
      Mortgage
      Loan #___________________________________

    BORROWER:__________________________________________________

    PROPERTY:
      __________________________________________________

    

    

    Pursuant
      to a Purchase, Warranties and Servicing Agreement (the "Agreement") between
      the
      Company and the Purchaser, the undersigned hereby certifies that he or she
      is an
      officer of the Company requesting release of the documents for the reason
      specified below. The undersigned further certifies that:

    

    (Check
      one of the items below)

    

    _____ On
      _________________, the above captioned Mortgage Loan was paid in full or that
      the Company has been notified that payment in full has been or will be escrowed.
      The Company hereby certifies that all amounts with respect to this loan which
      are required under the Agreement have been or will be deposited in the Custodial
      Account as required.

    

    _____ The
      above
      captioned Mortgage Loan is being repurchased pursuant to the terms of the
      Agreement. The Company hereby certifies that the repurchase price has been
      credited to the Custodial Account as required under the Agreement.

    

    _____ The
      above
      captioned Mortgage Loan is being placed in foreclosure and the original
      documents are required to proceed with the foreclosure action. The Company
      hereby certifies that the documents will be returned to the Purchaser in the
      event of reinstatement.

    

    _____ Other
      (explain)

    

    _______________________________________________________

    _______________________________________________________

    

    All
      capitalized terms used herein and not defined shall have the meanings assigned
      to them in the Agreement.

     

    Based
      on
      this certification and the indemnities provided for in the Agreement, please
      release to the Company all original Mortgage Loan Documents in your possession
      relating to this loan.

    

    Dated:_________________

    
      	 	 	 	 
	By:	 	 	 
	
              
                

              

            	 	 	
            
	
              Signature

            	 	 	 

    

    ___________________________________

    Title

    

    Send
      documents to: _____________________________________________

    _____________________________________________

    _____________________________________________

    

    Acknowledgement:

    

    The
      Purchaser hereby acknowledges that all original documents previously released
      on
      the above captioned Mortgage Loan have been returned and received by the
      Purchaser.

    

    

    Dated:________________

    

    By:________________________________

    Signature

    

    _______________________________

    Title

     

     

    EXHIBIT
      H

    

    COMPANY’S
      UNDERWRITING GUIDELINES

    

    EXHIBIT
      I

    

    

    TERM
      SHEET

    

    This
      TERM
      SHEET (the "Term Sheet") dated _____________, between Mid America Bank, fsb,
      located at 2650 Warrenville Road, Suite 500, Downers Grove, Illinois 60515
      (the
“Company”) and EMC Mortgage Corporation, a Delaware corporation, located at Mac
      Arthur Ridge II, 909 Hidden Ridge Drive, Suite 200, Irving, Texas 75038 (the
      "Purchaser") is made pursuant to the terms and conditions of that certain
      Purchase, Warranties and Servicing Agreement, as amended (the "Agreement")
      dated
      as of February 1, 2006, between the Company and the Purchaser, the provisions
      of
      which are incorporated herein as if set forth in full herein, as such terms
      and
      conditions may be modified or supplemented hereby. All initially capitalized
      terms used herein unless otherwise defined shall have the meanings ascribed
      thereto in the Agreement. 

    

    The
      Purchaser hereby purchases from the Company and the Company hereby sells to
      the
      Purchaser, all of the Company’s right, title and interest in and to the Mortgage
      Loans on a servicing retained basis described on the Mortgage Loan Schedule
      annexed hereto as Schedule
      I,
      pursuant to and in accordance with the terms and conditions set forth in the
      Agreement, as same may be supplemented or modified hereby. Hereinafter, the
      Company shall service the Mortgage Loans for the benefit of the Purchaser and
      all subsequent transferees of the Mortgage Loans pursuant to and in accordance
      with the terms and conditions set forth in the Agreement. 

    

    1.    Definitions

    

    For
      purposes of the Mortgage Loans to be sold pursuant to this Term Sheet, the
      following terms shall have the following meanings:

    

    Aggregate
      Principal Balance

    (as
      of
      the Cut-Off Date):    

    

    Closing
      Date:    

    

    Custodian:    

    

    Cut-off
      Date:    

    

    Initial
      Weighted Average

    Mortgage
      Loan Remittance Rate:  

    

    Mortgage
      Loan:    

    

    Purchase
      Price Percentage:   

    

    Servicing
      Fee Rate:   

    Additional
      Closing Conditions: 

    

    In
      addition to the conditions specified in the Agreement, the obligation of each
      of
      the Company and the Purchaser is subject to the fulfillment, on or prior to
      the
      applicable Closing Date, of the following additional conditions: [None].

    

    Additional
      Loan Documents: 

    

    In
      addition to the contents of the Mortgage File specified in the Agreement, the
      following documents shall be delivered with respect to the Mortgage Loans:
      [None].

    

    [Additional]
      [Modification] of Representations and Warranties:

     

    [In
      addition to the representations and warranties set forth in the Agreement,
      as of
      the date hereof, the Company makes the following additional representations
      and
      warranties with respect to the Mortgage Loans: [None]. [Notwithstanding anything
      to the contrary set forth in the Agreement, with respect to each Mortgage Loan
      to be sold on the Closing Date, the representation and warranty set forth in
      Section ______ of the Agreement shall be modified to read as
      follows:]

    

    Except
      as
      modified herein, the Agreement shall remain in full force and effect as of
      the
      date hereof.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto
      by their respective duly authorized officers as of the date first above
      written.

     

    
      
        	 	 	 
	 	
                
                  
                    MID
                      AMERICA BANK, FSB

                  

                

              
	 
 	 
 	 
	 	  	By:_______________________________
	 	Name:_____________________________
	 	Title:__________________________

         

        
          
            	 	 	 
	 	
                    
                      
                        EMC
                          MORTGAGE CORPORATION

                      

                    

                  
	 
 	 
 	 
 
	 	  	By:_______________________________
	 	Name:_____________________________
	 	Title:__________________________

  

        

      

    

    SCHEDULE
      I

    

    MORTGAGE
      LOAN SCHEDULE

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    AMENDMENT
      NUMBER ONE

    to
      the

    

    PURCHASE,
      WARRANTIES AND SERVICING AGREEMENT

    

    Dated
      as
      of February 1, 2006

    

    between

    

    EMC
      MORTGAGE CORPORATION, 

    as
      Purchaser

    

    and

    

    MID
      AMERICA BANK, FSB,

    as
      Company

    

    This
      AMENDMENT NUMBER ONE (this “Amendment”) is made and entered into this
      1st
      day of
      February, 2006, by and between EMC Mortgage Corporation, a Delaware corporation,
      as purchaser (the “Purchaser”) and Mid America Bank, fsb, as company (the
“Company”) in connection with the Purchase, Warranties and Servicing Agreement,
      dated as of February 1, 2006, between the above mentioned parties (the
“Agreement”). This Amendment is made pursuant to Section 11.02 of the
      Agreement.

    

    RECITALS

     

    WHEREAS,
      the parties hereto have entered into the Agreement; 

    

    WHEREAS,
      the Agreement provides that the parties thereto may enter into an amendment
      to
      the Agreement;

    

    WHEREAS,
      the parties hereto desire to amend the Agreement as set forth in this Amendment;
      and

    

    NOW,
      THEREFORE, in consideration of the premises and for other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      parties hereto agree as follows:

    

    1.    
       Capitalized
      terms used herein and not defined herein shall have the meanings assigned to
      such terms in the Agreement. 

    

    2.      Article
      I
      of the Agreement is hereby amended effective as of the date hereof by adding
      the
      following definitions to Section 1.01: 

    

    Commission
      or SEC:
      The
      Securities and Exchange Commission.

    

    Delinquency
      Recognition Policies:
      The
      delinquency recognition policies set forth in Exhibit Q.

    

    Depositor:
      The
      depositor, as such term is defined in Regulation AB, with respect to any
      Pass-Through Transfer.

    

    Exchange
      Act:
      The
      Securities Exchange Act of 1934, as amended.

    

    Master
      Servicer:
      With
      respect to any Pass-Through Transfer, the “master servicer,” if any, identified
      in the related transaction documents.

    

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

    

    Qualified
      Correspondent:
      Any Person from which the Company purchased Mortgage Loans, provided that the
      following conditions are satisfied: (i) such Mortgage Loans were originated
      pursuant to an agreement between the Company and such Person that contemplated
      that such Person would underwrite mortgage loans from time to time, for sale
      to
      the Company, in accordance with underwriting guidelines designated by the
      Company (“Designated Guidelines”) or guidelines that do not vary materially from
      such Designated Guidelines; (ii) such Mortgage Loans were in fact underwritten
      as described in clause (i) above and were acquired by the Company within 180
      days after origination; (iii) either (x) the Designated Guidelines were, at
      the
      time such Mortgage Loans were originated, used by the Company in origination
      of
      mortgage loans of the same type as the Mortgage Loans for the Company’s own
      account or (y) the Designated Guidelines were, at the time such Mortgage Loans
      were underwritten, designated by the Company on a consistent basis for use
      by
      lenders in originating mortgage loans to be purchased by the Company; and (iv)
      the Company employed, at the time such Mortgage Loans were acquired by the
      Company, pre-purchase or post-purchase quality assurance procedures (which
      may
      involve, among other things, review of a sample of mortgage loans purchased
      during a particular time period or through particular channels) designed to
      ensure that Persons from which it purchased mortgage loans properly applied
      the
      underwriting criteria designated by the Company.

    

    Regulation
      AB:
      Subpart
      229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as 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.

    

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

    

    Servicing
      Criteria:
      As of
      any date of determination, the “servicing criteria” set forth in Item 1122(d) of
      Regulation AB, or any amendments thereto, a summary of the requirements of
      which
      as of the date hereof is attached hereto as Exhibit
      M
      for
      convenience of reference only. In the event of a conflict or inconsistency
      between the terms of Exhibit
      M
      and the
      text of Item 1122(d) of Regulation AB, the text of Item 1122(d) of Regulation
      AB
      shall control (or those Servicing Criteria otherwise mutually agreed to by
      the
      Purchaser, the Company and any Person that will be responsible for signing
      any
      certification required under the Sarbanes-Oxley Act of 2002 with respect to
      a
      Pass-Through Transfer in response to evolving interpretations of Regulation
      AB
      and incorporated into a revised Exhibit
      M).

    

    Static
      Pool Information:
      Static
      pool information as described in Item 1105(a)(1)-(3) and 1105(c) of Regulation
      AB.

    

    Subcontractor:
      Any
      vendor, subcontractor or other Person that is not responsible for the overall
      servicing (as “servicing” is commonly understood by participants in the
      mortgage-backed securities market) of 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 the Company or a Subservicer.
      

    

    Third-Party
      Originator:
      Each
      Person, other than a Qualified Correspondent, that originated Mortgage Loans
      acquired by the Company.

    

    3.      Article
      I
      of the Agreement is hereby amended effective as of the date hereof by deleting
      in its entirety the definition of Subservicer in Section 1.01 and replacing
      it
      with the following:

    

    Subservicer:
      Any
      Person that services Mortgage Loans on behalf of the Company or any Subservicer
      and is responsible for the performance (whether directly or through Subservicers
      or Subcontractors) of a substantial portion of the material servicing functions
      required to be performed by the Company under this Agreement or any
      Reconstitution Agreement that are identified in Item 1122(d) of Regulation
      AB.
      Any subservicer shall meet the qualifications set forth in Section
      4.01.

    

    4.      Article
      I
      of the Agreement is hereby amended effective as of the date hereof by deleting
      in its entirety the definition of Principal Prepayment in Section 1.01 and
      replacing it with the following:

    

    Principal
      Prepayment:
      Any
      payment or other recovery of principal on a Mortgage Loan full or partial which
      is received in advance of its scheduled Due Date, including any Prepayment
      Charge and which 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.

    

    5.      Article
      III of the Agreement is hereby amended effective as of the date hereof by
      revising Section 3.01(n) as follows (new text underlined):

    

    (n) Company
      has delivered to the Purchaser financial statements of its parent, for its
      last
      two complete fiscal years as requested. All such financial information fairly
      presents the pertinent results of operations and financial position for the
      period identified and has been prepared in accordance with GAAP throughout
      the
      periods involved, except as set forth in the notes thereto. There has been
      no
      change in the servicing
      policies and procedures,
      business, operations, financial condition, properties or assets of the Company
      since the date of the Company’s financial information that would have a material
      adverse effect on its ability to perform its obligations under this
      Agreement;

    

    6.      Article
      III of the Agreement is hereby amended effective as of the date hereof by adding
      the following new Section 3.01(p):

    

    (p) As
      of the
      date of each Pass-Through Transfer, and except as has been otherwise disclosed
      to the Purchaser, any Master Servicer and any Depositor: (1) no default or
      servicing related performance trigger has occurred as to any other
      securitization due to any act or failure to act of the Company; (2) no material
      noncompliance with applicable servicing criteria as to any other securitization
      has occurred, been disclosed or reported by the Company; (3) the Company 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; (4) no material changes to the Company’s servicing policies and
      procedures for similar loans has occurred in the preceding three years; (5)
      there are no aspects of the Company’s financial condition that could have a
      material adverse impact on the performance by the Company of its obligations
      hereunder; (6) there are no legal proceedings pending, or known to be
      contemplated by governmental authorities, against the Company that could be
      material to investors in the securities issued in such Pass-Through Transfer;
      and (7) there are no affiliations, relationships or transactions relating to
      the
      Company of a type that are described under Item 1119 of Regulation
      AB.

    

    7.      Article
      III of the Agreement is hereby amended effective as of the date hereof by adding
      the following new Section 3.02(iii):

    

    With
      respect to each Mortgage Loan, information regarding the borrower credit files
      related to such Mortgage Loan has been furnished to credit reporting agencies
      in
      compliance with the provisions of the Fair Credit Reporting Act and the
      applicable implementing regulations.

    

    8.      Article
      IV of the Agreement is hereby amended effective as of the date hereof by adding
      this sentence after the first sentence of Section 4.01:

    

    In
      addition, the Company shall furnish information regarding the borrower credit
      files related to such Mortgage Loan to credit reporting agencies in compliance
      with the provisions of the Fair Credit Reporting Act and the applicable
      implementing regulations.

    

    9.     Article
      IV of the Agreement is hereby amended effective as of the date hereof by
      deleting in its entirety the last paragraph of Section 4.02 and replacing it
      with the following:

    

    The
      Company shall not waive any Prepayment Charge unless: (i) the enforceability
      thereof shall have been limited by bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights generally,
      (ii) the enforcement thereof is illegal, or any local, state or federal agency
      has threatened legal action if the prepayment penalty is enforced, (iii) the
      mortgage debt has been accelerated in connection with a foreclosure or other
      involuntary payment or (iv) such waiver is standard and customary in servicing
      similar Mortgage Loans and relates to a default or a reasonably foreseeable
      default and would, in the reasonable judgment of the Company, maximize recovery
      of total proceeds taking into account the value of such Prepayment Charge and
      the related Mortgage Loan. If a Prepayment Charge is waived, but does not meet
      the standards described above, then the Company is required to pay the amount
      of
      such waived Prepayment Charge by remitting such amount to the Purchaser by
      the
      Remittance Date.

    

    10.   Article
      IV of the Agreement is hereby amended effective as of the date hereof by
      revising the first paragraph of Section 4.03 by adding the following after
      the
      first sentence:

    

    In
      determining the delinquency status of any Mortgage Loan, the Company will use
      Delinquency
      Recognition Policies to be provided by EMC or
      as
      described to and approved by the Purchaser, and shall revise these policies
      as
      reasonably requested by the Purchaser from time to time.

    

    11.   Article
      V
      of the Agreement is hereby amended effective as of the date hereof by deleting
      Section 5.02 in its entirety and replacing it with the following:

    

    Section
      5.02 Statements
      to the Purchaser.

    

    The
      Company shall furnish to Purchaser an individual loan accounting report, as
      of
      the last Business Day of each month, in the Company's assigned loan number
      order
      to document Mortgage Loan payment activity on an individual Mortgage Loan basis.
      With respect to each month, the corresponding individual loan accounting report
      shall be received by the Purchaser no later than the fifth Business Day of
      the
      following month on a disk or tape or other computer-readable format in such
      format as may be mutually agreed upon by both Purchaser and Company, and no
      later than the fifth Business Day of the following month in hard copy, and
      shall
      contain the following:

    

    (i)      with
      respect to each Mortgage Loan and each Monthly Payment, the amount of such
      remittance allocable to principal (including a separate breakdown of any
      Principal Prepayment, including the date of such prepayment, and any prepayment
      penalties or premiums, along with a detailed report of interest on principal
      prepayment amounts remitted in accordance with Section 4.04);

    

    (ii)      with
      respect to each Mortgage Loan and each Monthly Payment, the amount of such
      remittance allocable to interest;

    

    (iii)      with
      respect to each Mortgage Loan, the amount of servicing compensation received
      by
      the Company during the prior distribution period;

    

    (iv)      the
      Stated Principal Balance of each Mortgage Loan and the aggregate Stated
      Principal Balance of all Mortgage Loans as of the first day of the distribution
      period and the last day of the distribution period;

    

    (v)      with
      respect to each Mortgage Loan, the current Mortgage Interest Rate;

    

    (vi)      with
      respect to each Mortgage Loan, the aggregate amount of any Insurance Proceeds,
      Condemnation Proceeds, Liquidation Proceeds and REO Disposition Proceeds
      received during the prior distribution period;

    

    (vii)      with
      respect to each Mortgage Loan, the amount of any Prepayment Interest Shortfalls
      paid by the Company in accordance with Section 4.04(viii) during the prior
      distribution period; 

    

    (viii)      the
      beginning and ending balances of the Custodial Account and Escrow
      Account;

    

    (ix)      the
      number of Mortgage Loans as of the first day of the distribution period and
      the
      last day of the distribution period; 

    

    (x)      with
      respect to each Mortgage Loan, the Stated Principal Balance of each Mortgage
      Loan (a) delinquent as grouped in the following intervals through final
      liquidation of such Mortgage Loan: 30 to 59 days, 60 to 89 days, 90 days or
      more; (b) as to which foreclosure has commenced; and (c) as to which REO
      Property has been acquired;

    

    (xi)      with
      respect to each Mortgage Loan, the amount and severity of any realized loss
      following liquidation of such Mortgage Loan; 

    

    (xii)      with
      respect to each Mortgage Loan, and in the aggregate for all Mortgage Loans,
      the
      amount of any Monthly Advances made by the Company during the prior distribution
      period; 

    

    (xiii)      with
      respect to each Mortgage Loan, a description of any Servicing Advances made
      by
      the Company with respect to such Mortgage Loan including the amount, terms
      and
      general purpose of such Servicing Advances, and the aggregate amount of
      Servicing Advances for all Mortgage Loans during the prior distribution
      period;

    

    (xiv)      with
      respect to each Mortgage Loan, a description of any Nonrecoverable Advances
      made
      by the Company with respect to such Mortgage Loan including the amount, terms
      and general purpose of such Nonrecoverable Advances, and the aggregate amount
      of
      Nonrecoverable Advances for all Mortgage Loans during the prior distribution
      period;

    

    (xv)      with
      respect to each Mortgage Loan, a description of any Monthly Advances, Servicing
      Advances and Nonrecoverable Advances reimbursed to the Company with respect
      to
      such Mortgage Loan during the prior distribution period pursuant to Section
      4.05, and the source of funds for such reimbursement, and the aggregate amount
      of any Monthly Advances, Servicing Advances and Nonrecoverable Advances
      reimbursed to the Company for all Mortgage Loans during the prior distribution
      period pursuant to Section 4.05; 

    

    (xvi)      with
      respect to any Mortgage Loan, a description of any material modifications,
      extensions or waivers to the terms, fees, penalties or payments of such Mortgage
      Loan during the prior distribution period or that have cumulatively become
      material over time;

    

    (xvii)    a
      description of any material breach of a representation or warranty set forth
      in
      Section 3.01 or Section 3.02 herein or of any other breach of a covenant or
      condition contained herein and the status of any resolution of such
      breach;

    

    (xviii)    
      with
      respect to each Mortgage Loan, the Stated Principal Balance of any substitute
      Mortgage Loan provided by the Company and the Stated Principal Balance of any
      Mortgage Loan that has been replaced by a substitute Mortgage Loan in accordance
      with Section 3.03 herein; and

    

    (xix)     with
      respect to each Mortgage Loan, the Stated Principal Balance of any Mortgage
      Loan
      that has been repurchased by the Company in accordance with Section 3.03
      herein.

    

    In
      addition, the Company shall provide to the Purchaser such other information
      known or available to the Company that is necessary in order to provide the
      distribution and pool performance information as required under Item 1121 of
      Regulation AB, as amended from time to time, as determined by the Purchaser
      in
      its sole discretion. The Company shall also provide a monthly report, in the
      form of Exhibit
      E
      hereto,
      or such other form as is mutually acceptable to the Company, the Purchaser
      and
      any Master Servicer, Exhibit
      F
      with
      respect to defaulted mortgage loans and Exhibit
      P,
      with
      respect to realized losses and gains, with each such report. 

    

    The
      Company shall prepare and file any and all information statements or other
      filings required to be delivered to any governmental taxing authority or to
      Purchaser pursuant to any applicable law with respect to the Mortgage Loans
      and
      the transactions contemplated hereby. In addition, the Company shall provide
      Purchaser with such information concerning the Mortgage Loans as is necessary
      for Purchaser to prepare its federal income tax return as Purchaser may
      reasonably request from time to time.

    

    In
      addition, not more than ninety (90) days after the end of each calendar year,
      the Company shall furnish to each Person who was a Purchaser at any time during
      such calendar year an annual statement in accordance with the requirements
      of
      applicable federal income tax law as to the aggregate of remittances for the
      applicable portion of such year.

    

    12.      Article
      VI of the Agreement is hereby amended effective as of the date hereof by
      deleting Section 6.04 in its entirety and replacing it with the
      following:

    

    Section
      6.04 Annual
      Statement as to Compliance; Annual Certification.

    

    (a) The
      Company will deliver to the Purchaser and any Master Servicer, not later than
      March 1 of each calendar year beginning in 2007, an officers’ certificate
      acceptable to the Purchaser (an “Annual Statement of Compliance”) stating, as to
      each signatory thereof, that (i) a review of the activities of the Company
      during the preceding calendar year and of performance under this Agreement
      or
      other applicable servicing agreement has been made under such officers’
supervision and (ii) to the best of such officers’ knowledge, based on such
      review, the Company has fulfilled all of its obligations under this Agreement
      or
      other applicable servicing agreement in all material respects throughout such
      year, 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 of cure provisions thereof. Such Annual Statement of
      Compliance shall contain no restrictions or limitations on its use that would
      prohibit the Purchaser, the Depositor or any Master Servicer to comply with
      the
      Securities Act, the Exchange Act and the rules and regulations of the Commission
      thereunder, and its filing under such laws and regulations. Copies of such
      statement shall be provided by the Company to the Purchaser upon request and
      by
      the Purchaser to any Person identified as a prospective purchaser of the
      Mortgage Loans. In the event that the Company has delegated any servicing
      responsibilities with respect to the Mortgage Loans to a Subservicer, the
      Company shall deliver an Annual Statement of Compliance of the Subservicer
      as
      described above as to each Subservicer as and when required with respect to
      the
      Company.

    

    (b) With
      respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
      by March 1 of each calendar year beginning in 2007, an officer of the Company
      shall execute and deliver an officer’s certificate (an “Annual Certification”)
      to the Purchaser, any Master Servicer and any related Depositor for the benefit
      of each such entity and such entity’s affiliates and the officers, directors and
      agents of any such entity and such entity’s affiliates, in the form attached
      hereto as Exhibit
      L.
      In the
      event that the Company has delegated any servicing responsibilities with respect
      to the Mortgage Loans to a Subservicer, the Company shall deliver an Annual
      Certification of the Subservicer as described above as to each Subservicer
      as
      and when required with respect to the Company.

    

    (c) If
      the
      Company cannot deliver the related Annual Statement of Compliance and Annual
      Certification by March 1st
      of such
      year, the Purchaser, at its sole option, may permit a cure period for the
      Company to deliver such Annual Statement of Compliance and Annual Certification,
      but in no event later than March 15th
      of such
      year.

    

    (d) Failure
      of the Company to timely comply with this Section 6.04 shall be deemed an Event
      of Default, automatically, without notice and without any cure period, unless
      otherwise agreed to by the Purchaser as set forth in 6.04(c), and Purchaser
      may,
      in addition to whatever rights the Purchaser may have under Sections 3.03 and
      8.01 and at law or equity or to damages, including injunctive relief and
      specific performance, terminate all the rights and obligations of the Company
      under this Agreement and in and to the Mortgage Loans and the proceeds thereof
      without compensating the Company for the same, as provided in Section 9.01.
      Such
      termination shall be considered with cause pursuant to Section 10.01 of this
      Agreement. This paragraph shall supercede any other provision in this Agreement
      or any other agreement to the contrary.

    

    13.      Article
      VI of the Agreement is hereby amended effective as of the date hereof by
      deleting Section 6.05 in its entirety and replacing it with the
      following:

    

    Section
      6.05 [Reserved]

    

    14.      Article
      VI of the Agreement is hereby amended effective as of the date hereof by adding
      the following new Section 6.07:

    

    Section
      6.07 Assessment
      of Compliance with Servicing Criteria.

    

    On
      and
      after January 1, 2006, the Company shall service and administer, and shall
      cause
      each subservicer to servicer or administer, the Mortgage Loans in accordance
      with all applicable requirements of the Servicing Criteria.

    

    With
      respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
      the Company shall deliver to the Purchaser or its designee, any Master Servicer
      and any Depositor on or before March 1 of each calendar year beginning in 2007,
      a report (an “Assessment of Compliance”) reasonably satisfactory to the
      Purchaser, any Master Servicer and any Depositor regarding the Company’s
      assessment of compliance with the Servicing Criteria during the preceding
      calendar year as required by Rules 13a-18 and 15d-18 of the Exchange Act and
      Item 1122 of Regulation AB or as otherwise reasonably required by the Master
      Servicer, which as of the date hereof, require a report by an authorized officer
      of the Company that contains the following:

    

    (a) A
      statement by such officer of its responsibility for assessing compliance with
      the Servicing Criteria applicable to the Company;

    

    (b) A
      statement by such officer that such officer used the Servicing Criteria to
      assess compliance with the Servicing Criteria applicable to the
      Company;

    

    (c) An
      assessment by such officer of the Company’s compliance with the applicable
      Servicing Criteria for the period consisting of the preceding calendar year,
      including disclosure of any material instance of noncompliance with respect
      thereto during such period, which assessment shall be based on the activities
      it
      performs with respect to asset-backed securities transactions taken as a whole
      involving the Company, that are backed by the same asset type as the Mortgage
      Loans;

    

    (d) A
      statement that a registered public accounting firm has issued an attestation
      report on the Company’s Assessment of Compliance for the period consisting of
      the preceding calendar year; and

    

    (e) A
      statement as to which of the Servicing Criteria, if any, are not applicable
      to
      the Company, which statement shall be based on the activities it performs with
      respect to asset-backed securities transactions taken as a whole involving
      the
      Company, that are backed by the same asset type as the Mortgage
      Loans.

    

    Such
      report at a minimum shall address each of the Servicing Criteria specified
      on a
      certification substantially in the form of Exhibit
      O
      hereto
      delivered to the Company concurrently with the execution of this
      Agreement.

    

    With
      respect to any Mortgage Loans that are the subject of a Pass-Through Transfer,
      on or before March 1 of each calendar year beginning in 2007, the Company shall
      furnish to the Purchaser or its designee, any Master Servicer and any Depositor
      a report (an “Attestation Report”) by a registered public accounting firm that
      attests to, and reports on, the Assessment of Compliance made by the Company,
      as
      required by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of
      Regulation AB or as otherwise reasonably required by the Master Servicer, which
      Attestation Report must be made in accordance with standards for attestation
      reports issued or adopted by the Public Company Accounting Oversight Board.
      

    

    The
      Company shall cause each Subservicer, and each Subcontractor determined by
      the
      Company pursuant to Section 11.20 to be “participating in the servicing
      function” within the meaning of Item 1122 of Regulation AB, to deliver to the
      Purchaser, any Master Servicer and any Depositor an assessment of compliance
      and
      accountants’ attestation as and when provided in Sections 6.07.

    

    If
      the
      Company cannot deliver the related Assessment of Compliance or Attestation
      Report by March 1st
      of such
      year, the Purchaser, at its sole option, may permit a cure period for the
      Company to deliver such Assessment of Compliance or Attestation Report, but
      in
      no event later than March 15th
      of such
      year.

    

    Failure
      of the Company to timely comply with this Section 6.07 shall be deemed an Event
      of Default, automatically, without notice and without any cure period, unless
      otherwise agreed to by the Purchaser as described herein, and Purchaser may,
      in
      addition to whatever rights the Purchaser may have under Sections 3.03 and
      8.01
      and at law or equity or to damages, including injunctive relief and specific
      performance, terminate all the rights and obligations of the Company under
      this
      Agreement and in and to the Mortgage Loans and the proceeds thereof without
      compensating the Company for the same, as provided in Section 9.01. Such
      termination shall be considered with cause pursuant to Section 10.01 of this
      Agreement. This paragraph shall supercede any other provision in this Agreement
      or any other agreement to the contrary.

    

    15.      Article
      VI of the Agreement is hereby amended effective as of the date hereof by adding
      the following new Section 6.08:

    

    Section
      6.08 Intent
      of the Parties; Reasonableness.

    

    The
      Purchaser and the Company acknowledge and agree that a purpose of Sections
      3.01(p), (q), (r) and (s), 5.02, 6.04, 6.07, 11.18 and 11.20 of this Agreement
      is to facilitate compliance by the Purchaser and any Depositor with the
      provisions of Regulation AB and related rules and regulations of the Commission.
      None of the Purchaser, any Master Servicer or any Depositor shall exercise
      its
      right to request delivery of information or other performance under these
      provisions other than in good faith, or for purposes other than compliance
      with
      the Securities Act, the Exchange Act and the rules and regulations of the
      Commission thereunder. The Company acknowledges that interpretations of the
      requirements of Regulation AB may change over time, whether due to interpretive
      guidance provided by the Commission or its staff, consensus among participants
      in the asset-backed securities markets, advice of counsel, or otherwise, and
      agrees to comply with requests made by the Purchaser or any Depositor in good
      faith for delivery of information under these provisions on the basis of
      evolving interpretations of Regulation AB. In connection with any Pass-Through
      Transfer, the Company shall cooperate fully with the Purchaser to deliver to
      the
      Purchaser (including any of its assignees or designees) and any Depositor,
      any
      and all statements, reports, certifications, records and any other information
      necessary in the good faith determination of the Purchaser or any Depositor
      to
      permit the Purchaser or such Depositor to comply with the provisions of
      Regulation AB, together with such disclosures relating to the Company, any
      Subservicer, any Third-Party Originator and the Mortgage Loans, or the servicing
      of the Mortgage Loans, reasonably believed by the Purchaser or any Depositor
      to
      be necessary in order to effect such compliance.

    

    16.      Article
      IX of the Agreement is hereby amended effective as of the date hereof by
      deleting the first sentence of the last paragraph of Section 9.01 and replacing
      it with the following (new text underlined):

    

    Then,
      and
      in each and every such case, so long as an Event of Default shall not have
      been
      remedied, the Purchaser, by notice in writing to the Company (except in the
      case
      of an Event of Default under clauses (iii), (iv) or (v) above, or
      as
      otherwise stated herein,
      in
      which case, automatically and without notice) Company may, in addition to
      whatever rights the Purchaser may have under Sections 3.03 and 8.01 and at
      law
      or equity or to damages, including injunctive relief and specific performance,
      terminate all the rights and obligations of the Company (and
      if the Company is servicing any of the Mortgage Loans in a Pass-Through
      Transfer, appoint a successor servicer reasonably acceptable to any Master
      Servicer for such Pass-Through Transfer)
      under
      this Agreement and in and to the Mortgage Loans and the proceeds thereof without
      compensating the Company for the same.

     

    17.      Article
      IX of the Agreement is hereby amended effective as of the date hereof by adding
      the following at the end of the last paragraph of Section 9.01:

    

    The
      Company shall promptly reimburse the Purchaser (or any designee of the
      Purchaser, such as a Master Servicer) and any Depositor, as applicable, for
      all
      reasonable expenses incurred by the Purchaser (or such designee) or such
      Depositor, as such are incurred, in connection with the termination of the
      Company as servicer and the transfer of servicing of the Mortgage Loans to
      a
      successor servicer. The provisions of this paragraph shall not limit whatever
      rights the Purchaser or any Depositor may have under other provisions of this
      Agreement and/or any applicable Reconstitution Agreement or otherwise, whether
      in equity or at law, such as an action for damages, specific performance or
      injunctive relief.

     

    18.      Article
      XI of the Agreement is hereby amended effective as of the date hereof by
      restating Section 11.18 in its entirety as follows:

    

    Section
      11.18. Cooperation
      of Company with a Reconstitution.

    

    The
      Company and the Purchaser agree that with respect to some or all of the Mortgage
      Loans, on or after the related Closing Date, on one or more dates (each a
      "Reconstitution Date") at the Purchaser's sole option, the Purchaser may effect
      a sale (each, a "Reconstitution") of some or all of the Mortgage Loans then
      subject to this Agreement, without recourse, to:

    

    (a)      one
      or
      more third party purchasers in one or more in whole loan transfers (each, a
      "Whole Loan Transfer"); or

    

    (b)      one
      or
      more trusts or other entities to be formed as part of one or more Pass-Through
      Transfers.

    

    The
      Purchaser and the Company agree that in no event shall there be more than three
      (3) Reconstitutions per Mortgage Loan pool.

    

    The
      Company agrees to execute in connection with any agreements among the Purchaser,
      the Company, and any servicer in connection with a Whole Loan Transfer, an
      Assignment, Assumption and Recognition Agreement substantially in the form
      of
Exhibit
      D
      hereto,
      or, at Purchaser’s request, a seller's warranties and servicing agreement or a
      participation and servicing agreement or similar agreement in form and substance
      reasonably acceptable to the parties, and in connection with a Pass-Through
      Transfer, a pooling and servicing agreement in form and substance reasonably
      acceptable to the parties, (collectively the agreements referred to herein
      are
      designated, the “Reconstitution Agreements”). It is understood that any such
      Reconstitution Agreements will not contain any greater obligations on the part
      of Company than are contained in this Agreement. Notwithstanding anything to
      the
      contrary in this Section 11.18, the Company agrees that it is required to
      perform the obligations described in Exhibit
      K
      hereto.

    

    With
      respect to each Whole Loan Transfer and each Pass-Through Transfer entered
      into
      by the Purchaser, the Company agrees (1) to cooperate fully with the Purchaser
      and any prospective purchaser with respect to all reasonable requests and due
      diligence procedures; (2) to execute, deliver and perform all Reconstitution
      Agreements required by the Purchaser; (3) to restate the representations and
      warranties set forth in this Agreement as of the settlement or closing date
      in
      connection with such Reconstitution (each, a "Reconstitution Date").

    

    In
      addition, the Company shall provide to such servicer or issuer, as the case
      may
      be, and any other participants in such Reconstitution: 

    

    (i)      any
      and
      all information and appropriate verification of information which may be
      reasonably available to the Company, whether through letters of its auditors
      and
      counsel (excluding that protected by the attorney-client privilege unless
      waived) or otherwise, as the Purchaser or any such other participant shall
      request upon reasonable demand; 

    

    (ii)      such
      additional representations, warranties, covenants, letters from auditors, and
      certificates of public officials or officers of the Company as are reasonably
      agreed upon by the Company and the Purchaser or any such other
      participant;

    

    (iii)      within
      5
      Business Days after request by the Purchaser, the information with respect
      to
      the Company (as originator) and each Third-Party Originator of the Mortgage
      Loans as required under Item 1110(a) and (b) of Regulation AB, a summary of
      the
      requirements of which has of the date hereof is attached hereto as Exhibit
      N
      for
      convenience of reference only, as determined by Purchaser in its sole
      discretion. If requested by the Purchaser, this will include information about
      the applicable credit-granting or underwriting criteria;

    

    (iv)      within
      5
      Business Days after request by the Purchaser, the Company shall provide (or,
      as
      applicable, cause each Third-Party Originator to provide) Static Pool
      Information with respect to the mortgage loans (of a similar type as the
      Mortgage Loans, as reasonably identified by the Purchaser as provided below)
      originated by (i) the Company, if the Company is an originator of Mortgage
      Loans
      (including as an acquirer of Mortgage Loans from a Qualified Correspondent),
      and/or (ii) each Third-Party Originator. Such Static Pool Information shall
      be
      prepared by the Company (or Third-Party Originator) on the basis of its
      reasonable, good faith interpretation of the requirements of Item 1105(a)(1)-(3)
      and (c) of Regulation AB. To the extent that there is reasonably available
      to
      the Company (or Third-Party Originator) Static Pool Information with respect
      to
      more than one mortgage loan type, the Purchaser or any Depositor shall be
      entitled to specify whether some or all of such information shall be provided
      pursuant to this paragraph. The content of such Static Pool Information may
      be
      in the form customarily provided by the Company, and need not be customized
      for
      the Purchaser or any Depositor. Such Static Pool Information for each vintage
      origination year or prior securitized pool, as applicable, shall be presented
      in
      increments no less frequently than quarterly over the life of the mortgage
      loans
      included in the vintage origination year or prior securitized pool. The most
      recent periodic increment must be as of a date no later than 135 days prior
      to
      the date of the prospectus or other offering document in which the Static Pool
      Information is to be included or incorporated by reference. The Static Pool
      Information shall be provided in an electronic format that provides a permanent
      record of the information provided, such as a portable document format (pdf)
      file, or other such electronic format reasonably required by the Purchaser
      or
      the Depositor, as applicable;

    

    (v)      within
      5
      Business Days after request by the Purchaser, information with respect to the
      Company (as servicer) as required by Item 1108(b) and (c) of Regulation AB,
      a
      summary of the requirements of which as of the date hereof is attached hereto
      as
Exhibit
      N
      for
      convenience of reference only, as determined by Purchaser in its sole
      discretion. In the event that the Company has delegated any servicing
      responsibilities with respect to the Mortgage Loans to a Subservicer, the
      Company shall provide the information required pursuant to this clause with
      respect to the Subservicer;

    

    (vi)   
           within
      5
      Business Days after request by the Purchaser, 

    (a)
      information regarding any legal proceedings pending (or known to be
      contemplated) against the Company (as originator and as servicer) and each
      other
      originator of the Mortgage Loans and each Subservicer as required by Item 1117
      of Regulation AB, a summary of the requirements of which as of the date hereof
      is attached hereto as Exhibit N for convenience of reference only, as determined
      by Purchaser in its sole discretion,

    (b)
      information regarding affiliations with respect to the Company (as originator
      and as servicer) and each other originator of the Mortgage Loans and each
      Subservicer as required by Item 1119(a) of Regulation AB, a summary of the
      requirements of which as of the date hereof is attached hereto as Exhibit
      N
      for
      convenience of reference only, as determined by Purchaser in its sole
      discretion, and

    (c)
      information regarding relationships and transactions with respect to the Company
      (as originator and as servicer) and each other originator of the Mortgage Loans
      and each Subservicer as required by Item 1119(b) and (c) of Regulation AB,
      a
      summary of the requirements of which as of the date hereof is attached hereto
      as
Exhibit
      N
      for
      convenience of reference only, as determined by Purchaser in its sole
      discretion; 

    

    (vii)       
      if
      so
      requested by the Purchaser, the Company shall provide (or, as applicable, cause
      each Third-Party Originator to provide), at the expense of the requesting party
      (to the extent of any additional incremental expense associated with delivery
      pursuant to this Agreement), such statements and agreed-upon procedures letters
      of certified public accountants reasonably acceptable to the Purchaser or
      Depositor, as applicable, pertaining to Static Pool Information relating to
      prior securitized pools for securitizations closed on or after January 1, 2006
      or, in the case of Static Pool Information with respect to the Company’s or
      Third-Party Originator’s originations or purchases, to calendar months
      commencing January 1, 2006, or to any financial information included in any
      other disclosure provided under this Section 11.18, as the Purchaser or such
      Depositor shall reasonably request. Such statements and letters shall be
      addressed to and be for the benefit of such parties as the Purchaser or such
      Depositor shall designate, which may include, by way of example, any Sponsor,
      any Depositor and any broker dealer acting as underwriter, placement agent
      or
      initial purchaser with respect to a Pass-Through Transfer. Any such statement
      or
      letter may take the form of a standard, generally applicable document
      accompanied by a reliance letter authorizing reliance by the addressees
      designated by the Purchaser or such Depositor; 

    

    (viii)     
      For the purpose of satisfying the reporting obligation under the Exchange Act
      with respect to any class of asset-backed securities, the Company shall (or
      shall cause each Subservicer and Third-Party Originator to) (i) within two
      (2)
      Business Days of the event described below, provide notice to the Purchaser,
      any
      Master Servicer and any Depositor in writing of (A) any material litigation
      or
      governmental proceedings involving the Company, any Subservicer or any
      Third-Party Originator, (B) any affiliations or relationships that develop
      following the closing date of a Pass-Through Transfer between the Company,
      any
      Subservicer or any Third-Party Originator and any of the parties specified
      in
      clause (D) of paragraph (a) of this Section (and any other parties identified
      in
      writing by the requesting party) with respect to such Pass-Through Transfer,
      (C)
      any Event of Default under the terms of this Agreement or any Reconstitution
      Agreement, (D) any merger, consolidation or sale of substantially all of the
      assets of the Company, and (E) the Company’s entry into an agreement with a
      Subservicer to perform or assist in the performance of any of the Company’s
      obligations under this Agreement or any Reconstitution Agreement and (ii)
      provide to the Purchaser, any Master Servicer and any Depositor a description
      of
      such proceedings, affiliations or relationships; 

     

    All
      notification pursuant to this Section 11.18 (viii)(B) should be sent
      to:

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067-3884

    Attention:
      Conduit Seller Approval Dept.

    Facsimile:
      (214) 626-3751

    Email:
      sellerapproval@bear.com

    

    With
      a
      copy to:

    

    Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue, 3rd Floor

    New,
      York, NY 10179

    Attention:
      Global Credit Administration

    Facsimile:
      (212) 272-6564

    

    Notifications
      pursuant to Section 11.18 (viii)(A) should be sent to: 

    

    EMC
      Mortgage Corporation

    Two
      Mac
      Arthur Ridge

    909
      Hidden Ridge Drive, Suite 200

    Irving,
      TX 75038

    Attention:
      Associate General Counsel for Loan Administration

    Facsimile:
      (972) 831-2555

    

    With
      copies to:

    

    Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue, 3rd Floor

    New,
      York, NY 10179

    Attention:
      Global Credit Administration

    Facsimile:
      (212) 272-6564

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067-3884

    Attention:
      Conduit Seller Approval Dept.

    Facsimile:
      (214) 626-3751

    Email:
      sellerapproval@bear.com

    

    (ix)     
      As a condition to the succession to the Company or any Subservicer as servicer
      or subservicer under this Agreement or any Reconstitution Agreement by any
      Person (i) into which the Company or such Subservicer may be merged or
      consolidated, or (ii) which may be appointed as a successor to the Company
      or
      any Subservicer (unless such successor has been appointed by the Purchaser,
      any
      Master Servicer or any Depositor), the Company shall provide to the Purchaser,
      any Master Servicer, and any Depositor, at least 15 calendar days prior to
      the
      effective date of such succession or appointment, (x) written notice to the
      Purchaser and any Depositor of such succession or appointment and (y) in writing
      and in form and substance reasonably satisfactory to the Purchaser and such
      Depositor, all information reasonably requested by the Purchaser or any
      Depositor in order to comply with its reporting obligation under Item 6.02
      of
      Form 8-K with respect to any class of asset-backed securities; 

    

    (x)     
      In addition to such information as the Company, as servicer, is obligated to
      provide pursuant to other provisions of this Agreement, not later than ten
      days
      prior to the deadline for the filing of any distribution report on Form 10-D
      in
      respect of any Pass-Through Transfer that includes any of the Mortgage Loans
      serviced by the Company or any Subservicer, the Company or such Subservicer,
      as
      applicable, shall, to the extent the Company or such Subservicer has knowledge,
      provide to the party responsible for filing such report (including, if
      applicable, the Master Servicer) notice of the occurrence of any of the
      following events along with all information, data, and materials related thereto
      as may be required to be included in the related distribution report on Form
      10-D (as specified in the provisions of Regulation AB referenced
      below):

    

    (A)      any
      material modifications, extensions or waivers of pool asset terms, fees,
      penalties or payments during the distribution period or that have cumulatively
      become material over time (Item 1121(a)(11) of Regulation AB);

    

    (B)      material
      breaches of pool asset representations or warranties or transaction covenants
      (Item 1121(a)(12) of Regulation AB); and

    

    (C)      information
      regarding new asset-backed securities issuances backed by the same pool assets,
      any pool asset changes (such as, additions, substitutions or repurchases),
      and
      any material changes in origination, underwriting or other criteria for
      acquisition or selection of pool assets (Item 1121(a)(14) of Regulation AB);
      and

    

    (xi)     
      The Company shall provide, as requested, to the Purchaser, any Master Servicer
      and any Depositor, evidence of the authorization of the person signing any
      certification or statement, copies or other evidence of Fidelity Bond Insurance
      and Errors and Omission Insurance policy, financial information and reports,
      and
      such other information related to the Company or any Subservicer or the Company
      or such Subservicer’s performance hereunder.

    

    In
      the
      event of a conflict or inconsistency between the terms of Exhibit N and the
      text
      of the applicable Item of Regulation AB as cited above, the text of Regulation
      AB, its adopting release and other public statements of the SEC shall
      control.

    

    (xii)      If
      so
      requested by the Purchaser or any Depositor on any date, the Company shall,
      within five Business Days following such request, confirm in writing the
      accuracy of the representations and warranties set forth in Section 3.01(p)
      of
      this Agreement or, if any such representation and warranty is not accurate
      as of
      the date of such request, provide reasonably adequate disclosure of the
      pertinent facts, in writing, to the requesting party.

    

    The
      Company shall indemnify the Purchaser, each affiliate of the Purchaser, and
      each
      of the following parties participating in a Pass-Through Transfer: each sponsor
      and issuing entity; each Person (including, but not limited to, any Master
      Servicer, if applicable) responsible for the preparation, execution or filing
      of
      any report required to be filed with the Commission with respect to such
      Pass-Through Transfer, or for execution of a certification pursuant to Rule
      13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
      Pass-Through Transfer; each broker dealer acting as underwriter, placement
      agent
      or initial purchaser, each Person who controls any of such parties or the
      Depositor (within the meaning of Section 15 of the Securities Act and Section
      20
      of the Exchange Act); and the respective present and former directors, officers,
      employees, agents and affiliates of each of the foregoing and of the Depositor
      (each, an “Indemnified Party”), and shall hold each of them harmless from and
      against any claims, losses, damages, penalties, fines, forfeitures, legal fees
      and expenses and related costs, judgments, and any other costs, fees and
      expenses that any of them may sustain arising out of or based upon:

    

    (i)(A)v
      any untrue statement of a material fact contained or alleged to be contained
      in
      any information, report, certification, data, accountants’ letter or other
      material provided under this Section 11.18 by or on behalf of the Company,
      or
      provided under this Section 11.18 by or on behalf of any Subservicer,
      Subcontractor or Third-Party Originator (collectively, the “Company
      Information”), or (B) the omission or alleged omission to state in the Company
      Information a material fact required to be stated in the Company Information
      or
      necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading; provided, by way
      of
      clarification, that clause (B) of this paragraph shall be construed solely
      by
      reference to the Company Information and not to any other information
      communicated in connection with a sale or purchase of securities, without regard
      to whether the Company Information or any portion thereof is presented together
      with or separately from such other information;

    

    (ii)     
      any breach by the Company of its obligations under this Section 11.18, including
      particularly any failure by the Company, any Subservicer, any Subcontractor
      or
      any Third-Party Originator to deliver any information, report, certification,
      accountants’ letter or other material when and as required under this Section
      11.18, including any failure by the Company to identify pursuant to Section
      11.20 any Subcontractor “participating in the servicing function” within the
      meaning of Item 1122 of Regulation AB; 

    

    (iii)     
      any breach by the Company of a representation or warranty set forth in Section
      3.01 or in a writing furnished pursuant to Section 3.01(q) and made as of a
      date
      prior to the closing date of the related Pass-Through Transfer, to the extent
      that such breach is not cured by such closing date, or any breach by the Company
      of a representation or warranty in a writing furnished pursuant to Section
      3.01(q) to the extent made as of a date subsequent to such closing date;
      or

     

    (iv)      the
      gross
      negligence, bad faith or willful misconduct of the Company in connection with
      its performance under this Section
      11.18;

    provided,
      however, that the Purchaser shall indemnify the Company and its present and
      former directors, officers, and employees and hold each of them harmless from
      and against any claims, losses, damages, penalties, fines, forfeitures, legal
      fees and expenses and related costs, judgments, and any other costs, fees and
      expenses that any of them may sustain from any untrue statement or alleged
      untrue statement of a material fact or the omission or alleged omission to
      state
      a material fact required to be stated in order to make the statements therein,
      in the light of the circumstances under which they were made, not misleading,
      contained in any prospectus or prospectus supplement containing Company
      Information not arising out of or based upon the Company
      Information.

    

      If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless an Indemnified Party, then the Company agrees that it shall contribute
      to the amount paid or payable by such Indemnified Party as a result of any
      claims, losses, damages or liabilities incurred by such Indemnified Party in
      such proportion as is appropriate to reflect the relative fault of such
      Indemnified Party on the one hand and the Company on the other. 

      

      In
      the
      case of any failure of performance described above, the Company shall promptly
      reimburse the Purchaser, any 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 such Pass-Through Transfer, or
      for
      execution of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under
      the Exchange Act with respect to such Pass-Through Transfer, 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 Company, any Subservicer, any Subcontractor or any Third-Party
      Originator.

    

    This
      indemnification shall survive the termination of this Agreement or the
      termination of any party to this Agreement.

    

    All
      Mortgage Loans not sold or transferred pursuant to a Reconstitution shall remain
      subject to, and serviced in accordance with the terms of, this Agreement and
      the
      related Term Sheet, and with respect thereto this Agreement and the related
      Term
      Sheet shall remain in full force and effect.

    

    The
      Purchaser agrees to reimburse the Company for its reasonable out-of-pocket
      expenses incurred in connection with any Reconstitution hereunder; provided,
      however, such amount shall not exceed $5,000 and shall be remitted by the
      Purchaser upon written request from the Company which shall be accompanied
      with
      receipts or bills detailing such expenses; provided, further, in the event
      that
      such amount exceeds $5,000, the Purchaser shall reimburse the Company if the
      Purchaser approves in writing of such expenses prior to when incurred by the
      Company.

    

    19.      Article
      XI of the Agreement is hereby amended effective as of the date hereof by adding
      the following new Section 11.20:

    

    Section
      11.20. Use
      of
      Subservicers and Subcontractors.

    

    (a)      The
      Company shall not hire or otherwise utilize the services of any Subservicer
      to
      fulfill any of the obligations of the Company as servicer under this Agreement
      or any Reconstitution Agreement unless the Company complies with the provisions
      of paragraph (b) of this Section. The Company shall not hire or otherwise
      utilize the services of any Subcontractor, and shall not permit any Subservicer
      to hire or otherwise utilize the services of any Subcontractor, to fulfill
      any
      of the obligations of the Company as servicer under this Agreement or any
      Reconstitution Agreement unless the Company complies with the provisions of
      paragraph (d) of this Section. 

    

    (b)      The
      Company shall cause any Subservicer used by the Company (or by any Subservicer)
      for the benefit of the Purchaser and any Depositor to comply with the provisions
      of this Section and with Sections 3.01(p), 3.01(s), 6.04, 6.07 and 11.18 of
      this
      Agreement to the same extent as if such Subservicer were the Company, and to
      provide the information required with respect to such Subservicer under Section
      3.01(r) of this Agreement. The Company shall be responsible for obtaining from
      each Subservicer and delivering to the Purchaser, any Master Servicer and any
      Depositor any Annual Statement of Compliance required to be delivered by such
      Subservicer under Section 6.04(a), any Assessment of Compliance and Attestation
      Report required to be delivered by such Subservicer under Section 6.07 and
      any
      Annual Certification required under Section 6.04(b) as and when required to
      be
      delivered.

    

    (c)      The
      Company shall promptly upon request provide to the Purchaser, any Master
      Servicer and any Depositor (or any designee of the Depositor, such as an
      administrator) a written description (in form and substance satisfactory to
      the
      Purchaser, any Master Servicer and such Depositor) of the role and function
      of
      each Subcontractor utilized by the Company or any Subservicer, specifying (i)
      the identity of each such Subcontractor, (ii) which (if any) of such
      Subcontractors are “participating in the servicing function” within the meaning
      of Item 1122 of Regulation AB, and (iii) which elements of the Servicing
      Criteria will be addressed in assessments of compliance provided by each
      Subcontractor identified pursuant to clause (ii) of this paragraph.

    

    (d)      As
      a
      condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, the Company shall cause any such Subcontractor used by the
      Company (or by any Subservicer) for the benefit of the Purchaser and any
      Depositor to comply with the provisions of Sections 6.07 and 11.18 of this
      Agreement to the same extent as if such Subcontractor were the Company. The
      Company shall be responsible for obtaining from each Subcontractor and
      delivering to the Purchaser and any Depositor any Assessment of Compliance
      and
      Attestation Report and the other certificates required to be delivered by such
      Subservicer and such Subcontractor under Section 6.07, in each case as and
      when
      required to be delivered.

    

    20.      Article
      XI of the Agreement is hereby amended effective as of the date hereof by adding
      the following new Section 11.21:

    

    Section
      11.21. Third
      Party Beneficiary.

    

    For
      purposes of this Agreement, each Master Servicer shall be considered a
      third party beneficiary to this Agreement, entitled to all the rights and
      benefits hereof as if it were a direct party to this
      Agreement.

    

    21.      The
      Agreement is hereby amended as of the date hereof by deleting Exhibit E in
      its
      entirety and replacing it with the following:

     

    EXHIBIT
      E

    

    REPORTING
      DATA FOR MONTHLY REPORT

    

    
      	
              Standard
                File Layout - Master Servicing

            
	
              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

            
	
              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

            

    

    

    22.      The
      Agreement is hereby amended as of the date hereof by adding the following new
      Exhibit F:

    EXHIBIT
      F

    

    REPORTING
      DATA FOR DEFAULTED LOANS

    

    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

            
	
              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 ($)

            

    

     

    Exhibit
      2: Standard
      File Codes - Delinquency Reporting

     

    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

            

    

     

    
      	·  	
              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

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      2: Standard
      File Codes - Delinquency Reporting, Continued

     

    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
      2: Standard
      File Codes - Delinquency Reporting, Continued

     

    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

            

    

     

    23.     The
      Agreement is hereby amended effective as of the date hereof by adding the
      following new Exhibit K:

    

    EXHIBIT
      K

    

    COMPANY’S
      OBLIGATIONS IN CONNECTION 

    WITH
      A
      RECONSTITUTION

    

    •      The
      Company shall (i) possess the ability to service to a securitization documents;
      (ii) service on a “Scheduled/Scheduled” reporting basis (advancing through the
      liquidation of an REO Property), (iii) make compensating interest payments
      on
      payoffs and curtailments and (iv) remit and report to a Master Servicer in
      format acceptable to such Master Servicer by the 10th calendar day of each
      month.

    

    •      The
      Company shall provide an acceptable annual certification (officer’s certificate)
      to the Master Servicer (as required by the Sarbanes-Oxley Act of 2002) as well
      as any other annual certifications required under the securitization documents
      (i.e. the annual statement as to compliance/annual independent certified public
      accountants’ servicing report due by March 1 of each year).

    

    •      The
      Company shall allow for the Purchaser, the Master Servicer or their designee
      to
      perform a review of audited financials and net worth of the
      Company.

    

    •      The
      Company shall provide a Uniform Single Attestation Program certificate and
      Management Assertion as requested by the Master Servicer or the
      Purchaser.

    

    •      The
      Company shall provide information on each Custodial Account as requested by
      the
      Master Servicer or the Purchaser, and each Custodial Accounts shall comply
      with
      the requirements for such accounts as set forth in the securitization
      documents.

    

    •      The
      Company shall maintain its servicing system in accordance with the requirements
      of the Master Servicer.

     

    24.  
      The
      Agreement is hereby amended effective as of the date hereof by adding the
      following new Exhibit L:

    

    EXHIBIT
      L

    

    FORM
      OF
      COMPANY CERTIFICATION

    

    Re: The
      [ ]
      agreement dated as of [ l,
      200[ ]
      (the “Agreement”), among [IDENTIFY PARTIES]

    

    I,
      ____________________________, the _______________________ of [NAME OF COMPANY]
      (the “Company”), certify to [the Purchaser], [the Depositor], and the [Master
      Servicer] [Securities Administrator] [Trustee], and their officers, with the
      knowledge and intent that they will rely upon this certification,
      that:

    

    I
      have
      reviewed the servicer compliance statement of the Company 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 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 the Company during 200[ ] that were delivered by the
      Company to the [Depositor] [Master Servicer] [Securities Administrator]
      [Trustee] pursuant to the Agreement (collectively, the “Company Servicing
      Information”);

    

    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;

    

    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] [Master
      Servicer] [Securities Administrator] [Trustee];

    

    I
      am
      responsible for reviewing the activities performed by the Company as servicer
      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
      Company has fulfilled its obligations under the Agreement in all material
      respects; and

    

    The
      Compliance Statement required to be delivered by the Company pursuant to this
      Agreement, and the Servicing Assessment and Attestation Report required to
      be
      provided by the Company and by any Subservicer and Subcontractor pursuant to
      the
      Agreement, have been provided to the [Depositor] [Master Servicer]. Any material
      instances of noncompliance described in such reports have been disclosed to
      the
      [Depositor] [Master Servicer]. Any material instance of noncompliance with
      the
      Servicing Criteria has been disclosed in such reports.

    

    25.     
      The
      Agreement is hereby amended effective as of the date hereof by adding the
      following new Exhibit M:

    

    EXHIBIT
      M

    

    SUMMARY
      OF REGULATION AB

    SERVICING
      CRITERIA

    

    NOTE:
      This Exhibit M is provided for convenience of reference only. In the event
      of a
      conflict or inconsistency between the terms of this Exhibit M and the text
      of
      Regulation AB, the text of Regulation AB, its adopting release and other public
      statements of the SEC shall control. 

    

    Item
      1122(d)

     

    
      	(a)  
                	
              General
                servicing considerations.

            

    

     

    (1)  Policies
      and procedures are instituted to monitor any performance or other triggers
      and
      events of default in accordance with the transaction agreements.

     

    (2)  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.

     

    (3)  Any
      requirements in the transaction agreements to maintain a back-up servicer for
      the mortgage loans are maintained.

     

    (4)  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.

     

    
      	(b)  
                	
              Cash
                collection and administration.

            

    

     

    (1)  Payments
      on mortgage loans 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.

     

    (2)  Disbursements
      made via wire transfer on behalf of an obligor or
      to an
      investor are made only by authorized personnel.

     

    (3)  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.

     

    (4)  The
      related accounts for the transaction, such as cash reserve accounts or accounts
      established as a form of overcollateralization, are separately maintained (e.g.,
      with respect to commingling of cash) as set forth in the transaction
      agreements.

     

    (5)  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.

     

    (6)  Unissued
      checks are safeguarded so as to prevent unauthorized access.

     

    (7)  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.

     

    
      	(c)  
                	
              Investor
                remittances and reporting.

            

    

     

    (1)  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 mortgage loans serviced by the
      Servicer.

     

    (2)  Amounts
      due to investors are allocated and remitted in accordance with timeframes,
      distribution priority and other terms set forth in the transaction
      agreements.

     

    (3)  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.

     

    (4)  Amounts
      remitted to investors per the investor reports agree with cancelled checks,
      or
      other form of payment, or custodial bank statements.

     

    
      	(d)   
               	
              Mortgage
                Loan administration.

            

    

     

    (1)  Collateral
      or security on mortgage loans is maintained as required by the transaction
      agreements or related mortgage loan documents.

     

    (2)  Mortgage
      loan and related documents are safeguarded as required by the transaction
      agreements.

     

    (3)  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.

     

    (4)  Payments
      on mortgage loans, including any payoffs, made in accordance with the related
      mortgage loan 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 mortgage loan
      documents.

     

    (5)  The
      Servicer’s records regarding the mortgage loans agree with the Servicer’s
      records with respect to an obligor’s unpaid principal balance.

     

    (6)  Changes
      with respect to the terms or status of an obligor’s mortgage loans (e.g., loan
      modifications or re-agings) are made, reviewed and approved by authorized
      personnel in accordance with the transaction agreements and related mortgage
      loan documents.

     

    (7)  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.

     

    (8)  Records
      documenting collection efforts are maintained during the period a mortgage
      loan
      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 mortgage loans including, for example, phone calls, letters and
      payment rescheduling plans in cases where delinquency is deemed temporary (e.g.,
      illness or unemployment).

     

    (9)  Adjustments
      to interest rates or rates of return for mortgage loans with variable rates
      are
      computed based on the related mortgage loan documents.

     

    (10)  Regarding
      any funds held in trust for an obligor (such as escrow accounts): (A) such
      funds
      are analyzed, in accordance with the obligor’s mortgage loan 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 mortgage loan documents and state laws; and (C)
      such
      funds are returned to the obligor within 30 calendar days of full repayment
      of
      the related mortgage loans, or such other number of days specified in the
      transaction agreements.

     

    (11)  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.

     

    (12)  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.

     

    (13)  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.

     

    (14)  Delinquencies,
      charge-offs and uncollectable accounts are recognized and recorded in accordance
      with the transaction agreements.

     

    (15)  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.

    

    26.           The
      Agreement is hereby amended effective as of the date hereof by adding the
      following new Exhibit N:

    EXHIBIT
      N

    

    SUMMARY
      OF APPLICABLE REGULATION AB REQUIREMENTS

    

    NOTE:
      This Exhibit N is provided for convenience of reference only. In the event
      of a
      conflict or inconsistency between the terms of this Exhibit N and the text
      of
      Regulation AB, the text of Regulation AB, its adopting release and other public
      statements of the SEC shall control. 

     

    Item
      1105(a)(1)-(3) and (c)

    

    -    
      Provide static pool information with respect to mortgage loans that were
      originated or purchased by the Company and which are of the same type as the
      Mortgage Loans.

     

    -    
      Provide static pool information regarding delinquencies, cumulative losses
      and
      prepayments for prior securitized pools of the Company.

     

    -    
      If the Company has less than 3 years experience securitizing assets of the
      same
      type as the Mortgage Loans, provide the static pool information by vintage
      origination years regarding loans originated or purchased by the Company,
      instead of by prior securitized pool. A vintage origination year represents
      mortgage loans originated during the same year.

     

    -    
      Such static pool information shall be for the prior five years, or for so long
      as the Company has been originating or purchasing (in the case of data by
      vintage origination year) or securitizing (in the case of data by prior
      securitized pools) such mortgage loans if for less than five years.

     

    -    
      The static pool information for each vintage origination year or prior
      securitized pool, as applicable, shall be presented in monthly increments over
      the life of the mortgage loans included in the vintage origination year or
      prior
      securitized pool.

     

    -    
      Provide summary information for the original characteristics of the prior
      securitized pools or vintage origination years, as applicable and material,
      including: number of pool assets, original pool balance, weighted average
      initial loan balance, weighted average mortgage rate, weighted average and
      minimum and maximum FICO, product type, loan purpose, weighted average and
      minimum and maximum LTV, distribution of loans by mortgage rate, and geographic
      concentrations of 5% or more.

     

    Item
      1108(b) and (c)

    

    Provide
      the following information with respect to each servicer that will service,
      including interim service, 20% or more of the mortgage loans in any loan group
      in the securitization issued in the Pass-Through Transfer: 

     

    -    
      a description of the Company’s form of organization;

     

    -    
      a description of how long the Company has been servicing residential mortgage
      loans; a general discussion of the Company’s experience in servicing assets of
      any type as well as a more detailed discussion of the Company’s experience in,
      and procedures for the servicing function it will perform under this Agreement
      and any Reconstitution Agreements; information regarding the size, composition
      and growth of the Company’s portfolio of mortgage loans of the type similar to
      the Mortgage Loans and information on factors related to the Company that may
      be
      material to any analysis of the servicing of the Mortgage Loans or the related
      asset-backed securities, as applicable, including whether any default or
      servicing related performance trigger has occurred as to any other
      securitization due to any act or failure to act of the Company, whether any
      material noncompliance with applicable servicing criteria as to any other
      securitization has been disclosed or reported by the Company, and the extent
      of
      outsourcing the Company uses;

     

    -    
      a description of any material changes to the Company’s policies or procedures in
      the servicing function it will perform under this Agreement and any
      Reconstitution Agreements for mortgage loans of the type similar to the Mortgage
      Loans during the past three years;

     

    -    
      information regarding the Company’s financial condition to the extent that there
      is a material risk that the effect on one or more aspects of servicing resulting
      from such financial condition could have a material impact on the performance
      of
      the securities issued in the Pass-Through Transfer, or on servicing of mortgage
      loans of the same asset type as the Mortgage Loans;

     

    -    
      any special or unique factors involved in servicing loans of the same type
      as
      the Mortgage Loans, and the Company’s processes and procedures designed to
      address such factors;

     

    -    
      statistical information regarding principal and interest advances made by the
      Company on the Mortgage Loans and the Company’s overall servicing portfolio for
      the past three years; and

     

    -    
      the Company’s process for handling delinquencies, losses, bankruptcies and
      recoveries, such as through liquidation of REO Properties, foreclosure, sale
      of
      the Mortgage Loans or workouts.

     

    Item
      1110(a)

    

    -    
      Identify any originator or group of affiliated originators that originated,
      or
      is expected to originate, 10% or more of the mortgage loans in any loan group
      in
      the securitization issued in the Pass-Through Transfer.

     

    Item
      1110(b)

    

    Provide
      the following information with respect to any originator or group of affiliated
      originators that originated, or is expected to originate, 20% or more of the
      mortgage loans in any loan group in the securitization issued in the
      Pass-Through Transfer:

     

    -    
      the Company’s form of organization; and

     

    -    
      a description of the Company’s origination program and how long the Company has
      been engaged in originating residential mortgage loans, which description must
      include a discussion of the Company’s experience in originating mortgage loans
      of the same type as the Mortgage Loans and information regarding the size and
      composition of the Company’s origination portfolio as well as information that
      may be material to an analysis of the performance of the Mortgage Loans, such
      as
      the Company’s credit-granting or underwriting criteria for mortgage loans of the
      same type as the Mortgage Loans.

     

    Item
      1117

    

    -    
      describe any legal proceedings pending against the Company or against any of
      its
      property, including any proceedings known to be contemplated by governmental
      authorities, that may be material to the holders of the securities issued in
      the
      Pass-Through Transfer.

     

    Item
      1119(a)

    

    -    
      describe any affiliations of the Company, each other originator of the Mortgage
      Loans and each Subservicer with the sponsor, depositor, issuing entity, trustee,
      any originator, any other servicer, any significant obligor, enhancement or
      support provider or any other material parties related to the Pass-Through
      Transfer.

     

    Item
      1119(b)

    

    -    
      describe any business relationship, agreement, arrangement, transaction or
      understanding entered into outside of the ordinary course of business or on
      terms other than those obtained in an arm’s length transaction with an unrelated
      third party, apart from the Pass-Through Transfer, between the Company, each
      other originator of the Mortgage Loans and each Subservicer, or their respective
      affiliates, and the sponsor, depositor or issuing entity or their respective
      affiliates, that exists currently or has existed during the past two years,
      that
      may be material to the understanding of an investor in the securities issued
      in
      the Pass-Through Transfer.

     

    Item
      1119(c)

    

    -    
      describe any business relationship, agreement, arrangement, transaction or
      understanding involving or relating to the Mortgage Loans or the Pass-Through
      Transfer, including the material terms and approximate dollar amount involved,
      between the Company, each other originator of the Mortgage Loans and each
      Subservicer, or their respective affiliates and the sponsor, depositor or
      issuing entity or their respective affiliates, that exists currently or has
      existed during the past two years.

     

    27.      The
      Agreement is hereby amended effective as of the date hereof by adding the
      following new Exhibit O:

    

    EXHIBIT
      O

    

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

    

    The
      assessment of compliance to be delivered by [the Company] [Name of Subservicer]
      shall address, at a minimum, the criteria identified as below as “Applicable
      Servicing Criteria”:

    

    
      	
              Servicing
                Criteria 

            	
              Applicable
                Servicing Criteria

            
	
              Reference

            	
              Criteria

            	
               

            
	
               

            	
              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

            
	
              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

            
	
              1122(d)(1)(iii)

            	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the mortgage loans 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

            
	
               

            	
              Cash
                Collection and Administration

            	 
	
              1122(d)(2)(i)

            	
              Payments
                on mortgage loans 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

            
	
              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

            
	
              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

            
	
              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of overcollateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	
              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

            
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	
              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

            
	
               

            	
              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 mortgage loans serviced by the
                Servicer.

            	
              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

            
	
              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

            
	
              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

            
	
               

            	
              Pool
                Asset Administration

            	 
	
              1122(d)(4)(i)

            	
              Collateral
                or security on mortgage loans is maintained as required by the transaction
                agreements or related mortgage loan documents.

            	
              X

            
	
              1122(d)(4)(ii)

            	
              Mortgage
                loan and related documents are safeguarded as required by the transaction
                agreements

            	
              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 mortgage loans, including any payoffs, made in accordance with
                the
                related mortgage loan 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 mortgage loan documents.

            	
              X

            
	
              1122(d)(4)(v)

            	
              The
                Servicer’s records regarding the mortgage loans 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 mortgage loans
                (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
                mortgage
                loan 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 mortgage loans 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 mortgage loans with variable
                rates are computed based on the related mortgage loan
                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 mortgage loan
                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 mortgage loan
                documents and state laws; and (C) such funds are returned to the
                obligor
                within 30 calendar days of full repayment of the related mortgage
                loans,
                or such other number of days specified in the transaction
                agreements.

            	
              X

            
	
              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

            
	
              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.

            	
               

            
	
               

            	
               

            	
               

            

    

     

    [NAME
      OF COMPANY] [NAME OF SUBSERVICER]

     

    Date: _________________________

     

     

    By: _________________________

    Name:
      

    Title:
      

    

    28.     The
      Agreement is hereby amended as of the date hereof by adding the following new
      Exhibit P:

    EXHIBIT
      P

    

    REPORTING
      DATA FOR REALIZED LOSSES AND GAINS

    

    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. 

    1.  

     

    2.  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 Officer Certificate 

     

    *     
      Unusual or extraordinary items may require further documentation. 

     

    13.        The
      total
      of lines 1 through 12.

     

    3.         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      
     

     

    
      	 	
              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 ( ). 

    

    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

                  	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
                    HUD
                      Part B

                  	 	 	 	 	 	(18b)
	
                    (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)

                  

          

        

      

    

     

    Escrow
      Disbursement Detail

    

    

    
      	
              Type

              (Tax
                /Ins.)

            	
              Date
                Paid

            	
              Period
                of Coverage

            	
              Total
                Paid

            	
              Base
                Amount

            	
              Penalties

            	
              Interest

            
	
               

               

            	 	 	 	 	 	 
	
               

               

            	 	 	 	 	 	 
	
               

               

            	 	 	 	 	 	 
	
               

               

            	 	 	 	 	 	 
	
               

               

            	 	 	 	 	 	 
	
               

               

            	 	 	 	 	 	 
	
               

               

            	 	 	 	 	 	 
	
               

               

            	 	 	 	 	 	 

    

    

    29.    
      The
      Agreement is hereby amended as of the date hereof by adding the following new
      Exhibit Q:

     

    EXHIBIT
      Q

    

    Delinquency
      Recognition Policies 

    [To
      be
      provided by EMC and mutually agreed by the parties]

     

    30.    
      Except
      as
      amended above, the Agreement shall continue to be in full force and effect
      in
      accordance with its terms.

    

    31.    
      This
      Amendment may be executed by one or more of the parties hereto on any number
      of
      separate counterparts and of said counterparts taken together shall be deemed
      to
      constitute one and the same instrument.

    

    [SIGNATURE
      PAGES FOLLOW]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the following parties have caused their names to be signed
      hereto by their respective officers thereunto duly authorized as of the day
      and
      year first above written.

    
       

      
        	 	 	 
	 	
                EMC
                  MORTGAGE CORPORATION,

                as
                  Purchaser

              
	 
 	 
 	 
 
	 	By:  	
              
	 	Name:   	
                

              
	 	Title: 	
              

      

        

      
        	 	 	 
	 	
                
                  
                    MID
                      AMERICA BANK, FSB,

                    as
                      Company

                  

                

              
	 
 	 
 	 
 
	 	By:  	
              
	 	Name:   	
                

              
	 	Title: 	
              

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    EXHIBIT
      I-4

    

    COUNTRYWIDE
      SERVICING AGREEMENT

     

     

    
      
        
          	 

        

         

      

    

     

     

     

     

    EMC
      Mortgage Corporation,

     

    Purchaser

     

    and

     

    

     

    Countrywide
      Home Loans, Inc.,

     

    Company

     

    
       

      
        
          

        

      

       

      SELLER’S
        WARRANTIES AND SERVICING AGREEMENT

       

      Dated
        as
        of September 1, 2002

    

     

    
      
 

    Residential
      Adjustable Rate Mortgage Loans

     

     

     

     

    
      	 

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    TABLE
      OF
      CONTENTS

    
 

     

    
      	
              ARTICLE
                I 

            
	 
	
              DEFINITIONS 

            
	
               

               

            
	
              ARTICLE
                II 

            
	 	 
	
              CONVEYANCE
                OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES; 

            
	
              BOOKS
                AND RECORDS; DELIVERY OF DOCUMENTS 

            
	 	 
	
              Section
                2.01

            	
              Conveyance
                of Mortgage Loans; Possession of Mortgage Files; Maintenance of Servicing
                Files.

            
	
              Section
                2.02

            	
              Books
                and Records; Transfers of Mortgage Loans.

            
	
              Section
                2.03

            	
              Delivery
                of Documents.

            
	 
	
              ARTICLE
                III

            
	 
	
              REPRESENTATIONS
                AND WARRANTIES; 

            
	
              REMEDIES
                AND BREACH 

            
	 	 
	
              Section
                3.01

            	
              Company
                Representations and Warranties.

            
	
              Section
                3.02

            	
              Representations
                and Warranties Regarding Individual Mortgage Loans.

            
	
              Section
                3.03

            	
              Remedies
                for Breach of Representations and Warranties.

            
	
              Section
                3.04

            	
              Indemnification.

            
	
              Section
                3.05

            	
              Repurchase
                Upon Conversion.

            
	
              Section
                3.06

            	
              Restrictions
                and Requirements Applicable in the Event that
                a Mortgage Loan is Acquired by a REMIC

            
	
              Section
                3.07

            	
              Review
                of Mortgage Loans

            
	 
	
              ARTICLE
                IV 

            
	 
	
              ADMINISTRATION
                AND SERVICING OF MORTGAGE LOANS 

            
	 	 
	
              Section
                4.01

            	
              Company
                to Act as Servicer.

            
	
              Section
                4.02

            	
              Liquidation
                of Mortgage Loans.

            
	
              Section
                4.03

            	
              Collection
                of Mortgage Loan Payments.

            
	
              Section
                4.04

            	
              Establishment
                of and Deposits to Custodial Account.

            
	
              Section
                4.05

            	
              Permitted
                Withdrawals From Custodial Account.

            
	
              Section
                4.06

            	
              Establishment
                of and Deposits to Escrow Account.

            
	
              Section
                4.07

            	
              Permitted
                Withdrawals From Escrow Account.

            
	
              Section
                4.08

            	
              Payment
                of Taxes, Insurance and Other Charges.

            
	
              Section
                4.09

            	
              Protection
                of Accounts.

            
	
              Section
                4.10

            	
              Maintenance
                of Hazard Insurance.

            
	
              Section
                4.11

            	
              Maintenance
                of Mortgage Impairment Insurance.

            
	
              Section
                4.12

            	
              Maintenance
                of Fidelity Bond and Errors and Omissions Insurance.

            
	
              Section
                4.13

            	
              Inspections.

            
	
              Section
                4.14

            	
              Restoration
                of Mortgaged Property.

            
	
              Section
                4.15

            	
              Maintenance
                of PMI and LPMI Policy; Claims.

            
	
              Section
                4.16

            	
              Title,
                Management and Disposition of REO Property.

            
	
              Section
                4.17

            	
              Real
                Estate Owned Reports.

            
	
              Section
                4.18

            	
              Liquidation
                Reports.

            
	
              Section
                4.19

            	
              Reports
                of Foreclosures and Abandonments of Mortgaged Property.

            
	
              Section
                4.20

            	
              Notification
                of Adjustments.

            
	 
	
              ARTICLE
                V 

            
	 
	
              PAYMENTS
                TO PURCHASER 

            
	 	 
	
              Section
                5.01

            	
              Remittances.

            
	
              Section
                5.02

            	
              Statements
                to Purchaser.

            
	
              Section
                5.03

            	
              Monthly
                Advances by Company.

            
	 
	
              ARTICLE
                VI 

            
	 
	
              GENERAL
                SERVICING PROCEDURES 

            
	 	 
	
              Section
                6.01

            	
              Transfers
                of Mortgaged Property.

            
	
              Section
                6.02

            	
              Satisfaction
                of Mortgages and Release of Mortgage Files.

            
	
              Section
                6.03

            	
              Servicing
                Compensation.

            
	
              Section
                6.04

            	
              Annual
                Statement as to Compliance.

            
	
              Section
                6.05

            	
              Annual
                Independent Public Accountants’ Servicing Report.

            
	
              Section
                6.06

            	
              Right
                to Examine Company Records.

            
	 
	
              ARTICLE
                VII 

            
	 
	
              AGENCY
                TRANSFER; PASS-THROUGH TRANSFER 

            
	 	 
	
              Section
                7.01

            	
              Removal
                of Mortgage Loans from Inclusion Under this Agreement Upon an Agency
                Transfer, or a Pass-Through Transfer on One or More Reconstitution
                Dates.

            
	
              Section
                7.02

            	
              Purchaser’s
                Repurchase and Indemnification Obligations.

            
	 
	
              ARTICLE
                VIII 

            
	 
	
              COMPANY
                TO COOPERATE 

            
	 	 
	
              Section
                8.01

            	
              Provision
                of Information.

            
	
              Section
                8.02

            	
              Financial
                Statements; Servicing Facility.

            
	 
	
              ARTICLE
                IX 

            
	 
	
              THE
                COMPANY 

            
	 	 
	
              Section
                9.01

            	
              Indemnification;
                Third Party Claims.

            
	
              Section
                9.02

            	
              Merger
                or Consolidation of the Company.

            
	
              Section
                9.03

            	
              Limitation
                on Liability of Company and Others.

            
	
              Section
                9.04

            	
              Limitation
                on Resignation and Assignment by Company.

            
	 
	
              ARTICLE
                X 

            
	 
	
              DEFAULT 

            
	 	 
	
              Section
                10.01

            	
              Events
                of Default.

            
	
              Section
                10.02

            	
              Waiver
                of Defaults.

            
	 
	
              ARTICLE
                XI 

            
	 
	
              TERMINATION 

            
	 	 
	
              Section
                11.01

            	
              Termination.

            
	
              Section
                11.02

            	
              Termination
                Without Cause.

            
	 
	
              ARTICLE
                XII 

            
	 
	
              MISCELLANEOUS
                PROVISIONS 

            
	 	 
	
              Section
                12.01

            	
              Successor
                to Company.

            
	
              Section
                12.02

            	
              Amendment.

            
	
              Section
                12.03

            	
              Governing
                Law.

            
	
              Section
                12.04

            	
              Duration
                of Agreement.

            
	
              Section
                12.05

            	
              Notices.

            
	
              Section
                12.06

            	
              Severability
                of Provisions.

            
	
              Section
                12.07

            	
              Relationship
                of Parties.

            
	
              Section
                12.08

            	
              Execution;
                Successors and Assigns.

            
	
              Section
                12.09

            	
              Recordation
                of Assignments of Mortgage.

            
	
              Section
                12.10

            	
              Assignment
                by Purchaser.

            
	
              Section
                12.11

            	
              No
                Personal Solicitation.

            

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBITS

     

    
      	
              EXHIBIT
                A

            	
              MORTGAGE
                LOAN SCHEDULE

            

    

    
      	
              EXHIBIT
                B

            	
              CONTENTS
                OF EACH MORTGAGE FILE

            

    

    
      	
              EXHIBIT
                C

            	
              MORTGAGE
                LOAN DOCUMENTS

            

    

    
      	
              EXHIBIT
                D-1

            	
              FORM
                OF CUSTODIAL ACCOUNT

            

    

    
      	
               

            	
              CERTIFICATION

            

    

    
      	
              EXHIBIT
                D-2

            	
              FORM
                OF CUSTODIAL ACCOUNT

            

    

    
      	
               

            	
              LETTER
                AGREEMENT

            

    

    
      	
              EXHIBIT
                E-1

            	
              FORM
                OF ESCROW ACCOUNT CERTIFICATION

            

    

    
      	
              EXHIBIT
                E-2

            	
              FORM
                OF ESCROW ACCOUNT

            

    

    
      	
               

            	
              LETTER
                AGREEMENT

            

    

    
      	
              EXHIBIT
                F

            	
              FORM
                OF MONTHLY REMITTANCE ADVICE

            

    

    
      	
              EXHIBIT
                G

            	
              FORM
                OF ASSIGNMENT AND ASSUMPTION

            

    

    
      	
              EXHIBIT
                H

            	
              UNDERWRITING
                GUIDELINES

            

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    This
      is a
      Seller’s Warranties and Servicing Agreement for residential adjustable rate
      first lien mortgage loans, dated and effective as of September 1, 2002, and
      is
      executed between EMC Mortgage Corporation, as purchaser (the
“Purchaser”), and Countrywide Home Loans, Inc., as seller and servicer
      (the “Company”).

     

    W I T N E S S E T H:

     

    WHEREAS,
      from time to time the Purchaser has agreed to purchase from the Company and
      from
      time to time the Company has agreed to sell to the Purchaser certain Mortgage
      Loans (excluding the right to service the Mortgage Loans which the Company
      expressly retains);

     

    WHEREAS,
      each of the Mortgage Loans is secured by a mortgage, deed of trust or other
      security instrument creating a first lien on a residential dwelling located
      in
      the jurisdiction indicated on the related Mortgage Loan Schedule, which is
      annexed hereto as Exhibit A;

    WHEREAS,
      the Company has agreed to service, from time to time, certain of the Mortgage
      Loans acquired by the Purchaser in accordance with the terms and provisions
      of
      this Agreement; and

     

    WHEREAS,
      the Purchaser and the Company wish to prescribe the manner of purchase of the
      Mortgage Loans and the management, servicing and control of the Mortgage Loans
      which from time to time are subject to this Agreement.

     

     

    NOW,
      THEREFORE, in consideration of the mutual agreements hereinafter set forth,
      and
      for other good and valuable consideration, the receipt and adequacy of which
      is
      hereby acknowledged, the Purchaser and the Company agree as
      follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

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

     

    Accepted
      Servicing Practices:  With respect to any Mortgage Loan, those
      mortgage servicing practices of prudent mortgage lending institutions which
      service mortgage loans of the same type as such Mortgage Loan in the
      jurisdiction where the related Mortgaged Property is located.

     

    Agency
      Transfer:  The sale or transfer by Purchaser of some or all of the
      Mortgage Loans to Fannie Mae under its Cash Purchase Program or its MBS Swap
      Program (Special Servicing Option) or to Freddie Mac under its Freddie Mac
      Cash
      Program or Gold PC Program, retaining the Company as “servicer
      thereunder”.

     

    Agreement:  This
      Seller’s Warranties and Servicing Agreement and all amendments hereof and
      supplements hereto.

     

    ALTA:  The
      American Land Title Association or any successor thereto.

     

    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.

     

    Approved
      Flood Certification Provider:  Any provider acceptable to Fannie
      Mae and Freddie Mac.

     

    Assignment
      and Conveyance: An Assignment and Conveyance in the form of Exhibit 6
      to the Mortgage Loan Purchase Agreement dated as of the date hereof, by and
      between the Seller and the Purchaser.

     

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

     

    BIF:  The
      Bank Insurance Fund, or any successor thereto.

     

    Business
      Day:  Any day other than (i) a Saturday or Sunday, or (ii) a day
      on which banking and savings and loan institutions in the State of New York
      or
      California are authorized or obligated by law or executive order to be
      closed.

     

    Closing
      Date: The date set forth on the related Confirmation on which the Purchaser
      from time to time shall purchase and the Company from time to time shall sell,
      the Mortgage Loans listed on the related Mortgage Loan Schedule.

     

    Code:  The
      Internal Revenue Code of 1986, as it may be amended from time to time or any
      successor statute thereto, and applicable U.S. Department of the Treasury
      regulations issued pursuant thereto.

     

    Company:  Countrywide
      Home Loans, Inc., or its successor in interest or assigns, or any successor
      to
      the Company under this Agreement appointed as herein provided.

     

    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, to the extent not required to be
      released to a Mortgagor in accordance with the terms of the related Mortgage
      Loan Documents.

     

    Confirmation:  The
      trade confirmation letter between the parties hereto which relates to the
      Mortgage Loans on the related Closing Date.

     

    Convertible
      Mortgage Loan: Any individual Mortgage Loan purchased pursuant to this
      Agreement which contains a provision whereby the Mortgagor is permitted to
      convert the Mortgage Loan to a fixed-rate mortgage loan at any time between
      the
      first anniversary and the fifth anniversary of the origination of the mortgage
      loan.

     

    Custodial
      Account:  The separate account or accounts created and maintained
      pursuant to Section 4.04.

     

    Custodial
      Agreement: That certain Custodial Agreement, dated as of November 23,1999 by
      and between the Purchaser and Wells Fargo Bank Minnesota, N.A.

     

    Custodian:  The
      Custodian under the Custodial Agreement, or its successor in interest or assigns
      or any successor to the Custodian under the Custodial Agreement as provided
      therein.

     

    Cut-off
      Date: The date set forth on the related Confirmation.

     

    Deleted
      Mortgage Loan:  A Mortgage Loan which is repurchased by the
      Company in accordance with the terms of this Agreement and which is, in the
      case
      of a substitution pursuant to Section 3.03, replaced or to be replaced with
      a
      Qualified Substitute Mortgage Loan.

     

    Determination
      Date:  The 15th day
      (or if such
      15th day is
      not
      a Business Day, the Business Day immediately preceding such 15th day) of
      the month
      of the related Remittance Date.

     

    Disqualified
      Organization:  An organization defined as such in Section 860E(e)
      of the Code.

     

    Due
      Date:  The day of the month on which the Monthly Payment is due on
      a Mortgage Loan, exclusive of any days of grace. With respect to the Mortgage
      Loans for which payment from the Mortgagor is due on a day other than the first
      day of the month, such Mortgage Loans will be treated as if the Monthly Payment
      is due on the first day of the month of such Due Date.

     

    Due
      Period:  With respect to each Remittance Date, the prior calendar
      month.

     

    Eligible
      Investments:  Any one or more of the obligations and securities
      listed below which investment provides for a date of maturity not later than
      the
      Determination Date in each month:

     

    (i)  direct
      obligations of, and obligations fully guaranteed by, the United States of
      America, or any agency or instrumentality of the United States of America the
      obligations of which are backed by the full faith and credit of the United
      States of America; and

     

    (ii)  federal
      funds, demand and time deposits in, certificates of deposits of, or bankers’
acceptances issued by, any depository institution or trust company incorporated
      or organized under the laws of the United States of America or any state thereof
      and subject to supervision and examination by federal and/or state banking
      authorities, so long as at the time of such investment or contractual commitment
      providing for such investment the commercial paper or other short-term debt
      obligations of such depository institution or trust company (or, in the case
      of
      a depository institution or trust company which is the principal subsidiary
      of a
      holding company, the commercial paper or other short-term debt obligations
      of
      such holding company) are rated “P-1” by Moody’s Investors Service, Inc. and the
      long-term debt obligations of such holding company) are rated “P-1” by Moody’s
      Investors Service, Inc. and the long-term debt obligations of such depository
      institution or trust company (or, in the case of a depository institution or
      trust company which is the principal subsidiary of a holding company, the
      long-term debt obligations of such holding company) are rated at least “Aa” by
      Moody’s Investors Service, Inc.;

     

    (iii)  investments
      and securities otherwise acceptable to Fannie Mae and Freddie Mac.

     

    provided,
      however, that no such instrument shall be an Eligible Investment if such
      instrument evidences either (i) a right to receive only interest payments
      with respect to the obligations underlying such instrument, or (ii) both
      principal and interest payments derived from obligations underlying such
      instrument and the principal and interest payments with respect to such
      instrument provide a yield to maturity of greater than 120% of the yield to
      maturity at par of such underlying obligations.

     

    Errors
      and Omissions Insurance Policy:  An errors and omissions insurance
      policy to be maintained by the Company pursuant to Section 4.12.

     

    Escrow
      Account:  The separate account or accounts created and maintained
      pursuant to Section 4.06.

     

    Escrow
      Payments:  With respect to any Mortgage Loan, the amounts
      constituting ground rents, taxes, assessments, water rates, sewer rents,
      municipal charges, mortgage insurance premiums, fire and hazard insurance
      premiums, condominium charges, and any other payments required to be escrowed
      by
      the Mortgagor with the mortgagee pursuant to the Mortgage or any other related
      document.

     

    Event
      of Default:  Any one of the conditions or circumstances enumerated
      in Section 10.01.

     

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

     

    Fannie
      Mae Guides:  The Fannie Mae Sellers’ Guide and the Fannie Mae
      Servicers’ Guide and all amendments or additions thereto.

     

    FDIC:  The
      Federal Deposit Insurance Corporation, or any successor thereto.

     

    Fidelity
      Bond:  A fidelity bond to be maintained by the Company pursuant to
      Section 4.12.

     

    First
      Remittance Date:  As stated in the related Mortgage Loan Purchase
      Agreement.

     

    5/1
      ARM Mortgage Loan: Any individual Mortgage Loan purchased pursuant to this
      Agreement which contains a provision whereby the interest rate on such Mortgage
      Loan is fixed for the first five (5) years of the term of the related Mortgage
      Loan and which thereafter is converted to a Treasury Rate Mortgage Loan or
      a
      LIBOR Mortgage Loan except that the Periodic Rate Cap does not apply to the
      initial Interest Rate Adjustment Date for the related Mortgage
      Loan.

     

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

     

    GEMICO:  General
      Electric Mortgage Insurance Corporation or any successor thereto.

     

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

     

    Index:
      With respect to any individual Treasury Rate Mortgage Loan, and with respect
      to
      any individual 10/1 ARM Mortgage Loan, 5/1 ARM Mortgage Loan or 3/1 ARM Mortgage
      Loan commencing from and after the 120th Monthly Payment, sixtieth Monthly
      Payment, or the thirty-sixth Monthly Payment thereof, respectively, Index shall
      mean a rate per annum equal to the weekly average yield on U.S. Treasury
      securities adjusted to a constant maturity of one year as published by the
      Federal Reserve Board in statistical release No. H 15 (519) or any similar
      publication as available 45 days prior to the Interest Rate Adjustment Date.
      With respect to any individual LIBOR Mortgage Loan, Index shall mean a rate
      per
      annum equal to the average of interbank offered rates for twelve month U.S.
      dollar denominated deposits in the London market as determined as set forth
      in
      the related Mortgage Note. With respect to any individual CD Mortgage Loan,
      Index shall mean a rate per annum equal to the weekly average yield on
      certificates of deposit adjusted to a constant maturity of six months as
      published by the Federal Reserve Board in statistical release No. H 15 (519)
      or
      similar publication as available 45 days prior to the Interest Rate Adjustment
      Date.

     

    Initial
      Rate Cap: With respect to each Mortgage Loan and the initial Interest Rate
      Adjustment Date therefor, a number of percentage points per annum that is set
      forth in the related Mortgage Loan Schedule and in the related Mortgage Note,
      which is the maximum amount by which the Mortgage Interest Rate for such
      Mortgage Loan may increase or decrease from the Mortgage Interest Rate in effect
      immediately prior to such Interest Rate Adjustment Date.

     

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

     

    Interest
      Rate Adjustment Date: The date on which an adjustment to the Mortgage
      Interest Rate on a Mortgage Note becomes effective.

     

    LIBOR
      Mortgage Loan: Any individual Mortgage Loan purchased pursuant to this
      Agreement which contains a provision whereby the interest rate on such Mortgage
      Loan is adjusted annually based upon the rate per annum equal to the average
      of
      interbank offered rates for twelve month U.S. dollar denominated deposits in
      the
      London market as published in The Wall Street Journal.

     

    Lifetime
      Mortgage Interest Rate Cap: With respect to each Mortgage Loan, the absolute
      maximum Mortgage Interest Rate payable, above which the Mortgage Interest Rate
      cannot be adjusted. The Mortgage Interest Rate during the term of a Mortgage
      Loan shall not at any time exceed the Mortgage Interest Rate at the time of
      origination of such Mortgage Loan by more than 5% per

     

    Liquidation
      Proceeds:  Cash received in connection with the liquidation of a
      defaulted Mortgage Loan, whether through the sale or assignment of such Mortgage
      Loan, trustee’s sale, foreclosure sale or otherwise, or the sale of the related
      Mortgaged Property if the Mortgaged Property is acquired in satisfaction of
      the
      Mortgage Loan.

     

    Loan-to-Value
      Ratio or LTV:  With respect to any Mortgage Loan, the ratio of the
      Stated Principal Balance of the Mortgage Loan as of the related Cut-off Date
      (unless otherwise indicated) to the lesser of (a) the Appraised Value of the
      Mortgaged Property and (b) if the Mortgage Loan was made to finance the
      acquisition of the related Mortgaged Property, the purchase price of the
      Mortgaged Property, expressed as a percentage.

     

    LPMI
      Loan:  A Mortgage Loan with a LPMI Policy.

     

    LPMI
      Policy: A policy of primary mortgage guaranty insurance issued by another
      Qualified Insurer pursuant to which the related premium is to be paid by the
      Servicer of the related Mortgage Loan from payments of interest made by the
      Mortgagor in an amount as is set forth in the related Confirmation and related
      Mortgage Loan Schedule.

     

    LPMI
      Fee: With respect to each LPMI Loan, the portion of the Mortgage Interest
      Rate as set forth on the related Mortgage Loan Schedule (which shall be payable
      solely from the interest portion of Monthly Payments, Insurance Proceeds,
      Condemnation Proceeds or Liquidation Proceeds), which, during such period prior
      to the required cancellation of the LPMI Policy, shall be used to pay the
      premium due on the related LPMI Policy.

     

    MERS:  Mortgage
      Electronic Registration Systems, Inc., a corporation organized and existing
      under the laws of the State of Delaware, or any successor thereto.

     

    MERS
      Mortgage Loan:  Any Mortgage Loan registered with MERS on the MERS
      System.

     

    MERS
      System:  The system of recording transfers of mortgages
      electronically maintained by MERS.

     

    MIN:  The
      Mortgage Identification Number for any MERS Mortgage Loan.

     

    Monthly
      Advance:  The portion of Monthly Payment delinquent with respect
      to each Mortgage Loan at the close of business on the Determination Date
      required to be advanced by the Company pursuant to Section 5.03 on the Business
      Day immediately preceding the Remittance Date of the related month.

     

    Monthly
      Payment:  The scheduled monthly payment of principal and interest
      on a Mortgage Loan.

     

    Mortgage:  The
      mortgage, deed of trust or other instrument securing a Mortgage Note, which
      creates a first lien on an unsubordinated estate in fee simple in real property
      securing the Mortgage Note.

     

    Mortgage
      File:  The items pertaining to a particular Mortgage Loan referred
      to in Exhibit B annexed hereto, and any additional documents required to
      be added to the Mortgage File pursuant to this Agreement.

     

    Mortgage
      Impairment Insurance Policy:  A mortgage impairment or blanket
      hazard insurance policy as described in Section 4.11.

     

    Mortgage
      Interest Rate: The annual rate at which Interest accrues on any Mortgage
      Loan as adjusted from time to time in accordance with the provisions of the
      related Mortgage Note and in compliance with the related Initial Rate Cap,
      Lifetime Mortgage Interest Rate Cap and Periodic Rate Cap, if any, of the
      related Mortgage Note.

     

    Mortgage
      Loan: An individual Convertible or Non-Convertible, Treasury Rate, LIBOR,
      5/1 ARM, or 3/1 ARM Mortgage Loan which 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 Monthly Payments, Principal Prepayments, Liquidation
      Proceeds, condemnation proceeds, Insurance Proceeds, REO disposition proceeds,
      and all other rights, benefits, proceeds and obligations arising from or in
      connection with such Mortgage Loan.

     

    Mortgage
      Loan Documents:  The documents listed in Exhibit C
      hereto.

     

    Mortgage
      Loan Package: A pool of Mortgage Loans sold to the Purchaser by the Company
      on a Closing Date.

     

    Mortgage
      Loan Remittance Rate:  With respect to each Mortgage Loan, the
      annual rate of interest remitted to the Purchaser, which shall be equal to
      the
      Mortgage Interest Rate minus (i) the Servicing Fee Rate and (ii) with respect
      to
      LPMI Loans, the LPMI Fee.

     

    Mortgage
      Loan Schedule: With respect to each Mortgage Loan Package, a schedule of
      Mortgage Loans annexed hereto as Annex A, such schedule setting forth the
      following information with respect to each Mortgage Loan: (1) the Company’s
      Mortgage Loan identifying number; (2) the Mortgagor’s name; (3) the street
      address of the Mortgaged Property including the city, state and zip code; (4)
      a
      code indicating whether the Mortgaged Property is owner-occupied a second home,
      or an investment property; (5) the number and type of residential units
      constituting the Mortgaged Property; (6) the original months to maturity; (7)
      the Loan-to-Value Ratio at origination; (8) the Mortgage Interest Rate as of
      the
      Cut-off Date; (9) the date on which the initial Monthly Payment was due on
      the
      Mortgage Loan; (10) the stated maturity date; (11) the amount of the Monthly
      Payment as of the Cut-off Date; (12) the last payment date on which a payment
      was actually applied to the outstanding principal balance; (13) the original
      principal amount of the Mortgage Loan; (14) the principal balance of the
      Mortgage Loan as of the close of business on the Cut-off Date, after deduction
      of payments of principal due on or before the Cut-off Date whether or not
      collected; (15) a code indicating the purpose of the loan (i.e., purchase,
      rate
      and term refinance, equity take-out refinance); (16) a code indicating the
      documentation style (i.e. full, alternative or reduced); (17) the Interest
      Rate
      Adjustment Date; (18) the Gross Margin; (19) the lifetime maximum Mortgage
      Interest Rate under the terms of the Mortgage Note; (20) the date the Mortgage
      Loan was originated; (21) the Periodic Rate Cap; (22) a code indicating the
      company providing private mortgage insurance; (23) a code indicating if the
      Mortgage Loan is convertible; (24) the Servicing Fee Rate; (25) the LPMI Fee,
      if
      any; and (26) the Initial Rate Cap. With respect to the Mortgage Loans in the
      aggregate, the Mortgage Loan Schedule shall set forth the following information,
      as of the Cut-off Date: (1) the number of Mortgage Loans; (2) the current
      aggregate outstanding principal balance of the Mortgage Loans; (3) the weighted
      average Mortgage Interest Rate of the Mortgage Loans; and (4) the weighted
      average maturity of the Mortgage Loans.  The Mortgage Loan Schedule
      may consist of multiple reports that collectively set forth all of the required
      information.

     

    Mortgage
      Note:  The note or other evidence of the indebtedness of a
      Mortgagor secured by a Mortgage.

     

    Mortgaged
      Property:  The real property securing repayment of the debt
      evidenced by a Mortgage Note.

     

    Mortgagor:  The
      obligor on a Mortgage Note.

     

    Non-Convertible
      Mortgage Loan: Any individual Mortgage Loan purchased pursuant to this
      Agreement which does not contain a provision whereby the Mortgagor may convert
      the Mortgage Loan to a fixed-rate mortgage loan.

     

    Officer’s
      Certificate:  A certificate signed by the Chairman of the Board or
      the Vice Chairman of the Board or the President or a Vice President or an
      assistant Vice President and by the Treasurer or the Secretary or one of the
      Assistant Treasurers or Assistant Secretaries of the Company, and delivered
      to
      the Purchaser as required by this Agreement.

     

    Opinion
      of Counsel:  A written opinion of counsel, who may be an employee
      of the Company, reasonably acceptable to the Purchaser, provided that any
      Opinion of Counsel relating to compliance with the REMIC Provisions, must be
      an
      opinion of counsel who (i) is in fact independent of the Company and any master
      servicer of the Mortgage Loans, (ii) does not have any material direct or
      indirect financial interest in the Company or any master servicer of the
      Mortgage Loans or in an affiliate of either and (iii) is not connected with
      the
      Company or any master servicer of the Mortgage Loans as an officer, employee,
      director or person performing similar functions.

     

    Pass-Through
      Transfer:  The sale or transfer of some or all of the Mortgage
      Loans to a trust to be formed as part of a publicly-issued and/or privately
      placed, rated or unrated, mortgage pass-through transaction, retaining the
      Company as “servicer” (with or without a master servicer)
      thereunder.

     

    Periodic
      Rate Cap: With respect to each Mortgage Loan, the provision of each Mortgage
      Note which provides for an absolute maximum amount by which the Mortgage
      Interest Rate therein may increase or decrease on an Interest Rate Adjustment
      Date above the Mortgage Interest Rate previously in effect, equal to the rate
      set forth on the Mortgage Loan Schedule per adjustment.

     

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

     

    PMI:  PMI
      Mortgage Insurance Co., or any successor thereto.

     

    PMI
      Policy:  A policy of primary mortgage guaranty insurance issued by
      a Qualified Insurer, as required by this Agreement with respect to certain
      Mortgage Loans.

     

    Pool
      Insurer:  Any of GEMICO, PMI or UGI.

     

    Prepayment
      Interest Shortfall Amount:  With respect to any Mortgage Loan that
      was subject to a Principal Prepayment in full or in part during any Due Period,
      which Principal Prepayment was applied to such Mortgage Loan prior to such
      Mortgage Loan’s Due Date in such Due Period, the amount of interest (net the
      related Servicing Fee) that would have accrued on the amount of such Principal
      Prepayment during the period commencing on the date as of which such Principal
      Prepayment was applied to such Mortgage Loan and ending on the day immediately
      preceding such Due Date, inclusive.

     

    Prime
      Rate:  The prime rate announced to be in effect from time to time,
      as published as the average rate in the “Money Rates” section of
TheWallStreetJournal.

     

    Principal
      Prepayment:  Any payment or other recovery of principal on a
      Mortgage Loan which is received in advance of its scheduled Due Date, including
      any prepayment penalty or premium thereon and which 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 Period:  The month preceding the month in which the
      related Remittance Date occurs.

     

    Purchaser:  EMC
      Mortgage Corporation or its successor in interest or any successor to the
      Purchaser under this Agreement as herein provided.

     

    Qualified
      Depository:  A depository the accounts of which are insured by the
      FDIC through the BIF or the SAIF or the debt obligations of which are rated
      AA
      (or the equivalent rating category) or better by national recognized statistical
      rating organization.

     

    Qualified
      Insurer:  A mortgage guaranty insurance company duly authorized
      and licensed where required by law to transact mortgage guaranty insurance
      business and approved as an insurer by Fannie Mae or Freddie Mac.

     

    Qualified
      Substitute Mortgage Loan:  A mortgage loan eligible to be
      substituted by the Company for a Deleted Mortgage Loan which must, on the date
      of such substitution, (i) have an outstanding principal balance, after deduction
      of all scheduled payments due in the month of substitution (or in the case
      of a
      substitution of more than one mortgage loan for a Deleted Mortgage Loan, an
      aggregate principal balance), not in excess of the Stated Principal Balance
      of
      the Deleted Mortgage Loan; (ii) have a Mortgage Loan Remittance Rate not less
      than and not more than 2% greater than the Mortgage Loan Remittance Rate 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)
      have a Gross Margin not less than that of the Deleted Mortgage Loan; (v) comply
      with each representation and warranty set forth in Sections 3.01 and 3.02;
      (v)
      use the same Index for determining the Mortgage Interest Rate as the Deleted
      Mortgage Loan; (vi) have the same provision with respect to convertibility
      as
      the Deleted Mortgage Loan; and (viii) be a REMIC Eligible Mortgage
      Loan.

     

    Rating
      Agency:  Any of Fitch, Moody’s or Standard & Poor’s or their
      respective successors designed by the Purchaser.

     

    Reconstitution
      Agreements:  The agreement or agreements entered into by the
      Purchaser, the Company, Fannie Mae or Freddie Mac or certain third parties
      on
      the Reconstitution Date(s) with respect to any or all of the Mortgage Loans
      serviced hereunder, in connection with a Pass-Through Transfer or an Agency
      Transfer as set forth in Section 7.01, including, but not limited to, (i) a
      Fannie Mae Mortgage Selling and Servicing Contract, a Pool Purchase Contract,
      and any and all servicing agreements and tri-party agreements reasonably
      required by Fannie Mae with respect to a Fannie Mae Transfer, (ii) a Purchase
      Contract and all purchase documents associated therewith as set forth in the
      Freddie Mac Sellers’ & Servicers’ Guide, and any and all servicing
      agreements and tri-party agreements reasonably required by Freddie Mac with
      respect to a Freddie Mac Transfer, and (iii) a Pooling and Servicing Agreement
      and/or a subservicing/master servicing agreement and related custodial/trust
      agreement and related documents with respect to a Pass-Through Transfer. Such
      agreement or agreements shall prescribe the rights and obligations of the
      Company in servicing the related Mortgage Loans and shall provide for servicing
      compensation to the Company (calculated on a weighted average basis for all
      the
      related Mortgage Loans as of the Reconstitution Date), net of any guarantee
      fees
      due Fannie Mae or Freddie Mac, if applicable, at least equal to the Servicing
      Fee due the Company in accordance with this Agreement or the servicing fee
      required pursuant to the Reconstitution Agreement. The form of relevant
      Reconstitution Agreement to be entered into by the Purchaser and/or master
      servicer or trustee and the Company with respect to Pass-Through Transfers
      shall
      be reasonably satisfactory in form and substance to the Purchaser and the
      Company, shall not material increase the Company’s obligations or diminish the
      Company’s rights hereunder and the representations and warranties and servicing
      provisions contained therein shall be substantially similar to those contained
      in this Agreement, unless otherwise mutually agreed by the parties.

     

    Reconstitution
      Date:  The date or dates on which any or all of the Mortgage Loans
      serviced under this Agreement shall be removed from this Agreement and
      reconstituted as part of an Agency Transfer or a Pass-Through Transfer pursuant
      to Section 7.01 hereof. On such date or dates, the Mortgage Loans transferred
      shall cease to be covered by this Agreement and the Company’s servicing
      responsibilities shall cease under this Agreement with respect to the related
      transferred Mortgage Loans.

     

    Record
      Date:  The close of business of the last Business Day of the month
      preceding the month of the related Remittance Date.

     

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

     

    REMIC
      Documents:  The document or documents creating and governing the
      administration of a REMIC.

     

    REMIC
      Eligible Mortgage Loan:  A Mortgage Loan held by a REMIC which
      satisfies and/or complies with all applicable REMIC Provisions.

     

    REMIC
      Provisions:  Provisions of the federal income tax law relating to
      a REMIC, which appear at Section 860A through 86OG of Subchapter M of Chapter
      1,
      Subtitle A of the Code, and related provisions, and regulations, rulings or
      pronouncements promulgated thereunder, as the foregoing may be in effect from
      time to time.

     

    Remittance
      Date:  The 18th day (or if such 18th day is not a Business Day,
      the first Business Day immediately following) of any month, beginning with
      the
      First Remittance Date.

     

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

     

    REO
      Disposition Proceeds:  All amounts received with respect to an REO
      Disposition pursuant to Section 4.16.

     

    REO
      Property:  A Mortgaged Property acquired by the Company on behalf
      of the Purchasers through foreclosure or by deed in lieu of foreclosure, as
      described in Section 4.16.

     

    Repurchase
      Price:  With respect to any Mortgage Loan, a price equal to (i)
      the Stated Principal Balance of the Mortgage Loan plus (ii) interest on such
      Stated Principal Balance at the Mortgage Loan Remittance Rate from the date
      on
      which interest has last been paid and distributed to the Purchaser to the date
      of repurchase, less amounts received or advanced in respect of such repurchased
      Mortgage Loan which are being held in the Custodial Account for distribution
      in
      the month of repurchase.

     

    SAIF:  The
      Savings Association Insurance Fund, or any successor thereto.

     

    Securities
      Act of 1933 or the 1933 Act:  The Securities Act of 1933, as
      amended.

     

    Servicing
      Advances:  All customary, reasonable and necessary “out of pocket”
costs and expenses other than Monthly Advances (including reasonable attorneys’
fees and disbursements) incurred in the performance by the Company of its
      servicing obligations, including, but not limited to, the cost of (a) the
      preservation, restoration and protection of the Mortgaged Property, (b) any
      enforcement or judicial proceedings, including without limitation, foreclosures,
      (c) the management and liquidation of any REO Property and (d) compliance with
      the obligations under Section 4.08.

     

    Servicing
      Fee:  With respect to each Mortgage Loan, the amount of the annual
      fee the Purchaser shall pay to the Company, which shall, for a period of one
      full month, be equal to one-twelfth of the product of (a) the Servicing Fee
      Rate
      and (b) the outstanding principal balance of such Mortgage Loan. Such fee shall
      be payable monthly, computed on the basis of the same principal amount and
      period respecting which any related interest payment on a Mortgage Loan is
      computed. The obligation of the Purchaser to pay the Servicing Fee is limited
      to, and the Servicing Fee is payable solely from, the interest portion
      (including recoveries with respect to interest from Liquidation Proceeds, to
      the
      extent permitted by Section 4.05) of such Monthly Payment collected by the
      Company, or as otherwise provided under Section 4.05.

     

    Servicing
      Fee Rate: 0.25% per annum with respect to the period prior to the initial
      Interest Adjustment Date and, for the 5/1 7/1 and 10/1 ARM Loans 0.375%
      thereafter.

     

    Servicing
      File:  With respect to each Mortgage Loan, the file retained by
      the Company consisting of originals of all documents in the Mortgage File which
      are not delivered to the Custodian and copies of the Mortgage Loan Documents
      listed in Exhibit B the originals of which are delivered to the Custodian
      pursuant to Section 2.01.

     

    Servicing
      Officer:  Any officer of the Company involved in or responsible
      for, the administration and servicing of the Mortgage Loans whose name appears
      on a list of servicing officers furnished by the Company to the Purchaser upon
      request, as such list may from time to time be amended.

     

    7/1
      ARM Mortgage Loan: Any individual Mortgage Loan purchased pursuant to this
      Agreement which contains a provision whereby the interest rate on such Mortgage
      Loan is fixed for the first seven (7) years of the term of the related Mortgage
      Loan and which thereafter is converted to a Treasury Rate Mortgage Loan or
      a
      LIBOR Mortgage Loan except that the Periodic Rate Cap does not apply to the
      initial Interest Rate Adjustment Date for the related Mortgage
      Loan.

     

    Stated
      Principal Balance:  As to each Mortgage Loan, (i) the principal
      balance of the Mortgage Loan at the related 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 distributed to the Purchaser with respect to the
      related Mortgage Loan representing payments or recoveries of principal or
      advances in lieu thereof.

     

    Subservicer:  Any
      Subservicer which is subservicing the Mortgage Loans pursuant to a Subservicing
      Agreement. Any subservicer shall meet the qualifications set forth in Section
      4.01.

     

    Subservicing
      Agreement:  An agreement between the Company and a Subservicer for
      the servicing of the Mortgage Loans.

     

    10/1
      ARM Mortgage Loan: Any individual Mortgage Loan purchased pursuant to this
      Agreement which contains a provision whereby the interest rate on such Mortgage
      Loan is fixed for the first ten (10) years of the term of the related Mortgage
      Loan and which thereafter is converted to a Treasury Rate Mortgage Loan or
      a
      LIBOR Mortgage Loan except that the Periodic Rate Cap does not apply to the
      initial Interest Rate Adjustment Date for the related Mortgage
      Loan.

     

    3/1
      ARM Mortgage Loan: Any individual Mortgage Loan purchased pursuant to this
      Agreement which contains a provision whereby the interest rate on such Mortgage
      Loan is fixed for the first three (3) years of the term of the related Mortgage
      Loan and which thereafter is converted to a Treasury Rate Mortgage Loan or
      a
      LIBOR Mortgage Loan.

     

    Treasury
      Rate Mortgage Loan: Any individual Mortgage Loan purchased pursuant to this
      Agreement which contains a provision whereby the interest rate on such Mortgage
      Loan is adjusted based upon the weekly average yield on U.S. Treasury
      securities.

     

    Underwriting
      Guidelines:  The underwriting guidelines of the Company with
      respect to mortgage loans similar to the Mortgage Loans, attached hereto
      as  Exhibit H.

     

    UGI:  United
      Guaranty Residential Insurance Company or any successor thereto.

     

    ARTICLE
      II                                

     

    CONVEYANCE
      OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES;

    BOOKS
      AND RECORDS; DELIVERY OF DOCUMENTS

     

    
      	
            	
              Section
                2.01

            	
              Conveyance
                of Mortgage Loans; Possession of Mortgage Files; Maintenance of Servicing
                Files.

            

    

     

    The
      Company, on each Closing Date, does hereby sell, transfer, assign, set over
      and
      convey to the Purchaser, without recourse, but subject to the terms of this
      Agreement, all the right, title and interest of the Company in and to the
      Mortgage Loans in the related Mortgage Loan Package, excluding the right to
      service the Mortgage Loans which the Company expressly retains. Pursuant to
      Section 2.03, the Company has delivered the Mortgage Loan Documents for each
      Mortgage Loan in the Mortgage Loan Package to the Custodian.

     

    The
      contents of each Mortgage File not delivered to the Custodian are and shall
      be
      held in trust by the Company for the benefit of the Purchaser as the owner
      thereof. The Company shall maintain a Servicing File consisting of a copy of
      the
      contents of each Mortgage File and the originals of the documents in each
      Mortgage File not delivered to the Custodian. The possession of each Servicing
      File by the Company is at the will of the Purchaser for the sole purpose of
      servicing the related Mortgage Loan, and such retention and possession by the
      Company is in a custodial capacity only. Upon the sale of the Mortgage Loans
      the
      ownership of each Mortgage Note, the related Mortgage and the related Mortgage
      File and Servicing File shall vest immediately in the Purchaser, and the
      ownership of all records and documents with respect to the related Mortgage
      Loan
      prepared by or which come into the possession of the Company shall vest
      immediately in the Purchaser and shall be retained and maintained by the
      Company, in trust, at the will of the Purchaser and only in such custodial
      capacity. Each Servicing File shall be segregated from the other books and
      records of the Company and shall be marked appropriately to reflect clearly
      the
      sale of the related Mortgage Loan to the Purchaser. The Company shall release
      its custody of the contents of any Servicing File only in accordance with
      written instructions from the Purchaser, unless such release is required as
      incidental to the Company’s servicing of the Mortgage Loans or is in connection
      with a repurchase of any Mortgage Loan pursuant to Section 3.03, 3.05, 3.07,
      or
      6.02.

     

    
      	
            	
              Section
                2.02

            	
              Books
                and Records; Transfers of Mortgage
                Loans.

            

    

     

    From
      and
      after the sale of the Mortgage Loans to the Purchaser all rights arising out
      of
      the Mortgage Loans in a Mortgage Loan Package including but not limited to
      all
      funds received on or in connection with the Mortgage Loan, shall be received
      and
      held by the Company in trust for the benefit of the Purchaser as owner of the
      Mortgage Loans, and the Company shall retain record title to the related
      Mortgages for the sole purpose of facilitating the servicing and the supervision
      of the servicing of the Mortgage Loans.

     

    The
      sale
      of each Mortgage Loan in a Mortgage Loan Package shall be reflected on the
      Company’s balance sheet and other financial statements as a sale of assets by
      the Company. The Company shall be responsible for maintaining, and shall
      maintain, a complete set of books and records for each Mortgage Loan which
      shall
      be marked clearly to reflect the ownership of each Mortgage Loan by the
      Purchaser. In particular, the Company shall maintain in its possession,
      available for inspection by the Purchaser, or its designee and shall deliver
      to
      the Purchaser upon demand, evidence of compliance with all federal, state and
      local laws, rules and regulations, and requirements of Fannie Mae or Freddie
      Mac, including but not limited to documentation as to the method used in
      determining the applicability of the provisions of the Flood Disaster Protection
      Act of 1973, as amended, to the Mortgaged Property, documentation evidencing
      insurance coverage and eligibility of any condominium project for approval
      by
      Fannie Mae and periodic inspection reports as required by Section 4.13. To
      the
      extent that original documents are not required for purposes of realization
      of
      Liquidation Proceeds or Insurance Proceeds, documents maintained by the Company
      may be in the form of microfilm or microfiche or such other reliable means
      of
      recreating original documents, including but not limited to, optical imagery
      techniques so long as the Company complies with the requirements of the Fannie
      Mae Selling and Servicing Guide, as amended from time to time.

     

    The
      Company shall maintain with respect to each Mortgage Loan and shall make
      available for inspection by any Purchaser or its designee the related Servicing
      File during the time the Purchaser retains ownership of a Mortgage Loan and
      thereafter in accordance with applicable laws and regulations.

     

    The
      Company shall keep at its servicing office books and records in which, subject
      to such reasonable regulations as it may prescribe, the Company shall note
      transfers of Mortgage Loans. No transfer of a Mortgage Loan may be made unless
      such transfer is in compliance with the terms hereof. For the purposes of this
      Agreement, the Company shall be under no obligation to deal with any person
      with
      respect to this agreement or the Mortgage Loans unless the books and records
      show such person as the owner of the Mortgage Loan. The Purchaser may, subject
      to the terms of this Agreement, sell and transfer one or more of the Mortgage
      Loans, provided, however, that (i) the transferee will not be
      deemed to be a Purchaser hereunder binding upon the Company unless such
      transferee shall agree in writing to be bound by the terms of this Agreement
      and
      an original counterpart of the instrument of transfer and an assignment and
      assumption of this Agreement in the form of Exhibit G hereto executed by
      the transferee shall have been delivered to the Company, and (ii) with respect
      to each Mortgage Loan Package, in no event shall there be more than five Persons
      at any given time having the status of “Purchaser” hereunder. The Purchaser also
      shall advise the Company of the transfer. Upon receipt of notice of the
      transfer, the Company shall mark its books and records to reflect the ownership
      of the Mortgage Loans of such assignee, and shall release the previous Purchaser
      from its obligations hereunder with respect to the Mortgage Loans sold or
      transferred.  Purchaser shall not to transfer to any assignee any pool
      of Mortgage Loans with a aggregate outstanding principal balance of less than
      $10,000,000 without the consent of the Company; provided, however, if the
      Company fails to consent to the transfer of a pool of Mortgage Loans as
      contemplated in this sentence, Purchaser shall have the right to purchase the
      servicing rights associated with such Mortgage Loans at a price to mutually
      agreed to by Purchaser and Company, exercising good faith.

     

    
      	
            	
              Section
                2.03

            	
              Delivery
                of Documents.

            

    

     

    On
      or
      before the date which is agreed upon by the Purchaser and the Company in the
      related Confirmation, the Company shall deliver and release to the Custodian
      those Mortgage Loan Documents as required by this Agreement with respect to
      each
      Mortgage Loan in the related Mortgage Loan Package a list of which is attached
      to the related Assignment and Conveyance.

     

    On
      or
      prior to the related Closing Date, the Custodian shall certify its receipt
      of
      all such Mortgage Loan Documents required to be delivered pursuant to the
      Custodial Agreement, as evidenced by the Initial Certification of the Custodian
      in the form annexed to the Custodial Agreement. The Company shall be responsible
      for maintaining the Custodial Agreement for the benefit of the Purchaser.
      Purchaser shall pay all fees and expenses of the Custodian.

     

    The
      Company shall forward to the Custodian original documents evidencing an
      assumption, modification, consolidation or extension of any Mortgage Loan
      entered into in accordance with Section 4.01 or 6.01 within one week of their
      execution, provided, however, that the Company shall provide the Custodian
      with
      a certified true copy of any such document submitted for recordation within
      one
      week of its execution, and shall provide the original of any document submitted
      for recordation or a copy of such document certified by the appropriate public
      recording office to be a true and complete copy of the original within 180
      days
      of its submission for recordation.

     

    In
      the
      event an Officer’s Certificate of the Company is delivered to the Custodian
      because of a delay caused by the public recording office in returning any
      recorded document, the Company shall deliver to the Custodian, within 180 days
      of the related Closing Date, an Officer’s Certificate which shall (i) identify
      the recorded document, (ii) state that the recorded document has not been
      delivered to the Custodian due solely to a delay caused by the public recording
      office, (iii) state the amount of time generally required by the applicable
      recording office to record and return a document submitted for recordation,
      and
      (iv) specify the date the applicable recorded document will be delivered to
      the
      Custodian. The Company shall be required to deliver to the Custodian the
      applicable recorded document by the date specified in (iv) above. An extension
      of the date specified in (iv) above may be requested from the Purchaser, which
      consent shall not be unreasonably withheld.

     

    On
      or
      prior to the date which is three Business Days prior to the related Closing
      Date, the Company shall deliver to the Purchaser the related Mortgage Loan
      Schedule.

     

    ARTICLE
      III

     

    REPRESENTATIONS
      AND WARRANTIES;

    REMEDIES
      AND BREACH

     

    
      	
            	
              Section
                3.01

            	
              Company
                Representations and Warranties.

            

    

     

    The
      Company represents and warrants to the Purchaser that as of each Closing
      Date:

     

    (a)  Due
      Organization and Authority.  The Company is a corporation duly
      organized, validly existing and in good standing under the laws of the State
      of
      New York 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 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 Company,
      and in any event the Company is in compliance with the laws of any such state
      to
      the extent necessary to ensure the enforceability of the related Mortgage Loan
      and the servicing of such Mortgage Loan in accordance with the terms of this
      Agreement; the Company has the full corporate power and authority to execute
      and
      deliver this Agreement and to perform in accordance herewith; the execution,
      delivery and performance of this Agreement (including all instruments of
      transfer to be delivered pursuant to this Agreement) by the Company and the
      consummation of the transactions contemplated hereby have been duly and validly
      authorized; this Agreement evidences the valid, binding and enforceable
      obligation of the Company; and all requisite corporate action has been taken
      by
      the Company to make this Agreement valid and binding upon the Company in
      accordance with its terms;

     

    (b)  Ordinary
      Course of Business.  The consummation of the transactions
      contemplated by this Agreement are in the ordinary course of business of the
      Company, and the transfer, assignment and conveyance of the Mortgage Notes
      and
      the Mortgages by the Company pursuant to this Agreement are not subject to
      the
      bulk transfer or any similar statutory provisions in effect in any applicable
      jurisdiction;

     

    (c)  No
      Conflicts.  Neither the execution and delivery of this Agreement,
      the acquisition of the Mortgage Loans by the Company, the sale of the Mortgage
      Loans to the Purchaser or 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 Company’s charter or by-laws or any legal restriction or any
      agreement or instrument to which the Company 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 Company or its property is subject, or impair
      the ability of the Purchaser to realize on the Mortgage Loans, or impair the
      value of the Mortgage Loans;

     

    (d)  Ability
      to Service.  The Company is an approved seller/servicer of
      conventional residential mortgage loans for Fannie Mae or Freddie Mac, with
      the
      facilities, procedures, and experienced personnel necessary for the sound
      servicing of mortgage loans of the same type as the Mortgage Loans. The Company
      is in good standing to sell mortgage loans to and service mortgage loans for
      Fannie Mae or Freddie Mac, and no event has occurred, including but not limited
      to a change in insurance coverage, which would make the Company unable to comply
      with Fannie Mae or Freddie Mac eligibility requirements or which would require
      notification to either Fannie Mae or Freddie Mac;

     

    (e)  Reasonable
      Servicing Fee.  The Company acknowledges and agrees that the
      Servicing Fee, as calculated at the Servicing Fee Rate, represents reasonable
      compensation for performing such services and that the entire Servicing Fee
      shall be treated by the Company, for accounting and tax purposes, as
      compensation for the servicing and administration of the Mortgage Loans pursuant
      to this Agreement.

     

    (f)  Ability
      to Perform.  The Company does not believe, nor does it have any
      reason or cause to believe, that it cannot perform each and every covenant
      contained in this Agreement. The Company is solvent and the sale of the Mortgage
      Loans is not undertaken to hinder, delay or defraud any of the Company’s
      creditors;

     

    (g)  No
      Litigation Pending.  There is no action, suit, proceeding or
      investigation pending or to the best of the Company’s knowledge threatened
      against the Company 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 Company, or in any material impairment
      of
      the right or ability of the Company to carry on its business substantially
      as
      now conducted, or in any material liability on the part of the Company, or
      which
      would draw into question the validity of this Agreement or the Mortgage Loans
      or
      of any action taken or to be taken in connection with the obligations of the
      Company contemplated herein, or which would be likely to impair materially
      the
      ability of the Company to perform under the terms of this
      Agreement;

     

    (h)  No
      Consent Required.  No consent, approval, authorization or order of
      any court or governmental agency or body is required for the execution, delivery
      and performance by the Company of or compliance by the Company with this
      Agreement or the sale of the Mortgage Loans as evidenced by the consummation
      of
      the transactions contemplated by this Agreement, or if required, such approval
      has been obtained prior to the related Closing Date;

     

    (i)  Selection
      Process.  The Mortgage Loans were selected from among the
      adjustable rate one- to four-family mortgage loans in the Company’s portfolio at
      the related Closing Date as to which the representations and warranties set
      forth in Section 3.02 could be made and such selection was not made in a manner
      so as to affect adversely the interests of the Purchaser;

     

    (j)  Pool
      Characteristics.  With respect to each Mortgage Loan Package, the
      Mortgage Loan characteristics set forth on Exhibit 2 to the related Assignment
      and Conveyance are true and complete.

     

    (k)  No
      Untrue Information. Neither this Agreement nor any statement, report or
      other document furnished or to be furnished pursuant to this Agreement or in
      connection with the transactions contemplated hereby contains any untrue
      statement of fact or omits to state a fact necessary to make the statements
      contained therein not misleading;

     

    (l)  Sale
      Treatment.  The Company has determined that the disposition of the
      Mortgage Loans pursuant to this Agreement will be afforded sale treatment for
      accounting and tax purposes;

     

    (m)  Financial
      Statements. There has been no change in the business, operations, financial
      condition, properties or assets of the Company since the date of the Company’s
      most recent financial statements that would have a material adverse effect
      on
      its ability to perform its obligations under this Agreement;

     

    (n)  No
      Brokers’ Fees.  The Company has not dealt with any broker,
      investment banker, agent or other person that may be entitled to any commission
      or compensation in connection with the sale of the Mortgage Loans;

     

    (o)  Origination.  The
      Company’s decision to originate any mortgage loan or to deny any mortgage loan
      application is an independent decision based upon Company’s Underwriting
      Guidelines, and is in no way made as a result of  Purchaser’s decision
      to purchase, or not to purchase, or the price Purchaser may offer to pay for,
      any such mortgage loan, if originated; and

     

    (p)  MERS.  The
      Company is a member of MERS in good standing, and will comply in all material
      respects with the rules and procedures of MERS in connection with the servicing
      of the MERS Mortgage Loans for as long as such Mortgage Loans are registered
      with MERS;

     

    
      	
            	
              Section
                3.02

            	
              Representations
                and Warranties Regarding Individual Mortgage
                Loans.

            

    

     

    As
      to
      each Mortgage Loan, the Company hereby represents and warrants to the Purchaser
      that as of the related Closing Date:

     

    (a)  Mortgage
      Loans as Described.  The information set forth in each Mortgage
      Loan Schedule is complete, true and correct in all material
      respects;

     

    (b)  Payments
      Current.  All payments required to be made up to the related
      Closing Date for the Mortgage Loan under the terms of the Mortgage Note have
      been made and credited. No payment required under the Mortgage Loan has been
      more than 30 days delinquent at any time in the twelve months prior to the
      related Closing Date. The first Monthly Payment shall be made with respect
      to
      the Mortgage Loan on its Due Date or within the grace period, all in accordance
      with the terms of the related Mortgage Note;

     

    (c)  No
      Outstanding Charges.  There are no defaults in complying with the
      terms of the Mortgages, and all taxes, governmental assessments, insurance
      premiums, water, sewer and municipal charges, leasehold payments or ground
      rents
      which previously became due and owing have been paid, or an escrow of funds
      has
      been established in an amount sufficient to pay for every such item which
      remains unpaid and which has been assessed but is not yet due and payable.
      The
      Company has not advanced funds, or induced, solicited or knowingly received
      any
      advance of funds by a party other than the Mortgagor, directly or indirectly,
      for the payment of any amount required under the Mortgage Loan, except for
      interest accruing from the date of the Mortgage Note or date of disbursement
      of
      the Mortgage Loan proceeds, whichever is greater, to the day which precedes
      by
      one month the Due Date of the first installment of principal and
      interest;

     

    (d)  Original
      Terms Unmodified.  The terms of the Mortgage Note and Mortgage
      have not been impaired, waived, altered or modified in any respect, except
      by a
      written instrument which has been recorded, if necessary to protect the
      interests of the Purchaser and which has been delivered to the Custodian. The
      substance of any such waiver, alteration or modification has been approved
      by
      the issuer of any related PMI Policy and the title insurer, to the extent
      required by the policy, and its terms are reflected on the related Mortgage
      Loan
      Schedule. No Mortgagor has been released, in whole or in part, except in
      connection with an assumption agreement approved by the issuer of any related
      PMI Policy and the title insurer, to the extent required by the policy, and
      which assumption agreement is part of the Mortgage Loan File delivered to the
      Custodian and the terms of which are reflected in the related Mortgage Loan
      Schedule;

     

    (e)  No
      Defenses.  The Mortgage Loan is not subject to any right of
      rescission, set-off, counterclaim or defense, including without limitation
      the
      defense of usury, nor will the operation of any of the terms of the Mortgage
      Note or the Mortgage, or the exercise of any right thereunder, render either
      the
      Mortgage Note or the Mortgage unenforceable, in whole or in part, or subject
      to
      any right of rescission, set-off, counterclaim or defense, including without
      limitation the defense of usury, and no such right of rescission, set-off,
      counterclaim or defense has been asserted with respect thereto, and no Mortgagor
      was a debtor in any state or federal bankruptcy or insolvency proceeding at
      the
      time the Mortgage Loan was originated;

     

    (f)  Hazard
      Insurance.  Pursuant to the terms of the Mortgage, all buildings
      or other improvements upon the Mortgaged Property are insured by a generally
      acceptable insurer 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 policies conforming to the requirements of Section
      4.10. If upon origination of the Mortgage Loan, the Mortgaged Property was
      in an
      area identified in the Federal Register 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 Flood Insurance Administration is in effect which
      policy conforms to the requirements of Section 4.10. All individual insurance
      policies contain a standard mortgagee clause naming the Company and its
      successors and assigns as mortgagee, and all premiums thereon have been paid.
      The Mortgage obligates the Mortgagor thereunder to maintain the hazard insurance
      policy at the Mortgagor’s cost and expense, and on the Mortgagor’s failure to do
      so, authorizes the holder of the Mortgage to obtain and maintain such insurance
      at such Mortgagor’s cost and expense, and to seek reimbursement therefor from
      the Mortgagor. Where required by state law or regulation, the Mortgagor has
      been
      given an opportunity to choose the carrier of the required hazard insurance,
      provided the policy is not a “master” or “blanket” hazard insurance policy
      covering the common facilities of a planned unit development. The hazard
      insurance policy is the valid and binding obligation of the insurer, is in
      full
      force and effect, and will be in full force and effect and inure to the benefit
      of the Purchaser upon the consummation of the transactions contemplated by
      this
      Agreement. The Company has not engaged in, and has no knowledge of the
      Mortgagor’s or any Subservicer’s having engaged in, any act or omission which
      would impair the coverage of any such policy, the benefits of the endorsement
      provided for herein, or the validity and binding effect of either, including
      without limitation, no unlawful fee, unlawful commission, unlawful kickback
      or
      other unlawful compensation or value of any kind has been or will be received,
      retained or realized by any attorney, firm or other person or entity, and no
      such unlawful items have been received, retained or realized by the
      Company;

     

    (g)  Compliance
      with Applicable Laws.  Any and all requirements of any federal,
      state or local law including, without limitation, usury, truth-in-lending,
      real
      estate settlement procedures, consumer credit protection, equal credit
      opportunity or disclosure laws applicable to the Mortgage Loan have been
      complied with, and the Company shall maintain in its possession, available
      for
      the Purchaser’s inspection, and shall deliver to the Purchaser upon demand,
      evidence of compliance with all such requirements;

     

    (h)  No
      Satisfaction of Mortgage.  The Mortgage has not been satisfied,
      canceled, 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 release,
      cancellation, subordination or rescission. The Company has not waived the
      performance by the Mortgagor of any action, if the Mortgagor’s failure to
      perform such action would cause the Mortgage Loan to be in default, nor has
      the
      Company waived any default resulting from any action or inaction by the
      Mortgagor;

     

    (i)  Location
      and Type of Mortgaged Property.  The Mortgaged Property is a fee
      simple property located in the state identified in the related Mortgage Loan
      Schedule and consists of a parcel of real property with a detached single family
      residence erected thereon, or an individual condominium unit in a low-rise
      condominium project, or an individual unit in a planned unit development,
      provided, however, that any condominium project or planned unit development
      shall conform with the Company’s Underwriting Guidelines regarding such
      dwellings, and no residence or dwelling is a mobile home or a manufactured
      dwelling. No portion of the Mortgaged Property is used for commercial
      purposes;

     

    (j)  Valid
      First Lien.  The Mortgage is a valid, subsisting, enforceable and
      perfected first lien on the Mortgaged Property, including all buildings and
      improvements on the Mortgaged Property, and all additions, alterations and
      replacements made at any time with respect to the foregoing. The lien of the
      Mortgage is subject only to:

     

    (1)  the
      lien
      of current real property taxes and assessments not yet due and
      payable;

     

    (2)  covenants,
      conditions and restrictions, rights of way, easements and other matters of
      the
      public record as of the date of recording 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 (i)
      referred to or to otherwise considered in the appraisal made for the originator
      of the Mortgage Loan or (ii) which do not adversely affect the Appraised Value
      of the Mortgaged Property set forth in such appraisal; and

     

    (3)  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,
      subsisting and enforceable first lien and first priority security interest
      on
      the property described therein and the Company has full right to sell and assign
      the same to the Purchaser. The Mortgaged Property was not, as of the date of
      origination of the Mortgage Loan, subject to a mortgage, deed of trust, deed
      to
      secured debt or other security instrument creating a lien subordinate to the
      lien of the Mortgage;

     

    (k)  Validity
      of Mortgage Documents.  The Mortgage Note and the Mortgage are
      genuine, and each is the legal, valid and binding obligation of the maker
      thereof enforceable in accordance with its terms. All parties to the Mortgage
      Note and the Mortgage and any other related agreement had legal capacity to
      enter into the Mortgage Loan and to execute and deliver the Mortgage Note and
      the Mortgage and any other related agreement, and the Mortgage Note and the
      Mortgage have been duly and properly executed by such parties. No fraud was
      committed by the Company, or to the Company's knowledge by any other person
      including the Mortgagor, in connection with the origination or servicing of
      the
      Mortgage Loan.  The Company has reviewed all of the documents
      constituting the Servicing File and has made such inquiries as it deems
      necessary to make and confirm the accuracy of the representations set forth
      herein;

     

    (l)  Full
      Disbursement of Proceeds.  The Mortgage Loan has been closed and
      the proceeds of the Mortgage Loan have been fully disbursed and there is no
      requirement for future advances thereunder, and any and all requirements as
      to
      completion of any on-site or off-site 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 were paid, and the Mortgagor is not entitled to any refund of any
      amounts paid or due under the Mortgage Note or Mortgage;

     

    (m)  Ownership.  The
      Company is the sole owner of record and holder of the Mortgage Loan. The
      Mortgage Loan is not assigned or pledged, and the Company has good and
      marketable title thereto, and has full right to transfer and sell the Mortgage
      Loan therein to the Purchaser free and clear of any encumbrance, equity,
      participation interest, lien, pledge, charge, claim or security interest, and
      has full right and authority subject to no interest or participation of, or
      agreement with, any other party, to sell and assign each Mortgage Loan pursuant
      to this Agreement;

     

    (n)  Doing
      Business.  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) (1) in compliance
      with any and all applicable licensing requirements of the laws of the state
      wherein the Mortgaged Property is located, and (2) organized under the laws
      of
      such state, or (3) qualified to do business in such state, or (4) federal
      savings and loan associations or national banks having principal offices in
      such
      state, or (5) not doing business in such state;

     

    (o)  LTV,
      PMI Policy. Any Mortgage Loan with an LTV over 80% has a PMI Policy
      insuring, as to payment defaults, the excess LTV over 71% (or such other
      percentage as stated in the related Confirmation) of the Appraised Value until
      the LTV of such Mortgage Loan is reduced to 80%. All provisions of such PMI
      Policy have been and are being complied with, such policy is in full force
      and
      effect, and all premiums due thereunder have been paid. No action, inaction,
      or
      event has occurred and no state of facts exists that has, or will result in
      the
      exclusion from, denial of, or defense to coverage. Any Mortgage Loan subject
      to
      a PMI Policy obligates the Mortgagor thereunder to maintain the PMI Policy
      and
      to pay all premiums and charges in connection therewith; provided, that, with
      respect to LPMI Loans, the Company is obligated thereunder to maintain the
      LPMI
      Policy and to pay all premiums and charges in connection
      therewith.  The Mortgage Interest Rate for the Mortgage Loan as set
      forth on the Mortgage Loan Schedule is net of any insurance premium excluded
      any
      premium for the LPMI Policy;

     

    (p)  Title
      Insurance.  The Mortgage Loan is covered by either (i) an
      attorney’s opinion of title and abstract of title the form and substance of
      which is acceptable to mortgage lending institutions making mortgage loans
      in
      the area where the Mortgaged Property is located or (ii) an ALTA lender’s title
      insurance policy or other generally acceptable form of policy of insurance
      acceptable to Fannie Mae or Freddie Mac, issued by a title insurer acceptable
      to
      Fannie Mae or Freddie Mac and qualified to do business in the jurisdiction
      where
      the Mortgaged Property is located, insuring the Company, its successors and
      assigns, as to the first priority lien of the Mortgage in the original principal
      amount of the Mortgage Loan (or to the extent that a Mortgage Note provides
      for
      negative amortization, the maximum amount of negative amortization in accordance
      with the Mortgage), and 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,
      subject only to the exceptions contained in clauses (1), (2) and (3) of
      paragraph (j) of this Section 3.02. Where required by state law or regulation,
      the Mortgagor has been given the opportunity to choose the carrier of the
      required mortgage title insurance. Additionally, such lender’s title insurance
      policy affirmatively insures ingress and egress, and against encroachments by or
      upon the Mortgaged Property or any interest therein. The Company 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 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 Mortgage, including the Company, has done, by act or omission,
      anything which would impair the coverage of such lender’s title insurance policy
      including without limitation, no unlawful fee, commission, kickback or other
      unlawful compensation or value of any kind has been or will be received,
      retained or realized by any attorney, firm or other person or entity, and no
      such unlawful items have been received, retained or realized by the
      Company;

     

    (q)  No
      Defaults.  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 neither the Company nor its predecessors have waived any
      default, breach, violation or event of acceleration;

     

    (r)  No
      Mechanics’ Liens.  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 the law could give rise to such liens) affecting the
      related Mortgaged Property which are or may be liens prior to, or equal or
      coordinate with, the lien of the related Mortgage;

     

    (s)  Location
      of Improvements; No Encroachments.  All improvements which were
      considered in determining the Appraised Value of the 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. No improvement located on or being part of the Mortgaged Property
      is
      in violation of any applicable zoning law or regulation;

     

    (t)  Origination;
      Payment Terms.  The Mortgage Loan was originated by either i) the
      Company, which is a FNMA-approved, FHLMC-approved and HUD-approved mortgage
      banker, or ii) an entity that is a FNMA-approved, FHLMC-approved and
      HUD-approved mortgage banker, or a savings and loan association, a savings
      bank,
      a commercial bank or similar banking institution which is supervised and
      examined by a Federal or state authority.  The interest rate on the
      related Mortgage Note is adjusted annually in the case of Treasury Rate Mortgage
      Loans and LIBOR Mortgage Loans on each Interest Rate Adjustment Date to equal
      the Index plus the Gross Margin, subject to the Initial Rate Cap, Periodic
      Rate
      Cap and the Lifetime Mortgage Interest Rate Cap as set forth in the Mortgage
      Note. The Mortgage Interest Rate for a 5/1 ARM Mortgage Loan and a 3/1 ARM
      Mortgage Loan is adjusted annually commencing from and after the sixtieth
      Monthly Payment and the thirty-sixth Monthly Payment, respectively, in the
      same
      manner as a Treasury Rate Mortgage Loan and LIBOR Mortgage Loan, provided,
      however, that the Periodic Rate Cap does not apply to the initial Interest
      Rate
      Adjustment Date for such 5/1 ARM Mortgage Loan (the Initial Rate Cap does
      apply). The Mortgage Note is payable each month in monthly installments of
      principal and interest, with interest in arrears, and requires Monthly Payments
      sufficient to amortize the original principal balance of the Mortgage Loan
      over
      a term of no more than 30 years. Each Convertible Mortgage Loan contains a
      provision whereby the Mortgagor is permitted to convert the Mortgage Loan to
      a
      fixed-rate mortgage loan at any time between the first and fifth anniversary
      of
      the origination of the Mortgage Loan. No Mortgage Loan has a provision for
      negative amortization;

     

    (u)  Customary
      Provisions.  The Mortgage contains customary and enforceable
      provisions such as to render the rights and remedies of the holder thereof
      adequate for the realization against the Mortgaged Property of the benefits
      of
      the security provided thereby, including, (i) in the case of a Mortgage
      designated as a deed of trust, by trustee’s sale, and (ii) otherwise by judicial
      foreclosure. Upon default by a Mortgagor on a Mortgage Loan and foreclosure
      on,
      or trustee’s sale of, the Mortgaged Property pursuant to the proper procedures,
      the holder of the Mortgage Loan will be able to deliver good and merchantable
      title to the Mortgaged Property. There is no homestead or other exemption
      available to a Mortgagor which would interfere with the right to sell the
      Mortgaged Property at a trustee’s sale or the right to foreclose the
      Mortgage;

     

    (v)  Conformance
      with Underwriting Guidelines.  The Mortgage Loan was underwritten
      in accordance with the Company’s Underwriting Guidelines in effect at the time
      the Mortgage Loan was originated.;

     

    (w)  Occupancy
      of the Mortgaged Property.  As of the related Closing Date the
      Mortgaged Property is lawfully occupied under applicable law. All inspections,
      licenses and certificates required to be made or issued with respect to all
      occupied portions of the Mortgaged Property and, with respect to the use and
      occupancy of the same, including but not limited to certificates of occupancy
      and fire underwriting certificates, have been made or obtained from the
      appropriate authorities. The Mortgagor represented at the time of origination
      of
      the Mortgage Loan that the Mortgagor would occupy the Mortgaged Property as
      the
      Mortgagor’s primary residence;

     

    (x)  No
      Additional Collateral.  The Mortgage Note is not and has not been
      secured by any collateral except the lien of the corresponding Mortgage and
      the
      security interest of any applicable security agreement or chattel mortgage
      referred to in (j) above;

     

    (y)  Deeds
      of Trust.  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 Purchasers to the trustee
      under the deed of trust, except in connection with a trustee’s sale after
      default by the Mortgagor;

     

    (z)  Acceptable
      Investment.  The Company has no knowledge of any circumstances or
      conditions with respect to the Mortgage, the Mortgaged Property, the Mortgagor
      or the Mortgagor’s credit standing that can reasonably be expected to cause
      private institutional investors to regard the Mortgage Loan as an unacceptable
      investment, cause the Mortgage Loan to become delinquent, or adversely affect
      the value or marketability of the Mortgage Loan;

     

    (aa)  Delivery
      of Mortgage Documents.  The Mortgage Note, the Mortgage, the
      Assignment of Mortgage and any other documents required to be delivered for
      the
      Mortgage Loan by the Company under this Agreement as set forth in Exhibit
      C attached hereto have been delivered to the Custodian. The Company is in
      possession of a complete, true and accurate Mortgage File in compliance with
      Exhibit B, except for such documents the originals of which have been
      delivered to the Custodian;

     

    (bb)  Condominiums/Planned
      Unit Developments.  If the Mortgaged Property is a condominium
      unit or a planned unit development (other than a de minimus planned unit
      development) such condominium or planned unit development project meets
      Company’s Underwriting Guidelines with respect to such condominium or planned
      unit development;

     

    (cc)  Transfer
      of Mortgage Loans.  The Assignment of Mortgage is in recordable
      form and is acceptable for recording under the laws of the jurisdiction in
      which
      the Mortgaged Property is located;

     

    (dd)  Due
      on
      Sale.  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 Mortgagor thereunder;

     

    (ee)  No
      Buydown Provisions; No Graduated Payments or Contingent
      Interests.  The Mortgage Loan does not contain provisions pursuant
      to which Monthly Payments are paid or partially paid with funds deposited in
      any
      separate account established by the Company, the Mortgagor or anyone on behalf
      of the Mortgagor, or paid by any source other than the Mortgagor nor does it
      contain any other similar provisions currently in effect 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;

     

    (ff)  Consolidation
      of Future Advances.  Any future advances made prior to the related
      Cut-off Date have been consolidated with the outstanding principal amount
      secured by the Mortgage, and the secured principal amount, as consolidated,
      bears a single interest rate and single repayment term. The lien of the Mortgage
      securing the consolidated principal amount is expressly insured as having first
      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
      Fannie Mae and Freddie Mac. The consolidated principal amount does not exceed
      the original principal amount of the Mortgage Loan;

     

    (gg)  Mortgaged
      Property Undamaged.  There is no proceeding pending or, to the
      best of the Company’s knowledge, threatened for the total or partial
      condemnation of the Mortgaged Property. The Mortgaged Property is undamaged
      by
      waste, fire, earthquake or earth movement, windstorm, flood, tornado or other
      casualty so as to affect adversely the value of the Mortgaged Property as
      security for the Mortgage Loan or the use for which the premises were intended;
      and

     

    (hh)  Collection
      Practices; Escrow Deposits.  The origination,
      servicing  and collection practices used with respect to the Mortgage
      Loan have been in accordance with Accepted Servicing Practices, and have been
      in
      all respects in compliance with all applicable laws and regulations. With
      respect to escrow deposits and Escrow Payments, all such payments are in the
      possession of the Company and there exist no deficiencies in connection
      therewith for which customary arrangements for repayment thereof have not been
      made. All Escrow Payments have been collected in full compliance with state
      and
      federal law. An escrow of funds is not prohibited by applicable law and has
      been
      established in an amount sufficient to pay for every item which remains unpaid
      and which has been assessed but is not yet due and payable. No escrow deposits
      or Escrow Payments or other charges or payments due the Company have been
      capitalized under the Mortgage or the Mortgage Note. All Mortgage Interest
      Rate
      adjustments have been made in strict compliance with state and federal law
      and
      the terms of the related Mortgage Note. Any interest required to be paid
      pursuant to state and local law has been properly paid and
      credited;

     

    (ii)  Appraisal.  The
      Mortgage File contains an appraisal of the related Mortgage Property signed
      prior to the approval of the Mortgage Loan application by a qualified appraiser,
      duly appointed by the Company, who had no interest, direct or indirect in the
      Mortgaged Property or in any loan made on the security thereof; and whose
      compensation is not affected by the approval or disapproval of the Mortgage
      Loan, and the appraisal and appraiser both satisfy the requirements of Fannie
      Mae, Freddie Mac or Title XI of the Federal Institutions Reform, Recovery,
      and Enforcement Act of 1989 and the regulations promulgated thereunder, all
      as
      in effect on the date the Mortgage Loan was originated;

     

    (jj)  Soldiers’
      and Sailors’ Relief Act.  The Mortgagor has not notified the
      Company, and the Company has no knowledge of any relief requested or allowed
      to
      the Mortgagor under the Soldiers’ and Sailors’ Civil Relief Act of
      1940;

     

    (kk)  Environmental
      Matters.  The Mortgaged Property is free from any and all toxic or
      hazardous substances and there exists no violation of any local, state or
      federal environmental law, rule or regulation. To the best of the Company’s
      knowledge, there is no pending action or proceeding directly involving any
      Mortgaged Property of which the Company is aware in which compliance with any
      environmental law, rule or regulation is an issue; and to the best of the
      Company’s knowledge, nothing further remains to be done to satisfy in full all
      requirements of each such law, rule or regulation consisting a prerequisite
      to
      use and enjoyment of said property;

     

    (ll)  No
      Construction Loans.  No Mortgage Loan was made in connection with
      (i) the construction or rehabilitation of a Mortgaged Property or (ii)
      facilitating the trade-in or exchange of a Mortgaged Property;

     

    (mm)  Insurance.
      The Company has caused or will cause to be performed any and all acts required
      to preserve the rights and remedies of the Purchaser in any insurance policies
      applicable to the Mortgage Loans including, without limitation, any necessary
      notifications of insurers, assignments of policies or interests therein, and
      establishments of coinsured, joint loss payee and mortgagee rights in favor
      of
      the Purchaser;  No action, inaction, or event has occurred and no
      state of fact exists or has existed that has resulted or will result in the
      exclusion from, denial of, or defense to coverage under any applicable pool
      insurance policy, special hazard insurance policy, PMI Policy or bankruptcy
      bond, irrespective of the cause of such failure of coverage. In connection
      with
      the placement of any such insurance, no commission, fee, or other compensation
      has been or will be received by the Company or any designee of the Company
      or
      any corporation in which the Company or any officer, director, or employee
      had a
      financial interest at the time of placement of such insurance;

     

    (nn)  Regarding
      the Mortgagor.  The Mortgagor is one or more natural persons
      and/or trustees for an Illinois land trust or a trustee under a “living trust”
and such “living trust” is in compliance with Fannie Mae guidelines for such
      trusts.

     

    (oo)  Predatory
      Lending Regulations; High Cost Loans. None of the Mortgage Loans are
      classified as (a) “high cost” loans under the Home Ownership and Equity
      Protection Act of 1994 or (b) “high cost,” “threshold,” or “predatory” loans
      under any other applicable state, federal or local law.

     

    (pp)  Simple
      Interest Mortgage Loans.  None of the Mortgage Loans are simple
      interest Mortgage Loans.

     

    (qq)   Single
      Premium Credit Life Insurance.  None of the proceeds of the
      Mortgage Loan were used to finance single-premium credit life insurance
      policies.

     

    (rr)  Tax
      Service Contract The Company
      has obtained a life of loan, transferable real estate Tax Service Contract
      on
      each Mortgage Loan and such contract is assignable without penalty, premium
      or
      cost to the Purchaser;

     

    (ss)  Flood
      Certification Contract.
      The Company has obtained a life of loan, transferable flood certification
      contract with a Approved Flood Certification Provider for each Mortgage Loan
      and
      such contract is assignable without penalty, premium or cost to the
      Purchaser;

     

    (tt)  FICO
      Scores. Each Mortgage Loan
      has a non-zero FICO score;

     

    (uu)  Prepayment
      Fee.  With respect to each Mortgage Loan that has a prepayment fee
      feature, each such prepayment fee is enforceable and will be enforced by the
      Company, and each prepayment penalty in permitted pursuant to federal, state
      and
      local law.  No Mortgage Loan will impose a prepayment penalty for a
      term in excess of five years from the date such Mortgage Loan was
      originated.  Except as otherwise set forth in the related Mortgage
      Loan Schedule, with respect to each Mortgage Loan that contains a prepayment
      fee, such prepayment fee is at least equal to the lesser of (A) the maximum
      amount permitted under applicable law and (B) six months interest at the related
      Mortgage Interest Rate on the amount prepaid in excess of 20% of the original
      principal balance of such Mortgage Loan; and

     

    (vv)  Recordation.  Each
      original Mortgage was recorded and, except for those Mortgage Loans subject
      to
      the MERS identification system, all subsequent assignments of the original
      Mortgage (other than the assignment to the Purchaser) have been recorded in
      the
      appropriate jurisdictions wherein such recordation is necessary to perfect
      the
      lien thereof as against creditors of the Company, or is in the process of being
      recorded;

     

    (ww)  Leaseholds.                                If
      the Mortgaged Property is subject to a ground lease or any other type of
      leasehold interest, the ground lease or other leasehold interest exceeds the
      remaining term of the related Mortgage Loan.

     

    
      	
            	
              Section
                3.03

            	
              Remedies
                for Breach of Representations and
                Warranties.

            

    

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans to the
      Purchaser and the delivery of the Mortgage Loan Documents to the Custodian
      and
      shall inure to the benefit of the Purchaser, 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 either
      the Company or the Purchaser of a breach of any of the foregoing representations
      and warranties which materially and adversely affects the value of the Mortgage
      Loans or the interest of the Purchaser, or which materially and adversely
      affects the interests of Purchaser in the related Mortgage Loan in the case
      of a
      representation and warranty relating to a particular Mortgage Loan (in the
      case
      of any of the foregoing, a “Breach”), the party discovering such Breach
      shall give prompt written notice to the other.

     

    With
      respect to those representations and warranties which are made to the best
      of
      the Company’s knowledge, if it is discovered by the Company or the Purchaser
      that the substance of such representation and warranty is inaccurate and such
      inaccuracy materially and adversely affects the value of the related Mortgage
      Loan or the interest of the Purchaser (or which materially and adversely affects
      the value of a Mortgage Loan or the interests of the Purchaser in the related
      Mortgage Loan in the case of a representation and warranty relating to a
      particular Mortgage Loan), notwithstanding the Company’s lack of knowledge with
      respect to the substance of such representation and warranty, such inaccuracy
      shall be deemed a breach of the applicable representation and
      warranty.

     

    Within
      60
      days of the earlier of either discovery by or notice to the Company of any
      Breach of a representation or warranty, the Company shall use its best efforts
      promptly to cure such Breach in all material respects and, if such Breach cannot
      be cured, the Company shall, at the Purchaser’s option and subject to Section
      3.06, repurchase such Mortgage Loan at the Repurchase Price. In the event that
      a
      Breach shall involve any representation or warranty set forth in Section 3.01,
      and such Breach cannot be cured within 60 days of the earlier of either
      discovery by or notice to the Company of such Breach, all of the Mortgage Loans
      shall, at the Purchaser’s option and subject to Section 3.06, be repurchased by
      the Company at the Repurchase Price. However, if the Breach shall involve a
      representation or warranty set forth in Section 3.02 and the Company discovers
      or receives notice of any such Breach within 120 days of the related Closing
      Date, the Company shall, at the Purchaser’s option and provided that the Company
      has a Qualified Substitute Mortgage Loan, rather than repurchase the Mortgage
      Loan as provided above, remove such Mortgage Loan (a “Deleted Mortgage
      Loan”) and substitute in its place a Qualified Substitute Mortgage Loan or
      Loans, provided that any such substitution shall be effected not later than
      120
      days after the related Closing Date. If the Company has no Qualified Substitute
      Mortgage Loan, it shall repurchase the deficient Mortgage Loan. Any repurchase
      of a Mortgage Loan or Loans pursuant to the foregoing provisions of this Section
      3.03 shall be accomplished by deposit in the Custodial Account of the amount
      of
      the Repurchase Price for distribution to Purchaser on the next scheduled
      Remittance Date, after deducting therefrom any amount received in respect of
      such repurchased Mortgage Loan or Loans and being held in the Custodial Account
      for future distribution.

     

    At
      the
      time of repurchase or substitution, the Purchaser and the Company shall arrange
      for the reassignment of the Deleted Mortgage Loan to the Company and the
      delivery to the Company of any documents held by the Custodian relating to
      the
      Deleted Mortgage Loan. In the event of a repurchase or substitution, the Company
      shall, simultaneously with such reassignment, give written notice to the
      Purchaser that such repurchase or substitution has taken place, amend the
      related Mortgage Loan Schedule to reflect the withdrawal of the Deleted Mortgage
      Loan from this Agreement, and, in the case of substitution, identify a Qualified
      Substitute Mortgage Loan and amend the related Mortgage Loan Schedule to reflect
      the addition of such Qualified Substitute Mortgage Loan to this Agreement.
      In
      connection with any such substitution, the Company shall be deemed to have
      made
      as to such Qualified Substitute Mortgage Loan the representations and warranties
      set forth in this Agreement except that all such representations and warranties
      set forth in this Agreement shall be deemed made as of the date of such
      substitution. The Company shall effect such substitution by delivering to the
      Custodian for such Qualified Substitute Mortgage Loan the documents required
      by
      Section 2.03, with the Mortgage Note endorsed as required by Section 2.03.
      No
      substitution will be made in any calendar month after the Determination Date
      for
      such month. The Company shall deposit in the Custodial Account the Monthly
      Payment less the Servicing Fee due on such Qualified Substitute Mortgage Loan
      or
      Loans in the month following the date of such substitution. Monthly Payments
      due
      with respect to Qualified Substitute Mortgage Loans in the month of substitution
      shall be retained by the Company. For the month of substitution, distributions
      to Purchaser shall include the Monthly Payment due on any Deleted Mortgage
      Loan
      in the month of substitution, and the Company shall thereafter be entitled
      to
      retain all amounts subsequently received by the Company in respect of such
      Deleted Mortgage Loan.

     

    For
      any
      month in which the Company substitutes a Qualified Substitute Mortgage Loan
      for
      a Deleted Mortgage Loan, the Company shall determine the amount (if any) by
      which the aggregate principal balance of all Qualified Substitute Mortgage
      Loans
      as of the date of substitution is less than the aggregate Stated Principal
      Balance of all Deleted Mortgage Loans (after application of scheduled principal
      payments due in the month of substitution). The amount of such shortfall shall
      be distributed by the Company in the month of substitution pursuant to Section
      5.01. Accordingly, on the date of such substitution, the Company shall deposit
      from its own funds into the Custodial Account an amount equal to the amount
      of
      such shortfall.

     

    Any
      cause
      of action against the Company relating to or arising out of the Breach of any
      representations and warranties made in Sections 3.01 and 3.02 shall accrue
      as to
      any Mortgage Loan upon (i) discovery of such Breach by the Purchaser or notice
      thereof by the Company to the Purchaser, (ii) failure by the Company to cure
      such Breach or repurchase such Mortgage Loan as specified above, and (iii)
      demand upon the Company by the Purchaser for compliance with this
      Agreement.

     

    
      	
            	
              Section
                3.04

            	
              Indemnification.

            

    

     

    The
      Company agrees to indemnify the Purchaser and hold it harmless from and against
      any and all claims, losses, damages, penalties, fines, forfeitures, legal fees
      and related costs, judgments, and any other costs, fees and expenses that the
      Purchaser may sustain in any way related any assertion based on, grounded upon
      resulting from a Breach of any of the Company’s representations and warranties
      contained herein. In addition to the obligations of the Company set forth in
      this Section 3.04, the Purchaser may pursue any and all remedies otherwise
      available at law or in equity, including, but not limited to, the right to
      seek
      damages.  The provisions of this Section 3.04 shall survive
      termination of this Agreement.

     

    It
      is
      understood and agreed that the obligations of the Company set forth in Sections
      3.03 and 3.04 to cure, substitute for or repurchase a defective Mortgage Loan
      and to indemnify the Purchaser constitute the sole remedies of the Purchaser
      respecting a Breach of the foregoing representations and
      warranties.

     

     

    
      	
            	
              Section
                3.05

            	
              Repurchase
                Upon Conversion.

            

    

    

    In
      the
      event the Mortgagor under any Convertible Mortgage Loan elects to convert said
      Mortgage Loan to a fixed rate mortgage loan, as provided in the related Mortgage
      Note, then the Company shall repurchase the related Mortgage Loan in the month
      the conversion takes place and in the manner prescribed in Section 3.04 at
      the
      Repurchase Price.

     

    
      	
            	
              Section
                3.06

            	
              Restrictions
                and Requirements Applicable in the Event

              
                that
                  a Mortgage Loan is Acquired by a
                  REMIC

              

            

    

     

    In
      the
      event that any Mortgage Loan is held by a REMIC, notwithstanding any contrary
      provision of this Agreement, the following provisions shall be applicable to
      such Mortgage Loan:

     

    
      	
            	
              (A)

            	
              Repurchase
                of Mortgage Loans.

            

    

     

    With
      respect to any Mortgage Loan that is not in default or as to which no default
      is
      imminent, no repurchase or substitution pursuant to Subsection 3.03, 3.05,
      3.07
      or 7.02 shall be made, unless, if so required by the applicable REMIC Documents
      the Company has obtained an Opinion of Counsel to the effect that such
      repurchase will not (i) result in the imposition of taxes on “prohibited
      transactions” of such REMIC (as defined in Section 860F of the Code) or
      otherwise subject the REMIC to tax, or (ii) cause the REMIC to fail to qualify
      as a REMIC at any time.

     

    
      	
            	
              (B)

            	
              General
                Servicing Obligations.

            

    

     

    The
      Company shall sell any REO Property within two years after its acquisition
      by
      the REMIC unless (i) the Company applies for an extension of such two-year
      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 Company obtains for the Purchaser
      an Opinion of Counsel, addressed to the Purchaser and the Company, to the effect
      that the holding by the REMIC of such REO Property subsequent to such two year
      period will not result in the imposition of taxes on “prohibited transactions”
as defined in Section 860F of the Code or cause the REMIC to fail to qualify
      as
      a REMIC under the REMIC Provisions or comparable provisions of relevant state
      laws at any time. The Company shall manage, conserve, protect and operate each
      REO Property for the Purchaser 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 the REMIC 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 Company shall either
      itself or through an agent selected by the Company 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 Purchaser, rent the same, or any part
      thereof, as the Company deems to be in the best interest of the Company and
      the
      Purchaser 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.

     

    
      	
            	
              (C)

            	
              Additional
                Covenants.

            

    

     

    In
      addition to the provision set forth in this Section 3.06, if a REMIC election
      is
      made with respect to the arrangement under which any of the Mortgage Loans
      or
      REO Properties are held, then, with respect to such Mortgage Loans and/or REO
      Properties, and notwithstanding the terms of this Agreement, the Company shall
      not take any action, cause the REMIC to take any action or fail to take (or
      fail
      to cause to be taken) any action that, under the REMIC Provisions, if taken
      or
      not taken, as the case may be, could (i) endanger the status of the REMIC as
      a
      REMIC or (ii) result in the imposition of a tax upon the REMIC (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) unless the Company has received an Opinion of
      Counsel (at the expense of the party seeking to take such action) to the effect
      that the contemplated action will not endanger such REMIC status or result
      in
      the imposition of any such tax.

     

    If
      a
      REMIC election is made with respect to the arrangement under which any Mortgage
      Loans or REO Properties are held, the Company shall amend this Agreement such
      that it will meet all Rating Agency requirements.

     

    
      	
            	
              Section
                3.07

            	
              Review
                of Mortgage Loans

            

    

     

    From
      the
      related Closing Date until the date 15 days after the related Closing Date,
      the
      Purchaser shall have the right to review the Mortgage Files and obtain BPOs
      and
      other property evaluations on the Mortgaged Properties relating to the Mortgage
      Loans purchased on the related Closing Date, with the results of such BPO or
      property evaluation reviews to be communicated to the Company for a period
      up to
      15 days after the related Closing Date.  In addition, the Purchaser
      shall have the right to reject any Mortgage Loan which in the Purchaser’s sole
      determination (i) fails to conform to the Underwriting Guidelines, (ii) the
      value of the Mortgaged Property pursuant to any BPO or property evaluation
      varies by more than plus or minus 15% from the lesser of (A) the original
      appraised value of the Mortgage Property or (B) the purchase price of the
      Mortgaged Property as of the date of origination (a “Value Issue”), (iii)
      the Mortgage Loan is underwritten without verification of the Borrower’s income
      and assets and there is no credit report and credit score or (iv) the Purchaser
      deems the Mortgage Loan not to be an acceptable credit risk. The Company shall
      repurchase the rejected Mortgage Loan in the manner prescribed in Section 3.03
      upon receipt of notice from the Purchaser of the rejection of such Mortgage
      Loan; provided, that, in the event that the Purchaser rejects a Mortgage Loan
      due to a Value Issue, the Company may submit to the Purchaser an additional
      property evaluation for purposes of demonstrating that the Mortgage Loan does
      not have a Value Issue.  If the Purchaser and the Company fail to
      resolve such Value Issue within two weeks of the Purchaser presenting such
      Value
      Issue to the Company, then Company shall have the right to promptly (a)
      substitute such Mortgage Loan with a Qualified Substitute Mortgage Loan meeting
      all the terms hereof, or (b) repurchase such Mortgage Loan in the manner
      prescribed in Section 3.03.  Any rejected Mortgage Loan shall be
      removed from the terms of this Agreement.  The Company shall make
      available all files required by Purchaser in order to complete its review,
      including capturing all CRA/HMDA required data fields.  Any review
      performed by the Purchaser prior to the related Closing Date does not limit
      the
      Purchaser’s rights or the Company’s obligations under this section. To the
      extent that the Purchaser’s review discloses that the Mortgage Loans do not
      conform to the Underwriting Guidelines or the terms set forth in the Purchaser
      Price and Terms Letter, the Purchaser may in its sole discretion increase its
      due diligence review and obtain additional BPO’s or other property
      evaluations.  The additional review may be for any reason including
      but not limited to credit quality, property valuations, and data
      integrity.

     

    ARTICLE
      IV

     

    ADMINISTRATION
      AND SERVICING OF MORTGAGE LOANS

     

    
      	
            	
              Section
                4.01

            	
              Company
                to Act as Servicer.

            

    

     

    The
      Company shall service and administer the Mortgage Loans and shall have full
      power and authority, acting alone, to do any and all things in connection with
      such servicing and administration which the Company may deem necessary or
      desirable, consistent with the terms of this Agreement and with Accepted
      Servicing Practices.

     

     

    Consistent
      with the terms of this Agreement, the Company may waive, modify or vary any
      term
      of any Mortgage Loan or consent to the postponement of strict compliance with
      any such term or in any manner grant indulgence to any Mortgagor if in the
      Company’s reasonable and prudent determination such waiver, modification,
      postponement or indulgence is not materially adverse to the Purchasers,
      provided, however, that the Company shall not make any future advances with
      respect to a Mortgage Loan and (unless the Mortgagor is in default with respect
      to the Mortgage Loan or such default is, in the judgment of the Company,
      imminent and the Company has obtained the prior written consent of the
      Purchaser) the Company shall not permit any modification of any material term
      of
      any Mortgage Loan including any modifications that would change the Mortgage
      Interest Rate change the Index, Lifetime Mortgage Interest Rate Cap, Initial
      Rate Cap or Gross Margin of any Mortgage Loan, defer or forgive the payment
      of
      principal or interest, reduce or increase the outstanding principal balance
      (except for actual payments of principal) or change the final maturity date
      on
      such Mortgage Loan. In the event of any such modification which permits the
      deferral of interest or principal payments on any Mortgage Loan, the Company
      shall, on the Business Day immediately preceding the Remittance Date in any
      month in which any such principal or interest payment has been deferred, deposit
      in the Custodial Account from its own funds, in accordance with Section 5.03,
      the difference between (a) such month’s principal and one month’s interest at
      the Mortgage Loan Remittance Rate on the unpaid principal balance of such
      Mortgage Loan and (b) the amount paid by the Mortgagor. The Company shall be
      entitled to reimbursement for such advances to the same extent as for all other
      advances made pursuant to Section 5.03. Without limiting the generality of
      the
      foregoing, the Company shall continue, and is hereby authorized and empowered,
      to execute and deliver on behalf of itself and the Purchasers, all instruments
      of satisfaction or cancellation, or of partial or full release, discharge and
      all other comparable instruments, with respect to the Mortgage Loans and with
      respect to the Mortgaged Properties. If reasonably required by the Company,
      the
      Purchaser shall furnish the Company with any powers of attorney and other
      documents necessary or appropriate to enable the Company to carry out its
      servicing and administrative duties under this Agreement.

     

    In
      servicing and administering the Mortgage Loans, the Company shall employ
      procedures (including collection procedures) and exercise the same care that
      it
      customarily employs and exercises in servicing and administering mortgage loans
      for its own account, giving due consideration to Accepted Servicing Practices
      where such practices do not conflict with the requirements of this Agreement,
      and the Purchaser’s reliance on the Company.

     

    The
      Mortgage Loans may be subserviced by the Subservicer on behalf of the Company
      provided that the Subservicer is a Fannie Mae-approved lender or a Freddie
      Mac
      seller/servicer in good standing, and no event has occurred, including but
      not
      limited to a change in insurance coverage, which would make it unable to comply
      with the eligibility requirements for lenders imposed by Fannie Mae or for
      seller/servicers imposed by Freddie Mac, or which would require notification
      to
      Fannie Mae or Freddie Mac. The Company may perform any of its servicing
      responsibilities hereunder or may cause the Subservicer to perform any such
      servicing responsibilities on its behalf, but the use by the Company of the
      Subservicer shall not release the Company from any of its obligations hereunder
      and the Company shall remain responsible hereunder for all acts and omissions
      of
      the Subservicer as fully as if such acts and omissions were those of the
      Company. The Company shall pay all fees and expenses of the Subservicer from
      its
      own funds, and the Subservicer’s fee shall not exceed the Servicing
      Fee.

     

    At
      the
      cost and expense of the Company, without any right of reimbursement from the
      Custodial Account, the Company shall be entitled to terminate the rights and
      responsibilities of the Subservicer and arrange for any servicing
      responsibilities to be performed by a successor Subservicer meeting the
      requirements in the preceding paragraph, provided, however, that nothing
      contained herein shall be deemed to prevent or prohibit the Company, at the
      Company’s option, from electing to service the related Mortgage Loans itself. In
      the event that the Company’s responsibilities and duties under this Agreement
      are terminated pursuant to Section 9.04, 10.01 or 11.02, and if requested to
      do
      so by the Purchaser, the Company shall at its own cost and expense terminate
      the
      rights and responsibilities of the Subservicer as soon as is reasonably
      possible. The Company shall pay all fees, expenses or penalties necessary in
      order to terminate the rights and responsibilities of the Subservicer from
      the
      Company’s own funds without reimbursement from the Purchaser.

     

    Notwithstanding
      any of the provisions of this Agreement relating to agreements or arrangements
      between the Company and the Subservicer or any reference herein to actions
      taken
      through the Subservicer or otherwise, the Company shall not be relieved of
      its
      obligations to the Purchaser and shall be obligated to the same extent and
      under
      the same terms and conditions as if it alone were servicing and administering
      the Mortgage Loans. The Company shall be entitled to enter into an agreement
      with the Subservicer for indemnification of the Company by the Subservicer
      and
      nothing contained in this Agreement shall be deemed to limit or modify such
      indemnification.

     

    Any
      Subservicing Agreement and any other transactions or services relating to the
      Mortgage Loans involving the Subservicer shall be deemed to be between the
      Subservicer and Company alone, and the Purchaser shall have no obligations,
      duties or liabilities with respect to the Subservicer including no obligation,
      duty or liability of Purchaser to pay the Subservicer’s fees and expenses. For
      purposes of distributions and advances by the Company pursuant to this
      Agreement, the Company shall be deemed to have received a payment on a Mortgage
      Loan when the Subservicer has received such payment.

     

    
      	
            	
              Section
                4.02

            	
              Liquidation
                of Mortgage Loans.

            

    

     

    In
      the
      event that any payment due under any Mortgage Loan and not postponed pursuant
      to
      Section 4.01 is not paid when the same becomes due and payable, or in the event
      the Mortgagor fails to perform any other covenant or obligation under the
      Mortgage Loan and such failure continues beyond any applicable grace period,
      the
      Company shall take such action as (1) the Company would take under similar
      circumstances with respect to a similar mortgage loan held for its own account
      for investment, (2) shall be consistent with Accepted Servicing Practices,
      (3)
      the Company shall determine prudently to be in the best interest of Purchaser,
      and (4) is consistent with any related PMI Policy. In the event that any payment
      due under any Mortgage Loan is not postponed pursuant to Section 4.01 and
      remains delinquent for a period of 90 days or any other default continues for
      a
      period of 90 days beyond the expiration of any grace or cure period, the Company
      shall commence foreclosure proceedings, provided that, prior to commencing
      foreclosure proceedings, the Company shall notify the Purchaser in writing
      of
      the Company’s intention to do so, and the Company shall not commence foreclosure
      proceedings if the Purchaser objects to such action within 10 Business Days
      of
      receiving such notice. In the event the Purchaser objects to such foreclosure
      action, the Company shall not be required to make Monthly Advances with respect
      to such Mortgage Loan, pursuant to Section 5.03, and the Company’s obligation to
      make such Monthly Advances shall terminate on the 90th day referred to
      above.  In such connection, the Company shall from its own funds make
      all necessary and proper Servicing Advances, provided, however, that the Company
      shall not be required to expend its own funds in connection with any foreclosure
      or towards the restoration or preservation of any Mortgaged Property, unless
      it
      shall determine (a) that such preservation, restoration and/or foreclosure
      will
      increase the proceeds of liquidation of the Mortgage Loan to Purchaser after
      reimbursement to itself for such expenses and (b) that such expenses will be
      recoverable by it either through Liquidation Proceeds (respecting which it
      shall
      have priority for purposes of withdrawals from the Custodial Account pursuant
      to
      Section 4.05) or through Insurance Proceeds (respecting which it shall have
      similar priority).

     

    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 Company has
      reasonable cause to believe that a Mortgaged Property is contaminated by
      hazardous or toxic substances or wastes, or if the Purchaser otherwise requests
      an environmental inspection or review of such Mortgaged Property to be conducted
      by a qualified inspector. Upon completion of the inspection, the Company shall
      promptly provide the Purchaser with a written report of the environmental
      inspection.

     

    After
      reviewing the environmental inspection report, the Purchaser shall determine
      how
      the Company shall 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 Purchaser directs the Company to proceed with foreclosure or
      acceptance of a deed in lieu of foreclosure, the Company shall be reimbursed
      for
      all 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 Company, the Company shall be entitled
      to be
      reimbursed from amounts in the Custodial Account pursuant to Section 4.05
      hereof. In the event the Purchaser directs the Company not to proceed with
      foreclosure or acceptance of a deed in lieu of foreclosure, the Company shall
      be
      reimbursed for all Servicing Advances made with respect to the related Mortgaged
      Property from the Custodial Account pursuant to Section 4.05
      hereof.

     

    
      	
            	
              Section
                4.03

            	
              Collection
                of Mortgage Loan Payments.

            

    

     

    Continuously
      from the date hereof until the principal and interest on all Mortgage Loans
      are
      paid in full, the Company shall proceed diligently to collect all payments
      due
      under each of the Mortgage Loans when the same shall become due and payable
      and
      shall take special care in ascertaining and estimating Escrow Payments and
      all
      other charges that will become due and payable with respect to the Mortgage
      Loan
      and the Mortgaged Property, to the end that the installments payable by the
      Mortgagors will be sufficient to pay such charges as and when they become due
      and payable.

     

    
      	
            	
              Section
                4.04

            	
              Establishment
                of and Deposits to Custodial
                Account.

            

    

     

    The
      Company shall segregate and hold all funds collected and received pursuant
      to a
      Mortgage Loan separate and apart from any of its own funds and general assets
      and shall establish and maintain one or more Custodial Accounts, in the form
      of
      time deposit or demand accounts, titled “Countrywide Home Loans, Inc. in trust
      for EMC Mortgage Corporation, as purchaser of Residential Adjustable Rate
      Mortgage Loans and various Mortgagors”. The Custodial Account shall be
      established with a Qualified Depository acceptable to the Purchaser. Any funds
      deposited in the Custodial Account shall at all times be fully insured to the
      full extent permitted under applicable law.  Funds deposited in the
      Custodial Account may be drawn on by the Company in accordance with Section
      4.05. The creation of any Custodial Account shall be evidenced by a
      certification in the form of Exhibit D-1 hereto, in the case of an
      account established with the Company, or by a letter agreement in the form
      of
Exhibit D-2 hereto, in the case of an account held by a depository other
      than the Company. A copy of such certification or letter agreement shall be
      furnished to the Purchaser and, upon request, to any subsequent
      Purchaser.

     

    The
      Company shall deposit in the Custodial Account within two Business Days of
      receipt, and retain therein, the following collections received by the Company
      and payments made by the Company after the related Cut-off Date, (other than
      payments of principal and interest due on or before the related Cut-off Date,
      or
      received by the Company prior to the related Cut-off Date but allocable to
      a
      period subsequent thereto or with respect to each LPMI Loan, in the amount
      of
      the LPMI Fee):

     

    (i)  all
      payments on account of principal on the Mortgage Loans, including all Principal
      Prepayments;

     

    (ii)  all
      payments on account of interest on the Mortgage Loans adjusted to the Mortgage
      Loan Remittance Rate;

     

    (iii)  all
      Liquidation Proceeds;

     

    (iv)  all
      Insurance Proceeds including amounts required to be deposited pursuant to
      Section 4.10, Section 4.11, Section 4.14 and Section 4.15;

     

    (v)  all
      Condemnation Proceeds which are not applied to the restoration or repair of
      the
      Mortgaged Property or released to the Mortgagor in accordance with Section
      4.14;

     

    (vi)  any
      amount required to be deposited in the Custodial Account pursuant to Section
      4.01, 4.09, 5.03, 6.01 or 6.02;

     

    (vii)  any
      amounts payable in connection with the repurchase of any Mortgage Loan pursuant
      to Section 3.03, 3.05 or 3.07 and all amounts required to be deposited by the
      Company in connection with a shortfall in principal amount of any Qualified
      Substitute Mortgage Loan pursuant to Section 3.03;

     

    (viii)  with
      respect to each Principal Prepayment in full or in part, the Prepayment Interest
      Shortfall Amount, if any, for the month of distribution. Such deposit shall
      be
      made from the Company’s own funds, without reimbursement therefor up to a
      maximum amount per month of the Servicing Fee actually received for such month
      for the Mortgage Loans;

     

    (ix)  any
      amounts required to be deposited by the Company pursuant to Section 4.11 in
      connection with the deductible clause in any blanket hazard insurance policy;
      and

     

    (x)  any
      amounts received with respect to or related to any REO Property and all REO
      Disposition Proceeds pursuant to Section 4.16.

     

    The
      foregoing requirements for deposit into the Custodial 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 and assumption
      fees, to the extent permitted by Section 6.01, need not be deposited by the
      Company into the Custodial Account. Any interest paid on funds deposited in
      the
      Custodial Account by the depository institution shall accrue to the benefit
      of
      the Company and the Company shall be entitled to retain and withdraw such
      interest from the Custodial Account pursuant to Section 4.05.

     

    
      	
            	
              Section
                4.05

            	
              Permitted
                Withdrawals From Custodial
                Account.

            

    

     

    The
      Company shall, from time to time, withdraw funds from the Custodial Account
      for
      the following purposes:

     

    (i)  to
      make
      payments to the Purchaser in the amounts and in the manner provided for in
      Section 5.01;

     

    (ii)  to
      reimburse itself for Monthly Advances of the Company’s funds made pursuant to
      Section 5.03, the Company’s right to reimburse itself pursuant to this subclause
      (ii) being limited to amounts received on the related Mortgage Loan which
      represent late payments of principal and/or interest respecting which any such
      advance was made, it being understood that, in the case of any such
      reimbursement, the Company’s right thereto shall be prior to the rights of
      Purchaser, except that, where the Company is required to repurchase a Mortgage
      Loan pursuant to Section 3.03, 3.05, 3.07 or 6.02, the Company’s right to such
      reimbursement shall be subsequent to the payment to the Purchaser of the
      Repurchase Price pursuant to such sections and all other amounts required to
      be
      paid to the Purchaser with respect to such Mortgage Loan;

     

    (iii)  to
      reimburse itself for unreimbursed Servicing Advances, and for any unpaid
      Servicing Fees, the Company’s right to reimburse itself pursuant to this
      subclause (iii) with respect to any Mortgage Loan being limited to related
      Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds and such other
      amounts as may be collected by the Company from the Mortgagor or otherwise
      relating to the Mortgage Loan, it being understood that, in the case of any
      such
      reimbursement, the Company’s right thereto shall be prior to the rights of
      Purchaser except where the Company is required to repurchase a Mortgage Loan
      pursuant to Section 3.03, 3.05, 3.07 or 6.02, in which case the Company’s right
      to such reimbursement shall be subsequent to the payment to the Purchasers
      of
      the Repurchase Price pursuant to such sections and all other amounts required
      to
      be paid to the Purchasers with respect to such Mortgage Loan;

     

    (iv)  to
      pay
      itself interest on funds deposited in the Custodial Account;

     

    (v)  to
      reimburse itself for expenses incurred and reimbursable to it pursuant to
      Section 9.01;

     

    (vi)  to
      pay
      any amount required to be paid pursuant to Section 4.16 related to any REO
      Property, it being understood that in the case of any such expenditure or
      withdrawal related to a particular REO Property, the amount of such expenditure
      or withdrawal from the Custodial Account shall be limited to amounts on deposit
      in the Custodial Account with respect to the related REO Property;

     

    (vii)  to
      clear
      and terminate the Custodial Account upon the termination of this Agreement;
      and

     

    (viii)  to
      withdraw funds deposited in error.

     

    In
      the
      event that the Custodial Account is interest bearing, on each Remittance Date,
      the Company shall withdraw all funds from the Custodial Account except for
      those
      amounts which, pursuant to Section 5.01, the Company is not obligated to remit
      on such Remittance Date. The Company may use such withdrawn funds only for
      the
      purposes described in this Section 4.05.

     

    
      	
            	
              Section
                4.06

            	
              Establishment
                of and Deposits to Escrow
                Account.

            

    

     

    The
      Company shall segregate and hold all funds collected and received pursuant
      to a
      Mortgage Loan constituting Escrow Payments separate and apart from any of its
      own funds and general assets and shall establish and maintain one or more Escrow
      Accounts, in the form of time deposit or demand accounts, titled, “Countrywide
      Home Loans, Inc., in trust for the EMC Mortgage Corporation, as purchaser of
      Residential Adjustable Rate Mortgage Loans and various Mortgagors”. The Escrow
      Accounts shall be established with a Qualified Depository, in a manner which
      shall provide maximum available insurance thereunder. Funds deposited in the
      Escrow Account may be drawn on by the Company in accordance with Section 4.07.
      The creation of any Escrow Account shall be evidenced by a certification in
      the
      form of Exhibit E-1 hereto, in the case of an account established with
      the Company, or by a letter agreement in the form of Exhibit E-2 hereto,
      in the case of an account held by a depository other than the Company. A copy
      of
      such certification shall be furnished to the Purchaser and, upon request, to
      any
      subsequent Purchaser.

     

    The
      Company shall deposit in the Escrow Account or Accounts within two Business
      Days
      of receipt, and retain therein:

     

    (i)  all
      Escrow Payments collected on account of the Mortgage Loans, for the purpose
      of
      effecting timely payment of any such items as required under the terms of this
      Agreement; and

     

    (ii)  all
      amounts representing Insurance Proceeds or Condemnation Proceeds which are
      to be
      applied to the restoration or repair of any Mortgaged Property.

     

    The
      Company shall make withdrawals from the Escrow Account only to effect such
      payments as are required under this Agreement, as set forth in Section 4.07.
      The
      Company shall be entitled to retain any interest paid on funds deposited in
      the
      Escrow Account by the depository institution, other than interest on escrowed
      funds required by law to be paid to the Mortgagor. To the extent required by
      law, the Company shall pay interest on escrowed funds to the Mortgagor
      notwithstanding that the Escrow Account may be non-interest bearing or that
      interest paid thereon is insufficient for such purposes.

     

    
      	
            	
              Section
                4.07

            	
              Permitted
                Withdrawals From Escrow
                Account.

            

    

     

    Withdrawals
      from the Escrow Account or Accounts may be made by the Company
      only:

     

    (i)  to
      effect
      timely payments of ground rents, taxes, assessments, water rates, mortgage
      insurance premiums, condominium charges, fire and hazard insurance premiums
      or
      other items constituting Escrow Payments for the related Mortgage;

     

    (ii)  to
      reimburse the Company for any Servicing Advances made by the Company pursuant
      to
      Section 4.08 with respect to a related Mortgage Loan, but only from amounts
      received on the related Mortgage Loan which represent late collections of Escrow
      Payments thereunder;

     

    (iii)  to
      refund
      to any Mortgagor any funds found to be in excess of the amounts required under
      the terms of the related Mortgage Loan;

     

    (iv)  for
      transfer to the Custodial Account and application to reduce the principal
      balance of the Mortgage Loan in accordance with the terms of the related
      Mortgage and Mortgage Note;

     

    (v)  for
      application to restoration or repair of the Mortgaged Property in accordance
      with the procedures outlined in Section 4.14;

     

    (vi)  to
      pay to
      the Company, or any Mortgagor to the extent required by law, any interest paid
      on the funds deposited in the Escrow Account;

     

    (vii)  to
      clear
      and terminate the Escrow Account on the termination of this Agreement;
      and

     

    (viii)  to
      withdraw funds deposited in error.

     

    
      	
            	
              Section
                4.08

            	
              Payment
                of Taxes, Insurance and Other
                Charges.

            

    

     

    With
      respect to each Mortgage Loan, the Company shall maintain accurate records
      reflecting the status of ground rents, taxes, assessments, water rates, sewer
      rents, and other charges which are or may become a lien upon the Mortgaged
      Property and the status of PMI Policy premiums and fire and hazard insurance
      coverage and shall obtain, from time to time, all bills for the payment of
      such
      charges (including renewal premiums) and shall effect payment thereof prior
      to
      the applicable penalty or termination date, employing for such purpose deposits
      of the Mortgagor in the Escrow Account which shall have been estimated and
      accumulated by the Company in amounts sufficient for such purposes, as allowed
      under the terms of the Mortgage. To the extent that a Mortgage does not provide
      for Escrow Payments, the Company shall determine that any such payments are
      made
      by the Mortgagor at the time they first become due. The Company assumes full
      responsibility for the timely payment of all such bills and shall effect timely
      payment of all such charges irrespective of each Mortgagor’s faithful
      performance in the payment of same or the making of the Escrow Payments, and
      the
      Company shall make advances from its own funds to effect such
      payments.

     

    
      	
            	
              Section
                4.09

            	
              Protection
                of Accounts.

            

    

     

    The
      Company may transfer the Custodial Account or the Escrow Account to a different
      Qualified Depository from time to time. Upon any such transfer, the Company
      shall promptly notify the Purchaser and deliver to the Purchaser a Custodial
      Account Certification or Escrow Account Certification (as applicable) in the
      form of Exhibit D-1 or E-1 to this agreement.

     

    The
      Company shall bear any expenses, losses or damages sustained by the Purchaser
      because the Custodial Account and/or the Escrow Account are not demand deposit
      accounts.

     

    Amounts
      on deposit in the Custodial Account and the Escrow Account may at the option
      of
      the Company be invested in Eligible Investments; provided that in the event
      that
      amounts on deposit in the Custodial Account or the Escrow Account exceed the
      amount fully insured by the FDIC (the “Insured Amount”) the Company shall
      be obligated to invest the excess amount over the Insured Amount in Eligible
      Investments on the same Business Day as such excess amount becomes present
      in
      the Custodial Account or the Escrow Account. Any such Eligible Investment shall
      mature no later than the Determination Date next following the date of such
      Eligible Investment, provided, however, that if such Eligible Investment is
      an
      obligation of a Qualified Depository (other than the Company) that maintains
      the
      Custodial Account or the Escrow Account, then such Eligible Investment may
      mature on such Remittance Date. Any such Eligible Investment shall be made
      in
      the name of the Company in trust for the benefit of the Purchaser. All income
      on
      or gain realized from any such Eligible Investment shall be for the benefit
      of
      the Company and may be withdrawn at any time by the Company. Any losses incurred
      in respect of any such investment shall be deposited in the Custodial Account
      or
      the Escrow Account, by the Company out of its own funds immediately as
      realized.

     

    
      	
            	
              Section
                4.10

            	
              Maintenance
                of Hazard Insurance.

            

    

     

    The
      Company shall cause to be maintained for each Mortgage Loan hazard insurance
      such that all buildings upon the Mortgaged Property are insured by a generally
      acceptable insurer rated A:VI or better in the current Best’s Key Rating Guide
      (“Best’s”) against loss by fire, hazards of extended coverage and such
      other hazards as are customary in the area where the Mortgaged Property is
      located, in an amount which is at least equal to the lesser of (i) the
      replacement value of the improvements securing such Mortgage Loan and (ii)
      the
      greater of (a) the outstanding principal balance of the Mortgage Loan and (b)
      an
      amount such that the proceeds thereof shall be sufficient to prevent the
      Mortgagor or the loss payee from becoming a co-insurer.

     

    If
      a
      Mortgaged Property is located in an area identified in the Federal Register
      by
      the Flood 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 with a generally acceptable insurance carrier rated A:VI or better
      in Best’s in an amount representing coverage 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 insurance which is available under
      the
      Flood Disaster Protection Act of 1973, as amended. If at any time during the
      term of the Mortgage Loan, the Company determines in accordance with applicable
      law and pursuant to the Fannie Mae Guides that a Mortgaged Property is located
      in a special flood hazard area and is not covered by flood insurance or is
      covered in an amount less than the amount required by the Flood Disaster
      Protection Act of 1973, as amended, the Company shall notify the related
      Mortgagor that the Mortgagor must obtain such flood insurance coverage, and
      if
      said Mortgagor fails to obtain the required flood insurance coverage within
      forty-five (45) days after such notification, the Company shall immediately
      force place the required flood insurance on the Mortgagor’s behalf.

     

    If
      a
      Mortgage is secured by a unit in a condominium project, the Company shall verify
      that the coverage required of the owner’s association, including hazard, flood,
      liability, and fidelity coverage, is being maintained in accordance with then
      current Fannie Mae requirements, and secure from the owner’s association its
      agreement to notify the Company promptly of any change in the insurance coverage
      or of any condemnation or casualty loss that may have a material effect on
      the
      value of the Mortgaged Property as security.

     

    The
      Company shall cause to be maintained on each Mortgaged Property earthquake
      or
      such other or additional insurance as may be required pursuant to such
      applicable laws and regulations as shall at any time be in force and as shall
      require such additional insurance, or pursuant to the requirements of any
      private mortgage guaranty insurer, or as may be required to conform with
      Accepted Servicing Practices.

     

    In
      the
      event that any Purchaser or the Company shall determine that the Mortgaged
      Property should be insured against loss or damage by hazards and risks not
      covered by the insurance required to be maintained by the Mortgagor pursuant
      to
      the terms of the Mortgage, the Company shall communicate and consult with the
      Mortgagor with respect to the need for such insurance and bring to the
      Mortgagor’s attention the desirability of protection of the Mortgaged
      Property.

     

    All
      policies required hereunder shall name the Company as loss payee and shall
      be
      endorsed with standard or union mortgagee clauses, without contribution, which
      shall provide for at least 30 days prior written notice of any cancellation,
      reduction in amount or material change in coverage.

     

    The
      Company shall not interfere with the Mortgagor’s freedom of choice in selecting
      either his insurance carrier or agent, provided, however, that the Company
      shall
      not accept any such insurance policies from insurance companies unless such
      companies are rated A:VI or better in Best’s and are licensed to do business in
      the jurisdiction in which the Mortgaged Property is located. The Company shall
      determine that such policies provide sufficient risk coverage and amounts,
      that
      they insure the property owner, and that they properly describe the property
      address. The Company shall furnish to the Mortgagor a formal notice of
      expiration of any such insurance in sufficient time for the Mortgagor to arrange
      for renewal coverage by the expiration date.

     

    Pursuant
      to Section 4.04, any amounts collected by the Company under any such policies
      (other than amounts to be deposited in the Escrow Account and applied to the
      restoration or repair of the related Mortgaged Property, or property acquired
      in
      liquidation of the Mortgage Loan, or to be released to the Mortgagor, in
      accordance with the Company’s normal servicing procedures as specified in
      Section 4.14) shall be deposited in the Custodial Account subject to withdrawal
      pursuant to Section 4.05.

     

    
      	
            	
              Section
                4.11

            	
              Maintenance
                of Mortgage Impairment
                Insurance.

            

    

     

    In
      the
      event that the Company shall obtain and maintain a blanket policy insuring
      against losses arising from fire and hazards covered under extended coverage
      on
      all of the Mortgage Loans, then, to the extent such policy provides coverage
      in
      an amount equal to the amount required pursuant to Section 4.10 and otherwise
      complies with all other requirements of Section 4.10, it shall conclusively
      be
      deemed to have satisfied its obligations as set forth in Section 4.10. Any
      amounts collected by the Company under any such policy relating to a Mortgage
      Loan shall be deposited in the Custodial Account subject to withdrawal pursuant
      to Section 4.05. Such policy may contain a deductible clause, in which case,
      in
      the event that there shall not have been maintained on the related Mortgaged
      Property a policy complying with Section 4.10, and there shall have been a
      loss
      which would have been covered by such policy, the Company shall deposit in
      the
      Custodial Account at the time of such loss the amount not otherwise payable
      under the blanket policy because of such deductible clause, such amount to
      deposited from the Company’s funds, without reimbursement therefor. Upon request
      of any Purchaser, the Company shall cause to be delivered to such Purchaser
      a
      certified true copy of such policy and a statement from the insurer thereunder
      that such policy shall in no event be terminated or materially modified without
      30 days’ prior written notice to such Purchaser.

     

    
      	
            	
              Section
                4.12

            	
              Maintenance
                of Fidelity Bond and Errors and Omissions
                Insurance.

            

    

     

    The
      Company shall maintain with responsible companies, at its own expense, a blanket
      Fidelity Bond and an Errors and Omissions Insurance Policy, with broad coverage
      on all officers, employees or other persons acting in any capacity requiring
      such persons to handle funds, money, documents or papers relating to the
      Mortgage Loans (“Company Employees”). Any such Fidelity Bond and Errors
      and Omissions Insurance Policy shall be in the form of the Mortgage Banker’s
      Blanket Bond and shall protect and insure the Company against losses, including
      forgery, theft, embezzle­ment, fraud, errors and omissions and negligent
      acts of such Company Employees. Such Fidelity Bond and Errors and Omissions
      Insurance Policy also shall protect and insure the Company against losses in
      connection with the release or satisfaction of a Mortgage Loan without having
      obtained payment in full of the indebtedness secured thereby. No provision
      of
      this Section 4.12 requiring such Fidelity Bond and Errors and Omissions
      Insurance Policy shall diminish or relieve the Company from its duties and
      obligations as set forth in this Agreement. The minimum coverage under any
      such
      bond and insurance policy shall be acceptable to Fannie Mae or Freddie
      Mac.  Upon the request of any Purchaser, the Company shall cause to be
      delivered to such Purchaser a certified true copy of such fidelity bond and
      insurance policy and a statement from the surety and the insurer that such
      fidelity bond and insurance policy shall in no event be terminated or materially
      modified without 30 days’ prior written notice to the Purchaser.

     

    
      	
            	
              Section
                4.13

            	
              Inspections.

            

    

     

    The
      Company shall inspect the Mortgaged Property as often as deemed necessary by
      the
      Company to assure itself that the value of the Mortgaged Property is being
      preserved. In addition, if any Mortgage Loan is more than 60 days delinquent,
      the Company immediately shall inspect the Mortgaged Property and shall conduct
      subsequent inspections in accordance with Accepted Servicing Practices or as
      may
      be required by the primary mortgage guaranty insurer. The Company shall keep
      a
      written report of each such inspection.

     

    
      	
            	
              Section
                4.14

            	
              Restoration
                of Mortgaged Property.

            

    

     

    The
      Company need not obtain the approval of the Purchaser prior to releasing any
      Insurance Proceeds or Condemnation Proceeds to the Mortgagor to be applied
      to
      the restoration or repair of the Mortgaged Property if such release is in
      accordance with Accepted Servicing Practices. At a minimum, the Company shall
      comply with the following conditions in connection with any such release of
      Insurance Proceeds or Condemnation Proceeds:

     

    (i)  the
      Company shall receive satisfactory independent verification of completion of
      repairs and issuance of any required approvals with respect
      thereto;

     

    (ii)  the
      Company shall take all steps necessary to preserve the priority of the lien
      of
      the Mortgage, including, but not limited to requiring waivers with respect
      to
      mechanics’ and materialmen’s liens;

     

    (iii)  the
      Company shall verify that the Mortgage Loan is not in default; and

     

    (iv)  pending
      repairs or restoration, the Company shall place the Insurance Proceeds or
      Condemnation Proceeds in the Custodial Account.

     

    If
      the
      Purchaser is named as an additional loss payee, the Company is hereby empowered
      to endorse any loss draft issued in respect of such a claim in the name of the
      Purchaser.

     

    
      	
            	
              Section
                4.15

            	
              Maintenance
                of PMI and LPMI Policy; Claims.

            

    

     

    (a)
      With
      respect to each Mortgage Loan with a LTV in excess of 95%, the Company
      shall:

     

    (i)  with
      respect to Mortgage Loans which are not LPMI Loans, in accordance with state
      and
      federal laws and without any cost to the Purchaser, maintain or cause the
      Mortgagor to maintain in full force and effect a PMI Policy with a minimum
      of
      35% coverage insuring that portion of the Mortgage Loan in excess of 68% (or
      such other percentage as stated in the related Acknowledgment Agreement) of
      value, and shall pay or shall cause the Mortgagor to pay the premium thereon
      on
      a timely basis, until the LTV of such Mortgage Loan is reduced to 80%. In the
      event that such PMI Policy shall be terminated, the Company shall obtain from
      another Qualified Insurer a comparable replacement policy, with a total coverage
      equal to the remaining coverage of such terminated PMI Policy, at substantially
      the same fee level. If the insurer shall cease to be a Qualified Insurer, the
      Company shall determine whether recoveries under the PMI Policy are jeopardized
      for reasons related to the financial condition of such insurer, it being
      understood that the Company shall in no event have any responsibility or
      liability for any failure to recover under the PMI Policy for such
      reason.  If the Company determines that recoveries are so jeopardized,
      it shall notify the Purchaser and the Mortgagor, if required, and obtain from
      another Qualified Insurer a replacement insurance policy. The Company shall
      not
      take any action which would result in noncoverage under any applicable PMI
      Policy of any loss which, but for the actions of the Company would have been
      covered thereunder. In connection with any assumption or substitution agreement
      entered into or to be entered into pursuant to Section 4.01, the Company shall
      promptly notify the insurer under the related PMI Policy, if any, of such
      assumption or substitution of liability in accordance with the terms of such
      PMI
      Policy and shall take all actions which may be required by such insurer as
      a
      condition to the continuation of coverage under such PMI Policy. If such PMI
      Policy is terminated as a result of such assumption or substitution of
      liability, the Company shall obtain a replacement PMI Policy as provided
      above.

     

     (ii)
      with respect to LPMI Loans, maintain in full force and effect an LPMI Policy
      insuring that portion of the Mortgage Loan with a minimum of 35% coverage
      insuring that portion of the Mortgage Loan in excess of 68% (or such other
      percentage as stated in the related Acknowledgment Agreement) of value, and
      from
      time to time, withdraw the LPMI Fee with respect to such LPMI Loan from the
      Custodial Account in order to pay the premium thereon on a timely basis, until
      the LTV of such Mortgage Loan is reduced to 80%. In the event that the interest
      payments made with respect to any LPMI Loan are less than the LPMI Fee, the
      Company shall advance from its own funds the amount of any such shortfall in
      the
      LPMI Fee, in payment of the premium on the related LPMI Policy.  Any
      such advance shall be a Servicing Advance subject to reimbursement pursuant
      to
      the provisions on Section 2.05. In the event that such LPMI Policy shall be
      terminated, the Company shall obtain from another Qualified Insurer a comparable
      replacement policy, with a total coverage equal to the remaining coverage of
      such terminated LPMI Policy, at substantially the same fee level. If the insurer
      shall cease to be a Qualified Insurer, the Company shall determine whether
      recoveries under the LPMI Policy are jeopardized for reasons related to the
      financial condition of such insurer, it being understood that the Company shall
      in no event have any responsibility or liability for any failure to recover
      under the LPMI Policy for such reason.  If the Company determines that
      recoveries are so jeopardized, it shall notify the Purchaser and the Mortgagor,
      if required, and obtain from another Qualified Insurer a replacement insurance
      policy.  The Company shall not take any action which would result in
      noncoverage under any applicable LPMI Policy of any loss which, but for the
      actions of the Company would have been covered thereunder. In connection with
      any assumption or substitution agreement entered into or to be entered into
      pursuant to Section 6.01, the Company shall promptly notify the insurer under
      the related LPMI Policy, if any, of such assumption or substitution of liability
      in accordance with the terms of such LPMI Policy and shall take all actions
      which may be required by such insurer as a condition to the continuation of
      coverage under such PMI Policy. If such LPMI Policy is terminated as a result
      of
      such assumption or substitution of liability, the Company shall obtain a
      replacement LPMI Policy as provided above.

     

    (b)           In
      connection with its activities as servicer, the Company agrees to prepare and
      present, on behalf of itself and the Purchaser, claims to the insurer under
      any
      PMI Policy or LPMI Policy in a timely fashion in accordance with the terms
      of
      such PMI Policy or LPMI Policy and, in this regard, to take such action as
      shall
      be necessary to permit recovery under any PMI Policy or LPMI Policy respecting
      a
      defaulted Mortgage Loan. Pursuant to Section 4.04, any amounts collected by
      the
      Company under any PMI Policy or LPMI Policy shall be deposited in the Custodial
      Account, subject to withdrawal pursuant to Section 4.05.

     

    (c)           Purchaser,
      in its sole discretion, at any time, may (i) either obtain an additional PMI
      Policy on any Mortgage Loan which already has a PMI Policy in place, or (ii)
      obtain a PMI Policy for any Mortgage Loan which does not already have a PMI
      Policy in place.  In any event, the Company agrees to administer such
      PMI Policies in accordance with the Agreement or any Reconstitution
      Agreement.

     

    
      	
            	
              Section
                4.16

            	
              Title,
                Management and Disposition of REO
                Property.

            

    

     

    In
      the
      event that title to any Mortgaged Property is acquired in foreclosure or by
      deed
      in lieu of foreclosure, the deed or certificate of sale shall be taken in the
      name of the Purchaser, or in the event the Purchaser is not authorized or
      permitted to hold title to real property in the state where the REO Property
      is
      located, or would be adversely affected under the “doing business” or tax laws
      of such state by so holding title, the deed or certificate of sale shall be
      taken in the name of such Person or Persons as shall be consistent with an
      Opinion of Counsel obtained by the Company from any attorney duly licensed
      to
      practice law in the state where the REO Property is located. The Person or
      Persons holding such title other than the Purchaser shall acknowledge in writing
      that such title is being held as nominee for the Purchaser.

     

    The
      Company shall manage, conserve, protect and operate each REO Property for the
      Purchaser solely for the purpose of its prompt disposition and sale. The
      Company, either itself or through an agent selected by the Company, 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 Company 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 Company deems
      to
      be in the best interest of the Purchaser.

     

    The
      Company shall use its best efforts to dispose of the REO Property as soon as
      possible and shall sell such REO Property in any event within one year after
      title has been taken to such REO Property, unless (i) (A) a REMIC election
      has
      not been made with respect to the arrangement under which the Mortgage Loans
      and
      the REO Property are held, and (ii) the Company determines, and gives an
      appropriate notice to the Purchaser to such effect, that a longer period is
      necessary for the orderly liquidation of such REO Property. If a period longer
      than one year is permitted under the foregoing sentence and is necessary to
      sell
      any REO Property the Company shall report monthly to the Purchaser as to the
      progress being made in selling such REO Property.

     

    The
      Company shall also maintain on each REO Property fire and hazard insurance
      with
      extended coverage in amount which is at least equal to the maximum insurable
      value of the improvements which are a part of such property, liability insurance
      and, to the extent required and available under the Flood Disaster Protection
      Act of 1973, as amended, flood insurance in the amount required
      above.

     

    The
      disposition of REO Property shall be carried out by the Company at such price,
      and upon such terms and conditions, as the Company deems to be in the best
      interests of the Purchaser. The proceeds of sale of the REO Property shall
      be
      promptly deposited in the Custodial Account. As soon as practical thereafter
      the
      expenses of such sale shall be paid and the Company shall reimburse itself
      for
      any related unreimbursed Servicing Advances, unpaid Servicing Fees and
      unreimbursed advances made pursuant to Section 5.03, and on the Remittance
      Date
      immediately following the Principal Prepayment Period in which such sale
      proceeds are received the net cash proceeds of such sale remaining in the
      Custodial Account shall be distributed to the Purchaser.

     

    The
      Company shall withdraw the Custodial Account funds necessary for the proper
      operation, management and maintenance of the REO Property, including the cost
      of
      maintaining any hazard insurance pursuant to Section 4.10 and the fees of any
      managing agent of the Company, a Subservicer, or the Company itself. The REO
      management fee shall be an amount that is reasonable and customary in the area
      where the Mortgaged Property is located. The Company shall make monthly
      distributions on each Remittance Date to the Purchasers of the net cash flow
      from the REO Property (which shall equal the revenues from such REO Property
      net
      of the expenses described in this Section 4.16 and of any reserves reasonably
      required from time to time to be maintained to satisfy anticipated liabilities
      for such expenses).

     

    
      	
            	
              Section
                4.17

            	
              Real
                Estate Owned Reports.

            

    

     

    Together
      with the statement furnished pursuant to Section 5.02, the Company shall furnish
      to the Purchaser on or before the Remittance Date each month a statement with
      respect to any REO Property covering the operation of such REO Property for
      the
      previous month and the Company’s efforts in connection with the sale of such REO
      Property and any rental of such REO Property incidental to the sale thereof
      for
      the previous month. That statement shall be accompanied by such other
      information as the Purchaser shall reasonably request.

     

    
      	
            	
              Section
                4.18

            	
              Liquidation
                Reports.

            

    

     

    Upon
      the
      foreclosure sale of any Mortgaged Property or the acquisition thereof by the
      Purchaser pursuant to a deed in lieu of foreclosure, the Company shall submit
      to
      the Purchaser a liquidation report with respect to such Mortgaged
      Property.

     

    
      	
            	
              Section
                4.19

            	
              Reports
                of Foreclosures and Abandonments of Mortgaged
                Property.

            

    

     

    Following
      the foreclosure sale or abandonment of any Mortgaged Property, the Company
      shall
      report such foreclosure or abandonment as required pursuant to Section 6050J
      of
      the Code.

     

    
      	
            	
              Section
                4.20

            	
              Notification
                of Adjustments.

            

    

     

    With
      respect to each Mortgage Loan, the Company shall adjust the Mortgage Interest
      Rate on the related Interest Rate Adjustment Date and shall adjust the Monthly
      Payment on the related Payment Adjustment Date in compliance with the
      requirements of applicable law and the related Mortgage and Mortgage Note.
      If,
      pursuant to the terms of the Mortgage Note, another index is selected for
      determining the Mortgage Interest Rate, the same index will be used with respect
      to each Mortgage Note which requires a new index to be selected, provided that
      such selection does not conflict with the terms of the related Mortgage
      Note.  The Company 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 Interest Rate and the Monthly Payment
      adjustments.  The Company shall promptly upon written request thereof,
      deliver to the Purchaser 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 Company, or the Purchaser that the
      Company has failed to adjust a Mortgage Interest Rate or a Monthly Payment
      pursuant to the terms of the related Mortgage Note and Mortgage, the Company
      shall immediately deposit in the Custodial Account from its own funds the amount
      of any interest loss caused the Purchaser thereby.

     

    ARTICLE
      V

     

    PAYMENTS
      TO PURCHASER

     

    
      	
            	
              Section
                5.01

            	
              Remittances.

            

    

     

    On
      each
      Remittance Date the Company shall remit by wire transfer of immediately
      available funds to the Purchaser (a) all amounts deposited in the Custodial
      Account as of the close of business on the Determination Date (net of charges
      against or withdrawals from the Custodial Account pursuant to Section 4.05),
      plus (b) all amounts, if any, which the Company is obligated to distribute
      pursuant to Section 5.03, minus (c) any amounts attributable to Principal
      Prepayments received after the applicable Principal Prepayment Period which
      amounts shall be remitted on the following Remittance Date, together with any
      additional interest required to be deposited in the Custodial Account in
      connection with such Principal Prepayment in accordance with Section 4.04(viii),
      and minus (d) any amounts attributable to Monthly Payments collected but due
      on
      a Due Date or Dates subsequent to the first day of the month of the Remittance
      Date, which amounts shall be remitted on the Remittance Date next succeeding
      the
      Due Period for such amounts.

     

    With
      respect to any remittance received by the Purchaser after the second Business
      Day following the Business Day on which such payment was due, the Company shall
      pay to the Purchaser interest on any such late payment at an annual rate equal
      to the Prime Rate, adjusted as of the date of each change, plus three percentage
      points, but in no event greater than the maximum amount permitted by applicable
      law. Such interest shall be deposited in the Custodial Account by the Company
      on
      the date such late payment is made and shall cover the period commencing with
      the day following such second Business Day and ending with the Business Day
      on
      which such payment is made, both inclusive. Such interest shall be remitted
      along with the distribution payable on the next succeeding Remittance Date.
      The
      payment by the Company of any such interest shall not be deemed an extension
      of
      time for payment or a waiver of any Event of Default by the
      Company.

     

    
      	
            	
              Section
                5.02

            	
              Statements
                to Purchaser.

            

    

     

    Not
      later
      than the 10th
      day of each calendar month, the Company shall furnish to the Purchaser a Monthly
      Remittance Advice, with a trial balance report attached thereto, in the form
      of
Exhibit F annexed hereto electronic medium mutually acceptable to the
      parties as  to  the preceding calendar month and the Due
      Period in the month of remittance

     

    In
      addition, not more than 60 days after the end of each calendar year, the Company
      shall furnish to each Person who was a Purchaser at any time during such
      calendar year an annual statement in accordance with the requirements of
      applicable federal income tax law as to the aggregate of remittances for the
      applicable portion of such year.  Nothing in this Section 5.02 shall
      be deemed to require the Company to prepare any federal income tax return on
      Internal Revenue Service Form 1066, U.S. Real Estate Mortgage Investment Conduit
      Income Tax Return, including Schedule Q thereto, Quarterly Notice to Residual
      Interest Holders of REMIC Taxable Income or Net Loss Allocation, or any
      successor forms, to be filed on behalf of any REMIC under the REMIC
      Provisions.

     

    
      	
            	
              Section
                5.03

            	
              Monthly
                Advances by Company.

            

    

     

    On
      the
      Business Day immediately preceding each Remittance Date, either (a) the Company
      shall deposit in the Custodial Account from its own funds or (b) if funds are
      on
      deposit in the Custodial Account which are not required to be remitted on the
      related Remittance Date, the Company may make an appropriate entry in its
      records that such funds shall be applied toward the related Monthly Advance
      (provided, that any funds so applied shall be replaced by the Company no later
      than the Business Day immediately preceding the next Remittance Date), in each
      case, in an aggregate amount equal to all Monthly Payments (with interest
      adjusted to the Mortgage Loan Remittance Rate) which were due on the Mortgage
      Loans during the applicable Due Period and which were delinquent at the close
      of
      business on the immediately preceding Determination Date or which were deferred
      pursuant to Section 4.01. The Company’s obligation to make such Monthly Advances
      as to any Mortgage Loan will continue through the last Monthly Payment due
      prior
      to the payment in full of the Mortgage Loan, or through the last Remittance
      Date
      prior to the Remittance Date for the distribution of all Liquidation Proceeds
      and other payments or recoveries (including Insurance Proceeds and Condemnation
      Proceeds) with respect to the Mortgage Loan.

     

     In
      no event shall the Company be obligated to make an advance under this section
      5.03 if at the time of such advance it deems such advance to be
      non-recoverable.  The Company shall promptly deliver an officer’s
      certificate to the Purchaser upon determining that any advance is
      non-recoverable.  In the event that upon liquidation of the Mortgage
      Loan, the Liquidation Proceeds are insufficient to reimburse the Company for
      any
      Monthly Advances, the Company shall notify the related Purchaser of such
      shortfall by registered mail with sufficient supporting documentation and shall
      have the right to deduct such shortfall from the next remittance to be paid
      to
      the related Purchaser.

     

    ARTICLE
      VI

     

    GENERAL
      SERVICING PROCEDURES

     

    
      	
            	
              Section
                6.01

            	
              Transfers
                of Mortgaged Property.

            

    

     

    The
      Company shall use its best efforts to enforce any “due-on-sale” provision
      contained in any Mortgage or Mortgage Note and to deny assumption by the person
      to whom the Mortgaged Property has been or is about to be sold whether by
      absolute conveyance or by contract of sale, and whether or not the Mortgagor
      remains liable on the Mortgage and the Mortgage Note. When the Mortgaged
      Property has been conveyed by the Mortgagor, the Company shall, to the extent
      it
      has knowledge of such conveyance, exercise its rights to accelerate the maturity
      of such Mortgage Loan under the “due-on-sale” clause applicable thereto,
      provided, however, that the Company shall not exercise such rights if prohibited
      by law from doing so or if the exercise of such rights would impair or threaten
      to impair any recovery under the related PMI or LPMI Policy, if
      any.

     

    If
      the
      Company reasonably believes it is unable under applicable law to enforce such
      “due-on-sale” clause, the Company shall enter into (i) an assumption and
      modification agreement with the person to whom such property has been conveyed,
      pursuant to which such person becomes liable under the Mortgage Note and the
      original Mortgagor remains liable thereon or (ii) in the event the Company
      is
      unable under applicable law to require that the original Mortgagor remain liable
      under the Mortgage Note and the Company has the prior consent of the primary
      mortgage guaranty insurer, a substitution of liability agreement with the
      purchaser of the Mortgaged Property pursuant to which the original Mortgagor
      is
      released from liability and the purchaser of the Mortgaged Property is
      substituted as Mortgagor and becomes liable under the Mortgage Note. If an
      assumption fee is collected by the Company for entering into an assumption
      agreement, a portion of such fee, up to an amount equal to one percent (1.0%)
      of
      the outstanding principal balance of the related Mortgage Loan, will be retained
      by the Company as additional servicing compensation, and any portion thereof
      in
      excess one percent (1.0%) shall be deposited in the Custodial Account for the
      benefit of the Purchaser. In connection with any such assumption or substitution
      of liability, neither the Mortgage Interest Rate borne by the related Mortgage
      Note, the term of the Mortgage Loan, the Index, the Lifetime Mortgage Interest
      Rate Cap, the Initial Rate Cap or the Gross Margin of any Mortgage Loan, nor
      the
      outstanding principal amount of the Mortgage Loan shall be changed.

     

    To
      the
      extent that any Mortgage Loan is assumable, the Company shall inquire diligently
      into the creditworthiness of the proposed transferee, and shall use the
      underwriting criteria for approving the credit of the proposed transferee which
      are used by Fannie Mae with respect to underwriting mortgage loans of the same
      type as the Mortgage Loans. If the credit of the proposed transferee does not
      meet such underwriting criteria, the Company diligently shall, to the extent
      permitted by the Mortgage or the Mortgage Note and by applicable law, accelerate
      the maturity of the Mortgage Loan.

     

    
      	
            	
              Section
                6.02

            	
              Satisfaction
                of Mortgages and Release of Mortgage
                Files.

            

    

     

    Upon
      the
      payment in full of any Mortgage Loan, or the receipt by the Company of a
      notification that payment in full will be escrowed in a manner customary for
      such purposes, the Company shall notify the Purchaser in the Monthly Remittance
      Advice as provided in Section 5.02, and may request the release of any Mortgage
      Loan Documents.  In connection with any such prepayment in full, the
      Company shall comply with all applicable laws regarding satisfaction, release
      or
      reconveyance with respect to the Mortgage.

     

    If
      the
      Company satisfies or releases a Mortgage without first having obtained payment
      in full of the indebtedness secured by the Mortgage or should the Company
      otherwise prejudice any rights the Purchaser may have under the mortgage
      instruments, upon written demand of the Purchaser, the Company shall repurchase
      the related Mortgage Loan at the Repurchase Price by deposit thereof in the
      Custodial Account within 2 Business Days of receipt of such demand by the
      Purchaser. The Company shall maintain the Fidelity Bond and Errors and Omissions
      Insurance Policy as provided for in Section 4.12 insuring the Company against
      any loss it may sustain with respect to any Mortgage Loan not satisfied in
      accordance with the procedures set forth herein.

     

    
      	
            	
              Section
                6.03

            	
              Servicing
                Compensation.

            

    

     

    As
      compensation for its services hereunder, the Company shall be entitled to
      withdraw from the Custodial Account or to retain from interest payments on
      the
      Mortgage Loans the amount of its Servicing Fee. The Servicing Fee shall be
      payable monthly and shall be computed on the basis of the same unpaid principal
      balance and for the period respecting which any related interest payment on
      a
      Mortgage Loan is computed. The Servicing Fee shall be payable only at the time
      of and with respect to those Mortgage Loans for which payment is in fact made
      of
      the entire amount of the Monthly Payment. The obligation of the Purchaser to
      pay
      the Servicing Fee is limited to, and payable solely from, the interest portion
      of such Monthly Payments collected by the Company.

     

    Additional
      servicing compensation in the form of assumption fees, to the extent provided
      in
      Section 6.01, and late payment charges and Prepayment Penalties, shall be
      retained by the Company to the extent not required to be deposited in the
      Custodial Account. The Company shall be required to pay all expenses incurred
      by
      it in connection with its servicing activities hereunder and shall not be
      entitled to reimbursement thereof except as specifically provided for
      herein.  Notwithstanding anything in this Agreement to the contrary,
      in the event of a Principal Prepayment in full, the Company shall not waive,
      and
      shall not permit the waiver of, any Prepayment Penalty or portion thereof
      required by the terms of the related Mortgage Note unless (i) the Company
      determines that such waiver would maximize recovery of Liquidations Proceeds
      for
      such Mortgage Loan, taking into account the value of such Prepayment Penalty,
      or
      (ii) (A) the enforeceability therefore is limited (1) by bankruptcy, insolvency,
      moratorium, receivership, or other similar law relating to creditors’ rights
      generally or (2) due to acceleration in connection with a foreclosure or other
      involuntary payment or (B) the enforceability is otherwise limited or prohibited
      by applicable law.

     

    
      	
            	
              Section
                6.04

            	
              Annual
                Statement as to Compliance.

            

    

     

    The
      Company shall deliver to the Purchaser, on or before May 31 each year beginning
      May 31, 2003, an Officer’s Certificate, stating that (i) a review of the
      activities of the Company during the preceding calendar year and of performance
      under this Agreement has been made under such officer’s supervision, and (ii)
      the Company has complied fully with the provisions of Article II and Article
      IV,
      and (iii) to the best of such officer’s knowledge, based on such review, the
      Company has fulfilled all its obligations under this Agreement throughout such
      year, or, if there has been a default in the fulfillment of any such obligation,
      specifying each such default known to such officer and the nature and status
      thereof and the action being taken by the Company to cure such
      default.

     

    
      	
            	
              Section
                6.05

            	
              Annual
                Independent Public Accountants’ Servicing
                Report.

            

    

     

    On
      or
      before May 31st of each year beginning May 31, 2003, the Company, at its
      expense, shall cause a firm of independent public accountants which is a member
      of the American Institute of Certified Public Accountants to furnish a statement
      to each Purchaser to the effect that such firm has examined certain documents
      and records relating to the servicing of the Mortgage Loans and this Agreement
      and that such firm is of the opinion that the provisions of Article II and
      Article IV have been complied with, and that, on the basis of such examination
      conducted substantially in compliance with the Single Attestation Program for
      Mortgage Bankers, nothing has come to their attention which would indicate
      that
      such servicing has not been conducted in compliance therewith, except for (i)
      such exceptions as such firm shall believe to be immaterial, and (ii) such
      other
      exceptions as shall be set forth in such statement.

     

    
      	
            	
              Section
                6.06

            	
              Right
                to Examine Company Records.

            

    

     

    The
      Purchaser shall have the right to examine and audit any and all of the books,
      records, or other information of the Company, whether held by the Company or
      by
      another on its behalf, with respect to or concerning this Agreement or the
      Mortgage Loans, during business hours or at such other times as may be
      reasonable under applicable circumstances, upon reasonable advance
      notice.

     

    ARTICLE
      VII

     

    AGENCY
      TRANSFER; PASS-THROUGH TRANSFER

     

    
      	
            	
              Section
                7.01

            	
              Removal
                of Mortgage Loans from Inclusion Under this Agreement Upon an Agency
                Transfer, or a Pass-Through Transfer on One or More Reconstitution
                Dates.

            

    

     

    The
      Purchaser and the Company agree that with respect to any Pass-Through Transfer,
      Whole Loan Transfer or Agency Transfers, as applicable, the Company shall
      cooperate with the Purchaser in effecting such transfers and shall negotiate
      in
      good faith and execute any Reconstitution Agreement required to effectuate
      the
      foregoing; provided that, such Reconstitution Agreement shall not materially
      increase the Company’s obligations or liabilities hereunder, nor diminish any of
      the Company’s rights, and provide to any master servicer or the trustee, as
      applicable, and/or the Purchaser any and all publicly available information
      and
      appropriate verification of information which may be reasonably available to
      the
      Company, whether through letters of its auditors and counsel or otherwise,
      as
      the Purchaser, trustee or a master servicer shall reasonable request as to
      the
      related Mortgage Loans.  Purchaser shall reimburse Company for any and
      all costs or expenses incurred by Company (i) in obtaining “accountant comfort
      letters” with respect to information supplied in response to Purchaser requests,
      (ii) in connection with any due diligence performed in connection with a
      Pass-Through or Whole Loan Transfer or (iii) making the Mortgage Loan Documents
      or Servicing Files available to parties participating in a Pass-Through or
      Whole
      Loan Transfer, including without limitation, shipping costs.  Such
      information may be included in any disclosure document prepared in connection
      with the Pass-Through Transfer, Whole Loan Transfer or Agency Transfer, as
      applicable; provided, however, that Company shall indemnify the Purchaser
      against any liability arising from any material omissions or misstatements
      in
      any information supplied by the Company and included in a disclosure document;
      and provided, further, that the Purchaser shall indemnify the Company against
      any liability arising from any information included in a disclosure document
      that was not supplied by the Company.  The Company shall execute any
      Reconstitution Agreements required within a reasonable period of time after
      receipt of such agreements which time shall be sufficient for the Company and
      the Company’s counsel to review such agreements.  Company shall use
      its Best Efforts to complete such review within ten (10) Business Days after
      mutual agreement as to the terms thereof, but such time shall not exceed fifteen
      (15) Business Days after mutual agreement as to the terms thereof.

     

    The
      Company shall not be required to restate any representations and warranties
      as
      of the date of any Pass-Through Transfer, Whole Loan Transfer or Agency
      Transfers other than the representations and warranties set forth in Section
      3.01 (provided, that the Company shall not be required to restate the
      representation and warranty set forth in Section 3.01(j)).

     

    In
      the
      event of any Agency Transfer, Pass-Through or Whole Loan Transfer, the Company
      shall have no obligation to pay any custodial fees charged by the
      Agency.

     

    
      	
            	
              Section
                7.02

            	
              Purchaser’s
                Repurchase and Indemnification
                Obligations.

            

    

     

    Upon
      receipt by the Company of notice from Fannie Mae, Freddie Mac or the trustee
      of
      a breach of any Purchaser representation or warranty contained in any
      Reconstitution Agreement or a request by Fannie Mae, Freddie Mac or the trustee,
      as the case may be, for the repurchase of any Mortgage Loan transferred to
      Fannie Mae or Freddie Mac pursuant to an Agency Transfer or to a trustee
      pursuant to a Pass-Through Transfer, the Company shall promptly notify the
      Purchaser of same and shall, at the direction of the Purchaser, use its best
      efforts to cure and correct any such breach and to satisfy the requests or
      concerns of Fannie Mae, Freddie Mac, or the trustee related to such deficiencies
      of the related Mortgage Loans transferred to Fannie Mae, Freddie Mac, or the
      trustee.

     

    The
      Purchaser shall repurchase from the Company any Mortgage Loan transferred to
      Fannie Mae or Freddie Mac pursuant to an Agency Transfer or to a trustee
      pursuant to a Pass-Through Transfer with respect to which the Company has been
      required by Fannie Mae, Freddie Mac, or the trustee to repurchase due to a
      breach of a representation or warranty made by the Purchaser with respect to
      the
      Mortgage Loans, or the servicing thereof prior to the transfer date to Fannie
      Mae, Freddie Mac, or the trustee in any Reconstitution Agreement and not due
      to
      a breach of the Company’s representations or obligations thereunder or pursuant
      to this Agreement. The repurchase price to be paid by the Purchaser to the
      Company shall equal that repurchase price paid by the Company to Fannie Mae,
      Freddie Mac, or the third party purchaser plus all reasonable costs and expenses
      borne by the Company in connection with the cure of said breach of a
      representation or warranty made by the Purchaser and in connection with the
      repurchase of such Mortgage Loan from Fannie Mae, Freddie Mac, or the trustee,
      including, but not limited to, reasonable and necessary attorneys’
fees.

     

    At
      the
      time of repurchase, the Custodian and the Company shall arrange for the
      reassignment of the repurchased Mortgage Loan to the Purchaser according to
      the
      Purchaser’s instructions and the delivery to the Custodian of any documents held
      by Fannie Mae, Freddie Mac, or the trustee with respect to the repurchased
      Mortgage Loan pursuant to the related Reconstitution Agreement. In the event
      of
      a repurchase, the Company shall, simultaneously with such reassignment, give
      written notice to the Purchaser that such repurchase has taken place, and amend
      the related Mortgage Loan Schedule to reflect the addition of the repurchased
      Mortgage Loan to this Agreement. In connection with any such addition, the
      Company and the Purchaser shall be deemed to have made as to such repurchased
      Mortgage Loan the representations and warranties set forth in this
      Agreement.

     

    ARTICLE
      VIII

     

    COMPANY
      TO COOPERATE

     

    
      	
            	
              Section
                8.01

            	
              Provision
                of Information.

            

    

     

    During
      the term of this Agreement and provided such request will cause the Company
      to
      violate any applicable law or statute, the Company shall furnish to the
      Purchaser such periodic, special, or other reports or information and copies
      or
      originals of any documents contained in the Servicing File for each Mortgage
      Loan, whether or not provided for herein, as shall be necessary, reasonable,
      or
      appropriate with respect to the Purchaser, any regulatory requirement pertaining
      to the Purchaser or the purposes of this Agreement. All such reports, documents
      or information shall be provided by and in accordance with all reasonable
      instructions and directions which the Purchaser may give.  Purchaser
      shall pay any costs related to any special reports.

     

    The
      Company shall execute and deliver all such instruments and take all such action
      as the Purchaser may reasonably request from time to time, in order to
      effectuate the purposes and to carry out the terms of this
      Agreement.

     

    
      	
            	
              Section
                8.02

            	
              Financial
                Statements; Servicing Facility.

            

    

     

    In
      connection with marketing the Mortgage Loans, the Purchaser may make available
      to a prospective Purchaser a Consolidated Statement of Operations of the Company
      for the most recently completed five fiscal years for which such a statement
      is
      available, as well as a Consolidated Statement of Condition at the end of the
      last two fiscal years covered by such Consolidated Statement of Operations.
      The
      Company also shall make available any comparable interim statements to the
      extent any such statements have been prepared by or on behalf of the Company
      (and are available upon request to members or stockholders of the Company or
      to
      the public at large). If it has not already done so, the Company shall furnish
      promptly to the Purchaser copies of the statement specified
      above.  Unless requested the Purchaser, the Company shall not be
      required to deliver any documents which are publicly available on
      EDGAR.

     

    The
      Company also shall make available to Purchaser or prospective Purchaser a
      knowledgeable financial or accounting officer for the purpose of answering
      questions respecting recent developments affecting the Company or the financial
      statements of the Company, and to permit any prospective Purchaser to inspect
      the Company’s servicing facilities or those of any Subservicer for the purpose
      of satisfying such prospective Purchaser that the Company and any Subservicer
      have the ability to service the Mortgage Loans as provided in this
      Agreement.

     

    ARTICLE
      IX

     

    THE
      COMPANY

     

    
      	
            	
              Section
                9.01

            	
              Indemnification;
                Third Party Claims.

            

    

     

    The
      Company shall indemnify the Purchaser and hold it harmless against any and
      all
      claims, losses, damages, penalties, fines, and forfeitures, including, but
      not
      limited to reasonable and necessary legal fees and related costs, judgments,
      and
      any other costs, fees and expenses that the Purchaser may sustain in any way
      related to the failure of the Company to (a) perform its duties and service
      the
      Mortgage Loans in strict compliance with the terms of this Agreement or any
      Reconstitution Agreement entered into pursuant to Section 7.01, and/or (b)
      comply with applicable law. The Company immediately shall notify the Purchaser
      if a claim is made by a third party with respect to this Agreement or any
      Reconstitution Agreement or the Mortgage Loans, shall promptly notify Fannie
      Mae, Freddie Mac, or the trustee with respect to any claim made by a third
      party
      with respect to any Reconstitution Agreement, assume (with the prior written
      consent of the Purchaser) 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 in the amount of $5,000 or less, which may be
      entered against it or the Purchaser in respect of such claim. The Company shall
      follow any written instructions received from the Purchaser in connection with
      such claim. The Purchaser promptly shall reimburse the Company for all amounts
      advanced by it pursuant to the preceding sentence except when the claim is
      in
      any way related to the Company’s indemnification pursuant to Section 3.03, or
      the failure of the Company to (a) service and administer the Mortgage Loans
      in
      strict compliance with the terms of this Agreement or any Reconstitution
      Agreement, and/or (b) comply with applicable law.

     

    
      	
            	
              Section
                9.02

            	
              Merger
                or Consolidation of the
                Company.

            

    

     

    The
      Company shall keep in full effect its existence, rights and franchises as a
      corporation, and shall 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 duties under this
      Agreement.

     

    Any
      person into which the Company may be merged or consolidated, or any corporation
      resulting from any merger, conversion or consolidation to which the Company
      shall be a party, or any Person succeeding to the business of the Company,
      shall
      be the successor of the Company 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 shall be an institution (i) having a net worth of not less
      than
      $25,000,000, (ii) whose deposits are insured by the FDIC through the BIF or
      the
      SAIF, and (iii) which is a Fannie Mae-approved company in good
      standing.

     

    
      	
            	
              Section
                9.03

            	
              Limitation
                on Liability of Company and
                Others.

            

    

     

    Neither
      the Company nor any of the directors, officers, employees or agents of the
      Company shall be under any liability to the Purchaser 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 Company or any such person against any Breach of
      warranties or representations made herein, or failure to perform its obligations
      in strict compliance with any standard of care set forth in this Agreement,
      or
      any liability which would otherwise be imposed by reason of any breach of the
      terms and conditions of this Agreement. The Company and any director, officer,
      employee or agent of the Company 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 Company shall not be under any obligation to
      appear in, prosecute or defend any legal action which is not incidental to
      its
      duties to service the Mortgage Loans in accordance with this Agreement and
      which
      in its opinion may involve it in any expense or liability, provided, however,
      that the Company may, with the consent of the Purchaser, undertake any such
      action which it may deem necessary or desirable in respect to this Agreement
      and
      the rights and duties of the parties hereto. In such event, the Company shall
      be
      entitled to reimbursement from the Purchaser of the reasonable legal expenses
      and costs of such action.

     

    
      	
            	
              Section
                9.04

            	
              Limitation
                on Resignation and Assignment by
                Company.

            

    

     

    The
      Purchaser has entered into this Agreement with the Company and subsequent
      Purchasers will purchase the Mortgage Loans in reliance upon the independent
      status of the Company, and the representations as to the adequacy of its
      servicing facilities, plant, personnel, records and procedures, its integrity,
      reputation and financial standing, and the continuance thereof. Therefore,
      the
      Company shall neither assign this Agreement or the servicing hereunder or
      delegate its rights or duties hereunder or any portion hereof (to other than
      a
      Subservicer) or sell or otherwise dispose of all or substantially all of its
      property or assets without the prior written consent of the Purchaser, which
      consent shall be granted or withheld in the sole discretion of the Purchaser;
      provided, however, that the Company may assign its right and obligations
      hereunder to any entity that is directly or indirectly owned or controlled
      by
      the Company and the Company guarantees the performance by such entity of all
      obligations hereunder.

     

    The
      Company shall not resign from the obligations and duties hereby imposed on
      it
      except by mutual consent of the Company and the Purchaser or upon the
      determination that its duties hereunder are no longer permissible under
      applicable law and such incapacity cannot be cured by the Company. Any such
      determination permitting the resignation of the Company shall be evidenced
      by an
      Opinion of Counsel to such effect delivered to the Purchaser which Opinion
      of
      Counsel shall be in form and substance acceptable to the Purchaser. No such
      resignation shall become effective until a successor shall have assumed the
      Company’s responsibilities and obligations hereunder in the manner provided in
      Section 12.01.

     

    Without
      in any way limiting the generality of this Section 9.04, in the event that
      the
      Company either shall assign this Agreement or the servicing responsibilities
      hereunder or delegate its duties hereunder or any portion thereof (to other
      than
      a Subservicer) or sell or otherwise dispose of all or substantially all of
      its
      property or assets, without the prior written consent of the Purchaser, then
      the
      Purchaser shall have the right to terminate this Agreement upon notice given
      as
      set forth in Section 10.01, without any payment of any penalty or damages and
      without any liability whatsoever to the Company or any third party.

     

    ARTICLE
      X

     

    DEFAULT

     

    
      	
            	
              Section
                10.01

            	
              Events
                of Default.

            

    

     

    Each
      of
      the following shall constitute an Event of Default on the part of the
      Company:

     

    (i)  any
      failure by the Company to remit to the Purchaser any payment required to be
      made
      under the terms of this Agreement which continues unremedied for a period of
      three days after the date upon which written notice of such failure, requiring
      the same to be remedied, shall have been given to the Company by the Purchaser;
      or

     

    (ii)  failure
      by the Company duly to observe or perform in any material respect any other
      of
      the covenants or agreements on the part of the Company set forth in this
      Agreement which continues unremedied for a period of 30 days after the date
      on
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Company by the Purchaser; or

     

    (iii)  failure
      by the Company to maintain its license to do business in any jurisdiction where
      the Mortgage Property is located if such license is necessary for the Company
      to
      legally service the related Mortgage Loan; or

     

    (iv)  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,
      readjustment of debt, including bankruptcy, marshaling of assets and liabilities
      or similar proceedings, or for the winding-up or liquidation of its affairs,
      shall have been entered against the Company and such decree or order shall
      have
      remained in force undischarged or unstayed for a period of 60 days;
      or

     

    (v)  the
      Company shall consent to the appointment of a conservator or receiver or
      liquidator in any insolvency, readjustment of debt, marshaling of assets and
      liabilities or similar proceedings of or relating to the Company or of or
      relating to all or substantially all of its property; or

     

    (vi)  the
      Company shall admit in writing its inability to pay its debts generally as
      they
      become due, file a petition to take advantage of any applicable insolvency,
      bankruptcy or reorganization statute, make an assignment for the benefit of
      its
      creditors, voluntarily suspend payment of its obligations or cease its normal
      business operations for three Business Days; or

     

    (vii)  the
      Company ceases to meet the qualifications of a Fannie Mae lender or servicer;
      or

     

    (viii)  the
      Company fails to maintain a minimum net worth of $25,000,000; or

     

    (ix)  the
      Company attempts to assign its right to servicing compensation hereunder or
      the
      Company attempts, without the consent of the Purchaser, to sell or otherwise
      dispose of all or substantially all of its property or assets or to assign
      this
      Agreement or the servicing responsibilities hereunder or to delegate its duties
      hereunder or any portion thereof (to other than a Subservicer) in violation
      of
      Section 9.04.

     

    In
      each
      and every such case, so long as an Event of Default shall not have been
      remedied, in addition to whatsoever rights the Purchaser may have at law or
      equity to damages, including injunctive relief and specific performance, the
      Purchaser, by notice in writing to the Company, may terminate all the rights
      and
      obligations of the Company under this Agreement and in and to the Mortgage
      Loans
      and the proceeds thereof.

     

    Upon
      receipt by the Company of such written notice, all authority and power of the
      Company under this Agreement, whether with respect to the Mortgage Loans or
      otherwise, shall pass to and be vested in the successor appointed pursuant
      to
      Section 12.01. Upon written request from any Purchaser, the Company shall
      prepare, execute and deliver to the successor entity designated by the Purchaser
      any and all documents and other instruments, place in such successor’s
      possession all Mortgage Files, and do or cause to be done all other acts or
      things necessary or appropriate to effect the purposes of such notice of
      termination, including but not limited to the transfer and endorsement or
      assignment of the Mortgage Loans and related documents, at the Company’s sole
      expense. The Company shall cooperate with the Purchaser and such successor
      in
      effecting the termination of the Company’s responsibilities and rights
      hereunder, including without limitation, the transfer to such successor for
      administration by it of all cash amounts which shall at the time be credited
      by
      the Company to the Custodial Account or Escrow Account or thereafter received
      with respect to the Mortgage Loans.

     

    
      	
            	
              Section
                10.02

            	
              Waiver
                of Defaults.

            

    

     

    By
      a
      written notice, the Purchaser may waive any default by the Company 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 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.

     

    ARTICLE
      XI

     

    TERMINATION

     

    
      	
            	
              Section
                11.01

            	
              Termination.

            

    

    

     

    This
      Agreement shall terminate upon either: (i) the later of the final payment or
      other liquidation (or any advance with respect thereto) of the last Mortgage
      Loan or the disposition of any REO Property with respect to the last Mortgage
      Loan and the remittance of all funds due hereunder; or (ii) mutual consent
      of
      the Company and the Purchaser in writing.

     

    
      	
            	
              Section
                11.02

            	
              Termination
                Without Cause.

            

    

     

    The
      Purchaser may terminate, at its sole option, any rights the Company may have
      hereunder, without cause, as provided in this Section 11.02. Any such notice
      of
      termination shall be in writing and delivered to the Company by registered
      mail
      as provided in Section 12.05.

     

    In
      the
      event the Purchaser terminates the Company without cause with respect to some
      or
      all of the Mortgage Loans, the Purchaser shall be required to pay to the Company
      a Termination Fee in an amount equal to 2.0% of the outstanding principal
      balance of the terminated Mortgage Loans as of the date of such
      termination.

     

    ARTICLE
      XII

     

    MISCELLANEOUS
      PROVISIONS

     

    
      	
            	
              Section
                12.01

            	
              Successor
                to Company.

            

    

     

    Prior
      to
      termination of the Company’s responsibilities and duties under this Agreement
      pursuant to Sections 9.04, 10.01, 11.01 (ii) or pursuant to Section 11.02 after
      the 90 day period has expired, the Purchaser shall, (i) succeed to and assume
      all of the Company’s responsibilities, rights, duties and obligations under this
      Agreement, or (ii) appoint a successor having the characteristics set forth
      in
      clauses (i) through (iii) of Section 9.02 and which shall succeed to all rights
      and assume all of the responsibilities, duties and liabilities of the Company
      under this Agreement prior to the termination of Company’s responsibilities,
      duties and liabilities under this Agreement. In connection with such appointment
      and assumption, the Purchaser may make such arrangements for the compensation
      of
      such successor out of payments on Mortgage Loans as it and such successor shall
      agree. In the event that the Company’s duties, responsibilities and liabilities
      under this Agreement should be terminated pursuant to the aforementioned
      sections, the Company shall discharge such duties and responsibilities during
      the period from the date it acquires knowledge of such termination until the
      effective date thereof 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 or financial condition
      of
      its successor. The resignation or removal of the Company pursuant to the
      aforementioned sections shall not become effective until a successor shall
      be
      appointed pursuant to this Section 12.01 and shall in no event relieve the
      Company of the representations and warranties made pursuant to Sections 3.01
      and
      3.02 and the remedies available to the Purchaser under Sections 3.03, 3.04,
      3.05
      and 3.07, it being understood and agreed that the provisions of such Sections
      3.01, 3.02, 3.03, 3.04, 3.05 and 3.07 shall be applicable to the Company
      notwithstanding any such sale, assignment, resignation or termination of the
      Company, or the termination of this Agreement.

     

    Any
      successor appointed as provided herein shall execute, acknowledge and deliver
      to
      the Company and to the Purchaser an instrument accepting such appointment,
      wherein the successor shall make the representations and warranties set forth
      in
      Section 3.01, except for subsections (f), (h), (i) and (k) thereof, whereupon
      such successor shall become fully vested with all the rights, powers, duties,
      responsibilities, obligations and liabilities of the Company, with like effect
      as if originally named as a party to this Agreement. Any termination or
      resignation of the Company or termination of this Agreement pursuant to Section
      9.04, 10.01, 11.01 or 11.02 shall not affect any claims that any Purchaser
      may
      have against the Company arising out of the Company’s actions or failure to act
      prior to any such termination or resignation.

     

    The
      Company shall deliver promptly to the successor servicer the Funds in the
      Custodial Account and Escrow Account and all Mortgage Files and related
      documents and statements held by it hereunder and the Company shall account
      for
      all funds and shall execute and deliver such instruments and do such other
      things as may reasonably be required to more fully and definitively vest in
      the
      successor all such rights, powers, duties, responsibilities, obligations and
      liabilities of the Company.

     

    Upon
      a
      successor’s acceptance of appointment as such, the Company shall notify by mail
      the Purchaser of such appointment in accordance with the procedures set forth
      in
      Section 12.05.

     

    
      	
            	
              Section
                12.02

            	
              Amendment.

            

    

     

    This
      Agreement may be amended from time to time by the Company and the Purchaser
      by
      written agreement signed by the Company and the Purchaser.

     

    
      	
            	
              Section
                12.03

            	
              Governing
                Law.

            

    

     

    This
      Agreement shall be construed in accordance with the laws of the State of New
      York and the obligations, rights and remedies of the parties hereunder shall
      be
      determined in accordance with such laws.

     

    
      	
            	
              Section
                12.04

            	
              Duration
                of Agreement.

            

    

     

    This
      Agreement shall continue in existence and effect until terminated as herein
      provided. This Agreement shall continue notwithstanding transfers of the
      Mortgage Loans by the Purchaser.

     

    
      	
            	
              Section
                12.05

            	
              Notices.

            

    

     

    All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given if personally delivered at or mailed by
      registered mail, postage prepaid, addressed as follows:

     

    (i)  if
      to the
      Company:

     

    Countrywide
      Home Loans, Inc.,

    4500
      Park
      Grenada

    Calabasas,
      CA 91302

    Attention:
      David Spector

     

    or
      such
      other address as may hereafter be furnished to the Purchaser in writing by
      the
      Company;

     

    (ii)  if
      to
      Purchaser:

     

    EMC
      Mortgage Corporation

    Mac
      Arthur Ridge II

    909
      Hidden Ridge Drive, Suite
      200

    Irving,
      Texas 75014-1358

    Attention:  Ralene
      Ruyle

     

    
      	
            	
              Section
                12.06

            	
              Severability
                of Provisions.

            

    

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be held invalid for any reason whatsoever, 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.

     

    
      	
            	
              Section
                12.07

            	
              Relationship
                of Parties.

            

    

     

    Nothing
      herein contained shall be deemed or construed to create a partnership or joint
      venture between the parties hereto and the services of the Company shall be
      rendered as an independent contractor and not as agent for the
      Purchaser.

     

    
      	
            	
              Section
                12.08

            	
              Execution;
                Successors and Assigns.

            

    

     

    This
      Agreement may be executed in one or more counterparts and by the different
      parties hereto on separate counterparts, each of which, when so executed, shall
      be deemed to be an original; such counterparts, together, shall constitute
      one
      and the same agreement. Subject to Section 8.04, this Agreement shall inure
      to
      the benefit of and be binding upon the Company and the Purchaser and their
      respective successors and assigns.

     

    
      	
            	
              Section
                12.09

            	
              Recordation
                of Assignments of Mortgage.

            

    

     

    To
      the
      extent permitted by applicable law, each of the Assignments of Mortgage 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 at the
      Company’s expense in the event recordation is either necessary under applicable
      law or requested by the Purchaser at its sole option accordance with Section
      14
      of the Purchase Agreement.

     

    
      	
            	
              Section
                12.10

            	
              Assignment
                by Purchaser.

            

    

     

    The
      Purchaser shall have the right, without the consent of the Company but subject
      to the limit set forth in Section 2.02 hereof, to assign, in whole or in part,
      its interest under this Agreement with respect to some or all of the Mortgage
      Loans, and designate any person to exercise any rights of the Purchaser
      hereunder, by executing an Assignment and Assumption Agreement substantially
      in
      the form of Exhibit G hereto. Upon such assignment of rights and
      assumption of obligations, the assignee or designee shall accede to the rights
      and obligations hereunder of the Purchaser with respect to such Mortgage Loans
      and the Purchaser as assignor shall be released from all obligations hereunder
      with respect to such Mortgage Loans from and after the date of such assignment
      and assumption. All references to the Purchaser in this Agreement shall be
      deemed to include its assignee or designee.

     

    
      	
            	
              Section
                12.11

            	
              No
                Personal Solicitation.

            

    

    

    From
      and
      after the related Closing Date, the Company hereby agrees that it will not
      take
      any action or permit or cause any action to be taken by any of its agents or
      affiliates, or by any independent contractors or independent mortgage brokerage
      companies on the Company’s behalf, to personally, by telephone or mail, solicit
      the Mortgagor under any Mortgage Loan for the purpose of refinancing such
      Mortgage Loan; provided, that the Company may solicit any Mortgagor for whom
      the
      Company has received a request for verification of mortgage, a request for
      demand for payoff, a mortgagor initiated written or verbal communication
      indicating a desire to prepay the related Mortgage Loan, or the mortgagor
      initiates a title search, provided further, it is understood and agreed that
      promotions undertaken by the Company or any of its affiliates which (i) concern
      optional insurance products or other additional projects, (ii) are directed
      to
      the general public at large, including, without limitation, mass mailings based
      on commercially acquired mailing lists, newspaper, radio and television
      advertisements, (iii) are directed to mortgagors who have a specific type of
      mortgage (i.e., balloon Mortgage Loans, LIBOR Mortgage Loans, etc.) or (iv)
      directed to those mortgagors whose mortgages fall within specific interest
      rate
      ranges shall not constitute solicitation under this Section 12.11 nor is the
      Company prohibited from responding to unsolicited requests or inquiries made
      by
      a Mortgagor or an agent of a Mortgagor.  Notwithstanding the
      foregoing, the following solicitations, if undertaken by the Company or any
      affiliate of the Company, shall not be prohibited under this Section 12.11:
      (i)
      solicitations that are directed to the general public at large, including,
      without limitation, mass mailings based on commercially acquired mailing lists
      and newspaper, radio, television and other mass media advertisements; (ii)
      borrower messages included on, and statement inserts provided with, the monthly
      statements sent to Mortgagors; provided, however, that similar messages and
      inserts are sent to the borrowers of other mortgage loans serviced by the
      Company.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company and the Purchaser have caused their names
      to be signed hereto by their respective officers thereunto duly authorized
      as of
      the day and year first above written.

     

     

    
      	 	
              EMC MORTGAGE
                CORPORATION

               

            	 
	 	 	 	 
	
               

            	
              By:
                

            	 	 
	 	
               

              Name:

            	
               

              Ralene
                Ruyle

               

            	 
	 	Title:	President	 
	 	 	 	 

    

     

     

    
      
        	 	
                
                  COUNTRYWIDE
                    HOME LOANS, INC.

                

              	 
	 	 	 	 
	
                 

              	
                By:
                  

              	 	 
	 	
                 

                Name:

              	
                 

                 

              	 
	 	
                 

                Title:

              	 	 
	 	 	 	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      	STATE
              OF NEW YORK 	)	 
	 	)	ss.:
	COUNTY
              OF __________	)	 

    

     

    On
      the __
      day of ________, 200_ before me, a Notary Public in and for said State,
      personally appeared ________, known to me to be Vice President of EMC Mortgage
      Corporation, the federal savings association that executed the within instrument
      and also known to me to be the person who executed it on behalf of said
      corporation, and acknowledged to me that such corporation executed the within
      instrument.

     

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

     

     

    
      	 	 
	 	 	 
	
               

            	
               

            	 
	 	Notary
              Public
	 	 	 
	 	 	 
	 	My
              Commission expires	 
	 	 	 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	STATE
                OF  	)	 
	 	)	ss.:
	COUNTY
                OF __________	)	 

      

       

    

     

    On
      the __
      day of _______, 200_ before me, a Notary Public in and for said State,
      personally appeared __________, known to me to be ______________ of Countrywide
      Home Loans, Inc. the corporation that executed the within instrument and also
      known to me to be the person who executed it on behalf of said corporation,
      and
      acknowledged to me that such corporation executed the within
      instrument.

     

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

     

    
      	 	 
	 	 	 
	
               

            	
               

            	 
	 	Notary
              Public
	 	 	 
	 	 	 
	 	My
              Commission expires	 
	 	 	 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    EXHIBIT
      A

     

    MORTGAGE
      LOAN SCHEDULE

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    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 Purchaser and
      any prospective Purchaser, and which shall be retained by the Company in the
      Servicing File or delivered to the Custodian pursuant to Section 2.01 and 2.03
      of the Seller’s Warranties and Servicing Agreement to which this Exhibit is
      attached (the “Agreement”):

     

    
      	
            	
              1.

            	
              The
                original Mortgage Note bearing all intervening endorsements, endorsed
“Pay
                to the order of _________ without recourse” and signed in the name of the
                Company by an authorized officer (in the event that the Mortgage
                Loan was
                acquired by the Company in a merger, the signature must be in the
                following form: “Countrywide Home Loans, Inc., successor by merger to
                [name of predecessor]”; and in the event that the Mortgage Loan was
                acquired or originated by the Company while doing business under
                another
                name, the signature must be in the following form: “Countrywide Home
                Loans, Inc., formerly known as [previous
                name]”).

            

    

     

    
      	
            	
              2.

            	
              The
                original of any guarantee executed in connection with the Mortgage
                Note
                (if any).

            

    

     

    
      	
            	
              3.

            	
              The
                original Mortgage, with evidence of recording thereon. If in connection
                with any Mortgage Loan, the Company cannot deliver or cause to be
                delivered the original Mortgage with evidence of recording thereon
                on or
                prior to the related 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 Company shall
                deliver
                or cause to be delivered to the Custodian, a photocopy of such Mortgage,
                together with (i) in the case of a delay caused by the public recording
                office, an Officer’s Certificate of the Company stating that such Mortgage
                has been dispatched to the appropriate public recording office for
                recordation and that the original recorded Mortgage or a copy of
                such
                Mortgage certified by such public recording office to be a true and
                complete copy of the original recorded Mortgage will be promptly
                delivered
                to the Custodian upon receipt thereof by the Company; or (ii) in
                the case
                of a Mortgage 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 or by the title insurance
                company that issued the title policy to be a true and complete copy
                of the
                original recorded Mortgage.

            

    

     

    
      	
            	
              4.

            	
              The
                originals of all assumption, modification, consolidation or extension
                agreements, with evidence of recording
                thereon.

            

    

     

    
      	
            	
              5.

            	
              The
                original Assignment of Mortgage for each Mortgage Loan, in form and
                substance acceptable for recording, delivered in blank. If the Mortgage
                Loan was acquired by the Company in a merger, the Assignment of Mortgage
                must be made by “Countrywide Home Loans, Inc., successor by merger to
                [name of predecessor].”  If the Mortgage Loan was acquired or
                originated by the Company while doing business under another name,
                the
                Assignment of Mortgage must be by “Countrywide Home Loans, Inc., formerly
                known as [previous name].”

            

    

     

    
      	
            	
              6.

            	
              Originals
                of all intervening assignments of the Mortgage with evidence of recording
                thereon, or if any such intervening assignment has not been returned
                from
                the applicable recording office or has been lost or if such public
                recording office retains the original recorded assignments of mortgage,
                the Company shall deliver or cause to be delivered to the Custodian,
                a
                photocopy of such intervening assignment, together with (i) in the
                case of
                a delay caused by the public recording office, an Officer’s Certificate of
                the Company stating that such intervening assignment of mortgage
                has been
                dispatched 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 or by the title insurance company that issued
                the
                title policy 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 Company; or (ii) in the case
                of an
                intervening assignment where a public recording office retains the
                original recorded intervening assignment or in the case where an
                intervening assignment is lost after recordation in a public recording
                office, a copy of such intervening assignment certified by such public
                recording office to be a true and complete copy of the original recorded
                intervening assignment.

            

    

     

    
      	
            	
              7.

            	
              The
                original mortgagee policy of title insurance or attorney’s opinion of
                title and abstract of title.

            

    

     

    
      	
            	
              8.

            	
              Any
                security agreement, chattel mortgage or equivalent executed in connection
                with the Mortgage.

            

    

     

    
      	
            	
              9.

            	
              The
                original hazard insurance policy and, if required by law, flood insurance
                policy, in accordance with Section 4.10 of the
                Agreement.

            

    

     

    
      	
            	
              10.

            	
              Residential
                loan application.

            

    

     

    
      	
            	
              11.

            	
              Mortgage
                Loan closing statement.

            

    

     

    
      	
            	
              12.

            	
              Verification
                of employment and income.

            

    

     

    
      	
            	
              13.

            	
              Verification
                of acceptable evidence of source and amount of
                downpayment.

            

    

     

    
      	
            	
              14.

            	
              Credit
                report on the Mortgagor.

            

    

     

    
      	
            	
              15.

            	
              Residential
                appraisal report.

            

    

     

    
      	
            	
              16.

            	
              Photograph
                of the Mortgaged Property.

            

    

     

    
      	
            	
              17.

            	
              Survey
                of the Mortgaged Property.

            

    

     

    
      	
            	
              18.

            	
              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.

            

    

     

    
      	
            	
              19.

            	
              All
                required disclosure statements.

            

    

     

    
      	
            	
              20.

            	
              If
                available, termite report, structural engineer’s report, water potability
                and septic certification.

            

    

     

    
      	
            	
              21.

            	
              Sales
                contract.

            

    

     

    
      	
            	
              22.

            	
              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.

            

    

     

    In
      the
      event an Officer’s Certificate of the Company is delivered to the Custodian
      because of a delay caused by the public recording office in returning any
      recorded document, the Company shall deliver to the Custodian, within 180 days
      of the related Closing Date, an Officer’s Certificate which shall (i) identify
      the recorded document, (ii) state that the recorded document has not been
      delivered to the Custodian due solely to a delay caused by the public recording
      office, (iii) state the amount of time generally required by the applicable
      recording office to record and return a document submitted for recordation,
      and
      (iv) specify the date the applicable recorded document will be delivered to
      the
      Custodian. The Company shall be required to deliver to the Custodian the
      applicable recorded document by the date specified in (iv) above. An extension
      of the date specified in (iv) above may be requested from the Purchaser, which
      consent shall not be unreasonably withheld.

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      C

    

    MORTGAGE
      LOAN DOCUMENTS

     

    The
      Mortgage Loan Documents for each Mortgage Loan shall include each of the
      following items, which shall be delivered to the Custodian pursuant to Section
      2.01 of the Seller’s Warranties and Servicing Agreement to which this Exhibit is
      annexed (the “Agreement”):

     

    (a)  the
      original Mortgage Note bearing all intervening endorsements, endorsed “Pay to
      the order of ___________, without recourse” and signed in the name of the
      Company by an authorized officer. To the extent that there is no room on the
      face of the Mortgage Note for endorsements, the endorsement may be contained
      on
      an allonge, if state law so allows. If the Mortgage Loan was acquired by the
      Company in a merger, the endorsement must be by “Countrywide Home Loans, Inc.,
      successor by merger to [name of predecessor].”  If the Mortgage Loan
      was acquired or originated by the Company while doing business under another
      name, the endorsement must be by “Countrywide Home Loans, Inc., formerly known
      as [previous name]”;

     

    (b)  the
      original of any guarantee executed in connection with the Mortgage
      Note;

     

    (c)  the
      original Mortgage with evidence of recording thereon, and the original recorded
      power of attorney, if the Mortgage was executed pursuant to a power of attorney,
      with evidence of recording thereon;

     

    (d)  the
      originals of all assumption, modification, consolidation or extension
      agreements, with evidence of recording thereon;

     

    (e)  the
      original Assignment of Mortgage for each Mortgage Loan, in form and substance
      acceptable for recording, delivered in blank, or the original Assignment of
      Mortgage in recordable form into MERS. If the Mortgage Loan was acquired by
      the
      Company in a merger, the Assignment of Mortgage must be made by “Countrywide
      Home Loans, Inc., successor by merger to [name of predecessor].”  If
      the Mortgage Loan was acquired or originated by the Company while doing business
      under another name, the Assignment of Mortgage must be by “Countrywide Home
      Loans, Inc., formerly known as [previous name];”

     

    (f)  the
      originals of all intervening assignments of mortgage with evidence of recording
      thereon, including warehousing assignments, if any;

     

    (g)  the
      original mortgagee title insurance policy;

     

    (h)  such
      other documents as the Purchaser may require.

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      D-1

     

    CUSTODIAL
      ACCOUNT CERTIFICATION

     

    _____________________,
      200_

     

    Countrywide
      Home Loans, Inc. hereby certifies that it has established the account described
      below as a Custodial Account pursuant to Section 4.04 of the Seller’s Warranties
      and Servicing Agreement, dated as of September 1, 2002, Residential Adjustable
      Rate Mortgage Loans.

     

    Title
      of
      Account:            Countrywide
      Home Loans, Inc. in trust for the Purchaser

     

    Account
      Number:          _______________

     

    Address
      of office or branch

    of
      the
      Company at

    
      	which
              Account is maintained:	 
	 	
               

               

            
	 	
               

               

            
	 	
               

               

            
	 	 

    

     

    
      	 	
              Countrywide
                Home Loans, Inc. 

            
	 	 	 
	 	Company 
	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      D-2

     

    CUSTODIAL
      ACCOUNT LETTER AGREEMENT

     

    _________________,
      200_

     

     

    
      	
              To:

            	 	 
	 	
               

               

            	 
	 	
               

               

            	 
	 	
              (the
                “Depository”)

            	 

    

     

    As
      Company under the Seller’s Warranties and Servicing Agreement, dated as of
      September 1, 2002, Residential Adjustable Rate Mortgage Loans (the “Agreement”),
      we hereby authorize and request you to establish an account, as a Custodial
      Account pursuant to Section 4.04 of the Agreement, to be designated as
“[Servicer] in trust for the Purchaser - Residential Adjustable Rate Mortgage
      Loans.”  All deposits in the account shall be subject to withdrawal
      therefrom by order signed by the Company. You may refuse any deposit which
      would
      result in violation of the requirement that the account be fully insured as
      described below. This letter is submitted to you in duplicate. Please execute
      and return one original to us.

     

    
      	 	
              
                [COUNTRYWIDE
                  HOME LOANS, INC.]

                 

              

            
	 	 	 
	 	 
	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 
	 	 	 
	 	Date:	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    The
      undersigned, as Depository, hereby certifies that the above described account
      has been established under Account Number __________, at the office of the
      Depository indicated above, and agrees to honor withdrawals on such account
      as
      provided above. The full amount deposited at any time in the account will be
      insured by the Federal Deposit Insurance Corporation through the Bank Insurance
      Fund (“BIF”) or the Savings Association Insurance Fund (“SAIF”).

     

     

    
      
        	 	 
	 	
                
                  Depository

                

              
	 	 
	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 
	 	 	 
	 	Date:	 

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      E-1

    

    ESCROW
      ACCOUNT CERTIFICATION

     

    __________________,
      200_

     

    Countrywide
      Home Loans, Inc. hereby certifies that it has established the account described
      below as an Escrow Account pursuant to Section 4.06 of the Seller’s Warranties
      and Servicing Agreement, dated as of September 1, 2002, Residential Adjustable
      Rate Mortgage Loans.

     

    Title
      of
      Account:                           
 “Countrywide Home Loans, Inc. in trust for the Purchaser and various
      Mortgagors.”

     

    Account
      Number:                            _______________

     

    Address
      of office or branch

    of
      the
      Company at

    
      	
              which
                Account is maintained:

            	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	
               

              [COUNTRYWIDE
                HOME LOANS, INC.]

               

               

            
	 	 	 
	 	By:	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 

    

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      E-2

    

    ESCROW
      ACCOUNT LETTER AGREEMENT

     

    ___________________,
      200_

     

    
      	
              To:

            	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	
              (the
                “Depository”)

            	 

    

     

    As
      Company under the Seller’s Warranties and Servicing Agreement, dated as of
      September 1, 2002 Residential Adjustable Rate Mortgage Loans (the “Agreement”),
      we hereby authorize and request you to establish an account, as an Escrow
      Account pursuant to Section 4.07 of the Agreement, to be designated as
“[Servicer], in trust for the Purchaser - Residential Adjustable Rate Mortgage
      Loans.”  All deposits in the account shall be subject to withdrawal
      therefrom by order signed by the Company. You may refuse any deposit which
      would
      result in violation of the requirement that the account be fully insured as
      described below. This letter is submitted to you in duplicate. Please execute
      and return one original to us.

     

     

    
      	 	
              
                [COUNTRYWIDE
                  HOME LOANS, INC.]

                 

              

            
	 	 	 
	 	 
	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 
	 	 	 
	 	Date:	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    The
      undersigned, as Depository, hereby certifies that the above described account
      has been established under Account Number ______, at the office of the
      Depository indicated above, and agrees to honor withdrawals on such account
      as
      provided above. The full amount deposited at any time in the account will be
      insured by the Federal Deposit Insurance Corporation through the Bank Insurance
      Fund (“BIF”) or the Savings Association Insurance Fund (“SAIF”).

     

    
       

      
        
          	 	 
	 	
                  
                    Depository

                  

                
	 	 
	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title:	 
	 	 	 
	 	Date:	 

        

        

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

         

      

    

    EXHIBIT
      F

     

    MONTHLY
      REMITTANCE ADVICE

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      G

     

    ASSIGNMENT
      AND ASSUMPTION

     

    _________________,
      200_

     

    ASSIGNMENT
      AND ASSUMPTION, dated __________, between __________________________________,
      a
      ___________________ corporation having an office at __________________
      (“Assignor”) and _________________________________, a __________________
      corporation having an office at __________________ (“Assignee”):

     

    For
      and
      in consideration of the sum of TEN DOLLARS ($10.00) and other valuable
      consideration the receipt and sufficiency of which hereby are acknowledged,
      and
      of the mutual covenants herein contained, the parties hereto hereby agree as
      follows:

     

    1.  The
      Assignor hereby grants, transfers and assigns to Assignee all of the right,
      title and interest of Assignor, as purchaser, in, to and under that certain
      Seller’s Warranties and Servicing Agreement, Residential Adjustable Rate
      Mortgage Loans (the “Seller’s Warranties and Servicing Agreement”), dated as of
      September 1, 2002, by and between EMC Mortgage Corporation (the “Purchaser”),
      and Countrywide Home Loans, Inc. (the “Company”), and the Mortgage Loans
      delivered thereunder by the Company to the Assignor.

     

    2.  The
      Assignor warrants and represents to, and covenants with, the Assignee
      that:

     

    a.  The
      Assignor is the lawful owner of the Mortgage Loans with the full right to
      transfer the Mortgage Loans free from any and all claims and encumbrances
      whatsoever;

     

    b.  The
      Assignor has not received notice of, and has no knowledge of, any offsets,
      counterclaims or other defenses available to the Company with respect to the
      Seller’s Warranties and Servicing Agreement or the Mortgage Loans;

     

    c.  The
      Assignor has not waived or agreed to any waiver under, or agreed to any
      amendment or other modification of, the Seller’s Warranties and Servicing
      Agreement, the Custodial Agreement or the Mortgage Loans, including without
      limitation the transfer of the servicing obligations under the Seller’s
      Warranties and Servicing Agreement. The Assignor has no knowledge of, and has
      not received notice of, any waivers under or amendments or other modifications
      of, or assignments of rights or obligations under, the Seller’s Warranties and
      Servicing Agreement or the Mortgage Loans; and

     

    d.  Neither
      the Assignor nor anyone acting on its behalf has offered, transferred, pledged,
      sold or otherwise disposed of the Mortgage Loans, any interest in the Mortgage
      Loans or any other similar security to, or solicited any offer to buy or accept
      a transfer, pledge or other disposition of the Mortgage Loans, any interest
      in
      the Mortgage Loans or any other similar security from, or otherwise approached
      or negotiated with respect to the Mortgage Loans, any interest in the Mortgage
      Loans 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 which would constitute a distribution of the Mortgage
      Loans under the Securities Act of 1933 (the “33 Act”) or which would render the
      disposition of the Mortgage Loans a violation of Section 5 of the 33 Act or
      require registration pursuant thereto.

     

    3.  The
      Assignee warrants and represents to, and covenants with, the Assignor and the
      Company that:

     

    a.  The
      Assignee agrees to be bound, as Purchaser, by all of the terms, covenants and
      conditions of the Seller’s Warranties and Servicing Agreement, the Mortgage
      Loans and the Custodial Agreement, and from and after the date hereof, the
      Assignee assumes for the benefit of each of the Company and the Assignor all
      of
      the Assignor’s obligations as Purchaser thereunder;

     

    b.  The
      Assignee understands that the Mortgage Loans have not been registered under
      the
      33 Act or the securities laws of any state;

     

    c.  The
      purchase price being paid by the Assignee for the Mortgage Loans are in excess
      of $250,000 and will be paid by cash remittance of the full purchase price
      within 60 days of the sale;

     

    d.  The
      Assignee is acquiring the Mortgage Loans for investment for its own account
      only
      and not for any other person. In this connection, neither the Assignee nor
      any
      Person authorized to act therefor has offered the Mortgage Loans by means of
      any
      general advertising or general solicitation within the meaning of Rule 502(c)
      of
      U.S. Securities and Exchange Commission Regulation D, promulgated under the
      1933
      Act;

     

    e.  The
      Assignee considers itself a substantial, sophisticated institutional investor
      having such knowledge and experience in financial and business matters that
      it
      is capable of evaluating the merits and risks of investment in the Mortgage
      Loans;

     

    f.  The
      Assignee has been furnished with all informa­tion regarding the Mortgage
      Loans that it has requested from the Assignor or the Company;

     

    g.  Neither
      the Assignee nor anyone acting on its behalf has offered, transferred, pledged,
      sold or otherwise disposed of the Mortgage Loans, any interest in the Mortgage
      Loans or any other similar security to, or solicited any offer to buy or accept
      a transfer, pledge or other disposition of the Mortgage Loans, any interest
      in
      the Mortgage Loans or any other similar security from, or otherwise approached
      or negotiated with respect to the Mortgage Loans, any interest in the Mortgage
      Loans or any other similar security with, any person in any manner which would
      constitute a distribution of the Mortgage Loans under the 33 Act or which would
      render the disposition of the Mortgage Loans a violation of Section 5 of the
      33
      Act or require registration pursuant thereto, nor will it act, nor has it
      authorized or will it authorize any person to act, in such manner with respect
      to the Mortgage Loans; and

     

    h.  Either:
      (1) the Assignee is not an employee benefit plan (“Plan”) within the meaning of
      section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”) or a plan (also “Plan”) within the meaning of section 4975(e)(1) of
      the Internal Revenue Code of 1986 (“Code”), and the Assignee is not directly or
      indirectly purchasing the Mortgage Loans on behalf of, investment manager of,
      as
      named fiduciary of, as Trustee of, or with assets of, a Plan; or (2) the
      Assignee’s purchase of the Mortgage Loans will not result in a prohibited
      transaction under section 406 of ERISA or section 4975 of the Code.

     

    i.  The
      Assignee’s address for purposes of all notices and correspondence related to the
      Mortgage Loans and the Seller’s Warranties and Servicing Agreement
      is:

    
       

      
        	
                 

              	 	 
	 	 	 
	 	 	 
	 	 	 

      

      

      
        	 	Attention: 	 	 

      

       

    

    The
      Assignee’s wire transfer instructions for purposes of all remittances and
      payments related to the Mortgage Loans and the Seller’s Warranties and Servicing
      Agreement are:

     

    
      
        	
                 

              	 	 
	 	 	 
	 	 	 

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have caused this Assignment and Assumption to
      be
      executed by their duly authorized officers as of the date first above
      written.

     

     

    
      	 	 	 	 	 
	
              Assignor

               

               

            	 	
              Assignee

            
	By:  	 	 	By:  	 
	 	 	 	 	 
	Its:  	 	 	Its:  	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      H

     

    UNDERWRITING
      UIDELINES

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      I

     

    ACKNOWLEDGMENT
      AGREEMENT

     

    On
      this
      ____ day of ____________, 200_, EMC Mortgage Corporation, (the “Purchaser”) as
      the Purchaser under that certain Seller’s Warranties and Servicing Agreement
      dated as of September 1, 2002, (the “Agreement”), does hereby contract with
      Countrywide Home Loans Inc. (the “Company”) as Company under the Agreement, for
      the servicing responsibilities related to the Mortgage Loans listed on the
      related Mortgage Loan Schedule attached hereto. The Company hereby accepts
      the
      servicing responsibilities transferred hereby and on the date hereof assumes
      all
      servicing responsibilities related to the Mortgage Loans identified on the
      related Mortgage Loan Schedule all in accordance with the Agreement. The
      contents of each Servicing File required to be delivered to service the Mortgage
      Loans pursuant to the Agreement have been or shall be delivered to the Company
      by the Purchaser in accordance with the terms of the Agreement.

     

    With
      respect to the Mortgage Loans made subject to the Agreement hereby, the related
      Closing Date shall be ___________________.

     

    All
      other
      terms and conditions of this transaction shall be governed by the
      Agreement.

     

    Capitalized
      terms used herein and not otherwise defined shall have the meanings set forth
      in
      the Agreement.

     

    This
      Acknowledgment Agreement may be executed simultaneously in any number of
      counterparts. Each counterpart shall be deemed to be an original, and all such
      counterparts shall constitute one and the same instrument.

     

    IN
      WITNESS WHEREOF, the Purchaser and the Company have caused their names to be
      signed hereto by their respective officers thereunto duly authorized as of
      the
      day and year first above written.

     

    
      	 	
              PURCHASER:

              EMC MORTGAGE CORPORATION

            	 
	 	 	 	 
	
               

            	
              By:
                

            	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 	 	 	 

    

     

    
      
        	 	
                
                   SELLER:

                  COUNTRYWIDE
                    HOME LOANS, INC.

                

              	 
	 	 	 	 
	
                 

              	
                By:
                  

              	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 	 	 	 

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    AMENDMENT
      NUMBER ONE

    to
      the

    SELLER’S
      WARRANTIES AND SERVICING AGREEMENT

    dated
      as
      of September 1, 2002

    by
      and
      between

    COUNTRYWIDE
      HOME LOANS, INC.

    Company,

    and

    EMC
      MORTGAGE CORPORATION

    Purchaser

    

    This
      AMENDMENT NUMBER
      ONE is
      made this 1st
      day of
      January, 2003, by and between COUNTRYWIDE HOME LOANS, INC.,
      having
      an
      address at 4500 Park Granada, Calabasas, California 91302 (the “Company”) and
      EMC MORTGAGE CORPORATION, having an address at Mac Arthur Ridge II, 909 Hidden
      Ridge Drive, Suite 200, Irving, Texas 75014-1358 (the “Purchaser”), to the
      Seller’s Warranties and Servicing Agreement, dated as of September 1, 2002, by
      and between the Company and the Purchaser (the “Agreement”).

    

    RECITALS

    

    WHEREAS,
      the Company and the Purchaser have agreed to amend the Agreement as set forth
      herein.

    

    NOW
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, and for the mutual covenants herein contained,
      the parties hereto hereby agree as follows:

    

    SECTION
      1. Amendments.
      Effective as of January 1, 2003, the Agreement is hereby modified by making
      the
      following additions, deletions or modifications:

     

    
      	A)  	
              All
                references to “Residential Adjustable Rate Mortgage Loans” are hereby
                deleted in their entirety and replaced with “Residential Fixed and
                Adjustable Rate Mortgage Loans” in the following sections: (i) the cover
                page, (ii) Section 4.04, (iii) Section 4.06, (iv) Exhibit D-1, (v)
                Exhibit
                D-2, (vi) Exhibit E-1, (vii) Exhibit E-2, and (viii) Exhibit
                G.

            

    

    

    
      	B)  	
              The
                references to “adjustable rate” are hereby deleted and replaced with
                “fixed and adjustable rate” in the following sections: (i) the
                introductory sentence of the Agreement, and (ii) Section 3.01(i).
                

            

    

    

    
      	C)  	
              The
                definition of “Convertible Mortgage Loan” is hereby deleted in its
                entirety.

            

    

    

    
      	D)  	
              The
                definition of “5/1 ARM Mortgage Loan” is hereby deleted in its
                entirety.

            

    

     

    
      	E)  	
              The
                definition of “Gross Margin” is hereby modified by deleting it in its
                entirety and replacing it with the
                following:

            

    

     

    Gross
      Margin:
      With
      respect to each adjustable rate Mortgage Loan, the fixed percentage amount
      set
      forth on the related Mortgage Note, which amount is added to the Index in
      accordance with the terms of the related Mortgage Note to determine on each
      Interest Rate Adjustment Date, the Mortgage Interest Rate for such Mortgage
      Loan.

    

    
      	F)  	
              The
                definition of “Index” is hereby modified by deleting it in its entirety
                and replacing it with the
                following:

            

    

    

    Index:
      With
      respect to any adjustable rate Mortgage Loan, the index identified on the
      related Mortgage Loan Schedule and set forth in the related Mortgage Note for
      the purpose of calculating the Mortgage Interest Rate thereon.

    

    
      	G)  	
              The
                definition of “Initial Rate Cap” is hereby modified by deleting it in its
                entirety and replacing it with the
                following:

            

    

     

    Initial
      Rate Cap:
      With
      respect to each adjustable rate Mortgage Loan and the initial Interest Rate
      Adjustment Date therefor, a number of percentage points per annum that is set
      forth in the related Mortgage Loan Schedule and in the related Mortgage Note,
      which is the maximum amount by which the Mortgage Interest Rate for such
      adjustable rate Mortgage Loan may increase or decrease from the Mortgage
      Interest Rate in effect immediately prior to such Interest Rate Adjustment
      Date.

     

    
      	H)  	
              The
                definition of “LIBOR Mortgage Loan” is hereby deleted in its
                entirety.

            

    

    

    
      	I)  	
              The
                definition of “Lifetime Mortgage Interest Rate Cap” is hereby modified by
                deleting it in its entirety and replacing it with the
                following:

            

    

     

    Lifetime
      Mortgage Interest Rate Cap:
      With respect to each adjustable rate Mortgage Loan, the absolute maximum
      Mortgage Interest Rate payable, above which the Mortgage Interest Rate cannot
      be
      adjusted. 

     

    
      	J)  	
              The
                definition of “Mortgage Interest Rate” is hereby modified by deleting it
                in its entirety and replacing it with the
                following:

            

    

     

    Mortgage
      Interest Rate:
      The
      annual rate at which Interest accrues on any Mortgage Loan, and with respect
      to
      adjustable rate Mortgage Loans, the annual rate at which Interest accrues as
      adjusted from time to time in accordance with the provisions of the related
      Mortgage Note and in compliance with the related Initial Rate Cap, Lifetime
      Mortgage Interest Rate Cap and Periodic Rate Cap, if any, of the related
      Mortgage Note.

     

    
      	K)  	
              The
                definition of “Mortgage Loan” is hereby modified by deleting it in its
                entirety and replacing it with the
                following:

            

    

    

    Mortgage
      Loan:
      An
      individual fixed or adjustable rate Mortgage
      Loan which 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 Monthly
      Payments, Principal Prepayments, Liquidation Proceeds, condemnation proceeds,
      Insurance Proceeds, REO disposition proceeds, and all other rights, benefits,
      proceeds and obligations arising from or in connection with such Mortgage
      Loan.

    

    
      	L)  	
              The
                definition of “Non-Convertible Mortgage Loan” is hereby deleted in its
                entirety.

            

    

    

    
      	M)  	
              The
                definition of “Servicing Fee Rate” is hereby modified by deleting it in
                its entirety and replacing it with the
                following:

            

    

    

    Servicing
      Fee Rate:
      (i)
      0.25% per annum with respect to fixed rate Mortgage Loans and certain adjustable
      rate Mortgage Loans as specified on the Mortgage Loan Schedule, (ii) 0.375%
      per
      annum with respect to certain adjustable rate Mortgage Loans as specified on
      the
      Mortgage Loan Schedule, and (iii) 0.25% with respect to certain adjustable
      rate
      Mortgage Loans for the period prior to the initial Interest Rate Adjustment
      Date
      and 0.375% for the period following the initial Interest Rate Adjustment Date
      as
      specified in the Mortgage Loan Schedule.

    

    
      	N)  	
              The
                definition of “7/1 ARM Mortgage Loan” is hereby deleted in its
                entirety.

            

    

    

    
      	O)  	
              The
                definition of “10/1 ARM Mortgage Loan” is hereby deleted in its
                entirety.

            

    

    

    
      	P)  	
              The
                definition of “3/1 ARM Mortgage Loan” is hereby deleted in its
                entirety.

            

    

    

    
      	Q)  	
              The
                definition of “Treasury Rate Mortgage Loan” is hereby deleted in its
                entirety.

            

    

    

    
      	R)  	
              Section
                3.01(c) is hereby modified by deleting the subpart in its entirety
                and
                replacing it with the following:

            

    

     

    
      	(c)  	
              No
                Conflicts; No Default.
                Neither the execution and delivery of this Agreement, the acquisition
                of
                the Mortgage Loans by the Company, the sale of the Mortgage Loans
                to the
                Purchaser or 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 Company’s charter or by-laws or any legal restriction or
                any agreement or instrument to which the Company 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 Company or its
                property
                is subject, or impair the ability of the Purchaser to realize on
                the
                Mortgage Loans, or impair the value of the Mortgage Loans. The Company
                is
                not in default, and has received no notice of default, under this
                Agreement;

            

    

     

    
      	S)  	
              Section
                3.01(d) is hereby modified by deleting the subpart in its entirety
                and
                replacing it with the following:

            

    

     

    
      	(d)  	
              Ability
                to Service.
                The Company is an approved seller/servicer of conventional residential
                mortgage loans for the United States Department of Housing and Urban
                Development (“HUD”), Fannie Mae, Freddie Mac, or any successor thereto,
                with the facilities, procedures, and experienced personnel necessary
                for
                the sound servicing of mortgage loans of the same type as the Mortgage
                Loans. The Company is in good standing to sell mortgage loans to
                and
                service mortgage loans for HUD, Fannie Mae or Freddie Mac, and no
                event
                has occurred, including but not limited to a change in insurance
                coverage,
                which would make the Company unable to comply with HUD, Fannie Mae
                or
                Freddie Mac eligibility requirements or which would require notification
                to either HUD, Fannie Mae or Freddie
                Mac;

            

    

    

    T) The
      following shall be inserted as the last sentence of Section
      3.02(f):

     

    “To
      the
      best of Company’s knowledge, the Mortgaged Property is free of material
      damage;”

    

    
      	U)  	
              The
                first sentence of Section 3.02(k) is hereby modified by deleting
                the
                sentence in its entirety and replacing it with the
                following:

            

    

     

    
      	(k)  	
              Validity
                of Mortgage Documents.
                The Mortgage Note and the Mortgage are genuine, on forms generally
                acceptable to Fannie Mae and Freddie Mac, and each is the legal,
                valid and
                binding obligation of the maker thereof enforceable in accordance
                with its
                terms. 

            

    

     

    
      	V)  	
              The
                following shall be inserted as the last sentence of Section
                3.02(m):

            

    

    

    “Upon
      recordation of the Mortgage Note, Purchaser or its designee will be the owner
      of
      record of the Mortgage and the indebtedness evidenced by the Mortgage Note.
      Upon
      the sale of the Mortgage Loans, Purchaser will own such Mortgage Loans free
      and
      clear of any encumbrance, equity, participation interest, pledge, change, claim
      or security interest.”

    

    
      	W)  	
              Section
                3.02(t) is hereby modified by deleting the subpart in its entirety
                and
                replacing it with the following:

            

    

     

    
      
        	(t)  	
                Origination;
                  Payment Terms.
                  The Mortgage Loan was originated by either i) the Company, which
                  is a
                  FNMA-approved, FHLMC-approved and HUD-approved mortgage banker,
                  or ii) an
                  entity that is a FNMA-approved, FHLMC-approved and HUD-approved
                  mortgage
                  banker, or a savings and loan association, a savings bank, a commercial
                  bank or similar banking institution which is supervised and examined
                  by a
                  Federal or state authority. The Mortgage Interest Rate for an adjustable
                  rate Mortgage Loan is adjusted as set forth in the related Mortgage
                  Note.
                  The Mortgage Note is payable each month in monthly installments
                  of
                  principal and interest, with interest in arrears, and requires
                  Monthly
                  Payments sufficient to amortize the original principal balance
                  of the
                  Mortgage Loan over a term of no more than 30 years. Each convertible
                  Mortgage Loan contains a provision whereby the Mortgagor is permitted
                  to
                  convert the Mortgage Loan to a fixed-rate mortgage loan. No Mortgage
                  Loan
                  has a provision for negative
                  amortization;

              

      

    

     

    
      	X)  	
              Section
                3.05 is hereby modified
                by deleting the section in its entirety and replacing it with the
                following:

            

    

     

    Section
      3.05  Repurchase
      Upon Conversion.

    

    In
      the
      event the Mortgagor under any convertible Mortgage Loan elects to convert said
      Mortgage Loan to a fixed rate mortgage loan, as provided in the related Mortgage
      Note, then the Company shall repurchase the related Mortgage Loan in the month
      the conversion takes place and in the manner prescribed in Section 3.04 at
      the
      Repurchase Price.

    

    
      	Y)  	
              The
                following shall be inserted as the last sentence of Section
                9.01:

            

    

    

    “All
      indemnification provisions of this Agreement, including but not limited to
      those
      set forth in this Section 9.01, shall survive the termination of this
      Agreement.”

    

    SECTION
      2. Defined
      Terms.
      Any
      terms capitalized but not otherwise defined herein shall have the respective
      meanings set forth in the Agreement.

     

    SECTION
      3. Governing
      Law.
      THIS
      AMENDMENT NUMBER ONE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE
      OF NEW YORK (INCLUDING SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW)
      AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
      DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO CONFLICT OF LAWS
      DOCTRINE APPLIED IN SUCH STATE (OTHER THAN SECTION 5-1401 OF THE NEW YORK
      GENERAL OBLIGATIONS LAW).

    

    SECTION
      4. Counterparts.
      This
      Amendment Number One may be executed by each of the parties hereto on any number
      of separate counterparts, each of which shall be an original and all of which
      taken together shall constitute one and the same instrument.

    

    SECTION
      5. Limited
      Effect.
      Except
      as amended hereby, the Agreement shall continue in full force and effect in
      accordance with its terms. Reference to this Amendment Number One need not
      be
      made in the Agreement or any other instrument or document executed in connection
      therewith, or in any certificate, letter or communication issued or made
      pursuant to, or with respect to, the Agreement, any reference in any of such
      items to the Agreement being sufficient to refer to the Agreement as amended
      hereby.

    

    [SIGNATURE
      PAGE FOLLOWS]

    

    IN
      WITNESS WHEREOF, the Company and the Purchaser have caused this Amendment Number
      One to be executed and delivered by their duly authorized officers as of the
      day
      and year first above written.

     

    
      
        	 	 	 	 	 	 	 	
                COUNTRYWIDE
                  HOME LOANS, INC.

                (Company)

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	
                 

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      
        	 	 	 	 	 	 	 	
                EMC
                  MORTGAGE CORPORATION

                (Purchaser)

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	
                 

              
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    This
      AMENDMENT No. 2 (the “Amendment”) is made this 1st
      day of
      September, 2004, by and between EMC Mortgage Corporation (the “Purchaser”) and
      Countrywide Home Loans, Inc. (the “Company”), to the Seller’s Warranties and
      Servicing Agreement dated as of September 1, 2002 (the “SWS Agreement”), by and
      between the Purchaser and the Company.

     

    WHEREAS,
      the Purchaser and the Company desire to amend the SWS Agreement as set forth
      herein.

     

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereto hereby agrees as
      follows:

     

    SECTION
      1.           Defined
      Terms.
      Unless
      otherwise amended by the terms of this Amendment, terms used in this Amendment
      shall have the meanings assigned in the SWS Agreement.

     

    SECTION
      2.           Amendment.
      Effective as of September 1, 2004 the SWS Agreement is hereby amended as
      follows:

     

    (a)           The
      following definition of Qualified Depository is modified by adding the word
      “fully” to it and now reads as follows:

     

    Qualified
      Depository:
      A
      depository the accounts of which are fully insured by the FDIC through BIF
      or
      SAIF or the debt obligations of which are rated AA (or the equivalent rating
      category) or better by a national recognized statistical rating
      organization.

     

    (b)           The
      following definition is added to Article I of the SWS Agreement:

     

    Master
      Servicer:
      Wells
      Fargo Bank, National Association, or its successors in interest.

     

    (c)           The
      definition of Business Day is deleted in its entirety and replaced with the
      following:

     

    Business
      Day:
      Any day
      other than: (i) a Saturday or Sunday, or (ii) a legal holiday in the States
      of
      New York, California, Texas, Maryland or Minnesota, or (iii) a day on which
      banks in the States of New York, California, Texas, Maryland or Minnesota are
      authorized or obligated by law or executive order to be closed.

     

    (d)           Clause
      (d) of Section 3.01 of the SWS Agreement is deleted in its entirety and replaced
      with the following:

     

    (d)           Ability
      to Service.
      The
      Company is an approved servicer of conventional residential mortgage loans
      for
      Fannie Mae or Freddie Mac, with the facilities, procedures, and experienced
      personnel necessary for the sound servicing of mortgage loans of the same type
      as the Mortgage Loans. The Company is in good standing to service mortgage
      loans
      for Fannie Mae or Freddie Mac, and no event has occurred, including but not
      limited to a change in insurance coverage, which would make the Company unable
      to comply with Fannie Mae or Freddie Mac eligibility requirements or which
      would
      require notification to either Fannie Mae or Freddie Mac;

     

    (e)           Section
      3.02(oo) of the SWS Agreement is hereby deleted in its entirety and replaced
      with the following:

     

    
      	 	
              (oo)

            	
              No
                HOEPA or “High Cost” Loans.
                No Mortgage Loan is classified as a “high cost” mortgage loan under the
                Home Ownership and Equity Protection Act of 1994, as amended, nor
                is any
                Mortgage Loan a “high cost home,” “covered,” “high risk home” or
                “predatory” loan under any applicable state, federal or local law (or a
                similarly classified loan using different terminology under a law
                imposing
                heightened regulatory scrutiny or additional legal liability for
                residential mortgage loans having high interest rates, points and/or
                fees)
                or any other statute or regulation providing assignee liability to
                holders
                of such mortgage loans.

            

    

     

    (f)           
      The
      following representations and warranties are added to Section 3.02 of the SWS
      Agreement:

     

    
      	 	
              (xx)

            	
              No
                Mortgage Loan originated on or after October 1, 2002 through March
                6, 2003
                is secured by Mortgaged Property located in the State of
                Georgia;

            

    

     

    
      	 	
              (yy)

            	
              No
                Mortgage Loan originated on or after March 7, 2003 is a “high cost home
                loan” as defined under the Georgia Fair Lending
                Act;

            

    

     

    
      	 	
              (zz)

            	
              With
                respect to each Mortgage Loan, accurate and complete information
                regarding
                the borrower credit files related to such Mortgage Loan has been
                furnished
                on a monthly basis to credit reporting agencies in compliance with
                the
                provisions of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and
                the applicable implementing
                regulations.

            

    

     

    (g)           The
      following shall be added as the second sentence of the third paragraph of
      Section 4.01 of the SWS Agreement:

     

    In
      addition, the Company shall furnish information regarding the borrower credit
      files related to such Mortgage Loan to credit reporting agencies in compliance
      with the provisions of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.,
      and the applicable implementing regulations, on a monthly basis.

     

    (h)           Section
      6.04 of the SWS Agreement is deleted in its entirety and replaced with the
      following:

     

    Section
      6.04     Annual
      Statement as to Compliance.

     

    The
      Company will deliver to the Master Servicer on or before March 15 of each year,
      beginning with March 15, 2005 an Officer’s Certificate in a form acceptable for
      filing with the Securities and Exchange Commission as an exhibit to a Form
      10-K
      stating that (i) a review of the activities of the Company during the preceding
      calendar year and of performance under this Agreement has been made under such
      officer’s supervision, (ii) the Company has fully complied with the servicing
      provisions of this Agreement and (iii) to the best of such officer’s knowledge,
      based on such review, the Company has fulfilled all of its obligations under
      this Agreement throughout such year, or, if there has been a default in the
      fulfillment of any such obligation, specifying each such default known to such
      officer and the nature and status thereof. (“Annual Statement of
      Compliance”)

     

    (i)           Section
      6.05 of the SWS Agreement is deleted in its entirety and replaced with the
      following:

     

    Section
      6.05     Annual
      Independent Certified Public Accountants’ Servicing Report.

     

    On
      or
      before March 15 of each year, beginning with March 15, 2005, the Company at
      its
      expense shall cause a firm of independent public accountants which is a member
      of the American Institute of Certified Public Accountants to furnish a statement
      to the Master Servicer in a form acceptable for filing with the Securities
      and
      Exchange Commission as an exhibit to a Form 10-K to the effect that such firm
      has examined certain documents and records relating to the servicing of mortgage
      loans by the Company generally that include a sampling of the Mortgage Loans,
      the provisions of Article II and Article IV of this Agreement have been complied
      with and, on the basis of such an examination conducted substantially in
      accordance with the Uniform Single Attestation Program for Mortgage Bankers,
      such servicing has been conducted in compliance with this Agreement, except
      for
      (i) such exceptions as such firm shall believe to be immaterial, and (ii) such
      other exceptions as shall be set forth in such statement. (“Annual Independent
      Public Accountant’s Servicing Report”)

     

    (j)           The
      following is added as Section 6.07 of the SWS Agreement:

     

    Section
      6.07     Annual
      Certification.

     

    (a)           For
      so
      long as (1) the Mortgage Loans are being master serviced by the Master Servicer
      and (2) the Master Servicer is required by Section 302 of the Sarbanes-Oxley
      Act
      of 2002 to provide an annual certification, by March 15th of each year,
      beginning with March 15, 2005 (or if not a Business Day, the immediately
      preceding Business Day), an officer of the Company shall execute and deliver
      an
      Officer’s Certificate to the Master Servicer for the benefit of such Master
      Servicer and its officers, directors and affiliates, certifying as to the
      following matters:

     

    (i)           Based
      on
      my knowledge, the information in the Annual Statement of Compliance, the Annual
      Independent Public Accountant’s Servicing Report and all servicing reports,
      officer’s certificates and other information relating to the servicing of the
      Mortgage Loans submitted to the Master Servicer taken as a whole, does not
      contain any untrue statement of a material fact or omit to state a material
      fact
      necessary to make the statements made, in light of the circumstances under
      which
      such statements were made, not misleading as of the last day of the period
      covered by such statements or reports;

     

    (ii)          Based
      on
      my knowledge, the servicing information required to be provided to the Master
      Servicer by the Company under this Servicing Agreement has been provided to
      the
      Master Servicer;

     

    (iii)         I
      am
      responsible for reviewing the activities performed by the Company under the
      Servicing Agreement and based upon my knowledge and the review required by
      this
      Servicing Agreement, and except as disclosed in the Annual Statement of
      Compliance or the Annual Independent Public Accountant’s Servicing Report
      submitted to the Master Servicer, the Servicer has, as of the last day of the
      period covered by the Annual Statement of Compliance, fulfilled its obligations
      under this Servicing Agreement; and

     

    (iv)         I
      have
      disclosed to the Master Servicer all significant deficiencies relating to the
      Company’s compliance with the minimum servicing standards in accordance with a
      review conducted in compliance with the Uniform Single Attestation Program
      for
      Mortgage Bankers or similar standard as set forth in the Servicing
      Agreement.

     

    (b)          The
      Company shall indemnify and hold harmless the Master Servicer and its 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 Company or any of its officers, directors, agents or affiliates of its
      obligations under this Section 6.07 or the negligence, bad faith or willful
      misconduct of the Company in connection therewith. If the indemnification
      provided for herein is unavailable in whole or in part for any reason, then
      the
      Company agrees that it shall contribute to the amount paid or payable by the
      Master Servicer as a result of the losses, claims, damages or liabilities of
      the
      Master Servicer in such proportion as is appropriate to reflect the relative
      fault of the Company, in connection with a breach of the Company’s obligations
      under this Section 6.07 or the Company’s negligence, bad faith or willful
      misconduct in connection therewith.

     

    (k)           Section
      10.01 is hereby modified by adding the word “or” at the end of clause (ix)
      thereof and inserting the following as clause (x):

     

    (x)           failure
      by the Company to duly perform, within the required time period, its obligations
      under Section 6.04, 6.05 or 6.07 which failure continues unremedied for a period
      of ten (10) days after the date on which written notice of such failure,
      requiring the same to be remedied, shall have been given to the Company by
      any
      party to this Servicing Agreement or by any master servicer responsible for
      master servicing the Mortgage Loans pursuant to a securitization of such
      Mortgage Loans.

     

    (l)           Section
      12.03 of the SWS Agreement is deleted in its entirety and replaced with the
      following:

     

    Section
      12.03     Governing
      Law.

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without giving effect to principles of conflicts of laws
      and
      except to the extent preempted by Federal law and the obligations, rights and
      remedies of the parties hereunder shall be determined in accordance with such
      laws.

     

    SECTION
      3.      Effect
      of Amendment.
      Upon
      execution of this Amendment, the SWS Agreement shall be, and be deemed to be,
      modified and amended in accordance herewith and the respective rights,
      limitations, obligations, duties, liabilities and immunities of the Purchaser
      and the Company shall hereafter be determined, exercised and enforced subject
      in
      all respects to such modifications and amendments, and all the terms and
      conditions of this Amendment shall be deemed to be part of the terms and
      conditions of the SWS Agreement for any and all purposes. Except as modified
      and
      expressly amended by this Amendment, the SWS Agreement is in all respects
      ratified and confirmed, and all the terms, provisions and conditions thereof
      shall be and remain in full force and effect.

     

    SECTION
      4.      Binding
      Effect.
      The
      provisions of this Amendment shall be binding upon and inure to the benefit
      of
      the respective successors and assigns of the parties hereto, and all such
      provisions shall inure to the benefit of the Purchaser and the
      Company.

     

    SECTION
      5.      Severability
      of Provisions.
      If any
      one or more of the provisions or terms of this Amendment shall be for any reason
      whatsoever held invalid, then such provisions or terms shall be deemed severable
      from the remaining provisions or terms of this Amendment and shall in no way
      affect the validity or enforceability of the other provisions or terms of this
      Amendment.

     

    SECTION
      6.       Section
      Headings.
      The
      section headings herein are for convenience of reference only, and shall not
      limit or otherwise affect the meaning hereof.

     

    SECTION
      7.      Execution
      in Counterparts. This
      Amendment may be executed by the parties hereto in several counterparts, each
      of
      which shall be executed by the parties hereto and be deemed an original and
      all
      of which shall constitute together by one and the same agreement.

     

    SECTION
      8.      Governing
      Law. THIS
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK, WITHOUT REFERENCE TO CONFLICT OF LAW PRINCIPLES, AND THE OBLIGATIONS,
      RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
      WITH THE LAWS OF THE STATE OF NEW YORK.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have caused this Amendment to the SWS Agreement
      to
      be executed by their respective officers thereunto duly authorized as of the
      day
      and year first above written.

     

    
      	 	 	 
	 	EMC
              MORTGAGE
              CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	Name:   	
              

            
	 	Title:	
              

            
	 	 	
              
 

    

     

    
      	 	 	 
	 	COUNTRYWIDE
              HOME
              LOANS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	Name:   	
              

            
	 	Title:	
              

            
	 	
            	
              
 

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXECUTION
      VERSION

    AMENDMENT
      REG AB

    TO
      THE
      MASTER MORTGAGE LOAN PURCHASEAND SERVICING AGREEMENT

    

     

    This
      is
      Amendment Reg AB (“Amendment
      Reg AB”),
      dated
      as of January 1, 2006, by and between EMC Mortgage Corporation (the
“Purchaser”), and
      Countrywide Home Loans, Inc. (the “Company”)
      to
      that certain Seller’s Warranties and Servicing Agreement dated as of September
      1, 2002 by and between the Company and the Purchaser (as amended, modified
      or
      supplemented, the “Existing
      Agreement”).

     

    W
      I T N E S S E T H

     

    WHEREAS,
      the Company and the Purchaser have agreed, subject to the terms and conditions
      of this Amendment Reg AB that the Existing Agreement be amended to reflect
      agreed upon revisions to the terms of the Existing Agreement.

     

    Accordingly,
      the Company and the Purchaser hereby agree, in consideration of the mutual
      premises and mutual obligations set forth herein, that the Existing Agreement
      is
      hereby amended as follows:

    

    1. Capitalized
      terms used herein but not otherwise defined shall have the meanings set forth
      in
      the Existing Agreement. The Existing Agreement is hereby amended by adding
      the
      following definitions in their proper alphabetical order:

    

    Commission:
      The
      United States Securities and Exchange Commission.

    

    Company
      Information:
      As
      defined in Section 2(g)(i)(A)(1).

    

    Depositor:
      The
      depositor, as such term is defined in Regulation AB, with respect to any
      Securitization Transaction.

    

    Exchange
      Act:
      The
      Securities Exchange Act of 1934, as amended.

    

    Master
      Servicer:
      With
      respect to any Securitization Transaction, the “master servicer,” if any,
      identified in the related transaction documents.

    

    Qualified
      Correspondent:
      Any
      Person from which the Company purchased Mortgage Loans, provided that the
      following conditions are satisfied: (i) such Mortgage Loans were either (x)
      originated pursuant to an agreement between the Company and such Person that
      contemplated that such Person would underwrite mortgage loans from time to
      time,
      for sale to the Company, in accordance with underwriting guidelines designated
      by the Company (“Designated Guidelines”) or guidelines that do not vary
      materially from such Designated Guidelines or (y) individually re-underwritten
      by the Company to the Designated Guidelines at the time such Mortgage Loans
      were
      acquired by the Company; (ii) either (x) the Designated Guidelines were, at
      the
      time such Mortgage Loans were originated, used by the Company in origination
      of
      mortgage loans of the same type as the Mortgage Loans for the Company’s own
      account or (y) the Designated Guidelines were, at the time such Mortgage Loans
      were underwritten, designated by the Company on a consistent basis for use
      by
      lenders in originating mortgage loans to be purchased by the Company; and (iii)
      the Company employed, at the time such Mortgage Loans were acquired by the
      Company, pre-purchase or post-purchase quality assurance procedures (which
      may
      involve, among other things, review of a sample of mortgage loans purchased
      during a particular time period or through particular channels) designed to
      ensure that either Persons from which it purchased mortgage loans properly
      applied the underwriting criteria designated by the Company or the Mortgage
      Loans purchased by the Company substantially comply with the Designated
      Guidelines.

    

    Reconstitution:
      Any
      Securitization Transaction or Whole Loan Transfer.

    

    Reconstitution
      Agreement:
      An
      agreement or agreements entered into by the Company and the Purchaser and/or
      certain third parties in connection with a Reconstitution with respect to any
      or
      all of the Mortgage Loans serviced under the Agreement.

    

    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.

    

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

    

    Securitization
      Transaction:
      Any
      transaction subject to Regulation AB involving either (1) a sale or other
      transfer of some or all of the Mortgage Loans directly or indirectly to an
      issuing entity in connection with an issuance of publicly offered, rated or
      unrated mortgage-backed securities or (2) an issuance of publicly offered,
      rated
      or unrated securities, the payments on which are determined primarily by
      reference to one or more portfolios of residential mortgage loans consisting,
      in
      whole or in part, of some or all of the Mortgage Loans. 

    

    Servicer:
      As
      defined in Section 2(c)(iii).

    

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

    

    Static
      Pool Information:
      Static
      pool information as described in Item 1105 of Regulation AB.

    

    Subcontractor:
      Any
      vendor, subcontractor or other Person that is not responsible for the overall
      servicing (as “servicing” is commonly understood by participants in the
      mortgage-backed securities market) of 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 the Company or a
      Subservicer.

    

    Subservicer:
      Any
      Person that services Mortgage Loans on behalf of the Company or any Subservicer
      and is responsible for the performance (whether directly or through Subservicers
      or Subcontractors) of a substantial portion of the material servicing functions
      required to be performed by the Company under this Agreement or any
      Reconstitution Agreement that are identified in Item 1122(d) of Regulation
      AB;
      provided, however, that the term “Subservicer” shall not include any master
      servicer other than the Company, or any special servicer engaged at the request
      of a Depositor, Purchaser or investor in a Securitization Transaction, nor
      any
“back-up servicer” or trustee performing servicing functions on behalf of a
      Securitization Transaction engaged at the request of a Depositor, Purchaser,
      or
      investor in a Securitization Transaction.

    

    Third-Party
      Originator:
      Each
      Person, other than a Qualified Correspondent, that originated Mortgage Loans
      acquired by the Company.

    

    Whole
      Loan Transfer:
      Any
      sale or transfer of some or all of the Mortgage Loans, other than a
      Securitization Transaction.

    

    2. The
      Purchaser and the Company agree that the Existing Agreement is hereby amended
      by
      adding the following provisions:

    

    (a) Intent
      of the Parties; Reasonableness.

    

    The
      Purchaser and the Company acknowledge and agree that the purpose of Article
      2 of
      this Agreement is to facilitate compliance by the Purchaser and any Depositor
      with the provisions of Regulation AB and related rules and regulations of the
      Commission. Neither the Purchaser nor any Depositor shall exercise its right
      to
      request delivery of information or other performance under these provisions
      other than in good faith, or for purposes other than compliance with the
      Securities Act, the Exchange Act and the rules and regulations of the Commission
      thereunder. Although Regulation AB is applicable by its terms only to offerings
      of asset-backed securities that are registered under the Securities Act, the
      parties acknowledges that investors in privately offered securities may require
      that the Purchaser or any Depositor provide comparable disclosure in
      unregistered offerings. The parties agree over time to negotiate in good faith
      with respect to the provision of comparable disclosure in private offerings.
      The
      Company acknowledges that interpretations of the requirements of Regulation
      AB
      may change over time, whether due to interpretive guidance provided by the
      Commission or its staff. The Company agrees to negotiate in good faith with
      the
      Purchaser or any Depositor with regard to any reasonable requests for delivery
      of information under these provisions on the basis of evolving interpretations
      of Regulation AB. In connection
      with any Securitization Transaction, the Company shall cooperate fully with
      the
      Purchaser to deliver to the Purchaser (including any of its assignees or
      designees) and any Depositor, any and all statements, reports, certifications,
      records and any other information necessary to permit the Purchaser or such
      Depositor to comply with the provisions of Regulation AB, together with such
      disclosures relating to the Company, and any parties or items identified in
      writing by the Purchaser, including, any Subservicer, any Third-Party Originator
      and the Mortgage Loans, or the servicing of the Mortgage Loans necessary in
      order to effect such compliance, in the Purchaser’s or Depositor’s reasonable
      determination. 

    

    The
      Purchaser agrees that it will cooperate with the Company and provide sufficient
      and timely notice of any information requirements pertaining to a Securitization
      Transaction. The Purchaser will make all reasonable efforts to limit requests
      for information, reports or any other materials to items the Purchaser
      reasonably believes is required for compliance with Regulation AB, and shall
      not
      request information which is not required for such compliance.

    

    (b) Additional
      Representations and Warranties of the Company.

    

    (i) The
      Company shall be deemed to represent to the Purchaser and to any Depositor,
      as
      of the date on which information is first provided to the Purchaser or any
      Depositor under Section 2(c) that, except as disclosed in writing to the
      Purchaser or such Depositor prior to such date: (i)
      the Company 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 the Company; (ii)
the
      Company 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 applicable servicing criteria with respect to other securitizations
      of
      residential mortgage loans involving the Company as servicer
      has been disclosed or reported by the Company; (iv) no material
      changes to the Company’s policies or procedures with respect to the servicing
      function it will perform under this Agreement and any Reconstitution Agreement
      for mortgage loans of a type similar to the Mortgage Loans
      have occurred during the three-year period immediately preceding the related
      Securitization Transaction; (v) there are no aspects of the Company’s financial
      condition that could have a material adverse effect on the performance by
the
      Company of its servicing obligations under this Agreement or any Reconstitution
      Agreement;
      (vi) there are no material
      legal or governmental proceedings pending (or known to be contemplated) against
      the Company, any Subservicer or any Third-Party Originator;
      and (vii) there are no affiliations, relationships or transactions relating
      to
      the Company, any Subservicer or any Third-Party Originator with respect to
      any
      Securitization Transaction and any party thereto identified by the related
      Depositor of a type described in Item 1119 of Regulation AB.

    

    (ii) If
      so requested by the Purchaser or any Depositor on any date following
the
      date
      on which information is first provided to the Purchaser or any Depositor under
      Section 2(c),
      the Company shall, within five Business Days following such request, confirm
      in
      writing the accuracy of the representations and warranties set forth in
      paragraph (i) of this Section or, if any such representation and warranty is
      not
      accurate as of the date of such request, provide reasonably adequate disclosure
      of the pertinent facts, in writing, to the requesting party.

    

    (c) Information
      to Be Provided by the Company.

    

    In
      connection with any Securitization Transaction the Company shall (1) within
      five
      Business Days following request by the Purchaser or any Depositor, provide
      to
      the Purchaser and such Depositor (or, as applicable, cause each Third-Party
      Originator and each Subservicer to provide), in writing reasonably required
      for
      compliance with Regulation AB, the information and materials specified in
      paragraphs (i), (ii), (iii) and (vi) of this Section 2(c), and (2) as promptly
      as practicable following notice to or discovery by the Company, provide to
      the
      Purchaser and any Depositor (as required by Regulation AB) the information
      specified in paragraph (iv) of this Section.

    

    (i) If
      so
      requested by the Purchaser or any Depositor, the Company shall provide such
      information regarding (x) the Company, as originator of the Mortgage Loans
      (including as an acquirer of Mortgage Loans from a Qualified Correspondent,
      if
      applicable), or (y) as applicable, each Third-Party Originator, and (z) as
      applicable, each Subservicer, as is requested for the purpose of compliance
      with
      Items 1103(a)(1), 1105 (subject to paragraph (b) below), 1110, 1117 and 1119
      of
      Regulation AB. Such information shall include, at a minimum:

    

    (A) the
      originator’s form of organization;

    

    (B) to
      the
      extent material, a description of the originator’s origination program and how
      long the originator has been engaged in originating residential mortgage loans,
      which description shall include a discussion of the originator’s experience in
      originating mortgage loans of a similar type as the Mortgage Loans; if material,
      information regarding the size and composition of the originator’s origination
      portfolio; and information that may be material to an analysis of the
      performance of the Mortgage Loans, including the originators’ credit-granting or
      underwriting criteria for mortgage loans of similar type(s) as the Mortgage
      Loans and such other information as the Purchaser or any Depositor may
      reasonably request for the purpose of compliance with Item 1110(b)(2) of
      Regulation AB;

    

    (C) a
      brief
      description of any material legal or governmental proceedings pending (or known
      to be contemplated by a governmental authority) against the Company, each
      Third-Party Originator, if applicable, and each Subservicer; and 

    

    (D) a
      description of any affiliation or relationship between the Company, each
      Third-Party Originator, if applicable, each Subservicer and any of the following
      parties to a Securitization Transaction, as such parties are identified to
      the
      Company by the Purchaser or any Depositor in writing or in the related
      Reconstitution Agreement within five Business Days in advance of such
      Securitization Transaction:

    

    
      	 	
              (1)

            	
              the
                sponsor;

            
	 	
              (2)

            	
              the
                depositor;

            
	 	
              (3)

            	
              the
                issuing entity;

            
	 	
              (4)

            	
              any
                servicer;

            
	 	
              (5)

            	
              any
                trustee;

            
	 	
              (6)

            	
              any
                originator;

            
	 	
              (7)

            	
              any
                significant obligor;

            
	 	
              (8)

            	
              any
                enhancement or support provider; and

            
	 	
              (9)

            	
              any
                other material transaction party.

            

    

    

    (ii) If
      so
      requested by the Purchaser or any Depositor, and required by Regulation AB
      or as
      otherwise agreed upon by the Company, the Purchaser and/or the Depositor, the
      Company shall provide (or, as applicable, cause each Third-Party Originator
      to
      provide) Static Pool Information with respect to the mortgage loans (of a
      similar type as the Mortgage Loans, as reasonably identified by the Purchaser
      as
      provided below) originated by (a) the Company, if the Company is an originator
      of Mortgage Loans (including as an acquirer of Mortgage Loans from a Qualified
      Correspondent, if applicable), and/or (b) as applicable, each Third-Party
      Originator. Such Static Pool Information shall be prepared by the Company (or,
      if applicable, the Third-Party Originator) on the basis of its reasonable,
      good
      faith interpretation of the requirements of Item 1105(a)(1)-(3) of Regulation
      AB. To the extent that there is reasonably available to the Company (or
      Third-Party Originator, as applicable) Static Pool Information with respect
      to
      more than one mortgage loan type, the Purchaser or any Depositor shall be
      entitled to specify whether some or all of such information shall be provided
      pursuant to this paragraph. The content of such Static Pool Information may
      be
      in the form customarily provided by the Company, and need not be customized
      for
      the Purchaser or any Depositor. Such Static Pool Information for each vintage
      origination year or prior securitized pool, as applicable, shall be presented
      in
      increments no less frequently than quarterly over the life of the mortgage
      loans
      included in the vintage origination year or prior securitized pool. The most
      recent periodic increment must be as of a date no later than 135 days prior
      to
      the date of the prospectus or other offering document in which the Static Pool
      Information is to be included or incorporated by reference. The Static Pool
      Information shall be provided in an electronic format that provides a permanent
      record of the information provided, such as a portable document format (pdf)
      file, or other such electronic format.

    

    Promptly
      following notice or discovery of a material error (as determined in Company’s
      sole discretion), in Static Pool Information provided pursuant to the
      immediately preceding paragraph (including an omission to include therein
      information required to be provided pursuant to such paragraph), the Company
      shall provide corrected Static Pool Information to the Purchaser or any
      Depositor, as applicable, in the same format in which Static Pool Information
      was previously provided to such party by the Company.

    

    If
      so
      requested by the Purchaser or any Depositor, the Company shall provide (or,
      as
      applicable, cause each Third-Party Originator to provide), at the expense of
      the
      requesting party (to the extent of any additional incremental expense associated
      with delivery pursuant to this Agreement), agreed-upon procedures letters of
      certified public accountants pertaining
      to Static Pool Information relating to prior securitized pools for
      securitizations closed on or after January 1, 2006 or, in the case of Static
      Pool Information with respect to the Company’s or, if applicable, Third-Party
      Originator’s originations or purchases, to calendar months commencing January 1,
      2006,
      as the
      Purchaser or such Depositor shall reasonably request. Such statements and
      letters shall be addressed to and be for the benefit of such parties as the
      Purchaser or such Depositor shall designate, which shall be limited to any
      Sponsor, any Depositor, any broker dealer acting as underwriter, placement
      agent
      or initial purchaser with respect to a Securitization Transaction or any other
      party that is reasonably and customarily entitled to receive such statements
      and
      letters in a Securitization Transaction. Any such statement or letter may take
      the form of a standard, generally applicable document accompanied by a reliance
      letter authorizing reliance by the addressees designated by the Purchaser or
      such Depositor.

    

    (iii) If
      reasonably requested by the Purchaser or any Depositor, the Company shall
      provide such information regarding the Company, as servicer of the Mortgage
      Loans, and each Subservicer (each of the Company and each Subservicer, for
      purposes of this paragraph, a “Servicer”), as is reasonably requested for the
      purpose of compliance with Item 1108 of Regulation AB. Such information shall
      include, at a minimum:

    

    (A) the
      Servicer’s form of organization;

     

    (B) a
      description of how long the Servicer has been servicing residential mortgage
      loans; a general discussion of the Servicer’s experience in servicing assets of
      any type as well as a more detailed discussion of the Servicer’s experience in,
      and procedures for, the servicing function it will perform under this Agreement
      and any Reconstitution Agreements; information regarding the size, composition
      and growth of the Servicer’s portfolio of residential mortgage loans of a type
      similar to the Mortgage Loans and information on factors related to the Servicer
      that may be material, in the reasonable determination of the Purchaser or any
      Depositor, to any analysis of the servicing of the Mortgage Loans or the related
      asset-backed securities, as applicable, including, without
      limitation:

     

    (1) whether
      any prior securitizations of mortgage loans of a type similar to the Mortgage
      Loans involving the Servicer have defaulted or experienced an early amortization
      or other performance triggering event because of servicing during the three-year
      period immediately preceding the related Securitization
      Transaction;

    (2) the
      extent of outsourcing the Servicer utilizes;

    (3) whether
      there has been previous disclosure of material noncompliance with the applicable
      servicing criteria with respect to other securitizations of residential mortgage
      loans involving the Servicer as a servicer during the three-year period
      immediately preceding the related Securitization Transaction;

    (4) whether
      the Servicer has 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; and

    (5) such
      other information as the Purchaser or any Depositor may reasonably request
      for
      the purpose of compliance with Item 1108(b)(2) of Regulation AB;

     

    (C) a
      description of any material changes during the three-year period immediately
      preceding the related Securitization Transaction to the Servicer’s policies or
      procedures with respect to the servicing function it will perform under this
      Agreement and any Reconstitution Agreements for mortgage loans of a type similar
      to the Mortgage Loans;

     

    (D) information
      regarding the Servicer’s financial condition, to the extent that there is a
      material risk that an adverse financial event or circumstance involving the
      Servicer could have a material adverse effect on the performance by the Company
      of its servicing obligations under this Agreement or any Reconstitution
      Agreement;

     

    (E) information
      regarding advances made by the Servicer on the Mortgage Loans and the Servicer’s
      overall servicing portfolio of residential mortgage loans for the three-year
      period immediately preceding the related Securitization Transaction, which
      may
      be limited to a statement by an authorized officer of the Servicer to the effect
      that the Servicer has made all advances required to be made on residential
      mortgage loans serviced by it during such period, or, if such statement would
      not be accurate, information regarding the percentage and type of advances
      not
      made as required, and the reasons for such failure to advance;

     

    (F) a
      description of the Servicer’s processes and procedures designed to address any
      special or unique factors involved in servicing loans of a similar type as
      the
      Mortgage Loans;

    

    (G) a
      description of the Servicer’s processes for handling delinquencies, losses,
      bankruptcies and recoveries, such as through liquidation of mortgaged
      properties, sale of defaulted mortgage loans or workouts; and

    

    (H) information
      as to how the Servicer defines or determines delinquencies and charge-offs,
      including the effect of any grace period, re-aging, restructuring, partial
      payments considered current or other practices with respect to delinquency
      and
      loss experience.

    

    (iv) For
      the
      purpose of satisfying its reporting obligation under the Exchange Act with
      respect to any class of asset-backed securities, the Company shall (or shall
      cause each Subservicer and, if applicable, any Third-Party Originator to) (a)
      provide notice within two (2) Business Days to the Purchaser, any Master
      Servicer and any Depositor in writing of (1) any merger, consolidation or sale
      of substantially all of the assets of the Company, (2) the Company’s entry into
      an agreement with a Subservicer to perform or assist in the performance of
      any
      of the Company’s obligations under the Agreement or any Reconstitution Agreement
      that qualifies as an “entry into a material definitive agreement” under Item
      1.01 of the form 8-K, and (b) provide prompt notice to the Purchaser, the Master
      Servicer and the Depositor of (1) any Event of Default under the terms of the
      Agreement or any Reconstitution Agreement to the extent not known by such
      Purchaser, Master Servicer or Depositor, and (2) any material litigation or
      governmental proceedings involving the Company, any Subservicer or any Third
      Party Originator.

    

    (v) To
      the
      extent the Purchaser or any Depositor does not itself have an affiliation or
      relationship required to be disclosed under Item 1119 of Regulation AB that
      develops following the closing date of a Securitization Transaction, the Company
      shall provide to the Purchaser and any Depositor a description of any such
      affiliation or relationship involving the Company, any Subservicer or any
      Third-Party Originator no later than 15 calendar days prior to the date the
      Depositor is required to file its Form 10-K disclosing such affiliation or
      relationship. For purposes of the foregoing, the Company (1) shall be entitled
      to assume that the parties to the Securitization Transaction with whom
      affiliations or relations must be disclosed are the same as on the closing
      date
      if it provides a written request (which may be by e-mail) to the Depositor
      or
      Master Servicer, as applicable, requesting such confirmation and either obtains
      such confirmation or receives no response within three (3) Business Days, (2)
      shall not be obligated to disclose any affiliations or relationships that may
      develop after the closing date for the Securitization Transaction with any
      parties not identified to the Company pursuant to clause (D) of paragraph (i)
      of
      this Section 2(c), and (3) shall be entitled to rely upon any written
      identification of parties provided by the Depositor, the Purchaser or any master
      servicer.

    

    

    (v) As
      a
      condition to the succession to the Company or any Subservicer as servicer or
      subservicer under this Agreement or any applicable Reconstitution Agreement
      related thereto by any Person (i) into which the Company or such Subservicer
      may
      be merged or consolidated, or (ii) which may be appointed as a successor to
      the
      Company or any Subservicer, the Company shall provide to the Purchaser, any
      Master Servicer, and any Depositor, at least 15 calendar days prior to the
      effective date of such succession or appointment, (x) written notice to the
      Purchaser and any Depositor of such succession or appointment and (y) in
      writing, all information reasonably requested by the Purchaser or any Depositor
      in order to comply with its reporting obligation under Item 6.02 of Form 8-K
      with respect to any class of asset-backed securities.

    

    (vi) Not
      later
      than ten days prior to the deadline for the filing of any distribution report
      on
      Form 10-D in respect of any Securitization Transaction that includes any of
      the
      Mortgage Loans serviced by the Company, the Company shall, to the extent the
      Company has knowledge, provide to the party responsible for filing such report
      (including, if applicable, the Master Servicer) notice of the occurrence of
      any
      of the following events along with all information, data, and materials related
      thereto as may be required to be included in the related distribution report
      on
      Form 10-D (as specified in the provisions of Regulation AB referenced
      below):

     

    (a) any
      material modifications, extensions or waivers of Mortgage Loan terms, fees,
      penalties or payments during the distribution period or that have cumulatively
      become material over time (Item 1121(a)(11) of Regulation AB);

     

    (b) material
      breaches of Mortgage Loan representations or warranties or transaction covenants
      under the Existing Agreement, as amended herein (Item 1121(a)(12) of Regulation
      AB): and 

     

    (c) information
      regarding any Mortgage Loan changes (such as, additions, substitutions or
      repurchases) and any
      material changes in origination, underwriting, or other criteria for acquisition
      or selection of pool assets (Item 1121(a)(14) of Regulation AB).

    

    (vii) In
      addition to such information as the Company, as servicer, is obligated to
      provide pursuant to other provisions of this Agreement, if reasonably requested
      by the Purchaser or any Depositor, the Company shall provide such information
      which is available to the Company, regarding the servicing of the Mortgage
      Loans
      as is reasonably required to facilitate preparation of distribution reports
      in
      accordance with Item 1121 of Regulation AB.

    

    (d) Servicer
      Compliance Statement.

    

    On
      or
      before March 5 of each calendar year, commencing in 2007, the Company shall
      deliver to the Purchaser and any Depositor a statement of compliance addressed
      to the Purchaser and such Depositor and signed by an authorized officer of
      the
      Company, to the effect that (i) a review of the Company’s servicing activities
      during the immediately preceding calendar year (or applicable portion thereof)
      and of its performance under the servicing provisions of this Agreement and
      any
      applicable Reconstitution Agreement during such period has been made under
      such
      officer’s supervision, and (ii) to the best of such officers’ knowledge, based
      on such review, the Company has fulfilled all of its servicing obligations
      under
      this Agreement and any applicable Reconstitution Agreement in all material
      respects throughout such calendar year (or applicable portion thereof) or,
      if
      there has been a failure to fulfill any such obligation in any material respect,
      specifically identifying each such failure known to such officer and the nature
      and the status thereof.

    

    (e) Report
      on Assessment of Compliance and Attestation.

    

    (i) On
      or
      before March 5 of each calendar year, commencing in 2007, the Company
      shall:

    

    (A) deliver
      to the Purchaser and any Depositor a report regarding the Company’s assessment
      of compliance with the Servicing Criteria during the immediately preceding
      calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange Act
      and
      Item 1122 of Regulation AB. Such report shall be addressed to the Purchaser
      and
      such Depositor and signed by an authorized officer of the Company, and shall
      address each of the applicable Servicing Criteria specified on a certification
      substantially in the form of Exhibit A hereto (wherein “investor” shall mean the
      Master Servicer) delivered to the Purchaser concurrently with the execution
      of
      this Agreement;

    

    (B) deliver
      to the Purchaser and any Depositor a report of a registered public accounting
      firm that attests to, and reports on, the assessment of compliance made by
      the
      Company and delivered pursuant to the preceding paragraph. Such attestation
      shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X
      under
      the Securities Act and the Exchange Act;

    

    (C) if
      required by Regulation AB, cause each Subservicer and each Subcontractor
      determined by the Company pursuant to Section 2(f)(ii) to be “participating in
      the servicing function” within the meaning of Item 1122 of Regulation AB (each,
      a “Participating Entity”), to deliver to the Purchaser and any Depositor an
      assessment of compliance and accountants’ attestation as and when provided in
      paragraphs (A) and (B) of this Section 2(e)(i); and

    

    (D) deliver
      or, if required by Regulation AB, cause each Subservicer and Subcontractor
      described in Section 2(e)(i)(C) above to deliver to the Purchaser, Depositor
      or
      any other Person that will be responsible for signing the certification (a
      “Sarbanes Certification”) required by Rules 13a-14(d) and 15d-14(d) under the
      Exchange Act (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) on
      behalf of an asset-backed issuer with respect to a Securitization Transaction
      a
      certification, signed by the appropriate officer of the Company, in the form
      attached hereto as Exhibit B; provided that such certification delivered by
      the
      Company may not be filed as an exhibit to, or included in, any filing with
      the
      Commission.

    

    The
      Company acknowledges that the party identified in clause (i)(D) above may rely
      on the certification provided by the Company pursuant to such clause in signing
      a Sarbanes Certification and filing such with the Commission. Neither the
      Purchaser nor any Depositor will request deliver of a certification under clause
      (D) above unless the Purchaser, Depositor or any other Person is required under
      the Exchange Act to file an annual report on Form 10-K with respect to an
      issuing entity whose asset pool includes Mortgage Loans.

    

    (ii) Each
      assessment of compliance provided by a Subservicer pursuant to Section
      2(e)(i)(A) shall address each of the applicable Servicing Criteria specified
      on
      a certification substantially in the form of Exhibit A hereto delivered to
      the
      Purchaser concurrently with the execution of this Agreement or, in the case
      of a
      Subservicer subsequently appointed as such, on or prior to the date of such
      appointment. An assessment of compliance provided by a Participating Entity
      pursuant to Section 2(e)(i)(C) need not address any elements of the Servicing
      Criteria other than those specified by the Company pursuant to Section
      2(f).

    

    (iii) If
      reasonably requested by the Purchaser or any Depositor, the Company shall
      provide to the Purchaser, any Master Servicer or any Depositor, evidence of
      the
      authorization of the person signing any certification or statement pursuant
      to
      Section 2(d) or 2(e) of this Agreement.

    

    (f) Use
      of
      Subservicers and Subcontractors.

    

    The
      Company shall not hire or otherwise utilize the services of any Subservicer
      to
      fulfill any of the obligations of the Company as servicer under this Agreement
      or any related Reconstitution Agreement unless the Company complies with the
      provisions of paragraph (i) of this Subsection (f). The Company shall not hire
      or otherwise utilize the services of any Subcontractor, and shall not permit
      any
      Subservicer to hire or otherwise utilize the services of any Subcontractor,
      to
      fulfill any of the obligations of the Company as servicer under this Agreement
      or any related Reconstitution Agreement unless the Company complies with the
      provisions of paragraph (ii) of this Subsection (f).

    

    (i) It
      shall
      not be necessary for the Company to seek the consent of the Purchaser or any
      Depositor to the utilization of any Subservicer. If required by Regulation
      AB,
      the Company shall cause any Subservicer used by the Company (or by any
      Subservicer) for the benefit of the Purchaser and any Depositor to comply with
      the provisions of this Section and with Sections 2(b), 2(c)(iii), 2(c)(v),
      2(d),
      and 2(e) of this Agreement , and to provide the information required with
      respect to such Subservicer under Section 2(c)(iv) of this Agreement. The
      Company shall be responsible for obtaining from each Subservicer and delivering
      to the Purchaser and any Depositor any servicer compliance statement required
      to
      be delivered by such Subservicer under Section 2(d), any assessment of
      compliance and attestation required to be delivered by such Subservicer under
      Section 2(e) and any certification required to be delivered to the Person that
      will be responsible for signing the Sarbanes Certification under Section 2(e)
      as
      and when required to be delivered.

    

    (ii) It
      shall
      not be necessary for the Company to seek the consent of the Purchaser or any
      Depositor to the utilization of any Subcontractor. If required by Regulation
      AB,
      the Company shall promptly upon request provide to the Purchaser and any
      Depositor (or any designee of the Depositor, such as a master servicer or
      administrator) a written description of the role and function of each
      Subcontractor utilized by the Company or any Subservicer, specifying (A) the
      identity of each such Subcontractor, (B) which (if any) of such Subcontractors
      are Participating Entities, and (C) which elements of the Servicing Criteria
      will be addressed in assessments of compliance provided by each Participating
      Entity identified pursuant to clause (B) of this paragraph.

    

    The
      Company shall cause any such Participating Entity used by the Company (or by
      any
      Subservicer) for the benefit of the Purchaser and any Depositor to comply with
      the provisions of Section 2(e) of this Agreement. The Company shall be
      responsible for obtaining from each Participating Entity and delivering to
      the
      Purchaser and any Depositor any assessment of compliance and attestation and
      certificate required to be delivered by such Participating Entity under Section
      2(e), in each case as and when required to be delivered.

    

    (g) Indemnification;
      Remedies.
      

    

    (i) The
      Company
      shall
      indemnify the Purchaser and each of the following parties participating
      in a Securitization Transaction: each
      sponsor and issuing entity; each Person responsible for the execution or filing
      of any report required to be filed with the Commission with respect to such
      Securitization Transaction, or for execution of a certification pursuant to
      Rule
      13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
      Securitization Transaction; each Person who controls any of such parties
      (within
      the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
      Act);
      and the
      respective present and former directors, officers and employees of each of
      the
      foregoing and of the Depositor, and shall hold each of them harmless from and
      against any losses, damages, penalties, fines, forfeitures, legal fees and
      expenses and related costs, judgments, and any other costs, fees and expenses
      that any of them may sustain arising out of or based upon:

    

    (A)(1) any
      untrue statement of a material fact contained or alleged to be contained in
      any
      written information, written report, certification or other material
      provided
under
      this Amendment Reg AB
      by or on
      behalf of the Company,
      or provided under this Amendment Reg AB by or on behalf of any Subservicer,
      Participating Entity or, if applicable, Third-Party Originator (collectively,
      the “Company Information”),
      or (2)
      the omission or alleged omission to state in the Company Information a material
      fact required to be stated in the Company Information or necessary in order
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading; provided,
      by way of clarification,
      that
      clause (2) of this paragraph shall be construed solely by reference to the
      Company Information and not to any other information communicated in connection
      with a sale or purchase of securities, without regard to whether the Company
      Information or any portion thereof is presented together with or separately
      from
      such other information;

    

    (B) any
      failure by the Company, any Subservicer, any Participating Entity or any
Third-Party
      Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Amendment Reg AB,
      including any failure by the Company to identify pursuant to Section 2(f)(ii)
      any Participating Entity; or

    

    (C) any
      breach by the Company of a representation or warranty set forth in Section
      2(b)(i) or in a writing furnished pursuant to Section 2(b)(ii) and made as
      of a
      date prior to the closing date of the related Securitization Transaction, to
      the
      extent that such breach is not cured by such closing date, or any breach by
      the
      Company of a representation or warranty in a writing furnished pursuant to
      Section 2(b)(ii) to the extent made as of a date subsequent to such closing
      date.

    

    In
      the
      case of any failure of performance described in clause (i)(B) of this Section,
      the Company shall promptly reimburse the Purchaser, any Depositor, as
      applicable, and each Person responsible for the execution or filing of any
      report required to be filed with the Commission with respect to such
      Securitization Transaction, or for execution of a certification pursuant to
      Rule
      13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
      Securitization 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 Company, any
      Subservicer, any Participating Entity or any Third-Party
      Originator.

    

    (ii) (A) Any
      failure by the Company, any Subservicer, any Participating Entity or any
Third-Party
      Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Amendment Reg AB ,
      which continues unremedied for three Business Days after receipt by the Company
      and the applicable Subservicer, Subcontractor, or Third-Party Originator of
      written notice of such failure from the Purchaser or Depositor shall, except
      as
      provided in clause (B) of this paragraph, constitute an Event of Default with
      respect to the Company under this Agreement and any applicable Reconstitution
      Agreement, and shall entitle the Purchaser or Depositor, as applicable, in
      its
      sole discretion to terminate the rights and obligations of the Company as
      servicer under this Agreement and/or any applicable Reconstitution Agreement
      related thereto without payment (notwithstanding anything in this Agreement
      or
      any applicable Reconstitution Agreement related thereto to the contrary) of
      any
      compensation to the Company (and if the Company is servicing any of the Mortgage
      Loans in a Securitization Transaction, appoint a successor servicer reasonably
      acceptable to any Master Servicer for such Securitization Transaction);
provided,
      however
      it is
      understood that the Company shall retain any rights pursuant to which it may
      be
      entitled to receive reimbursement for unreimbursed Monthly Advances and
      Servicing Advances made by the Company under this Agreement and/or any
      applicable Reconstitution Agreement. Notwithstanding anything to the contrary
      set forth herein, to the extent that any provision of this Agreement and/or
      any
      applicable Reconstitution Agreement expressly provides for the survival of
      certain rights or obligations following termination of the Company as servicer,
      such provision shall be given effect.

    

    (B) Any
      failure by the Company, any Subservicer or any Participating Entity to
      deliver any information, report, certification or accountants’ letter required
      under Regulation AB when and as required under Section 2(d) or 2(e), including
      any failure by the Company to identify a Participating Entity, which continues
      unremedied for ten calendar days after the date on which such information,
      report, certification or accountants’ letter was required to be delivered shall
      constitute an Event of Default with respect to the Company under this Agreement
      and any applicable Reconstitution Agreement, and shall entitle the Purchaser
      or
      Depositor, as applicable, in its sole discretion to terminate the rights and
      obligations of the Company as servicer under this Agreement and/or any
      applicable Reconstitution Agreement without payment (notwithstanding anything
      in
      this Agreement to the contrary) of any compensation to the Company; provided, however
      it is
      understood that the Company shall retain any rights pursuant to which it may
      be
      entitled to receive reimbursement for unreimbursed Monthly Advances and
      Servicing Advances made by the Company under this Agreement and/or any
      applicable Reconstitution Agreement. Notwithstanding anything to the contrary
      set forth herein, to the extent that any provision of this Agreement and/or
      any
      applicable Reconstitution Agreement expressly provides for the survival of
      certain rights or obligations following termination of the Company as servicer,
      such provision shall be given effect.

    

    (C) The
      Company shall promptly reimburse the Purchaser (or any affected designee of
      the
      Purchaser, such as a master servicer) and any Depositor, as applicable, for
      all
      reasonable expenses incurred by the Purchaser (or such designee) or such
      Depositor as such are incurred, in connection with the termination of the
      Company as servicer and the transfer of servicing of the Mortgage Loans to
      a
      successor servicer. The provisions of this paragraph shall not limit whatever
      rights the Company, the Purchaser or any Depositor may have under other
      provisions of this Agreement and/or any applicable Reconstitution Agreement
      or
      otherwise, whether in equity or at law, such as an action for damages, specific
      performance or injunctive relief.

    

    (iii) The
      Purchaser agrees to indemnify and hold harmless the Company, any Subservicer,
      any Participating Entity, and, if applicable, any Third-Party Originator,
each
      Person who controls any of such parties (within
      the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
      Act), and the
      respective present and former directors, officers and employees of each of
      the
      foregoing from and against any losses, damages, penalties, fines, forfeitures,
      legal fees and expenses and related costs, judgments, and any other costs,
      fees
      and expenses that any of them may sustain arising out of or based upon
any
      untrue statement or alleged untrue statement of any material fact contained
      in
      any filing with the Commission with respect to a Securitization Transaction
      or
      the omission or alleged omission to state in any filing with the Commission
      with
      respect to a Securitization Transaction
      a
      material fact required to be stated or necessary to be stated in order to make
      the statements therein, in the light of the circumstances under which they
      were
      made, not misleading,
      in each
      case to the extent, but only to the extent, that such untrue statement, alleged
      untrue statement, omission, or alleged omission relates to any filing with
      the
      Commission with respect to a Securitization Transaction other than the Company
      Information.

    

    (iv) If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the indemnified party, then the indemnifying party agrees that it
      shall
      contribute to the amount paid or payable by such indemnified party as a result
      of any claims, losses, damages or liabilities uncured by such indemnified party
      in such proportion as is appropriate to reflect the relative fault of such
      indemnified party on the one hand and the indemnifying party on the
      other.

    

    (v) This
      indemnification shall survive the termination of this Amendment Reg AB or the
      termination of any party to this Amendment Reg AB.

    

    3.  Notwithstanding
      any other provision of this Amendment Reg AB, the Company shall seek the consent
      of the Purchaser for the utilization of all Subservicers and Participating
      Entities, when required by and in accordance with the terms of the Existing
      Agreement.

     

    4.  The
      Existing Agreement is hereby amended by adding the Exhibits attached hereto
      as
      Exhibit A and Exhibit B to the end thereto. References in this Amendment Reg
      AB
      to “this Agreement” or words of similar import (including indirect references to
      the Agreement) shall be deemed to be references to the Existing Agreement as
      amended by this Amendment Reg AB. Except as expressly amended and modified
      by
      this Amendment Reg AB, the Agreement shall continue to be, and shall remain,
      in
      full force and effect in accordance with its terms. In the event of a conflict
      between this Amendment Reg AB and any other document or agreement, including
      without limitation the Existing Agreement, this Amendment Reg AB shall
      control.

     

    5. All
      notification pursuant to Section 2(c)(iv) should be sent to:

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067-3884

    Attention:
      Conduit Seller Approval Dept.

    Facsimile:
      (214) 626-3751

    Email:
      sellerapproval@bear.com

    

    With
      a
      copy to:

    

    Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue, 3rd Floor

    New,
      York, NY 10179

    Attention:
      Global Credit Administration

    Facsimile:
      (212) 272-6564

    

    All
      notification pursuant to Section 2(c)(iv)(4) should be sent to:

    

    EMC
      Mortgage Corporation

    Two
      Mac
      Arthur Ridge

    909
      Hidden Ridge Drive, Suite 200

    Irving,
      TX 75038

    Attention:
      Associate General Counsel for Loan Administration

    Facsimile:
      (972) 831-2555

    

    With
      copies to:

    

    Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue, 3rd Floor

    New,
      York, NY 10179

    Attention:
      Global Credit Administration

    Facsimile:
      (212) 272-6564

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067-3884

    Attention:
      Conduit Seller Approval Dept.

    Facsimile:
      (214) 626-3751

    Email:
      sellerapproval@bear.com

    

    All
      notifications to any Master Servicer, to the extent such “Master Servicer” is
      Wells Fargo, should be sent to:

    

    UPS/FedEx
      Delivery: 

    

    9062
      Old
      Annapolis Road

    Columbia,
      MD 21045

    Attention:
      Corporate Trust Group, [Insert Deal Name]

    

    USPS
      Delivery: 

    

    P.O.
      Box
      98

    Columbia,
      MD 21046

    Attention:
      Corporate Trust Group, [Insert Deal Name]

     

    6. This
      Amendment Reg AB shall be governed by and construed in accordance with the
      laws
      of the State of New York without reference to its conflict of laws provisions
      (other than Section 5-1401 of the General Obligation Law), and the obligations,
      rights and remedies of the parties hereunder shall be determined accordance
      with
      such laws.

     

    7. This
      Amendment Reg AB may be executed in one or more counterparts and by different
      parties hereto on separate counterparts, each of which, when so executed, shall
      constitute one and the same agreement. This Amendment Reg AB will become
      effective as of the date first mentioned above. This
      Amendment Reg AB shall bind and inure to the benefit of and be enforceable
      by
      the Company and the Purchaser and the respective permitted successors and
      assigns of the Company and the successors and assigns of the
      Purchaser.

     

     

    

     

    [Signature
      Page Follows]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have caused their names to be signed hereto by
      their respective officers thereunto duly authorized as of the day and year
      first
      above written.

     

    
      	
              EMC
                MORTGAGE CORPORATION

               

              Purchaser

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	 
	 
	
              COUNTRYWIDE
                HOME LOANS, INC.

               

              Company

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

    

     

     

    

     

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

    

    SERVICING
      CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

    

    The
      assessment of compliance to be delivered by [the Company] [Name of Subservicer]
      shall address, at a minimum, the applicable criteria identified below as
“Applicable Servicing Criteria”:

    

    
      	
              Servicing
                Criteria 

            	
              Applicable
                Servicing Criteria

            
	
              Reference

            	
              Criteria

            	
               

            
	
               

            	
              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

            
	
              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

            
	
              1122(d)(1)(iii)

            	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the mortgage loans 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

            
	
               

            	
              Cash
                Collection and Administration

            	 
	
              1122(d)(2)(i)

            	
              Payments
                on mortgage loans 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

            
	
              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

            
	
              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

            
	
              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of overcollateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	
              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

            
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	
              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

            
	
               

            	
              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 mortgage loans serviced by the
                Servicer.

            	
              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

            
	
              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

            
	
              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

            
	
               

            	
              Pool
                Asset Administration

            	 
	
              1122(d)(4)(i)

            	
              Collateral
                or security on mortgage loans is maintained as required by the transaction
                agreements or related mortgage loan documents.

            	
              X

            
	
              1122(d)(4)(ii)

            	
              Mortgage
                loan and related documents are safeguarded as required by the transaction
                agreements

            	
              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 mortgage loans, including any payoffs, made in accordance with
                the
                related mortgage loan 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 mortgage loan documents.

            	
              X

            
	
              1122(d)(4)(v)

            	
              The
                Servicer’s records regarding the mortgage loans 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 mortgage loans
                (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
                mortgage
                loan 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 mortgage loans 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 mortgage loans with variable
                rates are computed based on the related mortgage loan
                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 mortgage loan
                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 mortgage loan
                documents and state laws; and (C) such funds are returned to the
                obligor
                within 30 calendar days of full repayment of the related mortgage
                loans,
                or such other number of days specified in the transaction
                agreements.

            	
              X

            
	
              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

            
	
              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.

            	 

    

     

    
 

    
      	
              [NAME
                OF COMPANY] [NAME OF SUBSERVICER]

               

            
	
              Date:

            	 
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

    

    

    EXHIBIT
      B

     

    FORM
      OF
      ANNUAL CERTIFICATION

     

    
      	Re:  	
              The
                [ ] agreement dated as of [ ],
                200[ ] (the “Agreement”), among [IDENTIFY
                PARTIES]

            

    

     

    I,
      ________________________________, the _______________________ of Countrywide
      Home Loans, Inc., certify to [the Purchaser], [the Depositor], [Master
      Servicer], [Securities Administrator] or [Trustee], and its officers, with
      the
      knowledge and intent that they will rely upon this certification,
      that:

     

    (1) I
      have
      reviewed the servicer compliance statement of the Company 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 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 the Company
      during 200[ ] that were delivered by the Company to the [Depositor] [Master
      Servicer] [Securities Administrator] or [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] [Master
      Servicer] [Securities Administrator] or [Trustee];

     

    (4) I
      am
      responsible for reviewing the activities performed by the Company as servicer
      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
      Company has fulfilled its obligations under the Agreement; and

     

    

    [Intentionally
      Left Blank]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (5) The
      Compliance Statement required to be delivered by the Company pursuant to this
      Agreement, and the Servicing Assessment and Attestation Report required to
      be
      provided by the Company and by each Subservicer and Participating Entity
      pursuant to the Agreement, have been provided to the [Depositor] [Master
      Servicer]. Any material instances of noncompliance described in such reports
      have been disclosed to the [Depositor] [Master Servicer]. Any material instance
      of noncompliance with the Servicing Criteria has been disclosed in such
      reports.

     

    
 

    
      	
              Date:

            	 
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

     

     

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      J-1

    

    EMC
      ASSIGNMENT AGREEMENT

     

     

    ASSIGNMENT,
      ASSUMPTION AND RECOGNITION AGREEMENT

     

    This
      Assignment, Assumption and
      Recognition Agreement (the “AAR Agreement”) is made and entered into as of
      August 31, 2007 (the “Closing Date”), among Structured Asset Mortgage
      Investments II Inc. (the “Assignor”), U.S. Bank National Association, not individually but
      solely as trustee
      for the holders of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
      Series 2007-3 (the
“Assignee”) and EMC Mortgage Corporation
      (the “Company”).

    

    Whereas,
      the Assignor and the Company
      entered into that certain Servicing Agreement, dated as of August 1, 2007 (the
      “Servicing Agreement”), pursuant to which the Company agreed to service certain
      mortgage loans (the “Mortgage Loans”) on behalf of the
      Assignor.

    

    In
      consideration of the mutual promises
      and agreements contained herein, and for other good and valuable consideration,
      the receipt and sufficiency of which are hereby acknowledged, the parties hereto
      agree that the Mortgage Loans listed on Attachment 1
      annexed hereto (the “Assigned Loans”)
      shall be subject to the terms of this AAR Agreement.  Any capitalized
      term used and not otherwise defined herein shall have the meaning assigned
      to
      such term in the Servicing Agreement.

    

    Assignment
      and Assumption

     

    1.  Except
      as
      expressly provided for herein, the Assignor hereby grants, transfers and assigns
      to the Assignee all of its right, title and interest as in, to and under the
      Assigned Loans, and as they relate to the Assigned Loans, the Servicing
      Agreement.  Notwithstanding anything to the contrary contained herein,
      the Assignor is not assigning to the Assignee any of its right, title and
      interest in, to and under the Servicing Agreement with respect to any other
      mortgage loan other than the Assigned Loans.  Except as is otherwise
      expressly provided herein, the Assignor makes no representations, warranties
      or
      covenants to the Assignee and the Assignee acknowledges that the Assignor has
      no
      obligations to the Assignee under the terms of the Servicing Agreement or
      otherwise relating to the transaction contemplated herein (including, but not
      limited to, any obligation to indemnify the Assignee).

     

    The
      Assignor acknowledges and agrees
      that upon execution of this AAR Agreement, with respect to the Assigned Loans,
      the Assignee shall become the “Owner” under the Servicing Agreement, and all
      representations, warranties and covenants by the “Servicer” to the “Owner” under
      the Servicing Agreement including, but not limited to, the rights to receive
      indemnification, shall accrue to the Assignee by virtue of this AAR
      Agreement.

     

    Representations,
      Warranties and Covenants

     

    2.  The
      Assignor warrants and represents to, and covenants with, the Assignee and the
      Company as of the date hereof that:

     

    
      	
              a.  

            	
              Attached
                hereto as Attachment 2 is a true and correct copy of the Servicing
                Agreement, which Servicing Agreement is in full force and effect
                as of the
                date hereof and the provisions of which have not been waived, amended
                or
                modified in any respect, nor has any notice of termination been given
                thereunder;

            

    

     

    
      	
              b.  

            	
              The
                Assignor was the lawful owner of the Assigned Loans with full right
                to
                transfer the Assigned Loans and any and all of its interests, rights
                and
                obligations under the Servicing Agreement they relate to the Assigned
                Loans, free and clear from any and all claims and encumbrances; and
                upon
                the transfer of the Assigned Loans to the Assignee as contemplated
                herein,
                the Assignee shall have good title to each and every Assigned Loan,
                as
                well as any and all of the Assignee’s interests, rights and obligations
                under the Servicing Agreement as they relate to the Assigned Loans,
                free
                and clear of any and all liens, claims and
                encumbrances;

            

    

     

    
      	
              c.  

            	
              There
                are no offsets, counterclaims or other defenses available to the
                Company
                with respect to the Servicing
                Agreement;

            

    

     

    
      	
              d.  

            	
              The
                Assignor has no knowledge of, and has not received notice of, any
                waivers
                under, or any modification of, any Assigned
                Loan;

            

    

     

    
      	
              e.  

            	
              The
                Assignor is duly organized, validly existing and in good standing
                under
                the laws of the jurisdiction of its incorporation, and has all requisite
                power and authority to acquire, own and sell the Assigned
                Loans;

            

    

     

    
      	
              f.  

            	
              The
                Assignor has full corporate power and authority to execute, deliver
                and
                perform its obligations under this AAR Agreement, and to consummate
                the
                transactions set forth herein. The consummation of the transactions
                contemplated by this AAR Agreement is in the ordinary course of the
                Assignor’s business and will not conflict with, or result in a breach of,
                any of the terms, conditions or provisions of the Assignor’s charter or
                by-laws or any legal restriction, or any material agreement or instrument
                to which the Assignor is now a party or by which it is bound, or
                result in
                the violation of any law, rule, regulation, order, judgment or decree
                to
                which the Assignor or its property is subject. The execution, delivery
                and
                performance by the Assignor of this AAR Agreement and the consummation
                by
                it of the transactions contemplated hereby, have been duly authorized
                by
                all necessary corporate action on part of the Assignor. This AAR
                Agreement
                has been duly executed and delivered by the Assignor and, upon the
                due
                authorization, execution and delivery by the Assignee and the parties
                hereto, will constitute the valid and legally binding obligation
                of the
                Assignor enforceable against the Assignor in accordance with its
                terms
                except as enforceability may be limited by bankruptcy, reorganization,
                insolvency, moratorium or other similar laws now or hereafter in
                effect
                relating to creditors’ rights generally, and by general principles of
                equity regardless of whether enforceability is considered in a proceeding
                in equity or at law;

            

    

     

    
      	
              g.  

            	
              No
                consent, approval, order or authorization of, or declaration, filing
                or
                registration with, any governmental entity is required to be obtained
                or
                made by the Assignor in connection with the execution, delivery or
                performance by the Assignor of this AAR Agreement, or the consummation
                by
                it of the transactions contemplated hereby. Neither the Assignor
                nor
                anyone acting on its behalf has offered, transferred, pledged, sold
                or
                otherwise disposed of the Assigned Loans or any interest in the Assigned
                Loans, or solicited any offer to buy or accept a transfer, pledge
                or other
                disposition of the Assigned Loans, or any interest in the Assigned
                Loans
                or otherwise approached or negotiated with respect to the Assigned
                Loans,
                or any interest in the Assigned Loans 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 which would constitute a
                distribution of the Assigned Loans under the Securities Act of 1933,
                as
                amended (the “1933 Act”) or which would render the disposition of the
                Assigned Loans a violation of Section 5 of the 1933 Act or require
                registration pursuant thereto; and

            

    

     

    
      	
               

            	
                
                h.

            	
              There
                is no action, suit, proceeding, investigation or litigation pending
                or, to
                the Assignor's knowledge, threatened, which either in any instance
                or in
                the aggregate, if determined adversely to the Assignor, would adversely
                affect the Assignor's execution or delivery of, or the enforceability
                of,
                this AAR Agreement, or the Assignor's ability to perform its obligations
                under this AAR Agreement.

            

    

     

    3.  The
      Assignee warrants and represents to, and covenants with, the Assignor and the
      Company as of the date hereof that:

     

    
      	
              a.  

            	
              The
                Assignee is duly organized, validly existing and in good standing
                under
                the laws of the jurisdiction of its organization and has all requisite
                power and authority to hold the Assigned Loans as trustee on behalf
                of the
                holders of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
                Series 2007-3;

            

    

     

    
      	
              b.  

            	
              The
                Assignee has full corporate power and authority to execute, deliver
                and
                perform its obligations under this AAR Agreement, and to consummate
                the
                transactions set forth herein. The consummation of the transactions
                contemplated by this AAR Agreement is in the ordinary course of the
                Assignee’s business and will not conflict with, or result in a breach of,
                any of the terms, conditions or provisions of the Assignee’s charter or
                by-laws or any legal restriction, or any material agreement or instrument
                to which the Assignee is now a party or by which it is bound, or
                result in
                the violation of any law, rule, regulation, order, judgment or decree
                to
                which the Assignee or its property is subject. The execution, delivery
                and
                performance by the Assignee of this AAR Agreement and the consummation
                by
                it of the transactions contemplated hereby, have been duly authorized
                by
                all necessary corporate action on part of the Assignee. This AAR
                Agreement
                has been duly executed and delivered by the Assignee and, upon the
                due
                authorization, execution and delivery by the Assignor and the parties
                hereto, will constitute the valid and legally binding obligation
                of the
                Assignee enforceable against the Assignee in accordance with its
                terms
                except as enforceability may be limited by bankruptcy, reorganization,
                insolvency, moratorium or other similar laws now or hereafter in
                effect
                relating to creditors’ rights generally, and by general principles of
                equity regardless of whether enforceability is considered in a proceeding
                in equity or at law;

            

    

     

    
      	
              c.  

            	
              No
                consent, approval, order or authorization of, or declaration, filing
                or
                registration with, any governmental entity is required to be obtained
                or
                made by the Assignee in connection with the execution, delivery or
                performance by the Assignee of this AAR Agreement, or the consummation
                by
                it of the transactions contemplated
                hereby;

            

    

     

    
      	
               

            	
                
                d.

            	
              There
                is no action, suit, proceeding, investigation or litigation pending
                or, to
                the Assignee's knowledge, threatened, which either in any instance
                or in
                the aggregate, if determined adversely to the Assignee, would adversely
                affect the Assignee's execution or delivery of, or the enforceability
                of,
                this AAR Agreement, or the Assignee's ability to perform its obligations
                under this AAR Agreement; and

            

    

     

    
      	
               

            	
                
                e.

            	
              The
                Assignee assumes for the benefit of each of Assignor and Company
                all of
                the Assignor’s rights as “Owner” under the Servicing Agreement but solely
                with respect to the Assigned Loans.

            

    

     

    4.  Company
      warrants and represents to, and covenants with, the Assignee and the Assignor,
      as of the date hereof, that:

     

    
      	
              a.  

            	
              Attached
                hereto as Attachment 2 is a true and accurate copy of the Servicing
                Agreement, which agreement is in full force and effect as of the
                date
                hereof and the provisions of which have not been waived, amended
                or
                modified in any respect, nor has any notice of termination been given
                thereunder;

            

    

     

    
      	
              b.  

            	
              The
                Company is duly organized, validly existing and in good standing
                under the
                laws of the jurisdiction of its incorporation, and has all requisite
                power
                and authority to service the Assigned Loans and otherwise to perform
                its
                obligations under the Servicing
                Agreement;

            

    

     

    
      	
              c.  

            	
              The
                Company has full corporate power and authority to execute, deliver
                and
                perform its obligations under this AAR Agreement, and to consummate
                the
                transactions set forth herein. The consummation of the transactions
                contemplated by this AAR Agreement is in the ordinary course of the
                Company’s business and will not conflict with, or result in a breach of,
                any of the terms, conditions or provisions of the Company’s charter or
                by-laws or any legal restriction, or any material agreement or instrument
                to which the Company is now a party or by which it is bound, or result
                in
                the violation of any law, rule, regulation, order, judgment or decree
                to
                which the Company or its property is subject. The execution, delivery
                and
                performance by the Company of this AAR Agreement and the consummation
                by
                it of the transactions contemplated hereby, have been duly authorized
                by
                all necessary corporate action on part of the Company. This AAR Agreement
                has been duly executed and delivered by the Company, and, upon the
                due
                authorization, execution and delivery by the Assignor and the Assignee,
                will constitute the valid and legally binding obligation of the Company,
                enforceable against the Company in accordance with its terms except
                as
                enforceability may be limited by bankruptcy, reorganization, insolvency,
                moratorium or other similar laws now or hereafter in effect relating
                to
                creditors’ rights generally, and by general principles of equity
                regardless of whether enforceability is considered in a proceeding
                in
                equity or at law;

            

    

     

    
      	
              d.  

            	
              No
                consent, approval, order or authorization of, or declaration, filing
                or
                registration with, any governmental entity is required to be obtained
                or
                made by the Company in connection with the execution, delivery or
                performance by the Company of this AAR Agreement, or the consummation
                by
                it of the transactions contemplated
                hereby;

            

    

     

    
      	
              e.  

            	
              The
                Company shall establish a Custodial Account and an Escrow Account
                under
                the Servicing Agreement in favor of the Assignee with respect to
                the
                Assigned Loans separate from the Custodial Account and Escrow Account
                previously established under the Servicing Agreement in favor of
                the
                Assignor;

            

    

     

    
      	
              f.  

            	
              Pursuant
                to Section 10.02 of the Servicing Agreement, the Company hereby restates
                the representations and warranties set forth in Article III of the
                Servicing Agreement with respect to the Company and/or the Assigned
                Loans;
                and

            

    

     

    
      	
               

            	
                
                g.

            	
              Neither
                this AAR Agreement nor any certification, statement, report or other
                agreement, document or instrument furnished or to be furnished by
                the
                Company pursuant to this AAR Agreement contains or will contain any
                materially untrue statement of fact or omits or will omit to state
                a fact
                necessary to make the statements contained therein not
                misleading.

            

    

     

    5.  The
      Company warrants and represents to, and covenants with the Assignor as of the
      date hereof:

     

    (a)  The
      Company 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 the Company;

     

    (b)  No
      material noncompliance with the applicable servicing criteria with respect
      to
      other securitizations of residential mortgage loans involving the Company as
      servicer has been disclosed or reported by the Company;

     

    (c)  The
      Company 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;

     

    (d)  No
      material changes to the Company’s policies or procedures with respect to the
      servicing function it will perform under the Servicing Agreement and this AAR
      Agreement for mortgage loans of a type similar to the Assigned Loans have
      occurred during the three-year period immediately preceding the date
      hereof;

     

    (e)  There
      are
      no aspects of the Company’s financial condition that could have a material
      adverse effect on the performance by the Company of its servicing obligations
      under the Servicing Agreement and this AAR Agreement;

     

    (f)  There
      are
      no material legal or governmental proceedings pending (or known to be
      contemplated) against the Company, any Subservicer or any third-party
      originator; and

     

    (g)  There
      are
      no affiliations, relationships or transactions relating to the Company or any
      Subservicer with respect to this Securitization Transaction and any party
      thereto of a type described in Item 1119 of Regulation AB.

     

    Notwithstanding
      anything to the
      contrary in the Agreement, the Company shall (or shall cause any Third-Party
      Originator to) (i) immediately notify the Assignor and SAMI II in writing of
      (A)
      legal proceedings pending against the Company, or proceedings known to be
      contemplated by governmental authorities against the Company which in the
      judgment of the Company would be, in each case, material to purchasers of
      securities backed by the Assigned Loans, (B) any affiliations or relationships
      of the type described in Item 1119(b) of Regulation AB that develop following
      the date hereof between the Company and any of the above listed parties or
      other
      parties identified in writing by the Assignor or SAMI II with respect to the
      Securitization Transaction and (ii) provide to the Assignor and SAMI II a
      description of such proceedings, affiliations or relationships

     

    6.  The
      Assignor hereby agrees to indemnify and hold the Assignee (and its successors
      and assigns) harmless against any and all claims, losses, penalties, fines,
      forfeitures, legal fees and related costs, judgments, and any other costs, fees
      and expenses that the Assignee (and its successors and assigns) may sustain
      in
      any way related to any breach of the representations or warranties of the
      Assignor set forth in this AAR Agreement or the breach of any covenant or
      condition contained herein.

     

    Recognition
      of Assignee

     

    7.  From
      and after the date hereof, the
      Company shall recognize the Assignee as owner of the Assigned Loans, and
      acknowledges that the Assigned Loans will be part of a REMIC, and will service
      the Assigned Loans in accordance with the Servicing Agreement but in no event
      in
      a manner that would (i) cause any REMIC to fail to qualify as a REMIC or (ii)
      result in the imposition of a tax upon any REMIC (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). It is the intention of the Assignor, the Company and the Assignee that
      this AAR Agreement shall be binding upon and for the benefit of the respective
      successors and assigns of the parties hereto. Neither the Company nor the
      Assignor shall amend or agree to amend, modify, waiver, or otherwise alter
      any
      of the terms or provisions of the Servicing Agreement which amendment,
      modification, waiver or other alteration would in any way affect the Assigned
      Loans without the prior written consent of the Assignee.

     

    8.  The
      Company shall prepare for and
      deliver to the Assignee and EMC Mortgage Corporation, as master servicer (in
      such capacity, the “Master Servicer”) a statement with respect to each mortgaged
      property acquired through foreclosure or deed-in-lieu of foreclosure in
      connection with a defaulted Assigned Loan (“REO Property”) that has been rented
      showing the aggregate rental income received and all expenses incurred in
      connection with the management and maintenance of such REO Property at such
      times as is necessary to enable the Assignee to comply with the reporting
      requirements of the REMIC provisions of the Code.  The net monthly
      rental income, if any, from such REO Property shall be deposited in the related
      collection account no later than the close of business on each determination
      date.  The Company shall perform, or cause to be performed, the tax
      reporting and withholding related to foreclosures, abandonments and cancellation
      of indebtedness income as specified by Sections 1445, 6050J and 6050P of the
      Code by preparing and filing such tax and information returns, as may be
      required.  In the event that Prime Mortgage Trust, Mortgage
      Pass-Through Certificates, Series 2007-3 acquires any REO Property as aforesaid
      or otherwise in connection with a default or default becoming reasonably
      foreseeable on an Assigned Loan, the Company shall cause such REO Property
      to be
      disposed prior to three years after its acquisition by Prime Mortgage Trust,
      Mortgage Pass-Through Certificates, Series 2007-3 or, at the expense of Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3, request
      more
      than 60 days prior to the day on which such three-year period would otherwise
      expire, an extension of the three-year grace period unless the Assignee shall
      have been supplied with an opinion of counsel addressed to the Assignee rendered
      by nationally recognized tax counsel specializing in such matters (such opinion
      not to be an expense of the Assignee) to the effect that the holding by Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 of such REO
      Property subsequent to such three-year period will not result in the imposition
      of taxes on “prohibited transactions” of any REMIC as defined in Section 860F of
      the Code or cause any REMIC to fail to qualify as a REMIC, in which case Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 may continue
      to hold such REO Property (subject to any conditions contained in such opinion
      of counsel). Notwithstanding any other provision of the Servicing Agreement,
      no
      REO Property acquired by Prime Mortgage Trust, Mortgage Pass-Through
      Certificates, Series 2007-3 shall be rented (or allowed to continue to be
      rented) or otherwise used for the production of income by or on behalf of Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 in such a
      manner or pursuant to any terms that would (i) cause such REO Property to fail
      to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of
      the Code or (ii) subject any REMIC to the imposition of any federal, state
      or
      local income taxes on the income earned from such REO Property under Section
      860G(c) of the Code or otherwise, unless the Company has agreed to indemnify
      and
      hold harmless Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series
      2007-3 with respect to the imposition of any such taxes.

     

    9.  Notwithstanding
      any term hereof to the contrary, the execution and delivery of this AAR
      Agreement by the Assignee is solely in its capacity as trustee for Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 and not
      individually, and any recourse against the Assignee in respect of any
      obligations it may have under or pursuant to the terms of this AAR Agreement
      shall be limited solely to the assets it may hold as trustee of Prime Mortgage
      Trust, Mortgage Pass-Through Certificates, Series 2007-3.

     

    Miscellaneous

     

    10.  All
      demands, notices and communications related to the Assigned Loans, the Servicing
      Agreement and this AAR Agreement shall be in writing and shall be deemed to
      have
      been duly given if personally delivered at or mailed by registered mail, postage
      prepaid, as follows:

     

    
      	
              a.  

            	
              In
                the case of the Company,

            

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX  75067-3884

    Attention:
      Michelle Viner

    Facsimile:
      (214) 626-4889

    Email:
      mviner@bear.com

    

    
      	
              b.  

            	
              In
                the case of the Assignor,

            

    

    Structured
      Asset Mortgage Investments II Inc.

    383
      Madison Avenue,

    New
      York,
      New York 10179

    Attention:  Robert
      Durden

    Telecopier
      No.: (212) 272-5591

    

    
      	
              c.  

            	
              In
                the case of the Assignee,

            

    

    U.S.
      Bank
      National Association,

    as
      Trustee

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME 2007-3

    Telecopier
      No.: (617) 603-6638

    

    11.  The
      Company hereby acknowledges that EMC Mortgage Corporation has been appointed
      as
      the master servicer of the Assigned Loans pursuant to the Pooling and Servicing
      Agreement, dated as of August 1, 2007, among the Assignor, the Assignee and
      the
      Company, as seller and master servicer, and therefor has the right to enforce
      all obligations of the Company, as they relate to the Assigned Loans, under
      the
      Servicing Agreement.  Such right will include, without limitation, the
      right to terminate the Company under the Servicing Agreement upon the occurrence
      of an event of default thereunder, the right to receive all remittances required
      to be made by the Company under the Servicing Agreement, the right to receive
      all monthly reports and other data required to be delivered by the Company
      under
      the Servicing Agreement, the right to examine the books and records of the
      Company, indemnification rights, and the right to exercise certain rights of
      consent and approval relating to actions taken by the Company.  The
      Company shall make all distributions under the Servicing Agreement, as they
      relate to the Assigned Loans, to the Master Servicer by wire transfer of
      immediately available funds to:

    

    EMC
      Master Servicing Remittances

    Bank:  Chase
      Bank of Texas

    Branch:  Irving,
      Texas

    Account
      Name:  EMC Mortgage Corporation

    ABA
      #
      113000609

    ACCOUNT
      #
      000000709377717

    Reference:
      M/S Remittance August 1, 2007 Remit for EMC Mortgage Corporation

    Attention:  LSBO
      Group-MS

    

    and
      the
      Company shall deliver all reports required to be delivered under the Servicing
      Agreement, as they relate to the Assigned Loans, to the Assignee at the address
      set forth in Section 10 herein and to the Master Servicer at:

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX  75067-3884

    Attention:
      Michelle Viner

    Facsimile:
      (214) 626-4889

    Email:
      mviner@bear.com

    

     

    12.  THIS
      AAR
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES, AND THE OBLIGATIONS, RIGHTS
      AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
      SUCH LAWS.

     

    13.  No
      term
      or provision of this AAR Agreement may be waived or modified unless such waiver
      or modification is in writing and signed by the party against whom such waiver
      or modification is sought to be enforced.

     

    14.  This
      AAR
      Agreement shall inure to the benefit of the successors and assigns of the
      parties hereto. Any entity into which the Assignor, the Assignee or the Company
      may be merged or consolidated shall, without the requirement for any further
      writing, be deemed the Assignor, the Assignee or the Company, respectively,
      hereunder.

     

    15.  This
      AAR
      Agreement shall survive the conveyance of the Assigned Loans, the assignments
      of
      the Servicing Agreement to the extent of the Assigned Loans by the Assignor
      to
      the Assignee and the termination of the Servicing Agreement.

     

    16.  This
      AAR
      Agreement may be executed simultaneously in any number of counterparts. Each
      counterpart shall be deemed to be an original and all such counterparts shall
      constitute one and the same instrument.

     

    17.  In
      the
      event that any provision of this AAR Agreement conflicts with any provision
      of
      the Servicing Agreement with respect to the Assigned Loans, the terms of this
      AAR Agreement shall control.

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this AAR Agreement on the
      date
      first above written.

     

     

     

    
      	
              STRUCTURED
                ASSET MORTGAGE INVESTMENTS
                II INC.,

              the
                Assignor

            	 	
              U.S.
                BANK NATIONAL ASSOCIATION, not individually but solely as trustee
                for the
                holders of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
                Series 2007-3, the
                Assignee

               

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	
              Name:

            	
              Joseph
                T. Jurkowski, Jr.

            	 	
              Name:

            	 
	
              Title:

            	
              Vice
                President

            	 	
              Title:

            	 
	 	 	 
	 	 	 
	
              EMC
                MORTGAGE CORPORATION,

              the
                Company and Master Servicer

            	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
               

            	 
	
              Name:

            	 	 	
               

            	 
	
              Title:

            	 	 	
               

            	 

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Attachment
      I

    

    Assigned
      Loans

    

    (provided
      upon request)

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Attachment
      II

    

    Servicing
      Agreement

    

    (please
      see tab #19)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      J-2

    

    FORM
      OF
      NCMC ASSIGNMENT AGREEMENT

     

     

    ASSIGNMENT,
      ASSUMPTION AND RECOGNITION AGREEMENT

     

    This
      is
      an Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) made
      as of August 31, 2007, among EMC Mortgage Corporation (the “Assignor”), U.S.
      Bank National Association, not individually but solely as trustee for the
      holders of Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series
      2007-3 (the “Assignee”), National City Mortgage Co. (the “Company”) and
      Structured Asset Mortgage Investments II Inc. (“SAMI II”).

     

    In
      consideration of the mutual promises contained herein the parties hereto agree
      that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
      1 annexed hereto (the “Assigned Loan Schedule”) purchased by Assignor from
      Company pursuant to (a) the Purchase, Warranties and Servicing Agreement, dated
      as of October 1, 2001, between Assignor and Company as amended by Amendment
      Reg
      AB to the Purchase, Warranties and Servicing Agreement, dated as of March 1,
      2006 (the “Purchase Agreement”) and (b) that certain Term Sheet, dated May 21,
      2007 between Assignor and Company (the “Term Sheet” and together with the
      Purchase Agreement, the “Agreements”), shall be subject to the terms of this AAR
      Agreement. Capitalized terms used herein but not defined shall have the meanings
      ascribed to them in the Agreements.

     

    In
      consideration of the mutual promises and agreements contained herein, and for
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the parties hereto agree that the Assigned Loans shall
      be
      subject to the terms of this AAR Agreement.  Capitalized terms used
      herein but not defined shall have the meanings ascribed to them in the Purchase
      Agreement.

     

    Assignment
      and Assumption

     

    1.  Assignor
      hereby grants, transfers and assigns to Assignee all of the right, title and
      interest of Assignor in the Assigned Loans and, as they relate to the Assigned
      Loans, all of its right, title and interest in, to and under the Agreements.
      Assignor specifically reserves and does not assign to Assignee any right title
      and interest in, to or under any Mortgage Loans subject to the Agreements other
      than those set forth on Attachment l. Notwithstanding anything to the contrary
      contained herein, the Assignor is retaining the right to enforce the
      representations and warranties set forth in Article III of the Purchase
      Agreement and in the Term Sheet, and any obligation of the Company to cure,
      repurchase or substitute for a mortgage loan and to indemnify the Assignor
      with
      respect to a breach of such representations and warranties pursuant to Section
      3.03 and Section 8.01 of the Purchase Agreement against the
      Company.  In addition, the Assignor specifically reserves and does not
      assign to the Assignee any right, title and interest in, to or under Section
      2.09 of the Purchase Agreement and Section 4.03 and Section 4.13 of the Purchase
      Agreement (but only insofar as such Sections grant to the Purchaser the right
      to
      terminate the servicing of defaulted Assigned Loans and/or REO Properties by
      the
      Company).

     

    Representations;
      Warranties and Covenants

     

    2.  Assignor
      warrants and represents to Assignee and Company as of the date
      hereof:

     

    
      	
              a.          
                  

            	
              Attached
                hereto as Attachment 2 are true and accurate copies of the Agreements,
                which agreements are in full force and effect as of the date hereof
                and
                the provisions of which have not been waived, amended or modified
                in any
                respect, nor has any notice of termination been given
                thereunder;

            

    

     

    
      	
              b.          
                  

            	
              Assignor
                is the lawful owner of the Assigned Loans with full right to transfer
                the
                Assigned Loans and any and all of its interests, rights and obligations
                under the Agreements as they relate to the Assigned Loans, free and
                clear
                of any and all liens, claims and encumbrances; and upon the transfer
                of
                the Assigned Loans to Assignee as contemplated herein, Assignee shall
                have
                good title to each and every Assigned Loan, as well as any and all
                of
                Assignor's interests, rights and obligations under the Agreements
                as they
                relate to the Assigned Loans, free and clear of any and all liens,
                claims
                and encumbrances;

            

    

     

    
      	
              c.          
                  

            	
              Assignor
                has not received notice of, and has no knowledge of, any offsets,
                counterclaims or other defenses available to Company with respect
                to the
                Assigned Loans or the Agreements;

            

    

     

    
      	
              d.          
                  

            	
              Assignor
                has not waived or agreed to any waiver under, or agreed to any amendment
                or other modifications of, the Agreements. Assignor has no knowledge
                of,
                and has not received notice of, any waivers under or any amendments
                or
                other modifications of, or assignment of rights or obligations under
                the
                Agreements;

            

    

     

    
      	
              e.             

            	
              Assignor
                is a corporation duly organized, validly existing and in good standing
                under the laws of the jurisdiction of its formation, and has all
                requisite
                power and authority to acquire, own and sell the Assigned
                Loans;

            

    

     

    
      	
              f.          
                  

            	
              Assignor
                has full power and authority to execute, deliver and perform its
                obligations under this AAR Agreement, and to consummate the transactions
                set forth herein. The consummation of the transactions contemplated
                by
                this AAR Agreement is in the ordinary course of Assignor's business
                and
                will not conflict with, or result in a breach of, any of the terms,
                conditions or provisions of Assignor's charter or by-laws or any
                legal
                restriction, or any material agreement or instrument to which Assignor
                is
                now a party or by which it is bound, or result in the violation of
                any
                law, rule, regulation, order, judgment or decree to which Assignor
                or its
                property is subject. The execution, delivery and performance by Assignor
                of this AAR Agreement and the consummation by it of the transactions
                contemplated hereby, have been duly authorized by all necessary action
                on
                the part of Assignor. This AAR Agreement has been duly executed and
                delivered by Assignor and, upon the due authorization, execution
                and
                delivery by Assignee and Company, will constitute the valid and legally
                binding obligation of Assignor enforceable against Assignor in accordance
                with its terms except as enforceability may be limited by bankruptcy,
                reorganization, insolvency, moratorium or other similar laws now
                or
                hereafter in effect relating to creditors' rights generally, and
                by
                general principles of equity regardless of whether enforceability
                is
                considered in a proceeding in equity or at
                law;

            

    

     

    
      	
              g.          
                  

            	
              No
                material consent, approval, order or authorization of, or declaration,
                filing or registration with, any governmental entity is required
                to be
                obtained or made by Assignor in connection with the execution, delivery
                or
                performance by Assignor of this AAR Agreement, or the consummation
                by it
                of the transactions contemplated hereby. Neither Assignor nor anyone
                acting on its behalf has offered, transferred, pledged, sold or otherwise
                disposed of the Assigned Loans or any interest in the Assigned Loans,
                or
                solicited any offer to buy or accept transfer, pledge or other disposition
                of the Assigned Loans, or any interest in the Assigned Loans, or
                otherwise
                approached or negotiated with respect to the Assigned Loans, or any
                interest in the Assigned Loans, 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 which would constitute a distribution
                of
                the Assigned Loans under the Securities Act of 1933, as amended (the
“1933
                Act”) or which would render the disposition of the Assigned Loans a
                violation of Section 5 of the 1933 Act or require registration pursuant
                thereto;

            

    

     

    
      	
              h.         
                  

            	
              There
                is no action, suit, proceeding, investigation or litigation pending
                or, to
                Assignor's knowledge, threatened, which either in any instance or
                in the
                aggregate, if determined adversely to Assignor, would adversely affect
                Assignee's execution or delivery of, or the enforceability of, this
                AAR
                Agreement, or the Assignor's ability to perform its obligations under
                this
                AAR Agreement; and

            

    

     

    
      	
              i.          
                  

            	
              Assignor
                has received from Company, and has delivered to Assignee, all documents
                required to be delivered to Assignor by Company prior to the date
                hereof
                pursuant to Section 2.07 of the Purchase Agreement with respect to
                the
                Assigned Loans.

            

    

     

    3.  Assignee
      warrants and represents to, and covenants with, Assignor and Company as of
      the
      date hereof:

     

    
      	
               

            	
              a.

            	
              Assignee
                is duly organized, validly existing and in good standing under the
                laws of
                the jurisdiction of its organization and has all requisite power
                and
                authority to acquire and hold the Assigned Loans as trustee on behalf
                of
                the holders of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
                Series 2007-3;

            

    

     

    
      	
               

            	
              b.

            	
              Assignee
                has full power and authority to execute, deliver and perform its
                obligations under this AAR Agreement, and to consummate the transactions
                set forth herein. The consummation of the transactions contemplated
                by
                this AAR Agreement is in the ordinary course of Assignee's business
                and
                will not conflict with, or result in a breach of, any of the terms,
                conditions or provisions of Assignee's charter or by-laws or any
                legal
                restriction, or any material agreement or instrument to which Assignee
                is
                now a party or by which it is bound, or result in the violation of
                any
                law, rule, regulation, order, judgment or decree to which Assignee
                or its
                property is subject. The execution, delivery and performance by Assignee
                of this AAR Agreement and the consummation by it of the transactions
                contemplated hereby, have been duly authorized by all necessary action
                on
                the part of Assignee. This AAR Agreement has been duly executed and
                delivered by Assignee and, upon the due authorization, execution
                and
                delivery by Assignor and Company, will constitute the valid and legally
                binding obligation of Assignee enforceable against Assignee in accordance
                with its terms except as enforceability may be limited by bankruptcy,
                reorganization, insolvency, moratorium or other similar laws now
                or
                hereafter in effect relating to creditors’ rights generally, and by
                general principles of equity regardless of whether enforceability
                is
                considered in a proceeding in equity or at
                law;

            

    

     

    
      	
               

            	
              c.

            	
              No
                material consent, approval, order or authorization of, or declaration,
                filing or registration with, any governmental entity is required
                to be
                obtained or made by Assignee in connection with the execution, delivery
                or
                performance by Assignee of this AAR Agreement, or the consummation
                by it
                of the transactions contemplated hereby;
                and

            

    

     

    
      	
               

            	
              d.

            	
              There
                is no action, suit, proceeding, investigation or litigation pending
                or, to
                Assignee's knowledge, threatened, which either in any instance or
                in the
                aggregate, if determined adversely to Assignee, would adversely affect
                Assignee's execution or delivery of, or the enforceability of, this
                AAR
                Agreement, or the Assignee's ability to perform its obligations under
                this
                AAR Agreement.

            

    

     

    4.  Company
      warrants and represents to, and covenants with, Assignor and Assignee as of
      the
      date hereof:

     

    
      	
               

            	
              a.

            	
              Attached
                hereto as Attachment 2 are true and accurate copies of the Agreements,
                which agreements are in full force and effect as of the date hereof
                and
                the provisions of which have not been waived, amended or modified
                in any
                respect, nor has any notice of termination been given
                thereunder;

            

    

     

    
      	
               

            	
              b.

            	
              Company
                is duly organized, validly existing and in good standing under the
                laws of
                the jurisdiction of its incorporation, and has all requisite power
                and
                authority to service the Assigned Loans and otherwise to perform
                its
                obligations under the Agreements;

            

    

     

    
      	
               

            	
              c.

            	
              Company
                has full corporate power and authority to execute, deliver and perform
                its
                obligations under this AAR Agreement, and to consummate the transactions
                set forth herein. The consummation of the transactions contemplated
                by
                this AAR Agreement is in the ordinary course of Company's business
                and
                will not conflict with, or result in a breach of, any of the terms,
                conditions or provisions of Company’s charter or by-laws or any legal
                restriction, or any material agreement or instrument to which Company
                is
                now a party or by which it is bound, or result in the violation of
                any
                law, rule, regulation, order, judgment or decree to which Company
                or its
                property is subject. The execution, delivery and performance by Company
                of
                this AAR Agreement and the consummation by it of the transactions
                contemplated hereby, have been duly authorized by all necessary corporate
                action on the part of Company. This AAR Agreement has been duly executed
                and delivered by Company, and, upon the due authorization, execution
                and
                delivery by Assignor and Assignee, will constitute the valid and
                legally
                binding obligation of Company, enforceable against Company in accordance
                with its terms except as enforceability may be limited by bankruptcy,
                reorganization, insolvency, moratorium or other similar laws now
                or
                hereafter in effect relating to creditors’ rights generally, and by
                general principles of equity regardless of whether enforceability
                is
                considered in a proceeding in equity or at
                law;

            

    

     

    
      	
               

            	
              d.

            	
              No
                consent, approval, order or authorization of, or declaration, filing
                or
                registration with, any governmental entity is required to be obtained
                or
                made by Company in connection with the execution, delivery or performance
                by Company of this AAR Agreement, or the consummation by it of the
                transactions contemplated hereby;

            

    

     

    
      	
               

            	
              e.

            	
              Company
                shall establish a Custodial Account and an Escrow Account under the
                Purchase Agreement in favor of Assignee with respect to the Assigned
                Loans
                separate from the Custodial Account and the Escrow Account previously
                established under the Purchase Agreement in favor of
                Assignor;

            

    

     

    
      	
               

            	
              f.

            	
              No
                event has occurred from the applicable Closing Date to the date hereof
                which would render the representations and warranties as to the related
                Mortgage Loans made by the Company in Section 3.02 of the Purchase
                Agreement or in the related Term Sheet to be untrue in any material
                respect; and

            

    

     

    
      	
               

            	
              g.

            	
              Pursuant
                to Section 11.18 of the Purchase Agreement, the Company hereby restates
                the representations and warranties set forth in Article III of the
                Purchase Agreement and in the Term Sheet with respect to the Company
                and
                the Assigned Loans as of the Closing
                Date.

            

    

     

    5.  Company
      warrants and represents to, and covenants with, Assignor and SAMI II as of
      the
      date hereof:

     

    
      	
               

            	
              a.

            	
              Company
                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 the
                Company;

            

    

     

    
      	
               

            	
              b.

            	
              No
                material noncompliance with the applicable servicing criteria with
                respect
                to other securitizations of residential mortgage loans involving
                the
                Company as servicer has been disclosed or reported by the
                Company;

            

    

     

    
      	
               

            	
              c.

            	
              Company
                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;

            

    

     

    
      	
               

            	
              d.

            	
              No
                material changes to the Company’s policies or procedures with respect to
                the servicing function it will perform under the Purchase Agreement
                and
                this AAR Agreement for mortgage loans of a type similar to the Assigned
                Loans have occurred during the three-year period immediately preceding
                the
                date hereof;

            

    

     

    
      	
               

            	
              e.

            	
              There
                are no aspects of the Company’s financial condition that could have a
                material adverse effect on the performance by the Company of its
                servicing
                obligations under the Purchase Agreement and this AAR
                Agreement;

            

    

     

    
      	
               

            	
              f.

            	
              There
                are no material legal or governmental proceedings pending (or known
                to be
                contemplated) against the Company, any Subservicer or any third-party
                originator; and

            

    

     

    
      	
               

            	
              g.

            	
              There
                are no affiliations, relationships or transactions relating to the
                Company
                or any Subservicer with respect to this Securitization Transaction
                and any
                party thereto of a type described in Item 1119 of Regulation
                AB.

            

    

     

    Notwithstanding
      anything to the contrary in the Agreement, the Company shall (or shall cause
      any
      Third-Party Originator to) (i) immediately notify Assignor and SAMI II in
      writing of (A) legal proceedings pending against the Company, or proceedings
      known to be contemplated by governmental authorities against the Company which
      in the judgment of the Company would be, in each case, material to purchasers
      of
      securities backed by the Assigned Loans, (B) any affiliations or relationships
      of the type described in Item 1119(b) of Regulation AB that develop following
      the date hereof between the Company and any of the above listed parties or
      other
      parties identified in writing by the Assignor or SAMI II with respect to the
      Securitization Transaction and (ii) provide to the Assignor and SAMI II a
      description of such proceedings, affiliations or relationships.

     

    Each
      such
      notice/update should be sent to the Assignor by e-mail to
      regABnotifications@bear.com.  Additionally, all such notifications,
      other than those pursuant to (i)(A) above, should be sent to:

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067-3884

    Attention:  Michelle
      Viner

    Facsimile:  (214)
      626-4889

    Email:  mviner@bear.com

    

    With
      a
      copy to:

    

    Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue, 3rd Floor

    New,
      York, New York 10179

    Attention:  Global
      Credit Administration

    Facsimile:  (212)
      272-6564

    

    Notifications
      pursuant to (i)(A) above should be sent to:

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067-3884

    Attention:  General
      Counsel

    Facsimile:  (214)
      626-4714

    

    With
      copies to:

    

    Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue, 3rd Floor

    New,
      York, New York 10179

    Attention:  Global
      Credit Administration

    Facsimile:  (212)
      272-6564

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067-3884

    Attention:  Michelle
      Viner

    Facsimile:  (214)
      626-4889

    Email:  mviner@bear.com

     

    

    6.  Notwithstanding
      any term hereof to the contrary, the execution and delivery of this AAR
      Agreement by the Assignee is solely in its capacity as trustee for Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 and not
      individually, and any recourse against the Assignee in respect of any
      obligations it may have under or pursuant to the terms of this AAR Agreement
      shall be limited solely to the assets it may hold as trustee of Prime Mortgage
      Trust, Mortgage Pass-Through Certificates, Series 2007-3.

     

    Recognition
      of Assignee

     

    7.  From
      and
      after the date hereof, Company shall recognize Assignee as owner of the Assigned
      Loans and will service the Assigned Loans for Assignee as if Assignee and
      Company had entered into a separate servicing agreement for the servicing of
      the
      Assigned Loans in the form of the Purchase Agreement (as modified herein),
      the
      terms of which are incorporated herein by reference. In addition, Company hereby
      acknowledges that from and after the date hereof, the Assigned Loans will be
      subject to the Pooling and Servicing Agreement (the “Pooling and Servicing
      Agreement”), dated as of August 1, 2007, by and among, Structured Asset Mortgage
      Investments II Inc., EMC Mortgage Corporation as master servicer (the “Master
      Servicer”) and U.S. Bank National Association. Pursuant to the Pooling and
      Servicing Agreement, the Master Servicer has the right to monitor and enforce,
      on behalf of the Assignee, the performance by Company of its servicing
      obligations under this AAR Agreement. Such right will include, without
      limitation, the right to terminate the Company under the Purchase Agreement
      upon
      the occurrence of an event of default thereunder, the right to receive all
      remittances required to be made by the Company under the Purchase Agreement,
      the
      right to receive all monthly reports and other data required to be delivered
      by
      the Company under the Purchase Agreement, the right to examine the books and
      records of the Company, indemnification rights, and the right to exercise
      certain rights of consent and approval relating to actions taken by the
      Company.  In connection with the aforementioned rights, the Company
      hereby agrees that all remittances required to be made pursuant to the Purchase
      Agreement shall be received no later than 2:00 p.m. Central Standard
      Time.  In connection therewith, Company hereby agrees that all
      remittances required to be made with respect to the Assigned Loans pursuant
      to
      the Purchase Agreement will be made in accordance with the following wire
      transfer instructions:

     

    EMC
      Master Servicing Remittances

    Bank:  Chase
      Bank of Texas

    Branch:  Irving,
      Texas

    Account
      Name:  EMC Mortgage Corporation

    ABA
      #
      113000609

    ACCOUNT
      #
      000000709377717

    Reference:
      M/S Remittance August 1, 2007 Remit for National City Mortgage
      Company

    Attention:  LSBO
      Group-MS 

     

    and
      the
      Company shall deliver all reports and other notices required to be delivered
      under the Purchase Agreement to the Assignee and to the Master Servicer
      at:

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067-3884

    Attention:
      Michelle Viner

    Facsimile:  (214)
      626-4889

    Email:
      mviner@bear.com

    

    It
      is the
      intention of Assignor, Company and Assignee that this AAR Agreement shall be
      binding upon and for the benefit of the respective successors and assigns of
      the
      parties hereto. Neither Company nor Assignor shall amend or agree to amend,
      modify, waive, or otherwise alter any of the terms or provisions of the
      Agreements which amendment, modification, waiver or other alteration would
      in
      any way affect the Assigned Loans without the prior written consent of
      Assignee.

     

    The
      Company shall prepare for and deliver to the Assignee and the Master Servicer
      (and the securities administrator, if any) a statement with respect to each
      mortgaged property acquired through foreclosure or deed-in-lieu of foreclosure
      in connection with a defaulted Assigned Loan (“REO Property”) that has been
      rented showing the aggregate rental income received and all expenses incurred
      in
      connection with the management and maintenance of such REO Property at such
      times as is necessary to enable the Assignee (or the securities administrator,
      if any) to comply with the reporting requirements of the REMIC provisions of
      the
      Code. The net monthly rental income, if any, from such REO Property shall be
      deposited in the related collection account no later than the close of business
      on each determination date.  The Company shall perform, or caused to
      be performed, the tax reporting and withholding related to foreclosures,
      abandonments and cancellation of indebtedness income as specified by Sections
      1445, 6050J and 6050P of the Code by preparing and filing such tax and
      information returns, as may be required.  In the event that the Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 acquires
      any
      REO Property as aforesaid or otherwise in connection with a default or default
      becoming reasonably foreseeable on an Assigned Loan, the Company shall cause
      such REO Property to be disposed prior to three years after its acquisition
      by
      the Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3
      or,
      at the expense of the Prime Mortgage Trust, Mortgage Pass-Through Certificates,
      Series 2007-3, request more than 60 days prior to the day on which such
      three-year period would otherwise expire, an extension of the three-year grace
      period unless the Assignee (or the securities administrator, if any) shall
      have
      been supplied with an opinion of counsel addressed to the Assignee (and the
      securities administrator, if any) rendered by nationally recognized tax counsel
      specializing in such matters (such opinion not to be an expense of the Trustee
      or the Securities Administrator) to the effect that the holding by the Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 of such REO
      Property subsequent to such three-year period will not result in the imposition
      of taxes on “prohibited transactions” of any REMIC as defined in Section 860F of
      the Code or cause any REMIC to fail to qualify as a REMIC, in which case the
      Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 may
      continue to hold such REO Property (subject to any conditions contained in
      such
      opinion of counsel). Notwithstanding any other provision of the Servicing
      Agreement, no REO Property acquired by the Prime Mortgage Trust, Mortgage
      Pass-Through Certificates, Series 2007-3 shall be rented (or allowed to continue
      to be rented) or otherwise used for the production of income by or on behalf
      of
      the Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3
      in
      such a manner or pursuant to any terms that would (i) cause such REO Property
      to
      fail to qualify as “foreclosure property” within the meaning of Section
      860G(a)(8) of the Code or (ii) subject any REMIC to the imposition of any
      federal, state or local income taxes on the income earned from such REO Property
      under Section 860G(c) of the Code or otherwise, unless the Company has agreed
      to
      indemnify and hold harmless the Prime Mortgage Trust, Mortgage Pass-Through
      Certificates, Series 2007-3 with respect to the imposition of any such
      taxes.

     

    Company
      shall indemnify and hold harmless the Assignor, each affiliate of the Assignor,
      SAMI II, the Assignee, Bear, Stearns & Co. Inc. (the “Underwriter”) and each
      affiliate of the Underwriter, each Person (including, but not limited to, the
      Master Servicer) responsible for the preparation, execution or filing of any
      report required to be filed with the Commission, or for execution of a
      certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange
      Act, each Person who controls the Assignor, SAMI II, the Assignee or the
      Underwriter (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act); and the respective present and former directors,
      officers, employees, agents and affiliates of each of the foregoing (each,
      an
“Indemnified Party”), and shall hold each of them harmless from and against any
      claims, losses, damages, penalties, fines, forfeitures, legal fees and expenses
      and related costs, judgments, and any other costs, fees and expenses that any
      of
      them may sustain arising out of or based upon:

     

    (i)  (A)           any
      untrue statement of a material fact
      contained or alleged to be contained in any information, report,
      certification,
      accountants’ letter or other material provided under
      Article 1 of Amendment Reg AB
by or on behalf of the
      Company, or provided
      under
      this Article 1 by or on behalf of any Subservicer, Subcontractor or Third-Party
      Originator (collectively, the  “Company Information”), or (B) the omission
      or alleged
      omission to state in the Company Information a material fact required to be
      stated in the Company Information or necessary in order to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading; provided,
      by way of clarification, that clause (B)
      of this paragraph shall
      be construed solely by reference to the Company Information and not to any
      other
      information communicated in connection with a sale or purchase of securities,
      without regard to whether the Company Information or any portion thereof is
      presented together with or separately from such other information;
      or

     

    (ii)  any
      breach by the Company of its
      obligations under Article I of Amendment Reg AB, including particularly the
      failure by the Company, any Subservicer, any Subcontractor or any Third-Party Originator
      to deliver any
      information, report, certification, accountants’ letter or other material when
      and as required under Article I of Amendment Reg AB, including any failure
      by
      the Company to identify pursuant to Section 6(b) any Subcontractor
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB; or

     

    (iii)  any
      breach by the Company of a
      representation or warranty set forth in Section  2(a) or in a writing
      furnished pursuant to Section 2(b) and made as of a date prior to the closing
      date of the related Securitization Transaction, to the extent that such breach
      is not cured by such closing date, or any breach by the Company of a
      representation or warranty in a writing furnished pursuant to Section 2(b)
      to
      the extent made as of a date subsequent to such closing
      date.

     

    If
      the indemnification provided for
      herein is unavailable or insufficient to hold harmless an Indemnified Party,
      then the Company agrees that it shall contribute to the amount paid or payable
      by such Indemnified Party as a result of any claims, losses, damages or
      liabilities incurred by such Indemnified Party in such proportion as is
      appropriate to reflect the relative fault of such Indemnified Party on the
      one
      hand and the Company on the other.

     

    In
      the case of any failure of
      performance described in clause (a)(ii) of Section 7 of Amendment Reg AB, the
      Company shall promptly reimburse the Assignor, each affiliate of the Assignor
      and SAMI II, 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 such Securitization Transaction, or for execution of a certification
      pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect
      to such Securitization 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 Company,
any Subservicer, any
      Subcontractor or any Third-Party
      Originator.

     

    Modification
      of the Purchase Agreement

     

    

    8.  The
      Purchase Agreement, as it relates to the Assigned Loans, shall be amended by
      the
      Company and the Assignor as follows:

     

    (a)           Section
      1.01 of the Purchase Agreement shall be amended by adding the following
      definitions thereto:

     

    Master
      Servicer: EMC Mortgage Corporation, or its successors in interest who meet
      the qualifications of the Pooling and Servicing Agreement and this
      Agreement.

     

    Nonrecoverable
      Advance: Any advance previously made by the Company pursuant to Section 5.03
      or any Servicing Advance which, in the good faith judgment of the Company,
      may
      not be ultimately recoverable by the Company from Liquidation Proceeds or
      otherwise.  The determination by the Company that it has made a
      Nonrecoverable Advance, shall be evidenced by an Officer’s Certificate of the
      Company delivered to the Purchaser and the Master Servicer and detailing the
      reasons for such determination.

     

    Pooling
      and Servicing Agreement:  That certain pooling and servicing
      agreement, dated as of August 1, 2007, among Structured Asset Mortgage
      Investments II Inc., EMC Mortgage Corporation, as the Master Servicer, and
      U.S.
      Bank National Association, as trustee.

     

    Servicing
      Modification: With respect to any Mortgage Loan that is in default or
      imminent default or as otherwise set forth in Section 4.01, any modification
      which is effected by the Company in accordance with the terms of this Agreement
      that results in any change to the payment terms of the Mortgage
      Loan.

     

    (b)           The
      definition of Eligible Account is deleted in its entirety and replaced with
      the
      following:

     

    Eligible
      Account: Any of (i) an account or accounts maintained with a federal or
      state chartered depository institution or trust company, the long-term unsecured
      debt obligations and short-term unsecured debt obligations of which (or, in
      the
      case of a depository institution or trust company that is the principal
      subsidiary of a holding company, the debt obligations of such holding company,
      so long as Moody’s is not a Rating Agency) are rated by each Rating Agency in
      one of its two highest long-term and its highest short-term rating categories,
      respectively, at the time any amounts are held on deposit therein; provided,
      that following a downgrade, withdrawal, or suspension of such institution's
      rating  as set forth above, each account shall promptly (and in any
      case within not more than 30 calendar days) be moved to one or more segregated
      trust accounts in the trust department of such institution, or to an account
      at
      another institution that complies with the above requirements, or (ii) a trust
      account or accounts maintained with the corporate trust department of a federal
      or state chartered depository institution or trust company having capital and
      surplus of not less than $50,000,000, acting in its fiduciary capacity or (iii)
      any other account acceptable to the Rating Agencies, as evidenced in writing.
      Eligible Accounts may bear interest, and may include, if otherwise qualified
      under this definition, accounts maintained with the Trustee.  This
      Agreement may be amended to reduce the rating requirements in clause (i) above
      pursuant to Section 11.02, provided that, the Person requesting such amendment
      obtains a letter from each Rating Agency stating that such amendment would
      not
      result in the downgrading or withdrawal of the respective ratings then assigned
      to the related securities.

     

    (c)           The
      definition of “Servicing Fee Rate” is deleted in its entirety and replaced with
      the following definition:

     

    Servicing
      Fee Rate: a per annum
      rate equal to 0.25%.

     

    (c)           Subsection
      3.02(nn) of the Purchase Agreement shall be deleted in its entirety and replaced
      with the following:

     

    The
      Mortgagor has not notified the Company, and the Company has no knowledge of
      any
      relief requested or allowed to the Mortgagor under the Servicemembers Civil
      Relief Act;

     

    (d)           The
      following sentence is added as the last sentence of the definition of Principal
      Prepayment:

     

    Partial
      principal Prepayments shall be
      applied in accordance with the terms of the related Mortgage Note.

     

    (e)           Section
      4.01 of the Purchase Agreement is hereby amended by changing the first sentence
      of the second paragraph to the following:

     

    Consistent
      with and in addition to the terms set forth in this Agreement, if a Mortgage
      Loan is in default or such default is reasonably foreseeable, the Company may
      waive, modify or vary any term of any Mortgage Loan or consent to the
      postponement of strict compliance with any such term or in any manner grant
      indulgence to any Mortgagor, including without limitation, to (1) capitalize
      any
      amounts owing on the Mortgage Loan by adding such amount to the outstanding
      principal balance of the Mortgage Loan, (2) defer such amounts to a later date
      or the final payment date of such Mortgage Loan, (3) extend the maturity of
      any
      such Mortgage Loan, (4) amend the related Mortgage Loan to reduce the related
      Mortgage Interest Rate with respect to any Mortgage Loan, (5) convert the
      Mortgage Interest Rate on any Mortgage Loan from a fixed rate to an adjustable
      rate or vice versa, (6) with respect to a Mortgage Loan with an initial fixed
      rate period followed by an adjustable rate period, extend the fixed period
      and
      reduce the adjustable rate period, and/or (7) forgive the amount of any
      interest, principal or servicing advances owed by the related Mortgagor;
      provided that, in the Company's reasonable and prudent determination, such
      waiver, modification, postponement or indulgence: (A) is not materially adverse
      to the interests of the Purchaser on a present value basis using reasonable
      assumptions (including taking into account any estimated realized loss (as
      defined in the related pooling and servicing agreement) that might result absent
      such action); and (B) does not amend the related Mortgage Note to extend the
      maturity thereof later than the date of the Latest Possible Maturity Date (as
      such term is defined in the related pooling and servicing agreement); provided,
      further, with respect to any Mortgage Loan that is not in default or if default
      is not reasonably foreseeable, unless the Company has provided to the Purchaser
      a certification addressed to the Purchaser, based on the advice of counsel
      or
      certified public accountants that have a national reputation with respect to
      taxation of REMICs that a modification of such Mortgage Loan will not result
      in
      the imposition of taxes on or disqualify from REMIC status any of the REMICs
      and
      has obtained the prior written consent of the Purchaser, the Company shall
      not
      permit any modification with respect to any Mortgage
      Loan.  Notwithstanding the foregoing, for any waiver, modification,
      postponement or indulgence (not including any partial releases, assumptions
      of
      mortgages or modifications of any Mortgage Loan that is done in connection
      with
      compliance with the Relief Act) which the Company reasonably anticipates may
      result in a realized loss of 20% or more of the outstanding principal balance
      of
      a Mortgage Loan, the Company shall present such proposed waiver, modification,
      postponement or indulgence, together with any supporting documentation, to
      the
      Master Servicer for consideration and approval.  The Company shall
      submit all waivers, modifications or variances of the terms of any Mortgage
      Loan
      with respect to partial releases, assumptions of mortgages or for modifications
      done in furtherance of compliance with Relief Act, together with any supporting
      documentation, to the Master Servicer for consideration and approval.

     

    (f)           Section
      4.01 of the Purchase Agreement is hereby amended by inserting the following
      as
      the third paragraph:

     

    In
      connection with any such Servicing Modification, the Company may reimburse
      itself from the Trust for any outstanding Monthly Advances and Servicing
      Advances in the same calendar month as the Servicing Modification to the extent
      that such Monthly Advances or Servicing Advances are reimbursable to the Company
      and to the extent of the related principal portion of funds available for the
      related Distribution Date (as defined in the related pooling and servicing
      agreement). To the extent there are not sufficient principal funds available
      on
      the related Distribution Date to reimburse the Company for such Monthly Advances
      and Servicing Advances, the Company may reimburse itself on a first priority
      basis from related principal funds that are available on future Distribution
      Dates. If any mortgagor’s obligation to repay any outstanding amounts due under
      the terms of the related Mortgage Loan for which a Monthly Advance or Servicing
      Advance has been made by the Company is forgiven, any such Monthly Advance
      or
      Servicing Advance will be treated as a realized loss which will be incurred
      on
      the Distribution Date related to the calendar month during which the Servicing
      Modification occurred.

     

    (g)           Section
      4.03 of the Purchase Agreement is hereby amended by adding the following
      paragraph to the end of the section:

     

    Not
      later
      than 2:00 p.m. Central Standard Time on each Remittance Date, the Company shall
      remit to the Master Servicer all Liquidation Proceeds and Insurance Proceeds,
      along with any Servicing Advances and Advances, such that the sum of the
      foregoing at least equals in the aggregate the outstanding Stated Principal
      Balance of the related Mortgage Loans.  The Master Servicer shall
      fully reimburse the Company for Servicing Advances and Monthly Advances related
      to Liquidation Proceeds on the Remittance Date after such Servicing Advances
      and
      Monthly Advances are approved; provided, however, the Company must provide
      documentation in the form of Exhibit P hereto to the Master Servicer seeking
      approval within 90 days of final liquidation of a Mortgage
      Loan.   The Master Servicer shall provide such approval or denial
      to the Company no later than thirty (30) days after receipt of such claim and
      all required supporting documentation.  The Company’s obligation to
      make such Servicing Advances and Monthly Advances as to any Mortgage Loan shall
      continue through the final liquidation of the Mortgaged Property, unless the
      Company deems such advance nonrecoverable and submits an officer’s certificate
      in accordance with Section 5.03.

     

    (h)           Sections
      4.05(vi), 4.05(vii) and 4.05(vi) are hereby renumbered as Sections 4.05(vi),
      4.05(vii) and 4.05(viii), and the following is added as Section
      4.05(ix):

     

    (ix)           to
      reimburse itself for Nonrecoverable Advances, to the extent not reimbursed
      pursuant to clause (ii) or clause (iii), upon prior approval from the Master
      Servicer.  The Master Servicer shall provide such approval or denial
      to the Company no later than thirty (30) days after receipt of such claim;
      provided, however, such claim must be complete with all supporting
      documentation.

     

    (i)           The
      following is added as the last paragraph of Section 4.05:

     

    “Notwithstanding
      the foregoing, the Company’s right to reimbursement pursuant to clauses (ii),
      (iii) and (ix) above shall be subject to the prior approval of the Master
      Servicer.  The Master Servicer shall provide such approval or denial
      to the Company no later than thirty (30) days after receipt of such claim;
      provided, however, the Company must submit such claim with all supporting
      documentation in order for the Master Servicer to approve or deny such claim
      within such time period.  Pending such approval, such funds shall be
      remitted by the Company to the Master Servicer to the extent such funds, in
      addition to any Servicing Advances and Advances, constitute an amount equal
      to
      the outstanding Stated Principal Balance of the related Mortgage Loan plus
      any
      accrued interest due and owing on such Mortgage Loan.”

     

    (j)           The
      first sentence of Section 5.01 of the Purchase Agreement is hereby amended
      by
      replacing the word “On” with the following:

     

    “Not
      later than 2:00 p.m. Central
      Standard Time on”

     

    (k)           The
      second sentence of the second paragraph of Section 5.02 of the Purchase
      Agreement is hereby deleted and replaced with the following:

     

    The
      Company shall also provide a monthly report in the form of Exhibit K and
Exhibit L, with respect to remittances, Exhibit J (within fifteen
      (15) calendar days from remittance of liquidation proceeds), with respect to
      realized losses and gains, Exhibit M (within five (5) business days of
      month end), with respect to defaulted mortgage loans, Exhibit N, with
      respect to delinquent mortgage loans, Exhibit O, with respect to modified
      mortgage loans, Exhibit P, with respect to claims submitted and
Exhibit Q, with respect to loss severity, with each such
      report.

     

    (l)           Section
      6.02 of the Purchase Agreement is hereby amended by including the words “(or if
      the Company does not, the Master Servicer may)” after the word “will” and before
      the word “immediately” in the third line thereof.

     

    (m)           Section
      6.04 of the Purchase Agreement shall be deleted in its entirety.

     

    (n)           Section
      6.05 of the Purchase Agreement shall be deleted in its entirety.

     

    (o)           Section
      9.01 of the Purchase Agreement is hereby amended by adding the word “or” at the
      end of clause (ix) thereof and inserting the following as clause
      (x):

     

    (x)           failure
      by the Company to duly perform, within the required time period, its obligations
      under Section 4 and Section 5 of Article 1 of Amendment Reg. AB to the Servicing
      Agreement which failure continues unremedied for a period of ten (10) days
      after
      the date on which written notice of such failure, requiring the same to be
      remedied, shall have been given to the Company by any party to this Agreement
      or
      by any Master Servicer. This paragraph shall supersede any other provision
      of
      this Agreement or other Agreement to the contrary.

     

    (p)           The
      following is added as Subsection 4.05(vii) of the Purchase
      Agreement:

     

    (vii)           to
      reimburse itself for any Nonrecoverable Advances;

     

    (q)           Section
      11.04 of the Purchase Agreement is deleted in its entirety and replaced with
      the
      following:

     

    Section
      11.04                                Governing
      Law.

     

    This
      Agreement and the related Term Sheet shall be governed by and construed in
      accordance with the laws of the State of New York, without regard to principles
      of conflicts of laws other than Section 5-1401 of the New York General
      Obligations Law which shall govern.  The obligations, rights and
      remedies of the parties hereunder shall be determined in accordance with such
      laws.

     

    (r)           The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit J to the Purchase Agreement, a copy of which is annexed hereto as
      Exhibit 1.

     

    (s)           The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit K to the Purchase Agreement, a copy of which is annexed hereto as
      Exhibit 2.

     

    (t)           The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit L to the Purchase Agreement, a copy of which is annexed hereto as
      Exhibit 3.

     

    (u)           The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit M to the Purchase Agreement, a copy of which is annexed hereto as
      Exhibit 4.

     

    (v)           The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit N to the Purchase Agreement, a copy of which is annexed hereto as
      Exhibit 5.

     

     
      (w)           The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit O to the Purchase Agreement, a copy of which is annexed hereto as
      Exhibit 6.

     

    (x)           The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit P to the Purchase Agreement, a copy of which is annexed hereto as
      Exhibit 7.

     

    (y)           The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit Q to the Purchase Agreement, a copy of which is annexed hereto as
      Exhibit 8.

     

    (z)           The
      following is added as the last sentence of Section 4 of the Amendment Reg
      AB:

     

    In
      the
      event the Servicer or any subservicer or subcontractor engaged by it is
      terminated, assigns its rights and obligations under, or resigns pursuant to
      the
      terms of this Agreement, or any other applicable agreement in the case of a
      subservicer or subcontractor, as the case may be, such party shall provide
      an
      Annual Statement of Compliance pursuant to this Section 4 or to the related
      section of such other applicable agreement, as the case may be, as to the
      performance of its obligations with respect to the period of time it was subject
      to this Agreement or any other applicable agreement, as the case may be,
      notwithstanding any such termination, assignment or resignation.

     

    (aa)           The
      following is added as the last sentence of Section 5 of the Amendment Reg
      AB:

     

    In
      the event the Servicer or any
      subservicer or subcontractor engaged by it is terminated, assigns its rights
      and
      obligations under, or resigns pursuant to, the terms of this Agreement, or
      any
      other applicable agreement in the case of a subservicer or subcontractor, as
      the
      case may be, such party shall provide an Assessment of Compliance and cause
      to
      be provided an Attestation Report pursuant to this Section 5 or to the related
      section of such other applicable agreement, as the case may be, notwithstanding
      any such termination, assignment or resignation.

     

    Miscellaneous

     

    9.  All
      demands, notices and communications related to the Assigned Loans, the
      Agreements and this AAR Agreement shall be in writing and shall be deemed to
      have been duly given if personally delivered or mailed by registered mail,
      postage prepaid, as follows:

     

    a.           In
      the case of Company,

    

    National
      City Mortgage Co.

    3232
      Newmark Drive

    Miamisburg,
      Ohio 45342

    Attention:
      Mary Beth Criswell

    

    

    b.           In
      the case of Assignor,

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067

    Attention:  Michelle
      Viner

    Facsimile:  (214)
      626-4889

    Email:
      mviner@bear.com

    

    with
      a copy to:

    

    Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Attention:
      Robert Durden

    Telecopier
      No.:  (212) 272-5714

    

    c.           In the
      case of Assignee,

    

    U.S.
      Bank
      National Association, as Trustee

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME 2007-3

    Telecopier
      No.: (617) 603-6638

    

    

    d.             In
      the case of the Master Servicer,

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067-3884

    Attention:  General
      Counsel

    Facsimile:  (214)
      626-4714

    

    10.  This
      AAR
      Agreement shall be construed in accordance with the laws of the State of New
      York, without regard to conflicts of law principles, and the obligations, rights
      and remedies of the parties hereunder shall be determined in accordance with
      such laws.

     

    11.  No
      term
      or provision of this AAR Agreement may be waived or modified unless such waiver
      or modification is in writing and signed by the party against whom such waiver
      or modification is sought to be enforced.

     

    12.  This
      AAR
      Agreement shall inure to the benefit of the successors and assigns of the
      parties hereto. Any entity into which Assignor, Assignee or Company may be
      merged or consolidated shall without the requirement for any further writing,
      be
      deemed Assignor, Assignee or Company, respectively hereunder. Any Master
      Servicer shall be considered a third party beneficiary of this AAR Agreement,
      entitled to all the rights and benefits accruing to any Master Servicer herein
      as if it were a direct party to this AAR Agreement.  A copy of all
      assessments, attestations, reports and certifications required to be delivered
      by the servicer under the Purchase Agreement and this AAR Agreement shall be
      delivered to the Master Servicer by the date(s) specified herein or therein
      and
      where such documents are required to be addressed to such party, such addressee
      shall include the Master Servicer and the Master Servicer shall be entitled
      to
      rely on such documents.

     

    13.  This
      AAR
      Agreement shall survive the conveyance of the Assigned Loans as contemplated
      in
      this AAR Agreement.

     

    14.  This
      AAR
      Agreement may be executed simultaneously in any number of counterparts. Each
      counterpart shall be deemed to be an original and all such counterparts shall
      constitute one and the same instrument.

     

    15.  In
      the
      event that any provision of this AAR Agreement conflicts with any provision
      of
      the Agreements with respect to the Assigned Loans, the terms of this AAR
      Agreement shall control.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this AAR
      Agreement as of the day and year first above written.

     

    
      	
              EMC
                MORTGAGE CORPORATION

              Assignor
                and Master Servicer

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	 
	 
	
              U.S.
                BANK NATIONAL ASSOCIATION,

              not
                in its individual capacity but solely as Trustee

              for
                the holders of Prime Mortgage Trust,

              Mortgage
                Pass-Through Certificates, Series 2007-3,

              as
                Assignee

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	 
	 
	
              NATIONAL
                CITY MORTGAGE CO.

              Company

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	 
	 
	
              Acknowledged
                and Agreed:

               

              STRUCTURED
                ASSET MORTGAGE

              INVESTMENTS
                II INC.

               

            
	 	 
	
              By:

            	 
	
              Name:

            	
              Joseph
                T. Jurkowski, Jr.

            
	
              Title:

            	
              Vice
                President

            

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    ATTACHMENT
      l

    

    ASSIGNED
      LOAN SCHEDULE

    

    (Provided
      upon request)

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    ATTACHMENT
      2

    

    PURCHASE
      AGREEMENT AND TERM SHEET

    

    (Provided
      upon request)

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      1

    EXHIBIT
      J to the Purchase
      Agreement

     

    EMC
      FORM
      - CALCULATION OF GAIN-LOSS DELINQUENT LOANS

    

    EMC
      Master Servicing Calculation of Gain/Loss on Delinquent Loan
      Worksheet

    

     

    Date:                                _________________________

     

    

     

    
      	
              Prepared
                By

            	
              Phone
                Number

            	
              Email
                Address

            
	 	 	 

    

     

    

     

     

    

     

    
      	
              Servicer
                Loan Number

            	
              Servicer
                Address

            	
              EMC
                Loan Number

            
	 	 	 

    

     

    

     

    
      	
              Borrower
                Name

            	
              Property
                Address

            
	 	 

    

     

    

     

    
      	
              Liquidation
                Type

            	
              REO

            	
              Third
                Party

            	
              Short
                Sale

            	
              Charge
                off

            	
              Deed
                In Lieu

            
	 	 	 	 	 	 

    

     

    

     

    
      	
              Has
                this loan been previously modified?

            	
              Yes

            	
              No

            
	
              Has
                this loan been crammed down in a bankruptcy?

            	
              Yes

            	
              No

            

    

     

    If
“Yes”,
      provide amount _______________________________

     

    
      	
                 Liquidation
                and Acquisition Expenses:

            

    

     

     Amounts
      requiring Amortization Schedule for backup:

     

     

    
      	
              Actual
                Unpaid Principal Balance of Mortgage Loan

            	 
	
              Interest
                Accrued at Net Rate Less Servicing Fees

            	 
	
              Accrued
                Servicing Fees

            	 

    

     

    

     

     

    Amounts
      requiring Additional backup:

     

     

    
      	
              Attorney’s
                Fees

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              Attorney’s
                Costs

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              Taxes

            	
              Payment
                history showing disbursements

            	 
	
              Property
                Maintenance

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              Property
                Inspection

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              PMI/Hazard
                Insurance Premiums

            	
              Payment
                history showing disbursements

            	 
	
              Utility
                Expenses

            	
              Payment
                history showing disbursements

            	 
	
              Appraisal/BPO
                Expenses

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              HOA
                Dues

            	
              Payment
                history showing disbursements

            	 
	
              Cash
                For Keys

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              Miscellaneous
                (itemized)

            	
              Requires
                Itemization and supporting detail

            	 
	
              Total
                Expenses

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

            	 

    

     

    

     

     

    
      	
               

            	
              Credits
                to Loan:

            

    

     

    
      	
              Escrow
                Balance/Advance

            	
              Payment
                history showing disbursements and ending balance

            	 
	
              Rental
                Receipts

            	
              Payment
                history showing application of funds to loan

            	 
	
              Hazard
                Claim Proceeds

            	
              Payment
                history showing credit to account

            	 
	
              PMI
                Funds

            	
              EOB
                document

            	 
	
              Government
                Insurance Funds (Part A Funds)

            	
              EOB
                document

            	 
	
              REO
                Proceeds

            	
              HUD
                1 Settlement Statement

            	 
	
              Government
                Insurance Funds (Part B Funds)

            	
              EOB
                document

            	 
	
              Pool
                Insurance Proceeds

            	
              Payment
                history showing credit to account

            	 
	
              Other
                Credits (itemized)

            	
              Payment
                history showing credit to account

            	 
	
              Total
                Credits

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

            	 

    

     

    

     

    
      	
              Total
                Realized Loss (or Amount of Gain)

            	 	
              $________________

            	 

    

    

    

    NOTE:  Do
      not combine or net remit items.  All expenses and credits should be
      documented individually.   Claim packages are due by the fifth
      business day of the month following receipt of liquidation
      proceeds.  Late claims may result in delayed claim
      payment.  The Servicer is responsible to remit all funds pending loss
      approval and /or resolution of any disputed items.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      2

    EXHIBIT
      K to the Purchase Agreement

    

    EMC
      FORM
– REMITTANCE OVERVIEW REPORT

    

    Remittance
      Overview Report:  Provides loan level detail regarding the
      remittance that will be submitted to EMC Master Servicing and contains the
      following data fields in the order below:

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              Deal
                Name

            	
              VARCHAR
                (15)

            
	
              Master
                Servicer Loan Number

            	
              NUMERIC
                (9,0)

            
	
              Current
                Investor Category

            	
              VARCHAR
                (5)

            
	
              Original
                Investor Category

            	
              VARCHAR
                (5)

            
	
              Servicer
                Loan Number

            	
              VARCHAR
                (15)

            
	
              Cutoff
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Loan
                Next Due Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Gross
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Net
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Pending
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Servicing
                Fee Rate

            	
              NUMERIC
                (7,7)

            
	
              MI
                Rate

            	
              NUMERIC
                (7,7)

            
	
              Scheduled
                P&I Amount (P & I Constant)

            	
              NUMERIC
                (12,2)

            
	
              ARM
                Index

            	
              NUMERIC
                (7,7)

            
	
              Pending
                ARM Index

            	
              NUMERIC
                (7,7)

            
	
              Beginning
                Scheduled Principal Balance

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Principal Remitted

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Principal Curtailment Remitted

            	
              NUMERIC
                (12,2)

            
	
              Curtailment
                Adjustment Remitted

            	
              NUMERIC
                (12,2)

            
	
              Liquidation
                Principal Remitted

            	
              NUMERIC
                (12,2)

            
	
              Principal
                Not Advanced (stop advance loans only)

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Gross Interest

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Interest Remitted

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Service Fee Amount

            	
              NUMERIC
                (12,2)

            
	
              Soldiers
                and Sailors Variance

            	
              NUMERIC
                (12,2)

            
	
              Net
                Interest Not Advanced

            	
              NUMERIC
                (12,2)

            
	
              Prepayment
                Penalty Remitted

            	
              NUMERIC
                (12,2)

            
	
              PMI
                Premium Remitted

            	
              NUMERIC
                (12,2)

            
	
              Additional
                Fees Remitted

            	
              NUMERIC
                (12,2)

            
	
              Ending
                Scheduled Balance

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Amount Remitted Total (each loan)

            	
              NUMERIC
                (12,2)

            
	
              Beginning
                Actual Balance

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Principal Collected

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Curtailments Collected

            	
              NUMERIC
                (12,2)

            
	
              Curtailment
                Adjustment Collected

            	
              NUMERIC
                (12,2)

            
	
              Gross
                Interest Collected

            	
              NUMERIC
                (12,2)

            
	
              Net
                Interest Collected

            	
              NUMERIC
                (12,2)

            
	
              Service
                Fee Collected

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Ending Principal Balance

            	
              NUMERIC
                (12,2)

            
	
              Liquidation
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Liquidation
                Type

            	
              VARCHAR
                (1)

            
	
              Gross
                Liquidation Proceeds

            	
              NUMERIC
                (12,2)

            
	
              Liquidation
                Expenses

            	
              NUMERIC
                (12,2)

            
	
              Principal
                and Interest Advanced Balance

            	
              NUMERIC
                (12,2)

            
	
              Delinquent
                Service Fee

            	
              NUMERIC
                (12,2)

            
	
              Calculated
                Loss to Trust

            	
              NUMERIC
                (12,2)

            
	
              Net
                Interest Remitted

            	
              NUMERIC
                (12,2)

            
	
              Collected
                Interest Not Remitted

            	
              NUMERIC
                (12,2)

            
	
              Ending
                Advance Balance

            	
              NUMERIC
                (12,2)

            
	
              Soldiers
                and Sailors Flag

            	
              VARCHAR
                (1)

            
	
              Soldiers
                and Sailors Old Rate

            	
              NUMERIC
                (7,7)

            
	
              Soldiers
                and Sailors Old P & I

            	
              NUMERIC
                (12,2)

            
	
              Modified
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Stop
                Advance Flag

            	 
	
              Stop
                Advance Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              BPO
                Value

            	
              NUMERIC
                (12,2)

            
	
              Cash
                Flow Group

            	
              VARCHAR
                (2)

            
	
              MSP
                Principal Balance

            	
              NUMERIC
                (12,2)

            
	
              Debt
                Forgiven / Charged Off

            	
              NUMERIC
                (12,2)

            
	
              Mortgagor
                PITI Payment

            	
              NUMERIC
                (12,2)

            
	
              Bankruptcy
                Status

            	
              VARCHAR
                (2)

            
	
              Foreclosure
                Status

            	
              VARCHAR
                (2)

            
	
              Modification
                Status

            	 
	
              Interest
                Only Loan

            	
              VARCHAR
                (2)

            
	
              Escrowed
                Loan

            	
              VARCHAR
                (2)

            
	
              Monthly
                Escrow Deposit

            	
              NUMERIC
                (12,2)

            
	
              Escrow
                Balance

            	
              NUMERIC
                (12,2)

            
	
              Escrow
                Advance Balance

            	
              NUMERIC
                (12,2)

            
	
              Restricted
                Escrow Balance

            	
              NUMERIC
                (12,2)

            
	
              Mortgagor
                Recoverable Corporate Expense Balance

            	
              NUMERIC
                (12,2)

            
	
              Non-Recoverable
                Corporate Expense Balance

            	
              NUMERIC
                (12,2)

            
	
              HUD
                235 Loan Status

            	
              VARCHAR
                (2)

            
	
              HUD
                235 Balance

            	
              NUMERIC
                (12,2)

            
	
              Late
                Charge Balance

            	
              NUMERIC
                (12,2)

            
	
              Buydown
                Loan Status

            	
              VARCHAR
                (2)

            
	
              Monthly
                Buydown Amount

            	
              NUMERIC
                (12,2)

            
	
              Monthly
                Buydown Funds Balance

            	
              NUMERIC
                (12,2)

            
	
              Prepayment
                Penalty Amount Waived

            	
              NUMERIC
                (12,2)

            
	
              Prepayment
                Penalty Waived Reason Code

            	
              VARCHAR
                (3)

            
	
              Material
                Breach Status

            	
              VARCHAR
                (3)

            
	
              Material
                Breach Code

            	
              VARCHAR
                (3)

            
	
              Prefunding
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              3rd
                Party
                Recoverable Expenses

            	
              NUMERIC
                (12,2)

            

    

    

    Exhibit
      3

    EXHIBIT
      L to the Purchase Agreement

    

    EMC
      FORM
– REMITTANCE SUMMARY REPORT

    

    Remittance
      Summary Report:  Provides summary data at a deal
      (investor/category) level regarding the remittance that will be submitted to
      EMC
      Master Servicing and contains the following data fields in the order
      below:

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              Deal

            	
              VARCHAR
                (15)

            
	
              Investor

            	
              VARCHAR
                (5)

            
	
              Category

            	
              VARCHAR
                (5)

            
	
              Principal
                Remitted

            	
              NUMERIC
                (15,2)

            
	
              Curtailments
                Remitted

            	
              NUMERIC
                (15,2)

            
	
              Curtailment
                Adjustments Remitted

            	
              NUMERIC
                (15,2)

            
	
              Liquidation
                Proceeds Remitted

            	
              NUMERIC
                (15,2)

            
	
              Principal
                Not Advanced (stop advance loans only)

            	
              NUMERIC
                (15,2)

            
	
              Principal
                Amounts Called/Collapsed

            	
              NUMERIC
                (15,2)

            
	
              Total
                Principal Remitted

            	
              NUMERIC
                (15,2)

            
	
              Interest
                Remitted

            	
              NUMERIC
                (15,2)

            
	
              PMI
                Premiums Remitted

            	
              NUMERIC
                (15,2)

            
	
              Soldiers
                and Sailors Difference

            	
              NUMERIC
                (15,2)

            
	
              Net
                Interest Not Advanced

            	
              NUMERIC
                (15,2)

            
	
              Non
                Comp Interest Remitted

            	
              NUMERIC
                (15,2)

            
	
              Prepayment
                Penalties Remitted

            	
              NUMERIC
                (15,2)

            
	
              Total
                Interest Remitted

            	
              NUMERIC
                (15,2)

            
	
              Arrearage
                Amount Remitted

            	
              NUMERIC
                (15,2)

            
	
              Aggregate
                Loss to Trust

              Total
                Manual Adjustments

            	
              NUMERIC
                (15,2)

            
	
              Debt
                Forgiven/ Charged Off

            	
              NUMERIC
                (15,2)

            
	
              Additional
                Fees Collected

            	
              NUMERIC
                (15,2)

            
	
              Total
                Remittance

            	
              NUMERIC
                (15,2)

            

    

    

    

    Exhibit
      4

    EXHIBIT
      M to the Purchase Agreement

    

    EMC
      FORM
– DEFAULT OVERVIEW REPORT

    

    Default
      Overview Report:  Provides loan level detail regarding the
      defaulted loans that are being serviced and reported to EMC Master
      Servicing.  The report contains the following data fields in the order
      below:

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              Servicer
                loan number

            	
              VARCHAR
                (15)

            
	
              SBO
                loan number

            	
              VARCHAR
                (9)

            
	
              Zip
                Code

            	
              VARCHAR
                (5)

            
	
              Original
                loan amount

            	
              NUMERIC
                (12,2)

            
	
              Original
                value amount

            	
              NUMERIC
                (12,2)

            
	
              Origination
                date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Loan
                type

            	
              VARCHAR
                (2)

            
	
              Actual
                due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Current
                loan amount

            	
              NUMERIC
                (12,2)

            
	
              Corporate
                expense balance

            	
              NUMERIC
                (12,2)

            
	
              Escrow
                balance/advance balance

            	
              NUMERIC
                (12,2)

            
	
              Suspense
                balance

            	
              NUMERIC
                (12,2)

            
	
              Restricted
                escrow balance

            	
              NUMERIC
                (12,2)

            
	
              Current
                Value date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Current
                value amount

            	
              NUMERIC
                (12,2)

            
	
              Current
                value source

            	
              VARCHAR
                (15)

            
	
              VA
                LGC/ FHA Case number

            	
              VARCHAR
                (15)

            
	
              %
                of MI coverage

            	
              NUMERIC
                (7,7)

            
	
              MI
                certificate number

            	
              VARCHAR
                (15)

            
	
              LPMI
                Cost

            	
              NUMERIC
                (7,7)

            
	
              Occupancy
                status

            	
              VARCHAR
                (1)

            
	
              First
                vacancy date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Property
                condition

            	
              VARCHAR
                (2)

            
	
              Property
                type

            	
              VARCHAR
                (2)

            
	
              Delinquency
                flag

            	
              VARCHAR
                (2)

            
	
              Reason
                for default

            	
              VARCHAR
                (2)

            
	
              FNMA
                action code

            	
              VARCHAR
                (3)

            
	
              FNMA
                delinquency reason code

            	
              VARCHAR
                (3)

            
	
              Loss
                mit flag

            	
              VARCHAR
                (2)

            
	
              Loss
                mit type

            	
              VARCHAR
                (2)

            
	
              Loss
                mit approval date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Loss
                mit removal date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                first due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                next due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                plan broken/reinstated/closed date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                plan created date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Foreclosure
                flag

            	
              VARCHAR
                (2)

            
	
              Foreclosure
                attorney referral date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                first legal date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                FC sale scheduled

            	
              DATE
                (MM/DD/YYYY)

            
	
              Foreclosure
                actual sale date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                redemption end date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                eviction complete date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                eviction start date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Bankruptcy
                flag

            	
              VARCHAR
                (2)

            
	
              Actual
                bankruptcy start date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Bankruptcy
                chapter

            	
              VARCHAR
                (2)

            
	
              Bankruptcy
                Case Number

            	
              VARCHAR
                (15)

            
	
              Post
                petition due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                discharge date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                relief/dismissal granted

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                MI claim filed date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                MI claim amount filed

            	
              NUMERIC
                (12,2)

            
	
              MI
                claim amount paid

            	
              NUMERIC
                (12,2)

            
	
              MI
                claim funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Title
                approval letter received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Title
                package HUD/VA date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                27011A transmitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                Part A funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                27011 B transmitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                Part B funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                NOE submitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                first funds received amount

            	
              NUMERIC
                (12,2)

            
	
              VA
                first funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                claim funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                claim submitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                claims funds received amount

            	
              NUMERIC
                (12,2)

            
	
              REO
                flag

            	
              VARCHAR
                (2)

            
	
              REO
                repaired value

            	
              NUMERIC
                (12,2)

            
	
              REO
                value (as is)

            	
              NUMERIC
                (12,2)

            
	
              REO
                value date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                value source

            	
              VARCHAR
                (15)

            
	
              REO
                original list date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                original list price

            	
              NUMERIC
                (12,2)

            
	
              REO
                list price adjustment amount

            	
              NUMERIC
                (12,2)

            
	
              REO
                list price adjustment date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                REO offer received

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                REO offer accepted

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                scheduled close date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                actual closing date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                sales price

            	
              NUMERIC
                (12,2)

            
	
              REO
                net sales proceeds

            	
              NUMERIC
                (12,2)

            
	
              Estimated
                loss

            	
              NUMERIC
                (12,2)

            

    

     

     

     

    Exhibit
      5

    EXHIBIT
      N to the Purchase Agreement

    

    EMC
      FORM
– DELINQUENCY SUMMARY REPORT

    

    Delinquency
      Summary Report:  Provides summary data at the servicer investor
      level regarding loan performance that will be submitted to EMC Master Servicing
      and contains the following data fields in the order below:

    

    
      	
              Field

            	
              Field
                Description

            
	
              Servicer
                Investor Number

               

            	
              VARCHAR
                (5)

            
	
              Mortgage
                Group

               

            	
              VARCHAR
                (1)

            
	
              Performance
                type (Current, 30 days, 60 days, 90+ days, Foreclosure, Bankruptcy
                or
                PIF)

               

            	
              VARCHAR
                (6)

            
	
              Count
                of Loans

               

            	
              NUMERIC
                (10,0)

            
	
              Percent
                of Investor Number

               

            	
              NUMERIC
                (7,7)

            
	
              Deal
                UPB

               

            	
              NUMERIC
                (14,2)

            
	
              Percent
                of Deal UPB

               

            	
              NUMERIC
                (7,7)

            
	
              Arrears
                Balance

               

            	
              NUMERIC
                (14,2)

            
	
              Percent
                of Arrears Balance

               

            	
              NUMERIC
                (7,7)

            
	
              Foreclosure
                Quick Sale

               

            	
              NUMERIC
                (12,2)

            
	
              REO
                Book Value

               

            	
              NUMERIC
                (12,2)

            

    

    

    

    

    

     

    

    Exhibit
      6

    EXHIBIT
      O to the Purchase Agreement

    

    EMC
      FORM
      - MODIFIED LOANS REPORT

    

    Modified
      Loans Report:   Provides loan level data regarding all loans that
      the Servicer has modified with the first modified payment due within thirty
      days
      following the end of the reporting cycle.  The report contains the
      following data fields in the order below:

    

    
      	
              Field
                Description

            	
              Field
                Description

            
	
              Loan

            	
              VARCHAR
                (15)

            
	
              Investor

            	
              VARCHAR
                (5)

            
	
              Original
                Category

            	
              VARCHAR
                (5)

            
	
              Current
                Category

            	
              VARCHAR
                (5)

            
	
              Stop
                Adv Flag

            	
              VARCHAR
                (3)

            
	
              Modified
                Due Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Mod
                Loan Curtailment

            	
              NUMERIC
                (15,2)

            
	
              Mod
                Loan Curt Adjustment

            	
              NUMERIC
                (15,2) 

            
	
              Principal
                Advanced Capped

            	
              NUMERIC
                (15,2) 

            
	
              Net
                Interest Advanced Capped

            	
              NUMERIC
                (15,2)

            
	
              Service
                Fee Advanced Capped

            	
              NUMERIC
                (15,2)

            
	
              Third
                Party Bal Capped

            	
              NUMERIC
                (15,2)

            
	
              Amount
                of Other Capped

            	
              NUMERIC
                (15,2)

            
	
              Borrower
                Interest Contribution

            	
              NUMERIC
                (15,2)

            
	
              Borrower
                Fee Code Arrearage Contribution

            	
              NUMERIC
                (15,2)

            
	
              Borrower
                Principal Contribution

            	
              NUMERIC
                (15,2)

            
	
              Amt
                Forgiven

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Delq Prin Bal

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Delq Int Bal

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Pre Prin Bal

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Pre Int Bal

            	
              NUMERIC
                (15,2)

            
	
              Excess
                Int Adjust

            	
              NUMERIC
                (15,2)

            
	
              Excess
                Interest on Mod

            	
              NUMERIC
                (15,2)

            

    

    

    

    

    Exhibit
      7

    EXHIBIT
      P to the Purchase Agreement

    

    EMC
      FORM
      - CLAIMS SUBMITTED REPORT

    

    Claims
      Submitted Report:  Provides loan level detail regarding claims
      submitted by the servicer’s investor number that will be submitted to EMC Master
      Servicing and contains the following data fields in the order
      below:

    

    
      	
              Field

            	
              Field
                Description

            
	
              Servicer
                Investor Number

               

            	
              VARCHAR
                (5)

            
	
              Servicer
                Investor Category

               

            	
              VARCHAR
                (5)

            
	
              Loan
                Number

               

            	
              VARCHAR
                (15)

            
	
              Mortgage
                Group

               

            	
              VARCHAR
                (1)

            
	
              Liquidation
                Type

               

            	
              VARCHAR
                (1)

            
	
              Escrow
                Balance or Advance Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Corporate
                Expense Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Restricted
                Escrow Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Replacement
                Reserve Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Suspense
                Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Third
                Party Expense Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Charge
                Off Amount

               

            	
              NUMERIC
                (12,2)

            
	
              Side
                Note Collections

               

            	
              NUMERIC
                (12,2)

            
	
              Claim
                Amount Submitted

               

            	
              NUMERIC
                (12,2)

            

    

    

    

    Exhibit
      8

    EXHIBIT
      Q to the Purchase Agreement

    

    EMC
      FORM
      - LOSS SEVERITY SUMMARY REPORT

    

    Loss
      Severity Summary Report:  Provides summary data at the deal level
      regarding loss severity that will be submitted to EMC Master Servicing and
      contains the following data fields in the order below:

    

    
      	
              Field

            	
              Field
                Description

               

            
	
              Month
                End

            	
              DATE
                (MM/DD/YYYY)

            
	
              Deal
                Name

            	
              VARCHAR
                (15)

            
	
              Servicer
                Investor Number

            	
              VARCHAR
                (5)

            
	
              Servicer
                Investor Category

            	
              VARCHAR
                (5)

            
	
              Mortgage
                Group

            	
              VARCHAR
                (1)

            
	
              Loan
                Number

            	
              VARCHAR
                (15)

            
	
              Liquidation
                Type

            	
              VARCHAR
                (1)

            
	
              Loan
                Due Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              PIF
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Gross
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Net
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Service
                Fee Rate

            	
              NUMERIC
                (7,7)

            
	
              P
                & I Constant

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Beginning Balance

            	
              NUMERIC
                (12,2)

            
	
              Arrearage
                Balance

            	
              NUMERIC
                (12,2)

            
	
              Total
                Legal and Other Expenses

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Advanced Interest

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Liquidated Amount

            	
              NUMERIC
                (12,2)

            
	
              Gross
                Liquidation Proceeds

            	
              NUMERIC
                (12,2)

            
	
              P
                & I Advance Balance

            	
              NUMERIC
                (12,2)

            
	
              Delinquent
                Service Fee

            	
              NUMERIC
                (12,2)

            
	
              Net
                Liquidation Proceeds

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Net Interest

            	
              NUMERIC
                (12,2)

            
	
              Net
                Liquidated Funds Remitted

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss (Gain) Amount

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss (Gain) to Trust

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss (Gain) to Servicer

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss Severity %

            	
              NUMERIC
                (7,7)

            
	
              Total
                Loss Severity % to Trust

            	
              NUMERIC
                (7,7)

            
	
              Total
                Liquidated Remitted

            	
              NUMERIC
                (12,2)

            
	
              Claim
                on Trust Loss

            	
              NUMERIC
                (12,2)

            
	
              Claim
                on Servicer Loss

            	
              NUMERIC
                (12,2)

            
	
              Total
                Claim Amount

            	
              NUMERIC
                (12,2)

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      J-3

    

    FORM
      OF
      MID AMERICA ASSIGNMENT AGREEMENT

     

     

    

     

    ASSIGNMENT,
      ASSUMPTION AND RECOGNITION AGREEMENT

     

    This
      is
      an Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) made
      as of August 31, 2007, among EMC Mortgage Corporation (the “Assignor”), U.S.
      Bank National Association, not individually but solely as trustee for the
      holders of Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series
      2007-3 (the “Assignee”) and Mid America Bank, fsb (the “Company”).

     

    In
      consideration of the mutual promises contained herein the parties hereto agree
      that the residential mortgage loans (the “Assigned Loans”) listed on Attachment
      1 annexed hereto purchased by the Assignor from the Company and now serviced
      by
      the Company for Assignor and its successors and assigns pursuant to the
      Purchase, Warranties and Servicing Agreement, dated as of February 1, 2006,
      between Assignor and the Company, as amended by Amendment No. 1,
      dated  as February 1, 2006 (the “Purchase Agreement”) shall be subject
      to the terms of this AAR Agreement. Capitalized terms used herein but not
      defined shall have the meanings ascribed to them in the Purchase
      Agreement.

     

    Assignment
      and Assumption

     

    Except
      as
      expressly provided for herein, the Assignor hereby grants, transfers and assigns
      to the Assignee all of its right, title and interest as in, to and under (a)
      the
      Assigned Loans and (b) the Purchase Agreement with respect to the Assigned
      Loans; provided, however, that the Assignor is not assigning to the Assignee
      any
      of its right, title or interest, in, to and under the Purchase Agreement with
      respect to any mortgage loan other than the Assigned Loans listed on Attachment
      1.  Notwithstanding anything to the contrary contained herein, the
      Assignor specifically reserves and does not assign to the Assignee any right,
      title and interest in, to or under the representations and warranties contained
      in Section 3.01 and Section 3.02 of the Purchase Agreement, and any obligation
      of the Company to cure, repurchase or substitute for a mortgage loan and to
      indemnify the Assignor with respect to a breach of such representations and
      warranties pursuant to Section 3.03 and Section 8.01 of the Purchase Agreement,
      and the Assignor is retaining the right to enforce the representations and
      warranties and the obligations of the Company set forth in those sections
      against the Company.  In addition, the Assignor specifically reserves
      and does not assign to the Assignee any right, title and interest in, to or
      under (a) Section 2.09 of the Purchase Agreement and (b) Section 4.03 and
      Section 4.13 of the Purchase Agreement (but only insofar as such Sections
      grant
      to the Purchaser the right to terminate the servicing of defaulted Mortgage
      Loans and/or REO Properties by the Company), and the Assignor is retaining
      the
      right to enforce such sections against the Company.  Except as
      is otherwise expressly provided herein, the Assignor makes no representations,
      warranties or covenants to the Assignee and the Assignee acknowledges that
      the
      Assignor has no obligations to the Assignee under the terms of the Purchase
      Agreement or otherwise relating to the transaction contemplated herein
      (including, but not limited to, any obligation to indemnify the
      Assignee).

     

    Representations,
      Warranties and Covenants

     

    1.  Assignor
      warrants and represents to Assignee and the Company as of the date
      hereof:

     

    (a)  Attached
      hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
      which agreement is in full force and effect as of the date hereof and the
      provisions of which have not been waived, amended or modified in any respect,
      nor has any notice of termination been given thereunder;

     

    (b)  Assignor
      is the lawful owner of the Assigned Loans with full right to transfer the
      Assigned Loans and any and all of its interests, rights and obligations under
      the Purchase Agreement as they relate to the Assigned Loans, free and clear
      from
      any and all claims and encumbrances; and upon the transfer of the Assigned
      Loans
      to Assignee as contemplated herein, Assignee shall have good title to each
      and
      every Assigned Loan, as well as any and all of Assignor’s interests, rights and
      obligations under the Purchase Agreement as they relate to the Assigned Loans,
      free and clear of any and all liens, claims and encumbrances;

     

    (c)  There
      are
      no offsets, counterclaims or other defenses available to the Company with
      respect to the Assigned Loans or the Purchase Agreement;

     

    (d)  Assignor
      has no knowledge of, and has not received notice of, any waivers under, or
      any
      modification of, any Assigned Loan;

     

    (e)  Assignor
      is duly organized, validly existing and in good standing under the laws of
      the
      jurisdiction of its incorporation, and has all requisite power and authority
      to
      acquire, own and sell the Assigned Loans;

     

    (f)  Assignor
      has full corporate power and authority to execute, deliver and perform its
      obligations under this AAR Agreement, and to consummate the transactions set
      forth herein.  The consummation of the transactions contemplated by
      this AAR Agreement is in the ordinary course of Assignor’s business and will not
      conflict with, or result in a breach of, any of the terms, conditions or
      provisions of Assignor’s charter or by-laws or any legal restriction, or any
      material agreement or instrument to which Assignor is now a party or by which
      it
      is bound, or result in the violation of any law, rule, regulation, order,
      judgment or decree to which Assignor or its property is subject.  The
      execution, delivery and performance by Assignor of this AAR Agreement and the
      consummation by it of the transactions contemplated hereby, have been duly
      authorized by all necessary corporate action on the part of
      Assignor.  This AAR Agreement has been duly executed and delivered by
      Assignor and, upon the due authorization, execution and delivery by Assignee
      and
      the Company, will constitute the valid and legally binding obligation of
      Assignor enforceable against Assignor in accordance with its terms except as
      enforceability may be limited by bankruptcy, reorganization, insolvency,
      moratorium or other similar laws now or hereafter in effect relating to
      creditors’ rights generally, and by general principles of equity regardless of
      whether enforceability is considered in a proceeding in equity or at
      law;

     

    (g)  No
      consent, approval, order or authorization of, or declaration, filing or
      registration with, any governmental entity is required to be obtained or made
      by
      Assignor in connection with the execution, delivery or performance by Assignor
      of this AAR Agreement, or the consummation by it of the transactions
      contemplated hereby;

     

    (h)  Neither
      Assignor nor anyone acting on its behalf has offered, transferred, pledged,
      sold
      or otherwise disposed of the Assigned Loans or any interest in the Assigned
      Loans, or solicited any offer to buy or accept a transfer, pledge or other
      disposition of the Assigned Loans, or any interest in the Assigned Loans or
      otherwise approached or negotiated with respect to the Assigned Loans, or any
      interest in the Assigned Loans 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 which would constitute a distribution of the Assigned
      Loans under the Securities Act of 1933, as amended (the “1933 Act”) or which
      would render the disposition of the Assigned Loans a violation of Section 5
      of
      the 1933 Act or require registration pursuant thereto;

     

    (i)  The
      Assignor has received from the Company, and has delivered to the Assignee,
      all
      documents required to be delivered to Assignor by the Company prior to the
      date
      hereof pursuant to the Purchase Agreement with respect to the Assigned Loans
      and
      has not received, and has not requested from the Company, any additional
      documents; and

     

    (j)  There
      is
      no action, suit, proceeding, investigation or litigation pending or, to
      Assignor's knowledge, threatened, which either in any instance or in the
      aggregate, if determined adversely to Assignor, would adversely affect
      Assignor's execution or delivery of, or the enforceability of, this AAR
      Agreement, or the Assignor's ability to perform its obligations under this
      AAR
      Agreement.

     

    2.  Assignee
      warrants and represents to, and covenants with, Assignor and the Company as
      of
      the date hereof:

     

    (a)  Assignee
      is duly organized, validly existing and in good standing under the laws of
      the
      jurisdiction of its organization and has all requisite power and authority
      to
      hold the Assigned Loans as trustee on behalf of the holders of the Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3;

     

    (b)  Assignee
      has full corporate power and authority to execute, deliver and perform its
      obligations under this AAR Agreement, and to consummate the transactions set
      forth herein.  The consummation of the transactions contemplated by
      this AAR Agreement is in the ordinary course of Assignee’s business and will not
      conflict with, or result in a breach of, any of the terms, conditions or
      provisions of Assignee’s charter or by-laws or any legal restriction, or any
      material agreement or instrument to which Assignee is now a party or by which
      it
      is bound, or result in the violation of any law, rule, regulation, order,
      judgment or decree to which Assignee or its property is subject.  The
      execution, delivery and performance by Assignee of this AAR Agreement and the
      consummation by it of the transactions contemplated hereby, have been duly
      authorized by all necessary corporate action on part of Assignee. This AAR
      Agreement has been duly executed and delivered by Assignee and, upon the due
      authorization, execution and delivery by Assignor and the Company, will
      constitute the valid and legally binding obligation of Assignee enforceable
      against Assignee in accordance with its terms except as enforceability may
      be
      limited by bankruptcy, reorganization, insolvency, moratorium or other similar
      laws now or hereafter in effect relating to creditors’ rights generally, and by
      general principles of equity regardless of whether enforceability is considered
      in a proceeding in equity or at law;

     

    (c)  No
      consent, approval, order or authorization of, or declaration, filing or
      registration with, any governmental entity is required to be obtained or made
      by
      Assignee in connection with the execution, delivery or performance by Assignee
      of this AAR Agreement, or the consummation by it of the transactions
      contemplated hereby;

     

    (d)  There
      is
      no action, suit, proceeding, investigation or litigation pending or, to
      Assignee's knowledge, threatened, which either in any instance or in the
      aggregate, if determined adversely to Assignee, would adversely affect
      Assignee's execution or delivery of, or the enforceability of, this AAR
      Agreement, or the Assignee's ability to perform its obligations under this
      AAR
      Agreement; and

     

    (e)  Assignee
      assumes for the benefit of each of the Assignor and the Company all of the
      rights of the Purchaser under the Purchase Agreement with respect to the
      Assigned Loans, except as set forth herein.

     

    3.  The
      Company warrants and represents to, and covenant with, Assignor and Assignee
      as
      of the date hereof:

     

    (a)  Attached
      hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement,
      which agreement is in full force and effect as of the date hereof and the
      provisions of which have not been waived, amended or modified in any respect,
      nor has any notice of termination been given thereunder;

     

    (b)  The
      Company is duly organized, validly existing and in good standing under the
      laws
      of the jurisdiction of its incorporation, and has all requisite power and
      authority to service the Assigned Loans and otherwise to perform its obligations
      under the Purchase Agreement;

     

    (c)  The
      Company has full corporate power and authority to execute, deliver and perform
      its obligations under this AAR Agreement, and to consummate the transactions
      set
      forth herein.  The consummation of the transactions contemplated by
      this AAR Agreement is in the ordinary course of the Company’s business and will
      not conflict with, or result in a breach of, any of the terms, conditions or
      provisions of the Company’s charter or by-laws or any legal restriction, or any
      material agreement or instrument to which the Company is now a party or by
      which
      it is bound, or result in the violation of any law, rule, regulation, order,
      judgment or decree to which the Company or its property is
      subject.  The execution, delivery and performance by the Company of
      this AAR Agreement and the consummation by it of the transactions contemplated
      hereby, have been duly authorized by all necessary corporate action on the
      part
      of the Company. This AAR Agreement has been duly executed and delivered by
      the
      Company, and, upon the due authorization, execution and delivery by Assignor
      and
      Assignee, will constitute the valid and legally binding obligation of the
      Company, enforceable against the Company in accordance with its terms except
      as
      enforceability may be limited by bankruptcy, reorganization, insolvency,
      moratorium or other similar laws now or hereafter in effect relating to
      creditors’ rights generally, and by general principles of equity regardless of
      whether enforceability is considered in a proceeding in equity or at
      law;

     

    (d)  No
      consent, approval, order or authorization of, or declaration, filing or
      registration with, any governmental entity is required to be obtained or made
      by
      the Company in connection with the execution, delivery or performance by the
      Company of this AAR Agreement, or the consummation by it of the transactions
      contemplated hereby;

     

    (e)  The
      Company shall establish a Custodial Account and an Escrow Account under the
      Purchase Agreement in favor of the Assignee with respect to the Assigned Loans
      separate from the Custodial Account and Escrow Account previously established
      under the Purchase Agreement in favor of Assignor;

     

    (f)  No
      event has occurred from the Closing
      Date to the date hereof which would render the representations and warranties
      as
      to the related Assigned Loans made by the Company in Sections 3.01 and 3.02
      of
      the Purchase Agreement to be untrue in any material respect;

     

    (g)  Neither
      this AAR Agreement nor any certification, statement, report or other agreement,
      document or instrument furnished or to be furnished by the Company pursuant
      to
      this AAR Agreement contains or will contain any materially untrue statement
      of
      fact or omits or will omit to state a fact necessary to make the statements
      contained therein not misleading; and

     

    (h)  The
      Company hereby restates the representations and warranties set forth in Section
      3.01(p) of the Purchase Agreement.

     

    Notwithstanding
      anything to the contrary in the Agreement, the Company shall (or shall cause
      any
      Third-Party Originator to) (i) immediately notify Assignor and Structured Asset
      Mortgage Investment II Inc. (“SAMI II”) in writing of (A) legal proceedings
      pending against the Company, or proceedings known to be contemplated by
      governmental authorities against the Company which in the judgment of the
      Company would be, in each case, material to purchasers of securities backed
      by
      the Assigned Loans, (B) any affiliations or relationships of the type described
      in Item 1119(b) of Regulation AB that develop following the date hereof between
      the Company and any of the above listed parties or other parties identified
      in
      writing by the Assignor or SAMI II with respect to the Securitization
      Transaction and (ii) provide to the Assignor and SAMI II a description of such
      proceedings, affiliations or relationships.

    

    Each
      such
      notice/update should be sent to by e-mail to
      regABnotifications@bear.com.  Additionally, all such notifications,
      other than those pursuant to (i)(A) above, should be sent to:

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas 75067-3884

    Attention:  Michelle
      Viner

    Facsimile:  (214)
      626-4889

    Email:
      mviner@bear.com

    

    With
      a
      copy to:

     

    Structured
      Asset Mortgage Investment II Inc. 

    c/o
      Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue, 3rd Floor

    New,
      York, NY 10179

    Attention:  Global
      Credit Administration

    Facsimile:  (212)
      272-6564

     

    Notifications
      pursuant to (i)(A) above should be sent to:

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067-3884

    Attention:
      General Counsel

    Facsimile:  (214)
      626-4714

     

    With
      copies to:

     

    Structured
      Asset Mortgage Investment II Inc. c/o

    Bear,
      Stearns & Co. Inc.

    383
      Madison Avenue, 3rd Floor

    New,
      York, NY 10179

    Attention:  Global
      Credit Administration

    Facsimile:  (212)
      272-6564

    

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      TX 75067-3884

    Attention:  Michelle
      Viner

    Facsimile:  (214)
      626-4889

    Email:
      mviner@bear.com

    

    4.  Assignor
      hereby agrees to indemnify and hold the Assignee (and its successors and
      assigns) harmless against any and all claims, losses, penalties, fines,
      forfeitures, legal fees and related costs, judgments, and any other costs,
      fees
      and expenses that Assignee (and its successors and assigns) may sustain in
      any
      way related to any breach of the representations or warranties of Assignor
      set
      forth in this AAR Agreement or the breach of any covenant or condition contained
      herein.

     

    Recognition
      of Assignee

     

    5.  From
      and
      after the date hereof, the Company shall recognize Assignee as owner of the
      Assigned Loans, and acknowledges that the Assigned Loans will be part of a
      REMIC, and will service the Assigned Loans in accordance with the Purchase
      Agreement (as modified by this AAR Agreement). It is the intention of Assignor,
      the Company and Assignee that this AAR Agreement shall be binding upon and
      for
      the benefit of the respective successors and assigns of the parties hereto.
      Neither the Company nor Assignor shall amend or agree to amend, modify, waive,
      or otherwise alter any of the terms or provisions of the Purchase Agreement
      which amendment, modification, waiver or other alteration would in any way
      affect the Assigned Loans without the prior written consent of
      Assignee.

     

    The
      Company shall prepare for and deliver to the Assignee and the Master Servicer
      (and the securities administrator, if any) a statement with respect to each
      mortgaged property acquired through foreclosure or deed-in-lieu of foreclosure
      in connection with a defaulted Assigned Loan (“REO Property”) that has been
      rented showing the aggregate rental income received and all expenses incurred
      in
      connection with the management and maintenance of such REO Property at such
      times as is necessary to enable the Assignee (or the securities administrator,
      if any) to comply with the reporting requirements of the REMIC provisions of
      the
      Code. The net monthly rental income, if any, from such REO Property shall be
      deposited in the related collection account no later than the close of business
      on each determination date.  The Company shall perform, or caused to
      be performed, the tax reporting and withholding related to foreclosures,
      abandonments and cancellation of indebtedness income as specified by Sections
      1445, 6050J and 6050P of the Code by preparing and filing such tax and
      information returns, as may be required.  In the event that the Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 acquires
      any
      REO Property as aforesaid or otherwise in connection with a default or default
      becoming reasonably foreseeable on an Assigned Loan, the Company shall cause
      such REO Property to be disposed prior to three years after its acquisition
      by
      the Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3
      or,
      at the expense of the Prime Mortgage Trust, Mortgage Pass-Through Certificates,
      Series 2007-3, request more than 60 days prior to the day on which such
      three-year period would otherwise expire, an extension of the three-year grace
      period unless the Assignee (or the securities administrator, if any) shall
      have
      been supplied with an opinion of counsel addressed to the Assignee (and the
      securities administrator, if any) rendered by nationally recognized tax counsel
      specializing in such matters (such opinion not to be an expense of the Trustee
      or the Securities Administrator) to the effect that the holding by the Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 of such REO
      Property subsequent to such three-year period will not result in the imposition
      of taxes on “prohibited transactions” of any REMIC as defined in Section 860F of
      the Code or cause any REMIC to fail to qualify as a REMIC, in which case the
      Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3 may
      continue to hold such REO Property (subject to any conditions contained in
      such
      opinion of counsel). Notwithstanding any other provision of the Servicing
      Agreement, no REO Property acquired by the Prime Mortgage Trust, Mortgage
      Pass-Through Certificates, Series 2007-3 shall be rented (or allowed to continue
      to be rented) or otherwise used for the production of income by or on behalf
      of
      the Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3
      in
      such a manner or pursuant to any terms that would (i) cause such REO Property
      to
      fail to qualify as “foreclosure property” within the meaning of Section
      860G(a)(8) of the Code or (ii) subject any REMIC to the imposition of any
      federal, state or local income taxes on the income earned from such REO Property
      under Section 860G(c) of the Code or otherwise, unless the Company has agreed
      to
      indemnify and hold harmless the Prime Mortgage Trust, Mortgage Pass-Through
      Certificates, Series 2007-3 with respect to the imposition of any such
      taxes.

     

    6.  Notwithstanding
      any term hereof to the contrary, it is expressly understood and agreed to by
      the
      parties hereto that the execution and delivery of the AAR Agreement by the
      Assignee is solely in its capacity as trustee for Prime Mortgage Trust, Mortgage
      Pass-Through Certificates, Series 2007-3 and not individually, and any recourse
      against the Assignee in respect of any obligations it may have under or pursuant
      to the terms of this AAR Agreement shall be limited solely to the assets it
      may
      hold as trustee of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
      Series 2007-3.

     

    7.  SAMI
      II
      and the Assignor each agree to indemnify and hold harmless the Company, each
      director of the Company, each officer of the Company and each person, if any,
      who controls the Company within the meaning of Section 15 of the 1933 Act
      (collectively, the “Company Indemnified Party”) against any and all losses,
      claims, expenses, damages or liabilities to which the Company Indemnified Party
      may become subject, under the 1933 Act or otherwise, including without
      limitation, with respect to disputes between parties, insofar as such losses,
      claims, expenses, damages or liabilities (or actions in respect thereof) arise
      out of or are based upon any untrue statement or alleged untrue statement of
      any
      material fact contained in the Prospectus Supplement, or the omission or the
      alleged omission to state in the Prospectus Supplement a material fact necessary
      in order to make the statements therein not misleading, in each case to the
      extent, but only to the extent, that such untrue statement or alleged untrue
      statement or omission or alleged omission is other than the Company
      Information.

     

    Modification
      of Purchase Agreement

     

    8.  The
      Company and Assignor hereby amend the Purchase Agreement as
      follows:

     

    (a)  The
      definition of Eligible Account is deleted in its entirety and replaced with
      the
      following:

     

    Eligible
      Account: Any of (i) an account or accounts maintained with a federal or
      state chartered depository institution or trust company, the long-term unsecured
      debt obligations and short-term unsecured debt obligations of which (or, in
      the
      case of a depository institution or trust company that is the principal
      subsidiary of a holding company, the debt obligations of such holding company,
      so long as Moody’s is not a Rating Agency) are rated by each Rating Agency in
      one of its two highest long-term and its highest short-term rating categories,
      respectively, at the time any amounts are held on deposit therein; provided,
      that following a downgrade, withdrawal, or suspension of such institution's
      rating  as set forth above, each account shall promptly (and in any
      case within not more than 30 calendar days) be moved to one or more segregated
      trust accounts in the trust department of such institution, or to an account
      at
      another institution that complies with the above requirements, or (ii) a trust
      account or accounts maintained with the corporate trust department of a federal
      or state chartered depository institution or trust company having capital and
      surplus of not less than $50,000,000, acting in its fiduciary capacity or (iii)
      any other account acceptable to the Rating Agencies, as evidenced in writing.
      Eligible Accounts may bear interest, and may include, if otherwise qualified
      under this definition, accounts maintained with the Trustee.  This
      Agreement may be amended to reduce the rating requirements in clause (i) above
      pursuant to Section 11.02, provided that, the Person requesting such amendment
      obtains a letter from each Rating Agency stating that such amendment would
      not
      result in the downgrading or withdrawal of the respective ratings then assigned
      to the related securities.

     

    (b)  The
      definition of Principal Prepayment is deleted in its entirety and replaced
      with
      the following:

     

    Principal
      Prepayment:  Any payment or other recovery of principal on a
      Mortgage Loan in full or partial which is received in advance of its scheduled
      Due Date, including any prepayment penalty or premium thereon,  and
      which 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. Partial principal Prepayments shall be applied in accordance
      with
      the terms of the related Mortgage Note.

     

    (c)  The
      definition of Servicing Fee Rate is deleted in its entirety and replaced with
      the following:

     

    Servicing
      Fee Rate:  A per annum rate equal to 0.250%.

     

    (d)  The
      following definition shall be added to Section 1.01 of the Purchase
      Agreement:

     

    Servicing
      Modification: With respect to any Mortgage Loan that is in default or
      imminent default or as otherwise set forth in Section 4.01, any modification
      which is effected by the Company in accordance with the terms of this Agreement
      that results in any change to the payment terms of the Mortgage
      Loan.

     

    (e)  Section
      4.01 of the Purchase Agreement is hereby amended by changing the first sentence
      of the second paragraph to the following:

     

    Consistent
      with and in addition to the terms set forth in this Agreement, if a Mortgage
      Loan is in default or such default is reasonably foreseeable, the Company may
      waive, modify or vary any term of any Mortgage Loan or consent to the
      postponement of strict compliance with any such term or in any manner grant
      indulgence to any Mortgagor, including without limitation, to (1) capitalize
      any
      amounts owing on the Mortgage Loan by adding such amount to the outstanding
      principal balance of the Mortgage Loan, (2) defer such amounts to a later date
      or the final payment date of such Mortgage Loan, (3) extend the maturity of
      any
      such Mortgage Loan, (4) amend the related Mortgage Loan to reduce the related
      Mortgage Interest Rate with respect to any Mortgage Loan, (5) convert the
      Mortgage Interest Rate on any Mortgage Loan from a fixed rate to an adjustable
      rate or vice versa, (6) with respect to a Mortgage Loan with an initial fixed
      rate period followed by an adjustable rate period, extend the fixed period
      and
      reduce the adjustable rate period, and/or (7) forgive the amount of any
      interest, principal or servicing advances owed by the related Mortgagor;
      provided that, in the Company's reasonable and prudent determination, such
      waiver, modification, postponement or indulgence: (A) is not materially adverse
      to the interests of the Purchaser on a present value basis using reasonable
      assumptions (including taking into account any estimated realized loss (as
      defined in the related pooling and servicing agreement) that might result absent
      such action); and (B) does not amend the related Mortgage Note to extend the
      maturity thereof later than the date of the Latest Possible Maturity Date (as
      such term is defined in the related pooling and servicing agreement); provided,
      further, with respect to any Mortgage Loan that is not in default or if default
      is not reasonably foreseeable, unless the Company has provided to the Purchaser
      a certification addressed to the Purchaser, based on the advice of counsel
      or
      certified public accountants that have a national reputation with respect to
      taxation of REMICs that a modification of such Mortgage Loan will not result
      in
      the imposition of taxes on or disqualify from REMIC status any of the REMICs
      and
      has obtained the prior written consent of the Purchaser, the Company shall
      not
      permit any modification with respect to any Mortgage
      Loan.  Notwithstanding the foregoing, for any waiver, modification,
      postponement or indulgence (not including any partial releases, assumptions
      of
      mortgages or modifications of any Mortgage Loan that is done in connection
      with
      compliance with the Relief Act) which the Company reasonably anticipates may
      result in a realized loss of 20% or more of the outstanding principal balance
      of
      a Mortgage Loan, the Company shall present such proposed waiver, modification,
      postponement or indulgence, together with any supporting documentation, to
      the
      Master Servicer for consideration and approval.  The Company shall
      submit all waivers, modifications or variances of the terms of any Mortgage
      Loan
      with respect to partial releases, assumptions of mortgages or for modifications
      done in furtherance of compliance with Relief Act, together with any supporting
      documentation, to the Master Servicer for consideration and approval.

     

    (f)  Section
      4.01 of the Purchase Agreement is hereby amended by inserting the following
      as
      the third paragraph:

     

    In
      connection with any such Servicing Modification, the Company may reimburse
      itself from the Trust for any outstanding Monthly Advances and Servicing
      Advances in the same calendar month as the Servicing Modification to the extent
      that such Monthly Advances or Servicing Advances are reimbursable to the Company
      and to the extent of the related principal portion of funds available for the
      related Distribution Date (as defined in the related pooling and servicing
      agreement). To the extent there are not sufficient principal funds available
      on
      the related Distribution Date to reimburse the Company for such Monthly Advances
      and Servicing Advances, the Company may reimburse itself on a first priority
      basis from related principal funds that are available on future Distribution
      Dates. If any mortgagor’s obligation to repay any outstanding amounts due under
      the terms of the related Mortgage Loan for which a Monthly Advance or Servicing
      Advance has been made by the Company is forgiven, any such Monthly Advance
      or
      Servicing Advance will be treated as a realized loss which will be incurred
      on
      the Distribution Date related to the calendar month during which the Servicing
      Modification occurred.

     

    (g)  Section
      4.03 is hereby amended by adding the following paragraph to the end of the
      section:

     

    Not
      later
      than 2:00 p.m. Central Standard Time on each Remittance Date, the Company shall
      remit to the Master Servicer all Liquidation Proceeds and Insurance Proceeds,
      along with any Servicing Advances and Advances, such that the sum of the
      foregoing at least equals in the aggregate the outstanding Stated Principal
      Balance of the related Mortgage Loans.  The Master Servicer shall
      fully reimburse the Company for Servicing Advances and Monthly Advances related
      to Liquidation Proceeds on the Remittance Date after such Servicing Advances
      and
      Monthly Advances are approved; provided, however, the Company must provide
      documentation in the form of Exhibit P hereto to the Master Servicer seeking
      approval within 90 days of final liquidation of a Mortgage
      Loan.   The Master Servicer shall provide such approval or denial
      to the Company no later than thirty (30) days after receipt of such claim;
      provided, however, such claim must be complete with all supporting
      documentation.  The Company’s obligation to make such Servicing
      Advances and Monthly Advances as to any Mortgage Loan shall continue through
      the
      final liquidation of the Mortgaged Property, unless the Company deems such
      advance nonrecoverable and submits an officer’s certificate in accordance with
      Section 5.03.

     

    (h)  Sections
      4.05(vi), 4.05(vii), 4.05(vi) and 4.05(vii) are hereby renumbered as Sections
      4.05(vi), 4.05(vii), 4.05(viii) and 4.05(ix).

     

    (i)  Section
      4.05(ix) is hereby deleted in its entirety and replaced with the
      following:

     

    “(ix)to
      reimburse itself for Nonrecoverable Advances, to the extent not reimbursed
      pursuant to clause (ii) or clause (iii), upon prior approval from the Master
      Servicer.  The Master Servicer shall provide such approval or denial
      to the Company no later than thirty (30) days after receipt of such claim;
      provided, however, such claim must be complete with all supporting
      documentation.”

     

    (j)  The
      following is added as the last paragraph of Section 4.05:

     

    “Notwithstanding
      the foregoing, the Company’s right to reimbursement pursuant to clauses (ii),
      (iii) and (ix) above shall be subject to the prior approval of the Master
      Servicer.  The Master Servicer shall provide such approval or denial
      to the Company no later than thirty (30) days after receipt of such claim;
      provided, however, the Company must submit such claim with all supporting
      documentation in order for the Master Servicer to approve or deny such claim
      within such time period.  Pending such approval, such funds shall be
      remitted by the Company to the Master Servicer to the extent such funds, in
      addition to any Servicing Advances and Advances, constitute an amount equal
      to
      the outstanding Stated Principal Balance of the related Mortgage Loan plus
      any
      accrued interest due and owing on such Mortgage Loan.”

     

    (k)  The
      following is added to the first sentence of the fourth paragraph of Section
      4.13
      of the Purchase Agreement:

     

    “;
      provided, however, that any REO property shall be disposed of by the Company
      before the close of the third taxable year following the taxable year in which
      the Mortgage Loan became an REO property, unless the Company is otherwise
      directed by the Assignee.”

     

    (l)  The
      first
      sentence of Section 5.01 of the Purchase Agreement is hereby amended by
      replacing the word “On” with the following:

     

    “Not
      later than 2:00 p.m. Central Standard Time on”

     

    (m)  Section
      5.02 of the Purchase Agreement is hereby amended by deleting “no later than the
      fifth Business Day of the following month in hard copy, and” after “mutually
      agreed upon by both Purchaser and the Company, and” in the first
      paragraph.

     

    (n)  The
      second sentence of the second paragraph of Section 5.02 of the Purchase
      Agreement is hereby deleted and replaced with the following:

     

    The
      Company shall also provide a monthly report in the form of Exhibit E and
Exhibit S, with respect to remittances, Exhibit P, with respect to
      realized losses and gains, Exhibit F, with respect to defaulted mortgage
      loans, Exhibit T, with respect to modified mortgage loans, Exhibit
      U, with respect to claims submitted and Exhibit V, with respect to
      loss severity, with each such report. For a period of 90 days from the date
      hereof, the Company may provide monthly reports in other formats as mutually
      agreed upon between the Company and the Master Servicer.  After the
      expiration of that time, the Company shall provide the reports in the forms
      of
      the exhibits attached hereto.

     

    (o)  Section
      11.04 of the Purchase Agreement is deleted in its entirety and replaced with
      the
      following:

     

    Section
      11.04  Governing Law.

     

    This
      Agreement shall be governed by and
      construed in accordance with the laws of the State of New York without giving
      effect to principles of conflicts of laws (other than Section 5-1401 of the
      New
      York General Obligations Law) and except to the extent preempted by Federal
      law
      and the obligations, rights and remedies of the parties hereunder shall be
      determined in accordance with such laws.

     

    (p)  Section
      11.18 (ix) is hereby amended effective as of the date hereof by changing the
      reference in Section 11.18 (ix) from “15 calendar days” to “30 calendar
      days”.

     

    (q)  The
      Purchase Agreement is hereby amended as of the date hereof by deleting Exhibit
      F
      in its entirety and inserting a new Exhibit F, a copy of which is annexed hereto
      as Exhibit 1.

     

    (r)  The
      Purchase Agreement is hereby amended as of the date hereof by deleting Exhibit
      P
      in its entirety and inserting a new Exhibit P, a copy of which is annexed hereto
      as Exhibit 2.

     

    (s)  The
      Purchase Agreement is hereby amended as of the date hereof by deleting Exhibit
      E
      in its entirety and inserting a new Exhibit E, a copy of which is annexed hereto
      as Exhibit 3.

     

    (t)  The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit S, a copy of which is annexed hereto as Exhibit 4.

     

    (u)  The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit T, a copy of which is annexed hereto as Exhibit 5.

     

    (v)  The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit U, a copy of which is annexed hereto as Exhibit 6.

     

    (w)  The
      Purchase Agreement is hereby amended as of the date hereof by inserting a new
      Exhibit V, a copy of which is annexed hereto as Exhibit 7.

     

    Miscellaneous

     

    9.  All
      demands, notices and communications related to the Assigned Loans, the Purchase
      Agreement and this AAR Agreement shall be in writing and shall be deemed to
      have
      been duly given if personally delivered at or mailed by registered mail, postage
      prepaid, as follows:

     

    
      	
              (a)  

            	
              In
                the case of the Company:

            

    

     

    Mid
      America Bank, fsb

    2650
      Warrenville Road, Suite 500

    Downers
      Grove, Illinois 60515

    Attention:
      Theresa Mann

    Telecopier
      No.:  (630)
      799-7964

     

    With
      a
      copy to:

     

    Mid
      America Bank, fsb

    2650
      Warrenville Road, Suite 500

    Downers
      Grove, Illinois 60515

    Attention:  Ann
      Ryan

    Telecopier
      No.:  (630) 799-7964

    

    (b)
      In the case of
      Assignor:

    

    EMC
      Mortgage
      Corporation

    2780
      Lake Vista
      Drive

    Lewisville,
      Texas
      75067

    Attention:
Michelle
      Viner

    Fascimilie.:
      (214) 626-4889

    Email:
      mviner@bear.com

     

    (c)
      In
      the case of Assignee:

    

    U.S.
      Bank
      National Association, as Trustee

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME 2007-3

    Telecopier
      No.: (617) 603-6638

     

    10.  The
      Company hereby acknowledges that EMC Mortgage Corporation and any successor
      thereto (the “Master Servicer”), has been appointed as master servicer of the
      Mortgage Loans pursuant to the Pooling and Servicing Agreement dated as of
      August 1, 2007 (the “Pooling and Servicing Agreement”), among SAMI II, the
      Assignor, as seller and Master Servicer and the Assignee, and therefore has
      the
      right to enforce all obligations of the Company under the Purchase
      Agreement.  Such right will include, without limitation, the right to
      receive all remittances required to be made by the Company under the Purchase
      Agreement, the right to receive all monthly reports and other data required
      to
      be delivered by the Company under the Purchase Agreement, the right to examine
      the books and records of the Company, indemnification rights, and the right
      to
      exercise certain rights of consent and approval relating to actions taken by
      the
      Company.  In connection with the aforementioned rights, the Company
      hereby agrees that all remittances required to be made pursuant to the Purchase
      Agreement shall be received no later than 2:00 p.m. Central Standard
      Time.  The Company hereby acknowledges that the Master Servicer shall
      be obligated to notify the Assignee in accordance with the Pooling and Servicing
      Agreement upon the discovery of an event of default by the Company of its
      obligations under the Purchase Agreement and the Assignee shall have the right
      to terminate the Company as servicer under the Purchase Agreement upon the
      occurrence of such an event of default.  All remittances to be
      provided to the Master Servicer should be sent to:

     

    EMC
      Master Servicing Remittances

    Bank:  Chase
      Bank of Texas

    Branch:  Irving,
      Texas

    Account
      Name:  EMC Mortgage Corporation

    ABA
      #
      113000609

    ACCOUNT
      #
      000000709377717

    Reference:
      M/S Remittance August 1, 2007 Remit for Mid America Bank, fsb

    Attention:  LSBO
      Group-MS

    

    and
      the
      Company shall deliver all reports required to be delivered under the Purchase
      Agreement, as they relate to the Assigned Loans, to the Assignee at the address
      set forth in Section 10(c) herein and to the Master Servicer at:

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas  75067

    Attention:
      Michelle Viner

    Facsimile:
      (214) 626-4889

    mviner@bear.com

    

    11.  A
      copy of
      all assessments, attestations, reports and certificates required to be delivered
      by the Servicer under this AAR Agreement and the Purchase Agreement shall be
      delivered to the Master Servicer by the date(s) specified herein or therein,
      and
      where such documents are required to be addressed to any party, such addresses
      shall include the Master Servicer and the Master Servicer shall be entitled
      to
      rely on such documents.

     

    12.  Each
      party will pay any commissions it has incurred and the fees of its attorneys
      in
      connection with the negotiations for, documenting of and closing of the
      transactions contemplated by this AAR Agreement.

     

    13.  This
      AAR
      Agreement shall be construed in accordance with the laws of the State of New
      York, without regard to conflicts of law principles (other than Section 5-1401
      of the New York General Obligations Law), and the obligations, rights and
      remedies of the parties hereunder shall be determined in accordance with such
      laws.

     

    14.  No
      term
      or provision of this AAR Agreement may be waived or modified unless such waiver
      or modification is in writing and signed by the party against whom such waiver
      or modification is sought to be enforced.

     

    15.  This
      AAR
      Agreement shall inure to the benefit of the successors and assigns of the
      parties hereto.  Any entity into which Assignor, Assignee or the
      Company may be merged or consolidated shall, without the requirement for any
      further writing, be deemed Assignor, Assignee or the Company, respectively,
      hereunder.

     

    16.  This
      AAR
      Agreement shall survive the conveyance of the Assigned Loans, the assignment
      of
      the Purchase Agreement to the extent of the Assigned Loans by Assignor to
      Assignee and the termination of the Purchase Agreement.

     

    17.  This
      AAR
      Agreement may be executed simultaneously in any number of
      counterparts.  Each counterpart shall be deemed to be an original and
      all such counterparts shall constitute one and the same instrument.

     

    18.  In
      the
      event that any provision of this AAR Agreement conflicts with any provision
      of
      the Purchase Agreement with respect to the Assigned Loans, the terms of this
      AAR
      Agreement shall control.

     

    

    [SIGNATURE
      PAGE FOLLOWS]

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this AAR Agreement as of
      the
      day and year first above written.

     

    
      	
              EMC
                MORTGAGE CORPORATION

              Assignor
                and Master Servicer

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	 
	 
	
              U.S.
                BANK NATIONAL ASSOCIATION, not individually but solely as Trustee
                for the holders of Prime Mortgage Trust, Mortgage Pass-Through
                Certificates, Series 2007-3

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	 
	 
	
              MID
                AMERICA BANK, FSB

               

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

    

    
      	
              Acknowledged
                and Agreed:

               

              STRUCTURED
                ASSET MORTGAGE INVESTMENTS II INC.

               

            
	 	 
	
              By:

            	 
	
              Name:

            	
              Joseph
                T. Jurkowski, Jr.

            
	
              Title:

            	
              Vice
                President

            

    

    

     

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ATTACHMENT
      1

     

     

    ASSIGNED
      LOAN SCHEDULE

     

     

    (Available
      upon request)

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ATTACHMENT
      2

     

     

    PURCHASE
      AGREEMENT

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

    Exhibit
      1

     

    EXHIBIT
      F  to the Purchase Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

    

    Default
      Overview Report:  Provides loan level detail regarding the
      defaulted loans that are being serviced and reported to EMC Master
      Servicing.  The report contains the following data fields in the order
      below:

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              Servicer
                loan number

            	
              VARCHAR
                (15)

            
	
              SBO
                loan number

            	
              VARCHAR
                (9)

            
	
              Zip
                Code

            	
              VARCHAR
                (5)

            
	
              Original
                loan amount

            	
              NUMERIC
                (12,2)

            
	
              Original
                value amount

            	
              NUMERIC
                (12,2)

            
	
              Origination
                date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Loan
                type

            	
              VARCHAR
                (2)

            
	
              Actual
                due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Current
                loan amount

            	
              NUMERIC
                (12,2)

            
	
              Corporate
                expense balance

            	
              NUMERIC
                (12,2)

            
	
              Escrow
                balance/advance balance

            	
              NUMERIC
                (12,2)

            
	
              Suspense
                balance

            	
              NUMERIC
                (12,2)

            
	
              Restricted
                escrow balance

            	
              NUMERIC
                (12,2)

            
	
              Current
                Value date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Current
                value amount

            	
              NUMERIC
                (12,2)

            
	
              Current
                value source

            	
              VARCHAR
                (15)

            
	
              VA
                LGC/ FHA Case number

            	
              VARCHAR
                (15)

            
	
              %
                of MI coverage

            	
              NUMERIC
                (7,7)

            
	
              MI
                certificate number

            	
              VARCHAR
                (15)

            
	
              LPMI
                Cost

            	
              NUMERIC
                (7,7)

            
	
              Occupancy
                status

            	
              VARCHAR
                (1)

            
	
              First
                vacancy date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Property
                condition

            	
              VARCHAR
                (2)

            
	
              Property
                type

            	
              VARCHAR
                (2)

            
	
              Delinquency
                flag

            	
              VARCHAR
                (2)

            
	
              Reason
                for default

            	
              VARCHAR
                (2)

            
	
              FNMA
                action code

            	
              VARCHAR
                (3)

            
	
              FNMA
                delinquency reason code

            	
              VARCHAR
                (3)

            
	
              Loss
                mit flag

            	
              VARCHAR
                (2)

            
	
              Loss
                mit type

            	
              VARCHAR
                (2)

            
	
              Loss
                mit approval date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Loss
                mit removal date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                first due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                next due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                plan broken/reinstated/closed date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Repay
                plan created date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Foreclosure
                flag

            	
              VARCHAR
                (2)

            
	
              Foreclosure
                attorney referral date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                first legal date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                FC sale scheduled

            	
              DATE
                (MM/DD/YYYY)

            
	
              Foreclosure
                actual sale date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                redemption end date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                eviction complete date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                eviction start date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Bankruptcy
                flag

            	
              VARCHAR
                (2)

            
	
              Actual
                bankruptcy start date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Bankruptcy
                chapter

            	
              VARCHAR
                (2)

            
	
              Bankruptcy
                Case Number

            	
              VARCHAR
                (15)

            
	
              Post
                petition due date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                discharge date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                relief/dismissal granted

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                MI claim filed date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Actual
                MI claim amount filed

            	
              NUMERIC
                (12,2)

            
	
              MI
                claim amount paid

            	
              NUMERIC
                (12,2)

            
	
              MI
                claim funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Title
                approval letter received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Title
                package HUD/VA date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                27011A transmitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                Part A funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                27011 B transmitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              FHA
                Part B funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                NOE submitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                first funds received amount

            	
              NUMERIC
                (12,2)

            
	
              VA
                first funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                claim funds received date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                claim submitted date

            	
              DATE
                (MM/DD/YYYY)

            
	
              VA
                claims funds received amount

            	
              NUMERIC
                (12,2)

            
	
              REO
                flag

            	
              VARCHAR
                (2)

            
	
              REO
                repaired value

            	
              NUMERIC
                (12,2)

            
	
              REO
                value (as is)

            	
              NUMERIC
                (12,2)

            
	
              REO
                value date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                value source

            	
              VARCHAR
                (15)

            
	
              REO
                original list date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                original list price

            	
              NUMERIC
                (12,2)

            
	
              REO
                list price adjustment amount

            	
              NUMERIC
                (12,2)

            
	
              REO
                list price adjustment date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                REO offer received

            	
              DATE
                (MM/DD/YYYY)

            
	
              Date
                REO offer accepted

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                scheduled close date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                actual closing date

            	
              DATE
                (MM/DD/YYYY)

            
	
              REO
                sales price

            	
              NUMERIC
                (12,2)

            
	
              REO
                net sales proceeds

            	
              NUMERIC
                (12,2)

            
	
              Estimated
                loss

            	
              NUMERIC
                (12,2)

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      2

    EXHIBIT
      P to the Purchase Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

     

    EMC
      Master Servicing Calculation of Gain/Loss on Delinquent Loan
      Worksheet

    

     

    Date:                           
      _________________________________

     

     

    
      	
              Prepared
                By

            	
              Phone
                Number

            	
              Email
                Address

            
	 	 	 

    

    

     

    
      	
              Servicer
                Loan Number

            	
              Servicer
                Address

            	
              EMC
                Loan Number

            
	 	 	 

    

     

     

    
      	
              Borrower
                Name

            	
              Property
                Address

            
	 	 

    

     

     

    
      	
              Liquidation
                Type

            	
              REO

            	
              Third
                Party

            	
              Short
                Sale

            	
              Charge
                off

            	
              Deed
                In Lieu

            
	 	 	 	 	 	 

    

     

    

     

    
      	
              Has
                this loan been previously modified?

            	
              Yes

            	
              No

            
	
              Has
                this loan been crammed down in a bankruptcy?

            	
              Yes

            	
              No

            

    

     

    If
“Yes”,
      provide amount _______________________________

     

     

    
      	
                 Liquidation
                and Acquisition Expenses:

            

    

     

     Amounts
      requiring Amortization Schedule for backup:

     

     

    
      	
              Actual
                Unpaid Principal Balance of Mortgage Loan

            	 
	
              Interest
                Accrued at Net Rate Less Servicing Fees

            	 
	
              Accrued
                Servicing Fees

            	 

    

     

    Amounts
      requiring Additional backup:

     

     

    
      	
              Attorney’s
                Fees

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              Attorney’s
                Costs

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              Taxes

            	
              Payment
                history showing disbursements

            	 
	
              Property
                Maintenance

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              Property
                Inspection

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              PMI/Hazard
                Insurance Premiums

            	
              Payment
                history showing disbursements

            	 
	
              Utility
                Expenses

            	
              Payment
                history showing disbursements

            	 
	
              Appraisal/BPO
                Expenses

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              HOA
                Dues

            	
              Payment
                history showing disbursements

            	 
	
              Cash
                For Keys

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

            	 
	
              Miscellaneous
                (itemized)

            	
              Requires
                Itemization and supporting detail

            	 
	
              Total
                Expenses

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

            	 

    

     

     

     

    
      	
               

            	
              Credits
                to Loan:

            

    

     

     

    
      	
              Escrow
                Balance/Advance

            	
              Payment
                history showing disbursements and ending balance

            	 
	
              Rental
                Receipts

            	
              Payment
                history showing application of funds to loan

            	 
	
              Hazard
                Claim Proceeds

            	
              Payment
                history showing credit to account

            	 
	
              PMI
                Funds

            	
              EOB
                document

            	 
	
              Government
                Insurance Funds (Part A Funds)

            	
              EOB
                document

            	 
	
              REO
                Proceeds

            	
              HUD
                1 Settlement Statement

            	 
	
              Government
                Insurance Funds (Part B Funds)

            	
              EOB
                document

            	 
	
              Pool
                Insurance Proceeds

            	
              Payment
                history showing credit to account

            	 
	
              Other
                Credits (itemized)

            	
              Payment
                history showing credit to account

            	 
	
              Total
                Credits

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

            	 

     

    
      	 	 	 	 
	
              Total
                Realized Loss (or Amount of Gain)

            	 	
              $________________

            	 

    

     

    

    NOTE:  Do
      not combine or net remit items.  All expenses and credits should be
      documented individually.   Claim packages are due by the fifth
      business day of the month following receipt of liquidation
      proceeds.  Late claims may result in delayed claim
      payment.  The Servicer is responsible to remit all funds pending loss
      approval and /or resolution of any disputed items.

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
      3

    

    EXHIBIT
      E to the Purchase Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

    

    

    EMC
      FORM
– REMITTANCE OVERVIEW REPORT

    

    Remittance
      Overview Report:  Provides loan level detail regarding the
      remittance that will be submitted to EMC Master Servicing and contains the
      following data fields in the order below:

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              Deal
                Name

            	
              VARCHAR
                (15)

            
	
              Master
                Servicer Loan Number

            	
              NUMERIC
                (9,0)

            
	
              Current
                Investor Category

            	
              VARCHAR
                (5)

            
	
              Original
                Investor Category

            	
              VARCHAR
                (5)

            
	
              Servicer
                Loan Number

            	
              VARCHAR
                (15)

            
	
              Cutoff
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Loan
                Next Due Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Gross
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Net
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Pending
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Servicing
                Fee Rate

            	
              NUMERIC
                (7,7)

            
	
              MI
                Rate

            	
              NUMERIC
                (7,7)

            
	
              Scheduled
                P&I Amount (P & I Constant)

            	
              NUMERIC
                (12,2)

            
	
              ARM
                Index

            	
              NUMERIC
                (7,7)

            
	
              Pending
                ARM Index

            	
              NUMERIC
                (7,7)

            
	
              Beginning
                Scheduled Principal Balance

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Principal Remitted

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Principal Curtailment Remitted

            	
              NUMERIC
                (12,2)

            
	
              Curtailment
                Adjustment Remitted

            	
              NUMERIC
                (12,2)

            
	
              Liquidation
                Principal Remitted

            	
              NUMERIC
                (12,2)

            
	
              Principal
                Not Advanced (stop advance loans only)

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Gross Interest

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Interest Remitted

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Service Fee Amount

            	
              NUMERIC
                (12,2)

            
	
              Soldiers
                and Sailors Variance

            	
              NUMERIC
                (12,2)

            
	
              Net
                Interest Not Advanced

            	
              NUMERIC
                (12,2)

            
	
              Prepayment
                Penalty Remitted

            	
              NUMERIC
                (12,2)

            
	
              PMI
                Premium Remitted

            	
              NUMERIC
                (12,2)

            
	
              Additional
                Fees Remitted

            	
              NUMERIC
                (12,2)

            
	
              Ending
                Scheduled Balance

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Amount Remitted Total (each loan)

            	
              NUMERIC
                (12,2)

            
	
              Beginning
                Actual Balance

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Principal Collected

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Curtailments Collected

            	
              NUMERIC
                (12,2)

            
	
              Curtailment
                Adjustment Collected

            	
              NUMERIC
                (12,2)

            
	
              Gross
                Interest Collected

            	
              NUMERIC
                (12,2)

            
	
              Net
                Interest Collected

            	
              NUMERIC
                (12,2)

            
	
              Service
                Fee Collected

            	
              NUMERIC
                (12,2)

            
	
              Actual
                Ending Principal Balance

            	
              NUMERIC
                (12,2)

            
	
              Liquidation
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Liquidation
                Type

            	
              VARCHAR
                (1)

            
	
              Gross
                Liquidation Proceeds

            	
              NUMERIC
                (12,2)

            
	
              Liquidation
                Expenses

            	
              NUMERIC
                (12,2)

            
	
              Principal
                and Interest Advanced Balance

            	
              NUMERIC
                (12,2)

            
	
              Delinquent
                Service Fee

            	
              NUMERIC
                (12,2)

            
	
              Calculated
                Loss to Trust

            	
              NUMERIC
                (12,2)

            
	
              Net
                Interest Remitted

            	
              NUMERIC
                (12,2)

            
	
              Collected
                Interest Not Remitted

            	
              NUMERIC
                (12,2)

            
	
              Ending
                Advance Balance

            	
              NUMERIC
                (12,2)

            
	
              Soldiers
                and Sailors Flag

            	
              VARCHAR
                (1)

            
	
              Soldiers
                and Sailors Old Rate

            	
              NUMERIC
                (7,7)

            
	
              Soldiers
                and Sailors Old P & I

            	
              NUMERIC
                (12,2)

            
	
              Modified
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Stop
                Advance Flag

            	 
	
              Stop
                Advance Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              BPO
                Value

            	
              NUMERIC
                (12,2)

            
	
              Cash
                Flow Group

            	
              VARCHAR
                (2)

            
	
              MSP
                Principal Balance

            	
              NUMERIC
                (12,2)

            
	
              Debt
                Forgiven / Charged Off

            	
              NUMERIC
                (12,2)

            
	
              Mortgagor
                PITI Payment

            	
              NUMERIC
                (12,2)

            
	
              Bankruptcy
                Status

            	
              VARCHAR
                (2)

            
	
              Foreclosure
                Status

            	
              VARCHAR
                (2)

            
	
              Modification
                Status

            	 
	
              Interest
                Only Loan

            	
              VARCHAR
                (2)

            
	
              Escrowed
                Loan

            	
              VARCHAR
                (2)

            
	
              Monthly
                Escrow Deposit

            	
              NUMERIC
                (12,2)

            
	
              Escrow
                Balance

            	
              NUMERIC
                (12,2)

            
	
              Escrow
                Advance Balance

            	
              NUMERIC
                (12,2)

            
	
              Restricted
                Escrow Balance

            	
              NUMERIC
                (12,2)

            
	
              Mortgagor
                Recoverable Corporate Expense Balance

            	
              NUMERIC
                (12,2)

            
	
              Non-Recoverable
                Corporate Expense Balance

            	
              NUMERIC
                (12,2)

            
	
              HUD
                235 Loan Status

            	
              VARCHAR
                (2)

            
	
              HUD
                235 Balance

            	
              NUMERIC
                (12,2)

            
	
              Late
                Charge Balance

            	
              NUMERIC
                (12,2)

            
	
              Buydown
                Loan Status

            	
              VARCHAR
                (2)

            
	
              Monthly
                Buydown Amount

            	
              NUMERIC
                (12,2)

            
	
              Monthly
                Buydown Funds Balance

            	
              NUMERIC
                (12,2)

            
	
              Prepayment
                Penalty Amount Waived

            	
              NUMERIC
                (12,2)

            
	
              Prepayment
                Penalty Waived Reason Code

            	
              VARCHAR
                (3)

            
	
              Material
                Breach Status

            	
              VARCHAR
                (3)

            
	
              Material
                Breach Code

            	
              VARCHAR
                (3)

            
	
              Prefunding
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              3rd
                Party
                Recoverable Expenses

            	
              NUMERIC
                (12,2)

            

    

    

    Exhibit
      4

    EXHIBIT
      S to the Purchase Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

    

    

    EMC
      FORM
– REMITTANCE SUMMARY REPORT

    

    Remittance
      Summary Report:  Provides summary data at a deal
      (investor/category) level regarding the remittance that will be submitted to
      EMC
      Master Servicing and contains the following data fields in the order
      below:

    

    
      	
              Field

               

            	
              Field
                Description

            
	
              Deal

            	
              VARCHAR
                (15)

            
	
              Investor

            	
              VARCHAR
                (5)

            
	
              Category

            	
              VARCHAR
                (5)

            
	
              Principal
                Remitted

            	
              NUMERIC
                (15,2)

            
	
              Curtailments
                Remitted

            	
              NUMERIC
                (15,2)

            
	
              Curtailment
                Adjustments Remitted

            	
              NUMERIC
                (15,2)

            
	
              Liquidation
                Proceeds Remitted

            	
              NUMERIC
                (15,2)

            
	
              Principal
                Not Advanced (stop advance loans only)

            	
              NUMERIC
                (15,2)

            
	
              Principal
                Amounts Called/Collapsed

            	
              NUMERIC
                (15,2)

            
	
              Total
                Principal Remitted

            	
              NUMERIC
                (15,2)

            
	
              Interest
                Remitted

            	
              NUMERIC
                (15,2)

            
	
              PMI
                Premiums Remitted

            	
              NUMERIC
                (15,2)

            
	
              Soldiers
                and Sailors Difference

            	
              NUMERIC
                (15,2)

            
	
              Net
                Interest Not Advanced

            	
              NUMERIC
                (15,2)

            
	
              Non
                Comp Interest Remitted

            	
              NUMERIC
                (15,2)

            
	
              Prepayment
                Penalties Remitted

            	
              NUMERIC
                (15,2)

            
	
              Total
                Interest Remitted

            	
              NUMERIC
                (15,2)

            
	
              Arrearage
                Amount Remitted

            	
              NUMERIC
                (15,2)

            
	
              Aggregate
                Loss to Trust

              Total
                Manual Adjustments

            	
              NUMERIC
                (15,2)

            
	
              Debt
                Forgiven/ Charged Off

            	
              NUMERIC
                (15,2)

            
	
              Additional
                Fees Collected

            	
              NUMERIC
                (15,2)

            
	
              Total
                Remittance

            	
              NUMERIC
                (15,2)

            

    

    

     

    

    

    Exhibit
      5

    EXHIBIT
      T to the Purchase Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

    

    EMC
      FORM
      - MODIFIED LOANS REPORT

    

    Modified
      Loans Report:   Provides loan level data regarding all loans that
      the Servicer has modified with the first modified payment due within thirty
      days
      following the end of the reporting cycle.  The report contains the
      following data fields in the order below:

    

    
      	
              Field
                Description

            	
              Field
                Description

            
	
              Loan

            	
              VARCHAR
                (15)

            
	
              Investor

            	
              VARCHAR
                (5)

            
	
              Original
                Category

            	
              VARCHAR
                (5)

            
	
              Current
                Category

            	
              VARCHAR
                (5)

            
	
              Stop
                Adv Flag

            	
              VARCHAR
                (3)

            
	
              Modified
                Due Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Mod
                Loan Curtailment

            	
              NUMERIC
                (15,2)

            
	
              Mod
                Loan Curt Adjustment

            	
              NUMERIC
                (15,2) 

            
	
              Principal
                Advanced Capped

            	
              NUMERIC
                (15,2) 

            
	
              Net
                Interest Advanced Capped

            	
              NUMERIC
                (15,2)

            
	
              Service
                Fee Advanced Capped

            	
              NUMERIC
                (15,2)

            
	
              Third
                Party Bal Capped

            	
              NUMERIC
                (15,2)

            
	
              Amount
                of Other Capped

            	
              NUMERIC
                (15,2)

            
	
              Borrower
                Interest Contribution

            	
              NUMERIC
                (15,2)

            
	
              Borrower
                Fee Code Arrearage Contribution

            	
              NUMERIC
                (15,2)

            
	
              Borrower
                Principal Contribution

            	
              NUMERIC
                (15,2)

            
	
              Amt
                Forgiven

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Delq Prin Bal

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Delq Int Bal

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Pre Prin Bal

            	
              NUMERIC
                (15,2)

            
	
              Beg
                Pre Int Bal

            	
              NUMERIC
                (15,2)

            
	
              Excess
                Int Adjust

            	
              NUMERIC
                (15,2)

            
	
              Excess
                Interest on Mod

            	
              NUMERIC
                (15,2)

            

    

    

    

    

    Exhibit
      6

    

    EXHIBIT
      U to the Purchase Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

    

    EMC
      FORM
      - CLAIMS SUBMITTED REPORT

    

    Claims
      Submitted Report:  Provides loan level detail regarding claims
      submitted by the servicer’s investor number that will be submitted to EMC Master
      Servicing and contains the following data fields in the order
      below:

    

    
      	
              Field

            	
              Field
                Description

            
	
              Servicer
                Investor Number

               

            	
              VARCHAR
                (5)

            
	
              Servicer
                Investor Category

               

            	
              VARCHAR
                (5)

            
	
              Loan
                Number

               

            	
              VARCHAR
                (15)

            
	
              Mortgage
                Group

               

            	
              VARCHAR
                (1)

            
	
              Liquidation
                Type

               

            	
              VARCHAR
                (1)

            
	
              Escrow
                Balance or Advance Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Corporate
                Expense Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Restricted
                Escrow Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Replacement
                Reserve Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Suspense
                Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Third
                Party Expense Balance

               

            	
              NUMERIC
                (12,2)

            
	
              Charge
                Off Amount

               

            	
              NUMERIC
                (12,2)

            
	
              Side
                Note Collections

               

            	
              NUMERIC
                (12,2)

            
	
              Claim
                Amount Submitted

               

            	
              NUMERIC
                (12,2)

            

    

    

    

    Exhibit
      7

    

    EXHIBIT
      V to the Purchase Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

    

    

    EMC
      FORM
      - LOSS SEVERITY SUMMARY REPORT

    

    Loss
      Severity Summary Report:  Provides summary data at the deal level
      regarding loss severity that will be submitted to EMC Master Servicing and
      contains the following data fields in the order below:

    

    
      	
              Field

            	
              Field
                Description

               

            
	
              Month
                End

            	
              DATE
                (MM/DD/YYYY)

            
	
              Deal
                Name

            	
              VARCHAR
                (15)

            
	
              Servicer
                Investor Number

            	
              VARCHAR
                (5)

            
	
              Servicer
                Investor Category

            	
              VARCHAR
                (5)

            
	
              Mortgage
                Group

            	
              VARCHAR
                (1)

            
	
              Loan
                Number

            	
              VARCHAR
                (15)

            
	
              Liquidation
                Type

            	
              VARCHAR
                (1)

            
	
              Loan
                Due Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              PIF
                Date

            	
              DATE
                (MM/DD/YYYY)

            
	
              Gross
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Net
                Interest Rate

            	
              NUMERIC
                (7,7)

            
	
              Service
                Fee Rate

            	
              NUMERIC
                (7,7)

            
	
              P
                & I Constant

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Beginning Balance

            	
              NUMERIC
                (12,2)

            
	
              Arrearage
                Balance

            	
              NUMERIC
                (12,2)

            
	
              Total
                Legal and Other Expenses

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Advanced Interest

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Liquidated Amount

            	
              NUMERIC
                (12,2)

            
	
              Gross
                Liquidation Proceeds

            	
              NUMERIC
                (12,2)

            
	
              P
                & I Advance Balance

            	
              NUMERIC
                (12,2)

            
	
              Delinquent
                Service Fee

            	
              NUMERIC
                (12,2)

            
	
              Net
                Liquidation Proceeds

            	
              NUMERIC
                (12,2)

            
	
              Scheduled
                Net Interest

            	
              NUMERIC
                (12,2)

            
	
              Net
                Liquidated Funds Remitted

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss (Gain) Amount

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss (Gain) to Trust

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss (Gain) to Servicer

            	
              NUMERIC
                (12,2)

            
	
              Total
                Loss Severity %

            	
              NUMERIC
                (7,7)

            
	
              Total
                Loss Severity % to Trust

            	
              NUMERIC
                (7,7)

            
	
              Total
                Liquidated Remitted

            	
              NUMERIC
                (12,2)

            
	
              Claim
                on Trust Loss

            	
              NUMERIC
                (12,2)

            
	
              Claim
                on Servicer Loss

            	
              NUMERIC
                (12,2)

            
	
              Total
                Claim Amount

            	
              NUMERIC
                (12,2)

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      J-4

    

    FORM
      OF
      COUNTRYWIDE ASSIGNMENT AGREEMENT

     

     

    ASSIGNMENT,
      ASSUMPTION AND RECOGNITION AGREEMENT

     

    This
      Assignment, Assumption and Recognition Agreement (the “Agreement”) is made and
      entered into as of August 30, 2007 (the “Effective Date”), among EMC Mortgage
      Corporation, having an address at 2780 Lake Vista Drive, Lewisville, Texas
      75067
      (the “Assignor”), U.S. Bank National Association, not individually but solely as
      trustee for the holders of Prime Mortgage Trust, Mortgage Pass-Through
      Certificates, Series 2007-3, having an address at One Federal Street, 3rd Floor,
      Boston,
      Massachusetts 02110 (the “Assignee”) and Countrywide Home Loans Servicing LP,
      having an address at 400 Countrywide Way, Simi Valley, California 93065
      (the “Company”).

     

    WHEREAS,
      the Assignor has acquired certain mortgage loans set forth on Attachment
      1 (the “Mortgage Loans”) from Countrywide Home Loans, Inc. (the “Seller”)
      pursuant to that certain Seller’s Warranties and Servicing Agreement, dated as
      of September 1, 2002, as amended by Amendment No. 1, dated January 1, 2003,
      Amendment No. 2, dated September 1, 2004 and as amended by Amendment Reg AB
      to
      the Master Mortgage Loan Purchase and Servicing Agreement, dated as of January
      1, 2006, by and between the Assignor and Countrywide Home Loans, Inc. (the
“SWS
      Agreement”).  Capitalized terms used herein but not defined shall have
      the meanings ascribed to them in the SWS Agreement.

    

    WHEREAS,
      the Seller has assigned its rights and obligations under the SWS Agreement
      to
      the Company and the Company is currently servicing the Mortgage Loans for the
      benefit of the Assignor in accordance with the terms and conditions of the
      SWS
      Agreement.

    

    For
      and
      in consideration of the mutual promises and SWS Agreement contained herein,
      and
      other valuable consideration, the receipt and sufficiency of which hereby are
      acknowledged, and of the mutual covenants herein contained, the parties hereto
      hereby agree as follows:

    

    1.  Defined
      terms used in this Agreement and not otherwise defined herein shall have the
      meaning set forth in the SWS Agreement.

     

    2.  The
      Company recognizes the Assignor as owner of the Mortgage Loans and acknowledges
      that it is currently servicing the Mortgage Loans for the benefit of the
      Assignor.  From and after the date hereof, the Company agrees that it
      will service the Mortgage Loans pursuant to the terms of the SWS Agreement
      (as
      modified herein) which terms are incorporated herein by reference.

     

    3.  The
      Assignor hereby grants, transfers and assigns to the Assignee all of the right,
      title, interest and obligations of the Assignor, as purchaser, in, to and under
      (a) the Mortgage Loans and (b) the SWS Agreement with respect to the Mortgage
      Loans.

     

    4.  The
      Assignor specifically reserves and does not assign to the Assignee hereunder
      any
      and all right, title and interest in, to and under any and all obligations
      of
      the Assignor with respect to any mortgage loans subject to the SWS Agreement
      which are not Mortgage Loans and are not the subject of this
      Agreement.

     

    5.  The
      Assignor warrants and represents to, and covenants with, the Assignee that
      as of
      the date hereof:

     

    
      	
              (a)              
                   

            	
              Attached
                hereto as Attachment 2 is a true and accurate copy of the servicing
                provisions of the SWS Agreement (Articles IV, V, and VI), which is
                in full
                force and effect as of the date hereof and the provisions of which
                have
                not been waived, amended or modified in any material respect, nor
                has any
                notice of termination been given
                thereunder;

            

    

     

    
      	
              (b)                 

            	
              The
                Assignor is the lawful owner of the Mortgage Loans with full right
                to
                transfer the Mortgage Loans and any and all of its interests, rights
                and
                obligations under the SWS Agreement as they relate to the Mortgage
                Loans,
                free and clear from any and all claims and encumbrances; and upon
                the
                transfer of the Mortgage Loans to the Assignee as contemplated herein,
                the
                Assignee shall have good title to each and every Mortgage Loan, as
                well as
                any and all of the Assignor’s interests, rights and obligations under the
                SWS Agreement, except as otherwise set forth herein, as they relate
                to the
                Mortgage Loans, free and clear of any and all liens, claims and
                encumbrances;

            

    

     

    
      	
              (c)                 

            	
              There
                are no known offsets, counterclaims or other defenses available to
                the
                Company with respect to the Mortgage Loans or the SWS
                Agreement;

            

    

     

    
      	
              (d)                 

            	
              The
                Assignor has no knowledge of, and has not received notice of, any
                waivers
                under, or any modification of, any Mortgage
                Loan;

            

    

     

    
      	
              (e)                 

            	
              The
                Assignor is duly organized, validly existing and in good standing
                under
                the laws of the jurisdiction of its incorporation, and has all requisite
                power and authority to acquire, own and sell the Mortgage
                Loans;

            

    

     

    
      	
              (f)                 

            	
              The
                Assignor has full corporate power and authority to execute, deliver
                and
                perform its obligations under this Agreement, and to consummate the
                transactions set forth herein. The consummation of the transactions
                contemplated by this Agreement is in the ordinary course of the Assignor’s
                business and will not conflict with, or result in a breach of, any
                of the
                terms, conditions or provisions of the Assignor’s charter or by-laws or
                any legal restriction, or any material agreement or instrument to
                which
                the Assignor is now a party or by which it is bound, or result in
                the
                violation of any law, rule, regulation, order, judgment or decree
                to which
                the Assignor or its property is subject. The execution, delivery
                and
                performance by the Assignor of this Agreement and the consummation
                by it
                of the transactions contemplated hereby, have been duly authorized
                by all
                necessary corporate action on the part of the Assignor. This Agreement
                has
                been duly executed and delivered by the Assignor and, upon the due
                authorization, execution and delivery by the Assignee and the Company,
                will constitute the valid and legally binding obligation of the Assignor
                enforceable against the Assignor in accordance with its terms except
                as
                enforceability may be limited by bankruptcy, reorganization, insolvency,
                moratorium or other similar laws now or hereafter in effect relating
                to
                creditors’ rights generally, and by general principles of equity
                regardless of whether enforceability is considered in a proceeding
                in
                equity or at law;

            

    

     

    
      	
              (g)                 

            	
              No
                consent, approval, order or authorization of, or declaration, filing
                or
                registration with, any governmental entity is required to be obtained
                or
                made by the Assignor in connection with the execution, delivery or
                performance by the Assignor of this Agreement, or the consummation
                by it
                of the transactions contemplated hereby. Neither the Assignor nor
                anyone
                acting on its behalf has offered, transferred, pledged, sold or otherwise
                disposed of the Mortgage Loans or any interest in the Mortgage Loans,
                or
                solicited any offer to buy or accept a transfer, pledge or other
                disposition of the Mortgage Loans, or any interest in the Mortgage
                Loans
                or otherwise approached or negotiated with respect to the Mortgage
                Loans,
                or any interest in the Mortgage Loans 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 which would constitute a
                distribution of the Mortgage Loans under the Securities Act of 1933,
                as
                amended (the “1933 Act”) or which would render the disposition of the
                Mortgage Loans a violation of Section 5 of the 1933 Act or require
                registration pursuant thereto; and

            

    

     

    
      	
              (h)                 

            	
              The
                Assignor has received from the Company, and has delivered to the
                Assignee,
                all documents required to be delivered to the Assignor by the Company
                prior to the date hereof pursuant to the SWS Agreement with respect
                to the
                Mortgage Loans and has not received, and has not requested from the
                Company, any additional documents.

            

    

     

    6.  The
      Assignee warrants and represents to, and covenants with, the Assignor and the
      Company as of the date hereof:

     

    
      	
              (a)                 

            	
              The
                Assignee is duly organized, validly existing and in good standing
                under
                the laws of the jurisdiction of its organization and has all requisite
                power and authority to hold the Mortgage Loans as trustee on behalf
                of the
                holders of Prime Mortgage Trust, Mortgage Pass-Through Certificates,
                Series 2007-3;

            

    

     

    
      	
              (b)                 

            	
              The
                Assignee has full corporate power and authority to execute and deliver
                this Agreement, and to consummate the transactions set forth herein.
                The
                consummation of the transactions contemplated by this Agreement is
                in the
                ordinary course of the Assignee’s business and will not conflict with, or
                result in a breach of, any of the terms, conditions or provisions
                of the
                Assignee’s charter or by-laws or any legal restriction, or any material
                agreement or instrument to which the Assignee is now a party or by
                which
                it is bound, or result in the violation of any law, rule, regulation,
                order, judgment or decree to which the Assignee or its property is
                subject. The execution, delivery and performance by the Assignee
                of this
                Agreement and the consummation by it of the transactions contemplated
                hereby, have been duly authorized by all necessary corporate action
                on the
                part of the Assignee. This Agreement has been duly executed and delivered
                by the Assignee and, upon the due authorization, execution and delivery
                by
                the Assignor and the Company, will constitute the valid and legally
                binding obligation of the Assignee enforceable against the Assignee
                in
                accordance with its terms except as enforceability may be limited
                by
                bankruptcy, reorganization, insolvency, moratorium or other similar
                laws
                now or hereafter in effect relating to creditors’ rights generally, and by
                general principles of equity regardless of whether enforceability
                is
                considered in a proceeding in equity or at
                law;

            

    

     

    
      	
              (c)                 

            	
              No
                consent, approval, order or authorization of, or declaration, filing
                or
                registration with, any governmental entity is required to be obtained
                or
                made by the Assignee in connection with the execution, delivery or
                performance by the Assignee of this Agreement, or the consummation
                by it
                of the transactions contemplated hereby;
                and

            

    

     

    
      	
              (d)                 

            	
              The
                Assignee assumes for the benefit of each of the Assignor and the
                Company
                all of the Assignor’s rights and obligations as “Purchaser” thereunder but
                solely with respect to such Mortgage Loans; provided however, that
                the
                Assignee is assuming such obligations solely in its capacity as trustee
                for Prime Mortgage Trust, Mortgage Pass-Through Certificates, Series
                2007-3 and not individually, and any recourse against the Assignee in
                respect of such obligations shall be limited solely to the assets
                it may
                hold as trustee of Prime Mortgage Trust, Mortgage Pass-Through
                Certificates, Series 2007-3.

            

    

     

    7.  The
      Company warrants and represents to, and covenants with, the Assignor and the
      Assignee as of the date hereof:

     

    
      	
              (a)                 

            	
              The
                SWS Agreement is in full force and effect as of the date hereof and
                the
                provisions of which have not been waived, amended or modified in
                any
                material respect, except as contemplated herein, nor has any notice
                of
                termination been given thereunder;

            

    

     

    
      	
              (b)                 

            	
              The
                Company is duly organized, validly existing and in good standing
                under the
                laws of the jurisdiction of its formation, and has all requisite
                power and
                authority to service the Mortgage Loans and otherwise to perform
                its
                obligations under the SWS
                Agreement;

            

    

     

    
      	
              (c)                 

            	
              The
                Company has full power and authority to execute, deliver and perform
                its
                obligations under this Agreement, and to consummate the transactions
                set
                forth herein. The consummation of the transactions contemplated by
                this
                Agreement is in the ordinary course of the Company’s business and will not
                conflict with, or result in a breach of, any of the terms, conditions
                or
                provisions of the Company’s formation documents or any legal restriction,
                or any material agreement or instrument to which the Company is now
                a
                party or by which it is bound, or result in the violation of any
                law,
                rule, regulation, order, judgment or decree to which the Company
                or its
                property is subject. The execution, delivery and performance by the
                Company of this Agreement and the consummation by it of the transactions
                contemplated hereby, have been duly authorized by all necessary action
                on
                the part of the Company. This Agreement has been duly executed and
                delivered by the Company, and, upon the due authorization, execution
                and
                delivery by the Assignor and the Assignee, will constitute the valid
                and
                legally binding obligation of the Company, enforceable against the
                Company
                in accordance with its terms except as enforceability may be limited
                by
                bankruptcy, reorganization, insolvency, moratorium or other similar
                laws
                now or hereafter in effect relating to creditors’ rights generally, and by
                general principles of equity regardless of whether enforceability
                is
                considered in a proceeding in equity or at
                law;

            

    

     

    
      	
              (d)                 

            	
              No
                consent, approval, order or authorization of, or declaration, filing
                or
                registration with, any governmental entity is required to be obtained
                or
                made by the Company in connection with the execution, delivery or
                performance by the Company of this Agreement, or the consummation
                by it of
                the transactions contemplated
                hereby;

            

    

     

    
      	
              (e)                 

            	
              The
                Company shall establish a Custodial Account and an Escrow Account
                under
                the SWS Agreement in favor of the Assignee with respect to the Mortgage
                Loans separate from the Custodial Account and Escrow Account previously
                established in favor of the Assignor;
                and

            

    

     

    8.  The
      Company hereby restates the representations and warranties set forth in Section
      2(b) of the Amendment Reg AB as of the date hereof.

     

    Each
      such
      notice/update required to be sent to the Depositor as set forth in the Amendment
      Reg AB shall be sent to the Assignor by e-mail to
      regABnotifications@bear.com.  Additionally, all such notifications
      should be sent to:

     

    
      	 	
              EMC
                Mortgage Corporation

            
	 	
              2780
                Lake Vista Drive

            
	 	
              Lewisville,
                Texas 75067-3884

            
	 	
              Attention:  Michelle
                Viner

            
	 	
              Facsimile:  (214)
                626-4889

            
	 	
              Email:
                mviner@bear.com

            
	 	 
	 	
              With
                copies to:

            
	 	 
	 	
              Bear,
                Stearns & Co. Inc.

            
	 	
              383
                Madison Avenue, 3rd Floor

            
	 	
              New,
                York, New York 10179

            
	 	
              Attention:  Global
                Credit Administration

            
	 	
              Facsimile:  (212)
                272-6564

            
	 	 
	 	
              EMC
                Mortgage Corporation

            
	 	
              2780
                Lake Vista Drive

            
	 	
              Lewisville,
                Texas 75067-3884

            
	 	
              Attention:  General
                Counsel

            
	 	
              Facsimile:  (214)
                626-4714

            

    

    

     

    9.  The
      Assignor hereby agrees to indemnify and hold the Assignee (and its successors
      and assigns) harmless against any and all claims, losses, penalties, fines,
      forfeitures, legal fees and related costs, judgments, and any other costs,
      fees
      and expenses that the Assignee (and its successors and assigns) may sustain
      in
      any way related to any breach of the representations or warranties of the
      Assignor set forth in this Agreement or the breach of any covenant or condition
      contained herein.

     

    Recognition
      of the Assignee

     

    10.  From
      and
      after the date hereof, the Company shall recognize the Assignee as owner of
      the
      Mortgage Loans, and acknowledges that the Mortgage Loans will be part of a
      REMIC, and will service the Mortgage Loans in accordance with the SWS
      Agreement.  It is the intention of the Assignor, the Company and the
      Assignee that this Agreement shall be binding upon and for the benefit of the
      respective permitted successors and assigns of the parties
      hereto.  Neither the Company nor the Assignor shall amend or agree to
      amend, modify, waive, or otherwise alter any of the terms or provisions of
      the
      SWS Agreement which amendment, modification, waiver or other alteration would
      in
      any way affect the Mortgage Loans without the prior written consent of the
      Assignee, which shall not be unreasonably withheld.

     

    11.  Notwithstanding
      any term hereof to the contrary, the execution and delivery of this Agreement
      by
      the Assignee is solely in its capacity as trustee for Prime Mortgage Trust,
      Mortgage Pass-Through Certificates, Series 2007-3 and not individually, and
      any recourse against the Assignee in respect of any obligations it may have
      under or pursuant to the terms of this Agreement shall be limited solely to
      the
      assets it may hold as trustee of Prime Mortgage Trust, Mortgage Pass-Through
      Certificates, Series 2007-3.

     

    Modification
      of the SWS Agreement:

     

    12.  The
      Company and the Assignor hereby amend the SWS Agreement as follows:

     

    (a)  Section
      6.04, 6.05 and 6.07 and clause (x) of Section 10.01, all as added by Amendment
      No. 2 to the Servicing Agreement are deleted in their entirety.

     

    (b)  (d)           The
      following definition shall be added to Section 1.01 of the Purchase
      Agreement:

     

    Servicing
      Modification: With respect to any Mortgage Loan that is in default or
      imminent default or as otherwise set forth in Section 4.01, any modification
      which is effected by the Company in accordance with the terms of this Agreement
      that results in any change to the payment terms of the Mortgage
      Loan.

     

    (c)  The
      definition of Master Servicer is deleted in its entirety and replaced with
      the
      following:

     

    Master
      Servicer: EMC Mortgage Corporation, or its successors in
      interest.

     

    (d)  The
      definition of Principal Prepayment is deleted in its entirety and replaced
      with
      the following:

     

    Principal
      Prepayment: Any payment or other recovery of principal on a Mortgage Loan in
      full or partial which is received in advance of its scheduled Due Date and
      which
      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. Partial principal Prepayments shall be applied in accordance with
      the terms of the related Mortgage Note.

     

    (e)  The
      definition of Qualified Depository is deleted in its entirety and replaced
      with
      the following:

     

    Qualified
      Depository:  Any of (i) an account or accounts maintained with a
      federal or state chartered depository institution or trust company, the
      short-term unsecured debt obligations of which (or, in the case of a depository
      institution or trust company that is the principal subsidiary of a holding
      company, the debt obligations of such holding company, so long as Moody’s is not
      a Rating Agency) are rated by each Rating Agency in one of its two highest
      short-term rating categories (“Ratings”), respectively, at
      the time any amounts are held on deposit therein, or (ii) a trust account or
      accounts maintained with the corporate trust department of a federal or state
      chartered depository institution or trust company having capital and surplus
      of
      not less than $50,000,000, acting in its fiduciary capacity or (iii) any other
      account acceptable to the Rating Agencies, as evidenced in writing. Qualified
      Depositories may bear interest, and may include, if otherwise qualified under
      this definition, accounts maintained with the Trustee.

     

    (f)  The
      definition of Remittance Date is deleted in its entirety and replaced with
      the
      following:

     

    Remittance
      Date: The 18th day (or if such 18th day is not a Business Day, the first
      Business Day immediately preceding) of any month, beginning with the First
      Remittance Date.  

     

    (g)  Servicing
      Fee Rate: per annum rate equal to 0.200%.

     

    (h)  The
      second paragraph of Section 4.01 of the SWS Agreement shall be deleted in its
      entirety and replaced with the following:

     

    Consistent
      with and in addition to the terms set forth in this Agreement, if a Mortgage
      Loan is in default or such default is reasonably foreseeable, the Company may
      waive, modify or vary any term of any Mortgage Loan or consent to the
      postponement of strict compliance with any such term or in any manner grant
      indulgence to any Mortgagor, including without limitation, to (1) capitalize
      any
      amounts owing on the Mortgage Loan by adding such amount to the outstanding
      principal balance of the Mortgage Loan, (2) defer such amounts to a later date
      or the final payment date of such Mortgage Loan, (3) extend the maturity of
      any
      such Mortgage Loan, (4) amend the related Mortgage Loan to reduce the related
      Mortgage Interest Rate with respect to any Mortgage Loan, (5) convert the
      Mortgage Interest Rate on any Mortgage Loan from a fixed rate to an adjustable
      rate or vice versa, (6) with respect to a Mortgage Loan with an initial fixed
      rate period followed by an adjustable rate period, extend the fixed period
      and
      reduce the adjustable rate period, and/or (7) forgive the amount of any
      interest, principal or servicing advances owed by the related Mortgagor;
      provided that, in the Company's reasonable and prudent determination, such
      waiver, modification, postponement or indulgence: (A) is not materially adverse
      to the interests of the Purchaser on a present value basis using reasonable
      assumptions (including taking into account any estimated realized loss (as
      defined in the related pooling and servicing agreement) that might result absent
      such action); and (B) does not amend the related Mortgage Note to extend the
      maturity thereof later than the date of the Latest Possible Maturity Date (as
      such term is defined in the related pooling and servicing agreement); provided,
      further, with respect to any Mortgage Loan that is not in default or if default
      is not reasonably foreseeable, unless the Company has provided to the Purchaser
      a certification addressed to the Purchaser, based on the advice of counsel
      or
      certified public accountants that have a national reputation with respect to
      taxation of REMICs that a modification of such Mortgage Loan will not result
      in
      the imposition of taxes on or disqualify from REMIC status any of the REMICs
and
      has obtained the prior written consent of the Purchaser, the Company shall
      not
      permit any modification with respect to any Mortgage
      Loan.  Notwithstanding the foregoing, for any waiver, modification,
      postponement or indulgence (not including any partial releases, assumptions
      of
      mortgages or modifications of any Mortgage Loan that is done in connection
      with
      compliance with the Relief Act) which the Company reasonably anticipates may
      result in a realized loss of 20% or more of the outstanding principal balance
      of
      a Mortgage Loan, the Company shall present such proposed waiver, modification,
      postponement or indulgence, together with any supporting documentation, to
      the
      Master Servicer for consideration and approval.  The Company shall
      submit all waivers, modifications or variances of the terms of any Mortgage
      Loan
      with respect to partial releases, assumptions of mortgages or for modifications
      done in furtherance of compliance with the Relief Act, together with any
      supporting documentation, to the Master Servicer for consideration and
      approval.

    

    In
      connection with any such Servicing Modification, the Company may reimburse
      itself from the Trust for any outstanding Monthly Advances and Servicing
      Advances in the same calendar month as the Servicing Modification to the extent
      that such Monthly Advances or Servicing Advances are reimbursable to the Company
      and to the extent of the related principal portion of funds available for the
      related Distribution Date (as defined in the related pooling and servicing
      agreement). To the extent there are not sufficient principal funds available
      on
      the related Distribution Date to reimburse the Company for such Monthly Advances
      and Servicing Advances, the Company may reimburse itself on a first priority
      basis from related principal funds that are available on future Distribution
      Dates. If any mortgagor’s obligation to repay any outstanding amounts due under
      the terms of the related Mortgage Loan for which a Monthly Advance or Servicing
      Advance has been made by the Company is forgiven, any such Monthly Advance
      or
      Servicing Advance will be treated as a realized loss which will be incurred
      on
      the Distribution Date related to the calendar month during which the Servicing
      Modification occurred.

    

    In
      the
      event of any such waiver, modification, postponement or indulgence which has
      been agreed to in writing by the Owner and which permits the deferral of
      interest or principal payments on any Mortgage Loan, the Company shall, on
      the
      Business Day immediately preceding the related Remittance Date in any month
      in
      which any such principal or interest payment has been deferred, deposit in
      the
      Custodial Account from its own funds, in accordance with Section 4.04 and
      Section 5.03, the difference between (a) such month's principal and one month's
      interest at the related Mortgage Loan Remittance Rate on the unpaid principal
      balance of such Mortgage Loan and (b) the amount paid by the Mortgagor. The
      Company shall be entitled to reimbursement for Monthly Advances and Servicing
      Advances pursuant to Section 4.05. Without limiting the generality of the
      foregoing, the Company shall continue, and is hereby authorized and empowered,
      to prepare, execute and deliver, all instruments of satisfaction or
      cancellation, or of partial or full release, discharge and all other comparable
      instruments, with respect to the Mortgage Loans and with respect to the
      Mortgaged Properties.

    

    (i)  The
      first
      paragraph of Section 4.04 of SWS Agreement is deleted in its entirety and
      replaced with the following:

     

    The
      Company shall segregate and hold all funds collected and received pursuant
      to a
      Mortgage Loan separate and apart from any of its own funds and general assets
      and shall establish and maintain one or more Custodial Accounts, in the form
      of
      time deposit or demand accounts, titled “Countrywide Home Loans, Inc. in trust
      for EMC Mortgage Corporation, as purchaser of Residential Adjustable Rate
      Mortgage Loans and various Mortgagors”. The Custodial Account shall be
      established with a depository institution that is a Qualified Depository. In
      the
      event of a downgrade, withdrawal or suspension of the Ratings of such Qualified
      Depository which would result in the reduction or withdrawal of their
      then-current ratings of the Certificates, the Custodial Account shall promptly
      (and in any case within not more than 30 calendar days) be moved to another
      Qualified Depository. Any funds deposited in the Custodial Account shall at
      all
      times be fully insured to the full extent permitted under applicable law. Funds
      deposited in the Custodial Account may be drawn on by the Company in accordance
      with Section 4.05. The creation of any Custodial Account shall be evidenced
      by a
      certification in the form of Exhibit D-1 hereto, in the case of an
      account established with the Company, or by a letter agreement in the form
      of
Exhibit D-2 hereto, in the case of an account held by a depository other
      than the Company. A copy of such certification or letter agreement shall be
      furnished to the Purchaser and, upon request, to any subsequent
      Purchaser.

    

    (j)  The
      first
      sentence of Section 5.02 of the SWS Agreement is hereby deleted and replaced
      with the following:

     

    Not
      later
      than the 5th
      business day of each calendar month, the Company shall provide a monthly report
      substantially in the form of Exhibit I and Exhibit J, with respect
      to remittances, Exhibit K, with respect to realized losses and gains,
Exhibit L, with respect to defaulted mortgage loans, Exhibit M,
      with respect to modified mortgage loans, Exhibit N, with respect to
      claims submitted and Exhibit O, with respect to loss severity, with each
      such report.

     

    (k)  Exhibit
      F
      to the SWS Agreement is hereby deleted in its entirety and replaced with the
      reporting exhibits attached hereto as Attachment 3 in formats mutually
      agreeable to the Company and the Master Servicer.  Notwithstanding the
      foregoing, the Company is not required to report data relating to prepayment
      charges or penalties.

     

    (l)  The
      SWS
      Agreement is hereby amended as of the date hereof by inserting a new Exhibit
      I,
      a copy of which is annexed hereto as Attachment 4.

     

    (m)  The
      SWS
      Agreement is hereby amended as of the date hereof by inserting a new Exhibit
      J,
      a copy of which is annexed hereto as Attachment 5.

     

    (n)  The
      SWS
      Agreement is hereby amended as of the date hereof by inserting a new Exhibit
      K,
      a copy of which is annexed hereto as Attachment 6.

     

    (o)  The
      SWS
      Agreement is hereby amended as of the date hereof by inserting a new Exhibit
      L,
      a copy of which is annexed hereto as Attachment 7.

     

    (p)  The
      SWS
      Agreement is hereby amended as of the date hereof by inserting a new Exhibit
      M,
      a copy of which is annexed hereto as Attachment 8.

     

    (q)  The
      SWS
      Agreement is hereby amended as of the date hereof by inserting a new Exhibit
      N,
      a copy of which is annexed hereto as Attachment 9.

     

    (r)  The
      SWS
      Agreement is hereby amended as of the date hereof by inserting a new Exhibit
      O,
      a copy of which is annexed hereto as Attachment 10.

     

    13.  The
      Company hereby acknowledges that EMC Mortgage Corporation (the “Master
      Servicer”) has been appointed as the master servicer of the Mortgage Loans
      pursuant to the pooling and servicing agreement for the Prime Mortgage
      Trust, Mortgage Pass-Through Certificates, Series 2007-3, and therefore has
      the
      right to enforce on behalf of the Assignee all obligations of the
      Company under the SWS Agreement.  Such right will include, without
      limitation, the right to terminate the Servicer under the SWS Agreement upon
      the
      occurrence of an event of default thereunder, the right to receive all
      remittances required to be made by the Company under the SWS Agreement, the
      right to receive all monthly reports and other data required to be delivered
      by
      the Company under the SWS Agreement, the right to examine the books and records
      of the Company and the right to exercise certain rights of consent and approval
      relating to actions taken by the Company; provided, however, all parties hereto
      agree that such enforcement of a right shall only be exercised by one
      party.  Notwithstanding the foregoing, it is understood that the
      Company shall not be obligated to defend and indemnify and hold harmless the
      Master Servicer, the Assignor and the Assignee against any losses, damages,
      penalties, fines, forfeiture, judgments and any related costs including, without
      limitation, reasonable and necessary legal fees, resulting from (i) actions
      or
      inactions of the Company which were taken or omitted upon the instruction or
      direction of the Master Servicer or Assignee, as applicable, or (ii) the failure
      of the Assignee or the Assignee’s designee, as applicable, to perform the
      obligations of “Purchaser” under the SWS Agreement, as modified by the
      Agreement.

     

    The
      Company shall make all distributions under the SWS Agreement to the Master
      Servicer by wire transfer of immediately available funds to:

     

    EMC
      Master Servicing Remittances

    Bank: 
      Chase Bank of Texas

    Branch: 
      Irving, Texas

    Account
      Name:  EMC Mortgage Corporation

    ABA
      #
      113000609

    ACCOUNT
      #
      000000709377717

    Reference:
      M/S Remittance August 1, 2007 Remit for Countrywide Home Loans Servicing
      LP.

    Attention: 
      LSBO Group-MS

    

    and
      the
      Company shall deliver all reports required to be delivered under the SWS
      Agreement to the Master Servicer at:

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas  75067

    Attention:
      Michelle Viner

    Facsimile:
      (214) 626-4889

    Email:
      mviner@bear.com

    

     

    14.  Notices:

     

    The
      Assignor’s address for purposes of all notices and correspondence related to the
      Mortgage Loans and this Agreement is:

     

    EMC
      Mortgage Corporation

    2780
      Lake
      Vista Drive

    Lewisville,
      Texas  75067

    Attention:
      Michelle Viner

    Facsimile:
      (214) 626-4889

    Email:
      mviner@bear.com

    

     

    The
      Assignee’s address for purposes of all notices and correspondence related to the
      Mortgage Loans and this Agreement is:

     

    U.S.
      Bank
      National Association, as Trustee

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Attention:
      Corporate Trust Services, PRIME 2007-3

    Telecopier
      No.: (617) 603-6638

    

    The
      Company’s address for purposes of all notices and correspondence related to the
      Mortgage Loans and this Agreement is:

     

    Countrywide
      Home Loans Servicing LP

    400
      Countrywide Way

    Simi
      Valley, California 93065

    Attention:
      John Lindberg, Rachel Meza, Eric Varnen and Yuan Li

     

    Miscellaneous:

     

    15.  Each
      party will pay any commissions it has incurred and the Assignor shall pay the
      fees of its attorneys and the reasonable fees of the attorneys of the Assignee
      and the Company in connection with the negotiations for, documenting of and
      closing of the transactions contemplated by this Agreement.

     

    16.  This
      Agreement shall be construed in accordance with the laws of the State of New
      York, without regard to conflicts of law principles (other than Section 5-1401
      of the New York Obligations Law), and the obligations, rights and remedies
      of
      the parties hereunder shall be determined in accordance with such
      laws.

     

    17.  No
      term
      or provision of this Agreement may be waived or modified unless such waiver
      or
      modification is in writing and signed by the party against whom such waiver
      or
      modification is sought to be enforced.

     

    18.  This
      Agreement shall inure to the benefit of the permitted successors and assigns
      of
      the parties hereto. Any entity into which the Assignor, the Assignee, or
      the Company may be merged or consolidated shall, without the requirement for
      any
      further writing, be deemed the Assignor, the Assignee, or the Company,
      respectively, hereunder.

     

    19.  This
      Agreement shall survive the conveyance of the Mortgage Loans, the assignment
      of
      the SWS Agreement to the extent of the Mortgage Loans by the Assignor to the
      Assignee and the termination of the SWS Agreement.

     

    20.  This
      Agreement may be executed simultaneously in any number of counterparts. Each
      counterpart shall be deemed to be an original and all such counterparts shall
      constitute one and the same instrument.

     

    21.  In
      the
      event that any provision of this Agreement conflicts with any provision of
      the
      SWS Agreement with respect to the Mortgage Loans, the terms of this Agreement
      shall control.

     

    IN
      WITNESS WHEREOF, the parties have
      caused this Agreement to be executed by their duly authorized officers as of
      the
      date first above written.

     

    
      	
              EMC
                MORTGAGE CORPORATION

            
	
              Assignor

            
	 
	
              By:

            	 
	
              Name:

            	 
	
              Title

               

            	 
	
              U.S.
                BANK NATIONAL ASSOCIATION, not individually but solely as trustee
                for the holders of Prime Mortgage Trust, Mortgage Pass-Through
                Certificates, Series 2007-3

               

            
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 
	 
	
              COUNTRYWIDE
                HOME LOANS SERVICING LP

              By:
                Countrywide GP, Inc., its General Partner

               

            
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

    
      	
              Acknowledged
                and Agreed:

            
	 
	
              EMC
                MORTGAGE CORPORATION

            
	
              Master
                Servicer

            
	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Attachment
      1

     

    Mortgage
      Loans

     

    [Provided
      Upon Request]

     

     

    Attachment
      2

     

    Articles
      IV, V, and VI of the SWS Agreement.

     

    [Provided
      Upon Request]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Attachment
      3

     

    EXHIBIT
      F
      to the SWS Agreement

     

     

      Standard  File
        Layout - Master Servicing

    

    

    
      	
              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

            
	
              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

            

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Attachment
      4

    

    EXHIBIT
      I
      to the SWS Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

    

    Remittance
      Overview Report:  Provides loan level detail regarding the
      remittance that will be submitted to EMC Master Servicing and contains the
      following data fields in the order below:

    

     

    
      	
              Field

               

            	
              Field
                Description

            
	
              Deal
                Name

               

            	
              VARCHAR
                (15)

               

            
	
              Master
                Servicer Loan Number

               

            	
              NUMERIC
                (9,0)

               

            
	
              Current
                Investor Category

               

            	
              VARCHAR
                (5)

               

            
	
              Original
                Investor Category

               

            	
              VARCHAR
                (5)

               

            
	
              Servicer
                Loan Number

               

            	
              VARCHAR
                (15)

               

            
	
              Cutoff
                Date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Loan
                Next Due Date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Gross
                Interest Rate

               

            	
              NUMERIC
                (7,7)

               

            
	
              Net
                Interest Rate

               

            	
              NUMERIC
                (7,7)

               

            
	
              Pending
                Interest Rate

               

            	
              NUMERIC
                (7,7)

               

            
	
              Servicing
                Fee Rate

               

            	
              NUMERIC
                (7,7)

               

            
	
              MI
                Rate

               

            	
              NUMERIC
                (7,7)

               

            
	
              Scheduled
                P&I Amount (P & I Constant)

               

            	
              NUMERIC
                (12,2)

               

            
	
              ARM
                Index

               

            	
              NUMERIC
                (7,7)

               

            
	
              Pending
                ARM Index

               

            	
              NUMERIC
                (7,7)

               

            
	
              Beginning
                Scheduled Principal Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Actual
                Principal Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Actual
                Principal Curtailment Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Curtailment
                Adjustment Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Liquidation
                Principal Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Principal
                Not Advanced (stop advance loans only)

               

            	
              NUMERIC
                (12,2)

               

            
	
              Scheduled
                Gross Interest

               

            	
              NUMERIC
                (12,2)

               

            
	
              Actual
                Interest Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Scheduled
                Service Fee Amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              Soldiers
                and Sailors Variance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Net
                Interest Not Advanced

               

            	
              NUMERIC
                (12,2)

               

            
	
              Prepayment
                Penalty Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              PMI
                Premium Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Additional
                Fees Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Ending
                Scheduled Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Actual
                Amount Remitted Total (each loan)

               

            	
              NUMERIC
                (12,2)

               

            
	
              Beginning
                Actual Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Actual
                Principal Collected

               

            	
              NUMERIC
                (12,2)

               

            
	
              Actual
                Curtailments Collected

               

            	
              NUMERIC
                (12,2)

               

            
	
              Curtailment
                Adjustment Collected

               

            	
              NUMERIC
                (12,2)

               

            
	
              Gross
                Interest Collected

               

            	
              NUMERIC
                (12,2)

               

            
	
              Net
                Interest Collected

               

            	
              NUMERIC
                (12,2)

               

            
	
              Service
                Fee Collected

               

            	
              NUMERIC
                (12,2)

               

            
	
              Actual
                Ending Principal Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Liquidation
                Date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Liquidation
                Type

               

            	
              VARCHAR
                (1)

               

            
	
              Gross
                Liquidation Proceeds

               

            	
              NUMERIC
                (12,2)

               

            
	
              Liquidation
                Expenses

               

            	
              NUMERIC
                (12,2)

               

            
	
              Principal
                and Interest Advanced Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Delinquent
                Service Fee

               

            	
              NUMERIC
                (12,2)

               

            
	
              Calculated
                Loss to Trust

               

            	
              NUMERIC
                (12,2)

               

            
	
              Net
                Interest Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Collected
                Interest Not Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Ending
                Advance Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Soldiers
                and Sailors Flag

               

            	
              VARCHAR
                (1)

               

            
	
              Soldiers
                and Sailors Old Rate

               

            	
              NUMERIC
                (7,7)

               

            
	
              Soldiers
                and Sailors Old P & I

               

            	
              NUMERIC
                (12,2)

               

            
	
              Modified
                Date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Stop
                Advance Flag

               

            	 
	
              Stop
                Advance Date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              BPO
                Value

               

            	
              NUMERIC
                (12,2)

               

            
	
              Cash
                Flow Group

               

            	
              VARCHAR
                (2)

               

            
	
              MSP
                Principal Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Debt
                Forgiven / Charged Off

               

            	
              NUMERIC
                (12,2)

               

            
	
              Mortgagor
                PITI Payment

               

            	
              NUMERIC
                (12,2)

               

            
	
              Bankruptcy
                Status

               

            	
              VARCHAR
                (2)

               

            
	
              Foreclosure
                Status

               

            	
              VARCHAR
                (2)

               

            
	
              Modification
                Status

               

            	 
	
              Interest
                Only Loan

               

            	
              VARCHAR
                (2)

               

            
	
              Escrowed
                Loan

               

            	
              VARCHAR
                (2)

               

            
	
              Monthly
                Escrow Deposit

               

            	
              NUMERIC
                (12,2)

               

            
	
              Escrow
                Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Escrow
                Advance Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Restricted
                Escrow Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Mortgagor
                Recoverable Corporate Expense Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Non-Recoverable
                Corporate Expense Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              HUD
                235 Loan Status

               

            	
              VARCHAR
                (2)

               

            
	
              HUD
                235 Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Late
                Charge Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Buydown
                Loan Status

               

            	
              VARCHAR
                (2)

               

            
	
              Monthly
                Buydown Amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              Monthly
                Buydown Funds Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Prepayment
                Penalty Amount Waived

               

            	
              NUMERIC
                (12,2)

               

            
	
              Prepayment
                Penalty Waived Reason Code

               

            	
              VARCHAR
                (3)

               

            
	
              Material
                Breach Status

               

            	
              VARCHAR
                (3)

               

            
	
              Material
                Breach Code

               

            	
              VARCHAR
                (3)

               

            
	
              Prefunding
                Date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              3rd
                Party
                Recoverable Expenses

               

            	
              NUMERIC
                (12,2)

               

            

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Attachment
      5

     

    

    EXHIBIT
      J
      to the SWS Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

    

    Remittance
      Summary Report:  Provides summary data at a deal
      (investor/category) level regarding the remittance that will be submitted to
      EMC
      Master Servicing and contains the following data fields in the order
      below:

     

    
      	
              Field

               

            	
              Field
                Description

            
	
              Deal

               

            	
              VARCHAR
                (15)

               

            
	
              Investor

               

            	
              VARCHAR
                (5)

               

            
	
              Category

               

            	
              VARCHAR
                (5)

               

            
	
              Principal
                Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Curtailments
                Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Curtailment
                Adjustments Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Liquidation
                Proceeds Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Principal
                Not Advanced (stop advance loans only)

               

            	
              NUMERIC
                (15,2)

               

            
	
              Principal
                Amounts Called/Collapsed

               

            	
              NUMERIC
                (15,2)

               

            
	
              Total
                Principal Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Interest
                Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              PMI
                Premiums Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Soldiers
                and Sailors Difference

               

            	
              NUMERIC
                (15,2)

               

            
	
              Net
                Interest Not Advanced

               

            	
              NUMERIC
                (15,2)

               

            
	
              Non
                Comp Interest Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Prepayment
                Penalties Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Total
                Interest Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Arrearage
                Amount Remitted

               

            	
              NUMERIC
                (15,2)

               

            
	
              Aggregate
                Loss to Trust

               

              Total
                Manual Adjustments

            	
              NUMERIC
                (15,2)

               

            
	
              Debt
                Forgiven/ Charged Off

               

            	
              NUMERIC
                (15,2)

               

            
	
              Additional
                Fees Collected

               

            	
              NUMERIC
                (15,2)

               

            
	
              Total
                Remittance

               

            	
              NUMERIC
                (15,2)

               

            

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Attachment
      6

    

    EXHIBIT
      K
      to the SWS Agreement

    

     

    EMC
      Master Servicing Calculation of Gain/Loss on Delinquent Loan
      Worksheet

     

    

     

    Date:        
        __________________________

     

    

     

    
      	
              Prepared
                By

            	
              Phone
                Number

            	
              Email
                Address

            
	 	 	 

    

    
 

     

    
      	
              Servicer
                Loan Number

            	
              Servicer
                Address

            	
              EMC
                Loan Number

            
	 	 	 

    

     

    

     

    
      	
              Borrower
                Name

            	
              Property
                Address

            
	
               

               

               

            	 

    

     

    

     

    
      	
              Liquidation
                Type

               

            	
              REO

               

            	
              Third
                Party

               

            	
              Short
                Sale

               

            	
              Charge
                off

               

            	
              Deed
                In Lieu

               

            
	 	 	 	 	 	 

    

     

    

     

    
      	 	
              Has
                this loan been previously modified?

            	
              Yes

            	
              No

            
	 	
              Has
                this loan been crammed down in a bankruptcy?

            	
              Yes

            	
              No

            

    

     

    If
“Yes”,
      provide amount _______________________________

     

     

    
      Liquidation
        and Acquisition Expenses:

    

    

     Amounts
      requiring Amortization Schedule for backup:

     

     

    
      	
              Actual
                Unpaid Principal Balance of Mortgage Loan

            	 
	
              Interest
                      Accrued at Net Rate Less Servicing Fees

            	 
	
              Accrued
                Servicing Fees

            	 

    

     

     

    Amounts
      requiring Additional backup:

     

    
      	
              Attorney’s
                Fees

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              Attorney’s
                Costs

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              Taxes

               

            	
              Payment
                history showing disbursements

               

            	 
	
              Property
                Maintenance

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              Property
                Inspection

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              PMI/Hazard
                Insurance Premiums

               

            	
              Payment
                history showing disbursements

               

            	 
	
              Utility
                Expenses

               

            	
              Payment
                history showing disbursements

               

            	 
	
              Appraisal/BPO
                Expenses

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              HOA
                Dues

               

            	
              Payment
                history showing disbursements

               

            	 
	
              Cash
                For Keys

               

            	
              Corporate
                advance history defining amounts paid, reimbursed, payee and reason
                codes

               

            	 
	
              Miscellaneous
                (itemized)

               

            	
              Requires
                Itemization and supporting detail

               

            	 
	
              Total
                Expenses

               

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

               

            	 

    

     

     

    
      Credits
        to Loan:

    

     

    
      	
              Escrow
                Balance/Advance

               

            	
              Payment
                history showing disbursements and ending balance

               

            	 
	
              Rental
                Receipts

               

            	
              Payment
                history showing application of funds to loan

               

            	 
	
              Hazard
                Claim Proceeds

               

            	
              Payment
                history showing credit to account

               

            	 
	
              PMI
                Funds

               

            	
              EOB
                document

               

            	 
	
              Government
                Insurance Funds (Part A Funds)

               

            	
              EOB
                document

               

            	 
	
              REO
                Proceeds

               

            	
              HUD
                1 Settlement Statement

               

            	 
	
              Government
                Insurance Funds (Part B Funds)

               

            	
              EOB
                document

               

            	 
	
              Pool
                Insurance Proceeds

               

            	
              Payment
                history showing credit to account

               

            	 
	
              Other
                Credits (itemized)

               

            	
              Payment
                history showing credit to account

               

            	 
	
              Total
                Credits

               

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

               

            	 

    

     

     

    
      	
              Total
                Realized Loss (or Amount of Gain)

            	
              $________________

            

    

     

     

    NOTE:  Do
      not combine or net remit items.  All expenses and credits should be
      documented individually.   Claim packages are due by the fifth
      business day of the month following receipt of liquidation
      proceeds.  Late claims may result in delayed claim
      payment.  The Servicer is responsible to remit all funds pending loss
      approval and /or resolution of any disputed items.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Attachment
      7

    

    EXHIBIT
      L
      to the SWS Agreement

    

    The
      Company shall provide the Master Servicer with this Exhibit in the format below
      or such other format as mutually agreed upon between the Company and the Master
      Servicer.

     

    Default
      Overview Report:  Provides loan level detail regarding the
      defaulted loans that are being serviced and reported to EMC Master
      Servicing.  The report contains the following data fields in the order
      below:

    

     

    
      	
              Field

               

            	
              Field
                Description

               

            
	
              Servicer
                loan number

               

            	
              VARCHAR
                (15)

               

            
	
              SBO
                loan number

               

            	
              VARCHAR
                (9)

               

            
	
              Zip
                Code

               

            	
              VARCHAR
                (5)

               

            
	
              Original
                loan amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              Original
                value amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              Origination
                date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Loan
                type

               

            	
              VARCHAR
                (2)

               

            
	
              Actual
                due date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Current
                loan amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              Corporate
                expense balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Escrow
                balance/advance balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Suspense
                balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Restricted
                escrow balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Current
                Value date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Current
                value amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              Current
                value source

               

            	
              VARCHAR
                (15)

               

            
	
              VA
                LGC/ FHA Case number

               

            	
              VARCHAR
                (15)

               

            
	
              %
                of MI coverage

               

            	
              NUMERIC
                (7,7)

               

            
	
              MI
                certificate number

               

            	
              VARCHAR
                (15)

               

            
	
              LPMI
                Cost

               

            	
              NUMERIC
                (7,7)

               

            
	
              Occupancy
                status

               

            	
              VARCHAR
                (1)

               

            
	
              First
                vacancy date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Property
                condition

               

            	
              VARCHAR
                (2)

               

            
	
              Property
                type

               

            	
              VARCHAR
                (2)

               

            
	
              Delinquency
                flag

               

            	
              VARCHAR
                (2)

               

            
	
              Reason
                for default

               

            	
              VARCHAR
                (2)

               

            
	
              FNMA
                action code

               

            	
              VARCHAR
                (3)

               

            
	
              FNMA
                delinquency reason code

               

            	
              VARCHAR
                (3)

               

            
	
              Loss
                mit flag

               

            	
              VARCHAR
                (2)

               

            
	
              Loss
                mit type

               

            	
              VARCHAR
                (2)

               

            
	
              Loss
                mit approval date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Loss
                mit removal date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Repay
                first due date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Repay
                next due date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Repay
                plan broken/reinstated/closed date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Repay
                plan created date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Foreclosure
                flag

               

            	
              VARCHAR
                (2)

               

            
	
              Foreclosure
                attorney referral date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Actual
                first legal date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Date
                FC sale scheduled

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Foreclosure
                actual sale date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Actual
                redemption end date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Actual
                eviction complete date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Actual
                eviction start date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Bankruptcy
                flag

               

            	
              VARCHAR
                (2)

               

            
	
              Actual
                bankruptcy start date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Bankruptcy
                chapter

               

            	
              VARCHAR
                (2)

               

            
	
              Bankruptcy
                Case Number

               

            	
              VARCHAR
                (15)

               

            
	
              Post
                petition due date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Actual
                discharge date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Date
                relief/dismissal granted

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Actual
                MI claim filed date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Actual
                MI claim amount filed

               

            	
              NUMERIC
                (12,2)

               

            
	
              MI
                claim amount paid

               

            	
              NUMERIC
                (12,2)

               

            
	
              MI
                claim funds received date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Title
                approval letter received date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Title
                package HUD/VA date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              FHA
                27011A transmitted date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              FHA
                Part A funds received date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              FHA
                27011 B transmitted date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              FHA
                Part B funds received date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              VA
                NOE submitted date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              VA
                first funds received amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              VA
                first funds received date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              VA
                claim funds received date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              VA
                claim submitted date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              VA
                claims funds received amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              REO
                flag

               

            	
              VARCHAR
                (2)

               

            
	
              REO
                repaired value

               

            	
              NUMERIC
                (12,2)

               

            
	
              REO
                value (as is)

               

            	
              NUMERIC
                (12,2)

               

            
	
              REO
                value date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              REO
                value source

               

            	
              VARCHAR
                (15)

               

            
	
              REO
                original list date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              REO
                original list price

               

            	
              NUMERIC
                (12,2)

               

            
	
              REO
                list price adjustment amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              REO
                list price adjustment date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Date
                REO offer received

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Date
                REO offer accepted

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              REO
                scheduled close date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              REO
                actual closing date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              REO
                sales price

               

            	
              NUMERIC
                (12,2)

               

            
	
              REO
                net sales proceeds

               

            	
              NUMERIC
                (12,2)

               

            
	
              Estimated
                loss

               

            	
              NUMERIC
                (12,2)

               

            

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Attachment
      8

    

    EXHIBIT
      M
      to the SWS Agreement

    

    Modified
      Loans Report:   Provides loan level data regarding all loans that
      the Servicer has modified with the first modified payment due within thirty
      days
      following the end of the reporting cycle.  The report contains the
      following data fields in the order below:

    

     

    
      	
              Field
                Description

               

            	
              Field
                Description

               

            
	
              Loan

               

            	
              VARCHAR
                (15)

               

            
	
              Investor

               

            	
              VARCHAR
                (5)

               

            
	
              Original
                Category

               

            	
              VARCHAR
                (5)

               

            
	
              Current
                Category

               

            	
              VARCHAR
                (5)

               

            
	
              Stop
                Adv Flag

               

            	
              VARCHAR
                (3)

               

            
	
              Modified
                Due Date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Mod
                Loan Curtailment

               

            	
              NUMERIC
                (15,2)

               

            
	
              Mod
                Loan Curt Adjustment

               

            	
              NUMERIC
                (15,2) 

               

            
	
              Principal
                Advanced Capped

               

            	
              NUMERIC
                (15,2) 

               

            
	
              Net
                Interest Advanced Capped

               

            	
              NUMERIC
                (15,2)

               

            
	
              Service
                Fee Advanced Capped

               

            	
              NUMERIC
                (15,2)

               

            
	
              Third
                Party Bal Capped

               

            	
              NUMERIC
                (15,2)

               

            
	
              Amount
                of Other Capped

               

            	
              NUMERIC
                (15,2)

               

            
	
              Borrower
                Interest Contribution

               

            	
              NUMERIC
                (15,2)

               

            
	
              Borrower
                Fee Code Arrearage Contribution

               

            	
              NUMERIC
                (15,2)

               

            
	
              Borrower
                Principal Contribution

               

            	
              NUMERIC
                (15,2)

               

            
	
              Amt
                Forgiven

               

            	
              NUMERIC
                (15,2)

               

            
	
              Beg
                Delq Prin Bal

               

            	
              NUMERIC
                (15,2)

               

            
	
              Beg
                Delq Int Bal

               

            	
              NUMERIC
                (15,2)

               

            
	
              Beg
                Pre Prin Bal

               

            	
              NUMERIC
                (15,2)

               

            
	
              Beg
                Pre Int Bal

               

            	
              NUMERIC
                (15,2)

               

            
	
              Excess
                Int Adjust

               

            	
              NUMERIC
                (15,2)

               

            
	
              Excess
                Interest on Mod

               

            	
              NUMERIC
                (15,2)

               

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Attachment
      9

    

    EXHIBIT
      N
      to the SWS Agreement

    

    Claims
      Submitted Report:  Provides loan level detail regarding claims
      submitted by the servicer’s investor number that will be submitted to EMC Master
      Servicing and contains the following data fields in the order
      below:

     

    
      	
              Field

               

            	
              Field
                Description

               

            
	
              Servicer
                Investor Number

               

               

            	
              VARCHAR
                (5)

               

            
	
              Servicer
                Investor Category

               

               

            	
              VARCHAR
                (5)

               

            
	
              Loan
                Number

               

               

            	
              VARCHAR
                (15)

               

            
	
              Mortgage
                Group

               

               

            	
              VARCHAR
                (1)

               

            
	
              Liquidation
                Type

               

               

            	
              VARCHAR
                (1)

               

            
	
              Escrow
                Balance or Advance Balance

               

               

            	
              NUMERIC
                (12,2)

               

            
	
              Corporate
                Expense Balance

               

               

            	
              NUMERIC
                (12,2)

               

            
	
              Restricted
                Escrow Balance

               

               

            	
              NUMERIC
                (12,2)

               

            
	
              Replacement
                Reserve Balance

               

               

            	
              NUMERIC
                (12,2)

               

            
	
              Suspense
                Balance

               

               

            	
              NUMERIC
                (12,2)

               

            
	
              Third
                Party Expense Balance

               

               

            	
              NUMERIC
                (12,2)

               

            
	
              Charge
                Off Amount

               

               

            	
              NUMERIC
                (12,2)

               

            
	
              Side
                Note Collections

               

               

            	
              NUMERIC
                (12,2)

               

            
	
              Claim
                Amount Submitted

               

               

            	
              NUMERIC
                (12,2)

               

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

    

    Attachment
      10

    

    EXHIBIT
      O
      to the SWS Agreement

    

    Loss
      Severity Summary Report:  Provides summary data at the deal level
      regarding loss severity that will be submitted to EMC Master Servicing and
      contains the following data fields in the order below:

     

     

    
      	
              Field

            	
              Field
                Description

               

            
	
              Month
                End

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Deal
                Name

               

            	
              VARCHAR
                (15)

               

            
	
              Servicer
                Investor Number

               

            	
              VARCHAR
                (5)

               

            
	
              Servicer
                Investor Category

               

            	
              VARCHAR
                (5)

               

            
	
              Mortgage
                Group

               

            	
              VARCHAR
                (1)

               

            
	
              Loan
                Number

               

            	
              VARCHAR
                (15)

               

            
	
              Liquidation
                Type

               

            	
              VARCHAR
                (1)

               

            
	
              Loan
                Due Date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              PIF
                Date

               

            	
              DATE
                (MM/DD/YYYY)

               

            
	
              Gross
                Interest Rate

               

            	
              NUMERIC
                (7,7)

               

            
	
              Net
                Interest Rate

               

            	
              NUMERIC
                (7,7)

               

            
	
              Service
                Fee Rate

               

            	
              NUMERIC
                (7,7)

               

            
	
              P
                & I Constant

               

            	
              NUMERIC
                (12,2)

               

            
	
              Scheduled
                Beginning Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Arrearage
                Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Total
                Legal and Other Expenses

               

            	
              NUMERIC
                (12,2)

               

            
	
              Scheduled
                Advanced Interest

               

            	
              NUMERIC
                (12,2)

               

            
	
              Scheduled
                Liquidated Amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              Gross
                Liquidation Proceeds

               

            	
              NUMERIC
                (12,2)

               

            
	
              P
                & I Advance Balance

               

            	
              NUMERIC
                (12,2)

               

            
	
              Delinquent
                Service Fee

               

            	
              NUMERIC
                (12,2)

               

            
	
              Net
                Liquidation Proceeds

               

            	
              NUMERIC
                (12,2)

               

            
	
              Scheduled
                Net Interest

               

            	
              NUMERIC
                (12,2)

               

            
	
              Net
                Liquidated Funds Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Total
                Loss (Gain) Amount

               

            	
              NUMERIC
                (12,2)

               

            
	
              Total
                Loss (Gain) to Trust

               

            	
              NUMERIC
                (12,2)

               

            
	
              Total
                Loss (Gain) to Servicer

               

            	
              NUMERIC
                (12,2)

               

            
	
              Total
                Loss Severity %

               

            	
              NUMERIC
                (7,7)

               

            
	
              Total
                Loss Severity % to Trust

               

            	
              NUMERIC
                (7,7)

               

            
	
              Total
                Liquidated Remitted

               

            	
              NUMERIC
                (12,2)

               

            
	
              Claim
                on Trust Loss

               

            	
              NUMERIC
                (12,2)

               

            
	
              Claim
                on Servicer Loss

               

            	
              NUMERIC
                (12,2)

               

            
	
              Total
                Claim Amount

               

            	
              NUMERIC
                (12,2)

               

            

    

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      K

    

    FORM
      OF
      BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE

    

     

    The
      [                   ]
      agreement dated as of [      ], 200[ ] (the
“Agreement”), among [IDENTIFY PARTIES]

     

    I,
      ________________________________, the _______________________ of [NAME OF
      COMPANY], certify to  [the Depositor] and the [Master Servicer]
      [Trustee], and their officers, with the knowledge and intent that they will
      rely
      upon this certification, that:

     

    (1)           I
      have reviewed the servicer compliance statement of the Company 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 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 the Company during 200[ ] that were delivered
      by the Company to the Depositor 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 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
      and the Trustee;

     

    (4)           I
      am responsible for reviewing the activities performed by the Company as servicer
      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
      Company has fulfilled its obligations under the Agreement in all material
      respects; and

     

    (5)           The
      Compliance Statement required to be delivered by the Company pursuant to the
      Agreement, and the Servicing Assessment and Attestation Report required to
      be
      provided by the Company and by any subservicer or subcontractor pursuant to
      the
      Agreement, have been provided to the Depositor and the Trustee.  Any
      material instances of noncompliance described in such reports have been
      disclosed to the Depositor and the Trustee.  Any material instance of
      noncompliance with the Servicing Criteria has been disclosed in such
      reports.

     

    Date:                      _________________________

     

    By:

     

    Name:                      _______________________________

     

    Title:                      ________________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      L

     

    SERVICING
      CRITERIA TO BE ADDRESSED

    IN
      ASSESSMENT OF COMPLIANCE

     

    Definitions

    Primary
      Servicer – transaction party having borrower contact

    Master
      Servicer – aggregator of pool assets

    Trustee
–
      waterfall calculator; fiduciary of the transaction

    Back-up
      Servicer – named in the transaction (in the event a Back up Servicer becomes the
      Primary Servicer, follow Primary Servicer obligations)

    Custodian
      – safe keeper of pool assets

    

    Note:  The
      definitions above describe the essential function that the party performs,
      rather than the party’s title.

     

    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.

     

    Key:  
      X – obligation

    

     

    
      	
              Reg
                AB 

              Reference

            	
              Servicing
                Criteria

            	
              Primary

              Servicer

            	
              Master
                Servicer

            	
              Trustee

            	
              Custodian

            
	 	
              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

            	
              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.

              [This
                Agreement states that payments will be deposited within two business
                days
                after “receipt and identification”. ]

            	
              X

            	
              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

            	
              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

            	
              X

              (to
                the extent an advance is made)

            	 
	
              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

            	
              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

            	
              X

            	 
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	
              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.

              [This
                Agreement states that reconciliations will be prepared within 45
                calendar days after the bank statement cut-off date.]

            	
              X

            	
              X

            	
              X

            	 
	 	
              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

            	
              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

            	
              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

            	
              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

            	
              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

            
	
              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

            	 	
              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

            	
              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

            	
              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

            	 	 	 
	
              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.  In this transaction there is no
                external enhancement or other support.

            	
              X

            	 	
              X

            	 

    

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      M

     

    FORM
      10-D, FORM 8-K AND FORM 10-K

    REPORTING
      RESPONSIBILITY

     

    As
      to
      each item described below, the entity indicated as the Responsible Party shall
      be primarily responsible for reporting the information to the party identified
      as responsible for preparing the Securities Exchange Act Reports pursuant to
      Section 4.18 of the Pooling and Servicing Agreement.

     

    Under
      Item 1 of Form 10-D: a) items marked “Monthly Statements to Certificateholders”
are required to be included in the periodic Distribution Date statement under
      Section 6.06, provided by the Trustee based on information received from the
      party providing such information; and b) items marked “Form 10-D report” are
      required to be in the Form 10-D report but not the Monthly Statements to
      Certificateholders, provided by the party indicated. Information under all
      other
      Items of Form 10-D is to be included in the Form 10-D report.  All
      such information and any other Items on Form 8-K and Form 10-D set forth in
      this
      Exhibit shall be sent to the Trustee and the Depositor.

     

    
      	
              Form

            	
              Item

            	
              Description

            	
              Servicers

            	
              Master
                Servicer

            	
              Trustee

            	
              Custodian

            	
              Depositor

            	
              Sponsor

            
	
              10-D

            	
              Must
                be filed within 15 days of the distribution date for the asset-backed
                securities.

            	 	 	 
	
              1

            	
              Distribution
                and Pool Performance Information

            	 	 	 	 	 	 
	
              Item
                1121(a) – Distribution and Pool Performance
                Information

            	 	 	 	 	 	 
	
              (1)
                Any applicable record dates, accrual dates, determination dates for
                calculating distributions and actual distribution dates for the
                distribution period.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (2)
                Cash flows received and the sources thereof for distributions, fees
                and
                expenses.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (3)
                Calculated amounts and distribution of the flow of funds for the
                period
                itemized by type and priority of payment, including:

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (i)
                Fees or expenses accrued and
                paid, with an identification of the general purpose of such fees
                and the
                party receiving such fees or expenses.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (ii)
                Payments accrued or paid
                with respect to enhancement or other support identified in Item 1114
                of
                Regulation AB (such as insurance premiums or other enhancement maintenance
                fees), with an identification of the general purpose of such payments
                and
                the party receiving such payments.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (iii)
                Principal, interest and
                other distributions accrued and paid on the asset-backed securities
                by
                type and by class or series and any principal or interest shortfalls
                or
                carryovers.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (iv)
                The amount of excess cash
                flow or excess spread and the disposition of excess cash
                flow.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (4)
                Beginning and ending principal balances of the asset-backed
                securities.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (5)
                Interest rates applicable to the pool assets and the asset-backed
                securities, as applicable. Consider providing interest rate information
                for pool assets in appropriate distributional groups or incremental
                ranges.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (6)
                Beginning and ending balances of transaction accounts, such as reserve
                accounts, and material account activity during the period.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (7)
                Any amounts drawn on any credit enhancement or other support identified
                in
                Item 1114 of Regulation AB, as applicable, and the amount of coverage
                remaining under any such enhancement, if known and
                applicable.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (8)
                Number and amount of pool assets at the beginning and ending of each
                period, and updated pool composition information, such as weighted
                average
                coupon, weighted average remaining term, pool factors and prepayment
                amounts.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

               

            	 	
              Updated
                pool composition information fields to be as specified by Depositor
                from
                time to time

            	 
	
              (9)
                Delinquency and loss information for the period.

            	
              X

               

            	
              X

               

            	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              In
                addition, describe any material changes to the information specified
                in
                Item 1100(b)(5) of Regulation AB regarding the pool assets.
                (methodology)

            	
              X

               

            	 	 	 	 	 
	
              (10)
                Information on the amount, terms and general purpose of any advances
                made
                or reimbursed during the period, including the general use of funds
                advanced and the general source of funds for
                reimbursements.

            	
              X

            	
              X

               

            	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (11)
                Any material modifications, extensions or waivers to pool asset terms,
                fees, penalties or payments during the distribution period or that
                have
                cumulatively become material over time.

            	
              X

               

            	
              X

               

            	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (12)
                Material breaches of pool asset representations or warranties or
                transaction covenants.

            	
              X

            	
              X

            	
              X

               

              (if
                agreed upon by the parties)

            	 	
              X

            	 
	
              (13)
                Information on ratio, coverage or other tests used for determining
                any
                early amortization, liquidation or other performance trigger and
                whether
                the trigger was met.

            	 	 	
              X

               

              (Monthly
                Statements to Certificateholders)

            	 	 	 
	
              (14)
                Information regarding any new issuance of asset-backed securities
                backed
                by the same asset pool,

            	 	 	 	 	
              X

            	 
	
              information
                regarding any pool asset changes (other than in connection with a
                pool
                asset converting into cash in accordance with its terms), such as
                additions or removals in connection with a prefunding or revolving
                period
                and pool asset substitutions and repurchases (and purchase rates,
                if
                applicable), and cash flows available for future purchases, such
                as the
                balances of any prefunding or revolving accounts, if
                applicable.

            	
              X

            	
              X

            	
              X

            	 	
              X

            	 
	
              Disclose
                any material changes in the solicitation, credit-granting, underwriting,
                origination, acquisition or pool selection criteria or procedures,
                as
                applicable, used to originate, acquire or select the new pool
                assets.

            	 	 	 	 	
              X

            	
              X

            
	
              Item
                1121(b) – Pre-Funding or Revolving Period Information

               

              Updated
                pool information as required under Item 1121(b).

            	 	 	 	 	
              X

            	 
	
              2

            	
              Legal
                Proceedings

            	 	 	 	 	 	 
	
              Item
                1117 – Legal proceedings pending against the following entities, or their
                respective property, that is material to Certificateholders, including
                proceedings known to be contemplated by governmental
                authorities:

            	 	 	 	 	 	 
	
              Sponsor
                (Seller)

            	 	 	 	 	 	
              X

            
	
              Depositor

            	 	 	 	 	
              X

            	 
	
              Trustee

            	 	 	
              X

               

            	 	 	 
	
              Issuing
                entity

            	 	 	 	 	
              X

            	 
	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	
              X

            	
              X

            	 	 	 	 
	
              Originator
                of 20% or more of pool assets as of the Cut-off Date

            	 	 	 	 	
              X

            	 
	
              Custodian

            	 	 	 	
              X

            	 	 
	
              3

            	
              Sales
                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.

            	 	 	 	 	
              X

            	 
	
              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)

            	 	 	
              X

            	 	 	 
	
              5

            	
              Submission
                of Matters to a Vote of Security Holders

            	 	 	 	 	 	 
	
              Information
                from Item 4 of Part II of Form 10-Q

            	 	 	
              X

            	 	 	 
	
              6

            	
              Significant
                Obligors of Pool Assets

            	 	 	 	 	 	 
	
              Item
                1112(b) –Significant Obligor Financial
                Information*

            	 	 	 	 	
              X

            	 
	
              *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.

            	 	 	 	 	 	 
	
              7

            	
              Significant
                Enhancement Provider Information

            	 	 	 	 	 	 
	
              Item
                1114(b)(2) – Credit Enhancement Provider Financial
                Information*

            	 	 	 	 	 	 
	
              Determining
                applicable disclosure threshold

            	 	 	
              X

            	 	
              X

            	 
	
              Obtain
                required financial information or effecting incorporation by
                reference

            	 	 	
              X

            	 	
              X

            	 
	
              Item
                1115(b) – Derivative Counterparty Financial
                Information*

            	 	 	 	 	 	 
	
              Determining
                      current maximum probable exposure

            	 	 	 	 	
              X

            	 
	
              Determining
                current significance percentage.  In this transaction there is
                no current significance percentage.

            	 	 	
              X

            	 	 	 
	
              Notify
                derivative counterparty of significance percentage and request required
                financial information.  In this transaction there is no current
                significance percentage.

            	 	 	
              X

            	 	 	 
	
              Obtain
                required financial information or effecting incorporation by
                reference

            	 	 	 	 	
              X

            	 
	
              *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.

            	 	 	 	 	 	 
	
              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

            	 	 	 	 	 	 	 
	
              9

            	
              Exhibits

            	 	 	 	 	 	 
	
              Distribution
                report

            	 	 	
              X

            	 	 	 
	
              Exhibits
                required by Item 601 of Regulation S-K, such as material
                agreements

            	 	 	 	 	
              X

            	 
	
              8-K

            	
              Must
                be filed within four business days of an event reportable on Form
                8-K.

            	 	 	 
	
              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

            	
              X

            	
              X

            	
              X

            	 	
              X

            	
              X

            
	
              1.02

            	
              Termination
                of a Material Definitive Agreement

            	
              X

            	
              X

            	
              X

            	 	
              X

            	
              X

            
	
              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.

            	 	 	 	 	 	 
	
              1.03

            	
              Bankruptcy
                or Receivership

            	 	 	 	 	 	 
	
              Disclosure
                is required regarding the bankruptcy or receivership, if known to
                the
                Master Servicer, with respect to any of the following:

               

              Sponsor
                (Seller), Depositor, Master Servicer, affiliated Servicer, other
                Servicer
                servicing 20% or more of pool assets at time of report, other material
                servicers, Certificate Administrator, Trustee, significant obligor,
                credit
                enhancer (10% or more), derivatives counterparty,
                Custodian

            	
              X

            	
              X

            	
              X

            	
              X

            	
              X

            	
              X

            
	
              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 Statement to Certificateholders

            	 	
              X

            	
              X

            	 	 	 
	
              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

            	 	 	
              X

            	 	
              X

            	 
	
              5.03

            	
              Amendments
                to Articles of Incorporation or Bylaws; Change in Fiscal
                Year

            	 	 	 	 	 	 
	
              Disclosure
                is required of any amendment “to the governing documents of the issuing
                entity”

            	 	 	 	 	
              X

            	 
	
              5.06

            	
              Change
                in Shell Company Status

            	 	 	 	 	 	 
	
              [Not
                applicable to ABS issuers]

            	 	 	 	 	
              X

            	 
	
              6.01

            	
              ABS
                Informational and Computational Material

            	 	 	 	 	 	 
	
              [Not
                included in reports to be filed under Section 3.18]

            	 	 	 	 	
              X

            	 
	
              6.02

            	
              Change
                of Servicer or Trustee

            	 	 	 	 	 	 
	
              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, certificate
                administrator or trustee.

            	
              X

            	
              X

            	
              X

            	 	
              X

               

            	 
	 	
              Reg
                AB disclosure about any new servicer is also required.

            	
              X

            	 	 	 	 	 
	
              Reg
                AB disclosure about any new trustee is also required.

            	 	 	
              X  (to
                the extent of a new trustee)

            	 	 	 
	
              6.03

            	
              Change
                in Credit Enhancement or Other External Support [In this transaction
                there
                is no external enhancement or other 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.

            	 	 	
              X

            	 	
              X

            	 
	 	
              Reg
                AB disclosure about any new enhancement provider is also
                required.

            	 	 	
              X

            	 	
              X

            	 
	
              6.04

            	
              Failure
                to Make a Required Distribution

            	 	 	
              X

            	 	 	 
	
              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.

            	 	 	 	 	
              X

            	 
	
              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.

            	 	 	 	 	
              X

            	 
	
              7.01

            	
              Regulation
                FD Disclosure

            	
              X

            	
              X

            	
              X

            	
              X

            	
              X

            	 
	
              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 security
                holders.

            	 	 	 	 	
              X

            	 
	
              9.01

            	
              Financial
                Statements and Exhibits

            	 	 	 	 	 	 	 
	
              10-K

            	
              Must
                be filed within 90 days of the fiscal year end for the
                registrant.

            	 	 	 	 
	
              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

            	 	 	 	 	 	 	 
	 	
              15

            	
              Exhibits
                and Financial Statement Schedules

            	 	 	 	 	 	 
	
              Item
                1112(b) –Significant Obligor Financial
                Information

            	 	 	 	 	
              X

            	 
	
              Item
                1114(b)(2) – Credit Enhancement Provider Financial
                Information

            	 	 	 	 	 	 
	
              Determining
                applicable disclosure threshold

            	 	 	
              X

            	 	
              X

            	 
	
              Obtain
                required financial information or effecting incorporation by
                reference

            	 	 	
              X

            	 	
              X

            	 
	
              Item
                1115(b) – Derivative Counterparty Financial
                Information

            	 	 	 	 	 	 
	
              Determining
                current maximum probable exposure

            	 	 	 	 	
              X

            	 
	 	 	
              Determining
                current significance percentage.  [In this transaction there is
                no current significance percentage.]

            	 	 	
              X

            	 	 	 
	
              Notify
                derivative counterparty of significance percentage and request required
                financial information.  [In this transaction there is no current
                significance percentage.]

            	 	 	
              X

            	 	 	 
	
              Obtain
                required financial information or effecting incorporation by
                reference

            	 	 	 	 	
              X

            	 
	
              Item
                1117 – Legal proceedings pending against the following entities, or their
                respective property, that is material to Certificateholders, including
                proceedings known to be contemplated by governmental
                authorities:

            	 	 	 	 	 	 
	
              Sponsor
                (Seller)

            	 	 	 	 	 	
              X

            
	
              Depositor

            	 	 	 	 	
              X

            	 
	
              Trustee

            	 	 	
              X

            	 	 	 
	
              Issuing
                entity

            	 	 	 	 	
              X

            	 
	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	
              X

            	
              X

            	 	 	 	 
	
              Originator
                of 20% or more of pool assets as of the Cut-off Date

            	 	 	 	 	
              X

            	 
	
              Custodian

            	 	 	 	
              X

            	 	 
	
              Item
                1119 – Affiliations and relationships between the following entities, or
                their respective affiliates, that are material to
                Certificateholders:

            	 	 	 	 	 	 
	
              Sponsor
                (Seller)

            	 	 	 	 	 	
              X

            
	
              Depositor

            	 	 	 	 	
              X

            	 
	
              Trustee

            	 	 	
              X

            	 	 	 
	
              Master
                Servicer, affiliated Servicer, other Servicer servicing 20% or more
                of
                pool assets at time of report, other material servicers

            	
              X

            	
              X

            	 	 	 	 
	
              Originator

            	 	 	 	 	
              X

            	 
	
              Custodian

            	 	 	 	
              X

            	 	 
	
              Credit
                Enhancer/Support Provider

            	 	 	 	 	
              X

            	 
	
              Significant
                Obligor

            	 	 	 	 	
              X

            	 
	
              Item
                1122 – Assessment of Compliance with Servicing
                Criteria

            	
              X

            	
              X

            	
              X

            	
              X

            	 	 
	
              Item
                1123 – Servicer Compliance Statement

            	
              X

            	
              X

            	 	 	 	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      N

     

    ADDITIONAL
      DISCLOSURE NOTIFICATION

    

    Structured
      Asset Mortgage Investment II Inc.

    383
      Madison Avenue

    New
      York,
      New York 10179

    Fax:
      (212) 272-2000

    E-Mail:
      regabnotification@bear.com

    

    U.S.
      Bank
      National Association as Trustee

     

    One
      Federal Street, 3rd Floor

    Boston,
      Massachusetts 02110

    Fax:
      (617) 603-663

    E-mail:  notifications@fsir.com

     

    Attn:   
      Corporate Trust Services – Prime Mortgage Trust 2007-3-

                
      SEC
      REPORT PROCESSING

     

    RE:  **Additional
      Form [  ] Disclosure**Required

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 3.18 of the Pooling and Servicing Agreement, dated
      as of
      August 1, 2007, among EMC Mortgage Corporation, as Seller and Master Servicer
      and U.S. Bank National Association as Trustee.  The undersigned 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:  [   ].

     

    
      	 	
              [NAME OF
                PARTY]

              as [role]

            	 
	 	 	 	 
	
               

            	
              By:
                

            	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      O

     

    Aggregate
      Planned Principal Schedules

    

    

    (Provided
      Upon Request)

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      P

    

    FORM
      OF
      TRUSTEE LIMITED POWER OF ATTORNEY

    

    

    KNOW
      ALL
      MEN BY THESE PRESENTS, that U.S. Bank National Association, a national banking
      association, having a place of business at One Federal Street, 3rd Floor,
      Boston, Massachusetts 02110, not individually, but solely as Trustee (and in
      no
      personal or other representative capacity) under the Pooling and Servicing
      Agreement, dated as of August 1, 2007, by and among Structured Asset Mortgage
      Investments II Inc., the Trustee and EMC Mortgage Corporation (as amended,
      restated, supplemented or otherwise modified from time to time, the “Agreement”;
      capitalized terms not defined herein have the definitions assigned to such
      terms
      in the Agreement), relating to the Prime Mortgage Trust, Certificates, Series
      2007-3, hereby appoints _______________, in its capacity as a Servicer under
      the
      Agreement, as the Trustee’s true and lawful Special Attorney-in-Fact, in the
      Trustee’s name, place and stead and for the Trustee’s benefit, but only in its
      capacity as Trustee aforesaid, to perform all acts and execute all documents
      as
      may be customary, necessary and appropriate to effectuate the following
      enumerated transactions in respect of any mortgage, deed of trust, promissory
      note or real estate owned from time to time owned (beneficially or in title,
      whether the Trustee is named therein as mortgagee or beneficiary or has become
      mortgagee or beneficiary by virtue of endorsement, assignment or other
      conveyance) or held by or registered to the Trustee (directly or through
      custodians or nominees), or in respect of which the Trustee has a security
      interest or other lien, all as provided under the applicable Agreement and
      only
      to the extent the respective Trustee has an interest therein under the
      Agreement, and in respect of which the Servicer is acting as servicer pursuant
      to the Agreement (the “Mortgage Documents”).

    

    This
      appointment shall apply to the following enumerated transactions under the
      Agreement only:

    

    The
      modification or re-recording of any Mortgage Document for the purpose of
      correcting it to conform to the original intent of the parties thereto or to
      correct title errors discovered after title insurance was issued and where
      such
      modification or re-recording does not adversely affect the lien under the
      Mortgage Document as insured.

    

    2.           The
      subordination of the lien under a Mortgage Document to an easement in favor
      of a
      public utility company or a state or federal agency or unit with powers of
      eminent domain including, without limitation, the execution of partial
      satisfactions/releases, partial reconveyances and the execution of requests
      to
      trustees to accomplish same.

    

    3.           The
      conveyance of the properties subject to a Mortgage Document to the applicable
      mortgage insurer, or the closing of the title to the property to be acquired
      as
      real estate so owned, or conveyance of title to real estate so
      owned.

    

    4.           The
      completion of loan assumption and modification agreements in respect of Mortgage
      Documents.

    

    5.           The
      full or partial satisfaction/release of a Mortgage Document or full conveyance
      upon payment and discharge of all sums secured thereby, including, without
      limitation, cancellation of the related note.

    

    6.           The
      assignment of any Mortgage Document, in connection with the repurchase of the
      mortgage loan secured and evidenced thereby.

    

    7.           The
      full assignment of a Mortgage Document upon payment and discharge of all sums
      secured thereby in conjunction with the refinancing thereof, including, without
      limitation, the assignment of the related note.

    

    8.           With
      respect to a Mortgage Document, the foreclosure, the taking of a deed in lieu
      of
      foreclosure, or the completion of judicial or non-judicial foreclosure or
      termination, cancellation or rescission of any such foreclosure, including,
      without limitation, any and all of the following acts:

    

    a.           the
      substitution of trustee(s) serving under a deed of trust, in accordance with
      state law and the deed of trust;

    

    b.           the
      preparation and issuance of statements of breach or
      non-performance;

    

    c.           the
      preparation and filing of notices of default and/or notices of
      sale;

    

    d.           the
      cancellation/rescission of notices of default and/or notices of
      sale;

    

    e.           the
      taking of a deed in lieu of foreclosure; and

    

    
      	
               

            	
              f.

            	
              the
                preparation and execution of such other documents and performance
                of such
                other actions as may be necessary under the terms of the Mortgage
                Document
                or state law to expeditiously complete said transactions in paragraphs
                8(a) through 8(e), above.

            

    

    

    9.           Demand,
      sue for, recover, collection and receive each and every sum of money, debt,
      account and interest (which now is, or hereafter shall become due and payable)
      belonging to or claimed by the Trustee under the Mortgage Documents, and to
      use
      or take any lawful means for recovery thereof by legal process or
      otherwise.

    

    10.           Endorse
      on behalf of the Trustee all checks, drafts and/or negotiable instruments made
      payable to the Trustee in respect of the Mortgage Documents.

    

    The
      Trustee gives the Special Attorney-in-Fact full power and authority to execute
      such instruments and to do and perform all and every act and thing necessary
      and
      proper to carry into effect the power or powers granted by this Limited Power
      of
      Attorney, subject to the terms and conditions set forth in the Agreement
      including the standard of care applicable to servicers in the Agreement, and
      hereby does ratify and confirm what such Special Attorney-in-Fact shall lawfully
      do or cause to be done by authority hereof.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
IN
      WITNESS WHEREOF, the Trustee has caused its corporate name to be hereto signed
      and affixed and these presents to be acknowledged by its duly elected and
      authorized officer this ___ day of ___ , 2007.

     

    
      	 	U.S.
              Bank National
              Association, not individually, but solely as Trustee	 
	 	 	 	 
	
               

            	
              By:
                

            	 	 
	 	
              Name:  
                

            	 	 
	 	
              Title:

            	 	 
	 	 	 	 

    

     

    
      	WITNESS:	 	 	WITNESS:	 
	 	 	 	 	 
	 	 	 	 	 
	
               

            	 	 	
               

            	 
	
              Name:

            	 	 	
              Name:

            	 
	
              Title:

            	 	 	
              Title:

            	 

    

    
                  

     

    
       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

       

    

     

    

    On
      ______________, 2007, before me, the
      undersigned, a Notary Public in and for said state, personally appeared
      __________________, personally known to me to be the person whose name is
      subscribed to the within instrument, and such person acknowledged to me that
      such person executed the within instrument in such person’s authorized capacity,
      and that by such signature on the within instrument the entity upon behalf
      of
      which such person acted executed the instrument.

    

    WITNESS
      my hand and official
      seal.

    

    

    
      	
               

            	
               

            

    

    
      	
               

            	
              Notary
                Public

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      Q

    

    FORM
      OF
      CERTIFICATION TO BE

     

    PROVIDED
      BY THE TRUSTEE TO DEPOSITOR

    

    Re:           Structured
      Asset Mortgage Investments II Inc. Prime Mortgage Trust (the “Trust”),
      Certificates Series 2007-3, issued pursuant to the Pooling and Servicing
      Agreement, dated as of August 1, 2007, among Structured Asset Mortgage
      Investments II Inc, as Depositor, EMC Mortgage Corporation, as Seller and Master
      Servicer and U.S. Bank National Association as Trustee.

    

    The
      Trustee hereby certifies to the Depositor, and its officers, directors and
      affiliates, and with the knowledge and intent that they will rely upon this
      certification, that:

    

    (1)           I
      have reviewed the annual report on Form 10-K for the fiscal year [____] (the
      “Annual Report”), and all reports on Form 10-D required to be filed in respect
      of period covered by the Annual Report (collectively with the Annual Report,
      the
“Reports”), of the Trust;

    

    (2)           To
      my knowledge, (a) the 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 the Annual
      Report, and (b) the Trustee’s assessment of compliance and related attestation
      report referred to below, 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 such assessment
      of
      compliance and attestation report;

    

    (3)           To
      my knowledge, the distribution information required to be provided by the
      Trustee under the Pooling and Servicing Agreement for inclusion in the Reports
      is included in the Reports;

    

    (4)           I
      am responsible for reviewing the activities performed by the  Trustee
      under the Pooling and Servicing Agreement, and based on my knowledge, and except
      as disclosed in the Reports, the Trustee has fulfilled its obligations under
      the
      Pooling and Servicing Agreement in all material respects; and

    

    (5)           The
      report on assessment of compliance with servicing criteria applicable to the
      Trustee for asset-backed securities of the Trustee and each Subcontractor
      utilized by the Trustee and related attestation report on assessment of
      compliance with servicing criteria applicable to it required to be included
      in
      the Annual Report in accordance with Item 1122 of Regulation AB and Exchange
      Act
      Rules 13a-18 and 15d-18 has been included as an exhibit to the Annual
      Report.  Any material instances of non-compliance are described in
      such report and have been disclosed in the Annual Report.

    

    In
      giving
      the certifications above, the Trustee has reasonably relied on information
      provided to it by the following unaffiliated parties:  [names of
      servicer(s), master servicer, subservicer, depositor, trustee,
      custodian(s)]

    

    Date:________________________________

     

    ____________________________________

    [Signature]

    [Title]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      R

     

    FORM
      OF
      THE MASTER SERVICER'S DATA LAYOUT REPORT

     

    Prime
      Mortgage Trust, Mortgage Pass-Through Certificates, Series 2007-3

     

    

    
      	
              US
                BANK FIELDS

            	 	
              SBO
                FIELDS

            	 	
              SBO
                DESCRIPTION

            
	
              LOAN

            	 	
              LOAN_NUMBER

            	 	
              Loan
                number

            
	
              STOP_ADV_FLAG

            	 	
              ACTUAL_ACTUAL_OVERRIDE

            	 	
              Pertains
                to resold scheduled/actual and scheduled/scheduled  pools. A
                code indicating if the specific loan should be remitted on an
                actual/actual basis.

            
	
              RATE

            	 	
              LOAN_NOTE_RATE

            	 	
              Interest
                rate associated with the next payment due on the loan when the investor
                cutoff

            
	
              SF_RATE

            	 	
              LOAN_FEE_AMT

            	 	
              Fixed
                monthly fee due the strip holder.

            
	
              LPMI_RATE

            	 	
              MIRF_AMT

            	 	
              LPMI
                refund from MI companies (i.e. Radian, MGIC) for LPMI cancellations,
                recisions, rate errors, payments made on loans without at
                payoff

            
	
              BEG_SCHED

            	 	
              BEGINNING_SCHEDULED_BALANCE

            	 	
              The
                amortized balance on which interest is expected as of the beginning
                of the
                month.

            
	
              END_SCHED

            	 	
              ENDING_SCHEDULED_BALANCE

            	 	
              Ending
                scheduled balance. The balance on which interest should be earned
                next
                month.

            
	
              END_ACT

            	 	
              PARTICIPANT_BALANCE

            	 	
              Ending
                actual participant balance of the pool as of the cutoff
                date

            
	
              P&I

            	 	
              LOAN_PAYMENT_AMOUNT

            	 	
              Loan's
                payment constant at the time of record creation.

            
	
              GROSS_INT

            	 	
              SCHEDULED_INTEREST_AMOUNT

            	 	
              Scheduled
                gross interest for the remittance cycle

            
	
              SCHED_P

            	 	
              SCHEDULED_PRINCIPAL_AMOUNT

            	 	
              Scheduled
                principal for the remittance cycle

            
	
              CURTAIL

            	 	
              CURTAILMENT_AMOUNT

            	 	
              Calculated
                curtailment amount for the specified period of time.

            
	
              PREPAY

            	 	
              LIQUIDATION_PRINCIPAL

            	 	
              Amount
                of principal reported as payoff principal.

            
	
              PREPAY_DATE

            	 	
              LIQUIDATION_DATE

            	 	
              Liquidation
                date

            
	
              PREPAY_CODE
                PIF

            	 	
              LIQUIDATION_TYPE

            	 	
              A
                code indicating the reason for the liquidation.

            
	
              NEXT_DUE

            	 	
              LOAN_DUE_DATE

            	 	
              Loan's
                due date when the investor cutoff

            
	
              STATUS

            	 	
              LOAN_STATUS

            	 	
              The
                status of the loan as of the cutoff date.

            
	
              BKCY_DATE

            	 	
              BANKRUPTCY_STATUS

            	 	
              Code
                which corresponds to the loan's bankruptcy status. See codes table
                for
                valid codes and their corresponding meaning.

            
	
              FCLS_DATE

            	 	
              FORECLOSURE_STATUS

            	 	
              Code
                which corresponds to the loan's foreclosure status. See codes table
                for
                valid codes and their corresponding meaning.

            
	
              REO_DATE

            	 	
              REO_STATUS

            	 	
              A
                code indicating if the loan was an REO when the investor
                cutoff.

              Y
                =
                yes

              N
                =
                no.

            
	
              DELINQ

            	 	
              MONTHS_DELINQUENT_24

            	 	
              0,1,30,60,90,120
                ( 1 = 1-29, 30 = 30-59, etc...)

            
	
              PPIS

            	 	
              Interest
                Shortfall

            	 	
              Interest
                shortfall adjustment

            
	
              RAIS

            	 	
              SSRA_AMT

            	 	
              Interest
                adjustments for Soldiers & Sailors Relief Act Loans

            
	
              PPP_Collected

            	 	
              ANCILLARY_FEE_AMOUNT

            	 	
              Amount
                of the fee (100%) paid by the borrower.

            
	
              REMIT

            	 	
              Total_Remittance_Amt

            	 	
              total
                remit for the loan

            
	
              ADV_P&I_CUR

            	 	
              Svc
                Prin Adv

            	 	
              Principal
                advance by servicer

            
	
              ADV_P&I_CUR

            	 	
              Svc
                Int Adv

            	 	
              Interest
                advance by servicer

            
	
              LIQUIDATION_FLAG

            	 	
              LIQUIDATION_FLAG

            	 	
              Loan
                status

            

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      S

    

    FORM
      OF
      TRANSFEROR AFFIDAVIT

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 

    

     

    The
      undersigned is the [Title of Officer] of [Name of Transferor] (the “Owner”), the
      proposed transferor of an Ownership Interest in the Prime Mortgage Trust, Mortgage
      Pass-Through Certificates, Series 2007-3, Class [_]-R-[_] Certificate
      (the “Certificate”) issued pursuant to the Pooling and Servicing Agreement,
      dated as of August 1, 2007 (the “Agreement”), among Structured Asset Mortgage
      Investments II Inc. as depositor (the “Depositor”), EMC Mortgage Corporation as
      seller and master servicer, and U.S. Bank National Association as trustee (the
      “Trustee”), and makes this affidavit on behalf of the Owner for the
      benefit of the Depositor and the Trustee.  Capitalized terms used, but
      not defined herein, shall have the meanings ascribed to such terms in the
      Agreement.

     

    1.           The
      Owner is not transferring the Certificate to impede the assessment or collection
      of any tax.

     

    2.           The
      Owner has no actual knowledge that the proposed transferee of the Certificate:
      (i) has insufficient assets to pay any taxes that would be owed by such
      transferee as Holder of the Certificate; (ii) may become insolvent or subject
      to
      a bankruptcy proceeding for so long as the Certificate remains outstanding;
      and
      (iii) is not a Permitted Transferee.

     

    3.           The
      Owner understands that the proposed transferee has delivered to the Trustee
      and
      the Depositor a transfer affidavit and agreement in the form attached to the
      Agreement as Exhibit C.  The Owner does not know or believe that any
      representation contained therein is false.

     

    4.           At
      the time of transfer, the Owner has conducted a reasonable investigation of
      the
      financial condition of the proposed transferee as contemplated by Treasury
      Regulation Section 1.860E-1(c)(4)(i) and, as a result of that investigation,
      the
      Owner has determined that the proposed transferee has historically paid its
      debts as they became due and has found no significant evidence to indicate
      that
      the proposed transferee will not continue to pay its debts as they become due
      in
      the future. The Owner understands that the transfer of the Certificate may
      not
      be respected for U.S. federal income tax purposes (and the Owner may continue
      to
      be liable for U.S. federal income taxes associated therewith) unless the Owner
      has conducted such an investigation.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    IN
      WITNESS WHEREOF, the Investor has caused this instrument to be executed on
      its
      behalf, pursuant to authority of its Board of Directors, by its [Title of
      Officer] this ____ day of _________, 20__.

     

    
      	 	 	 	 	 	 	
              [NAME
                OF OWNER]

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	
              Name:

            	
              [Name
                of Officer]

            
	 	 	 	 	 	 	
              Title:

            	
              [Title
                of Officer]

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

    

    

     

    Personally
      appeared before me the above-named [Name of Officer], known or proved to me
      to
      be the same person who executed the foregoing instrument and to be the [Title
      of
      Officer] of the Owner, and acknowledged to me that he/she executed the same
      as
      his/her free act and deed and the free act and deed of the Owner.

     

    Subscribed
      and sworn before me this ___ day of _________, 20___.

     

    NOTARY
      PUBLIC

     

    COUNTY
      OF

     

    STATE
      OF

     

    My
      commission expires the ___ day of ___________________, 20___.sssexhibit.htm

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    

    

    

    

    

    _______________________________________

    

    

    TERM
      LOAN AGREEMENT

    

    

    -
      Between -

    

    

    SOVRAN
      SELF STORAGE, INC. and SOVRAN ACQUISITION LIMITED

    PARTNERSHIP

    

    

    -And-

    

    

    MANUFACTURERS
      AND TRADERS TRUST COMPANY

    

    

    

    Dated
      As Of September 12,2007

    

    

    _______________________________________

    

    
      
              

                       
    

        
        

      

      
        
        

        
        

      

      
        
        

      

    

              TERM
      LOAN AGREEMENT ("Agreement") made as of September 12,2007 by and
      between SOVRAN SELF STORAGE, INC., a Maryland corporation ("Sovran") and SOVRAN
      ACQUISITION LIMITED PARTNERSHIP, a Delaware limited partnership ("SALP", and
      together with Sovran, collectively referred to herein as the "Borrowers" and
      individually as a "Borrower"), each with a principal place of business at 6467
      Main Street, Buffalo, New York 14221 and MANUFACTURERS AND TRADERS TRUST
      COMPANY, a New York State banking corporation, with a principal banking
      office at One M&T Plaza, Buffalo, New York 14203 (the "Bank").

    

    

    WITNESSETH

    

    ARTICLE
      1.  Definitions

    

              1.01     Defnitions.  As
      used in this Agreement, unless otherwise specified, the following terms shall
      have the following respective meanings:

    

              ''Affiliate''
      With reference to any Person, (i) any director or executive officer of that
      Person, (ii) any other Person controlling, controlled by or under direct or
      indirect common , control of that Person, (iii) any other Person directly or
      indirectly holding 10% or more of any class of the capital stock or other equity
      interests (including options, warrants, convertible securities and similar
      rights) of that Person and (iv) any other Person 10% or more of any class of
      whose capital stock or other equity interests (including options, warrants,
      convertible securities and similar rights) is held directly or indirectly by
      that Person.

    

              "Agreement"
      As defined in the preamble hereto, and sometimes referred to herein as "Term
      Loan Agreement".

    

              "Bank"
      As defined in the preamble hereto.

    

              "Borrower"
      or "Borrowers" As defined in the preamble hereto.

    

              "Borrower
      Representative" Sovran, acting on behalf of both of the
      Borrowers.  The Bank shall be entitled to rely, and the Borrowers
      hereby agree, that the Bank may so rely on any notice given or received or
      action taken or not taken by Sovran as being authorized by each of the
      Borrowers.

    

              "Borrowing
      Dates" A Business Day on which the Bank advances a Term Loan to
      the

    Borrowers
      in accordance with Section 2.01.

    "Breakage
      Pee" A fee equal to any loss, cost, expense, including lost profits,
      suffered

    or
      incurred by the Bank as the result of the payment of a LIBOR Rate Loan before
      the end of the

    applicable
      LIBOR Period. The Bank shall provide the Borrowers with a statement setting
      forth

    the
      determination of the Breakage Fee, which determination shall be binding on
      the
      Borrowers if

    computed
      in good faith and without computational error.

    "Business
      Day" (a) Any day excluding Saturday, Sunday and any day on which
      banks

    in
      Buffalo, New York are required or authorized by law or other governmental action
      to close,

    
      
        
        

      

      
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    and
      (b) with respect to LIBOR Rate Loans, any day which is also a Business Day
      described in clause (a) hereof and which is also a day for trading by and
      between banks in U.S. Dollar deposits in the London Interbank Eurodollar
      market.

    

              "Code"
      The Internal Revenue Code of 1986, as amended and in effect from time to
      time.

    

              "Consolidated
      or consolidated" With reference to any term defined herein. shall mean
      that term applied to the accounts of Sovran and its subsidiaries (including
      the
      Guarantors) or SALP and its subsidiaries, as the case may be, consolidated
      in
      accordance with GAAP.

    

              "Credit
      Agreement" The Second Amended and Restated Revolving Credit and Term
      Loan Agreement among Sovran Self Storage, Inc. and Sovran Acquisition Limited
      Partnership and Fleet National Bank and Other Lenders which are or may become
      parties to the Credit Agreement and Fleet National Bank as Administrative Agent
      with Bank of America Securities, LLC as Sole Lead Arranger and Book Runner
      and
      Manufacturers and Traders Trust Company as Syndication Agent and Suntrust Bank
      and PNC Bank, National Association as Co- Documentation Agents dated as of
      December 16,2004, including the Schedules and Exhibits thereto, as
      the same may be from time to time modified, amended or restated and in
      effect.

    

              "Default"
      As of the relevant time of determination, an event or occurrence
      which:

    

    
      	 	
                        (i)     requires
                notice and time to cure to become an Event of Default and as to which
                notice has been given to the Borrowers by the Bank, or

               

                        (ii)     has
                occurred and will become an Event of Default (without notice) if
                such
                event remains uncured after any grace period specified in Section
                9.01 or,
                in the case of matters referred to in Section 9.0l(i), in the other
                applicable Loan Document(s).

            
	 

    

    

              "Disqualifying
      Building Event" Any structural or repair and maintenance matter (other
      than a Release) as to any Building or any Real Estate that in the Bank's
      reasonable opinion will require the expenditure of $250,000 or more to remedy
      or
      complete such matter and the remediation or completion of which is required
      by
      prudent real estate ownership or operation.

    

              "Disqualifying
      Environmental Event" Any Release or threatened Release of Hazardous
      Substances, any violation of Environmental Laws or any other similar
      environmental event with respect to a Real Estate that causes (y) the occupancy
      or rent of such Real Estate to be adversely affected, as compared to what
      otherwise would have been the occupancy or rent of such Real Estate in the
      absence of such environmental event or (z) such Real Estate to no longer be
      financeable on a secured, long term debt basis under the then generally accepted
      underwriting standards of national institutional lenders.

    

              "Disqualifying
      Legal Event" Any violation or non-compliance with any applicable law,
      statute, rule or regulation (other than an Environmental Law) with respect
      to
      any Real Estate, which requires cure or compliance for prudent real estate
      ownership or oepration.

    
      
        
        

      

      
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              "Employee
      Benefit Plan" Any employee benefit plan within the meaning of §3(3) of
      ERISA maintained or contributed to by any Borrower or any ERISA Affiliate,
      other
      than a Multiemployer Plan.

    

              "ERISA"
      The Employee Retirement Income Security Act of 1974, as amended and in effect
      from time to time.

    

              "ERISA
      Affiliate" Any Person which is treated as a single employer with any
      Borrower under §414 of the Code.

    

              "ERISA
      Reportable Event" A reportable event with respect to a Guaranteed
      Pension Plan within the meaning of §4043 of ERISA and the regulations
      promulgated thereunder as to which the requirement of notice has not been
      waived.

    

              "Event
      of Default" See Section 9.01

    

              "Facility
      Fee" See Section 2.07.

    

              "GAAP"
      As of the date of any determination, generally accepted accounting principles
      as
      promulgated by the Financial Accounting Standards Board and/or the American
      Institute of certified Public Accountants, consistently applied and maintained
      throughout the relevant periods and from period to period.

    

              "Guaranties"
      Collectively, the Holdings Guaranty and any other guaranty of the Obligations
      made by an Affiliate of the Borrowers in favor of the Bank.

    

              "Guarantors"
      Collectively, Holdings and any other Affiliate of a Borrower executing a
      Guaranty, provided, however, when the context so requires, Guarantor shall
      refer
      to Holdings or such Affiliate, as appropriate.

    

              "Guaranteed
      Pension Plan" Any employee pension benefit plan within the meaning of
      Section 3(2) of ERISA maintained or contributed to by any Borrower or any
      Guarantor, as the case may be, or any ERISA Affiliate of any of them the
      benefits of which are guaranteed on termination in full or in part by the PBGC
      pursuant to Title IV of ERICA, other than a Multiemployer Plan.

    

              "Hazardous
      Substance" Without limitation, any flammable explosives, radon,
      radioactive materials, asbestos, urea formaldehyde foam insulation,
      polychlorinated biphenyls, petroleum and petroleum based products, methane,
      hazardous materials, hazardous wastes, hazardous or toxic substances or related
      materials as defined in the Comprehensive Environmental Response, Compensation
      and Liability Act of 1980, as amended, (42 U.S.C. Section 9601,
etseq.), the Hazardous Materials Transportation Act, as amended
      (49 U.S.C. Sections 1801, etseq.), the Resource Conservation and
      Recovery Act, as amended (42 U.S.C. Sections 6901, etseq.), the
      Toxic Substances Control Act, as amended, (15 U.S.C. Sections

    
      
        
        

      

      
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    2601,
      etseq.), Articles 15 and 27 of the New York State Environmental
      Conservation Law or any other applicable Environmental Law and in the
      regulations promulgated thereunder.

    

              "Holdings"
      Sovran Holdings Inc., a Delaware corporation and wholly-owned Subsidiary of
      Sovran.

    

              "Holdings
      Guaranty" The Guaranty dated as of the date hereof made by Holdings in
      favor of the Bank pursuant to which Holdings guarantees to the Bank the
      unconditional payment and performance of the Obligations.

    

              "Indebtedness"
      With respect to any Person, all obligations, contingent and otherwise, that
      in
      accordance with GAAP should be classified upon such Person's balance sheet
      as
      liabilities, including, without limitation: (a) all obligations for borrowed
      money and similar monetary obligations, whether direct or indirect; (b) all
      liabilities secured by any mortgage, pledge, negative pledge, security interest,
      lien, charge, or other encumbrance existing on property owned or acquired
      subject thereto, whether or not the liability secured thereby shall have been
      assumed; (c) all obligations (i) under any Capitalized Lease or (ii) under
      any
      Synthetic Lease or (iii) which are "off balance sheet" transactions having
      the
      same practical effect as to such Person's financial position as a transaction
      that would be a liability of such Person on the balance sheet; (d) all
      obligations to purchase, redeem, retire, or otherwise acquire for value any
      shares of capital stock of any class issued by such Person or any rights to
      acquire such shares; (e) all obligations under any forward contract, futures
      contract, swap, option or other financing arrangement, the value of which is
      dependent upon interest rates, currency exchange rates, commodities, any
      Borrower's or Guarantor's present or future beneficial interest, shares or
      security trading value, or other indices; (f) the amount of payments
      received by such person in any forward equity transaction by which such payments
      are received by such Person in consideration for the sale of stock or
      partnership units in such Person when the delivery and/or the determination
      of
      the amount of the stock or units so sold occurs later than one (1) month after
      such Person receives such payment, but only to the extent that the obligation
      to
      deliver such stock or units is not payable solely in the stock or units of
      such
      Person; (g) all guarantees for borrowed money, endorsements and other contingent
      obligations, whether direct or indirect, in respect of indebtedness or
      obligations of others, including any obligation to supply funds (including
      partnership obligations and capital requirements) to or in any manner to invest
      in, directly or indirectly, the debtor, to purchase indebtedness, or to assure
      the owner of indebtedness against loss, through an agreement to purchase goods,
      supplies, or services for the purpose of enabling the debtor to make payment
      of
      the indebtedness held by such owner or otherwise, and the reimbursement
      obligations in respect of any letters of credit, bankers' acceptances or similar
      facilities issued for the account of such Person; (h) all obligations evidenced
      by bonds, debentures, notes or other similar instruments, including obligations
      incurred in connection with the acquisition of property, assets or businesses;
      (i) all obligations issued or assumed as the deferred purchase price of property
      or services (including securities repurchase agreements but excluding trade
      accounts payable or accrued liabilities arising in the ordinary course of
      business which are not overdue or which are being contested in good faith);
      (j)
      all sales of (i) accounts or general intangibles for money due or to become
      due,
      (ii) chattel paper, instruments or documents creating or evidencing a right
      to
      payment of money or (iii) other receivables (collectively "receivables"),
      whether pursuant to a purchase facility or otherwise, other than in connection
      with the disposition of the business

    
      
        
        

      

      
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    operations
      relating thereto or a disposition of defaulted receivables for collection and
      not as a financing arrangement, and together with any obligation to pay any
      discount, interest, fees, indemnities, penalties, recourse, expenses or other
      amounts in connection therewith; and (k) all obligations in respect of
      Indebtedness of any other entity (including any partnership in which such Person
      is a general partner) to the extent that such Person is liable therefor as
      a
      result of such Person's ownership interest in or other relationship with such
      entity, except to the extent that the terms of such Indebtedness provide that
      such Person is not liable therefore and such terms are enforceable under
      applicable law.

    

              "LIBOR
      Increment" One hundred and twenty (120) basis points.

    

              "LIBOR
      Rate Period" A thirty (30) day interest period during which the LIBOR
      Rate is in effect; provided, however, in no event shall a LIBOR Rate Period
      extend beyond the Maturity Date.

    

              "LIBOR
      Rate" The rate per mum (rounded upward, if necessary, to the nearest
      1/16th of 1%)
      obtained by dividing (i) the one-month interest period London Interbank Offered
      Rate as fixed by the British Bankers Association for United States dollar
      deposits in the London Interbank Eurodollar Market at approximately 11:00 a.m.
      London, England time (or as soon thereafter as practicable) as determined by
      the
      Bank from any broker, quoting service or commonly available source utilized
      by
      the Bank by (ii) a percentage equal to 100% minus the stated maximum rate of
      all
      reserves required to be maintained against "Eurocurrency Liabilities" as
      specified in Regulation D (or against any other category of liabilities which
      includes deposits by reference to which the interest rate on LIBOR Rate Loans
      is
      determined or any category of extensions of credit or other assets which
      includes loans by a non-United States' office of a bank to United States'
      residents) on such date to any member bank of the Federal Reserve
      System.  Notwithstanding any provision above, the of rounding to
      determine LIBOR may be discontinued at any time in the Bank's sole
      discretion.

    

              "LIBOR
      Rate Loan" Each Term Loan bearing interest which is calculated by
      reference to the LIBOR Rate plus the LIBOR Increment.

    

              "Loan
      Documents" Collectively, this Term Loan Agreement, the Term Loan Note,
      the Guaranties and any and all other agreements, instruments or documents now
      or
      hereafter evidencing or otherwise relating to the Term Loans and delivered
      to
      the Bank by or on behalf of the Borrowers or any Guarantor, as the same may
      from
      time to time be modified or amended and in effect.

    

              "Maturity
      Date" March 31, 2008.

    

              "Multiemployer
      Plan" Any multiemployer plan within the meaning of §3(37) of ERISA
      maintained or contributed to by any Borrower or any Guarantor as the case may
      be
      or any ERISA Affiliate.

    

              "Obligations"
      All indebtedness, obligations and liabilities of the Borrowers and the
      Guarantors to the Bank under this Term Loan Agreement or any of the other Loan
      Documents or

    
      
        
        

      

      
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    in
      respect of any of the Term Loans made, the Term Loan Note, or other instruments
      at any time evidencing any thereof, whether existing on the date of this Term
      Loan Agreement or arising or incurred hereafter, direct or indirect, joint
      or
      several, absolute or contingent, matured or unmatured, liquidated or
      unliquidated, secured or unsecured, arising by contract, operation of law or
      otherwise.

    

              "Partially
      Owned Entity(ies)" Any of the partnerships, joint ventures and other
      entities owning real estate assets in which SALP and/or Sovran collectively,
      directly or indirectly through its full or partial ownership of another entity,
      own less than 100% of the equity interests, whether or not such entity is
      required in accordance with GAAP to be consolidated with Sovran for financial
      reporting purposes.

    

              "Pension
      Plan" Any pension plan as defined in Section 3(2) of the Employee
      Retirement Income Security Act of 1974 as amended (ERISA) which is a
      multiemployer plan or single employer plan as defined in Section 4001 of ERISA
      and subject to Title IV of ERISA and which is (i) a plan maintained by the
      Borrower or any Subsidiary for employees or former employees of the Borrower
      or
      of any Subsidiary, (ii) a plan to which the Borrower or any Subsidiary
      contributes or is required to contribute, (iii) a plan to which the Borrower
      or
      any Subsidiary was required to make contributions at any time during the five
      (5) calendar years preceding the date of this Agreement, or (iv) any other
      plan
      with respect to which the Borrower or any Subsidiary has incurred or may incur
      liability, including contingent liability, under Title IV of ERISA, to such
      plan
      or to the Pension Benefit Guaranty Corporation.  For purposes of this
      definition and for purposes of Sections 5.16 and 6.19, "Borrower" shall include
      any trade or business (whether or not incorporated) which " together with the
      Borrower or a Subsidiary, is deemed to be a "single employer" within the meaning
      of Section 4001(b)(l) of ERISA.  Each such Pension Plan in existence
      as of the date of this Agreement is listed and identified on Schedule 1 annexed
      hereto.

    

              "PBGC"
      The Pension Benefit Guaranty Corporation created by Section 4002 of ERISA and
      any successor entity or entities having similar responsibilities.

    

              "Permitted
      Liens" Liens, security interests and other encumbrances permitted by
      the terms of the Credit Agreement.

    

              "Prime
      Rate" The rate of interest publicly announced by the Bank from time to
      time as its prime rate and is a base rate for calculating interest on certain
      loans.  The Bank's Prime Rate may or may not be the most favorable
      rate charged by the Bank to its customers.

    

              "Prime
      Rate Loan" Any Loan bearing interest which is calculated by reference
      to the Bank's Prime Rate.

    

              "Principal
      Office" One M&T Plaza, Buffalo, New York 14240.

    

              "Real
      Estate" The fixed and tangible properties consisting of land, buildings
      and/or other improvements to be acquired in fee simple by any Borrower, by
      any
      Subsidiary or by any other

    
      
        
        

      

      
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    entity
      in which a Borrower is the holder of an equity interest at the relevant time
      of
      reference thereto.

    

              "REIT"
      A "real estate investment trust", as such term is defined in Section 856 of
      the
      Code.

    

              "Release"
      The same meaning as given to that term in the Comprehensive Environmental
      Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section
      9601, etseq.), and the regulations promulgated
      thereunder.

    

              "Reportable
      Event" Any event with regard to a Pension Plan described in Section
      4043(b) of ERISA, or in regulations issued thereunder.

    

              "SALP"
      As defined in the preamble hereto.

    

              "SEC"
      The United States Securities and Exchange Commission.

    

              "Sovran"
      As defined in the preamble hereto.

    

              "Subsidiary"
      Any entity required to be consolidated with its direct or indirect parent in
      accordance with GAAP.

    

              "Subsidiary"
      Any corporation, association, partnership, trust, or other business entity
      of
      which the designated parent shall at any time own directly or indirectly through
      a Subsidiary or Subsidiaries at least a majority (by number of votes or
      controlling interests) of the outstanding voting interests or at least a
      majority of the economic interests.

    

              "Subsidiary
      Guarantor" Any Guarantor other than Holdings.

    

              "Subsidiary
      Guaranty" The form of Guaranty to be entered into by any Subsidiary
      Guarantor.

    

              "Term
      Loan Commitment" As defined in Section 2.01.

    

              "Term
      Loan(s)" As defined in Section 2.01.

    

              "Term
      Loan Note" As defined in Section 2.02

    

              "Unencumbered
      Property" Any Real Estate located in the contiguous United States that
      on any date of determination:  (a) is not subject to any Liens
      (including any such Lien imposed by the organizational documents of the owner
      of
      such asset, but excluding Permitted Liens), as certified by an officer of the
      Borrower Representative asof the date of this Agreement or such later date
      on
      which such Real Estate becomes an Unencumbered Property, (b) is not the subject
      of any matter that materially adversely affects the value of such Real Estate,
      (c) is not the subject of a Disqualifying Environmental Event, a Disqualifying
      Building Event or a Disqualifying Legal Event, in each case as certified by
      an
      officer of the Borrower Representative on the

    
      
        
        

      

      
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    Preliminary
      Restatement Date or such later date on which such Real Estate becomes an
      Unencumbered Property, (d) has been improved with a Building or Buildings which
      (1) have been issued a certificate of occupancy (where available) or is
      otherwise lawfully occupied for its intended use, (2) are fully operational,
      and
      (3) subsequent to the date that is twenty-four (24) months after the acquisition
      date of such Real Estate, have an average rent-paying occupancy rate (by net
      rentable square feet) of at least 75% for the two most recently ended
      consecutive fiscal quarters, (e) is wholly owned by a Borrower or a Guarantor
      that is a wholly-owned Subsidiary and (f) has not been designated by the
      Borrowers in writing to the Bank as Real Estate that is not an Unencumbered
      Property because of a Disqualifying Environmental Event, a Disqualifying
      Building Event or a Disqualifying Legal Event or the Borrower's intention to
      subject such Unencumbered Property to an indebtedness lien or to sell such
      Unencumbered Property as permitted under the Credit Agreement.

    

              "USA
      Patriot Act" The Uniting and Strengthening America by Providing
      Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT
      Act)
      Act of 2001, as amended from time to time.

    

              1.02     Accounting
      Terms.  All accounting terms not otherwise defined herein have the
      meanings assigned to them in accordance with GAAP consistent with those applied
      in the preparation of the audited consolidated financial statements of the
      Company and its Subsidiaries referred to in this Agreement.

    

    ARTICLE
      2. Amount and Terms of the Term Loan

    

              2.01     Term
      Loan.  Subject to the terms and conditions of this Agreement, and
      relying upon the representations and warranties herein set forth, the Bank
      agrees to make loans (individually, a "Term Loan" and collectively, the "Term
      Loans") to the Borrower on the date of this Agreement and on not more than
      three
      (3) additional Borrowing Dates occurring prior to March 1,2008, up to the
      aggregate principal amount of Twenty-Five Million Dollars ($25,000,000) (the
      "Term Loan Commitment").  Each advance of a Term Loan on a Borrowing
      Date shall be in an amount of not less than Five Million Dollars
      ($5,000,000.00).

    

              2.02     Term
      Loan Note.  The Term Loans shall be evidenced by, and repaid with
      interest in accordance with, a single promissory note (the "Term Loan Note")
      of
      the Borrower in substantially the form of Exhibit A, duly completed and with
      blanks appropriately filled in.  The Term Loan Note shall be dated as
      of the date of this Agreement and the aggregate principal amount of the Term
      Loans evidenced by the Term Loan Note shall be due and payable on the Maturity
      Date.

    

              2.03     Interest.

    

                             (a)     Each
      of the Term Loans shall be advanced to the Borrowers in the form of a LIBOR
      Rate
      Loan, and the Borrowers agree to pay interest to the Bank on the outstanding
      unpaid principal amount of each of the Term Loans commencing on the Borrowing
      Date of each Term Loan continuing to and including the Maturity Date at a rate
      equal to (i) the LIBOR Rate

    
      
        
        

      

      
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    as
      determined by Bank, from time to time, for consecutive LIBOR Periods of thirty
      (30) days, plus (ii) the LIBOR Increment.

    

                             (b)     All
      computations of interest shall be made on the basis of a year of 360 days for
      the actual number of days elapsed. Accrued interest shall be due and payable
      in
      immediately available funds on the first day of each month and on the Maturity
      Date at the Principal Office.  Upon the occurrence of an Event of
      Default or after the Maturity Date, the aggregate unpaid principal of all Term
      Loans shall, at the option of Bank, bear interest as a Prime Rate Loan and
      at a
      rate which is five (5) percentage points per annum greater than that rate which
      would otherwise be applicable.

    

              2.04     Prepayment.  Borrower
      may prepay a LIBOR Rate Loan only upon at least three (3) Business Days prior
      written notice to Bank (which notice shall be irrevocable), and any such
      prepayment shall occur only on the last day of the LIBOR Rate Period for such
      LIBOR Rate Loan. Borrower shall pay to Bank a Breakage Fee as a result of:
      (i)
      any payment of a LIBOR Rate Loan on a date other than the last day of the LIBOR
      Rate Period then in effect; (ii) any failure by Borrower to borrow a LIBOR
      Rate
      Loan on the date specified by Borrower's written notice; (iii) any failure
      by
      Borrower to pay a LIBOR Rate Loan on the date for payment specified in
      Borrower's written notice.  If by reason of an Event of Default, Bank
      elects to declare the Term Loan Note to be immediately due and payable, then
      any
      Breakage Fee with respect to a LIBOR Rate Loan shall become due and payable
      in
      the same manner as though Borrower had exercised such right of
      prepayment.

    

              2.05     Required
      Termination of LIBOR Rate Loans.  In the event Bank shall have
      reasonably determined, at any time (which determination shall be final,
      conclusive and binding), that the making or continuation of the LIBOR Rate
      Loans
      by Bank:

    

                             (a)     adequate
      and reasonable means do not exist for ascertaining the LIBOR Rate for the
      applicable LIBOR Rate Period, or

    

                             (b)     has
      become unlawful by compliance by Bank in good faith with any applicable law,
      governmental rule, regulation, guideline or order, or

    

                             (c)     would
      cause Bank severe hardship as a result of a contingency occurring after the
      date
      of this Agreement which materially and adversely affects the London interbank
      market (such as, but not limited to, disruptions resulting from political or
      economic events);

    

                             then.
      and in either such event, Bank shall on such date (and in any event as soon
      as
      possible after making such determination) give telephonic notice to the
      Borrower, confirmed in writing, of such determination, whereupon at the end
      of
      the then current LIBOR Rate Period, the outstanding principal balance of the
      Term Loans shall convert to a Prime Rate Loan.

    

              2.06     Taxes.  If
      any taxes (other than taxes with respect to the income of Bank), or duties
      of
      any kind shall be payable, or ruled to be payable, by or to any taxing authority
      of or in the United States, or any foreign country, or any political subdivision
      of any thereof, in respect of any of the transactions contemplated by this
      Agreement (including, but not limited to, execution,

    
      
        
        

      

      
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    delivery,
      performance, enforcement, or payment of principal or interest of or under the
      Term Loan Note or this Agreement, or the making of a LIBOR Rate Loan), by reason
      of any now existing or hereafter enacted statute, rule, regulation or other
      determination (excluding any taxes imposed on or measured by the net income
      of
      Bank), the Borrowers will:

    

                             (a)     pay
      on written request therefor all such taxes or duties, including interest and
      penalty, if any,

    

                             (b)     promptly
      furnish Bank with evidence of any such payment, and

    

                             (c)     indemnify
      and hold Bank and any holder or holders of the Term Loan Note harmless and
      indemnified against any liability or liabilities with respect to or in
      connection with any such taxes or the payment thereof or resulting from any
      delay or omission to pay such taxes.

    

              2.07     Facility
      Fee.  Prior to the initial advance of a Term Loan, the Borrowers
      shall pay to Bank a non-refundable Facility Fee in the amount of Sixty-Two
      Thousand Five Hundred Dollars ($62,500.00).

    

    ARTICLE
      3. General Payment Provisions and Use of Proceeds

    

              3.01     Payments.  All
      payments shall be made by Borrower to Bank at the Principal Office or such
      other
      place as Bank may from time to time specify in writing in lawful currency of
      the
      United States of America in immediately available funds, without counterclaim
      or
      setoff and free and clear of, and without any deduction or withholding for,
      any
      taxes or other payments.  All payments shall be applied first to the
      payment of all fees, expenses and other amounts due to the Bank (excluding
      principal and interest), then to accrued interest, and the balance on account
      of
      outstanding principal; provided, however, that after an Event of Default,
      payments will be applied to the Indebtedness of Borrower to Bank as Bank
      determines in its sole discretion.  If any payment under this
      Agreement or the Term Loan Note becomes due on a day which is not a Business
      Day, the due date of this Note or payment shall be extended to the next
      succeeding Business Day, and such extension of time shall be included in
      computing interest and fees in connection with such payment.  If the
      entire amount of any required principal and/or interest is not paid in full
      within five (5) days after the same is due, Borrower shall pay to Bank a late
      fee equal to five percent (5%) of the required payment.

    

              3.02     Usury
      Limitation.  If, at any time, the rate of interest, together with
      all amounts which constitute interest and which are reserved, charged or taken
      by Bank as compensation for fees, services or expenses incidental to the making,
      negotiating or collection of the loan evidenced hereby, shall be deemed by
      any
      competent court of law, governmental agency or tribunal to exceed the maximum
      rate of interest permitted to be charged by Bank to Borrower under applicable
      law, then, during such time as such rate of interest would be deemed excessive,
      that portion of each sum paid attributable to that portion of such interest
      rate
      that exceeds the maximum rate of interest so permitted shall be deemed a
      voluntary prepayment of principal.  As used herein, the term
      "applicable law" shall mean the law in effect as of the date hereof; provided,
      however, that in the event there is a change in the law which results in a
      higher

    
      
        
        

      

      
        10

        
        

      

      
        
        

      

    

    permissible
      rate of interest, then this Agreement and the other Loan Documents shall be
      governed by such new law as of its effective date.

    

              3.03     Use
      of Proceeds.  The Borrower represents to and covenants with the
      Bank that all proceeds of the Term Loans will be used to acquire Real Estate
      and
      additional equity interests in Locke Sovran I LP and Locke Sovran II
      LP.

    

              3.04     Concerning
      Joint and Several Liability of the Borrowers.

    

                             (a)     Each
      of the Borrowers is accepting joint and several liability hereunder and under
      the other Loan Documents in consideration of the financial accommodations to
      be
      provided by the Bank under this Term Loan Agreement, for the mutual benefit,
      directly and indirectly, of each of the Borrowers and in consideration of the
      undertakings of each other Borrower to accept joint and several liability for
      the Obligations.

    

                             (b)     Each
      of the Borrowers, jointly and severally, hereby irrevocably and unconditionally
      accepts, not merely as a surety but also as a co-debtor, joint and several
      liability with the other Borrowers, with respect to the payment and performance
      of all of the Obligations (including, without limitation, any Obligations
      arising under this Section 3.04), it being the intention of the parties hereto
      that all the Obligations shall be the joint and several Obligations of each
      of
      the Borrowers without preferences or distinction among them.

    

                             (c)     If
      and to the extent that any of the Borrowers shall fail to make any payment
      with
      respect to any of the Obligations as and when due or to perform any of the
      Obligations in accordance with the terms thereof, then in each such event the
      other Borrowers will make such payment with respect to, or perform, such
      Obligation.

    

                             (d)     The
      Obligations of each of the Borrowers under the provisions of this Section 3.04
      constitute full recourse Obligations of each of the Borrowers enforceable
      against each such Person to the full extent of its properties and assets,
      irrespective of the validity, regularity or enforceability of this Agreement
      or
      any other circumstance whatsoever.

    

                             (e)     Except
      as otherwise expressly provided in this Term Loan Agreement, each of the
      Borrowers hereby waives notice of acceptance of its joint and several liability,
      notice of any Term Loans made under this Term Loan Agreement, notice of any
      action at any time taken or omitted by the Bank under or in respect of any
      of
      the Obligations, and, generally, to the extent permitted by applicable law,
      all
      demands, notices and other formalities of every kind in connection with this
      Term Loan Agreement.  Each of the Borrowers hereby assents to, and
      waives notice of, any extension or postponement of the time for the payment
      of
      any of the Obligations, the acceptance of any payment of any of the Obligations,
      the acceptance of any partial payment thereon, any waiver, consent or other
      action or acquiescence by the Bank at any time or times in respect of any
      default by any of the Borrowers in the performance or satisfaction of any term,
      covenant, condition or provision of this Term Loan Agreement, any and all other
      indulgences whatsoever by the Bank in respect of any of the Obligations, and
      the
      taking, addition, substitution or release, in whole or in part, at any time
      or
      times, of any security for any of the Obligations or the addition, substitution
      or release, in whole or in part, of any of the

    
      
        
        

      

      
        11

        
        

      

      
        
        

      

    

    Borrowers.  Without
      limiting the generality of the foregoing, each of the Borrowers assents to
      any
      other action or delay in acting or failure to act on the part of the Lenders
      with respect to the failure by any of the Borrowers to comply with any of its
      respective Obligations, including, without limitation, any failure strictly
      or
      diligently to assert any right or to pursue any remedy or to comply fully with
      applicable laws or regulations thereunder, which might, but for the provisions
      of this Section 3.04, afford grounds for terminating, discharging or relieving
      any of the Borrowers, in whole or in part, from any of its Obligations under
      this Section 3.04, it being the intention of each of the Borrowers that, so
      long
      as any of the Obligations hereunder remain unsatisfied, the Obligations of
      such
      Borrowers under this Section 3.04 shall not be discharged except by performance
      and then only to the extent of such performance.  The Obligations of
      each of the Borrowers under this Section 3.04 shall not be diminished or
      rendered unenforceable by any winding up, reorganization, arrangement,
      liquidation, re-construction or similar proceeding with respect to any of the
      Borrowers or the Bank.  The joint and several liability of the
      Borrowers hereunder shall continue in full force and effect notwithstanding
      any
      absorption, merger, amalgamation or any other change whatsoever in the name,
      membership, constitution or place of formation of any of the Borrowers or the
      Bank.

    

    ARTICLE
      4. Guaranties

    

              4.01     Guaranties.  Each
      of the Guarantors will jointly and severally guaranty all of the Obligations
      pursuant to its Guaranty.  The Obligations are full recourse
      obligations of each Borrower and each Guarantor, and all of the respective
      assets and properties of each Borrower and each Guarantor shall be available
      for
      the payment in full in cash and performance of the Obligations.  Other
      than during the continuance of a Default or Event of Default, at the request
      of
      the Borrower Representative, the Guaranty of any Subsidiary Guarantor, except
      the Holdings Guaranty, shall be released by the Bank if and when all of the
      Real
      Estate owned by such Subsidiary Guarantor shall cease to be Unencumbered
      Properties pursuant to the terms of this Agreement.

    

    ARTICLE
      5. Representations and Warranties.

    

    Each
      of the Borrowers for itself and for the other Borrowers and for each Guarantor
      insofar as any such statements relate to such Guarantor represents and warrants
      to the Bank all of the statements contained in this Article 5.

    

              5.01     Authority;
      Etc.

    

                             (a)     Organization:
      Good Standing.

    

                                       (i)     SALP
      is a limited partnership duly organized, validly existing and in good standing
      under the laws of the State of Delaware; Holdings is a corporation duly
      organized, validly existing and in good standing under the laws of the State
      of
      Delaware; each of SALP and Holdings has all requisite partnership or corporate,
      as the case may be, power to own its respective properties and conduct its
      respective business as now conducted and as presently contemplated; and each
      of
      SALP and Holdings is in good standing as a foreign entity and is duly authorized
      to do business in the jurisdictions where the Real Estate owned by it is located
      and in

    
      
        
        

      

      
        12

        
        

      

      
        
        

      

    

    each
      other jurisdiction where such qualification is necessary except where a failure
      to be so qualified in such other jurisdiction would not have a materially
      adverse effect on any of their respective businesses, assets or financial
      conditions.

    

                                       (ii)     Sovran
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the State of Maryland; each Subsidiary of Sovran is duly organized,
      validly existing and in good standing as a corporation or partnership or other
      entity, as the case may be, under the laws of the state of its organization;
      Sovran and each of its Subsidiaries has all requisite corporate or partnership
      or other entity, as the case may be, power to own its respective properties
      and
      conduct its respective business as now conducted and as now conducted and as
      presently contemplated; and Sovran and each of its Subsidiaries is in good
      standing as a foreign entity and is duly authorized to do business in the
      jurisdictions where such qualification is necessary (including, as to Sovran,
      in
      the State of New York) except where failure to be so qualified in such other
      jurisdiction would not have a materially adverse effect on the business, assets
      or financial condition of Sovran or such Subsidiary.

    

                                       (iii)     As
      to each subsequent Guarantor, a provision similar, as applicable, to (a)(i)
      or
      (ii) above shall be included in each such subsequent Guarantor's Subsidiary
      Guaranty, and the Borrowers shall be deemed to make for itself and on behalf
      of
      each such subsequent Guarantor a representation and warranty as to such
      provision regarding such subsequent Guarantor.

    

                             (b)     Capitalization.

    

                                       (i)     The
      outstanding equity of SALP is comprised of a general partner interest and
      limited partner interests, all of which have been duly issued and are
      outstanding and fully paid and non-assessable.  All of the issued and
      outstanding general partner interests of SALP are owned and held of record
      by
      Holdings. Except as set forth in the Agreement of Limited Partnership of SALP,
      there are no outstanding securities or agreements exchangeable for or
      convertible into or carrying any rights to acquire any equity interests in
      SALP.  There are no outstanding commitments, options, warrants, calls
      or other agreements (whether written or oral) binding on SALP or Sovran which
      require or could require SALP or Sovran to sell, grant, transfer, assign,
      mortgage, pledge or otherwise dispose of any equity interests of
      SALP.  No general partnership interests of SALP are subject to any
      restrictions on transfer or any partner agreements, voting agreements, trust
      deeds, irrevocable proxies, or any other similar agreements or interests
      (whether written or oral).

    

                                       (ii)     The
      issued and outstanding voting and non-voting shares of the common stock of
      Holdings, and all of the other equity interests in Holdings, all of which have
      been duly issued and are outstanding and fully paid and non-assessable, are
      owned and held of record by Sovran.  There are no outstanding
      securities or agreements exchangeable for or convertible into or carrying any
      rights to acquire any equity interests in Holdings, and there are no outstanding
      options, warrants, or other similar rights to acquire any shares of any class
      in
      the capital of or any other equity interests in Holdings.  There are
      no outstanding commitments, options, warrants, calls or other agreements or
      obligations (whether written or oral) binding on Holdings to issue, sell, grant,
      transfer, assign, mortgage, pledge or otherwise dispose of any

    
      
        
        

      

      
        13

        
        

      

      
        
        

      

    

    shares
      of any class in the capital of or other equity interests in
      Holdings.  No shares of, or equity interests in Holdings held by
      Sovran are subject to any restrictions on transfer pursuant to any of Holding's
      applicable charter, by-laws or any shareholder agreements, voting agreements,
      voting trusts, trust agreements, trust deeds, irrevocable proxies or any other
      similar agreements or instruments (whether written or oral).

    

                             (c)     Due
      Authorization.  The execution, delivery and performance of this
      Term Loan Agreement and the other Loan Documents to which any of the Borrowers
      or any of the Guarantors is or is to become a party and the transactions
      contemplated hereby and thereby (i) are within the authority of such
      Borrower and such Guarantor, (ii) have been duly authorized by all necessary
      proceedings on the part of such Borrower or such Guarantor and any general
      partner or other controlling Person thereof, (iii) do not conflict with or
      result in any breach or contravention of any provision of law, statute, rule
      or
      regulation to which such Borrower or such Guarantor is subject or any judgment,
      order, writ, injunction, license or permit applicable to such Borrower or such
      Guarantor, (iv) do not conflict with any provision of the agreement of limited
      partnership, any certificate of limited partnership, the charter documents
      or
      by-laws of such Borrower or such Guarantor or any general partner or other
      controlling Person thereof, and (v) do not contravene any provisions of, or
      constitute a default, Default or Event of Default hereunder or a failure to
      comply with any term, condition or provision of, any other agreement,
      instrument, judgment, order, decree, permit, license or undertaking binding
      upon
      or applicable to such Borrower or such Guarantor or any of such Borrower's
      or
      such Guarantor's properties (except for any such failure to comply under any
      such other agreement, instrument, judgment, order, decree, permit, license,
      or
      undertaking as would not materially and adversely affect the condition
      (financial or otherwise), properties, business or results of operations of
      any
      Borrower, the Operating Subsidiaries or any Guarantor) or result in the creation
      of any mortgage, pledge, security interest, lien, encumbrance or charge upon
      any
      of the properties or assets of any Borrower, the Operating Subsidiaries or
      any
      Guarantor.

    

                             (d)     Enforceability.  Each
      of the Loan Documents to which any of the Borrowers or any of the Guarantors
      is
      a party has been duly executed and delivered and constitutes the legal, valid
      and binding obligations of each such Borrower and each such Guarantor, as the
      case may be, subject only to applicable bankruptcy, insolvency, reorganization,
      moratorium or other laws relating to or affecting generally the enforcement
      of
      creditors' rights and to the fact that the availability of the remedy of
      specific performance or injunctive relief is subject to the discretion of the
      court before which any proceeding therefor may be brought.

    

              5.02     Governmental
      Approvals.  The execution, delivery and performance by each
      Borrower of this Term Loan Agreement and by each Borrower and each Guarantor
      of
      the other Loan Documents to which such Borrower or such Guarantor is or is
      to
      become a party and the transactions contemplated hereby and thereby do not
      require (i) the approval or consent of any governmental agency or authority
      other than those already obtained, or (ii) filing with any governmental agency
      or authority, other than filings which will be made with the SEC when and as
      required by law.

    
      
        
        

      

      
        14

        
        

      

      
        
        

      

    

              5.03     Title
      to Properties; Leases.  The Borrowers, the Guarantors and their
      respective Subsidiaries each has good title to all of its respective properties,
      assets and rights of every name and nature purported to be owned by
      it.

    

              5.04     Financial
      Statements.  The following financial statements have been
      furnished to the Bank:

    

                             (a)     The
      audited consolidated balance sheet of Sovran and its Subsidiaries (including,
      without limitation, SALP) as of December 31, 2006 and their related consolidated
      income statements for the fiscal year ended December 31, 2006 and the unaudited
      consolidated balance sheet of Sovran and its Subsidiaries as of June 30, 2007
      and their related consolidated income statements for the fiscal quarter then
      ended, certified by the chief financial officer of Sovran.  Such
      balance sheet and income statements have been prepared in accordance with GAAP
      and fairly present the financial condition of Sovran and its Subsidiaries as
      of
      the close of business on the dates thereof and the results of operations for
      the
      fiscal periods then ended.  There are no contingent liabilities of
      Sovran as of such dates involving material amounts, known to the officers of
      the
      Borrowers, not disclosed in said financial statements and the related notes
      thereto.

    

                             (b)     Sovran's
      Annual Report on Form 10-K for the year ended December 31, 2006 and Sovran's
      Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, both filed
      with the SEC pursuant to the Securities and Exchange Act of 1934, as
      amended.

    

              5.05     Fiscal
      Year.  The Borrowers and their respective Subsidiaries each has a
      fiscal year which is the twelve months ending on December 31 of each calendar
      year.

    

              5.06     Franchises,
      Patents, Copyrights. Etc.  Each Borrower, each Guarantor and each
      of their respective Subsidiaries possesses all franchises, patents, copyrights,
      trademarks, trade names, licenses and permits, and rights in respect of the
      foregoing, adequate for the conduct of their respective businesses substantially
      as now conducted without known conflict with any rights of others.

    

              5.07     Litigation.  Except
      as stated on Schedule 5.07, there are no actions, suits, proceedings or
      investigations of any kind pending or threatened against any Borrower, any
      Guarantor or any of their respective Subsidiaries before any court, tribunal
      or
      administrative agency or board that, if adversely determined, might, either
      individually or in the aggregate, materially adversely affect the properties,
      assets, financial condition or business of such Borrower, such Guarantor or
      their respective Subsidiaries or materially impair the right of such Borrower,
      such Guarantor or their respective Subsidiaries to carry on their respective
      businesses substantially as now conducted by them, or result in any substantial
      liability not adequately covered by insurance, or for which adequate reserves
      are not maintained, as reflected in the applicable financial statements of
      the
      Borrowers, or which question the validity of this Term Loan Agreement or any
      of
      the other Loan Documents, or any action taken or to be taken pursuant hereto
      or
      thereto.

    
      
        
        

      

      
        15

        
        

      

      
        
        

      

    

              5.08     No
      Materially Adverse Contracts, Etc.  None of any Borrower, any
      Guarantor or any of their respective Subsidiaries is subject to any charter,
      corporate, partnership or other legal restriction, or any judgment, decree,
      order, rule or regulation that has or is expected in the future to have a
      materially adverse effect on their respective businesses, assets or financial
      conditions.  None of any Borrower, any Guarantor or any of their
      respective Subsidiaries is a party to any contract or agreement that has or
      is
      expected, in the judgment of their respective officers, to have any materially
      adverse effect on the respective businesses of such Borrower, such Guarantor
      or
      any of their respective Subsidiaries.

    

              5.09     Compliance
      With Other Instruments, Laws, Etc.  None of any Borrower, any
      Guarantor or any of their respective Subsidiaries is in violation of any
      provision of its partnership agreement, charter documents, bylaws or other
      organizational documents, as the case may be, or any respective agreement or
      instrument to which it may be subject or by which it or any of its properties
      may be bound or any decree, order, judgment, statute, license, rule or
      regulation, in any of the foregoing cases in a manner that could result,
      individually or in the aggregate, in the imposition of substantial penalties
      or
      materially and adversely affect the financial condition, properties or
      businesses of such Borrower, such Guarantor or any of their respective
      Subsidiaries.

    

              5.10     Tax
      Status.

    

                             (a)     Each
      of the Borrowers, the Guarantors and their respective Subsidiaries (A) has
      timely made or filed all federal, state and local income and all other tax
      returns, reports and declarations required by any jurisdiction to which it
      is
      subject, (B) has paid all taxes and other governmental assessments and charges
      shown or determined to be due on such returns, reports and declarations, except
      those being contested in good faith and by appropriate proceedings, and (C)
      has
      set aside on its books provisions reasonably adequate for the payment of all
      taxes for periods subsequent to the periods to which such returns, reports
      or
      declarations apply, and (ii) there are no unpaid taxes in any material amount
      claimed to be due by the taxing authority of any jurisdiction, and the
      respective officers of the Borrowers and the Guarantors and their respective
      Subsidiaries know of no basis for any such claim.

    

                             (b)     To
      the best of the Borrowers' knowledge, each Partially-Owned Entity (i) has
      timely made or filed all federal. state and local income and all other tax
      returns. reports and declarations required by any jurisdiction to which it
      is
      subject, (ii) has paid all taxes and other governmental assessments and charges
      shown or determined to be due on such returns, reports and declarations, except
      those being contested in good faith and by appropriate proceedings, and (iii)
      has set aside on its books provisions reasonably adequate for the payment of
      all
      taxes for periods subsequent to the periods to which such returns, reports
      or
      declarations apply.  To the best of the Borrowers' knowledge, except
      as otherwise disclosed in writing to the Bank, there are no unpaid taxes in
      any
      material amount claimed to be due by the taxing authority of any jurisdiction
      from any Partially-Owned Entity, and the officers of the Borrowers know of
      no
      basis for any such claim.

    

              5.11     No
      Event of Default: No Materially Adverse Changes.  No default,
      Default or Event of Default has occurred and is continuing.  Since
      September 30, 2005, there has occurred

    
      
        
        

      

      
        16

        
        

      

      
        
        

      

    

    no
      materially adverse change in the businesses, assets, operations, conditions
      (financial or otherwise) or prospects of Sovran and its Subsidiaries or SALP
      and
      its Subsidiaries as shown on or reflected in the consolidated balance sheet
      of
      Sovran and its Subsidiaries as at September 30, 2005, or the consolidated
      statement of income for the fiscal quarter then ended, other than changes in
      the
      ordinary course of business that have not had any materially adverse effect
      either individually or in the aggregate on the businesses, assets, operations,
      conditions (financial or otherwise) or prospects of Sovran, SALP or any of
      their
      respective Subsidiaries.

    

              5.12     Investment
      Company Act; Public Utility Holding Company Act.  None of any
      Borrower, any Guarantor or any of their respective Subsidiaries is (a) an
      "investment company", or an "affiliated company" or a "principal underwriter"
      of
      an "investment company", as such terms are defined in the Investment Company
      Act
      of 1940 or (b) a "holding company" as defined in, or subject to regulation
      under, the Public Utility Holding Company Act of 1935.

    

              5.13     Absence
      of UCC Financing Statements, Etc.  Except for Permitted Liens,
      there are no financing statement, security agreement, chattel mortgage, real
      estate mortgage, equipment lease, financing lease, option, encumbrance or other
      document filed or recorded with any filing records, registry, or other public
      office, that purports to cover, affect or give notice of any present or possible
      future lien or encumbrance on, or security interest in, any Unencumbered
      Property.  Neither any Borrower nor any Guarantor has pledged or
      granted any lien on or security interest in or otherwise encumbered or
      transferred any of their respective interests in any Subsidiary (including
      in
      the case of Sovran, its interests in SALP, and in the case of any Borrower,
      its
      interests in the Operating Subsidiaries) or in any Partially-Owned
      Entity.

    

              5.14     Absence
      of Liens.  A Borrower or a Guarantor is the owner of the
      Unencumbered Properties free from any lien, security interest, encumbrance
      and
      any other claim or demand, except for Permitted Liens.

    

              5.15     Certain
      Transactions.  Except as set forth on Schedule 5.15, none of the
      officers, partners, directors, or employees of any Borrower or any Guarantor
      or
      any of their respective Subsidiaries is presently a party to any transaction
      with any Borrower, any Guarantor or any of their respective Subsidiaries (other
      than for services as employees, officers and directors), including any contract,
      agreement or other arrangement providing for the furnishing of services to
      or
      by, providing for rental of real or personal property to or from, or otherwise
      requiring payments to or from any officer, partner, director or such employee
      or, to the knowledge of the Borrowers, any corporation, partnership, trust
      or
      other entity in which any officer, partner, director, or any such employee
      or
      natural Person related to such officer, partner, director or employee or other
      Person in which such officer, partner, director or employee has a direct or
      indirect beneficial interest has a substantial interest or is an officer,
      director, trustee or partner.

    

              5.16     Employee
      Benefit Plans.

    

                             (a)     In
      General.  Each Employee Benefit Plan and each Guaranteed Pension
      Plan has been maintained and operated in compliance in all material respects
      with the provisions of ERISA and, to the extent applicable, the Code, including
      but not limited to the provisions thereunder respecting prohibited transactions
      and the bonding of fiduciaries and other persons

    
      
        
        

      

      
        17

        
        

      

      
        
        

      

    

    handling
      plan funds as required by §412 of ERISA.  The Borrowers have
      heretofore delivered to the Administrative Agent the most recently completed
      annual report, Form 5500, with all required attachments, and actuarial statement
      required to be submitted under §103(d) of ERISA, with respect to each Guaranteed
      Pension Plan.

    

                             (b)     Terminability
      of Welfare Plans.  No Employee Benefit Plan, which is an employee
      welfare benefit plan within the meaning of §3(1) or §3(2)(B) of ERISA, provides
      benefit coverage subsequent to termination of employment, except as required
      by
      Title I, Part 6 of ERISA or the applicable state insurance laws.  The
      Borrowers may terminate each such Plan at any time (or at any time subsequent
      to
      the expiration of any applicable bargaining agreement) in the discretion of
      the
      Borrowers without liability to any Person other than for claims arising prior
      to
      termination.

    

                             (c)     Guaranteed
      Pension Plans.  Each contribution required to be made to a
      Guaranteed Pension Plan, whether required to be made to avoid the incurrence
      of
      an accumulated funding deficiency, the notice or lien provisions of §302(f) of
      ERISA, or otherwise, has been timely made. No waiver of an accumulated funding
      deficiency or extension of amortization periods has been received with respect
      to any Guaranteed Pension Plan, and neither any Borrower or any Guarantor nor
      any ERISA Affiliate is obligated to or has posted security in connection with
      an
      amendment to a Guaranteed Pension Plan pursuant to §307 of ERISA or §401(a)(29)
      of the Code.  No liability to the PBGC (other than required insurance
      premiums, all of which have been paid) has been incurred by any Borrower or
      any
      Guarantor or any ERISA Affiliate with respect to any Guaranteed Pension Plan
      and
      there has not been any ERISA Reportable Event (other than an ERISA Reportable
      Event as to which the requirement of thirty (30) days notice has been waived),
      or any other event or condition which presents a material risk of termination
      of
      any Guaranteed Pension Plan by the PBGC.  Based on the latest
      valuation of each Guaranteed Pension Plan (which in each case occurred within
      twelve months of the date of this representation), and on the actuarial methods
      and assumptions employed for that valuation, the aggregate benefit liabilities
      of all such Guaranteed Pension Plans within the meaning of §4001 of ERISA did
      not exceed the aggregate value of the assets of all such Guaranteed Pension
      Plans, disregarding for this purpose the benefit liabilities and assets of
      any
      Guaranteed Pension Plan with assets in excess of benefit liabilities, by more
      than $500,000.

    

                             (d)     Multiemployer
      Plans.  Neither any Borrower nor any Guarantor nor any ERISA
      Affiliate has incurred any material liability (including secondary liability)
      to
      any Multiemployer Plan as a result of a complete or partial withdrawal from
      such
      Multiemployer Plan under §4201 of ERISA or as a result of a sale of assets
      described in §4204 of ERISA.  Neither any Borrower nor any Guarantor
      nor any ERISA Affiliate has been notified that any Multiemployer Plan is in
      reorganization or insolvent under and within the meaning of §4241 or §4245 of
      ERISA or is at risk of entering reorganization or becoming insolvent, or that
      any Multiemployer Plan intends to terminate or has been terminated under §4041A
      of ERISA.

    

              5.17     Regulations
      U and X.  The proceeds of the Loans shall be used for the purposes
      described in Section 3.03.  No portion of any Loan is to be used, and
      no portion of any Letter of Credit is to be obtained, for the purpose of
      purchasing or carrying any "margin security" or

    
      
        
        

      

      
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    "margin
      stock" in violation of (and, as such terms are used in) Regulations U and X
      of
      the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 221 and
      224.

    

              5.18     Environmental
      Compliance.  The Borrowers have caused environmental assessments
      to be conducted and/or taken other steps to investigate the past and present
      environmental condition and usage of the Real state and the operations conducted
      thereon.  Based upon such assessments and/or investigation, the
      Borrowers represent and warrant that:

    

                             (a)     None
      of any Borrower, any Guarantor, any of their respective Subsidiaries or any
      operator of the Real Estate or any portion thereof, or any operations thereon
      is
      in violation, or alleged violation, of any judgment, decree, order, law,
      license, rule or regulation pertaining to environmental matters, including
      without limitation, those arising under the Resource Conservation and Recovery
      Act ("RCRA"), the Comprehensive Environmental Response, Compensation and
      Liability Act of 1980 as amended ("CERCLA"), the Superfund Amendments and
      Reauthorization Act of 1986 ("SARA"), the Federal Clean Water Act, the Federal
      Clean Air Act, the Toxic Substances Control Act, or any state or local statute,
      regulation, ordinance, order or decree relating to health, safety or the
      environment (hereinafter "Environmental Laws"), which violation or alleged
      violation has, or its remediation would have, by itself or when aggregated
      with
      all such other violations or alleged violations, a material adverse effect
      on
      the environment or the business, assets or financial condition of any Borrower,
      any Guarantor or any of their respective Subsidiaries, or constitutes a
      Disqualifying Environmental Event with respect to any Unencumbered
      Property.

    

                             (b)     None
      of any Borrower, any Guarantor or any of their respective Subsidiaries has
      received notice from any third party, including, without limitation, any
      federal, state or local governmental authority, (i) that it has been identified
      by the United States Environmental Protection Agency ("EPA") as a potentially
      responsible party under CERCLA with respect to a site listed on the National
      Priorities List, 40 C.F.R. Part 300 Appendix B (1986), (ii) that any hazardous
      waste, as defined by 42 U.S.C. §6903(5), any hazardous substances as defined by
      42 U.S.C. §9601(14), any pollutant or contaminant as defined by 42 U.S.C.
§9601(33) or any toxic substances, oil or hazardous materials or other chemicals
      or substances regulated by any Environmental Laws ("Hazardous Substances")
      which
      it has generated, transported or disposed of has been found at any site at
      which
      a federal, state or local agency or other third party has conducted or has
      ordered that any Borrower, any Guarantor or any of their respective Subsidiaries
      conduct a remedial investigation, removal or other response action pursuant
      to
      any Environmental Law, or (iii) that it is or shall be a named party to any
      claim, action, cause of action, complaint, or legal or administrative proceeding
      (in each case, contingent or otherwise) arising out of any third party's
      incurrence of costs, expenses, losses or damages of any kind whatsoever in
      connection with the release of Hazardous Substances; which event described
      in
      any such notice would have a material adverse effect on the business, assets
      or
      fmancial condition of any Borrower, any Guarantor or any of their respective
      Subsidiaries, or constitutes a Disqualifying Environmental Event with respect
      to
      any Unencumbered Property.

    

                             (c)     None
      of the Borrowers. the Guarantors or the Real Estate is subject to any applicable
      Environmental Law requiring the performance of Hazardous Substances site
      assessments, or the removal or remediation of Hazardous Substances, or the
      giving of notice to

    
      
        
        

      

      
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    any
      governmental agency or the recording or delivery to other Persons of an
      environmental disclosure document or statement, by virtue of the transactions
      set forth herein and contemplated hereby, or as a condition to the effectiveness
      of any other transactions contemplated hereby.

    

              5.19     Subsidiaries.  Schedule
      5.19 sets forth all of the respective Subsidiaries of Sovran or SALP, and
      Schedule 5.19 will be updated to reflect any subsequent Guarantor and its
      Subsidiaries, if any.

    

              5.20     Loan
      Documents.  All of the representations and warranties of the
      Borrowers and the Guarantors made in this Term Loan Agreement and in the other
      Loan Documents or any document or instrument delivered to the Bank pursuant
      to
      or in connection with any of such Loan Documents are true and correct in all
      material respects and do not include any untrue statement of a material fact
      or
      omit to state a material fact required to be stated or necessary to make such
      representations and warranties not materially misleading.

    

              5.21     REIT
      Status.  Sovran has not taken any action that would prevent it
      from maintaining its qualification as a REIT for its tax year ended December
      31,2006, or from maintaining such qualification at all times during the term
      of
      the Loans. Sovran is not a "pension held REIT" within the meaning of
§856(h)(3)(D) of the Code.

    

    ARTICLE
      6. Covenants of the Borrowers and the Guarantors.

    

              Each
      of the Borrowers for itself and on behalf of each of the Guarantors (if and
      to
      the extent expressly included in Subsections contained in this Section)
      covenants and agrees that, so long as any Indebtedness arising under this
      Agreement or the Term Loan Note is outstanding or the Bank has any obligation
      to
      make any Term Loans:

    

              6.01     Punctual
      Payment.  The Borrowers will duly and punctually pay or cause to
      be paid the principal and interest on the Term Loans and all interest, fees,
      charges and other amounts provided for in this Term Loan Agreement and the
      other
      Loan Documents, all in accordance with the terms of this Term Loan Agreement
      and
      the Term Loan Note, and the other Loan Documents.

    

              6.02     Maintenance
      of Office.  Each of the Borrowers and the Guarantors will maintain
      its chief executive office in Buffalo, New York, or at such other place in
      the
      contiguous United States of America as each of them shall designate upon written
      notice to the Bank to be delivered within five (5) days of such change, where
      notices, presentations and demands to or upon the Borrowers and the Guarantors,
      as the case may be, in respect of the Loan Documents may be given or
      made.

    

              6.03     Records
      and Accounts.  Each of the Borrowers and the Guarantors will (a)
      keep, and cause each of its Subsidiaries to keep, true and accurate records
      and
      books of account in which full, true and correct entries will be made in
      accordance with GAAP, (b) maintain adequate accounts and reserves for all taxes
      (including income taxes), contingencies, depreciation and amortization of its
      properties and the properties of its Subsidiaries and (c) at all times engage
      Ernst & Young LLP o; other accountants reasonably acceptable to the Bank as
      the

    
      
        
        

      

      
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    independent
      certified public accountants of Sovran, SALP and their respective Subsidiaries
      and will not permit more than thirty (30) days to elapse between the cessation
      of such firm's (or any successor firm's) engagement as the independent certified
      public accountants of Sovran, SALP and their respective Subsidiaries and the
      appointment in such capacity of a successor firm as Accountants.

    

              6.04     Financial
      Statements, Certificates and Information.  The Borrowers will
      deliver to the Bank true and correct copies of financial statements,
      certificates and information required to be delivered to the Administrative
      Agent under the terms of Section 8.4 of the Credit Agreement within the time
      periods or by the dates specified therein.

    

              6.05     Notices.

    

                             (a)     Defaults.  Each
      Borrower will, and will cause each Guarantor, as applicable, to, promptly notify
      the Bank in writing of the occurrence of any default, Default or Event of
      Default. If any Person shall give any notice or take any other action in respect
      of (x) a claimed default (whether or not constituting a Default or an Event
      of
      Default) under this Term Loan Agreement or (y) a claimed default by any
      Borrower, any Guarantor or any of their respective Subsidiaries, as applicable,
      under any note, evidence of Indebtedness, indenture or other obligation to
      which
      or with respect to which any of them is a party or obligor, whether as
      principal, guarantor or surety, and such default would permit the holder of
      such
      note or obligation or other evidence of Indebtedness to accelerate the maturity
      thereof or otherwise cause the entire Indebtedness to become due, such Borrower
      or such Guarantor, as the case may be, shall forthwith give written notice
      thereof to the Bank, describing the notice or action and the nature of the
      claimed failure to comply.

    

                             (b)     Environmental
      Events.  Each Borrower will, and will cause each Guarantor to,
      promptly give notice in writing to the Bank (i) upon such Borrower's or such
      Guarantor's obtaining knowledge of any material violation of any Environmental
      Law regarding any Real Estate or such Borrower's or such Guarantor's operations
      or the operations of any of their Subsidiaries, (ii) upon such Borrower's or
      such Guarantor's obtaining knowledge of any known Release of any Hazardous
      Substance at, from, or into any Real Estate which it reports in writing or
      is
      reportable by it in writing to any governmental authority and which is material
      in amount or nature or which could materially affect the value of such Real
      Estate, (iii) upon such Borrower's or such Guarantor's receipt of any notice
      of
      material violation of any Environmental Laws or of any material Release of
      Hazardous Substances in violation of any Environmental Laws or any matter that
      may be a Disqualifying Environmental Event, including a notice or claim of
      liability or potential responsibility from any third party (including without
      limitation any federal, state or local governmental officials) and including
      notice of any formal inquiry, proceeding, demand, investigation or other action
      with regard to (A) such Borrower's or such Guarantor's or any other Person's
      operation of any Real Estate, (B) contamination on, from or into any Real
      Estate, or (C) investigation or remediation of off-site locations at which
      such Borrower or such Guarantor or any of its predecessors are alleged to have
      directly or indirectly disposed of Hazardous Substances, or (iv) upon such
      Borrower's or such Guarantor's obtaining knowledge that any expense or loss
      has
      been incurred by such governmental authority in connection with the assessment,
      containment, removal or remediation of any Hazardous Substances with respect
      to

    
      
        
        

      

      
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    which
      such Borrower or such Guarantor or any Partially-Owned Entity may be liable
      or
      for which a lien may be imposed on any Real Estate; any of which events
      described in clauses (i) through (iv) above would have a material adverse
      effect on the business, assets or financial condition of any Borrower, any
      Guarantor or any of their respective Subsidiaries, or constitutes a
      Disqualifying Environmental Event with respect to any Unencumbered
      Property.

    

                             (c)     Notification
      of Claims against Unencumbered Properties.  Each Borrower will,
      and will cause each Guarantor to, promptly upon becoming aware thereof, notify
      the Bank in writing of any setoff, claims, withholding or other defenses to
      which any of the Unencumbered Properties are subject, which (i) would have
      a
      material adverse effect on (x) the business, assets or financial condition
      of
      any Borrower, any Guarantor or any of their respective Subsidiaries, or (y)
      the
      value of such Unencumbered Property, or (ii) with respect to such Unencumbered
      Property, constitute a Disqualifying Environmental Event, a Disqualifying Legal
      Event, a Disqualifying Building Event or a Lien which is not a Permitted
      Lien.

    

                             (d)     Notice
      of Litigation and Judgments.  Each Borrower will, and will cause
      each Guarantor to. and the Borrowers will cause each of their respective
      Subsidiaries to. give notice to the Bank in writing within ten (10) days of
      becoming aware of any litigation or proceedings threatened in writing or any
      pending litigation and proceedings an adverse determination in which could
      materially affect any Borrower, any Guarantor or any of their respective
      Subsidiaries or any Unencumbered Property or to which any Borrower, any
      Guarantor or any of their respective Subsidiaries is or is to become a party
      involving an uninsured claim against any Borrower, any Guarantor or any of
      their
      respective Subsidiaries that could reasonably be expected to have a materially
      adverse effect on such Borrower or such Guarantor or their respective
      properties, business, assets, financial condition or prospects or on the value
      or operation of the Unencumbered Properties and stating the nature and status
      of
      such litigation or proceedings.  Each Borrower will, and will cause
      each of the Guarantors and the Subsidiaries to, give notice to the Bank, in
      writing, in form and detail reasonably satisfactory to the Bank, within ten
      (10)
      days of any judgment not covered by insurance, final or otherwise, against
      any
      Borrower, any Guarantor or any of their Subsidiaries in an amount in excess
      of
      $100,000.

    

              6.06     Existence
      of SALP, Holdings and Subsidiary Guarantors; Maintenance of

    Properties.  SALP
      for itself and for Holdings and each Subsidiary Guarantor (insofar as any such
      statements relate to Holdings or such Subsidiary Guarantor) will do or cause
      to
      be done all things necessary to, and shall, preserve and keep in full force
      and
      effect its existence as a limited partnership, corporation or another legally
      constituted entity, and will do or cause to be done all things necessary to
      preserve and keep in full force all of its rights and franchises and those
      of
      its Subsidiaries, and will not, and will not cause or permit any of its
      Subsidiaries to, convert to a limited liability company or a limited liability
      partnership. SALP shall be the owner of substantially all of the Real Estate
      owned by the Borrowers and their respective Subsidiaries and shall not permit
      any Subsidiary of any Borrower to own any Real Estate without the prior written
      consent of the Bank, and then only in specific circumstances outside of the
      ordinary course of business.  In any such case, such Subsidiary shall
      be wholly-owned by Sovran or SALP and shall become a Subsidiary Guarantor.
      SALP
      (a) will cause all necessary repairs, renewals, replacements, betterments and
      improvements to be made to all Real Estate owned or controlled by it or by
      any
      of its Subsidiaries or any Subsidiary Guarantor, all as in the judgment of
      SALP
      or

    
      
        
        

      

      
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    such
      Subsidiary or such Subsidiary Guarantor may be necessary so that the business
      carried on in connection therewith may be properly conducted at all times,
      subject to the terms of the applicable Leases and partnership agreements or
      other entity charter documents, (b) will cause all of its other properties
      and
      those of its Subsidiaries and the Subsidiary Guarantors used or useful in the
      conduct of its business or the business of its Subsidiaries or such Subsidiary
      Guarantor to be maintained and kept in good condition, repair and working order
      and supplied with all necessary equipment, and (c) will, and will cause each
      of
      its Subsidiaries and each Subsidiary Guarantor to, continue to engage
      exclusively in the business of owning and operating self storage facilities,
      which self storage facilities shall be known primarily as "Uncle BOB'S Self
      Storage"; provided that nothing in this Term Loan Agreement shall prevent
      the Borrowers from entering into Tower Leases or occasional non-material Leases
      of retail or office space incidental to the Borrowers' owning and operating
      self
      storage facilities; and providedfurther that nothing in this
      Section 6.06 shall prevent any Borrower from discontinuing the operation and
      maintenance of any of its properties or any of those of its Subsidiaries if
      such
      discontinuance is, in the judgment of SALP, desirable in the conduct of its
      or
      their business and such discontinuance does not cause a Default or an Event
      of
      Default hereunder and does not in the aggregate materially adversely affect
      the
      business of the Borrowers and their respective Subsidiaries on a consolidated
      basis.  Holdings shall at all times he a wholly-owned Subsidiary of
      Sovran and the sole general partner of SALP and shall be the owner of at least
      1% of the outstanding partnership interests in SALP.

    

              6.07     Existence
      of Sovran; Maintenance of REIT Status of Sovran; Maintenance of
      Properties.  Sovran will do or cause to be done all things
      necessary to preserve and keep in full force and effect its existence as a
      Maryland corporation. Sovran will at all times maintain its status as a REIT
      and
      not to take any action which could lead to its disqualification as a
      REIT.  Sovran shall at all times maintain its listing on the New York
      Stock Exchange. Sovran will continue to operate as a fully-integrated,
      self-administered and self-managed real estate investment trust which, together
      with its Subsidiaries (including, without limitation SALP) owns and operates
      an
      improved property portfolio comprised exclusively of self-storage
      facilities.  Sovran will not engage in any business other than the
      business of acting as a REIT and serving as a limited partner of SALP and as
      a
      member, partner or stockholder of other Persons as permitted by this Term Loan
      Agreement.  Sovran shall conduct all or substantially all of its
      business operations through SALP, and shall not own real estate assets outside
      of its interests in SAW.  Sovran shall cause SALP to own substantially
      all of the Real Estate owned by the Borrowers and their respective Subsidiaries
      and shall not permit any Subsidiary of any Borrower to become the owner of
      any
      Real Estate without the prior written consent of the Bank, and then only in
      specific circumstances outside of the ordinary course of business.  In
      any such case, such Subsidiary shall be wholly-owned by Sovran or SALP and
      shall
      become a Subsidiary Guarantor.  Sovran shall do or cause to be done
      all things necessary to preserve and keep in full force all of its rights and
      franchises and those of its Subsidiaries.  Sovran shall (a) cause all
      of its properties and those of its Subsidiaries used or useful in the conduct
      of
      its business or the business of its Subsidiaries to be maintained and kept
      in
      good condition, repair and working order and supplied with all necessary
      equipment, (b) cause to be made all necessary repairs, renewals, replacements,
      betterments and improvements thereof, all as in the judgment of Sovran may
      be
      necessary so that the business carried on in connection therewith may be
      properly and advantageously conducted at all times, and (c) cause SALP and
      each
      of its Subsidiaries to continue to engage exclusively in

    
      
        
        

      

      
        23

        
        

      

      
        
        

      

    

    the
      business of owning and operating self storage facilities, which self-storage
      facilities shall be known primarily as "Uncle BOB'S Self Storage"; provided
      that
      nothing in this Section 6.07 shall prevent Sovran from discontinuing the
      operation and maintenance of any of its properties or any of those of its
      Subsidiaries if such discontinuance is, in the judgment of Sovran, desirable
      in
      the conduct of its or their business and such discontinuance does not cause
      a
      Default or an Event of Default hereunder and does not in the aggregate
      materially adversely affect the business of Sovran and its Subsidiaries on
      a
      consolidated basis.

    

              6.08     Insurance.  Each
      Borrower will, and will cause each Guarantor to, maintain with respect to its
      properties, and will cause each of its Subsidiaries to maintain with financially
      sound and reputable insurers, insurance with respect to such properties and
      its
      business against such casualties and contingencies as shall be in accordance
      with the general practices of businesses having similar operations and real
      estate portfolios in similar geographic areas and in amounts, containing such
      terms, in such forms and for such periods as may be reasonable and
      prudent.

    

              6.09     Taxes.  Each
      Borrower will, and will cause each Guarantor to, pay or cause to be paid real
      estate taxes, other taxes, assessments and other governmental charges against
      the Real Estate before the same become delinquent and will duly pay and
      discharge, or cause to be paid and discharged, before the same shall become
      overdue, all taxes, assessments and other governmental charges imposed upon
      its
      sales and activities, or any part thereof, or upon the income or profits
      therefrom, as well as all claims for labor, materials, or supplies that if
      unpaid might by law become a lien or charge upon any of the Real Estate;
      provided that any such tax, assessment, charge, levy or claim need not be paid
      if the validity or amount thereof shall currently be contested in good faith
      by
      appropriate proceedings and if such Borrower or such Guarantor shall have set
      aside on its books adequate reserves with respect thereto; and provided further
      that such Borrower or such Guarantor will pay all such taxes, assessments,
      charges, levies or claims forthwith upon the commencement of proceedings to
      foreclose any lien that may have attached as security therefor.  If
      requested by the Bank, the Borrowers will provide evidence of the payment of
      real estate taxes, other taxes, assessments and other governmental charges
      against the Real Estate in the form of receipted tax bills or other form
      reasonably acceptable to the Bank.

    

              6.10     Inspection
      of Properties and Books.  Each Borrower will, and will cause each
      Guarantor to, permit the Bank to visit and inspect any of the properties of
      any
      Borrower, any Guarantor or any of their respective Subsidiaries, to examine
      the
      books of account of the Borrowers, the Guarantors and their respective
      Subsidiaries (and to make copies thereof and extracts therefrom) and to discuss
      the affairs, finances and accounts of the Borrowers, the Guarantors and their
      respective Subsidiaries with, and to be advised as to the same by, its officers,
      all at such reasonable times and intervals as the Bank may reasonably request;
      provided that the Borrowers shall only be responsible for the costs and
      expenses incurred by the Bank in connection with such inspections after the
      occurrence and during the continuance of an Event of Default.  The
      Bank agrees to keep any non-public information delivered or made available
      by
      the Borrowers to it confidential from anyone other than persons employed or
      retained by the Bank (including, without limitation, employees, officers,
      attorneys and other advisors) who, in the reasonable determination of the Bank,
      reasonably need to know such information and who are or are expected to become
      engaged in evaluating, approving, structuring or administering the Term Loans
      or
      rendering legal advice in connection with the Term Loans; provided such
      employees,

    
      
        
        

      

      
        24

        
        

      

      
        
        

      

    

    officers,
      attorneys and other advisors agree to keep such information confidential in
      accordance with this Section 6.10; and provided further that nothing herein
      shall prevent the Bank or persons employed or retained by the Bank from
      disclosing such information (i) to any other person if reasonably incidental
      to
      the administration of the Term Loans, (ii) upon the order of any court or
      administrative agency, (iii) upon the request or demand of any regulatory agency
      or authority, (iv) which has been publicly disclosed other than as a result
      of a
      disclosure by the Bank which is not permitted by this Term Loan Agreement,
      (v)
      in connection with any litigation to which the Bank, or their respective
      Affiliates may be a party, (vi) to the extent reasonably required in connection
      with the exercise of any remedy hereunder, (vii) to the Bank, legal counsel
      and
      independent auditors, and (viii) as otherwise required by law. Notwithstanding
      anything herein to the contrary, the Bank may disclose to any and all Persons,
      without limitation of any kind, any information with respect to "tax treatment"
      and "tax structure" (in each case, within the meaning of Treasury Regulation
      §1.6011.4) of the transactions contemplated hereby and all materials of any
      kind
      (including opinions or other tax analyses) that are provided to the Bank
      relating to such tax treatment and tax structure.

    

              6.11     Compliance
      with Laws.  Contracts, Licenses. and Permits. Each Borrower will,
      and will cause each Guarantor to, comply with, and will cause each of their
      respective Subsidiaries to comply with (a) all applicable laws and regulations
      now or hereafter in effect wherever its business is conducted, including,
      without limitation, all Environmental Laws and all applicable federal and state
      securities laws, (b) the provisions of its partnership agreement and certificate
      or corporate charter and other charter documents and by-laws, as applicable,
      (c)
      all material agreements and instruments to which it is a party or by which
      it or
      any of its properties may be bound (including the Real Estate and the Leases)
      and (d) all applicable decrees, orders, and judgments.  If at any time
      while any Term Loan is outstanding or the Bank has any obligation to make Term
      Loans hereunder, any permit shall become necessary or required in order that
      any
      Borrower may fulfill any of its obligations hereunder, the Borrowers and the
      Guarantors will immediately take or cause to be taken all reasonable steps
      within the power of the Borrowers or the Guarantors, as applicable, to obtain
      such permit and furnish the Bank with evidence thereof.

    

              6.12     Use
      of Proceeds.  Subject at all times to the other provisions of this
      Term Loan Agreement, the Borrowers will use the proceeds of the Term Loans
      solely to finance the acquisition of Real Estate.

    

              6.13     Acquisition
      of Unencumbered Properties.  The Borrowers shall, within seven (7)
      Business Days of the acquisition of an Unencumbered Property or the
      qualification of any Real Estate as an Unencumbered Property, deliver to the
      Bank a certificate from an officer of the Borrower Representative certifying
      that such Real Estate satisfies the requirements for an Unencumbered Property
      set forth in the definition thereof.

    

              6.14     Solvency
      of Guarantor.  The Borrowers shall cause the Subsidiary Guarantor
      to remain solvent and shall provide each Subsidiary Guarantor with such funds
      and assets as such Subsidiary Guarantor shall require in the operation of its
      business, all in consideration of such Guarantor's execution and delivery of
      its
      Guaranty.

    
      
        
        

      

      
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              6.15     Further
      Assurances.  Each Borrower will, and will cause each Guarantor to,
      cooperate with, and to cause each of its Subsidiaries to cooperate with, the
      Bank and execute such further instruments and documents as the Bank shall
      reasonably request to carry out to their satisfaction the transactions
      contemplated by this Term Loan Agreement and the other Loan
      Documents.

    

              6.16     Environmental
      Indemnification.  The Borrowers jointly and severally covenant and
      agree that they will indemnify and hold the Bank, and each of its Affiliates,
      harmless from and against any and all claims, expense, damage, loss or liability
      incurred by the Bank (including all reasonable costs of legal representation
      incurred by the Bank, but excluding, as applicable, for the Bank any claim,
      expense, damage, loss or liability as a result of the gross negligence or
      willful misconduct of the Bank or any of its respective Affiliates) relating
      to
      (a) any Release or threatened Release of Hazardous Substances on any Real
      Estate; (b) any violation of any Environmental Laws with respect to conditions
      at any Real Estate or the operations conducted thereon; (c) the investigation
      or
      remediation of off-site locations at which any Borrower, any Guarantor or any
      of
      their respective Subsidiaries or their predecessors are alleged to have directly
      or indirectly disposed of Hazardous Substances; or (d) any action, suit,
      proceeding or investigation brought or threatened with respect to any Hazardous
      Substances relating to Real Estate (including, but not limited to, claims with
      respect to wrongful death, personal injury or damage to property).  It
      is expressly acknowledged by each Borrower that this covenant of indemnification
      shall survive the payment of the Term Loans and shall inure to the benefit
      of
      the Bank and its respective Affiliates, their respective successors, and their
      respective assigns under the Loan Documents permitted under this Term Loan
      Agreement.

    

              6.17     Response
      Actions.  Each Borrower covenants and agrees that if any Release
      or disposal of Hazardous Substances shall occur or shall have occurred on any
      Real Estate owned by it or any of its Subsidiaries, such Borrower will cause
      the
      prompt containment and removal of such Hazardous Substances and remediation
      of
      such Real Estate as necessary to comply with all Environmental Laws or to
      preserve the value of such Real Estate.

    

              6.18     Environmental
      Assessments.  If the Bank has reasonable grounds to believe that a
      Disqualifying Environmental Event has occurred with respect to any Unencumbered
      Property, after reasonable notice by the Bank, whether or not a Default or
      an
      Event of Default shall have occurred, the Bank may determine that the affected
      Real Estate no longer qualifies as an Unencumbered Property; provided that
      prior
      to making such determination, the Bank shall give the Borrower Representative
      reasonable notice and the opportunity to obtain one or more environmental
      assessments or audits of such Unencumbered Property prepared by a
      hydrogeologist, an independent engineer or other qualified consultant or expert
      approved by the Bank, which approval will not be unreasonably withheld, to
      evaluate or confirm (i) whether any Release of Hazardous Substances has occurred
      in the soil or water at such Unencumbered Property and (ii) whether the use
      and
      operation of such Unencumbered Property materially complies with all
      Environmental Laws (including not being subject to a matter that is a
      Disqualifying Environmental Event). Such assessment will then be used by the
      Bank to determine whether a Disqualifying Environmental Event has in fact
      occurred with respect to such Unencumbered Property.  All such
      environmental assessments shall be at the sole cost and expense of the
      Borrowers.

    
      
        
        

      

      
        26

        
        

      

      
        
        

      

    

    

              6.19     Employee
      Benefit Plans.

    

                             (a)     In
      General.  Each Employee Benefit Plan maintained by any Borrower,
      any Guarantor or any of their respective ERISA Affiliates will be operated
      in
      compliance in all material respects with the provisions of ERISA and, to the
      extent applicable, the Code, including but not limited to the provisions
      thereunder respecting prohibited transactions.

    

                             (b)     Terminability
      of Welfare Plans.  With respect to each Employee Benefit Plan
      maintained by any Borrower, any Guarantor or any of their respective ERISA
      Affiliates which is an employee welfare benefit plan within the meaning of
§3(1)
      or §3(2)(B) of ERISA, such Borrower, such Guarantor, or any of their respective
      ERISA Affiliates, as the case may be, has the right to terminate each such
      plan
      at any time (or at any time subsequent to the expiration of any applicable
      bargaining agreement) without liability other than liability to pay claims
      incurred prior to the date of termination.

    

                             (c)     Unfunded
      or Underfunded Liabilities.  The Borrowers will not, and will not
      permit any Guarantor to, at any time, have accruing or accrued unfunded or
      underfunded liabilities with respect to any Employee Benefit Plan, Guaranteed
      Pension Plan or Multiemployer Plan, or permit any condition to exist under
      any
      Multiemployer Plan that would create a withdrawal liability.

    

              6.20     No
      Amendments to Certain Documents.  The Borrowers will not, and will
      not permit any Guarantor to, at any time cause or permit its certificate of
      limited partnership, agreement of limited partnership, articles of
      incorporation, by-laws or other charter documents, as the case may be, to be
      modified, amended or supplemented in any respect whatever, without (in each
      case) the express prior written consent or approval of the Bank in its sole
      discretion, if such changes would affect Sovran's REIT status or otherwise
      materially adversely affect the rights of the Bank hereunder or under any other
      Loan Document.

    

              6.21     Compliance
      with Negative Covenants in The Credit Agreement.  The Borrowers
      will comply in all respects with (a) each of the covenants contained in Section
      9 of the Credit Agreement, and (b) each of the financial covenants contained
      in
      Section 10 of the Credit Agreement.

    

    ARTICLE
      7. Conditions to the Initial Advance of the Term Loan.

    

    The
      obligations of the Bank to advance the initial Term Loan shall be subject to
      the
      satisfaction of the following conditions precedent:

    

              7.01     Loan
      Documents.  Each of the Loan Documents shall have been duly
      executed and delivered by the respective parties thereto and shall be in full
      force and effect.

    

              7.02     Certified
      Copies of Organization Documents.  The Bank shall have received
      from each Borrower and Holdings a copy, certified by a duly authorized officer
      of such Person (or its general partner, in the case of SALP), to be true and
      complete, of each of its certificate of limited

    
      
        
        

      

      
        27

        
        

      

      
        
        

      

    

    partnership,
      agreement of limited partnership, incorporation documents, by-laws, and/or
      other
      organizational documents as in effect along with any other organization
      documents of any

    Borrower
      (and its general partner, in the case of SALP) or Holdings, as the case may
      be,
      and each as in effect on the date of such certification.

    

              7.03     By-laws;
      Resolutions.  All action on the part of the Borrowers and Holdings
      necessary for the valid execution, delivery and performance by the Borrowers
      and
      Holdings of this Term Loan Agreement and the other Loan Documents to which
      either of them is or is to become a party shall have been duly and effectively
      taken, and satisfactory evidence thereof shall have been provided to the
      Bank.  Without limiting the foregoing, the Bank shall have received
      from Holdings true copies of its by-laws and the resolutions adopted by its
      board of directors authorizing the transactions described herein and evidencing
      the due authorization, execution and delivery of the Loan Documents to which
      SALP and Holdings are a party, each certified by the secretary as of a recent
      date to be true and complete.

    

              7.04     Incumbency
      Certificate; Authorized Signers.  The Bank shall have received
      from each of the Borrowers and Holdings an incumbency certificate, dated as
      of
      the Closing Date, signed by a duly authorized officer such Person and giving
      the-name of each individual who shall be authorized: (a) to sign, in the name
      and on behalf of such Person, each of the Loan Documents to which such Person
      is
      or is to become a party; (b) in the case of the Borrower Representative, to
      make
      Loan Requests on behalf of the Borrowers; and (c) in the case of the Borrower
      Representative, to give notices and to take other action on behalf of the
      Borrowers and the Guarantors under the Loan Documents.

    

              7.05     Certificates
      of Insurance.  The Bank shall have received (a) current
      certificates of insurance as to all of the insurance maintained by each Borrower
      and their respective Subsidiaries on the Real Estate (including flood insurance
      if necessary) from the insurer or an independent insurance broker, identifying
      insurers, types of insurance, insurance limits, and policy terms; and (b) such
      further information and certificates from the Borrowers, their insurers and
      insurance brokers as the Bank may reasonably request.

    

              7.06     Opinion
      of Counsel Concerning Organization and Loan Documents.  The Bank
      shall have received favorable opinions addressed to the Bank in form and
      substance satisfactory to the Bank from Phillips Lytle LLP, as counsel to the
      Borrowers and their respective Subsidiaries with respect to New York law and
      certain matters of Delaware corporate law and Maryland corporate
      law.

    

              7.07     Tax
      and Securities Law Compliance.  The Bank shall also have received
      from Phillips Lytle LLP, as counsel to the Borrowers, a favorable opinion
      addressed to the Bank, in form and substance satisfactory to the Bank, with
      respect to the qualification of Sovran as a REIT and certain other tax and
      securities laws matters.

    

              7.08     Guaranties.  Each
      of the Guaranties to be executed and delivered on the Closing Date shall have
      been duly executed and delivered by the Guarantor thereunder.

    
      
        
        

      

      
        28

        
        

      

      
        
        

      

    

              7.09     UCC-11
      Reports.  The Bank shall have received UCC-11 search results from
      the appropriate jurisdictions for each Borrower and the Guarantor.

    

              7.10     Proceedings
      and Documents.  All proceedings in connection with the
      transactions contemplated by this Term Loan Agreement, the other Loan Documents
      and all other documents incident thereto shall be satisfactory in form and
      substance to the Bank and the Bank shall have received all information and
      such
      counterpart originals or certified or other copies of such documents as the
      Bank
      may reasonably request.

    

              7.11     Fees.  The
      Borrowers shall have paid to the Bank all of the fees and expenses that are
      due
      and payable as of the Closing Date in accordance with this Term Loan
      Agreement.

    

              7.12     Compliance
      Certificate.  The Borrowers shall have delivered a compliance
      certificate in the form of Exhibit C hereto evidencing continued compliance
      with
      the terms of this Agreement and the Credit Agreement.

    

              7.13     Subsequent
      Guarantors.  As a condition to the effectiveness of any subsequent
      Guaranty, each subsequent Guarantor shall deliver such documents, agreements,
      instruments and opinions as the Bank shall require as to such Guarantor and
      the
      unencumbered Property owned by such Guarantor that are analogous to the
      deliveries made by the Guarantors as of the Closing Date pursuant to Section
      7.02 through Section 7.04.

    

    ARTICLE
      8. Conditions to all Advances of the Term Loans

    

              The
      obligations of the Bank to make the additional Term Loans shall also be subject
      to the satisfaction of the following conditions precedent:

    

              8.01     Representations
      True; No Event of Default; Compliance Certificate.  Each of the
      representations and warranties of the Borrowers and the Guarantors contained
      in
      this Term Loan Agreement, the other Loan Documents or in any document or
      instrument delivered pursuant to or in connection with this Term Loan Agreement
      shall be true as of the date as of which they were made and shall also be true
      at and as of the time of the making of each Term Loan with the same effect
      as if
      made at and as of that time except to the extent that such representations
      and
      warranties relate expressly to an earlier date); and no Default or Event of
      Default under this Term Loan Agreement shall have occurred and be continuing
      on
      the date of any advance of any Term Loan. Each of the Bank shall have received
      a
      Compliance Certificate of the Borrowers in the form of Exhibit C
      hereto.

    

              8.02     No
      Legal Impediment.  No change shall have occurred in any law or
      regulations thereunder or interpretations thereof that in the reasonable opinion
      of the Bank would make it illegal for the Bank to make such Term
      Loan.

    

    ARTICLE
      9. Events of Default, Acceleration, etc.

    

              9.01     Events
      of Default and Acceleration.  If any of the following events
      ("Events of Default") shall occur:

    
      
        
        

      

      
        29

        
        

      

      
        
        

      

    

    

                             (a)     the
      Borrowers shall fail to pay any principal of the Term Loans when the same shall
      become due and payable, whether at the stated date of maturity or any
      accelerated date of maturity or at any other date fixed for
      payment;

    

                             (b)     the
      Borrowers shall fail to pay any interest on the Term Loans or any other sums
      due
      hereunder or under any of the other Loan Documents when the same shall become
      due and payable, whether at the stated date of maturity or any accelerated
      date
      of maturity or at any other date fixed for payment, and such failure continues
      for five (5) days;

    

                             (c)     any
      Borrower or any Guarantor or any of their respective Subsidiaries shall fail
      to
      comply with any of their respective covenants contained in Sections 6.01,
      6.06,6.07, 6.12, 6.14, 6.20 or 6.21;

    

                             (d)     any
      Borrower or any Guarantor or any of their respective Subsidiaries shall fail
      to
      perform any other term, covenant or agreement contained herein or in any other
      Loan Document (other than those specified elsewhere in this Section 9.01) and
      such failure continues for thirty (30) days;

    

                             (e)     any
      representation or warranty of any Borrower or any Guarantor in this Term Loan
      Agreement or any of the other Loan Documents or in any other document or
      instrument delivered pursuant to or in connection with this Term Loan Agreement
      shall prove to have been false in any material respect upon the date when made
      or deemed to have been made or repeated;

    

                             (f)     an
      "Event of Default" shall have occurred and be continuing under the terms of
      the
      Credit Agreement;

    

                             (g)     any
      Borrower, any Guarantor or any of their respective Subsidiaries shall make
      an
      assignment for the benefit of creditors, or admit in writing its inability
      to
      pay or generally fail to pay its debts as they mature or become due, or shall
      petition or apply for the appointment of a trustee or other custodian,
      liquidator or receiver of any Borrower, any Guarantor or any of their respective
      Subsidiaries or of any substantial part of the properties or assets of any
      Borrower. any Guarantor or any of their respective Subsidiaries or shall
      commence any case or other proceeding relating to any Borrower, any Guarantor
      or
      any of their respective Subsidiaries under any bankruptcy, reorganization,
      arrangement, insolvency, readjustment of debt, dissolution or liquidation or
      similar law of any jurisdiction, now or hereafter in effect, or shall take
      any
      action to authorize or in furtherance of any of the foregoing, or if any such
      petition or application shall be filed or any such case or other proceeding
      shall be commenced against any Borrower, any Guarantor or any of their
      respective Subsidiaries and (i) any Borrower, any Guarantor or any of their
      respective Subsidiaries shall indicate its approval thereof, consent thereto
      or
      acquiescence therein or (ii) any such petition, application, case or other
      proceeding shall continue undismissed, or unstayed and in effect, for a period
      of sixty (60) days; ;

    

                             (h)     a
      decree or order is entered appointing any trustee, custodian, liquidator or
      receiver or adjudicating any Borrower, any Guarantor or any of their respective
      Subsidiaries

    
      
        
        

      

      
        30

        
        

      

      
        
        

      

    

    bankrupt
      or insolvent, or approving a petition in any such case or other proceeding,
      or a
      decree or order for relief is entered in respect of any Borrower, any Guarantor
      or any of their respective Subsidiaries in an involuntary case under federal
      bankruptcy laws as now or hereafter constituted;

    

                             (i)     any
      of the Loan Documents or any material provision of any Loan Documents shall
      be
      cancelled, terminated, revoked or rescinded otherwise than in accordance with
      the terms thereof or with the express prior written agreement, consent or
      approval of the Bank any Guaranty shall be cancelled, terminated, revoked or
      rescinded at any time or for any reason whatsoever, or any action at law, suit
      or in equity or other legal proceeding to make unenforceable, cancel, revoke
      or
      rescind any of the Loan Documents shall be commenced by or on behalf of any
      Borrower or any of its Subsidiaries or any Guarantor or any of its Subsidiaries,
      or any court or any other governmental or regulatory authority or agency of
      competent jurisdiction shall make a determination that, or issue a judgment,
      order, decree or ruling to the effect that, any one or more of the Loan
      Documents is illegal, invalid or unenforceable as to any material terms
      thereof;

    

                             (j)     any
      "Event of Default" or default (after notice and expiration of any period of
      grace, to the extent provided, and if none is specifically provided, then for
      a
      period of thirty (30) days after notice), as defined or provided in any of
      the
      other Loan Documents, shall occur and be continuing;

    

    then,
      and in any such event, so long as the same may be continuing, the Bank may,
      by
      notice in writing to the Borrowers, declare all amounts owing with respect
      to
      this Term Loan Agreement, the Term Loan Note and the other Loan Documents to
      be,
      and they shall thereupon forthwith become, immediately due and payable without
      presentment, demand, protest or other notice of any kind, all of which are
      hereby expressly waived by each Borrower and each Guarantor; provided that
      in
      the event of any Event of Default specified in Section 9.01(g) or Section
      9.01(h), all such amounts shall become immediately due and payable automatically
      and without any requirement of notice from the Bank or action by the
      Bank.

    

              9.02     Termination
      of Commitments.  If any one or more Events of Default specified in
      Section 9.01(g) or Secton 9.01(h) shall occur, any obligation of the Bank to
      make the additional Term Loans hereunder shall forthwith terminate and the
      Bank
      shall be relieved of all obligations to make such additional Term Loans to
      the
      Borrowers. No such termination of the credit hereunder shall relieve any
      Borrower or any Guarantor of any of the Obligations or any of its existing
      obligations to the Bank arising under other agreements or
      instruments.

    

              9.03     Remedies.  In
      the event that one or more Events of Default shall have occurred and be
      continuing, whether or not the Bank shall have accelerated the maturity of
      the
      Term Loans pursuant to Section 9.01, the Bank if owed any amount with respect
      to
      the Term Loans proceeds to protect and enforce the rights and remedies of the
      Bank under this Term Loan Agreement, the Term Loan Note, any or all of the
      other
      Loan Documents or under applicable law by suit in equity, action at law or
      other
      appropriate proceeding (including for the specific performance of any covenant
      or agreement contained in this Term Loan Agreement or the other Loan Documents
      or any instrument pursuant to which the Obligations are evidenced and the
      obtaining

    
      
        
        

      

      
        31

        
        

      

      
        
        

      

    

    of
      the appointment of a receiver) and, if any amount shall have become due, by
      declaration or otherwise, proceed to enforce the payment thereof or any other
      legal or equitable right or remedy of the Bank under the Loan Documents or
      applicable law.  No remedy herein conferred upon the Bank or the
      holder of any Term Loan Note is intended to be exclusive of any other remedy
      and
      each and every remedy shall be cumulative and shall be in addition to every
      other remedy given hereunder or under any of the other Loan Documents or now
      or
      hereafter existing at law or in equity or by statute or any other provision
      of
      law.

    

              9.04     Distribution
      of Proceeds.  In the event that, following the occurrence or
      during the continuance of any Default or Event of Default, the Bank receives
      any
      monies from the Borrowers or in connection with the enforcement of any the
      Guaranties, such monies shall be distributed for application as
      follows:

    

                             (a)     First,
      to the payment of, or (as the case may be) the reimbursement of the Bank for
      or
      in respect of all reasonable costs, expenses, disbursements and losses which
      shall have been incurred or sustained by the Bank in connection with the
      collection of such monies by the Bank, for the exercise, protection or
      enforcement by the Bank of all or any of the rights, remedies, powers and
      privileges of the Bank under this Term Loan Agreement or any of the other Loan
      Documents or in support of any provision of adequate indemnity to the Bank
      against any taxes or liens which by law shall have, or may have, priority over
      the rights of the Bank to such monies;

    

                             (b)     Second,
      to all other Obligations in such order or preference as the Bank may
      determine;

    

                             (c)     Third,
      the excess, if any, shall be returned to the Borrowers or to such other Persons
      as are entitled thereto.

    

    ARTICLE
      10. Set Off.

    

              Borrowers
      and each Guarantor hereby grants to the Bank a continuing lien, security
      interest and right of setoff as security for all liabilities and obligations
      to
      the Bank, whether now existing or hereafter arising, upon and against all
      deposits, credits and property, now or hereafter in the possession, custody,
      safekeeping or control of the Bank and its successors and assigns or in transit
      to any of them. Without demand or notice to the extent permitted by applicable
      law, during the continuance of any Event of Default, any deposits (general
      or
      specific, time or demand, provisional or final, regardless of currency,
      maturity, or the branch at which such deposits are held, but specifically
      excluding tenant security deposits, other fiduciary accounts and other
      segregated escrow accounts required to be maintained by any of the Borrowers
      for
      the benefit of any third party) or other sums credited by or due from the Bank
      to any of the Borrowers or any other property of any of the Borrowers in the
      possession of the Bank may be applied to or set off against the payment of
      the
      Obligations.

    
      
        
        

      

      
        32

        
        

      

      
        
        

      

    

    ARTICLE
      11. Expenses.

    

              The
      Borrowers jointly and severally agree to pay (a) the reasonable fees, expenses
      and disbursements of the Bank's outside counsel or any local counsel to the
      Bank
      incurred in connection with the preparation, administration or interpretation
      of
      the Loan Documents and other instruments mentioned herein, each closing
      hereunder, and amendments, modifications, approvals, consents or waivers hereto
      or hereunder, (b) the fees, expenses and disbursements of the Bank incurred
      by
      the Bank in connection with the preparation, administration or interpretation
      of
      the Loan Documents and other instruments mentioned herein, any amendments,
      modifications, approvals, consents or waivers hereto or hereunder, or the
      cancellation of any Loan Document upon payment in full in cash of all of the
      Obligations or pursuant to any terms of such Loan Document for providing for
      such cancellation, including, without limitation, the fees and disbursements
      of
      the Bank's counsel in preparing the documentation, (c) all reasonable expenses
      (including reasonable attorneys' fees and costs, which attorneys may be
      employees of the Bank, and the fees and costs of appraisers, engineers,
      investment bankers, surveyors or other experts retained by the Bank in
      connection with any such enforcement proceedings) incurred by the Bank in
      connection with (i) the enforcement of or preservation of rights under any
      of
      the Loan Documents against any Borrower or any Guarantor or the administration
      thereof after the occurrence and during the continuance of a Default or Event
      of
      Default (including, without limitation, expenses incurred in any restructuring
      and/or "workout" of the Term Loans), and (ii) subject to the limitation set
      forth in Section 12 hereof, any litigation, proceeding or dispute whether
      arising hereunder or otherwise, in any way related to the Bank's relationship
      with any Borrower or any Guarantor, (d) all reasonable fees, expenses and
      disbursements of the Bank incurred in connection with UCC searches and (e)
      all
      costs incurred by the Bank in the future in connection with its inspection
      of
      the Unencumbered Properties after the occurrence and during the continuance
      of
      an Event of Default.  The covenants of this Section 11 shall survive
      payment or satisfaction of payment of amounts owing with respect to the Term
      Loan Note.

    

    ARTICLE
      12. Indemnification.

    

              The
      Borrowers jointly and severally agree to indemnify and hold harmless the Bank
      and the shareholders, directors, agents, counsel, professional advisors,
      officers, subsidiaries and Affiliates of the Bank (each group consisting of
      an
      Agent or a Lender and its respective shareholders, directors, agents, counsel,
      professional advisors, officers, subsidiaries and Affiliates being an
      "Indemnified Bank's Group") from and against any and all claims, actions and
      suits, whether groundless or otherwise, and from and against any and all
      liabilities, losses, settlement payments, obligations, damages and expenses
      of
      every nature and character, arising out of this Term Loan Agreement or any
      of
      the other Loan Documents or the transactions contemplated hereby or thereby
      or
      which otherwise arise in connection with the financing, including, without
      limitation, (a) any actual or proposed use by any Borrower of the proceeds
      of
      any of the Term Loans, (b) any Borrower or any Guarantor entering into or
      performing this Term Loan Agreement or any of the other Loan Documents or the
      transactions contemplated by this Term Loan Agreement or any of the other Loan
      Documents, or (c) pursuant to Section 6.17 hereof, in each case including,
      without limitation, the reasonable fees and disbursements of counsel and
      allocated costs of internal counsel incurred in connection with any such
      investigation, litigation or other proceeding, provided, however, that the
      Borrowers shall not be

    
      
        
        

      

      
        33

        
        

      

      
        
        

      

    

    obligated
      under this Article 12 to indemnify any Person for liabilities arising from
      the
      gross negligence or willful misconduct of such Person or of any other Person
      in
      the Indemnified Group of which such Person is a member (but such indemnification
      shall continue to apply to all other Persons).  Each Person to be
      indemnified under this Article 12 shall give the Borrowers notice of any claim
      as to which it is seeking indemnification under this Article 12 promptly after
      becoming aware of the same (which shall constitute notice for all Indemnified
      Group), but such Person's failure to give prompt notice shall not affect the
      obligations of the Borrowers under this Article 12 unless such failure
      prejudices the legal rights of the Borrowers regarding such
      indemnity.  In litigation, or the preparation therefor, the Borrowers
      shall be entitled to select counsel reasonably acceptable to the Bank, and
      the
      Bank shall be entitled to select their own supervisory counsel and, in addition
      to the foregoing indemnity, the Borrowers agree to pay promptly the reasonable
      fees and expenses of each such counsel if (i) in the reasonable opinion of
      the
      Bank, use of counsel of the Borrowers' choice could reasonably be expected
      to
      give rise to a conflict of interest, (ii) the Borrowers shall not have employed
      counsel reasonably satisfactory to the Bank within a reasonable time after
      notice of the institution of any such litigation or proceeding or (iii) the
      Borrower Representative authorizes the Bank to employ separate counsel at the
      Borrowers' expense.  If and to the extent that the obligations of the
      Borrowers under this Article 12 are unenforceable for any reason, the Borrowers
      hereby agree to make the maximum contribution to the payment in satisfaction
      of
      such obligations which is permissible under applicable law.  The
      provisions of this Article 12 shall survive the repayment of the Term Loans
      and
      the termination of the obligations of the Bank hereunder and shall continue
      in
      full force and effect as long as the possibility of any such claim, action,
      cause of action or suit exists.

    

    ARTICLE
      13. Survival of Covenants, Etc.

    

              All
      covenants, agreements, representations and warranties made herein, in the Term
      Loan Note, in any of the other Loan Documents or in any documents or other
      papers delivered by or on behalf of any Borrower or any of its Subsidiaries
      or
      any Guarantor pursuant hereto shall be deemed to have been relied upon by the
      Bank, notwithstanding any investigation heretofore or hereafter made by any
      of
      them, and shall survive the making by the Bank of any of the Term Loans, as
      herein contemplated, and shall continue in full force and effect so long as
      any
      amount due under this Term Loan Agreement or the Term Loan Note or any of the
      other Loan Documents remains outstanding.  The indemnification
      obligations of the Borrowers provided herein and in the other Loan Documents
      shall survive the full repayment of amounts due and the termination of the
      obligations of the Bank hereunder and thereunder to the extent provided herein
      and therein.

    

    ARTICLE
      14. Assignment

    

              This
      Term Loan Agreement and the other Loan Documents shall be binding upon the
      parties hereto and their respective successors and assigns and shall inure
      to
      the benefit of the parties hereto and their successors and permitted
      assigns.  Notwithstanding the foregoing, none of the Borrowers shall
      assign or transfer any of its rights or obligations under any of the Loan
      Documents without prior consent of the Bank (and any such attempted assignment
      or transfer by any Borrower without such consent shall be null and
      void).

    
      
        
        

      

      
        34

        
        

      

      
        
        

      

    

    ARTICLE
      15. Notices, Etc.

    

              Except
      as otherwise expressly provided in this Term Loan Agreement, all notices and
      other communications made or required to be given pursuant to this Term Loan
      Agreement or the Term Loan Note shall be in writing and shall be delivered
      in
      hand, mailed by United States registered or certified first class mail, postage
      prepaid, sent by overnight courier, or sent by facsimile and confirmed by
      delivery via courier or postal service, addressed as follows:

    

                             (a)     if
      to any Borrower or any Guarantor, to the Borrower Representative at Sovran
      Self
      Storage, Inc., 6467 Main Street, Buffalo, New York 14221, Attention: Mr. David
      L. Rogers, Chief Financial Officer, with a copy to Phillips Lytle LLP, One
      HSBC
      Center, Buffalo, New York 14203, Attention: Raymond H. Seitz, Esq., or to such
      other address for notice as the Borrower Representative or any Guarantor shall
      have last furnished in writing to the Bank;

    

                             (b)     if
      to the Bank, at Manufacturers and Traders Trust Company, One M&T Plaza,
      Buffalo, New York 14203, Attention: Susan Freed-Oestreicher, Vice President,
      or
      such other address for notice as the Bank shall have last furnished in writing
      to the Borrowers, with a copy to William E. Mathias, Esq., Lippes Mathias Wexler
      Friedman LLP, 665 Main Street, Ste. 300, Buffalo, New York 14203, or at such
      other address for notice as the Bank shall last have furnished in writing to
      the
      Person giving the notice;.

    

              Any
      such notice or demand shall be deemed to have been duly given or made and to
      have become effective (i) if delivered by hand, overnight courier or facsimile
      to the party to which it is directed, at the time of the receipt thereof by such
      party or the sending of such facsimile with electronic confirmation of receipt
      and (ii) if sent by registered or certified first-class mail, postage prepaid,
      on the fifth Business Day following the mailing thereof.

    

    ARTICLE
      16. Miscellaneous.

    

                             (a)     Governing
      Law, Consent to Jurisdiction and Service.  THIS TERM LOAN
      AGREEMENT AND EACH OF THE OTHER LOAN DOCUMENTS, EXCEPT AS OTHERWISE SPECIFICALLY
      PROVIDED THEREIN, ARE CONTRACTS UNDER THE LAWS OF THE STATE OF NEW YORK AND
      SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
      LAWS
      OF THE STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE
      OF LAW). EACH OF THE BORROWERS AND THE GUARANTORS AGREES THAT ANY SUIT FOR
      THE
      ENFORCEMENT OF THIS TERM LOAN AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS
      MAY
      BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN BUFFALO, NEW YORK
      OR ANY FEDERAL COURT SITTING IN THE WESTERN DISTRICT OF NEW YORK, AND CONSENTS
      TO THE NON-EXCLUSIVE JURISDICTION OF SUCH COURTS AND THE SERVICE OF PROCESS
      IN
      ANY SUCH SUIT BEING MADE UPON THE BORROWERS OR THE GUARANTORS BY MAIL AT THE
      ADDRESS SPECIFIED IN ARTICLE 15.  THE BORROWERS AND EACH OF THE
      GUARANTORS HEREBY WAIVES ANY OBJECTION THAT EITHER OF THEM MAY NOW OR HEREAFTER
      HAVE TO THE VENUE OF ANY

    
      
        
        

      

      
        35

        
        

      

      
        
        

      

    

    SUCH
      SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT
      COURT.

    

              16.02     Headings.  The
      captions in this Term Loan Agreement are for convenience of reference only
      and
      shall not define or limit the provisions hereof.

    

              16.03     Counterparts.  This
      Term Loan Agreement and any amendment hereof may be executed in several
      counterparts and by each party on a separate counterpart, each of which when
      so
      executed and delivered shall be an original, and all of which together shall
      constitute one instrument.  In proving this Term Loan Agreement it
      shall not be necessary to produce or account for more than one such counterpart
      signed by the party against whom enforcement is sought. Delivery of an executed
      counterpart of a signature page of this Term Loan Agreement by telecopy shall
      be
      effective as delivery of a manually executed counterpart of this Term Loan
      Agreement.

    

              16.04     Entire
      Agreement, Etc.  The Loan Documents and any other documents
      executed in connection herewith or therewith express the entire understanding
      of
      the parties with respect to the transactions contemplated hereby and supersede
      any and all previous agreements and understandings, oral or written, relating
      to
      the transactions contemplated hereby.  Neither this Term Loan
      Agreement nor any term hereof may be changed, waived, discharged or terminated,
      except as provided in Section 16.06

    

              16.05     Waiver
      of Jury Trial and Certain Damage Claims.  EXCEPT TO THE EXTENT
      EXPRESSLY PROHIBITED BY LAW. EACH OF THE BORROWERS. EACH OF THE GUARANTORS,
      THE
      BANK HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS RESPECTIVE
      RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY
      DISPUTE IN CONNECTION WITH THIS TERM LOAN AGREEMENT, THE TERM LOAN NOTE OR
      ANY
      OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER
      OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS OR ANY COURSE OF CONDUCT,
      COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY
      PARTY.  EXCEPT TO THE EXTENT EXPRESSLY PROHIBITED BY LAW, EACH OF THE
      BORROWERS AND EACH OF THE GUARANTORS HEREBY KNOWINGLY, VOLUNTARILY AND
      INTENTIONALLY WAIVES ANY RIGHT ANY OF THEM MAY HAVE TO CLAIM OR RECOVER IN
      ANY
      LITIGATION REFERRED TO IN THE PRECEDING SENTENCE ANY SPECIAL, EXEMPLARY,
      PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION
      TO,
      ACTUAL DAMAGES. EACH OF THE BORROWERS AND THE GUARANTORS (A) CERTIFIES THAT
      NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY LENDER OR THE AGENT HAS REPRESENTED,
      EXPRESSLY OR OTHERWISE, THAT SUCH LENDER OR THE AGENT WOULD NOT, IN THE EVENT
      OF
      LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (B) ACKNOWLEDGE THAT
      THE
      AGENT AND THE BANK HAVE BEEN INDUCED TO ENTER INTO THIS TERM LOAN AGREEMENT
      AND
      THE OTHER LOAN DOCUMENTS TO WHICH THEY ARE PARTIES

    
      
        
        

      

      
        36

        
        

      

      
        
        

      

    

    BY,
      AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED
      HEREIN.

    

              16.06     Consents,
      Amendments. Waivers, Etc.  Except as otherwise expressly provided
      in this Term Loan Agreement, any consent or approval required or permitted
      by
      this Term Loan Agreement may be given, and any term of this Term Loan Agreement
      or of any of the other Loan Documents may be amended, and the performance or
      observance by any Borrower or any Guarantor of any terms of this Term Loan
      Agreement or the other Loan Documents or the continuance of any default, Default
      or Event of Default may be waived (either generally or in a particular instance
      and either retroactively or prospectively) with, but only with, the written
      consent of the Bank.

    

    No
      waiver shall extend to or affect any obligation not expressly waived or impair
      any right consequent thereon.  No course of dealing or delay or
      omission on the part of the Bank in exercising any right shall operate as a
      waiver thereof or otherwise be prejudicial to such right or any other rights
      of
      the Bank.  No notice to or demand upon any Borrower shall entitle any
      Borrower to other or further notice or demand in similar or other
      circumstances.

    

              16.07     Severability.  The
      provisions of this Term Loan Agreement are severable, and if any one clause
      or
      provision hereof shall be held invalid or unenforceable in whole or in part
      in
      any jurisdiction, then such invalidity or unenforceability shall affect only
      such clause or provision, or part thereof, in such jurisdiction, and shall
      not
      in any manner affect such clause or provision in any other jurisdiction, or
      any
      other clause or provision of this Term Loan Agreement in any
      jurisdiction.

    

              16.08     USA
      Patriot Act Notice.  The Bank is subject to the Act (as
      hereinafter defined) and hereby notifies the Borrowers that pursuant to the
      requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
      law October 26,2001)) (the "Act"), it is required to obtain, verify and
      record information that identifies the Borrowers, which information includes
      the
      names and addresses of the Borrowers and other information that will allow
      the
      Bank, as applicable, to identify the Borrowers in accordance with the
      Act.

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    

    
      
        
        

      

      
        37

        
        

      

      
        
        

      

    

              IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
      by
      their duly authorized officers, all as of the 12th day of September,
      2007.

    

    

    
      	 	
              MANUFACTURERS
                AND TRADERS TRUST

              COMPANY

               

              By:_______________________________________

              Name:  Susan
                Freed-Oestreicher

              Title:  Vice
                President

               

            
	 	 
	
              SOVRAN
                SELF STORAGE, INC.

               

               

              By:________________________________

              Name:  Name:
                David L. Rogers

              Title:  Chief
                Financial Officer

               

               

               

            	 
	 	 
	
              SOVRAN
                ACQUISITION LIMITED PARTNERSHIP

               

              By:
                SOVRAN HOLDINGS, INC., its General Partner

               

               

              By:_________________________________

              Name:  Name:
                David L. Rogers

              Title:  Chief
                Financial Officer

               

            

    

    

    
      
        
        

      

      
        38

        
        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    

    TERM
      LOAN NOTE

    

    

    
      	
              $25,000,000.00

            	
              September
                __, 2007

            

    

    

    

              FOR
      VALUE RECEIVED, the undersigned SOVRAN SELF STORAGE, INC., a Maryland
      corporation ("Sovran"), and the undersigned SOVRAN ACQUISITION LIMITED
      PARTNERSHIP, a Delaware limited partnership ("SALP" and together with Sovran,
      collectively referred to herein as the "Borrowers" and individually as a
      "Borrower"), hereby jointly and severally promise to pay to the order of
      MANUFACTURERS AND TRADERS TRUST COMPANY, (the "Bank") at the Bank's Principal
      Office (as defined in the Term Loan Agreement defined below):

    

              (a)     prior
      to or on the Maturity Date, the principal amount of Twenty-Five Million Dollars
      ($25,000,000.00) or, if less, the aggregate unpaid principal amount of all
      Term
      Loans advanced by the Bank to the Borrower pursuant to the Term Loan Agreement
      dated as of September __, 2007 (as amended and in effect from time to time,
      the
      "Term Loan Agreement") between the Bank and the Borrowers; and

    

              (b)     interest
      from the date hereof on the principal balance hereof from time to time
      outstanding at the times and at the rate or rates provided in the Term Loan
      Agreement and any other sums or fees due thereunder, all in accordance with
      the
      Term Loan Agreement.

    

              This
      Term Loan Note evidences borrowings under and has been issued by the Borrowers
      in accordance with the terms of the Term Loan Agreement.  The Bank and
      any holder hereof pursuant to the Term Loan Agreement or by operation of law
      is
      entitled to the benefits of the Term Loan Agreement and the other Loan
      Documents, and may enforce the agreements of the Borrowers contained therein,
      and any holder hereof may exercise the respective remedies provided for thereby
      or otherwise available in respect thereof, all in accordance with the respective
      terms thereof.  All capitalized terms used in this Tern Loan Note and
      not otherwise defined herein shall have the same meanings herein as in the
      Term
      Loan Agreement.

    

              The
      Borrowers irrevocably authorize the Bank to make or cause to be made, at or
      about the time of advance of the Term Loans or at the time of receipt of any
      payment of principal of this Term Loan Note, an appropriate notation on the
      grid
      attached to this Term Loan Note, or the continuation of such grid, or any other
      similar record, including computer records, reflecting the making of such Term
      Loan or (as the case may be) the receipt of such payment.  The
      outstanding amount of the Term Loans set forth on the grid attached to this
      Term
      Loan Note, or the continuation of such grid, or any other similar record,
      including computer records, maintained by the Bank with respect to the Term
      Loans shall be prima facie evidence of the principal amount thereof owing and
      unpaid to the Bank, but the failure to record, or any error in so recording,
      any

    
      
        
        

      

      
        39

        
        

      

      
        
        

      

    

    such
      amount on any such grid, continuation or other record shall not limit or
      otherwise affect the obligation of the Borrowers hereunder or under the Term
      Loan Agreement to make payments of principal of and interest on this Term Loan
      Note when due to the extent of the unpaid principal and interest amount as
      of
      any date of determination.

    

              The
      Borrowers have the right in certain circumstances and the obligation under
      certain other circumstances to prepay the whole or part of the principal of
      this
      Term Loan Note on the terms and conditions specified in the Term Loan
      Agreement.

    

              If
      any one or more of the Events of Default shall occur, the entire unpaid
      principal amount of this Term Loan Note and all of the unpaid interest accrued
      thereon and any other charges or amounts due under any of the Loan Documents
      may
      become or be declared due and payable in the manner and with the effect provided
      in the Term Loan Agreement.

    

              No
      delay or omission on the part of the Bank, or any holder hereof in exercising
      any right hereunder shall operate as a waiver of such right or of any other
      rights of the Bank or such holder, nor shall any delay, omission or waiver
      on
      any one occasion be deemed a bar or waiver of the same or any other right on
      any
      further occasion.

    

              The
      Borrowers and every endorser and guarantor of this Term Loan Note or the
      obligations represented hereby waives presentment, demand, notice, protest
      and
      all other demands and notices in connection with the delivery, acceptance,
      performance, default or enforcement of this Term Loan Note, and assents to
      any
      extension or postponement of the time

    of
      payment or any other indulgence, to any substitution, exchange or release of
      collateral and to

    the
      addition or release of any other party or person primarily or secondarily
      liable.

    

              THIS
      TERM LOAN NOTE AND THE OBLIGATIONS OF THE BORROWERS HEREUNDER SHALL FOR ALL
      PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE
      OF
      NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW). EACH
      OF
      THE BORROWERS AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS TERM LOAN NOTE
      MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN BUFFALO, NEW
      YORK OR ANY FEDERAL COURT SITTING IN THE WESTERN DISTRICT OF NEW YORK AND
      CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS AND THE SERVICE OF
      PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWERS BY MAIL AT THE ADDRESS
      SPECIFIED IN THE TERM LOAN AGREEMENT.  EACH OF THE BORROWERS HEREBY
      WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY
      SUCH
      SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT
      COURT.

    
      
        
        

      

      
        40

        
        

      

      
        
        

      

    

              IN
      WITNESS WHEREOF, each of the undersigned has caused this Term Loan Note to
      be
      executed in its corporate or partnership name by its duly authorized officer
      as
      of the day and year first above written.

    

    
      	 	
              SOVRAN
                SELF STORAGE, INC.

              By:_________________________________

              Name:  David
                L. Rogers

              Title:  Chief
                Financial Officer

            
	 	 
	 	
              SOVRAN
                ACQUISITION LIMITED

                   PARTNERSHIP

               

              By:
                Sovran Holdings, Inc., its general partner

               

               

              By:_________________________________

              Name:  David
                L. Rogers

              Title:  Chief
                Financial Officer

            

    

    

    

    

    

    
      
        
        

      

      
        41

        
        

      

      
        
        

      

    

    

    

    
      	
               

               

              Date

            	
               

              Amount
                of Term

              Loan

            	
               

              Amount
                of Principal

              Paid
                or Prepaid

            	
               

              Balance
                of

              Principal
                Unpaid

            	
               

              Notation
                Made

              By:

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    

    

    
      
        
        

      

      
        42

        
        

      

      
        
        

      

    

    
      	 	 	
                                            Exhibit
                B

            

    

    

    [FORM
      OF SUBSIDIARY GUARANTY]

    GUARANTY

    

    Guaranty,
      dated as of September, 2007 by SOVRAN HOLDINGS, INC., a Delaware corporation
      (the "Guarantor"), in favor of Manufacturers and Traders Trust Company, a New
      York banking corporation, (together with its successors and assigns, the "Bank")
      which is a party to the Term Loan Agreement dated as of January 19, 2006 between
      Sovran Self Storage, Inc., a Maryland corporation ("Sovran") and Sovran
      Acquisition Limited Partnership, a Delaware limited partnership (together with
      Sovran, collectively referred to herein as the "Borrowers") and the Bank, as
      the
      same may hereafter be amended from time to time (the "Term Loan Agreement").
      Capitalized terms used herein without definition shall have the meanings
      ascribed to them in the Term Loan Agreement

    

              WHEREAS,
      the Borrowers and the Bank have entered into the Term Loan
      Agreement;

    

              WHEREAS,
      the Borrowers and the Guarantor are members of a group of related entities,
      the
      success of either one of which is dependent in part on the success of the other
      members of such group;

    

              WHEREAS,
      the Guarantor expects to receive substantial direct and indirect benefits from
      the extensions of credit to the Borrowers by the Bank pursuant to the Term
      Loan
      Agreement (which benefits are hereby acknowledged);

    

              WHEREAS,
      it is a condition precedent to the Bank's willingness to extend, and to continue
      to extend, credit to the Borrowers under the Term Loan Agreement that the
      Guarantor execute and deliver this Guaranty; and

    

              WHEREAS,
      the Guarantor wishes to guaranty the Borrowers' obligations to the Bank under
      and "in respect of the Term Loan Agreement as herein provided.

    

              NOW,
      THEREFORE, in consideration of the foregoing, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereby agree as follows:

    

              1.     Guaranty
      of Payment and Performance of Obligations.  In consideration of
      the Bank's extending credit or otherwise in its discretion giving accommodations
      to the Borrowers, the Guarantor hereby unconditionally guarantees to the B&
that the Borrowers will duly and punctually pay or perform, at the place
      specified therefor, or if no place is specified, at the Bank's Principal Office,
      (i) all indebtedness, obligations and liabilities of the Borrowers to the Bank,
      individually or collectively, under the Term Loan Agreement or any of the other
      Loan Documents or in respect of any of the Term Loans or the Term Loan Note
      or
      other instruments at any time evidencing any thereof, whether existing on the
      date of the Term Loan Agreement or arising or incurred thereafter, direct or
      indirect, secured or unsecured, joint or several, absolute or contingent,
      matured or unmatured, liquidated or unliquidated, arising by contract, operation
      of

    
      
        
        

      

      
        43

        
        

      

      
        
        

      

    

    law
      or otherwise; and (ii) without limitation of the foregoing, all reasonable
      fees,
      costs and expenses incurred by the Bank in attempting to collect or enforce
      any
      of the foregoing, accrued in each case to the date of payment hereunder
      (collectively the "Obligations" and individually an "Obligation"). This Guaranty
      is an absolute, unconditional and continuing guaranty of thefull and punctual
      payment and performance by the Borrowers of the Obligations and not of their
      collectibility only and is in no way conditioned upon any requirement that
      the
      Bank first attempt to collect any of the Obligations from the Borrowers or
      resort to any security or other means of obtaining payment of any of the
      Obligations which the Bank now has or may acquire after the date hereof or
      upon
      any other contingency whatsoever:  Upon any Event of Default which is
      continuing by the Borrowers in the full and punctual payment and performance
      of
      the Obligations, the liabilities and obligations of the Guarantor hereunder
      shall, at the option of the Bank, become forthwith due and payable to the Bank
      without demand or notice of any nature, all of which are expressly waived by
      the
      Guarantor, except for notices required to be given to the Borrowers, under
      the
      Loan Documents. Payments by the Guarantor hereunder may be required by the
      Bank
      on any number-of occasions.

    

              2.     Guarantor's
      Further Agreements to Pay.  The Guarantor further agrees, as the
      principal obligor and not as a guarantor only, to pay to the Bank forthwith
      upon
      demand, in funds immediately available to the Bank, all costs and expenses
      (including court costs and legal fees and expenses) incurred or expended by
      the
      Bank in connection with this Guaranty, and the enforcement hereof, together
      with
      interest on amounts recoverable under this Guaranty from the time after such
      amounts become due at the default rate of interest set forth in the Term Loan
      Agreement; provided that if such interest exceeds the maximum amount permitted
      to be paid under applicable law, then such interest shall be reduced to such
      maximum permitted amount.

    

              3.     Payments.  The
      Guarantor covenants and agrees that the Obligations will be paid strictly in
      accordance with, their respective terms regardless of any law, regulation or
      order now or hereafter in effect in any jurisdiction affecting any of such
      terms
      or the rights of the Bank with respect thereto.  Without limiting the
      generality of the foregoing, the Guarantor's obligations hereunder with respect
      to any Obligation shall not be discharged by a payment in a currency other
      than
      the currency in which the Obligation is denominated (the "Obligation
      Currency") or at a place other than the place specified for the payment of
      the Obligation, whether pursuant to a judgment or otherwise, to the extent
      that
      the amount so paid on conversion to the Obligation Currency and transferred
      to
      the Bank's Principal Office, under normal banking procedures does not yield
      the
      amount of Obligation Currency due thereunder.

    

              4.     Taxes.  All
      payments hereunder shall be made without any counterclaim or setoff, free and
      clear of, and without reduction by reason of, any taxes, levies, imposts,
      charges and withholdings, restrictions or conditions of any nature ("Taxes"),
      which are now or may hereafter be imposed, levied or assessed by the United
      States or any political subdivision or taxing authority thereof (or any
      non-United States jurisdiction in which there is Real Estate) on payments
      hereunder, all of which will be for the account of and paid by the
      Guarantor.  Subject to paragraph (b), if for any reason, any such
      reduction is made or any Taxes are paid by the Bank (except for taxes on income
      or profits of the Bank), Guarantor will pay to the Bank such additional amounts
      as may be necessary to ensure that the Bank receives the same net amount which
      it would have received had no reduction been made or Taxes
      paid.

    
      
        
        

      

      
        44

        
        

      

      
        
        

      

    

    

              5.     Consent
      to Jurisdiction.  The Guarantor agrees that any suit for the
      enforcement of this Guaranty or any of the other Loan Documents may be brought
      in the courts of the State of New York sitting in Buffalo, New York or any
      federal court sitting in the Western District of New York and consents to the
      non-exclusive jurisdiction of such courts and the service of process in any
      such
      suit being made upon the Guarantor by mail at the address specified
      herein.  Except to the extent such waiver is expressly prohibited by
      law, the Guarantor hereby waives any objection that it may now or hereafter
      have-to the venue of any such suit or any such court or that such suit is
      brought in an inconvenient,court.

    

              6.     Liability
      of the Guarantor.  The Bank shall have the absolute right to
      enforce the liability of the Guarantor hereunder without resort to any other
      right or remedy including any right or remedy under any other guaranty, and
      the
      release or discharge of any guarantor of any Obligations shall not affect the
      continuing liability of the Guarantor hereunder.

    

              7.     Representations
      and Warranties; Covenants.  The Guarantor hereby makes and
      confirms the representations and warranties made on its behalf by the Borrowers
      pursuant to Article 5 of the Term Loan Agreement, as if such representations
      and
      warranties were set forth herein.  The Guarantor hereby agrees to
      perform the covenants set forth in Article 6 of the Term Loan Agreement (to
      the
      extent such covenants expressly apply to the Guarantor) as if such covenants
      were set forth herein.  The Guarantor acknowledges that it, is, on a
      collective basis with the Borrowers and all other "Guarantors" (as defined
      in
      the Term Loan Agreement), bound by the covenants set forth in Article 6 of
      the
      Term Loan Agreement.  The Guarantor hereby confirms that it shall be
      bound by all acts or omissions of the Borrower Representative pursuant to the
      Term Loan Agreement.

    

              8.     Effectiveness.  The
      obligations of the Guarantor under this Guaranty shall continue in full force
      and effect and shall remain in operation until all of the Obligations shall
      have
      been paid in full or otherwise fully satisfied, and continue to be effective
      or
      be reinstated, as the case may be, if at any time payment or other satisfaction
      of any of the Obligations is rescinded or must otherwise be restored or returned
      upon the bankruptcy, insolvency, or reorganization of the Borrowers, or
      otherwise, as though such payment had not been made or other satisfaction
      occurred.  No invalidity, irregularity or unenforceability of the
      Obligations by reason of applicable bankruptcy laws, or any other similar law,
      or by reason of any law or order of any government or agency thereof pdrporting
      to reduce, amend or otherwise affect the Obligations, shall impair, affect,
      be a
      defense to or claim against the obligations of the Guarantor under this
      Guaranty.

    

              9.     Freedom
      of Lender to Deal with Borrowers and Other Parties.  The Bank
      shall be at liberty, without giving notice to or obtaining the assent of the
      Guarantor and without relieving the Guarantor of any liability hereunder, to
      deal with the Borrowers and with each other party who now is or after the date
      hereof becomes liable in any manner for any of the Obligations; in such manner
      as the Bank in its sole discretion deems fit, and to this end the Guarantor
      gives to the Bank full authority in its sole discretion to do any or all of
      the
      following things: (a) extend credit, make loans and afford other financial
      accommodations-to the Borrowers at such times, in such amounts and on such
      terms
      as the Bank may approve, (b) vary the, terms and grant

    
      
        
        

      

      
        45

        
        

      

      
        
        

      

    

    extensions
      of any present or future indebtedness or obligation of the Borrowers or of
      any
      other party to the Bank, (c) grant time, waivers and other indulgences in
      respect thereto, (d) vary, exchange, release or discharge, wholly or partially,
      otdelay in or abstain from perfecting and enforcing any security or guaranty
      or
      other means of obtaining payment of any of the Obligations which, the Bank
      now
      has or may acquire after the date hereof, (e) accept partial payments from
      the
      Borrowers or any such other party, (f) release or discharge, wholly or
      partially, any endorser or guarantor, and (g) compromise or make any settlement
      or other arrangement with the Borrowers or any such other party.

    

              10.     Unenforceability
      of Obligations Against Borrowers; Invalidity of Security or Other
      Guaranties.  If for any reason the Borrowers have no legal
      existence or are under no legal obligation to discharge any of the Obligations
      undertaken or purported to be undertaken by it or on its behalf or if any of
      the
      moneys included in the Obligations have become irrecoverable from the Borrowers
      by operation of law or for any other reason, this Guaranty shall nevertheless
      be
      binding on the Guarantor to the same extent as if the Guarantor at all times
      had
      been the principal debtor on all such Obligations.  This Guaranty
      shall be in addition to any other guaranty or other security for the
      Obligations, and it shall not be prejudiced or rendered unenforceable by the
      invalidity of any such other guaranty or security.

    

              11.     Waivers
      by Guarantor.  The Guarantor waives: notice of acceptance hereof,
      notice of any action taken or omitted by the Bank in reliance hereon, and any
      requirement that the Bank be diligent or prompt in making demands hereunder,
      giving notice of any default by the Borrowers or asserting any other rights
      of
      the Bank or any Lender hereunder.  The Guarantor also irrevocably
      waives, to the fullest extent permitted by law, all defenses in the nature
      of
      suretyship that at any line may be available in respect of the Guarantor's
      obligations hereunder by virtue of any statute of limitations, valuation, stay,
      moratorium law or other similar law now or hereafter in effect.

    

              12.     Waiver
      of Subrogation Rights.  Notwithstanding any other provision to the
      contrary contained herein or provided by applicable law, unless and until all
      of
      the Obligations have been indefeasibly paid in full in cash and satisfied (in
      full, the Guarantor hereby irrevocably waives any and all rights it may have
      at
      any time (whether arising directly or indirectly, by operation of law or by
      contract) to assert any claim against the Borrowers on account of payments
      made
      under this Guaranty, including, without limitation, any and all rights of or
      claims for subrogation, contribution, reimbursement, exoneration and indemnity,
      and further waives any benefit of and any right to participate in any collateral
      which may be held by the Bank or any affiliate of the Bank. In addition, the
      Guarantor will not claim any set-off or counterclaim against the Borrowers
      in,
      respect of any liability it may have to the Borrowers unless and until all
      of
      the Obligations have been jndefeasibly paid in full in cash and satisfied in
      full.

    

              13.     Demands.  Any
      demand on or notice made or required to be given pursuant to this Guaranty
      shall
      be in writing and shall be delivered in hand, mailed by United States registered
      or certified first class mail, postage prepaid, return receipt requested, sent
      by overnight courier, or sent by telegraph, telecopy, telefax or telex and
      confirmed by delivery via courier or postal service, addressed as
      follows:

    
      	 	
              (a)

            	
              if
                to the Guarantor, at

               

              Sovran
                Self Storage, Inc.

              6467
                Main Street

              Buffalo,
                New York 14221

              Attention:
                Mr. David L. Rogers

            	 

    

    

    or
      at such other address for notice as the Guarantor shall last have furnished
      in
      writing to the Bank with a copy to:

    

    
      	 	 	
              Phillips
                Lytle LLP

              One
                HSBC Center

              Buffalo,
                New York 14203

              Attention:
                Raymond H. Seitz, Esq.

            	 

    

    

    or
      at such other address for notice as the Guarantor shall last have furnished
      in
      writing to the Bank; and

    

    
      	 	
              (b)

            	
              if
                to the Bank, at

               

              Manufacturers
                and Traders Trust Company

              One
                M&T Plaza

              Buffalo,
                New York 124203

              Attention:
                Susan Freed-Oestreicher, Vice
                President

            

    

    

    or
      such other address for notice as the Bank shall last have furnished in writing
      to the Guarantor, with a copy to:

    

    
      	 	 	
              Lippes
                Mathias Wexler Friedman LLP

              665
                Main Street, Ste. 300

              Buffalo,
                New York 14203

              Attention:
                William E. Mathias, Esq.

            

    

    

                                                  or
      at such other address for notice as the Bank shall last have furnished in
      writing to the Guarantor.

    

    Any
      such notice or demand shall be deemed to have been duly given or made and to
      have become effective (i) if delivered by hand, overnight courier or facsimile
      to the party to which it is directed, at the time of the. receipt thereof by
      such party or the sending of such facsimile with electronic confirmation of
      receipt or (ii) if sent by registered or certified first-class mail, postage
      prepaid, return receipt requested, on the fifth Business Day following the
      mailing thereof.

    

              14.     Amendments,
      Waivers, Etc.  No provision of this Guaranty can be changed,
      waived, discharged or terminated except by an instrument in writing signed
      by
      the Bank and the Guarantor expressly referring to the provision of this Guaranty
      to which such instrument relates; and no such waiver shall extend to, affect
      or
      impair any right with respect to any Obligation which is not expressly dealt
      with therein. No course of dealing or delay or omission on the
      part

    
      
        
        

      

      
        46

        
        

      

      
        
        

      

    

    of
      the Bank in exercising any right shall operate as &waiver thereof or
      otherwise be prejudicial thereto.

    

              15.     Further
      Assurances.  The Guarantor at its sole cost and expense agrees to
      do all such things and execute, acknowledge and deliver all such documents
      and
      instruments as the Bank from time to time may reasonably request in order to
      give frill effect to this Guaranty and to perfect and preserve the rights and
      powers of the Bank hereunder.

    

              16.     Miscellaneous
      Provisions.  This Guaranty is intended to take effect as a sealed
      instrument to be governed by and construed in accordance with the laws of the
      State of New York and shall inure to the benefit of the Bank and its respective
      successors and assigns, and shall be binding on the Guarantor and the
      Guarantor's successors in title, assigns and legal
      representatives.  The rights and remedies herein provided are
      cumulative and not exclusive of any remedies provided by law or any other
      agreement.  The invalidity or unenforceability of any one or more
      sections of this Guaranty shall not affect the validity or enforceability of
      its
      remaining provisions.  Captions are for ease of reference only and
      shall not affect the meaning of the relevant provisions.  The meanings
      of all defined terms used in this Guaranty shall be equally applicable to the
      singular and plural forms of the terms defined.

    

              17.     WAIVER
      OF JURY TRIAL.  EXCEPT TO THE EXTENT SUCH WAIVER IS EXPRESSLY
      PROHIBITED BY LAW, THE GUARANTOR HEREBY IRREVOCABLY WAIVES TRIAL BY JURY IN
      ANY
      JURISDICTION AND IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING
      OUT OF THIS GUARANTY, THE OBLIGATIONS, OR ANY INSTRUMENT OR DOCUMENT DELIVERED
      PURSUANT HERETO OR THERETO OR ANY OTHER CLAIM OR DISPUTE HOWSOEVER ARISING,
      AMONG THE GUARANTOR, THE BORROWERS, AND THE BANK.  THIS WAIVER OF JURY
      TRIAL SHALL BE EFFECTIVE FOR EACH AND EVERY DOCUMENT EXECUTED BY THE GUARANTOR
      AND DELIVERED TO THE BANK, AS THE CASE MAY BE, WHETHER OR NOT SUCH DOCUMENTS
      SHALL CONTAIN SUCH A WAIVER OF JURY TRIAL. THE GUARANTOR CONFIRMS THAT: THE
      FOREGOING WAIVERS ARE INFORMED AND FREELY MADE.

    

              IN
      WITNESS WHEREOF, the Guarantor has executed and delivered this Guaranty as
      of
      the date first above written.

    

    
      	 	
              GUARANTOR

               

              SOVRAN
                HOLDINGS, INC.

               

               

              By:________________________________

              Name:  David
                L. Rogers

              Title:  Chief
                Financial Officer

            

    

    

    

    
      
        
        

      

      
        47

        
        

      

      
        
        

      

    

    

    EXHIBIT
      C

    

    COMPLIANCE
      CERTIFICATE

    FOR
      CHIEF FINANCIAL OFFICERS

    

              Each
      of the undersigned, being the Chief Financial Officers of Sovran Self Storage,
      Inc. ("Sovran") and Sovran Acquisition Limited Partnership ("SALP" and together
      with Sovran, collectively referred to herein as the "Borrowers"), HEREBY
      CERTIFIES THAT:

    

              This
      Compliance Certificate is furnished pursuant to Section 7.12 of the Term Loan
      Agreement dated as of September 12, 2007 between Manufacturers and Traders
      Trust
      Company and the Borrowers (as the same may now or hereafter be amended from
      time
      to time, the "Term Loan Agreement").  Unless otherwise defined herein,
      the terms used in this Compliance Certificate and attached hereto have the
      meanings given them in the Term Loan Agreement.

    

              Each
      of the Chief Financial Officers hereby certifies, in accordance with the
      provisions of Section 7.12 of the Term Loan Agreement, that

    

              (1)     The
      representations and warranties of the Borrowers contained in the Term Loan
      Agreement and in each document and instrument delivered pursuant to or in
      connection therewith are true and correct as of the date hereof and that no
      Default or Event of Default has occurred and is continuing on the date
      hereof;

    

              (2)     The
      Borrowers are in compliance with the terms of the Term Loan Agreement and no
      "Default" or "Event of Default" (as defined in the Term Loan Agreement) has
      occurred and is continuing as of the date hereof; and

    

              (3)     None
      of the Subsidiaries of either of the Borrowers owns an Unencumbered
      Property.

    

              (4)     Each
      of the Chief Financial Officers is authorized to execute and deliver this
      Compliance Certificate on behalf of Sovran or SALP, as the case may
      be.

    

              Executed
      as of this _____ day of ________________, 2007.

    

    
      	
              SOVRAN
                SELF STORAGE, INC.

               

               

               

               

              By:_________________________________

              Name:  David
                L. Rogers

              Title:  Chief
                Financial Officer

            	
              SOVRAN
                ACQUISITION LIMITED

              PARTNERSHIP

               

              By:
                Sovran Holdings Inc., its general partner

               

              By:_________________________________

              Name:  David
                L. Rogers

              Title:  Chief
                Financial Officer

            
	 	 

    

    

    
      
        
        

      

      
        48

        
        

      

      
        
        

      

    

    

    Schedule
      1

    

    Pension
      Plans

    

    

    Sovran
      401K Plan

    

    

    
      
        
        

      

      
        49

        
        

      

      
        
        

      

    

    Schedule
      5.07

    

    Litigation

    

    

    
      	
              1.

            	
              Maria
                Brennan v. Uncle Bob's Self
                Storage

            

    

    

    Maria
      Brennan, a former employee at the Alvin, Texas store, filed a charge with the
      Equal Employment Opportunity Commission (the "EEOC") in Houston, Texas on
      November 2, 2006, alleging that she had been subject to a hostile work
      environment because of her sex. Sovran Acquisition Limited Partnership responded
      to the EEOC charge and the EEOC is investigating.

    

    
      	
              2.

            	
              Kelly
                Evans v. Sovran Self Storage,
                Inc.

            

    

    

    Plaintiff
      obtained a right to sue letter from the EEOC and filed an action in Texas state
      court on May 9, 2007, alleging that she was subject to a sexually hostile work
      environment while working as an Assistant Manager.  The case was
      removed to the US. District Court for the Western District of Texas on June
      22,2007.  The complaint seeks damages for lost pay and emotional
      distress and does not seek any specific amount as damages. Sovran Self Storage,
      Inc. is defending the case.

    

    
      	
              3.

            	
              Sovran
                Self Storage, Inc., as Plan Administrator of the Sovran Acquisition
                Limited Partnership/Uncle Bob's Self Storage Health Benefits Plan
                v.
                University of Pittsburgh Medical Center as Assignee of the Estate
                of
                Pamela Harford, and UPMC Horizon
                Greenville

            

    

    

    In
      this action pending in the United States District Court for the Western District
      of New York, Sovran Self Storage, Inc. as Plan Administrator of the Health
      Benefits Plan Sponsored by Sovran Acquisition Limited Partnership/Uncle Bob's
      Self Storage ("Plan") seeks a declaratory judgment that it is not obligated
      to
      pay certain hospital bills incurred by the late Pamela Harford at a hospital
      owned and administered by the defendants.  The amount of medical bills
      in dispute totals $94,761.80.  In its complaint filed earlier this
      year, the plaintiff asserts that because the Plan participant, Ms. Harford,
      did
      not cause her medical bills to be submitted as required by the Plan within
      the
      12 month filing deadline, the Plan has no responsibility to pay those
      bills.  The defendants have filed an answer and counterclaims pursuant
      to which they assert that the Plan, which is self-funded by its sponsors, is
      required to pay the medical bills.  After the complaint and answer
      were filed in Federal Court, the parties were required to engage in a mediation
      process mandated by the Court.  That process is
      on-going.  To date, there has been no discovery in this
      action.

    

    
      	
              4.

            	
              Paula
                Hilley and Joel Hilley v. Sovran Acquisition Limited Partnership
                d/b/a
                Uncle Bob's Self Storage

            

    

    

    On
      August 7, 2007, plaintiffs filed a collective action under the Fair Labor
      Standards Act in the United States District Court for the Northern District
      of
      Alabama, Southern Division alleging that managers and maintenance employees
      at
      Sovran facilities throughout the United States have

    
      
        
        

      

      
        50

        
        

      

      
        
        

      

    

    been
      denied overtime compensation.  The proceeding as a collective action
      is subject to Court approval.  The complaint seeks unpaid overtime,
      liquidated damages in the amount of any unpaid overtime, interest and attorneys'
      fees.  Sovran Acquisition Limited Partnership is aware that this
      action has been filed but has not yet been served.

    

    
      
        
        

      

      
        51

        
        

      

      
        
        

      

    

    

    Schedule
      5.15

    

    Certain
      Transactions

    

    

    None.

    

    

    
      
        
        

      

      
        52

        
        

      

      
        
        

      

    

    Schedule
      5.19

    

    Subsidiaries
      and Partially Owned Entities

    

    

    A.     Subsidiaries
      of Sovran Self Storage, Inc.:

    

    
      	 	
              Sovran
                Holdings, Inc. - 100% Owned

            
	 	
              Sovran
                Acquisition Limited Partnership - 98% Limited Partnership
                Interest

            

    

    

    B.     Subsidiaries
      of Sovran Acquisition Limited Partnership:

    

    
      	 	
                                              100%
                Owned

               

            	 	 
	 	
              Locke
                Leasing, Inc.

            	 	
              The
                Locke Group LLC

            
	 	
              Sovran
                Jones Road, LLC

            	 	
              Locke
                Sovran I Manager, Inc.

            
	 	
              Iskalo
                Land Holdings LLC

            	 	
              Locke
                Sovran II Manager, Inc.

            
	 	
              Sovran
                Cameron, LLC

            	 	 
	 	
              Sovran
                Congress, LLC

            	 	 
	 	
              Sovran
                Huebner, LLC

            	 	 
	 	
              Sovran
                Little Road, LLC

            	 	 
	 	
              Sovran
                Granbury, LLC

            	 	 
	 	
              Sovran
                Shackelford, LLC

            	 	 
	 	
              Sovran
                Manchester, LLC

            	 	 
	 	
              Sovran
                DeGaulle, LLC

            	 	 
	 	
              Sovran
                Grapevine, LLC

            	 	 
	 	
              Sovran
                Washington, LLC

            	 	 
	 	
              Sovran
                Meramac, LLC

            	 	 
	 	
              Sovran
                Seminole, LLC

            	 	 

    

    

    
      	 	
                                          Majority
                Interest

               

            	 	 
	 	
              Locke
                Sovran I LLC

            	 	 
	 	
              Locke
                Sovran II LLC

            	 	 

    

    

    C.     Subsidiaries
      of The Locke Group LLC:

    

    
      	 	
              Locke
                Preferred Equity LLC

            	 	 
	 	
              Locke
                Preferred Equity II LLC

            	 	 

    

    

    D.     Partially
      Owned Entities:

    

    
      	 	
              Sovran
                Acquisition Limited Partnership owns a 49% interest in Iskalo Office
                Holdings, LLC as a Member

            

    

     

    
      
        
        

      

      
        53

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