Document:

<PAGE>

                                                                     EXHIBIT 4.1

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.
                                    Depositor

                             WELLS FARGO BANK, N.A.
                                     Trustee

                                       and

                          WILSHIRE CREDIT CORPORATION,
                                    Servicer

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

                         POOLING AND SERVICING AGREEMENT
                            Dated as of June 1, 2004

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

                    MERRILL LYNCH MORTGAGE INVESTORS Trust,
            MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2004-SL1

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                               TABLE OF CONTENTS

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                                                                                                                   PAGE
<S>                                                                                                                <C>
ARTICLE I             DEFINITIONS...............................................................................     2

ARTICLE II            CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES..............................    40

         SECTION 2.01.              Conveyance of Mortgage Loans................................................    40

         SECTION 2.02.              Acceptance by the Trustee of the Mortgage Loans.............................    42

         SECTION 2.03.              Representations, Warranties and Covenants of the Depositor..................    43

         SECTION 2.04.              Representations and Warranties of the Servicer..............................    47

         SECTION 2.05.              Substitutions and Repurchases of Mortgage Loans which are not
                                    "Qualified Mortgages".......................................................    48

         SECTION 2.06.              Authentication and Delivery of Certificates.................................    48

         SECTION 2.07.              REMIC Elections.............................................................    49

         SECTION 2.08.              [RESERVED]..................................................................    53

         SECTION 2.09.              Covenants of the Servicer...................................................    53

         SECTION 2.10.              [RESERVED]..................................................................    53

         SECTION 2.11.              Permitted Activities of the Trust...........................................    53

         SECTION 2.12.              Qualifying Special Purpose Entity...........................................    53

ARTICLE III           ADMINISTRATION AND SERVICING OF MORTGAGE LOANS............................................    54

         SECTION 3.01.              Servicer to Service Mortgage Loans..........................................    54

         SECTION 3.02.              Servicing and Subservicing; Enforcement of the Obligations of
                                    Servicer....................................................................    55

         SECTION 3.03.              Rights of the Depositor and the Trustee in Respect of the Servicer..........    56

         SECTION 3.04.              Trustee to Act as Servicer..................................................    56

         SECTION 3.05.              Collection of Mortgage Loan Payments; Collection Account;
                                    Certificate Account.........................................................    57

         SECTION 3.06.              Collection of Taxes, Assessments and Similar Items; Escrow
                                    Accounts....................................................................    60

         SECTION 3.07.              Access to Certain Documentation and Information Regarding
                                    the Mortgage Loans..........................................................    60

         SECTION 3.08.              Permitted Withdrawals from the Collection Account and
                                    Certificate Account.........................................................    60

         SECTION 3.09.              [RESERVED]..................................................................    62

         SECTION 3.10.              [RESERVED]..................................................................    62

         SECTION 3.11.              Enforcement of Due-On-Sale Clauses; Assumption Agreements...................    62

         SECTION 3.12.              Realization Upon Defaulted Mortgage Loans; Determination of
                                    Excess Proceeds; Special Loss Mitigation....................................    63
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                               TABLE OF CONTENTS
                                  (Continued)
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         SECTION 3.13.              Trustee to Cooperate; Release of Mortgage Files.............................    66

         SECTION 3.14.              Documents, Records and Funds in Possession of Servicer to be
                                    Held for the Trustee........................................................    67

         SECTION 3.15.              Servicing Compensation......................................................    68

         SECTION 3.16.              Access to Certain Documentation.............................................    68

         SECTION 3.17.              Annual Statement as to Compliance...........................................    68

         SECTION 3.18.              Annual Independent Public Accountants' Servicing Statement;
                                    Financial Statements........................................................    68

         SECTION 3.19.              [RESERVED]..................................................................    69

         SECTION 3.20.              Periodic Filings............................................................    69

         SECTION 3.21.              Annual Certificate by Trustee...............................................    70

         SECTION 3.22.              Annual Certificate by Servicer..............................................    70

         SECTION 3.23.              Prepayment Charge Reporting Requirements....................................    71

         SECTION 3.24.              Information to the Trustee and the Transaction Oversight
                                    Manager....................................................................     71

         SECTION 3.25.              Indemnification.............................................................    71

         SECTION 3.26.              Nonsolicitation.............................................................    72

         SECTION 3.27.              High Cost Mortgage Loans....................................................    72

ARTICLE IV            DISTRIBUTIONS.............................................................................    72

         SECTION 4.01.              Advances....................................................................    72

         SECTION 4.02.              Reduction of Servicing Compensation in Connection with
                                    Prepayment Interest Shortfalls..............................................    73

         SECTION 4.03.              Distributions on the REMIC Interests........................................    74

         SECTION 4.04.              Distributions...............................................................    74

         SECTION 4.05.              Monthly Statements to Certificateholders....................................    77

ARTICLE V             THE CERTIFICATES..........................................................................    80

         SECTION 5.01.              The Certificates............................................................    80

         SECTION 5.02.              Certificate Register; Registration of Transfer and Exchange of
                                    Certificates................................................................    81

         SECTION 5.03.              Mutilated, Destroyed, Lost or Stolen Certificates...........................    84

         SECTION 5.04.              Persons Deemed Owners.......................................................    84

         SECTION 5.05.              Access to List of Certificateholders' Names and Addresses...................    84

         SECTION 5.06.              Book-Entry Certificates.....................................................    84

         SECTION 5.07.              Notices to Depository.......................................................    85
</TABLE>

                                       ii
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                               TABLE OF CONTENTS
                                  (Continued)
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         SECTION 5.08.              Definitive Certificates.....................................................    85

         SECTION 5.09.              Maintenance of Office or Agency.............................................    86

ARTICLE VI            THE DEPOSITOR AND THE SERVICER............................................................    86

         SECTION 6.01.              Respective Liabilities of the Depositor and the Servicer....................    86

         SECTION 6.02.              Merger or Consolidation of the Depositor or the Servicer....................    86

         SECTION 6.03.              Limitation on Liability of the Depositor, the Servicer and Others...........    87

         SECTION 6.04.              Limitation on Resignation of Servicer.......................................    87

         SECTION 6.05.              Errors and Omissions Insurance; Fidelity Bonds..............................    87

ARTICLE VII           DEFAULT; TERMINATION OF SERVICER..........................................................    88

         SECTION 7.01.              Events of Default...........................................................    88

         SECTION 7.02.              Trustee to Act; Appointment of Successor....................................    89

         SECTION 7.03.              Notification to Certificateholders..........................................    90

ARTICLE VIII          CONCERNING THE TRUSTEE....................................................................    90

         SECTION 8.01.              Duties of the Trustees......................................................    90

         SECTION 8.02.              Certain Matters Affecting the Trustee.......................................    91

         SECTION 8.03.              Trustee Not Liable for Certificates or Mortgage Loans.......................    93

         SECTION 8.04.              Trustee May Own Certificates................................................    93

         SECTION 8.05.              Trustee's Fees and Expenses.................................................    93

         SECTION 8.06.              Indemnification and Expenses of Trustee.....................................    93

         SECTION 8.07.              Eligibility Requirements for Trustee........................................    94

         SECTION 8.08.              Resignation and Removal of Trustee..........................................    94

         SECTION 8.09.              Successor Trustee...........................................................    95

         SECTION 8.10.              Merger or Consolidation of Trustee..........................................    95

         SECTION 8.11.              Appointment of Co-Trustee or Separate Trustee...............................    95

         SECTION 8.12.              Tax Matters.................................................................    96

ARTICLE IX            TERMINATION...............................................................................    98

         SECTION 9.01.              Termination upon Liquidation or Repurchase of all Mortgage
                                    Loans.......................................................................    98

         SECTION 9.02.              Final Distribution on the Certificates......................................    99

         SECTION 9.03.              Additional Termination Requirements.........................................   100

ARTICLE X             MISCELLANEOUS PROVISIONS..................................................................   101

         SECTION 10.01.             Amendment...................................................................   101

         SECTION 10.02.             Counterparts................................................................   103
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                                      iii
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                               TABLE OF CONTENTS
                                   (Continued)
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         SECTION 10.03.             Governing Law...............................................................   103

         SECTION 10.04.             Intention of Parties........................................................   103

         SECTION 10.05.             Notices.....................................................................   103

         SECTION 10.06.             Severability of Provisions..................................................   104

         SECTION 10.07.             Assignment..................................................................   104

         SECTION 10.08.             Limitation on Rights of Certificateholders..................................   105

         SECTION 10.09.             Inspection and Audit Rights.................................................   106

         SECTION 10.10.             Certificates Nonassessable and Fully Paid...................................   106
</TABLE>

EXHIBIT A           FORMS OF CERTIFICATES

EXHIBIT B           MORTGAGE LOAN SCHEDULE

EXHIBIT C           [RESERVED]

EXHIBIT D           FORM OF TRUSTEE CERTIFICATION

EXHIBIT E-1         FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT

EXHIBIT E-2         FORM OF TRANSFEROR'S AFFIDAVIT

EXHIBIT F           FORM OF TRANSFEROR CERTIFICATE

EXHIBIT G           FORM OF INVESTMENT LETTER

EXHIBIT H           FORM OF RULE 144A LETTER

EXHIBIT I           REQUEST FOR RELEASE

EXHIBIT J           LIST OF TRANSFER AGREEMENTS AND BRING DOWN LETTERS

EXHIBIT K           FORM OF OFFICER'S CERTIFICATE OF TRUSTEE

EXHIBIT L           FORM OF OFFICER'S CERTIFICATE OF SERVICER

EXHIBIT M           FORM OF DATA FILE

                                       iv
<PAGE>

      POOLING AND SERVICING AGREEMENT, dated as of June 1, 2004, among MERRILL
LYNCH MORTGAGE INVESTORS, INC., a Delaware corporation, as depositor (the
"Depositor"), WELLS FARGO BANK, N.A, a national banking association, as trustee
(the "Trustee") and WILSHIRE CREDIT CORPORATION, a Nevada corporation, as
servicer (the "Servicer").

      The Depositor is the owner of the Trust Fund that is hereby conveyed to
the Trustee in return for the Certificates. It is intended that for federal
income tax purposes the Trust Fund will include (i) five real estate mortgage
investment conduits (the "Lower Tier REMIC," "Middle Tier REMIC 1," "Middle Tier
REMIC 2," "Middle Tier REMIC 3"and the "Upper Tier REMIC"), (ii) the regular
interests in the Lower Tier REMIC, Middle Tier REMIC 1, Middle Tier REMIC 2,
Middle Tier REMIC 3 and the Upper Tier REMIC, (iii) the rights to receive
Prepayment Charges and all amounts paid by the Servicer, the Seller or the
Transferor in respect of Prepayment Charges pursuant to this Agreement or the
Transfer Agreement, as applicable, and all amounts received in respect of any
indemnification paid as a result of a Prepayment Charge being unenforceable in
breach of the representations and warranties set forth in the Sale Agreement or
the related Transfer Agreement and (iv) the grantor trusts described in Section
2.07 hereof. The Lower Tier REMIC will consist of all of the assets constituting
the Trust Fund (other than the assets described in clauses (ii), (iii) and (iv)
above) and will be evidenced by the Lower Tier REMIC Regular Interests (which
will be uncertificated and will represent the "regular interests" in the Lower
Tier REMIC) and the Class LTR Interest as the single "residual interest" in the
Lower Tier REMIC. The Trustee will hold the Lower Tier REMIC Regular Interests.
Middle Tier REMIC 1 will consist of the Lower Tier REMIC Regular Interests and
will be evidenced by the Middle Tier REMIC 1 Regular Interests (which will be
uncertificated and will represent the "regular interests" in Middle Tier REMIC
1) and the Class MT1R Interest as the single "residual interest" in Middle Tier
REMIC 1. The Trustee will hold the Middle Tier REMIC 1 Regular Interests. Middle
Tier REMIC 2 will consist of the Middle Tier REMIC 1 Regular Interests (other
than the Middle Tier REMIC 1 IO Interests) and will be evidenced by the Middle
Tier REMIC 2 Regular Interests (which will be uncertificated and will represent
the "regular interests" in Middle Tier REMIC 2) and the Class MT2R Interest as
the single "residual interest" in Middle Tier REMIC 2. The Trustee will hold the
Middle Tier REMIC 2 Regular Interests. Middle Tier REMIC 3 will consist of the
Middle Tier REMIC 2 Regular Interests and will be evidenced by the Middle Tier
REMIC 3 Regular Interests (which will be uncertificated and will represent the
"regular interests" in Middle Tier REMIC 3) and the Class MT3R Interest as the
single "residual interest" in Middle Tier REMIC 3. The Trustee will hold the
Middle Tier REMIC 3 Regular Interests. The Upper Tier REMIC will consist of the
Middle Tier REMIC 3 Regular Interests and the Middle Tier REMIC 1 IO Interests
and will be evidenced by the REMIC Regular Interests (which will represent the
"regular interests" in the Upper Tier REMIC) and the Residual Interest as the
single "residual interest" in the Upper Tier REMIC. The Class R Certificate will
represent beneficial ownership of the Class LTR Interest, the Class MT1R
Interest, the Class MT2R Interest, the Class MT3R Interest and the Residual
Interest. The "latest possible maturity date" for federal income tax purposes of
all interests created hereby will be the Latest Possible Maturity Date.

      All covenants and agreements made by the Seller in the Sale Agreement and
by the Depositor and the Trustee herein with respect to the Mortgage Loans and
the other property constituting the Trust Fund are for the benefit of the
Holders from time to time of the Certificates.

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

<PAGE>

                                   ARTICLE I

                                  DEFINITIONS

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

      Accepted Servicing Practices: The Servicer's normal servicing practices,
which will conform to the mortgage servicing practices of prudent mortgage
lending institutions which service for their own account mortgage loans of the
same type as the Mortgages Loans in the jurisdictions in which the related
Mortgaged Properties are located.

      Accrual Period: With respect to the Certificates (other than the Class X
Certificates) and any Distribution Date, the period commencing on the
immediately preceding Distribution Date (or, in the case of the first
Distribution Date, the Closing Date) and ending on the day immediately preceding
such Distribution Date. With respect to the Class X Certificates and any
Distribution Date, the calendar month immediately preceding the month in which
such Distribution Date occurs. All calculations of interest on the Certificates
(other than the Class X Certificates) will be made on the basis of the actual
number of days elapsed in the related Accrual Period and a 360 day year. All
calculations of interest on the Class X Certificates will be made on the basis
of a 360-day year consisting of twelve 30-day months. The Accrual Period for
each Lower Tier REMIC Regular Interest and each Middle Tier REMIC 1 Regular
Interest for any Distribution Date will be the calendar month immediately
preceding the month in which such Distribution Date occurs. All calculations of
interest on the Lower Tier REMIC Regular Interests and the Middle Tier REMIC 1
Regular Interests will be made on the basis of a 360-day year consisting of
twelve 30-day months. The Accrual Period for each Middle Tier REMIC 2 Regular
Interest and each Middle Tier REMIC 3 Regular Interest for any Distribution Date
will be the period commencing on the immediately preceding Distribution Date
(or, in the case of the first Distribution Date, the Closing Date) and ending on
the day immediately preceding such Distribution Date. All calculations of
interest on each Middle Tier REMIC 2 Regular Interest and each Middle Tier REMIC
3 Regular Interest will be made on the basis of the actual number of days
elapsed in the related Accrual Period and a 360 day year. Notwithstanding the
foregoing, the Accrual Period with respect to the first Distribution Date and
any Class of Certificates and Lower Tier Interests shall have 30 days.

      Adjusted Net Rate: As of any Distribution Date, a per annum rate equal to
the weighted average rate of the Middle Tier REMIC 1 Regular Interests (other
than the Middle Tier REMIC 1 IO Interests) with such rate being multiplied by 30
and divided by the actual number of days in the related Accrual Period.

      Advance: The aggregate of the advances required to be made by the Servicer
with respect to any Distribution Date pursuant to Section 4.01, the amount of
any such advances being equal to the sum of the aggregate of payments of
principal and interest (net of the Servicing Fee Rate) on the Mortgage Loans
that were due during the applicable Due Period and not received as of the close
of business on the related Determination Date, less the aggregate amount of any
such Delinquent payments that the Servicer has determined would constitute a
Non-Recoverable Advance were an advance to be made with respect thereto;
provided, however, that with respect to any Mortgage Loan that is 150 days
delinquent or more (whether or not the Mortgage Loan has been converted to an
REO Property), there will be no obligation to make advances and, provided
further, however, that with respect to any Mortgage Loan that has been

                                       -2-
<PAGE>

converted to an REO Property which is less than 150 days delinquent, the
obligation to make Advances shall only be to payments of interest.

      Advance Facility: A financing or other facility as described in Section
10.07(a).

      Advancing Person: The Person to whom the Servicer's rights under this
Agreement to be reimbursed for any Advances or Servicing Advances have been
assigned pursuant to Section 10.07.

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

      Aggregate Certificate Principal Balance: For any date of determination,
the sum of the Class A Certificate Principal Balance, the Class R Certificate
Principal Balance, the Class M-1 Certificate Principal Balance, the Class M-2
Certificate Principal Balance, the Class B-1 Certificate Principal Balance, the
Class B-2 Certificate Principal Balance and the Class B-3 Certificate Principal
Balance, in each case as of such date of determination.

      Agreement: This Pooling and Servicing Agreement and any and all amendments
or supplements hereto made in accordance with the terms herein.

      Applied Realized Loss Amount: With respect to any Distribution Date, the
amount, if any, by which, the sum of (i) the Aggregate Certificate Principal
Balance and (ii) the Class C Certificate Principal Balance after distributions
of principal on such Distribution Date exceeds the aggregate Stated Principal
Balance of the Mortgage Loans as of such Distribution Date.

      Appraised Value: With respect to a Mortgage Loan the proceeds of which
were used to purchase the related Mortgaged Property, the "Appraised Value" of a
Mortgaged Property is the lesser of (1) the appraised value based on an
appraisal made for the Seller by an independent fee appraiser at the time of the
origination of the related Mortgage Loan, and (2) the sales price of such
Mortgaged Property at such time of origination. With respect to a Mortgage Loan
the proceeds of which were used to refinance an existing mortgage loan, the
"Appraised Value" is the appraised value of the Mortgaged Property based upon
the appraisal obtained at the time of refinancing.

      Assignment of Mortgage: An assignment of the Mortgage, notice of transfer
or equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction where the related Mortgaged Property is located to reflect of
record the sale and assignment of the Mortgage Loan to the Trustee, which
assignment, notice of transfer or equivalent instrument may, if permitted by
law, be in the form of one or more blanket assignments covering Mortgages
secured by Mortgaged Properties located in the same county.

      Auction: The one-time auction conducted by the Trustee, as described in
Section 9.01(b) hereof.

      Auction Date: The date on which the Auction occurs.

      Available Funds Cap: As of any Distribution Date with respect to the
Certificates, a per annum rate equal to 12 times the quotient of (i) the total
scheduled interest on the Mortgage Loans less the sum of (a) the Servicing Fee
and (b) the Current Interest on the Class X Certificates for such Distribution
Date, divided by (ii) the aggregate Certificate Principal Balance of the Class
A, Class M, Class B and Class R

                                       -3-
<PAGE>

Certificates immediately prior to such Distribution Date with such rate being
multiplied by 30 and divided by the actual number of days in the related Accrual
Period.

      Balloon Loan: A Mortgage Loan having an original term to stated maturity
of approximately 15 years or 20 years which provides for level monthly payments
of principal and interest based on a 30-year amortization schedule, with a
balloon payment of the remaining outstanding principal balance due on such
Mortgage Loan at its stated maturity.

      Book-Entry Certificates: Any of the Certificates that shall be registered
in the name of the Depository or its nominee, the ownership of which is
reflected on the books of the Depository or on the books of a Person maintaining
an account with the Depository (directly, as a "Depository Participant", or
indirectly, as an indirect participant in accordance with the rules of the
Depository and as described in Section 5.06). As of the Closing Date, each of
the Class A, Class X, Class S, Class M and Class B Certificates constitutes a
Class of Book-Entry Certificates.

      Bring Down Letters: Those certain letter agreements, dated as of July 7,
2004 between the Seller and each Transferor set out on Exhibit J hereto

      Business Day: Any day other than (1) a Saturday or a Sunday, or (2) a day
on which banking institutions in the State of California, State of Maryland,
State of Minnesota, State of Oregon and in the City of New York, New York are
authorized or obligated by law or executive order to be closed.

      Certificate: Any one of the certificates of any Class executed and
authenticated by the Trustee in substantially the forms attached hereto as
Exhibits A.

      Certificate Account: The separate Eligible Account created and maintained
by the Trustee pursuant to Section 3.05(f) in the name of the Trustee for the
benefit of the Certificateholders and designated "Wells Fargo Bank, N.A., as
trustee, in trust for registered holders of Merrill Lynch Mortgage Investors
Trust, Mortgage Loan Asset-Backed Certificates, Series 2004-SL1." Funds in the
Certificate Account shall be held in trust for the Certificateholders for the
uses and purposes set forth in this Agreement.

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

      Certificate Principal Balance: As to any Certificate (other than the Class
X and Class S Certificates) and as of any Distribution Date, the Initial
Certificate Principal Balance of such Certificate less the sum of (1) all
amounts distributed with respect to such Certificate in reduction of the
Certificate Principal Balance thereof on previous Distribution Dates pursuant to
Section 4.04, and (2) any Applied Realized Loss Amounts allocated to such
Certificate on previous Distribution Dates pursuant to Section 4.04(i). On each
Distribution Date, after all distributions of principal on such Distribution
Date, a portion of the Class C Interest Carry Forward Amount in an amount equal
to the excess of the Overcollateralization Amount on such Distribution Date over
the Overcollateralization Amount as of the preceding Distribution Date (or, in
the case of the first Distribution Date, the initial Overcollateralization
Amount (based on the Stated Principal Balance of the Mortgage Loans as of the
Cut-Off Date)) will be added to the aggregate Certificate Principal Balance of
the Class C Certificates (on a pro rata basis). Notwithstanding the foregoing on
any Distribution Date relating to a Due Period in which a Subsequent Recovery
has been received by the Servicer, the Certificate Principal Balance of any
Class of Certificates then outstanding for which any Applied Realized Loss
Amount has been allocated will be increased, in order of seniority, by an amount
equal to the lesser of (i) the Unpaid Realized Loss Amount for such Class of
Certificates and (ii) the total of any Subsequent Recovery distributed on such
date to the

                                       -4-
<PAGE>

Certificateholders (reduced by the amount of the increase in the Certificate
Principal Balance of any more senior Class of Certificates pursuant to this
sentence on such Distribution Date).

      Certificate Register: The register maintained pursuant to Section 5.02
hereof.

      Certificateholder or Holder: The Person in whose name a Certificate is
registered in the Certificate Register (initially, Cede & Co., as nominee for
the Depository) in the case of any Class of Regular Certificates or the Class R
Certificate, except that solely for the purpose of giving any consent pursuant
to this Agreement, any Certificate registered in the name of the Depositor or
any Affiliate of the Depositor shall be deemed not to be Outstanding and the
Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite amount of Percentage Interests necessary to
effect such consent has been obtained; provided, however, that if any such
Person (including the Depositor) owns 100% of the Percentage Interests evidenced
by a Class of Certificates, such Certificates shall be deemed to be Outstanding
for purposes of any provision hereof that requires the consent of the Holders of
Certificates of a particular Class as a condition to the taking of any action
hereunder. The Trustee is entitled to rely conclusively on a certification of
the Depositor or any Affiliate of the Depositor in determining which
Certificates are registered in the name of an Affiliate of the Depositor.

      Change Date: For each of the following Middle Tier REMIC 1 Interests, the
date listed opposite such Middle Tier REMIC 1 Interest below:

<TABLE>
<CAPTION>
Middle Tier REMIC 1 Interest                  Change Date
----------------------------                  -----------
<S>                                           <C>
Class MT1A1 Interest                          December 2004

Class MT1A2 Interest                          June 2005

Class MT1A3 Interest                          December 2005

Class MT1A1IO Interest                        December 2004

Class MT1A2IO Interest                        June 2005

Class MT1A3IO Interest                        December 2005
</TABLE>

      Class: All Certificates bearing the same Class designation as set forth in
Section 5.01 hereof.

      Class A Principal Distribution Amount: With respect to any Distribution
Date (1) prior to the Stepdown Date or any Distribution Date on which a Trigger
Event exists, 100% of the Principal Distribution Amount for such Distribution
Date and (2) on or after the Stepdown Date where a Trigger Event does not exist,
the excess of (A) the sum of the Class A Certificate Principal Balance and the
Class R Certificate Principal Balance immediately prior to such Distribution
Date over (B) the lesser of (i) 22.80% of the Stated Principal Balance of the
Mortgage Loans as of the end of the immediately preceding Due Period and (ii)
the excess of the Stated Principal Balance of the Mortgage Loans as of the end
of the immediately preceding Due Period over the Minimum Required
Overcollateralization Amount; provided, however, that in no event will the Class
A Principal Distribution Amount with respect to any Distribution Date exceed the
aggregate Certificate Principal Balance of the Class A and Class R Certificates.

      Class A Certificate: Any Certificate designated as a "Class A Certificate"
on the face thereof, in the form of Exhibit A hereto, representing the right to
distributions as set forth herein.

                                       -5-
<PAGE>

      Class A Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A Certificates.

      Class A Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A Pass-Through Rate on
the Class A Certificate Principal Balance as of the first day of such Accrual
Period (after giving effect to all distributions of principal made or deemed to
be made as of such first day) plus the Current Interest and Interest Carry
Forward Amount portions of any previous distributions on such Class that are
recovered as a voidable preference by a trustee in bankruptcy, less any
Non-Supported Interest Shortfall allocated on such Distribution Date to the
Class A Certificates. For purposes of calculating interest, principal
distributions on a Distribution Date will be deemed to have been made on the
first day of the Accrual Period in which such Distribution Date occurs.

      Class A Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A Current Interest with respect to prior
Distribution Dates over (B) the amount actually distributed to the Class A
Certificates with respect to interest on such prior Distribution Dates and (2)
interest on such excess (to the extent permitted by applicable law) at the Class
A Pass-Through Rate for the related Accrual Period.

      Class A Margin: As of any Distribution Date up to and including the
Optional Termination Date, 0.260% per annum and, as of any Distribution Date
after the Optional Termination Date, 0.520% per annum.

      Class A Pass-Through Rate: For the first Distribution Date, 1.620% per
annum multiplied by the number of days from and including the Closing Date
through and including the day immediately preceding the first Distribution Date
and divided by 30. As of any Distribution Date thereafter, the lesser of (1)
One-Month LIBOR plus the Class A Margin and (2) the Available Funds Cap for such
Distribution Date.

      Class B Certificates: The Class B-1 Certificates, Class B-2 Certificates
and Class B-3 Certificates.

      Class B-1 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-1 Certificates.

      Class B-1 Certificate: Any Certificate designated as a "Class B-1
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

      Class B-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-1 Certificates.

      Class B-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-1 Pass-Through Rate on
the Class B-1 Certificate Principal Balance as of the first day of such Accrual
Period (after giving effect to all distributions of principal made or deemed to
be made as of such first day) plus the Current Interest and Interest Carry
Forward Amount portions of any previous distributions on such Class that are
recovered as a voidable preference by a trustee in bankruptcy, less any
Non-Supported Interest Shortfall allocated on such Distribution Date to the
Class B-1 Certificates. For purposes of calculating interest, principal
distributions on a Distribution Date will be deemed to have been made on the
first day of the Accrual Period in which such Distribution Date occurs.

                                      -6-
<PAGE>

      Class B-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-1 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class B-1 Pass-Through Rate for the related Accrual Period.

      Class B-1 Margin: As of any Distribution Date up to and including the
Optional Termination Date, 2.150% per annum and, as of any Distribution Date
after the Optional Termination Date, 3.225% per annum.

      Class B-1 Pass-Through Rate: For the first Distribution Date 3.510% per
annum multiplied by the number of days from and including the Closing Date
through and including the day immediately preceding the first Distribution Date
and divided by 30. As of any Distribution Date thereafter, the lesser of (1)
One-Month LIBOR plus the Class B-1 Margin and (2) the Available Funds Cap for
such Distribution Date.

      Class B-1 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class R Certificate Principal Balance, the Class M-1 Certificate Principal
Balance and the Class M-2 Certificate Principal Balance have been reduced to
zero and a Trigger Event exists, or as long as a Trigger Event does not exist,
the excess of (1) the sum of (A) the sum of the Class A Certificate Principal
Balance and the Class R Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class M-1 Certificate Principal Balance (after taking into
account distributions of the Class M-1 Principal Distribution Amount on such
Distribution Date), (C) the Class M-2 Certificate Principal Balance (after
taking into account distributions of the Class M-2 Principal Distribution Amount
on such Distribution Date) and (D) the Class B-1 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 72.40% of
the Stated Principal Balances of the Mortgage Loans as of the end of the
immediately preceding Due Period and (B) the excess of the Stated Principal
Balances of the Mortgage Loans as of the end of the immediately preceding Due
Period over the Minimum Required Overcollateralization Amount, provided,
however, that on any Distribution Date prior to the Stepdown Date on which the
Class A Certificate Principal Balance, the Class R Certificate Principal
Balance, the Class M-1 Certificate Principal Balance and the Class M-2
Certificate Principal Balance have been reduced to zero, the Class B-1 Principal
Distribution Amount for such Distribution Date will equal the lesser of (A) the
outstanding Class B-1 Certificate Principal Balance and (B) 100% of the
Principal Distribution Amount remaining after any distributions on such Class A,
Class R, Class M-1 and Class M-2 Certificates; and provided further, however,
that in no event will the Class B-1 Principal Distribution Amount with respect
to any Distribution Date exceed the Class B-1 Certificate Principal Balance.

      Class B-1 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-1 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-1 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class B-1 Certificates pursuant to the last sentence
of the Definition of "Certificate Principal Balance."

      Class B-2 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-2 Certificates.

                                      -7-
<PAGE>

      Class B-2 Certificate: Any Certificate designated as a "Class B-2
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

      Class B-2 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-2 Certificates.

      Class B-2 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-2 Pass-Through Rate on
the Class B-2 Certificate Principal Balance as of the first day of such Accrual
Period (after giving effect to all distributions of principal made or deemed to
be made as of such first day) plus the Current Interest and Interest Carry
Forward Amount portions of any previous distributions on such Class that are
recovered as a voidable preference by a trustee in bankruptcy, less any
Non-Supported Interest Shortfall allocated on such Distribution Date to the
Class B-2 Certificates. For purposes of calculating interest, principal
distributions on a Distribution Date will be deemed to have been made on the
first day of the Accrual Period in which such Distribution Date occurs.

      Class B-2 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-2 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-2 Certificates with respect to interest on such excess (to the extent
permitted by applicable law) at the Class B-2 Pass-Through Rate for the related
Accrual Period.

      Class B-2 Margin: As of any Distribution Date up to and including the
Optional Termination Date, 4.250% per annum and, as of any Distribution Date
after the Optional Termination Date, 6.375% per annum.

      Class B-2 Pass-Through Rate: For the first Distribution Date, 5.610% per
annum multiplied by the number of days from and including the Closing Date
through and including the day immediately preceding the first Distribution Date
and divided by 30. As of any Distribution Date thereafter, the lesser of (1)
One-Month LIBOR plus the Class B-2 Margin and (2) the Available Funds Cap for
such Distribution Date.

      Class B-2 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class R Certificate Principal Balance, the Class M-1 Certificate Principal
Balance, the Class M-2 Certificate Principal Balance and the Class B-1
Certificate Principal Balance have been reduced to zero and a Trigger Event
exists, or as long as a Trigger Event does not exist, the excess of (1) the sum
of (A) the sum of the Class A Certificate Principal Balance and the Class R
Certificate Principal Balance (after taking into account distributions of the
Class A Principal Distribution Amount on such Distribution Date), (B) the Class
M-1 Certificate Principal Balance (after taking into account distributions of
the Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distributions
of the Class M-2 Principal Distribution Amount on such Distribution Date), (D)
the Class B-1 Certificate Principal Balance (after taking into account
distributions of the Class B-1 Principal Distribution Amount on such
Distribution Date) and (E) the Class B-2 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 75.90% of
the Stated Principal Balances of the Mortgage Loans as of the end of the
immediately preceding Due Period and (B) the excess of the Stated Principal
Balances of the Mortgage Loans as of the end of the immediately preceding Due
Period over Minimum Required Overcollateralization Amount; provided, however,
that on any Distribution Date prior to the Stepdown Date on which the Class A
Certificate Principal Balance, the Class R Certificate Principal Balance, the
Class M-1 Certificate Principal Balance, the Class M-2 Certificate Principal
Balance and the Class B-1 Certificate Principal Balance have been reduced to
zero, the Class B-2 Principal Distribution Amount for such Distribution Date
will equal the lesser of (A) the outstanding Class B-2 Principal Distribution

                                      -8-
<PAGE>

Amount and (B) 100% of the Principal Distribution Amount remaining after any
distributions on such Class A, Class R, Class M-1, Class M-2 and Class B-1
Certificates; and provided further, however, that in no event will the Class B-2
Principal Distribution Amount with respect to any Distribution Date exceed the
Class B-2 Certificate Principal Balance.

      Class B-2 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-2 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-2 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class B-2 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance".

      Class B-3 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-3 Certificates.

      Class B-3 Certificate: Any Certificate designated as a "Class B-3
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

      Class B-3 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-3 Certificates.

      Class B-3 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-3 Pass-Through Rate on
the Class B-3 Certificate Principal Balance as of the first day of such Accrual
Period (after giving effect to all distributions of principal made or deemed to
be made as of such first day) plus the Current Interest and Interest Carry
Forward Amount portions of any previous distributions on such Class that are
recovered as a voidable preference by a trustee in bankruptcy, less any
Non-Supported Interest Shortfall allocated on such Distribution Date to the
Class B-3 Certificates. For purposes of calculating interest, principal
distributions on a Distribution Date will be deemed to have been made on the
first day of the Accrual Period in which such Distribution Date occurs.

      Class B-3 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-3 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-3 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class B-3 Pass-Through Rate for the related Accrual Period.

      Class B-3 Margin: As of any Distribution Date up to and including the
Optional Termination Date, 4.750% per annum and as of any Distribution Date
thereafter, 7.125% per annum.

      Class B-3 Pass-Through Rate: For the first Distribution Date, 6.110% per
annum multiplied by the number of days from and including the Closing Date
through and including the day immediately preceding the first Distribution Date
and divided by 30. As of any Distribution Date thereafter, the lesser of (1)
One-Month LIBOR plus the Class B-3 Margin and (2) the Available Funds Cap for
such Distribution Date.

      Class B-3 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class R Certificate Principal Balance, the Class M-1 Certificate Principal
Balance, the Class M-2 Certificate Principal Balance, the Class B-1 Certificate
Principal Balance and the Class B-2 Certificate Principal Balance have been
reduced to zero and a Trigger Event exists, or as long as a Trigger Event does
not exist, the excess of (1) the sum of (A) the sum of the Class

                                      -9-
<PAGE>

A Certificate Principal Balance and the Class R Certificate Principal Balance
(after taking into account distributions of the Class A Principal Distribution
Amount on such Distribution Date), (B) the Class M-1 Certificate Principal
Balance (after taking into account distributions of the Class M-1 Principal
Distribution Amount on such Distribution Date), (C) the Class M-2 Certificate
Principal Balance (after taking into account distributions of the Class M-2
Principal Distribution Amount on such Distribution Date), (D) the Class B-1
Certificate Principal Balance (after taking into account distributions of the
Class B-1 Principal Distribution Amount on such Distribution Date), (E) the
Class B-2 Certificate Principal Balance (after taking into account distributions
of the Class B-2 Principal Distribution Amount on such Distribution Date) and
(F) the Class B-3 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 87.80% of the Stated Principal
Balances of the Mortgage Loans as of the end of the immediately preceding Due
Period and (B) the excess of the Stated Principal Balances of the Mortgage Loans
as of the end of the immediately preceding Due Period over Required Minimum
Overcollateralization Amount; provided, however, that on any Distribution Date
prior to the Stepdown Date on which the Class A Certificate Principal Balance,
the Class R Certificate Principal Balance, the Class M-1 Certificate Principal
Balance, the Class M-2 Certificate Principal Balance, the Class B-1 Certificate
Principal Balance and the Class B-2 Certificate Principal Balance have been
reduced to zero, the Class B-3 Principal Distribution Amount for such
Distribution Date will equal the lesser of (A) the outstanding Class B-3
Certificate Principal Balance and (B) 100% of the Principal Distribution Amount
remaining after any distributions on such Class A, Class R, Class M-1, Class
M-2, Class B-1 and Class B-2 Certificates; and provided further, however, that
in no event will the Class B-3 Principal Distribution Amount with respect to any
Distribution Date exceed the Class B-3 Certificate Principal Balance.

      Class B-3 Turbo Event: The event that occurs with respect to any
Distribution Date on which the Overcollateralization Amount equals or exceeds
(a) prior to the Stepdown Date, 6.10% of the Initial Certificate Principal
Balance of the Offered Certificates (other than the Class R Certificate) and the
Class B-3 Certificates or (b) after the Stepdown Date, 12.20% of the aggregate
Stated Principal Balance of the Mortgage Loans as of the end of the immediately
preceding Due Period.

      Class B-3 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-3 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-3 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class B-3 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

      Class C Applied Realized Loss Amount: As of any Distribution Date, the sum
of all Applied Realized Loss Amounts with respect to the Mortgage Loans which
have been applied to the reduction of the Certificate Principal Balance of the
Class C Certificates.

      Class C Certificate: Any Certificate designated as a "Class C Certificate"
on the face thereof, in the form of Exhibit A hereto, representing the right to
distributions as set forth herein.

      Class C Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class C Certificates.

      Class C Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class C Distributable Interest
Rate on a notional amount equal to the aggregate of the principal balance of the
Middle Tier REMIC 2 Regular Interests immediately prior to such Distribution
Date (such amount of interest representing 100 percent of the interest payments
on the Class MT3C Interest), plus the interest portion of any previous
distributions on such Class that is recovered as a

                                      -10-
<PAGE>

voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class C Certificates.

      Class C Distributable Interest Rate: The excess, if any, of (a) the
weighted average of the interest rates on the Middle Tier REMIC 2 Regular
Interests over (b) two times the weighted average of the interest rates on the
Middle Tier REMIC 2 Regular Interests (treating for purposes of this clause (b)
the interest rate on each of the Middle Tier REMIC 2 Marker Classes as being
capped at the interest rate of the Corresponding Middle Tier REMIC 3 Interest
and treating the Class MT2X Interest as being capped at zero). The averages
described in the preceding sentence shall be weighted on the basis of the
respective principal balances of the Middle Tier REMIC 2 Regular Interests
immediately prior to any date of determination.

      Class C Interest Carry Forward Amount: As of any Distribution Date, the
excess of (A) the Class C Current Interest with respect to prior Distribution
Dates over (B) the amount actually distributed to the Class C Certificates with
respect to interest on such prior Distribution Dates or added to the aggregate
Certificate Principal Balance of the Class C Certificates.

      Class C Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class C Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class C Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class C Certificates pursuant to the last sentence of
the definition of "Certificate Principal Balance."

      Class LTA1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 10% of the aggregate Initial
Certificate Principal Balance of the Class A, Class M and Class B Certificates
as of the Closing Date and an interest rate equal to the Net WAC.

      Class LTA2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 10% of the aggregate Initial
Certificate Principal Balance of the Class A, Class M and Class B Certificates
as of the Closing Date and an interest rate equal to the Net WAC.

      Class LTA3 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 15% of the aggregate Initial
Certificate Principal Balance of the Class A, Class M and Class B Certificates
as of the Closing Date and an interest rate equal to the Net WAC.

      Class LTB Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to the aggregate Cut-off Date
Principal Balance of the Mortgage Loans minus the aggregate initial principal
balances of the Lower Tier REMIC Regular Interests (other than the Class LTB
Interest) and an interest rate equal to the Net WAC.

      Class LTR Interest: The sole class of "residual interest" in the Lower
Tier REMIC.

      Class M Certificates: The Class M-1 Certificates and Class M-2
Certificates.

      Class M-1 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-1 Certificates.

      Class M-1 Certificate: Any Certificate designated as a "Class M-1
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

                                      -11-
<PAGE>

      Class M-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-1 Certificates.

      Class M-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-1 Pass-Through Rate on
the Class M-1 Certificate Principal Balance as of the first day of such Accrual
Period (after giving effect to all distributions of principal made or deemed to
be made as of such first day) plus the Current Interest and Interest Carry
Forward Amount portions of any previous distributions on such Class that are
recovered as a voidable preference by a trustee in bankruptcy, less any
Non-Supported Interest Shortfall allocated on such Distribution Date to the
Class M-1 Certificates. For purposes of calculating interest, principal
distributions on a Distribution Date will be deemed to have been made on the
first day of the Accrual Period in which such Distribution Date occurs.

      Class M-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-1 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class M-1 Pass-Through Rate for the related Accrual Period.

      Class M-1 Margin: As of any Distribution Date up to and including the
Optional Termination Date, 0.620% per annum and, as of any Distribution Date
after the Optional Termination Date, 0.930% per annum.

      Class M-1 Pass-Through Rate: For the first Distribution Date, 1.980% per
annum multiplied by the number of days from and including the Closing Date
through and including the day immediately preceding the first Distribution Date
and divided by 30. As of any Distribution Date thereafter, the lesser of (1)
One-Month LIBOR plus the Class M-1 Margin and (2) the Available Funds Cap for
such Distribution Date.

      Class M-1 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance and the
Class R Certificate Principal Balance have been reduced to zero and a Trigger
Event exists, or as long as a Trigger Event does not exist, the excess of (1)
the sum of (A) the sum of the Class A Certificate Principal Balance and the
Class R Certificate Principal Balance (after taking into account distributions
of the Class A Principal Distribution Amount on such Distribution Date) and (B)
the Class M-1 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 42.80% of the Stated Principal
Balances of the Mortgage Loans as of the end of the immediately preceding Due
Period and (B) the excess of the Stated Principal Balances for the Mortgage
Loans as of the end of the immediately preceding Due Period over the Minimum
Required Overcollateralization Amount; provided, however, that on any
Distribution Date prior to the Stepdown Date on which the Class A Certificate
Principal Balance and the Class R Certificate Principal Balance have been
reduced to zero, the Class M-1 Principal Distribution Amount will equal the
lesser of (A) the outstanding Class M-1 Certificate Principal Balance and (B)
100% of the Principal Distribution Amount remaining after any distributions on
such Class A and Class R Certificates and; and, provided, further that in no
event will the Class M-1 Principal Distribution Amount with respect to any
Distribution Date exceed the Class M-1 Certificate Principal Balance.

      Class M-1 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-1 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-1 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-1 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

                                      -12-
<PAGE>

      Class M-2 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-2 Certificates.

      Class M-2 Certificate: Any Certificate designated as a "Class M-2
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

      Class M-2 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-2 Certificates.

      Class M-2 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-2 Pass-Through Rate on
the Class M-2 Certificate Principal Balance as of the first day of such Accrual
Period (after giving effect to all distributions of principal made or deemed to
be made as of such first day) plus the Current Interest and Interest Carry
Forward Amount portions of any previous distributions on such Class that are
recovered as a voidable preference by a trustee in bankruptcy, less any
Non-Supported Interest Shortfall allocated on such Distribution Date to the
Class M-2 Certificates. For purposes of calculating interest, principal
distributions on a Distribution Date will be deemed to have been made on the
first day of the Accrual Period in which such Distribution Date occurs.

      Class M-2 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-2 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-2 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class M-2 Pass-Through Rate for the related Accrual Period.

      Class M-2 Margin: As of any Distribution Date up to and including the
Optional Termination Date, 1.250% per annum and, as of any Distribution Date
after the Optional Termination Date, 1.875% per annum.

      Class M-2 Pass-Through Rate: For the first Distribution Date, 2.610% per
annum multiplied by the number of days from and including the Closing Date
through and including the day immediately preceding the first Distribution Date
and divided by 30. As of any Distribution Date thereafter, the lesser of (1)
One-Month LIBOR plus the Class M-2 Margin and (2) the Available Funds Cap for
such Distribution Date.

      Class M-2 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class R Certificate Principal Balance and the Class M-1 Certificate Principal
Balance have been reduced to zero and a Trigger Event exists, or as long as a
Trigger Event does not exist, the excess of (1) the sum of (A) the sum of the
Class A Certificate Principal Balance and the Class R Certificate Principal
Balance (after taking into account distributions of the Class A Principal
Distribution Amount on such Distribution Date), (B) the Class M-1 Certificate
Principal Balance (after taking into account distributions of the Class M-1
Principal Distribution Amount on such Distribution Date) and (C) the Class M-2
Certificate Principal Balance immediately prior to such Distribution Date over
(2) the lesser of (A) 58.90% of the Stated Principal Balances of the Mortgage
Loans as of the end of the immediately preceding Due Period and (B) the excess
of the Stated Principal Balances of the Mortgage Loans as of the end of the
immediately preceding Due Period over the Minimum Required Overcollateralization
Amount; provided, however, that on any Distribution Date prior to the Stepdown
Date on which the Class A Certificate Principal Balance, the Class R Certificate
Principal Balance and the Class M-1 Certificate Principal Balance have been
reduced to zero, the Class M-2 Principal Distribution Amount will equal the
lesser of (A) the outstanding Class M-2 Certificate Principal Balance and (B)

                                      -13-
<PAGE>

100% of the Principal Distribution Amount remaining after any distributions on
such Class A, Class R and Class M-1 Certificates; provided, further, however, in
no event will the Class M-2 Principal Distribution Amount with respect to any
Distribution Date exceed the Class M-2 Certificate Principal Balance.

      Class M-2 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-2 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-2 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-2 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

      Class MT1A1 Interest: An uncertificated regular interest in Middle Tier
REMIC 1 with an initial principal balance equal to the initial principal balance
of its Corresponding Lower Tier REMIC Interest and an interest rate, for each
Distribution Date on or prior to its Change Date, equal to the Net WAC minus
3.00%, subject to a floor of 0%, and for subsequent Distribution Dates, equal to
the Net WAC.

      Class MT1A2 Interest: An uncertificated regular interest in Middle Tier
REMIC 1 with an initial principal balance equal to the initial principal balance
of its Corresponding Lower Tier REMIC Interest and an interest rate, for each
Distribution Date on or prior to its Change Date, equal to the Net WAC minus
3.00%, subject to a floor of 0%, and for subsequent Distribution Dates, equal to
the Net WAC.

      Class MT1A3 Interest: An uncertificated regular interest in Middle Tier
REMIC 1 with an initial principal balance equal to the initial principal balance
of its Corresponding Lower Tier REMIC Interest and an interest rate, for each
Distribution Date on or prior to its Change Date, equal to the Net WAC minus
3.00%, subject to a floor of 0%, and for subsequent Distribution Dates, equal to
the Net WAC.

      Class MT1A1IO Interest: An uncertificated "interest only" regular interest
in Middle Tier REMIC 1 with an interest rate equal to the lesser of (i) 3.00%
and (ii) the Net WAC and a notional principal amount, for each Distribution Date
on or prior to its Change Date, equal to the principal amount of its
Corresponding Lower Tier REMIC Interest, and for subsequent Distribution Dates,
equal to zero.

      Class MT1A2IO Interest: An uncertificated "interest only" regular interest
in Middle Tier REMIC 1 with an interest rate equal to the lesser of (i) 3.00%
and (ii) the Net WAC and a notional principal amount, for each Distribution Date
on or prior to its Change Date, equal to the principal amount of its
Corresponding Lower Tier REMIC Interest, and for subsequent Distribution Dates,
equal to zero.

      Class MT1A3IO Interest: An uncertificated "interest only" regular interest
in Middle Tier REMIC 1 with an interest rate equal to the lesser of (i) 3.00%
and (ii) the Net WAC and a notional principal amount, for each Distribution Date
on or prior to its Change Date, equal to the principal amount of its
Corresponding Lower Tier REMIC Interest, and for subsequent Distribution Dates,
equal to zero.

      Class MT1B Interest: An uncertificated regular interest in Middle Tier
REMIC 1 with an initial principal balance equal to the initial principal balance
of the Class LTB Interest and an interest rate equal to the Net WAC.

      Class MT1R Interest: The sole class of "residual interest" in Middle Tier
REMIC 1.

      Class MT2A Interest: An uncertificated regular interest in Middle Tier
REMIC 2 with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Middle Tier REMIC 3 Interest and an interest rate
equal to the Adjusted Net Rate.

                                      -14-
<PAGE>

      Class MT2B-1 Interest: An uncertificated regular interest in Middle Tier
REMIC 2 with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Middle Tier REMIC 3 Interest and an interest rate
equal to the Adjusted Net Rate.

      Class MT2B-2 Interest: An uncertificated regular interest in Middle Tier
REMIC 2 with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Middle Tier REMIC 3 Interest and an interest rate
equal to the Adjusted Net Rate.

      Class MT2B-3 Interest: An uncertificated regular interest in Middle Tier
REMIC 2 with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Middle Tier REMIC 3 Interest and an interest rate
equal to the Adjusted Net Rate.

      Class MT2M-1 Interest: An uncertificated regular interest in Middle Tier
REMIC 2 with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Middle Tier REMIC 3 Interest and an interest rate
equal to the Adjusted Net Rate.

      Class MT2M-2 Interest: An uncertificated regular interest in Middle Tier
REMIC 2 with an initial principal balance equal to 1/2 of the initial principal
balance of its Corresponding Middle Tier REMIC 3 Interest and an interest rate
equal to the Adjusted Net Rate.

      Class MT2R Interest: The sole class of "residual interest" in Middle Tier
REMIC 2.

      Class MT2X Interest: An uncertificated regular interest in Middle Tier
REMIC 2 with an initial principal balance equal to the excess of (i) the
aggregate initial principal balances of the Mortgage Loans over (ii) the
aggregate initial principal balances of Middle Tier REMIC 2 Marker Classes and
an interest rate equal to the Adjusted Net Rate.

      Class MT3A Interest: An uncertificated regular interest in Middle Tier
REMIC 3 with an initial principal balance equal to the initial principal balance
of its Related Certificates and bearing interest at the lesser of (i) the
greater of (x) One-Month LIBOR plus the Class A Margin and (y) 2.00% plus the
Class A Margin and (ii) the Adjusted Net Rate. Notwithstanding the foregoing,
for the first Distribution Date, the percentage described in clause (i) of the
preceding sentence shall be multiplied by a fraction, the numerator of which is
the number of days from and including the Closing Date through and including the
day immediately preceding the first Distribution Date and the denominator of
which is 30.

      Class MT3B-1 Interest: An uncertificated regular interest in Middle Tier
REMIC 3 with an initial principal balance equal to the initial principal balance
of its Related Certificate and bearing interest at the lesser of (i) the greater
of (x) One-Month LIBOR plus the Class B-1 Margin and (y) 2.00% plus the Class
B-1 Margin and (ii) the Adjusted Net Rate. Notwithstanding the foregoing, for
the first Distribution Date, the percentage described in clause (i) of the
preceding sentence shall be multiplied by a fraction, the numerator of which is
the number of days from and including the Closing Date through and including the
day immediately preceding the first Distribution Date and the denominator of
which is 30.

      Class MT3B-2 Interest: An uncertificated regular interest in Middle Tier
REMIC 3 with an initial principal balance equal to the initial principal balance
of its Related Certificate and bearing interest at the lesser of (i) the greater
of (x) One-Month LIBOR plus the Class B-2 Margin and (y) 2.00% plus the Class
B-2 Margin and (ii) the Adjusted Net Rate. Notwithstanding the foregoing, for
the first Distribution Date, the percentage described in clause (i) of the
preceding sentence shall be multiplied by a fraction, the numerator of which is
the number of days from and including the Closing Date through and including the
day immediately preceding the first Distribution Date and the denominator of
which is 30.

                                      -15-
<PAGE>

      Class MT3B-3 Interest: An uncertificated regular interest in Middle Tier
REMIC 3 with an initial principal balance equal to the initial principal balance
of its Related Certificate and bearing interest at the lesser of (i) the greater
of (x) One-Month LIBOR plus the Class B-3 Margin and (y) 2.00% plus the Class
B-3 Margin and (ii) the Adjusted Net Rate. Notwithstanding the foregoing, for
the first Distribution Date, the percentage described in clause (i) of the
preceding sentence shall be multiplied by a fraction, the numerator of which is
the number of days from and including the Closing Date through and including the
day immediately preceding the first Distribution Date and the denominator of
which is 30.

      Class MT3C Interest: An uncertificated regular interest in Middle Tier
REMIC 3 with an initial principal balance equal to the excess of the principal
balance of the Mortgage Loans over the aggregate Certificate Principal Balance
of the Class A Certificates, Class B-1 Certificates, Class B-2 Certificates,
Class B-3 Certificates, Class M-1 Certificates, Class M-2 Certificates and Class
R Certificates and bearing interest on a notional amount equal to the aggregate
of the Principal Balances of the Mortgage Loans outstanding as of the beginning
of the related Accrual Period at a rate equal to the Class MT3C Interest Rate.

      Class MT3C Interest Rate: The excess, if any, of (a) the weighted average
of the interest rates on the Middle Tier REMIC 2 Regular Interests over (b) two
times the weighted average of the interest rates on the Middle Tier REMIC 2
Regular Interests (treating for purposes of this clause (b) the interest rate on
each of the Middle Tier REMIC 2 Marker Classes as being capped at the interest
rate on the Corresponding Middle Tier REMIC 3 Interest and treating the Class
MT2X Interest as being capped at zero). The weighted averages described in the
preceding sentence shall be weighted on the basis of the respective principal
balances of the Middle Tier REMIC 2 Regular Interests immediately prior to any
date of determination.

      Class MT3M-1 Interest: An uncertificated regular interest in Middle Tier
REMIC 3 with an initial principal balance equal to the initial principal balance
of its Related Certificate and bearing interest at the lesser of (i) the greater
of (x) One-Month LIBOR plus the Class M-1 Margin and (y) 2.00% plus the Class
M-1 Margin and (ii) the Adjusted Net Rate. Notwithstanding the foregoing, for
the first Distribution Date, the percentage described in clause (i) of the
preceding sentence shall be multiplied by a fraction, the numerator of which is
the number of days from and including the Closing Date through and including the
day immediately preceding the first Distribution Date and the denominator of
which is 30.

      Class MT3M-2 Interest: An uncertificated regular interest in Middle Tier
REMIC 3 with an initial principal balance equal to the initial principal balance
of its Related Certificate and bearing interest at the lesser of (i) the greater
of (x) One-Month LIBOR plus the Class M-2 Margin and (y) 2.00% plus the Class
M-2 Margin and (ii) the Adjusted Net Rate. Notwithstanding the foregoing, for
the first Distribution Date, the percentage described in clause (i) of the
preceding sentence shall be multiplied by a fraction, the numerator of which is
the number of days from and including the Closing Date through and including the
day immediately preceding the first Distribution Date and the denominator of
which is 30.

      Class MT3R Interest: The sole class of "residual interest" in Middle Tier
REMIC 3, as described in the Preliminary Statement and Section 2.07.

      Class P Certificate: Any Certificate designated as a "Class P Certificate"
on the face thereof, in the form of Exhibit A hereto, representing the right to
distributions as set forth herein.

      Class R Certificate: Any Certificate designated as a "Class R Certificate"
on the face thereof, in the form of Exhibit A hereto, representing the right to
distributions as set forth herein.

                                      -16-
<PAGE>

      Class R Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class R Certificate.

      Class R Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class R Pass-Through Rate on
the Class R Certificate Principal Balance as of the first day of such Accrual
Period (after giving effect to all distributions of principal made or deemed to
be made as of such first day) plus the Current Interest and Interest Carry
Forward Amount portions of any previous distributions on such Class that are
recovered as a voidable preference by a trustee in bankruptcy, less any
Non-Supported Interest Shortfall allocated on such Distribution Date to the
Class R Certificate. For purposes of calculating interest, principal
distributions on a Distribution Date will be deemed to have been made on the
first day of the Accrual Period in which such Distribution Date occurs.

      Class R Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class R Current Interest with respect to prior
Distribution Dates over (B) the amount actually distributed to the Class R
Certificate with respect to interest on such prior Distribution Dates and (2)
interest on such excess (to the extent permitted by applicable law) at the Class
R Pass-Through Rate for the related Accrual Period.

      Class R Margin: As of any Distribution Date up to and including the
Optional Termination Date, 0.26% per annum and, as of any Distribution Date
after the Optional Termination Date, 0.52% per annum.

      Class R Pass-Through Rate: For the first Distribution Date, 1.620% per
annum multiplied by the number of days from and including the Closing Date
through and including the day immediately preceding the first Distribution Date
and divided by 30. As of any Distribution Date thereafter, the lesser of (1)
One-Month LIBOR plus the Class R Margin and (2) the Available Funds Cap for such
Distribution Date.

      Class S Certificate: Any Certificate designated as a "Class S Certificate"
on the face thereof, in the form of Exhibit A hereto, representing the right to
distributions as set forth herein. For federal income tax purposes, the Class S
Certificates represent the UTS Components each of which is a "regular interest"
in the Upper Tier REMIC.

      Class S Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class S Pass-Through Rate on
the Class S Notional Amount for such Distribution Date plus the portion of any
previous distributions on such Class in respect of Current Interest or an
Interest Carry Forward Amount that is recovered as a voidable preference by a
trustee in bankruptcy, less any Non-Supported Interest Shortfall allocated on
such Distribution Date to the Class S Certificates.

      Class S Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class S Current Interest with respect to prior
Distribution Dates over (B) the amount actually distributed to the Class S
Certificate with respect to interest on such prior Distribution Dates and (2)
interest on such excess (to the extent permitted by applicable law) at the Class
S Pass-Through Rate for the related Accrual Period.

      Class S Notional Amount: For any Distribution Date, the aggregate
Certificate Principal Balance of the Class A, Class R, Class M-1, Class M-2,
Class B-1, Class B-2 and Class B-3 Certificates for such Distribution Date.

      Class S Pass-Through Rate: As of any Distribution Date, the greater of (1)
2.00% minus One-Month LIBOR and (2) 0.00%; provided, however, where 2.00%
exceeds One-Month LIBOR for a Distribution Date, the rate on the Class S
Certificates with respect to the portion of the notional balance of

                                      -17-
<PAGE>

the Class S Certificates that corresponds to each Class of the Class A, Class R,
Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3 Certificates will be
subject to a cap equal to the excess of (I) the Adjusted Net Rate over (II)
One-Month LIBOR plus the applicable margin for such Class of Certificates.
Notwithstanding the foregoing, solely for the first Distribution Date, the Class
S Pass-Through Rate shall be the greater of (1) the product of (x) 2.00% minus
One-Month LIBOR and (y) a fraction, the numerator of which is the number of days
from and including the Closing Date through and including the day immediately
preceding the first Distribution Date and the denominator of which is 30 and (2)
0.00%; provided, however, that the rate for the first Distribution Date on the
Class S Certificates with respect to the portion of the notional balance of the
Class S Certificates that corresponds to each Class of the Class A, Class R,
Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3 Certificates will be
subject to a cap equal to the excess of (I) the Adjusted Net Rate over (II) the
product of (x) One-Month LIBOR plus the applicable margin for such Class of
Certificates and (y) a fraction, the numerator of which is the number of days
from and including the Closing Date through and including the day immediately
preceding the first Distribution Date and the denominator of which is 30.

      Class X Certificates: Any Certificate designated as a "Class X
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

      Class X Notional Amount: With respect to the first eighteen Distribution
Dates, the lesser of (x) the aggregate Stated Principal Balance of the Mortgage
Loans as of the preceding Distribution Date and (y) (i) from July 2004 through
and including December 2004, 35% of the Certificate Principal Balance of the
Offered Certificates (other than the Class R Certificate) and the Class B-3
Certificates as of the Closing Date; (ii) from January 2005 through and
including June 2005, 25% of the Certificate Principal Balance of the Offered
Certificates (other than the Class R Certificate) and the Class B-3 Certificates
as of the Closing Date; and (iii) from July 2005 through and including December
2005, 15% of the Certificate Principal Balance of the Offered Certificates
(other than the Class R Certificate) and the Class B-3 Certificates as of the
Closing Date. With respect to each Distribution Date on or after the
Distribution Date in January 2006, the Class X Notional Amount shall be zero.

      Class X Pass Through Rate: As of any Distribution Date, the lesser of (x)
3.00% per annum and (y) the Net WAC for such Distribution Date.

      Closing Date: July 7, 2004.

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

      Collection Account: The separate Eligible Account created and initially
maintained by the Servicer pursuant to Section 3.05(d) in the name of the
Trustee for the benefit of the Certificateholders and designated "Wilshire
Credit Corporation, as servicer for Wells Fargo Bank, N.A., as Trustee, in trust
for registered holders of Merrill Lynch Mortgage Investors Trust, Mortgage Loan
Asset-Backed Certificates, Series 2004-SL1". Funds in the Collection Account
shall be held in trust for the Certificateholders for the uses and purposes set
forth in this Agreement.

      Combined Loan-to-Value Ratio: The fraction, expressed as a percentage, the
numerator of which is the sum of (1) the original principal balance of the
related Mortgage Loan and (2) any outstanding principal balances of Mortgage
Loans the liens on which are senior to the lien on such related Mortgage Loan
(such sum calculated at the date of origination of such related Mortgage Loan)
and the denominator of which is the lesser of (A) the Appraised Value of the
related Mortgaged Property and (B) the sales price of the related Mortgaged
Property at time of origination.

                                      -18-
<PAGE>

      Compensating Interest: For any Distribution Date and any Principal
Prepayment in full in respect of a Mortgage Loan that is received during the
period from the first day of the related Prepayment Period through the last day
of the calendar month preceding such Distribution Date, a payment made by the
Servicer in an amount not to exceed the product of (a) one-twelfth of 0.25% and
(b) the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date, equal to the amount of interest at the Net Mortgage Rate for
that Mortgage Loan from the date of prepayment through the 30th day of such
preceding calendar month.

      Corresponding Lower Tier REMIC Interest: For each Middle Tier REMIC 1
Interest listed below, the Lower Tier REMIC Interest listed opposite such Middle
Tier REMIC 1 Interest below:

<TABLE>
<CAPTION>
Middle Tier REMIC 1 Interest                  Lower Tier REMIC Interest
----------------------------                  -------------------------
<S>                                           <C>
Class MT1A1 Interest                          Class LTA1 Interest

Class MT1A2 Interest                          Class LTA2 Interest

Class MT1A3 Interest                          Class LTA3 Interest

Class MT1A1IO Interest                        Class LTA1 Interest

Class MT1A2IO Interest                        Class LTA2 Interest

Class MT1A3IO Interest                        Class LTA3 Interest
</TABLE>

      Corresponding Middle Tier REMIC 3 Interests: With respect to the Class
MT2A Interest, the Class MT3A Interest. With respect to the Class MT2B-1
Interest, the Class MT3B-1 Interest. With respect to the Class MT2B-2 Interest,
the Class MT3B-2 Interest. With respect to the Class MT2B-3 Interest, the Class
MT3B-3 Interest. With respect to the Class MT2M-1 Interest, the Class MT3M-1
Interest. With respect to the Class MT2M-2 Interest, the Class MT3M-2 Interest.

      Current Interest: Any of the Class A Current Interest, the Class R Current
Interest, the Class M-1 Current Interest, the Class M-2 Current Interest, the
Class B-1 Current Interest, the Class B-2 Current Interest, the Class B-3
Current Interest, the Class C Current Interest, the Class S Current Interest and
the Class X Current Interest.

      Cut-off Date: June 1, 2004.

      Cut-off Date Principal Balance: As to any Mortgage Loan, the unpaid
principal balance thereof as of the close of business on the calendar day
immediately preceding the Cut-off Date after application of all payments of
principal due on or prior to the Cut-off Date, whether or not received, and all
Principal Prepayments received prior to the Cut-off Date, but without giving
effect to any installments of principal received in respect of Due Dates on and
after the Cut-off Date.

      Definitive Certificates: As defined in Section 5.06.

      Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced by a
Replacement Mortgage Loan.

      Delinquent: A Mortgage Loan is "delinquent" if any payment due thereon is
not made pursuant to the terms of such Mortgage Loan by the close of business on
the day such payment is scheduled to be

                                      -19-
<PAGE>

due. A Mortgage Loan is "30 days delinquent" if such payment has not been
received by the close of business on the corresponding day of the month
immediately succeeding the month in which such payment was due, or, if there is
no such corresponding day (e.g., as when a 30-day month follows a 31-day month
in which a payment was due on the 31st day of such month), then on the last day
of such immediately succeeding month. With respect to any Mortgage Loan due on
any day other than the first day of the month, such Mortgage Loan shall be
deemed to be due on the first day of the immediately succeeding month. Similarly
for "60 days delinquent," "90 days delinquent" and so on.

      Denomination: With respect to each Certificate, the amount set forth on
the face thereof as the "Initial Principal Balance of this Certificate."

      Depositor: Merrill Lynch Mortgage Investors, Inc., a Delaware corporation,
or any successor in interest.

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

      Depository Agreement: With respect to Classes of Book-Entry Certificates,
the agreement among the Trustee and the initial Depository.

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

      Designated Transaction: A transaction in which the assets underlying the
Certificates consist of single-family residential, multi-family residential,
home equity, manufactured housing and/or commercial mortgage obligations that
are secured by single-family residential, multi-family residential, commercial
real property or leasehold interests therein.

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

      Disqualified Organization: (1) the United States, any state or political
subdivision thereof, any foreign government, any international organization, or
any agency or instrumentality of any of the foregoing, (2) any organization
(other than a cooperative described in Section 521 of the Code) which is exempt
from tax under Chapter 1 of Subtitle A of the Code unless such organization is
subject to the tax imposed by Section 511 of the Code and (3) any organization
described in Section 1381(a)(2)(C) of the Code.

      Distribution Date: The 25th day of each calendar month after the initial
issuance of the Certificates, or if such 25th day is not a Business Day, the
next succeeding Business Day, commencing in July 2004.

      Due Date: With respect to any Distribution Date and any Mortgage Loan, the
day during the related Due Period on which a Scheduled Payment is due.

      Due Period: With respect to any Distribution Date, the period beginning on
the second day of the calendar month preceding the calendar month in which such
Distribution Date occurs (or, in the case of

                                      -20-
<PAGE>

the first Distribution Date, beginning on the Cut-off Date) and ending on the
first day of the month in which such Distribution Date occurs.

      Eligible Account: An account that is (1) maintained with a depository
institution the long-term unsecured debt obligations of which are rated by each
Rating Agency in one of its two highest rating categories, or (2) maintained
with the corporate trust department of a bank which (A) has a rating of at least
Baa3 or P-3 by Moody's and (B) is either the Depositor or the corporate trust
department of a national bank or banking corporation which has a rating of at
least A-1 by S&P or F1 by Fitch, or (iii) an account or accounts the deposits in
which are fully insured by the FDIC, or (iv) an account or accounts, acceptable
to each Rating Agency without reduction or withdrawal of the rating of any Class
of Certificates, as evidenced in writing, by a depository institution in which
such accounts are insured by the FDIC (to the limit established by the FDIC),
the uninsured deposits in which accounts are otherwise secured such that, as
evidenced by an Opinion of Counsel delivered to and acceptable to the Trustee
and each Rating Agency, the Certificateholders have a claim with respect to the
funds in such account and a perfected first security interest against any
collateral (which shall be limited to Permitted Investments) securing such funds
that is superior to claims of any other depositors or creditors of the
depository institution with which such account is maintained, or (v) maintained
at an eligible institution whose commercial paper, short-term debt or other
short-term deposits are rated at least A-1+ by S&P and F-1+ by Fitch, or (vi)
maintained with a federal or state chartered depository institution the deposits
in which are insured by the FDIC to the applicable limits and the short-term
unsecured debt obligations of which (or, in the case of a depository institution
that is a subsidiary of a holding company, the short-term unsecured debt
obligations of such holding company) are rated A-1 by S&P or Prime-1 by Moody's
at the time any deposits are held on deposit therein, or (vii) otherwise
acceptable to each Rating Agency, as evidenced by a letter from each Rating
Agency to the Trustee.

      ERISA: The Employee Retirement Income Security Act of 1974, including any
successor or amendatory provisions.

      ERISA Restricted Certificates: The Class B-3 Certificates, Class C
Certificates, Class P Certificates, and Class R Certificate and any other
Certificate, unless such other Certificate shall have received a rating from a
Rating Agency at the time of a transfer of such other Certificate that is in one
of the three (or in the case of Designated Transactions, four) highest generic
rating categories.

      Event of Default: As defined in Section 7.01 hereof.

      Excess Interest: On any Distribution Date, for the Class A Certificates,
Class R Certificate, Class M-1 Certificates, Class M-2 Certificates, Class B-1
Certificates, Class B-2 Certificates, and Class B-3 Certificates, the excess, if
any, of (1) the amount of interest such Class of Certificates is entitled to
receive on such Distribution Date at its Pass-Through Rate over (2) the amount
of interest such Class of Certificates would have been entitled to receive on
such Distribution Date had the Pass-Through Rate for such Class been the REMIC
Pass-Through Rate.

      Excess Proceeds: With respect to any Liquidated Loan, any Liquidation
Proceeds that are in excess of the sum of (1) the unpaid principal balance of
such Liquidated Loan as of the date of such liquidation plus (2) interest at the
Mortgage Rate from the Due Date as to which interest was last paid or advanced
to Certificateholders (and not reimbursed to the Servicer) up to the Due Date in
the month in which such Liquidation Proceeds are required to be distributed on
the unpaid principal balance of such Liquidated Loan outstanding during each Due
Period as to which such interest was not paid or advanced.

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

                                      -21-
<PAGE>

      Extra Principal Distribution Amount: With respect to any Distribution
Date, (1) prior to the Stepdown Date, the excess of (A) the sum of (i) the
Aggregate Certificate Principal Balance immediately preceding such Distribution
Date reduced by the Principal Funds with respect to such Distribution Date, (ii)
$12,506,281 and (iii) the cumulative amount distributed to the Class B-3
Certificates prior to such Distribution Date pursuant to a Class B-3 Turbo Event
over (B) the Pool Stated Principal Balance of the Mortgage Loans as of such
Distribution Date and (2) on and after the Stepdown Date, (A) the sum of (x) the
Aggregate Certificate Principal Balance immediately preceding such Distribution
Date, reduced by the Principal Funds with respect to such Distribution Date and
(y) the greater of (a) the sum of 12.20% of the Pool Stated Principal Balance of
the Mortgage Loans and an amount equal to the product of (i) 11.90% of the Pool
Stated Principal Balance of the Mortgage Loans as of such Distribution Date and
(ii) a fraction, the numerator of which is the cumulative amount distributed to
the Class B-3 Certificates prior to such Distribution Date pursuant to a Class
B-3 Turbo Event and the denominator of which is $12,198,000 and (b) the Minimum
Required Overcollateralization Amount less (B) the Pool Stated Principal Balance
of the Mortgage Loans as of such Distribution Date; provided, however, that if
on any Distribution Date a Trigger Event is in effect, the Extra Principal
Distribution Amount will not be reduced to the applicable percentage of the
then-current Pool Stated Principal Balance of the Mortgage Loans (and will
remain fixed at the applicable percentage of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Due Date immediately prior to the
Trigger Event) until the next Distribution Date on which the Trigger Event is
not in effect.

      Fannie Mae: A federally chartered and privately owned corporation
organized and existing under the Federal National Mortgage Association Charter
Act, or any successor thereto.

      FDIC: The Federal Deposit Insurance Corporation, or any successor thereto.

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

      Floating Rate Certificate Carryover: With respect of a Distribution Date,
in the event that the Pass-Through Rate for a Class of the Class A, Class R,
Class M or Class B Certificates is based upon the Available Funds Cap the excess
of (x) the amount of interest that such Class would have been entitled to
receive on such Distribution Date had the Pass-Through Rate for that Class not
been calculated based on the Available Funds Cap over (y) the amount of interest
payable on such Class on such Distribution Date based on the Available Funds
Cap, together with (i) the unpaid portion of any such excess from prior
Distribution Dates (and interest accrued thereon at the then applicable
Pass-Through Rate for such Class, without giving effect to the Available Funds
Cap) and (ii) any amount previously distributed with respect to Floating Rate
Certificate Carryover for such Class that is recovered as a voidable preference
by a trustee in bankruptcy.

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

      Grantor Trusts: The grantor trusts described in Section 2.07 hereof.

      Initial Certificate Principal Balance: With respect to any Class A, Class
M, Class B, Class C or Class R Certificate, the Certificate Principal Balance of
such Certificate or any predecessor Certificate on the Closing Date as set forth
in Section 5.01 hereof.

      Initial Optional Termination Date: The Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans is equal to or less
than 10% of the aggregate Stated Principal Balance of the Mortgage Loans as of
the Cut-off Date.

                                      -22-
<PAGE>

      Insurance Policy: With respect to any Mortgage Loan included in the Trust
Fund, any insurance policy, including all riders and endorsements thereto in
effect with respect to such Mortgage Loan, including any replacement policy or
policies for any insurance policies.

      Insurance Proceeds: Proceeds paid in respect of the Mortgage Loans
pursuant to any Insurance Policy or any other insurance policy covering a
Mortgage Loan, to the extent such proceeds are payable to the mortgagee under
the Mortgage, the Servicer or the Trustee under the deed of trust and are not
applied to the restoration of the related Mortgaged Property or released to the
Mortgagor in accordance with the procedures that the Servicer would follow in
servicing mortgage loans held for its own account, in each case other than any
amount included in such Insurance Proceeds in respect of Insured Expenses.

      Insured Expenses: Expenses covered by an Insurance Policy or any other
insurance policy with respect to the Mortgage Loans.

      Interest Carry Forward Amount: Any of the Class A Interest Carry Forward
Amount, the Class R Interest Carry Forward Amount, the Class M-1 Interest Carry
Forward Amount, the Class M-2 Interest Carry Forward Amount, the Class B-1
Interest Carry Forward Amount, the Class B-2 Interest Carry Forward Amount, the
Class B-3 Interest Carry Forward Amount, the Class C Interest Carry Forward
Amount, or the Class X Interest Carry Forward Amount, as the case may be.

      Interest Determination Date: With respect to the Certificates (other than
the Class X Certificates), (i) for any Accrual Period other than the first
Accrual Period, the second LIBOR Business Day preceding the commencement of such
Accrual Period and (ii) for the first Accrual Period, July 2, 2004.

      Interest Funds: With respect to any Distribution Date, the sum, without
duplication, of (1) all scheduled interest due during the related Due Period and
received before the related Servicer Remittance Date or advanced on or before
the related Servicer Remittance Date less the Servicing Fee, (2) all Advances
relating to interest with respect to the Mortgage Loans, (3) all Compensating
Interest with respect to the Mortgage Loans, (4) Liquidation Proceeds with
respect to the Mortgage Loans (to the extent such Liquidation Proceeds relate to
interest) collected during the related Prepayment Period, (5) all proceeds of
any purchase pursuant to Section 2.02 or 2.03 during the related Prepayment
Period or pursuant to Section 9.01 not later than the related Determination Date
(to the extent that such proceeds relate to interest) less the Servicing Fee and
(6) all Prepayment Charges received with respect to the Mortgage Loans during
the related Prepayment Period, less (A) all Non-Recoverable Advances relating to
interest and (B) other amounts reimbursable to the Servicer and the Trustee
pursuant to this Agreement.

      Latest Possible Maturity Date: The latest maturity date for any Mortgage
Loan in the Trust Fund plus one year.

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

      Liquidated Loan: With respect to any Distribution Date, a defaulted
Mortgage Loan that either (a) has been liquidated through deed-in-lieu of
foreclosure, foreclosure sale, trustee's sale or other realization as provided
by applicable law governing the real property subject to the related Mortgage
and any security agreements and as to which the Servicer has certified (in
accordance with Section 3.12) in the related Prepayment Period that it has
received all amounts it expects to receive in connection with such liquidation
or (b) as to which is delinquent 180 days or longer, the Servicer has certified
in a certificate of an officer of the Servicer delivered to the Depositor and
the Trustee that it does not believe that there is a reasonable likelihood that
any further net proceeds will be received or recovered with respect to such
Mortgage Loan.

                                      -23-
<PAGE>

      Liquidation Proceeds: Amounts, including Insurance Proceeds, received in
connection with the partial or complete liquidation of Mortgage Loans, whether
through trustee's sale, foreclosure sale, sale by the Servicer pursuant to this
Agreement or otherwise or amounts received in connection with any condemnation
or partial release of a Mortgaged Property and any other proceeds received in
connection with an REO Property, less the sum of related unreimbursed Advances,
Servicing Fees, Servicing Advances and any other expenses related to such
Mortgage Loan.

      Losses: Any losses, claims, damages, liabilities or expenses collectively.

      Lower Tier Interest: Any of the Lower Tier REMIC Interests, the Middle
Tier REMIC 1 Interests, the Middle Tier REMIC 2 Interests and the Middle Tier
REMIC 3 Interests.

      Lower Tier REMIC: As described in the Preliminary Statement and Section
2.07.

      Lower Tier REMIC Interests: Each of the Class LTA1 Interest, Class LTA2
Interest, Class LTA3 Interest, Class LTB Interest and Class LTR Interest.

      Lower Tier REMIC Regular Interests: Each of the Lower Tier REMIC Interests
other than the Class LTR Interest.

      Margin: Any of the Class A Margin, the Class B-1 Margin, the Class B-2
Margin, the Class B-3 Margin, the Class M-1 Margin, the Class M-2 Margin and the
Class R Margin.

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

      MERS Loan: Any Mortgage Loan registered with MERS on the MERS System.

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

      Middle Tier REMIC 1: As described in the Preliminary Statement and Section
2.07.

      Middle Tier REMIC 1 Interests: Each of the Class MT1A1 Interest, Class
MT1A2 Interest, Class MT1A3 Interest, Class MT1A1IO Interest, Class MT1A2IO
Interest, Class MT1A3IO Interest, Class MT1B Interest and Class MT1R Interest.

      Middle Tier REMIC 1 IO Interest: Each Middle Tier REMIC 1 Interest that
contains "IO" in its class designation.

      Middle Tier REMIC 1 Regular Interests: Each of the Middle Tier REMIC 1
Interests other than the Class MT1R Interest.

      Middle Tier REMIC 2: As described in the Preliminary Statement and Section
2.07.

      Middle Tier REMIC 2 Interests: Each of the Class MT2A Interest, the Class
MT2M-1 Interest, the Class MT2M-2 Interest, the Class MT2B-1 Interest, the Class
MT2B-2 Interest, the Class MT2B-3 Interest, the Class MT2X Interest and the
Class MT2R Interest.

      Middle Tier REMIC 2 Marker Classes: Each of the classes of Middle Tier
REMIC 2 Regular Interests other than the Class MT2X Interest.

                                      -24-
<PAGE>

      Middle Tier REMIC 2 Regular Interests: Each of the Middle Tier REMIC 2
Interests other than the Class MT2R Interest.

      Middle Tier REMIC 3: As described in the Preliminary Statement and Section
2.07.

      Middle Tier REMIC 3 Interests: Each of the Class MT3A Interest, the Class
MT3M-1 Interest, the Class MT3M-2 Interest, the Class MT3B-1 Interest, the Class
MT3B-2 Interest, the Class MT3B-3 Interest, the Class MT3X Interest and the
Class MT3R Interest.

      Middle Tier REMIC 3 Regular Interests: Each of the Middle Tier REMIC 3
Interests other than the Class MT3R Interest.

      Minimum Required Overcollateralization Amount: An amount equal to the
product of (x) 0.50% and (y) the Stated Principal Balance of the Mortgage Loan
as of the Cut-off Date.

      MIN: The loan number for any MERS Loan.

      MOM Loan: Any Mortgage Loan as to which MERS is acting as mortgagee,
solely as nominee for the originator of such Mortgage Loan and its successors
and assigns.

      Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.05.

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

      Mortgage: With respect to a Mortgage Loan, the mortgage, deed of trust or
other instrument creating a second lien or a second priority ownership interest
in an estate in fee simple in real property securing a Mortgage Note.

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

      Mortgage Loans: Such of the mortgage loans transferred and assigned to the
Trustee pursuant to the provisions hereof as from time to time are held as a
part of the Trust Fund (including any REO Property), the mortgage loans so held
being identified in the Mortgage Loan Schedule, notwithstanding foreclosure or
other acquisition of title of the related Mortgaged Property. 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 shall continue to be a Mortgage Loan hereunder until the Purchase
Price with respect thereto has been paid to the Trust Fund; provided that the
Servicer shall have no obligation to service any Mortgage Loan unless it is
transferred to the Servicer on a Servicing Transfer Date.

      Mortgage Loan Schedule: The list of Mortgage Loans (as from time to time
amended by the Trustee to reflect the deletion of Deleted Mortgage Loans and the
addition of Replacement 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, attached hereto as Exhibit B, setting forth the
following information with respect to each Mortgage Loan:

                  (i)   the loan number;

                  (ii)  borrower name and address;

                                      -25-
<PAGE>

                  (iii) the unpaid principal balance of the Mortgage Loans;

                  (iv)  the initial Mortgage Rate;

                  (v)   the original maturity date and the months remaining
                        before maturity date;

                  (vi)  the original principal balance;

                  (vii) the Cut-off Date Principal Balance;

                  (viii) the first payment due date of the Mortgage Loan;

                  (ix)  the Combined Loan-to-Value Ratio

                  (x)   a code indicating whether the residential dwelling at
                        the time of origination was represented to be
                        owner-occupied;

                  (xi)  a code indicating the property type;

                  (xii) location of the related Mortgaged Property;

                  (xiii) a code indicating whether a Prepayment Charge is
                        applicable and, if so,

                        (A)   the period during which such Prepayment Charge is
                              in effect;

                        (B)   the amount of such Prepayment Charge;

                        (C)   any limitations or other conditions on the
                              enforceability of such Prepayment Charge; and

                        (D)   any other information pertaining to the Prepayment
                              Charge specified in the related Mortgage Note;

                  (xiv) the Credit Score and date obtained; and

                  (xv)  with respect to each Adjustable Rate Mortgage Loan;

                        (A)   the frequency of each Adjustment Date;

                        (B)   the next Adjustment Date;

                        (C)   the Maximum Mortgage Rate;

                        (D)   the Minimum Mortgage Rate;

                        (E)   the Mortgage Rate as of the Cut-off Date;

                        (F)   the related Periodic Rate Cap; and

                        (G)   the Gross Margin.

                                      -26-
<PAGE>

      Mortgage Note: The original executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan
and all amendments, modifications and attachments thereto.

      Mortgage Pool: The aggregate of the Mortgage Loans identified in the
Mortgage Loan Schedule.

      Mortgaged Property: The underlying property securing a Mortgage Loan.

      Mortgage Rate: The annual rate of interest borne by a Mortgage Note from
time to time.

      Mortgagor: The obligor on a Mortgage Note.

      Net Mortgage Rate: As to each Mortgage Loan, and at any time, the per
annum rate equal to the then current Mortgage Rate less the Servicing Fee Rate.

      Net WAC: With respect to any Distribution Date, a per annum rate equal to
12 times the quotient obtained by dividing (x) the total scheduled interest
based on the Net Mortgage Rates in effect on the related Due Date, by (y) the
aggregate Stated Principal Balance of the Mortgage Loans as of the preceding
Distribution Date.

      Non-Recoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Servicer that, in the good faith judgment of the
Servicer, will not or, in the case of a current delinquency, would not, be
ultimately recoverable by the Servicer from the related Mortgagor, related
Liquidation Proceeds or otherwise related to the Mortgage Loans.

      Non-Recoverable Servicing Advance: Any portion of a Servicing Advance
previously made or proposed to be made by the Servicer that, in the good faith
judgment of the Servicer, will not or, in the case of a current Servicing
Advance, would not, be ultimately recoverable by the Servicer from the related
Mortgagor, related Liquidation Proceeds or otherwise related to the Mortgage
Loans.

      Non-Supported Interest Shortfall: As defined in Section 4.02.

      Offered Certificates: The Class A, Class S, Class X, Class M-1, Class M-2,
Class B-1, Class B-2 and Class R Certificates.

      Officer's Certificate: A certificate (1) signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a vice president (however
denominated), an Assistant Vice President, the Treasurer, the Secretary, or one
of the assistant treasurers or assistant secretaries of the Depositor or the
Servicer (or any other officer customarily performing functions similar to those
performed by any of the above designated officers and also to whom, with respect
to a particular matter, such matter is referred because of such officer's
knowledge of and familiarity with a particular subject) or (2), if provided for
in this Agreement, signed by a Servicing Officer, as the case may be, and
delivered to the Depositor, the Servicer, or the Trustee, as the case may be, as
required by this Agreement.

      One-Month LIBOR: With respect to any Accrual Period, the rate determined
by the Trustee on the related Interest Determination Date on the basis of (a)
the offered rates for one-month United States dollar deposits, as such rates
appear on Telerate page 3750, as of 11:00 a.m. (London time) on such Interest
Determination Date or (b) if such rate does not appear on Telerate Page 3750 as
of 11:00 a.m. (London time), the offered rates of the Reference Banks for
one-month United States dollar deposits, as such rates appear on the Reuters
Screen LIBO Page, as of 11:00 a.m. (London time) on such Interest Determination
Date. If One-Month LIBOR is determined pursuant to clause (b) above, on each
Interest

                                      -27-
<PAGE>

Determination Date, One-Month LIBOR for the related Accrual Period will be
established by the Trustee as follows:

                  (i)   If on such Interest Determination Date two or more
                        Reference Banks provide such offered quotations,
                        One-Month LIBOR for the related Accrual Period shall be
                        the arithmetic mean of such offered quotations (rounded
                        upwards if necessary to the nearest whole multiple of
                        0.03125%).

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

      Opinion of Counsel: A written opinion of counsel, who may be counsel for
the Depositor or the Servicer, reasonably acceptable to each addressee of such
opinion; provided, however, that with respect to Section 6.04 or 10.01, or the
interpretation or application of the REMIC Provisions, such counsel must (1) in
fact be independent of the Depositor and the Servicer, (2) not have any direct
financial interest in the Depositor or the Servicer or in any affiliate of
either, and (3) not be connected with the Depositor or the Servicer as an
officer, employee, promoter, underwriter, trustee, partner, director or person
performing similar functions.

      Optional Termination: The termination of the trust hereunder pursuant to
clause (a) of Section 9.01 hereof.

      Optional Termination Amount: The repurchase price received by the Trustee
in connection with any repurchase of all of the Mortgage Loans pursuant to
Section 9.01.

      Optional Termination Price: On any date after the Initial Optional
Termination Date, an amount equal to the sum of (A) the aggregate Stated
Principal Balance of each Mortgage Loan (other than any Mortgage Loan that has
become an REO Property) as of the Distribution Date on which the proceeds of the
Optional Termination are distributed to the Certificateholders, plus accrued
interest thereon at the applicable Mortgage Rate as of the Due Date preceding
the Distribution Date on which the proceeds of the Optional Termination are
distributed to Certificateholders and the fair market value of any REO Property,
plus accrued interest thereon as of the Distribution Date on which the proceeds
of the Optional Termination are distributed to Certificateholders, (B) any
unreimbursed out-of-pocket costs and expenses owed to the Trustee (including any
amounts incurred by the Trustee in connection with conducting the Auction) or
the Servicer and any unpaid or unreimbursed Servicing Fees, Advances and
Servicing Advances, (C) any unreimbursed costs, penalties and/or damages
incurred by the Trust Fund in connection with any violation relating to any of
the Mortgage Loans of any predatory or abusive lending law and (D) in the event
an Auction has been conducted, all reasonable fees and expenses incurred by the
Trustee to conduct the Auction.

      OTS: The Office of Thrift Supervision.

      Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except: (1) Certificates theretofore canceled by the Trustee or
delivered to the Trustee for cancellation; and (2) Certificates in exchange for
which or in lieu of which other Certificates have been executed by the Trustee
and delivered by the Trustee pursuant to this Agreement.

                                      -28-
<PAGE>

      Outstanding Mortgage Loan: As of any Distribution Date, a Mortgage Loan
with a Stated Principal Balance greater than zero that was not the subject of a
Principal Prepayment in full, and that did not become a Liquidated Loan, prior
to the end of the related Due Period.

      Overcollateralization Amount: As of any date of determination, the excess
of (1) the Stated Principal Balance of the Mortgage Loans over (2) the
Certificate Principal Balance of the Certificates (other than the Class P
Certificates and the Class C Certificates).

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

      Pass-Through Rate: With respect to the Class A Certificates, the Class A
Pass-Through Rate; with respect to the Class M-1 Certificates, the Class M-1
Pass-Through Rate; with respect to the Class M-2 Certificates, the Class M-2
Pass-Through Rate; with respect to the Class B-1 Certificates, the Class B-1
Pass-Through Rate; with respect to the Class B-2 Certificates, the Class B-2
Pass-Through Rate; with respect to the Class B-3 Certificates, the Class B-3
Pass-Through Rate; with respect to the Class C Certificates, the Class C
Pass-Through Rate; with respect to the Class S Certificates, the Class S
Pass-Through Rate; with respect to the Class X Certificates, the Class X
Pass-Through Rate; and with respect to the Class R Certificate, the Class R
Pass-Through Rate.

      Percentage Interest: With respect to:

                  (i)   any Class, the percentage interest in the undivided
                        beneficial ownership interest evidenced by such Class
                        which shall be equal to the Certificate Principal
                        Balance of such Class divided by the Class Principal
                        Balance of all Classes; and

                  (ii)  any Certificate, the Percentage Interest evidenced
                        thereby of the related Class shall equal the percentage
                        obtained by dividing the Denomination of such
                        Certificate by the aggregate of the Denominations of all
                        Certificates of such Class; except that in the case of
                        any Class P Certificates, the Percentage Interest with
                        respect to such Certificate shown on the face of such
                        Certificate.

      Permitted Activities: The primary activities of the trust created pursuant
to this Agreement which shall be:

                  (i)   holding Mortgage Loans transferred from the Depositor
                        and other assets of the Trust Fund, including any credit
                        enhancement and passive derivative financial instruments
                        that pertain to beneficial interests issued or sold to
                        parties other than the Depositor, its Affiliates, or its
                        agents;

                  (ii)  issuing Certificates and other interests in the assets
                        of the Trust Fund;

                  (iii) receiving collections on the Mortgage Loans and making
                        payments on such Certificates and interests in
                        accordance with the terms of this Agreement; and

                  (iv)  engaging in other activities that are necessary or
                        incidental to accomplish these limited purposes, which
                        activities cannot be contrary to the status

                                      -29-
<PAGE>

                        of the Trust Fund as a qualified special purpose entity
                        under existing accounting literature.

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

                  (i)   obligations of the United States or any agency thereof,
                        provided such obligations are backed by the full faith
                        and credit of the United States;

                  (ii)  general obligations of or obligations guaranteed by any
                        state of the United States or the District of Columbia
                        receiving the highest long-term debt rating of each
                        Rating Agency rating the Certificates;

                  (iii) commercial or finance company paper, other than
                        commercial or finance company paper issued by the
                        Depositor, the Trustee or any of its Affiliates, which
                        is then receiving the highest commercial or finance
                        company paper rating of each such Rating Agency;

                  (iv)  certificates of deposit, demand or time deposits, or
                        bankers' acceptances (other than banker's acceptances
                        issued by the Trustee or any of its Affiliates) issued
                        by any depository institution or trust company
                        incorporated under the laws of the United States or of
                        any state thereof and subject to supervision and
                        examination by federal and/or state banking authorities,
                        provided that the commercial paper and/or long term
                        unsecured debt obligations of such depository
                        institution or trust company are then rated one of the
                        two highest long-term and the highest short-term ratings
                        of each such Rating Agency for such securities;

                  (v)   demand or time deposits or certificates of deposit
                        issued by any bank or trust company or savings
                        institution to the extent that such deposits are fully
                        insured by the FDIC;

                  (vi)  guaranteed reinvestment agreements issued by any bank,
                        insurance company or other corporation rated in the two
                        highest long-term or the highest short-term ratings of
                        each Rating Agency containing, at the time of the
                        issuance of such agreements, such terms and conditions
                        as will not result in the downgrading or withdrawal of
                        the rating then assigned to the Certificates by any such
                        Rating Agency as evidenced by a letter from each Rating
                        Agency;

                  (vii) repurchase obligations with respect to any security
                        described in clauses (i) and (ii) above, in either case
                        entered into with a depository institution or trust
                        company (acting as principal) described in clause (v)
                        above;

                  (viii) securities (other than stripped bonds, stripped coupons
                        or instruments sold at a purchase price in excess of
                        115% of the face amount thereof) bearing interest or
                        sold at a discount issued by any corporation, other than
                        the Trustee or any of its Affiliates, incorporated under
                        the laws of the United States or any state thereof
                        which, at the time of such investment, have one of the
                        two highest long term ratings of each Rating Agency;

                                      -30-
<PAGE>

                  (ix)  interests in any money market fund (including those
                        managed or advised by the Trustee or its affiliates)
                        which at the date of acquisition of the interests in
                        such fund and throughout the time such interests are
                        held in such fund has the highest applicable long term
                        rating by each such Rating Agency; and

                  (x)   short term investment funds sponsored by any trust
                        company or national banking association incorporated
                        under the laws of the United States or any state
                        thereof, other than the Trustee or any of its
                        Affiliates, which on the date of acquisition has been
                        rated by each such Rating Agency in their respective
                        highest applicable rating category;

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or above par or (iii) is purchased at a deep discount; provided,
further, that no such instrument shall be a Permitted Investment (A) if such
instrument evidences principal and interest payments derived from obligations
underlying such instrument and the 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, or (B) if it may be redeemed at
a price below the purchase price (the foregoing clause (B) not to apply to
investments in units of money market funds pursuant to clause (ix) above); and
provided, further, (I) that no amount beneficially owned by any REMIC
(including, without limitation, any amounts collected by the Servicer but not
yet deposited in the Collection Account) may be invested in investments (other
than money market funds) treated as equity interests for Federal income tax
purposes, unless the Servicer shall receive an Opinion of Counsel, at the
expense of the party requesting that such investment be made, to the effect that
such investment will not adversely affect the status of the any REMIC provided
for herein as a REMIC under the Code or result in imposition of a tax on the
Trust Fund or any REMIC provided for herein and (II) each such investment must
be a "permitted investment" within the meaning of Section 860G(a)(5) of the
Code. Permitted Investments that are subject to prepayment or call may not be
purchased at a price in excess of par.

      Permitted Transferee: Any Person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code) that
is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
by section 511 of the Code on unrelated business taxable income) on any excess
inclusions (as defined in section 860E(c)(1) of the Code) with respect to a
Certificate, (iv) rural electric and telephone cooperatives described in section
1381(a)(2)(C) of the Code, and (v) a Person that is not a citizen or resident of
the United States, a corporation or partnership (or other entity treated as a
corporation or partnership for United States federal income tax purposes)
created or organized in or under the laws of the United States or any State
thereof or the District of Columbia or an estate whose income from sources
without the United States is includable in gross income for United States
federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States, or a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States persons have authority to control all
substantial decisions of the trust, unless, in the case of this clause (v), such
Person has furnished the transferor, the Trustee with a duly completed Internal
Revenue Service Form W-8ECI or applicable successor form. The terms "United
States," "State" and "International Organization" shall have the meanings set
forth in section 7701 of the Code. A corporation will not be treated as an
instrumentality of the United States or of any State thereof for these purposes
if all of its activities are subject to tax and, with the exception of the
Federal Home Loan Mortgage Corporation, a majority of its board of directors is
not selected by such government unit.

                                      -31-
<PAGE>

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

      Pool Stated Principal Balance: As to any Distribution Date, the aggregate
of the Stated Principal Balances, as of such Distribution Date, of the Mortgage
Loans that were Outstanding Mortgage Loans as of such date.

      Prepayment Assumption: A rate of prepayment, as described in the
Prospectus Supplement in the definition of "Modeling Assumptions," relating to
the Offered Certificates.

      Prepayment Charges: 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 or Mortgage, as applicable.

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

      Prepayment Interest Shortfall: With respect to any Distribution Date, for
each Mortgage Loan that was the subject of a Principal Prepayment in full (other
than a Principal Prepayment in full resulting from the purchase of a Mortgage
Loan pursuant to Section 2.02, 2.03 or 9.01 hereof and other than a Principal
Prepayment in full on a Mortgage Loan received during the period from and
including the first day to and including the 14th day of the month of such
Distribution Date), the amount, if any, by which (i) one month's interest at the
applicable Net Mortgage Rate on the Stated Principal Balance of such Mortgage
Loan as of the preceding Distribution Date exceeds (ii) the amount of interest
paid or collected in connection with such Principal Prepayment.

      Prepayment Period: As to any Distribution Date, the period beginning with
the opening of business on the 15th day of the calendar month preceding the
month in which such Distribution Date occurs (or in the case of the first
Distribution Date, beginning with the opening of business on the Cut-off Date)
and ending on the close of business on the 14th day of the month in which such
Distribution Date occurs.

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

      Principal Funds: With respect to the Mortgage Loans and any Distribution
Date, the sum, without duplication, of (1) the scheduled principal due during
the related Due Period and received before the related Servicer Remittance Date
or advanced on or before the related Servicer Remittance Date, (2) prepayments
collected in the related Prepayment Period, (3) the Stated Principal Balance of
each Mortgage Loan that was purchased by the Depositor or the Servicer during
the related Prepayment Period or, in the case of a purchase pursuant to Section
9.01, on the Business Day prior to such Distribution Date, (4) the amount, if
any, by which the aggregate unpaid principal balance of any Replacement Mortgage
Loan is less than the aggregate unpaid principal of the related Deleted Mortgage
Loans delivered by the Seller in connection with a substitution of a Mortgage
Loan pursuant to Section 2.03(c), (5) all

                                      -32-
<PAGE>

Liquidation Proceeds collected during the related Prepayment Period (to the
extent such Liquidation Proceeds related to principal), (6) all Subsequent
Recoveries received during the related Due Period and (7) all other collections
and recoveries in respect of principal during the related Prepayment Period less
(A) all Non-Recoverable Advances relating to principal with respect to the
Mortgage Loans and (B) other amounts reimbursable to the Servicer and the
Trustee pursuant to this Agreement allocable to principal.

      Principal Prepayment: Any Mortgagor payment or other recovery of (or
proceeds with respect to) principal on a Mortgage Loan (including Mortgage Loans
purchased or repurchased under Sections 2.02, 2.03, 3.12 and 9.01 hereof) that
is received or recovered in advance of its scheduled Due Date and 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.
Partial Principal Prepayments shall be applied by the Servicer in accordance
with the terms of the related Mortgage Note.

      Prospectus Supplement: The Prospectus Supplement dated July 2, 2004
relating to the public offering of the Offered Certificates.

      PUD: A Planned Unit Development.

      Purchase Price: With respect to any Mortgage Loan required to be
repurchased by the Seller or the applicable Transferor pursuant to Section 2.02
or 2.03 hereof or purchased by the Servicer pursuant to Section 3.12(c) hereof,
an amount equal to the sum of (i) 100% of the unpaid principal balance of the
Mortgage Loan as of the date of such purchase together with any unreimbursed
Servicing Advances, (ii) accrued interest thereon at the applicable Mortgage
Rate from (a) the date through which interest was last paid by the Mortgagor to
(b) the Due Date in the month in which the Purchase Price is to be distributed
to Certificateholders and (iii) any unreimbursed costs, penalties and/or damages
incurred by the Trust Fund in connection with any violation relating to such
Mortgage Loan of any predatory or abusive lending law.

      Rating Agency: Either of S&P or Moody's. If any such organization or its
successor is no longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization, or other comparable Person,
designated by the Depositor, notice of which designation shall be given to the
Trustee. References herein to a given rating category of a Rating Agency shall
mean such rating category without giving effect to any modifiers.

      Realized Loss: With respect to (1) a Liquidated Loan, the amount, if any,
by which the Stated Principal Balance and accrued interest thereon at the Net
Mortgage Rate exceeds the amount actually recovered by the Servicer with respect
thereto (net of reimbursement of Advances and Servicing Advances) at the time
such Mortgage Loan became a Liquidated Loan or (2) with respect to a Mortgage
Loan which is not a Liquidated Loan, any amount of principal that the Mortgagor
is no longer legally required to pay (except for the extinguishment of debt that
results from the exercise of remedies due to default by the Mortgagor).

      Record Date: With respect to any Distribution Date, the close of business
on the last Business Day of the month preceding the month in which the
applicable Distribution Date occurs (or, in the case of the first Distribution
Date, the Closing Date).

      Reference Banks: Barclays Bank PLC, JPMorgan Chase Bank, Citibank, N.A.,
Wells Fargo Bank, N.A. and NatWest, N.A.; provided that if any of the foregoing
banks are not suitable to serve as a Reference Bank, then any leading banks
selected by the Trustee which are engaged in transactions in Eurodollar deposits
in the international Eurocurrency market (i) with an established place of
business in London, England, (ii) whose quotations appear on the Reuters Screen
LIBO Page on the relevant Interest Determination Date and (iii) which have been
designated as such by the Trustee.

                                      -33-
<PAGE>

      Regular Certificate: Any one of the Class A, Class M, Class B, Class S and
Class X Certificates.

      Related Certificates: With respect to the Class MT3A Interest, the Class A
and Class R Certificates. With respect to the Class MT3B-1 Interest, the Class
B-1 Certificates. With respect to the Class MT3B-2 Interest, the Class B-2
Certificates. With respect to the Class MT3B-3 Interest, the Class B-3
Certificates. With respect to the Class MT3M-1 Interest, the Class M-1
Certificates. With respect to the Class MT3M-2 Interest, the Class M-2
Certificates.

      Relief Act: The Servicemembers Civil Relief Act or any similar state or
local law.

      Relief Act Shortfall: With respect to any Distribution Date and any
Mortgage Loan, any reduction in the amount of interest or principal collectible
on such Mortgage Loan for the most recently ended calendar month as a result of
the application of the Relief Act.

      REMIC: A "real estate mortgage investment conduit" within the meaning of
section 860D of the Code. References herein to "the REMICs" or "a REMIC" shall
mean any of or, as the context requires, all of) the Lower Tier REMIC, Middle
Tier REMIC 1, Middle Tier REMIC 2, Middle Tier REMIC 3 and the Upper Tier REMIC.

      REMIC Pass-Through Rate: The Pass-Through Rate for a Class of Related
Certificates calculated by replacing "Available Funds Cap" in such definition
with "Adjusted Net Rate."

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

      REMIC Regular Interests: (i) any of the rights under any of the
Certificates (other than the Class P Certificates, the Class R Certificate, the
Class S Certificates and the Class C Certificates) other than the rights in
interest rate cap contracts described in Section 2.07, (ii) each of the UTS
REMIC Components and (iii) the Uncertificated Class C Interest.

      Remittance Report: As defined in Section 4.04(j) hereof.

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

      Replacement Mortgage Loan: A Mortgage Loan substituted by the Seller for a
Deleted Mortgage Loan, which must, on the date of such substitution, as
confirmed in a Request for Release, substantially in the form of Exhibit I (1)
have a Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
less than 90% of the Stated Principal Balance of the Deleted Mortgage Loan; (2)
with respect to any Mortgage Loan, have a Mortgage Rate not less than or no more
than 1% per annum higher than the Mortgage Rate of the Deleted Mortgage Loan;
(3) have a similar or higher FICO score or credit grade than that of the Deleted
Mortgage Loan; (4) have a Combined Loan-to-Value Ratio no higher than that of
the Deleted Mortgage Loan; (5) have a remaining term to maturity no greater than
(and not more than one year less than) that of the Deleted Mortgage Loan; (6)
provide for a prepayment charge on terms substantially similar to those of the
prepayment charge, if any, of the Deleted Mortgage Loan; (7) have the same lien
priority as the Deleted Mortgage Loan; (8) constitute the same occupancy type as
the Deleted Mortgage Loan; and (9) comply with each representation and warranty
set forth in Section 2.03 hereof.

                                      -34-
<PAGE>

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

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

      Required Loss Percentage: For any Distribution Date, the applicable
percentage for such Distribution Date set forth in the following table:

<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING IN         REQUIRED LOSS PERCENTAGE
------------------------------         --------------------------
<S>                                    <C>
July 2007 -  June 2008                 5.45% with respect to July 2007,
                                       plus an additional 1/12th  of
                                       3.70% for each month thereafter

July 2008 - June 2009                  9.15% with respect to July 2008,
                                       plus an additional 1/12th  of
                                       2.35% for each month thereafter

July 2009 - June 2010                  11.50% with respect to July 2009,
                                       plus an additional 1/12th  of
                                       2.50% for each month thereafter

July 2010- - June 2011                 14.00% with respect to July 2010,
                                       plus an additional 1/12th  of
                                       0.75% for each month thereafter

July 2011 and thereafter               14.75%
</TABLE>

      Required Percentage: As of any Distribution Date following a Stepdown
Date, the quotient of (1) the excess of (A) the Stated Principal Balances of the
Mortgage Loans as of such Distribution Date, over (B) the Certificate Principal
Balance of the most senior Class of Certificates outstanding, prior to giving
effect to distributions to be made on such Distribution Date and (2) the Stated
Principal Balance of the Mortgage Loans as of such Distribution Date.

      Reserve Interest Rate: With respect to any Interest Determination Date,
the rate per annum that the Trustee determines to be (1) the arithmetic mean
(rounded upwards if necessary to the nearest whole multiple of 0.03125%) of the
one-month United States dollar lending rates which New York City banks selected
by the Trustee are quoting on the relevant Interest Determination Date to the
principal London offices of leading banks in the London interbank market or (2)
in the event that the Trustee can determine no such arithmetic mean, the lowest
one-month United States dollar lending rate which New York City banks selected
by the Trustee are quoting on such Interest Determination Date to leading
European banks.

      Residual Interest: An interest in the Upper Tier REMIC that is entitled to
all distributions on the Class R Certificate other than (i) distributions in
respect of the Class LTR Interest, the Class MT1R Interest, the Class MT2R
Interest and the Class MT3R Interest and (ii) all interest distributions on the
Class R Certificate attributable to an interest rate on the Class R Certificate
that exceeds the Adjusted Net Rate.

      Responsible Officer: When used with respect to the Trustee or Servicer,
any officer of the Trustee or Servicer with direct responsibility for the
administration of this Agreement and also means any other officer to whom, with
respect to a particular matter, such matter is referred because of such
officer's knowledge of and familiarity with the particular subject.

      Reuters Screen LIBO Page: The display designated as page "LIBO" on the
Reuters Monitor Money Rates Service (or such other page as may replace such LIBO
page on that service for the purpose of displaying London interbank offered
rates of major banks.

                                      -35-
<PAGE>

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

      Sale Agreement: The Mortgage Loan Sale and Assignment Agreement dated as
of July 1, 2004 between the Depositor and the  Seller.

      Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due on
any Due Date allocable to principal and/or interest on such Mortgage Loan.

      Section 302 Requirements: Any rules or regulations promulgated pursuant to
the Sarbanes-Oxley Act of 2002 (as such may be amended from time to time).

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

      Seller: Merrill Lynch Mortgage Capital, Inc., a Delaware corporation, or
its successors in interest.

      Servicer: Wilshire Credit Corporation, a Nevada corporation, or its
successor in interest.

      Servicer Advance Date: As to any Distribution Date, the related Servicer
Remittance Date.

      Servicer's Assignee: As defined in Section 10.14(a).

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

      Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Servicer of its
servicing obligations hereunder, including, but not limited to, the cost of (1)
the preservation, inspection, restoration and protection of a Mortgaged
Property, including without limitation advances in respect of real estate taxes
and assessments, (2) any collection, enforcement or judicial proceedings,
including without limitation foreclosures, collections and liquidations, (3) the
conservation, management, sale and liquidation of any REO Property, (4)
executing and recording instruments of satisfaction, deeds of reconveyance or
Assignments of Mortgage to the extent not otherwise recovered from the related
Mortgages or payable under this Agreement, (5) correcting errors of prior
servicers; costs and expenses charged to the Servicer by the Trustee; tax
tracking; title research; flood certifications; lender paid mortgage insurance,
(6) obtaining or correcting any legal documentation required to be included in
the Mortgage Files and reasonably necessary for the Servicer to perform its
obligations under this Agreement and (7) compliance with the obligations under
Sections 3.01 and 3.10.

      Servicing Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to the product of (x) the Servicing Fee Rate and (y) the Stated
Principal Balance of such Mortgage Loan as of the preceding Distribution Date
or, in the event of any payment of interest that accompanies a Principal
Prepayment in full made by the Mortgagor, interest at the Servicing Fee Rate on
the Stated Principal Balance of such Mortgage Loan as of the preceding
Distribution Date for the period covered by such payment of interest.

      Servicing Fee Rate: 0.520% per annum.

      Servicing Officer: Any officer of the Servicer involved in, or responsible
for, the administration and servicing of the Mortgage Loans whose name and
facsimile signature appear on a list of servicing

                                      -36-
<PAGE>

officers furnished to the Trustee by the Servicer on the Closing Date pursuant
to this Agreement, as such lists may from time to time be amended.

      Servicing Transfer Costs: In the event that the Servicer does not
reimburse the Trustee under the this Agreement, all costs associated with the
transfer of servicing from the Servicer, including, without limitation, any
costs or expenses associated with the termination of the Servicer, the
appointment of a successor servicer, the complete transfer of all servicing data
and the completion, correction or manipulation of such servicing data as may be
required by the Trustee or any successor servicer to correct any errors or
insufficiencies in the servicing data or otherwise to enable the Trustee or
successor servicer to service the Mortgage Loans properly and effectively.

      SFAS 140: Statement of Financial Accounting Standard No. 140, Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities dated September 2000, published by the Financial Accounting
Standards Board of the Financial Accounting Foundation.

      Startup Day: As defined in Section 2.07 hereof.

      Stated Principal Balance: With respect to any Mortgage Loan or related REO
Property (1) as of the Cut-off Date, the Cut-off Date Principal Balance thereof,
and (2) as of any Distribution Date, such Cut-off Date Principal Balance, minus
the sum of (A) the principal portion of the Scheduled Payments (x) due with
respect to such Mortgage Loan during each Due Period ending prior to such
Distribution Date and (y) that were received by the Servicer as of the close of
business on the Determination Date related to such Distribution Date or with
respect to which Advances were made on the Servicer Advance Date prior to such
Distribution Date and (B) all Principal Prepayments with respect to such
Mortgage Loan received on or prior to the last day of the related Prepayment
Period, and all Liquidation Proceeds to the extent applied by the Servicer as
recoveries of principal in accordance with Section 3.12 with respect to such
Mortgage Loan, that were received by the Servicer as of the close of business on
the last day of the related Due Period. Notwithstanding the foregoing, the
Stated Principal Balance of a Liquidated Loan shall be deemed to be zero.

      Stepdown Date: The later to occur of (1) the Distribution Date in July
2007 or (2) the first Distribution Date on which (A) the sum of the Class A
Certificate Principal Balance and the Class R Certificate Principal Balance
(reduced by the Principal Funds with respect to such Distribution Date) is less
than or equal to (B) 22.80% of the Stated Principal Balances of the Mortgage
Loans as of such Distribution Date.

      Subordinated Certificates: The Class M and Class B Certificates.

      Subsequent Recovery: Any amount received on a Mortgage Loan (net of
amounts reimbursed to the Servicer related to Liquidated Mortgage Loans)
subsequent to such Mortgage Loan being determined to be a Liquidated Mortgage
Loan.

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

      Substitution Adjustment Amount: The meaning ascribed to such term pursuant
to Section 2.03(c).

      Tax Matters Person: The Person designated as "tax matters person" in the
manner provided under Treasury regulation Section 1.860F-4(d) and Treasury
regulation Section 301.6231(a)(7)-1.

      Transaction Oversight Manager: Clayton Portfolio Reconnaissance Services,
Inc., a Delaware corporation, and its successors in interest.

                                      -37-
<PAGE>

      Transaction Oversight Agreement: That certain transaction oversight
agreement, dated as of July 7, 2004, among the Depositor, the Trustee and the
Transaction Oversight Manager.

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

      Transfer Agreement: Each document set out on Exhibit J hereto pursuant to
which the Seller acquired any Mortgage Loan from the Transferor of such Mortgage
Loan.

      Transferor: Any originator of a Mortgage Loan.

      Trigger Event: With respect to the Certificates after the Stepdown Date, a
Distribution Date on which (1) the quotient of (A) the aggregate Stated
Principal Balance of all Mortgage Loans which are 60 or more days Delinquent
measured on a rolling three month basis (including, for the purposes of this
calculation, Mortgage Loans in foreclosure and REO Properties) and (B) the
Stated Principal Balance of the Mortgage Loans as of the last day of the
preceding calendar month, equals or exceeds the product of (i) 8.00% and (ii)
Required Percentage or (2) the quotient (expressed as a percentage) of (A) the
aggregate Realized Losses incurred from the Cut-off Date through the last day of
the calendar month preceding such Distribution Date and (B) the aggregate
principal balance of the Mortgage Loans as of the Cut-off Date exceeds the
Required Loss Percentage.

      Trust Fund: The corpus of the trust (the "Merrill Lynch Mortgage Investors
Trust, Series 2004-SL1") created hereunder consisting of (i) the Mortgage Loans
and all interest and principal received on or with respect thereto on and after
the Cut-off Date to the extent not applied in computing the Cut-off Date
Principal Balance thereof, exclusive of interest not required to be deposited in
the Collection Account; (ii) the Collection Account and the Certificate Account
and all amounts deposited therein pursuant to the applicable provisions of this
Agreement; (iii) property that secured a Mortgage Loan and has been acquired by
foreclosure, deed in lieu of foreclosure or otherwise; (iv) the mortgagee's
rights under the Insurance Policies with respect to the Mortgage Loans; and (v)
all proceeds of the conversion, voluntary or involuntary, of any of the
foregoing into cash or other liquid property.

      Trustee: Wells Fargo Bank, N.A., a national banking association, not in
its individual capacity, but solely in its capacity as trustee for the benefit
of the Certificateholders under this Agreement, and any successor thereto, and
any corporation or national banking association resulting from or surviving any
consolidation or merger to which it or its successors may be a party and any
successor trustee as may from time to time be serving as successor trustee
hereunder.

      Uncertificated Class C Interest: An uncertificated interest having (i) the
same rights to payments as the Class C Certificates, and (ii) the rights to the
payments treated as distributed to the Class C Certificates under Section
2.07(d), provided, however, that such interest shall have no obligation to make
any payments treated as paid by the Class C Certificates pursuant to interest
rate cap agreements under Section 2.07(d).

      United States Person: (i) A citizen or resident of the United States, (ii)
a corporation, partnership or other entity treated as a corporation or
partnership for federal income tax purposes organized in or under the laws of
the United States or any state thereof or the District of Columbia (unless, in
the case of a partnership, Treasury regulations provide otherwise), (iii) an
estate the income of which is includible in gross income for United States tax
purposes regardless of its source or (iv) a trust if a court within the United
States is able to exercise primary supervision over the administration of the
trust and one or more United States persons have authority to control all
substantial decisions of the trust. Notwithstanding the preceding sentence, to
the extent provided in Treasury regulations, certain trusts in existence on
August

                                      -38-
<PAGE>

20, 1996, and treated as United States persons prior to such date, that elect to
continue to be treated as United States persons will also be United States
Persons.

      Unpaid Realized Loss Amount: The Class M-1 Unpaid Realized Loss Amount,
Class M-2 Unpaid Realized Loss Amount, Class B-1 Unpaid Realized Loss Amount,
Class B-2 Unpaid Realized Loss Amount, Class B-3 Unpaid Realized Loss Amount,
and Class C Unpaid Realized Loss Amount, collectively.

      Upper Tier REMIC: As described in the Preliminary Statement and Section
2.07.

      USAP Report: A report in compliance with the Uniform Single Attestation
Program for Mortgage Bankers delivered in accordance with Section 3.18.

      UTS-A Component: An interest-only "regular interest" in the Upper Tier
REMIC entitled to the interest, if any, that accrues on the Class MT3A Interest
at a rate in excess of One-Month LIBOR plus the Class A Margin (multiplying,
solely for the first Distribution Date, One-Month LIBOR plus such Margin by a
fraction, the numerator of which is the number of days from and including the
Closing Date through and including the day immediately preceding the first
Distribution Date and the denominator of which is 30). The UTS-A Component is
represented by the Class S Certificates.

      UTS-B1 Component: An interest-only "regular interest" in the Upper Tier
REMIC entitled to the interest, if any, that accrues on the Class MT3B-1
Interest at a rate in excess of One-Month LIBOR plus the Class B-1 Margin
(multiplying, solely for the first Distribution Date, One-Month LIBOR plus such
Margin by a fraction, the numerator of which is the number of days from and
including the Closing Date through and including the day immediately preceding
the first Distribution Date and the denominator of which is 30). The UTS-B1
Component is represented by the Class S Certificates.

      UTS-B2 Component: An interest-only "regular interest" in the Upper Tier
REMIC entitled to the interest, if any, that accrues on the Class MT3B-2
Interest at a rate in excess of One-Month LIBOR plus the Class B-2 Margin
(multiplying, solely for the first Distribution Date, One-Month LIBOR plus such
Margin by a fraction, the numerator of which is the number of days from and
including the Closing Date through and including the day immediately preceding
the first Distribution Date and the denominator of which is 30). The UTS-B2
Component is represented by the Class S Certificates.

      UTS-B3 Component: An interest-only "regular interest" in the Upper Tier
REMIC entitled to the interest, if any, that accrues on the Class MT3B-3
Interest at a rate in excess of One-Month LIBOR plus the Class B-3 Margin
(multiplying, solely for the first Distribution Date, One-Month LIBOR plus such
Margin by a fraction, the numerator of which is the number of days from and
including the Closing Date through and including the day immediately preceding
the first Distribution Date and the denominator of which is 30). The UTS-B3
Component is represented by the Class S Certificates.

      UTS-M1 Component: An interest-only "regular interest" in the Upper Tier
REMIC entitled to the interest, if any, that accrues on the Class MT3M-1
Interest at a rate in excess of One-Month LIBOR plus the Class M-1 Margin
(multiplying, solely for the first Distribution Date, One-Month LIBOR plus such
Margin by a fraction, the numerator of which is the number of days from and
including the Closing Date through and including the day immediately preceding
the first Distribution Date and the denominator of which is 30). The UTS-M1
Component is represented by the Class S Certificates.

      UTS-M2 Component: An interest-only "regular interest" in the Upper Tier
REMIC entitled to the interest, if any, that accrues on the Class MT3M-2
Interest at a rate in excess of One-Month LIBOR plus the Class M-2 Margin
(multiplying, solely for the first Distribution Date, One-Month LIBOR plus

                                      -39-
<PAGE>

such Margin by a fraction, the numerator of which is the number of days from and
including the Closing Date through and including the day immediately preceding
the first Distribution Date and the denominator of which is 30). The UTS-M2
Component is represented by the Class S Certificates.

      UTS REMIC Components: Each of the UTS-A Component, the UTS-M1 Component,
the UTS-M2 Component, the UTS-B1 Component, the UTS-B2 Component and the UTS-B3
Component.

      Voting Rights: The portion of the voting rights of all the Certificates
that is allocated to any of the Certificates for purposes of the voting
provisions hereunder. Voting Rights allocated to each Class of Certificates
shall be allocated as follows: (1) 96% to the Class A, Class M-1, Class M-2,
Class R, Class B-1, Class B-2 and Class B-3 Certificates, with the allocation
among such Certificates to be in proportion to the Class Certificate Principal
Balance of each Class relative to the Class Certificate Principal Balance of all
other Classes and (2) each Class of the Class C, Class P, Class S, and Class X
will be allocated 1% of the Voting Rights Certificates. Voting Rights will be
allocated among the Certificates of each such Class in accordance with their
respective Percentage Interests.

                               ARTICLE II

                         CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

      SECTION 2.01 Conveyance of Mortgage Loans.

      The Depositor, concurrently with the execution and delivery hereof, does
hereby sell, transfer, assign, set over and convey to the Trustee without
recourse all the right, title and interest of the Depositor in and to the assets
of the Trust Fund. Such assignment includes all interest and principal received
on or with respect to the Mortgage Loans on or after the Cut-off Date (other
than Scheduled Payments due on the Mortgage Loans on or before the Cut-off
Date).

      In connection with such assignment, the Depositor does hereby deliver to,
and deposit with, the Trustee, the following documents or instruments with
respect to each Mortgage Loan:

            (A)   The Original Mortgage Note endorsed in blank or, "Pay to the
      order of Wells Fargo Bank, N.A., as trustee, without recourse" together
      with all riders thereto. The Mortgage Note shall include all intervening
      endorsements showing a complete chain of the title from the Transferor to
      [____________________].

            (B)   Except as provided below and for each Mortgage Loan that is
      not a MERS Loan, the original recorded Mortgage together with all riders
      thereto, with evidence of recording thereon, or, if the original Mortgage
      has not yet been returned from the recording office, a copy of the
      original Mortgage together with all riders thereto certified to be true
      copy of the original of the Mortgage that has been delivered for recording
      in the appropriate recording office of the jurisdiction in which the
      Mortgaged Property is located and in the case of each MERS Loan, the
      original Mortgage together with all riders thereto, noting the presence of
      the MIN of the Loan and either language indicating that the Mortgage Loan
      is a MOM Loan or if the Mortgage Loan was not a MOM Loan at origination,
      the original Mortgage and the assignment thereof to MERS, with evidence of
      recording indicated thereon, or a copy of the Mortgage certified by the
      public recording office in which such Mortgage has been recorded.

            (C)   In the case of each Mortgage Loan that is not a MERS Loan, the
      original Assignment of each Mortgage in blank or, to "Wells Fargo Bank,
      N.A., as trustee."

                                      -40-
<PAGE>

            (D)   The original policy of title insurance (or a preliminary title
      report, commitment or binder if the original title insurance policy has
      not been received from the title insurance company).

            (E)   Originals of any intervening assignments of the Mortgage, with
      evidence of recording thereon or, if the original intervening assignment
      has not yet been returned from the recording office, a copy of such
      assignment certified to be a true copy of the original of the assignment
      which has been sent for recording in the appropriate jurisdiction in which
      the Mortgaged Property is located.

            (F)   Originals of all assumption and modification agreements, if
      any.

      If in connection with any Mortgage Loan, the Depositor cannot deliver the
Mortgage, Assignments of Mortgage or assumption, consolidation or modification,
as the case may be, with evidence of recording thereon, if applicable,
concurrently with the execution and delivery of this Agreement solely because of
a delay caused by the public recording office where such Mortgage, Assignments
of Mortgage or assumption, consolidation or modification, as the case may be,
has been delivered for recordation, the Depositor shall deliver or cause to be
delivered to the Trustee written notice stating that such Mortgage or
assumption, consolidation or modification, as the case may be, has been
delivered to the appropriate public recording office for recordation.
Thereafter, the Depositor shall deliver or cause to be delivered to the Trustee
such Mortgage, Assignments of Mortgage or assumption, consolidation or
modification, as the case may be, with evidence of recording indicated thereon,
if applicable, upon receipt thereof from the public recording office. To the
extent any required endorsement is not contained on a Mortgage Note or an
Assignment of Mortgage, the Depositor shall make or cause such endorsement to be
made.

      With respect to any Mortgage Loan, none of the Depositor, the Servicer, or
the Trustee shall be obligated to cause to be recorded the Assignment of
Mortgage referred to in this Section 2.01. In the event an Assignment of
Mortgage is not recorded, the Servicer shall have no liability for its failure
to receive and act on notices related to such Assignment of Mortgage.

      The ownership of each Mortgage Note, the Mortgage and the contents of the
related Mortgage File is vested in the Trustee on behalf of the
Certificateholders. Neither the Depositor nor the Servicer shall take any action
inconsistent with such ownership and shall not claim any ownership interest
therein. The Depositor and the Servicer shall respond to any third party
inquiries with respect to ownership of the Mortgage Loans by stating that such
ownership is held by the Trustee on behalf of the Certificateholders. Mortgage
documents relating to the Mortgage Loans not delivered to the Trustee are and
shall be held in trust by the Servicer, for the benefit of the Trustee as the
owner thereof, and the Servicer's possession of the contents of each Mortgage
File so retained is for the sole purpose of servicing the related Mortgage Loan,
and such retention and possession by the Servicer, is in a custodial capacity
only. The Depositor agrees to take no action inconsistent with the Trustee's
ownership of the Mortgage Loans, to promptly indicate to all inquiring parties
that the Mortgage Loans have been sold and to claim no ownership interest in the
Mortgage Loans.

      It is the intention of this Agreement that the conveyance of the
Depositor's right, title and interest in and to the Trust Fund pursuant to this
Agreement shall constitute a purchase and sale and not a loan. If a conveyance
of Mortgage Loans from the Seller to the Depositor is characterized as a pledge
and not a sale, then the Depositor shall be deemed to have transferred to the
Trustee all of the Depositor's right, title and interest in, to and under the
obligations of the Seller deemed to be secured by said pledge; and it is the
intention of this Agreement that the Depositor shall also be deemed to have
granted to the Trustee a first priority security interest in all of the
Depositor's right, title, and interest in, to and under the obligations of

                                      -41-
<PAGE>

the Seller to the Depositor deemed to be secured by said pledge and that the
Trustee shall be deemed to be an independent custodian for purposes of
perfection of the security interest granted to the Depositor. If the conveyance
of the Mortgage Loans from the Depositor to the Trustee is characterized as a
pledge, it is the intention of this Agreement that this Agreement shall
constitute a security agreement under applicable law, and that the Depositor
shall be deemed to have granted to the Trustee a first priority security
interest in all of the Depositor's right, title and interest in, to and under
the Mortgage Loans, all payments of principal of or interest on such Mortgage
Loans, all other rights relating to and payments made in respect of the Trust
Fund, and all proceeds of any thereof. If the trust created by this Agreement
terminates prior to the satisfaction of the claims of any Person in any
Certificates, the security interest created hereby shall continue in full force
and effect and the Trustee shall be deemed to be the collateral agent for the
benefit of such Person.

      In addition to the conveyance made in the first paragraph of this Section
2.01, the Depositor does hereby convey, assign and set over to the Trustee for
the benefit of the Certificateholders its rights and interests under the Sale
Agreement, including the Depositor's right, title and interest in the
representations and warranties contained in the Sale Agreement, the rights in
the Transfer Agreements described therein, and the benefit of the repurchase
obligations and the obligation of the Seller contained in the Sale Agreement to
take, at the request of the Depositor or the Trustee, all action on its part
which is reasonably necessary to ensure the enforceability of a Mortgage Loan.
The Trustee hereby accepts such assignment, and shall be entitled to exercise
all rights of the Depositor under the Sale Agreement as if, for such purpose, it
were the Depositor. The foregoing sale, transfer, assignment, set-over, deposit
and conveyance does not and is not intended to result in creation or assumption
by the Trustee of any obligation of the Depositor, the Seller, or any other
Person in connection with the Mortgage Loans or any other agreement or
instrument relating thereto.

      The Trustee, on behalf of the Trust Fund, is hereby authorized and
directed to enter into the Transaction Oversight Agreement. It is not intended
for the Trustee to receive reports or other information from the Transaction
Oversight Manager and the Trustee has no responsibility or liability to review
any such reports or information or to monitor or supervise the activities of the
Transaction Oversight Manager.

      SECTION 2.02 Acceptance by the Trustee of the Mortgage Loans.

      Except as set forth in the Exception Report delivered contemporaneously
herewith (the "Exception Report"), the Trustee acknowledges receipt of the
Mortgage Note for each Mortgage Loan and delivery of a Mortgage File (but does
not acknowledge receipt of all documents required to be included in such
Mortgage File) with respect to each Mortgage Loan and declares that it holds and
will hold such documents and any other documents constituting a part of the
Mortgage Files delivered to it in trust for the use and benefit of all present
and future Certificateholders. The Depositor will cause the Seller to repurchase
any Mortgage Loan to which a material exception was taken in the Exception
Report unless such exception is cured to the satisfaction of the Trustee within
45 Business Days of the Closing Date.

      The Trustee agrees, for the benefit of Certificateholders, to review each
Mortgage File delivered to it within 60 days after the Closing Date to ascertain
and to certify, within 70 days of the Closing Date, to the Depositor and the
Servicer that all documents required by Section 2.01 have been executed and
received, and that such documents relate to the Mortgage Loans identified in
Exhibit B-1 that have been conveyed to it. If the Trustee finds any document or
documents constituting a part of a Mortgage File to be missing or defective
(that is, mutilated, damaged, defaced or unexecuted) in any material respect,
the Trustee shall promptly (and in any event within no more than five Business
Days) after such finding so notify the Servicer, the Servicer, the Seller and
the Depositor. In addition, the Trustee shall also notify

                                      -42-
<PAGE>

the Servicer, the Seller and the Depositor if the original Mortgage with
evidence of recording thereon with respect to a Mortgage Loan is not received
within 70 days of the Closing Date; if it has not been received because of a
delay caused by the public recording office where such Mortgage has been
delivered for recordation, the Depositor shall deliver or cause to be delivered
to the Trustee written notice stating that such Mortgage has been delivered to
the appropriate public recording office for recordation and thereafter the
Depositor shall deliver or cause to be delivered such Mortgage with evidence of
recording thereon upon receipt thereof from the public recording office. The
Trustee shall request that the Seller correct or cure such omission, defect or
other irregularity, or substitute a Mortgage Loan pursuant to the provisions of
Section 2.03(c), within 90 days from the date the Seller was notified of such
omission or defect and, if the Seller does not correct or cure such omission or
defect within such period, that the Seller purchase such Mortgage Loan from the
Trust Fund within 90 days from the date the Trustee notified the Seller of such
omission, defect or other irregularity at the Purchase Price of such Mortgage
Loan. The Purchase Price for any Mortgage Loan purchased pursuant to this
Section 2.02 shall be paid to the Servicer and deposited by the Servicer in the
Certificate Account or Collection Account, as appropriate, promptly upon
receipt, and, upon receipt by the Trustee of written notification of such
deposit signed by a Servicing Officer, the Trustee, upon receipt of a Request
for Release, shall promptly release to the Seller the related Mortgage File and
the Trustee shall execute and deliver such instruments of transfer or
assignment, without recourse, as shall be requested by the Seller and necessary
to vest in the Seller or its designee, as the case may be, any Mortgage Loan
released pursuant hereto, and the Trustee shall have no further responsibility
with regard to such Mortgage Loan. It is understood and agreed that the
obligation of the Seller to purchase, cure or substitute any Mortgage Loan as to
which a material defect in or omission of a constituent document exists shall
constitute the sole remedy respecting such defect or omission available to the
Trustee on behalf of Certificateholders. The preceding sentence shall not,
however, limit any remedies available to the Certificateholders, the Depositor
or the Trustee pursuant to the Sale Agreement, Transfer Agreement or any Bring
Down Letter. The Trustee shall be under no duty or obligation to inspect, review
and examine such documents, instruments, certificates or other papers to
determine that they are genuine, enforceable, recordable or appropriate to the
represented purpose, or that they have actually been recorded, or that they are
other than what they purport to be on their face. The Servicer and the Trustee
shall keep confidential the name of each Mortgagor except as required by this
Agreement and the Servicer and the Trustee shall not solicit any such Mortgagor
for the purpose of refinancing the related Mortgage Loan; notwithstanding
anything herein to the contrary, the foregoing shall not be construed to
prohibit (i) disclosure of any and all information that is or becomes publicly
known, or information obtained by the Trustee from sources other than the other
parties hereto, (ii) disclosure of any and all information (A) if required to do
so by any applicable law, rule or regulation, (B) to any government agency or
regulatory body having or claiming authority to regulate or oversee any respects
of the Trustee's business or that of its affiliates, (C) pursuant to any
subpoena, civil investigation demand or similar demand or request of any court,
regulatory authority, arbitrator or arbitration to which Trustee or any
affiliate or an officer, director, employer or shareholder thereof is a party or
(D) to any affiliate, independent or internal auditor, agent, employee or
attorney of the Trustee having a need to know the same, provided that the
Trustee advises such recipient of the confidential nature of the information
being disclosed, or (iii) any other disclosure authorized by the Depositor.

      Within 70 days of the Closing Date, the Trustee shall deliver to the
Depositor and the Servicer the Trustee's Certification, substantially in the
form of Exhibit D attached hereto, evidencing the completeness of the Mortgage
Files, with any exceptions noted thereto.

      SECTION 2.03 Representations, Warranties and Covenants of the Depositor.

            (a)   The Depositor hereby represents and warrants to the Servicer
and the Trustee as follows, as of the date hereof:

                                      -43-
<PAGE>

            (ii)  The Depositor is duly organized and is validly existing as a
      corporation in good standing under the laws of the State of Delaware and
      has full power and authority (corporate and other) necessary to own or
      hold its properties and to conduct its business as now conducted by it and
      to enter into and perform its obligations under this Agreement and the
      Sale Agreement.

            (iii) The Depositor has the full corporate power and authority to
      execute, deliver and perform, and to enter into and consummate the
      transactions contemplated by, this Agreement and the Sale Agreement and
      has duly authorized, by all necessary corporate action on its part, the
      execution, delivery and performance of this Agreement and the Sale
      Agreement; and this Agreement and the Sale Agreement, assuming the due
      authorization, execution and delivery hereof by the other parties hereto,
      constitutes a legal, valid and binding obligation of the Depositor,
      enforceable against the Depositor in accordance with its terms, subject,
      as to enforceability, to (i) bankruptcy, insolvency, reorganization,
      moratorium and other similar laws affecting creditors' rights generally
      and (ii) general principles of equity, regardless of whether enforcement
      is sought in a proceeding in equity or at law.

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

            (v)   No litigation is pending, or, to the best of the Depositor's
      knowledge, threatened, against the Depositor that would materially and
      adversely affect the execution, delivery or enforceability of this
      Agreement and the Sale Agreement or the ability of the Depositor to
      perform its obligations under this Agreement and the Sale Agreement in
      accordance with the terms hereof.

            (vi)  No consent, approval, authorization or order of any court or
      governmental agency or body is required for the execution, delivery and
      performance by the Depositor of, or compliance by the Depositor with, this
      Agreement and the Sale Agreement or the consummation of the transactions
      contemplated hereby, or if any such consent, approval, authorization or
      order is required, the Depositor has obtained the same. The Depositor
      hereby represents and warrants to the Trustee with respect to each
      Mortgage Loan as of the Closing Date, and following the transfer of the
      Mortgage Loans to it by the Seller, the Depositor had good title to the
      Mortgage Loans and the Mortgage Notes were subject to no offsets, claims,
      liens, mortgage, pledge, charge, security interest, defenses or
      counterclaims.

            (b)   The representations and warranties of each Transferor with
respect to the related Mortgage Loans in the applicable Transfer Agreement,
which have been assigned to the Trustee hereunder, were made as of the date
specified in the applicable Transfer Agreement and brought forward to the
Closing Date pursuant to the related Bring Down Letter. The representations and
warranties of

                                      -44-
<PAGE>

each Transferor with respect to the Mortgage Loans contained in the Bring Down
Letter were made as of the Closing Date. The representations and warranties of
the Seller with respect to the Mortgage Loans contained in the Sale Agreement
were made as of the Closing Date. To the extent that any fact, condition or
event with respect to a Mortgage Loan constitutes a breach of both (i) a
representation or warranty of the applicable Transferor under the applicable
Transfer Agreement and (ii) a representation or warranty of the Seller under the
Sale Agreement, the obligations of the Seller under the Sale Agreement shall be
enforced and to the extent the Seller does not fulfill its contracted
obligations then the obligations of the applicable Transferor shall be enforced
under any applicable representation or warranty made by it. The Trustee
acknowledges that the Seller shall have no obligation or liability with respect
to any breach of a representation or warranty made by it with respect to the
Mortgage Loans if the fact, condition or event constituting such breach also
constitutes a breach of a representation or warranty made by the related
Transferor in the related Transfer Agreement, without regard to whether the
Transferors fulfills its contractual obligations in respect of such
representation or warranty. The Trustee also acknowledges that the Seller shall
have no obligation or liability with respect to any breach of a representation
or warranty made solely by the Transferors with respect to the Mortgage Loans,
without regard to whether the related Transferor fulfills its contractual
obligations in respect of such representation or warranty. The Trustee further
acknowledges that the Depositor shall have no obligation or liability with
respect to any breach of any representation or warranty with respect to the
Mortgage Loans under any circumstances.

      In addition to the representations and warranties of the Transferors in
the Transfer Agreements that were brought forward to the Closing Date pursuant
to the Bring Down Letter, with respect to each Mortgage Loan, each Transferor
made certain additional covenants regarding such Mortgage Loan, as set forth in
the related Transfer Agreement. With respect to any breach of such additional
covenants that materially and adversely affects the interests of the
Certificateholders in such Mortgage Loan, the Seller shall (1) use reasonable
efforts to enforce such covenant against the related Transferor and (2) if the
Seller successfully enforces any obligation of the related Transferor to
repurchase such Mortgage Loan, the Seller shall repurchase such Mortgage Loan in
accordance with this Section 2.03. If the Seller does not successfully enforce
the obligation, if any, of the Transferor to repurchase a Mortgage Loan with
respect to any breach of any such additional covenants, the Seller shall have no
obligation or right to repurchase or cure such Mortgage Loan.

            (c)   Upon discovery by any of the Depositor, the Servicer or the
Trustee of a breach of any of such representations and warranties that adversely
and materially affects the value of the related Mortgage Loan, Prepayment
Charges or the interests of the Certificateholders, the party discovering such
breach shall give prompt written notice to the other parties. Within 90 days of
the discovery of such breach of any representation or warranty, the applicable
Transferor or the Seller, as applicable, shall either (a) cure such breach in
all material respects, (b) repurchase such Mortgage Loan or any property
acquired in respect thereof from the Trustee at the Purchase Price or (c) within
the two year period following the Closing Date, substitute a Replacement
Mortgage Loan for the affected Mortgage Loan. In the event of discovery of a
breach of any representation and warranty of any Transferor or the Seller, the
Trustee's rights shall be enforced under the applicable Transfer Agreement and
the Sale Agreement for the benefit of Certificateholders. If a breach of the
representations and warranties set forth in the Transfer Agreement hereof exists
solely due to the unenforceability of a Prepayment Charge, the Trustee or the
other party having notice thereof shall notify the Servicer thereof and not seek
to enforce the repurchase remedy provided for herein unless such Mortgage Loan
is not current. In the event of a breach of the representations and warranties
with respect to the Mortgage Loans set forth in a Transfer Agreement, the
Trustee shall enforce the right of the Trust Fund to be indemnified for such
breach of representation and warranty. In the event that such breach relates
solely to the unenforceability of a Prepayment Charge, amounts received in
respect of such indemnity up to the amount of such Prepayment Charge shall be
distributed pursuant to Section 4.04(b)(i). As provided in the Sale Agreement,
if the Transferor substitutes for a Mortgage Loan for which there is a breach of
any representations and warranties in the

                                      -45-
<PAGE>

related Transfer Agreement which adversely and materially affects the value of
such Mortgage Loan and such substitute mortgage loan is not a Replacement
Mortgage Loan, under the terms of the Sale Agreement, the Seller will, in
exchange for such substitute Mortgage Loan, (i) provide the applicable Purchase
Price for the affected Mortgage Loan or (ii) within two years of the Closing
Date, substitute such affected Mortgage Loan with a Replacement Mortgage Loan.
Any such substitution shall not be effected prior to the additional delivery to
the Trustee of a Request for Release substantially in the form of Exhibit I and
shall not be effected unless it is within two years of the Startup Day. The
Seller indemnifies and holds the Trust Fund, the Trustee, the Depositor, the
Servicer and each Certificateholder harmless against any and all taxes, claims,
losses, penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any other costs, fees and expenses that the Trust Fund, the
Trustee, the Depositor, the Servicer and any Certificateholder may sustain in
connection with any actions of the Seller relating to a repurchase of a Mortgage
Loan other than in compliance with the terms of this Section 2.03 and the Sale
Agreement, to the extent that any such action causes (i) any federal or state
tax to be imposed on the Trust Fund or any REMIC provided for herein, including
without limitation, any federal tax imposed on "prohibited transactions" under
Section 860F(a)(1) of the Code or on "contributions after the startup day" under
Section 860(d)(1) of the Code, or (ii) any REMIC created hereunder to fail to
qualify as a REMIC at any time that any Certificate is outstanding. In
furtherance of the foregoing, if the Transferor or the Seller, as applicable, is
not a member of MERS and repurchases a Mortgage Loan which is registered on the
MERS System, the Transferor or the Seller, as applicable, at its own expense and
without any right of reimbursement, shall cause MERS to execute and deliver an
assignment of the Mortgage in recordable form to transfer the Mortgage from MERS
to the Transferor or the Seller, as applicable, and shall cause such Mortgage to
be removed from registration on the MERS System in accordance with MERS' rules
and regulations.

      With respect to any Mortgage Loan repurchased by the Seller pursuant to
the Sale Agreement or by any Transferor pursuant to the applicable Transfer
Agreement, the principal portion of the funds received by the Trustee, in
respect of such repurchase of a Mortgage Loan will be considered a Principal
Prepayment and shall be deposited in the Certificate Account pursuant to Section
3.05. The Trustee, upon receipt of the full amount of the Purchase Price for a
Deleted Mortgage Loan, or upon receipt of the Mortgage File for a Replacement
Mortgage Loan substituted for a Deleted Mortgage Loan, shall release or cause to
be released and reassign to the Seller or the applicable Transferor, as
applicable, the related Mortgage File for the Deleted Mortgage Loan and shall
execute and deliver such instruments of transfer or assignment, in each case
without recourse, representation or warranty, as shall be necessary to vest in
such party or its designee or assignee title to any Deleted Mortgage Loan
released pursuant hereto, free and clear of all security interests, liens and
other encumbrances created by this Agreement, which instruments shall be
prepared by the Trustee, and the Trustee shall not have any further
responsibility with respect to the Mortgage File relating to such Deleted
Mortgage Loan.

      With respect to each Replacement Mortgage Loan to be delivered to the
Trustee pursuant to the terms of this Article II in exchange for a Deleted
Mortgage Loan: (i) the applicable Transferor or the Seller, as applicable, must
deliver to the Trustee (or its custodian) the Mortgage File for the Replacement
Mortgage Loan containing the documents set forth in Section 2.01 along with a
written certification certifying as to the Mortgage Loan satisfying all
requirements under the definition of Replacement Mortgage Loan and the delivery
of such Mortgage File and containing the granting language set forth in Section
2.01; and (ii) the Depositor will be deemed to have made, with respect to such
Replacement Mortgage Loan, each of the representations and warranties made by it
with respect to the related Deleted Mortgage Loan. The Trustee shall review the
Mortgage File with respect to each Replacement Mortgage Loan and certify to the
Depositor that all documents required by Section 2.01 have been executed and
received.

                                      -46-
<PAGE>

      For any month in which the Seller substitutes one or more Replacement
Mortgage Loans for one or more Deleted Mortgage Loans, the Seller will determine
the amount (if any) by which the aggregate principal balance of all such
Replacement Mortgage Loans as of the date of substitution and the aggregate
Prepayment Charges with respect to such Replacement Mortgage Loans is less than
the aggregate Stated Principal Balance (after application of the principal
portion of the Scheduled Payment due in the month of substitution) and aggregate
Prepayment Charges of all such Deleted Mortgage Loans. An amount equal to the
aggregate of the deficiencies described in the preceding sentence (such amount,
the "Substitution Adjustment Amount") plus an amount equal to any unreimbursed
costs, penalties and/or damages incurred by the Trust Fund in connection with
any violation relating to such Deleted Mortgage Loan of any predatory or abusive
lending law shall be remitted by the Seller to the Servicer for deposit into the
Certificate Account by the Seller 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.

      Notwithstanding any other provision of this Agreement, the right to
substitute Mortgage Loans pursuant to this Article II shall be subject to the
additional limitations that no substitution of a Replacement Mortgage Loan for a
Deleted Mortgage Loan shall be made unless the Trustee shall have received an
Opinion of Counsel (at the expense of the party seeking to make the
substitution) that, under current law, such substitution will not (A) affect
adversely the status of any REMIC established hereunder as a REMIC, or of the
related "regular interests" as "regular interests" in any such REMIC, or (B)
cause any such REMIC to engage in a "prohibited transaction" or prohibited
contribution pursuant to the REMIC Provisions.

      The Trustee shall amend the Mortgage Loan Schedule to reflect the removal
of such Deleted Mortgage Loan from the terms of this Agreement and the
substitution of the Replacement Mortgage Loan or Replacement Mortgage Loans.
Upon such substitution by the Seller, such Replacement Mortgage Loan or
Replacement Mortgage Loans shall constitute part of the Mortgage Pool and shall
be subject in all respects to the terms of this Agreement and the Sale
Agreement, including all applicable representations and warranties thereof
included in the Sale Agreement as of the date of substitution.

            (d)   It is understood and agreed that the representations,
warranties and indemnification (i) set forth in this Section 2.03, (ii) of the
Seller and the Depositor set forth in the Sale Agreement and assigned to the
Trustee by the Depositor hereunder and (iii) of each Transferor, assigned by the
Seller to the Depositor pursuant to the Sale Agreement and assigned to the
Trustee by the Depositor hereunder shall each survive delivery of the Mortgage
Files and the Assignment of Mortgage of each Mortgage Loan to the Trustee and
shall continue throughout the term of this Agreement.

            (e)   The Depositor shall deliver a copy of the Mortgage Loan
Schedule to the Servicer on the Closing Date.

      SECTION 2.04. Representations and Warranties of the Servicer.

                  (i)   The Servicer hereby represents and warrants to the
Depositor and the Trustee as follows, as of the date hereof:

                  (ii)  The Servicer is duly organized and is validly existing
as a corporation in good standing under the laws of the State of Nevada and is
duly authorized and qualified to transact any and all business contemplated by
this Agreement to be conducted by the Servicer 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 service the Mortgage Loans in

                                      -47-
<PAGE>

accordance with the terms of this Agreement and to perform any of its other
obligations under this Agreement in accordance with the terms hereof.

                  (iii) The Servicer has the corporate power and authority and
to service each Mortgage Loan, and to execute, deliver and perform, and to enter
into and consummate the transactions contemplated by this Agreement and has duly
authorized by all necessary corporate action on the part of the Servicer the
execution, delivery and performance of this Agreement; and this Agreement,
assuming the due authorization, execution and delivery hereof by the other
parties hereto, constitutes a legal, valid and binding obligation of the
Servicer, enforceable against the Servicer 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.

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

                  (v)   The Servicer is an approved servicer of mortgage loans
for Fannie Mae and is an approved servicer of mortgage loans for Freddie Mac.

                  (vi)  Except as previously disclosed to the Depositor in the
Prospectus Supplement, no litigation is pending or, to the best of the
Servicer's knowledge, threatened, against the Servicer that would materially and
adversely affect the execution, delivery or enforceability of this Agreement or
the ability of the Servicer to service the Mortgage Loans or to perform any of
its other obligations under this Agreement in accordance with the terms hereof.

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

                  (viii) The Servicer has fully furnished and will fully furnish
(for the period it serviced the Mortgage Loans), in accordance with the Fair
Credit Reporting Act and its implementing regulations, accurate and complete
information (e.g., favorable and unfavorable) on its borrower credit files to
Equifax, Experian and Trans Union Credit Information Company on a monthly basis.

      SECTION 2.05. Substitutions and Repurchases of Mortgage Loans which are
not "Qualified Mortgages".

                                      -48-
<PAGE>

      Upon discovery by the Depositor, the Servicer, or the Trustee that any
Mortgage Loan does not constitute a "qualified mortgage" within the meaning of
section 860G(a)(3) of the Code, the party discovering such fact shall promptly
(and in any event within 5 Business Days of discovery) give written notice
thereof to the other parties. In connection therewith, the Depositor shall, at
the Depositor's option, either (i) substitute, if the conditions in Section
2.03(c) with respect to substitutions are satisfied, a Replacement Mortgage Loan
for the affected Mortgage Loan, or (ii) repurchase the affected Mortgage Loan
within 90 days of such discovery in the same manner as it would a Mortgage Loan
for a breach of representation or warranty contained in Section 2.03. The
Trustee, upon the written direction of the Depositor, shall reconvey to the
Depositor the Mortgage Loan to be released pursuant hereto in the same manner,
and on the same terms and conditions, as it would a Mortgage Loan repurchased
for breach of a representation or warranty contained in Section 2.03.

      SECTION 2.06. Authentication and Delivery of Certificates.

      The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with such transfer and assignment, the Trustee has caused
to be authenticated and delivered to or upon the order of the Depositor, in
exchange for the Mortgage Loans, Certificates duly authenticated by the Trustee
in authorized denominations evidencing ownership of the entire Trust Fund. The
Trustee agrees to hold the Trust Fund and exercise the rights referred to above
for the benefit of all present and future Holders of the Certificates and to
perform its duties set forth in this Agreement in accordance with the provisions
hereof.

      SECTION 2.07. REMIC Elections.

            (a)   The Depositor hereby instructs and authorizes the Trustee to
make an appropriate election to treat each of the Upper Tier REMIC, Middle Tier
REMIC 1, Middle Tier REMIC 2, Middle Tier REMIC 3 and the Lower Tier REMIC as a
REMIC. The Trustee shall sign the returns providing for such elections and such
other tax or information returns which are required to be signed by the Trustee
under applicable law. This Agreement shall be construed so as to carry out the
intention of the parties that each of the Upper Tier REMIC, Middle Tier REMIC 1,
Middle Tier REMIC 2, Middle Tier REMIC 3 and the Lower Tier REMIC be treated as
a REMIC at all times prior to the date on which the Trust Fund is terminated.

            (b)   The Preliminary Statement sets forth the designations and
"latest possible maturity date" for federal income tax purposes of all interests
created hereby. The "Startup Day" for purposes of the REMIC Provisions shall be
the Closing Date. Each REMIC's fiscal year shall be the calendar year.

      The Lower Tier REMIC shall consist of all of the assets of the Trust Fund
other than (i) the interests issued by the Lower Tier REMIC, the interests
issued by Middle Tier REMIC 1, the interests issued by Middle Tier REMIC 2 and
the interests issued by Middle Tier REMIC 3, (ii) the rights to receive
Prepayment Charges and (iii) the grantor trusts described in Section 2.07
hereof. The Lower Tier REMIC shall issue the Lower Tier REMIC Regular Interests
which shall be designated as regular interests of such REMIC and shall issue the
Class LTR Interest that shall be designated as the sole class of residual
interest in the Lower Tier REMIC. Each of the Lower Tier REMIC Regular Interests
shall have the characteristics set forth in its definition.

      The assets of Middle Tier REMIC 1 shall be the Lower Tier REMIC Regular
Interests. The Middle Tier REMIC 1 Regular Interests shall be designated as the
regular interests in Middle Tier REMIC 1 and the Class MT1R Interest shall be
designated as the sole class of residual interest in Middle

                                      -49-
<PAGE>

Tier REMIC 1. Each of the Middle Tier REMIC 1 Regular Interests shall have the
characteristics set forth in its definition.

      The assets of Middle Tier REMIC 2 shall be the Middle Tier REMIC 1 Regular
Interests (other than the Middle Tier REMIC 1 IO Interests). The Middle Tier
REMIC 2 Regular Interests shall be designated as the regular interests in Middle
Tier REMIC 2 and the Class MT2R Interest shall be designated as the sole class
of residual interest in Middle Tier REMIC 2. Each of the Middle Tier REMIC 2
Regular Interests shall have the characteristics set forth in its definition.

      The assets of Middle Tier REMIC 3 shall be the Middle Tier REMIC 2 Regular
Interests. The Middle Tier REMIC 3 Regular Interests shall be designated as the
regular interests in Middle Tier REMIC 3 and the Class MT3R Interest shall be
designated as the sole class of residual interest in Middle Tier REMIC 3. Each
of the Middle Tier REMIC 3 Regular Interests shall have the characteristics set
forth in its definition.

      The assets of the Upper Tier REMIC shall be the Middle Tier REMIC 3
Regular Interests and the Middle Tier REMIC 1 IO Interests. The REMIC Regular
Interests shall be designated as the regular interests in the Upper Tier REMIC
and the Residual Interest shall be designated as the sole class of residual
interest in the Upper Tier REMIC. For federal income tax purposes, the interest
rate on each REMIC Regular Interest (other than the UTS REMIC Components, the
Uncertificated Class C Interest and the Class X Certificates) and on the sole
class of Residual Interest shall be subject to a cap equal to the Adjusted Net
Rate.

      The beneficial ownership of the Class LTR Interest, the Class MT1R
Interest, the Class MT2R Interest, the Class MT3R Interest and the Residual
Interest shall be represented by the Class R Certificate. None of the Class LTR
Interest, the Class MT1R Interest, the Class MT2R Interest and the Class MT3R
Interest shall have a principal balance or bear interest.

            (c)   The "tax matters person" with respect to each REMIC for
purposes of the REMIC Provisions shall be the beneficial owner of the Class R
Certificate; provided, however, that the Holder of a Class R Certificate, by its
acceptance thereof, irrevocably appoints the Trustee as its agent and
attorney-in-fact to act as "tax matters person" with respect to each REMIC for
purposes of the REMIC Provisions. If there is more than one beneficial owner of
the Class R Certificate, the "tax matters person" shall be the Person with the
greatest percentage interest in the Class R Certificate and, if there is more
than one such Person, shall be determined under Treasury regulation Section
1.860F-4(d) and Treasury regulation Section 301.6231(a)(7)-1.

            (d)   It is intended that the rights of the Class A Certificates,
Class R Certificate, Class M-1 Certificates, Class M-2 Certificates, Class B-1
Certificates, Class B-2 Certificates and Class B-3 Certificates to receive
payments in respect of Excess Interest shall be treated as a right in interest
rate cap contracts written in favor of the holders of the Class A Certificates,
Class R Certificate, Class M-1 Certificates, Class M-2 Certificates, Class B-1
Certificates, Class B-2 Certificates and Class B-3 Certificates by the Class C
Certificateholders, and such shall be accounted for as property held separate
and apart from the regular interests in the Upper Tier REMIC held by the holders
of the Class A Certificates, M-1 Certificates, Class M-2 Certificates, Class B-1
Certificates, Class B-2 Certificates and Class B-3 Certificates and the residual
interest in the Upper Tier REMIC held by the holder of the Class R Certificate.
For information reporting requirements, the rights of the Class A, Class R,
Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3 Certificates to receive
payments in respect of Excess Interest shall be assumed to have zero value or a
de minimus value. This provision is intended to satisfy the requirements of
Treasury Regulations Section 1.860G-2(i) for the treatment of property rights
coupled with REMIC interests to be separately respected and shall be interpreted
consistently with such regulation.

                                      -50-

<PAGE>

On each Distribution Date, to the extent that any of the Class A Certificates,
Class R Certificate, M-1 Certificates, Class M-2 Certificates, Class B-1
Certificates, Class B-2 Certificates and Class B-3 Certificates receive payments
of Excess Interest, such amounts will be treated as distributed by the
Upper-Tier REMIC to the Class C Certificateholders and then paid to the relevant
Class of Certificates pursuant to the related interest rate cap contract.

            (e)   The parties intend that the portion of the Trust Fund
consisting of the right to receive Prepayment Charges and all amounts paid by
the Servicer, the Seller or the Transferor in respect of Prepayment Charges
pursuant to this Agreement or the Transfer Agreement, as applicable, and all
amounts received in respect of any indemnification paid as a result of a
Prepayment Charge being unenforceable in breach of the representations and
warranties set forth in the Sale Agreement or the related Transfer Agreement
shall be treated as a "grantor trust" under the Code and the provisions hereof
shall be interpreted consistently with this intention. In furtherance of such
intention, the Trustee shall (i) furnish or cause to be furnished to the holders
of the Class P Certificates information regarding their allocable share of the
income with respect to such grantor trust and (ii) file or cause to be filed
with the Internal Revenue Service Form 1041 (together with any necessary
attachments) and such other forms as may be applicable.

            The parties intend that the portion of the Trust Fund consisting of
the Uncertificated Class C Interest and the obligation of the holders of the
Class C Certificates to pay amounts of Excess Interest to the holders of the
Class A, Class R, Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3
Certificates shall be treated as a "grantor trust" under the Code, and the
provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Trustee shall (i) furnish or cause to be
furnished to the holders of the Class C Certificates information regarding their
allocable share, if any, of the income with respect to such grantor trust, (ii)
file or cause to be filed with the Internal Revenue Service Form 1041 (together
with any necessary attachments) and such other forms as may be applicable and
(iii) comply with such information reporting obligations with respect to
payments from such grantor trust to the holders of Class A, Class R, Class M-1,
Class M-2, Class B-1, Class B-2, Class B-3 and Class C Certificates as may be
applicable under the Code.

            (f)   All payments of principal received with respect to the
Mortgage Loans shall be deemed paid to, and Realized Losses with respect to
principal shall be allocated to, the Class LTB Interest in reduction of its
principal amount until such principal amount has been reduced to zero.
Thereafter, all payments of principal received with respect to the Mortgage
Loans shall be deemed paid to, and Realized Losses with respect to principal
shall be allocated to, the Class LTA1 Interest through the Class LTA3 Interest.
All principal deemed paid and Realized Losses allocated to the Class LTA1
Interest through the Class LTA3 Interest shall be deemed paid or allocated first
to the Class LTA1 Interest until its principal balance has been reduced to zero
and to such other Lower Tier REMIC Regular Interests in numerical order until
the principal balance of each in turn has been reduced to zero. All amounts
distributed to the Certificates in respect of unreimbursed amounts of Realized
Losses and all increases in the Certificate Principal Balance of any Class of
Certificates pursuant to the last sentence of the definition of "Certificate
Principal Balance" shall be allocated among the Lower Tier REMIC Regular
Interests in the order that is the reverse of the order in which Realized Losses
were previously allocated among the Lower Tier REMIC Regular Interests. All
payments of principal deemed received with respect to the Lower Tier REMIC
Regular Interests shall be deemed paid to, and Realized Losses with respect to
principal allocated to such interests shall be allocated to, the Class MT1B
Interest in reduction of its principal amount until such principal amount has
been reduced to zero. Thereafter, all payments of principal deemed received with
respect to the Lower Tier REMIC Regular Interests shall be deemed paid to, and
Realized Losses with respect to principal allocated to such interests shall be
allocated to, the Class MT1A1 Interest through the Class MT1A3 Interest. All
principal deemed paid and Realized Losses allocated to the Class MT1A1 Interest
through the Class MT1A3 Interest shall be deemed paid or allocated first to the
Class

                                      -51-
<PAGE>

MT1A1 Interest until its principal balance has been reduced to zero and to such
other Middle Tier REMIC 1 Regular Interests in numerical order until the
principal balance of each in turn has been reduced to zero. All amounts
distributed to the Certificates in respect of unreimbursed amounts of Realized
Losses and all increases in the Certificate Principal Balance of any Class of
Certificates pursuant to the last sentence of the definition of "Certificate
Principal Balance" shall be allocated among the Middle Tier REMIC 1 Regular
Interests in the order that is the reverse of the order in which Realized Losses
were previously allocated among the Middle Tier REMIC 1 Regular Interests. All
payments in respect of the Middle Tier REMIC 1 Regular Interests (other than the
Middle Tier REMIC 1 IO Interests) shall be paid to the Middle Tier REMIC 2
Regular Interests until the principal balance of all such interests have been
reduced to zero and any losses allocated to such interests have been reimbursed.
Any excess amounts shall be distributed to the Class MT2R Interest. On each
Distribution Date, an amount equal to 50% of the increase in the
Overcollateralization Amount shall be payable as a reduction of the principal
amounts of the Middle Tier REMIC 2 Marker Classes (with such amount allocated
among the Middle Tier REMIC 2 Marker Classes so that each Middle Tier REMIC 2
Marker Class will have its principal reduced by an amount equal to 50% of any
increase in the Overcollateralization Amount that results in a reduction in the
principal balance of its Corresponding Middle Tier REMIC 3 Interests) and will
be accrued and added to the principal balance of the Class MT2X Interest. All
payments of scheduled principal and prepayments of principal on the Mortgage
Loans shall be allocated 50% to the Class MT2X Interest and 50% to the Middle
Tier REMIC 2 Marker Classes (with principal payments allocated to each of the
Middle Tier REMIC 2 Marker Classes in an amount equal to 50% of the principal
amounts distributed to the Corresponding Middle Tier REMIC 3 Interests in
reduction of their principal amounts). Notwithstanding the preceding sentence,
an amount equal to the principal payments that result in a reduction in the
Overcollateralization Amount shall be treated as payable entirely to the Class
MT2X Interest. Realized Losses that are allocated to the Certificates shall be
applied to the Middle Tier REMIC 2 Marker Classes and the Class MT2X Interest so
that after all distributions have been made on each Distribution Date (i) the
principal balance of each of the Middle Tier REMIC 2 Marker Classes is equal to
50% of the principal balance of the Corresponding Middle Tier REMIC 3 Interests
and (ii) the principal balance of the Class MT2X Interest is equal to the sum of
(x) 50% of the aggregate principal balance of the Middle Tier REMIC 2 Regular
Interests and (y) 50% of the Overcollateralization Amount. Each Middle Tier
REMIC 2 Marker Class shall be entitled to receive an amount equal to 50% of all
amounts distributed to the Corresponding Middle Tier REMIC 3 Interest in respect
of unreimbursed amounts of Realized Losses. The Class MT2X Interest shall be
entitled to receive all other amounts distributed to the Certificates in respect
of unreimbursed amounts of Realized Losses.

      If on any Distribution Date the Certificate Principal Balance of any Class
of Certificates is increased pursuant to the last sentence of the definition of
"Certificate Principal Balance", then there shall be an equivalent increase in
the principal amounts of the Middle Tier REMIC 2 Regular Interests, with such
increase allocated (before the making of distributions and the allocation of
losses on the Middle Tier REMIC 2 Regular Interests on such Distribution Date)
among the Middle Tier REMIC 2 Regular Interests so that (i) each of the Middle
Tier 2 Marker Classes has a principal balance equal to 50% of the principal
balance of the Corresponding Middle Tier REMIC 3 Interests, (ii) the Class MT2X
Interest has a principal balance equal to the sum of (x) 50% of the aggregate
principal balance of the Middle Tier REMIC 2 Regular Interests and (y) 50% of
the Overcollateralization Amount.

      All payments of scheduled principal and prepayments on the Mortgage Loans,
and Realized Losses on the Mortgage Loans that are allocated to the
Certificates, shall be allocated among the Middle Tier REMIC 3 Regular Interests
in the same manner as such payments or Realized Losses are allocated to the
Related Certificates (treating the Class S Certificates as Related Certificates
with respect to each of the Class MT3A, Class MT3M-1, Class MT3M-2, Class
MT3B-1, Class MT3B-2 and Class MT3B-3 Interests in proportion to their
respective principal balances and treating the Class C Certificate as a Related
Certificate with respect to the Class MT3C Interest). Each Middle Tier REMIC 3
Regular

                                      -52-
<PAGE>

Interest shall be entitled to receive all amounts distributed to the
Certificates in respect of unreimbursed amounts of Realized Losses (treating the
Class S Certificates as Related Certificates with respect to each of the Class
MT3A, Class MT3M-1, Class MT3M-2, Class MT3B-1, Class MT3B-2 and Class MT3B-3
Interests in proportion to their respective principal balances and treating the
Class C Certificate as a Related Certificate with respect to the Class MT3C
Interest). If on any Distribution Date the Certificate Principal Balance of any
Class of Certificates is increased pursuant to the last sentence of the
definition of "Certificate Principal Balance", then there shall be an equivalent
increase in the principal amounts of the Middle Tier REMIC 3 Regular Interests,
with such increase allocated (before the making of distributions and the
allocation of losses on the Middle Tier REMIC 3 Regular Interests on such
Distribution Date) among the Middle Tier REMIC 3 Regular Interests in the same
manner as such increase is allocated to the Related Certificates (treating the
Class C Certificate as a Related Certificate with respect to the Class MT3C
Interest).

      In the event that any REMIC provided for herein fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to the negligent performance by the Servicer of its duties and
obligations set forth herein, the Servicer shall indemnify the Trustee, and the
Trust Fund against any and all Losses resulting from such negligence; provided,
however, that the Servicer shall not be liable for any such Losses attributable
to the action or inaction of the Depositor, the Trustee or the Holder of such
Class R Certificate, as applicable, nor for any such Losses resulting from
misinformation provided by the Holder of such Class R Certificate on which the
Servicer has relied. The foregoing shall not be deemed to limit or restrict the
rights and remedies of the Holder of such Class R Certificate now or hereafter
existing at law or in equity. Notwithstanding the foregoing, however, in no
event shall the Servicer have any liability (1) for any action or omission that
is taken in accordance with and in compliance with the express terms of, or
which is expressly permitted by the terms of, this Agreement, (2) for any Losses
other than arising out of a negligent performance by the Servicer of its duties
and obligations set forth herein, and (3) for any special or consequential
damages to Certificateholders (in addition to payment of principal and interest
on the Certificates).

      In the event that any REMIC provided for herein fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to the negligent performance by the Trustee of its duties and
obligations set forth herein, the Trustee shall indemnify the Trust Fund against
any and all Losses resulting from such negligence; provided, however, that the
Trustee shall not be liable for any such Losses attributable to the action or
inaction of the Servicer, the Depositor, the Trustee or the Holder of such Class
R Certificate, as applicable, nor for any such Losses resulting from
misinformation provided by the Holder of such Class R Certificate on which the
Trustee has relied. The foregoing shall not be deemed to limit or restrict the
rights and remedies of the Holder of such Class R Certificate now or hereafter
existing at law or in equity. Notwithstanding the foregoing, however, in no
event shall the Trustee have any liability (1) for any action or omission that
is taken in accordance with and in compliance with the express terms of, or
which is expressly permitted by the terms of, this Agreement, (2) for any Losses
other than arising out of a negligent performance by the Trustee of its duties
and obligations set forth herein, and (3) for any special or consequential
damages to Certificateholders (in addition to payment of principal and interest
on the Certificates).

                                      -53-
<PAGE>

      SECTION 2.08. [RESERVED]

      SECTION 2.09. Covenants of the Servicer.

      The Servicer hereby covenants to each of the other parties to this
Agreement as follows:

            (a)   the Servicer shall comply in the performance of its
obligations under this Agreement with all reasonable rules and requirements of
the insurer under each Required Insurance Policy;

            (b)   no written information, certificate of an officer, statement
furnished in writing or written report delivered to the Depositor, or the
Trustee, any affiliate of the Depositor, or the Trustee and prepared by the
Servicer pursuant to this Agreement will be inaccurate in any material respect,
provided, however, that the Servicer shall not be responsible for inaccurate
information provided to it by third parties.

      SECTION 2.10. [RESERVED].

      SECTION 2.11. Permitted Activities of the Trust. The Trust is created for
the object and purpose of engaging in the Permitted
Activities.

      SECTION 2.12. Qualifying Special Purpose Entity. For purposes of SFAS 140,
the parties hereto intend that the Trust Fund shall be treated as a "qualifying
special purpose entity" as such term is used in SFAS 140 and any successor rule
thereto and its power and authority as stated in Section 2.11 of this Agreement
shall be limited in accordance with paragraph 35 or SFAS 140.

                                      -54-
<PAGE>

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

      SECTION 3.01. Servicer to Service Mortgage Loans.

      For and on behalf of the Certificateholders, the Servicer shall service
and administer the Mortgage Loans in accordance with Accepted Servicing
Practices. In connection with such servicing and administration, the Servicer
shall have full power and authority, acting alone and/or through subservicers as
provided in Section 3.02 hereof, to do or cause to be done any and all things
that it may deem necessary or desirable in connection with such servicing and
administration, including but not limited to, the power and authority, subject
to the terms hereof (i) to execute and deliver, on behalf of the
Certificateholders 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 (but only
in the manner provided in this Agreement), (iii) to collect any Insurance
Proceeds and other Liquidation Proceeds and (iv) subject to Section 3.12(a), to
effectuate foreclosure or other conversion of the ownership of the Mortgaged
Property securing any Mortgage Loan; provided that, subject to Section 6.03, the
Servicer shall not take any action that is inconsistent with or prejudices the
interests of the Trust Fund or the Certificateholders in any Mortgage Loan
serviced by it under this Agreement or the rights and interests of the other
parties to this Agreement except as otherwise required by this Agreement or by
law. The Servicer shall not make or permit any modification, waiver or amendment
of any term of any Mortgage Loan which would cause any of the REMICs provided
for herein to fail to qualify as a REMIC or result in the imposition of any tax
under Section 860G(a) or 860G(d) of the Code. The Servicer shall represent and
protect the interest of the Trust Fund in the same manner as it currently
protects its own interest in mortgage loans in its own portfolio in any claim,
proceeding or litigation regarding a Mortgage Loan, but in any case not in any
manner that is a lesser standard than that provided in the first sentence of
this Section 3.01. Without limiting the generality of the foregoing, the
Servicer, in its own name or in the name of the Depositor and the Trustee, is
hereby authorized and empowered by the Depositor and the Trustee, when the
Servicer believes it appropriate in its reasonable judgment, to execute and
deliver, on behalf of the Trustee, the Depositor, the Certificateholders or any
of them, any and all instruments of satisfaction or cancellation, or of partial
or full release or discharge, subordinations and all other comparable
instruments, with respect to the Mortgage Loans, and with respect to the
Mortgaged Properties held for the benefit of the Certificateholders. The
Servicer shall prepare and deliver to the Depositor and/or the Trustee such
documents requiring execution and delivery by any or all of them as are
necessary or appropriate to enable the Servicer to service and administer the
Mortgage Loans, to the extent that the Servicer is not permitted to execute and
deliver such documents pursuant to the preceding sentence. Upon receipt of such
documents, the Depositor and/or the Trustee shall execute such documents and
deliver them to the Servicer. For purposes of this Section 3.01, the Trustee
hereby grants to the Servicer a limited power of attorney to execute and file
any and all documents necessary to fulfill the obligations of the Servicer under
this Section 3.01.

      The Servicer shall not be required to make any Servicing Advance with
respect to a Mortgage Loan that is 150 days or more delinquent.

      The Servicer shall deliver a list of Servicing Officers to the Trustee by
the Closing Date.

      The Servicer will transmit full-file credit reporting data for each
Mortgage Loan pursuant to Fannie Mae Guide Announcement 97-02 and that for each
Mortgage Loan, the Servicer agrees that it

                                      -55-
<PAGE>

shall report one of the following statuses each month as follows: current,
delinquent (30-, 60-, 90-days, etc.), foreclosed or charged-off.

      The Servicer further is authorized and empowered by the Trustee, on behalf
of the Certificateholders and the Trustee, in its own name or in the name of the
Sub-Servicer, when the Servicer or the Sub-Servicer, as the case may be,
believes it is appropriate in its best judgment to register any Mortgage Loan on
the MERS System, or cause the removal from the registration of any Mortgage Loan
on the MERS System, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording of
a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. Any reasonable expenses incurred in connection with the
actions described in the preceding sentence or as a result of MERS discontinuing
or becoming unable to continue operations in connection with the MERS System,
shall be subject to withdrawal by the Servicer from the Collection Account.

      With respect to any Mortgage Loan, the Servicer may consent to the
refinancing of the prior senior lien relating to such Mortgage Loan, provided
that the following requirements are met:

            (a)   the resulting Combined Loan-to-Value Ratio of such Mortgage
Loan is no higher than the Combined Loan-to-Value Ratio prior to such
refinancing; and

            (b)   the interest rate for the loan evidencing the refinanced
senior lien is no more than 2.0% higher than the interest rate on the loan
evidencing the existing senior lien immediately prior to the date of such
refinancing; and

            (c)   the loan evidencing the refinanced senior lien is not subject
to negative amortization.

      SECTION 3.02. Servicing and Subservicing; Enforcement of the Obligations
of Servicer.

            (a)   The Servicer may arrange for the subservicing of any Mortgage
Loan by a subservicer, which may be an affiliate (each, a "subservicer")
pursuant to a subservicing agreement (each, a "Subservicing Agreement");
provided, however, that (i) such subservicing arrangement and the terms of the
related subservicing agreement must provide for the servicing of such Mortgage
Loans in a manner consistent with the servicing arrangements contemplated
hereunder and (ii) that such agreement would not result in a withdrawal or
downgrading by any Rating Agency of the ratings of any Certificates evidenced by
a letter to that effect delivered by each Rating Agency to the Depositor.
Notwithstanding the provisions of any subservicing agreement, any of the
provisions of this Agreement relating to agreements or arrangements between the
Servicer and a subservicer or reference to actions taken through a subservicer
or otherwise, the Servicer shall remain obligated and liable to the Depositor,
the Trustee and the Certificateholders for the servicing and administration of
the Mortgage Loans in accordance with the provisions of this Agreement without
diminution of such obligation or liability by virtue of such subservicing
agreements or arrangements or by virtue of indemnification from the subservicer
and to the same extent and under the same terms and conditions as if the
Servicer alone were servicing and administering the Mortgage Loans. Every
subservicing agreement entered into by the Servicer shall contain a provision
giving any successor servicer the option to terminate such agreement in the
event a successor servicer is appointed. All actions of the each subservicer
performed pursuant to the related subservicing agreement shall be performed as
an agent of the Servicer with the same force and effect as if performed directly
by the Servicer. The Servicer shall deliver to the Trustee copies of all
subservicing agreements. The Trustee shall have no obligations, duties or
liabilities with respect to a subservicer,

                                      -56-
<PAGE>

including without limitation, any obligation, duty or liability to monitor such
subservicer or to pay a subservicer's fees and expenses.

            (b)   For purposes of this Agreement, the Servicer shall be deemed
to have received any collections, recoveries or payments with respect to the
Mortgage Loans that are received by a subservicer regardless of whether such
payments are remitted by the subservicer to the Servicer.

      SECTION 3.03. Rights of the Depositor and the Trustee in Respect of the
Servicer.

      Neither the Trustee nor the Depositor shall have any responsibility or
liability for any action or failure to act by the Servicer, and none of them is
obligated to supervise the performance of the Servicer hereunder or otherwise.

      SECTION 3.04. Trustee to Act as Servicer.

      Subject to Sections 6.04 and 7.02, in the event that the Servicer shall
for any reason no longer be the servicer hereunder (including by reason of an
Event of Default), the Trustee or its designee shall, within a period of time
not to exceed ninety (90) days from the date of notice of termination or
resignation, thereupon assume all of the rights and obligations of the Servicer
hereunder arising thereafter (except that the Trustee shall not be (i) liable
for losses of the Servicer pursuant to Section 3.10 hereof or any acts or
omissions of such predecessor servicer hereunder, (ii) obligated to make
Advances or Servicing Advance if it is prohibited from doing so by applicable
law, (iii) obligated to effectuate repurchases or substitutions of Mortgage
Loans hereunder, including pursuant to Section 2.02 or 2.03 hereof, (iv)
responsible for any expenses of the Servicer pursuant to Section 2.03 or (v)
deemed to have made any representations and warranties hereunder, including
pursuant to Section 2.04 or the first paragraph of Section 6.02 hereof;
provided, however that the Trustee (subject to clause (ii) above) or its
designee, in its capacity as the successor servicer, shall immediately assume
the terminated or resigning Servicer's obligation to make Advances and Servicing
Advances). No such termination or resignation shall affect any obligation of the
Servicer to pay amounts owed under this Agreement and to perform its duties
under this Agreement until its successor assumes all of its rights and
obligations hereunder. If the Servicer shall for any reason no longer be the
servicer (including by reason of any Event of Default), the Trustee (or any
other successor servicer) may, at its option, succeed to any rights and
obligations of the Servicer under any subservicing agreement in accordance with
the terms thereof; provided, however, that the Trustee (or any other successor
servicer) shall not incur any liability or have any obligations in its capacity
as servicer under a subservicing agreement arising prior to the date of such
succession unless it expressly elects to succeed to the rights and obligations
of the Servicer thereunder; and the Servicer shall not thereby be relieved of
any liability or obligations under the subservicing agreement arising prior to
the date of such succession. To the extent any costs or expenses, including
without limitation, Servicing Transfer Costs incurred by the Trustee in
connection with this Section 3.04, are not paid by the Servicer pursuant to this
Agreement within 30 days of the date of the Trustee's invoice thereof, such
amounts shall be payable out of the Certificate Account; provided that if the
Servicer has been terminated by reason of an Event of Default, the terminated
servicer shall reimburse the Trust Fund for any such expense incurred by the
Trust Fund upon receipt of a reasonably detailed invoice evidencing such
expenses. If the Trustee is unwilling or unable to act as servicer, the Trustee
shall seek to appoint a successor servicer that is eligible in accordance with
the criteria specified this Agreement.

      The Servicer shall, upon request of the Trustee, but at the expense of the
Servicer if the Servicer has been terminated by reason of an Event of Default,
deliver to the assuming party all documents and records relating to each
subservicing agreement and the Mortgage Loans then being serviced and otherwise
use its best efforts to effect the orderly and efficient transfer of the
subservicing agreement to the assuming party.

                                      -57-
<PAGE>

      SECTION 3.05. Collection of Mortgage Loan Payments; Collection Account;
Certificate Account.

            (a)   The Servicer shall make reasonable efforts in accordance with
Accepted Servicing Practices to collect all payments called for under the terms
and provisions of the Mortgage Loans to the extent such procedures shall be
consistent with this Agreement and the terms and provisions of any related
Required Insurance Policy. Consistent with the foregoing, the Servicer may in
its discretion (i) waive any late payment charge or, if applicable, any default
interest charge, or (ii) subject to Section 3.01, extend the due dates for
payments due on a Mortgage Note for a period not greater than 180 days;
provided, however, that any extension pursuant to clause (ii) above shall not
affect the amortization schedule of any Mortgage Loan for purposes of any
computation hereunder, except as provided below. In the event of any such
arrangement pursuant to clause (ii) above, subject to Section 4.01, the Servicer
shall make any Advances on the related Mortgage Loan during the scheduled period
in accordance with the amortization schedule of such Mortgage Loan without
modification thereof by reason of such arrangements. Notwithstanding the
foregoing, in the event that any Mortgage Loan is in default or, in the judgment
of the Servicer, such default is reasonably foreseeable, the Servicer,
consistent with the standards set forth in Section 3.01, may also waive, modify
or vary any term of such Mortgage Loan (including modifications that would
change the Mortgage Rate, forgive the payment of principal or interest or extend
the final maturity date of such Mortgage Loan), accept payment from the related
Mortgagor of an amount less than the Stated Principal Balance in final
satisfaction of such Mortgage Loan, or consent to the postponement of strict
compliance with any such term or otherwise grant indulgence to any Mortgagor
(any and all such waivers, modifications, variances, forgiveness of principal or
interest, postponements, or indulgences collectively referred to herein as
"forbearance"), provided, however, that in determining which course of action
permitted by this sentence it shall pursue, the Servicer shall adhere to the
standards of Section 3.01. The Servicer's analysis supporting any forbearance
and the conclusion that any forbearance meets the standards of Section 3.01
shall be reflected in writing in the Mortgage File.

            (b)   The Servicer will not waive any Prepayment Charge or portion
thereof unless, (i) the enforceability thereof shall have been limited by
bankruptcy, insolvency, moratorium, receivership or other similar laws relating
to creditors' rights generally or is otherwise prohibited by law, or (ii) the
collectability thereof shall have been limited due to acceleration in connection
with a foreclosure or other involuntary payment, or (iii) the Servicer has not
been provided with information sufficient to enable it to collect the Prepayment
Charge, or (iv) in the Servicer's reasonable judgment as described in Section
3.01 hereof, (x) such waiver relates to a default or a reasonably foreseeable
default, (y) such waiver would maximize recovery of total proceeds taking into
account the value of such Prepayment Charge and related Mortgage Loan and (z)
doing so is standard and customary in servicing similar Mortgage Loans
(including any waiver of a Prepayment Charge in connection with a refinancing of
a Mortgage Loan that is related to a default or a reasonably foreseeable
default). Except as provided in the preceding sentence, in no event will the
Servicer waive a Prepayment Charge in connection with a refinancing of a
Mortgage Loan that is not related to a default or a reasonably foreseeable
default. If the Servicer waives or does not collect all or a portion of a
Prepayment Charge relating to a Principal Prepayment in full or in part due to
any action or omission of the Servicer, other than as provided above, the
Servicer shall deposit the amount of such Prepayment Charge (or such portion
thereof as had been waived for deposit) into the Collection Account for
distribution in accordance with the terms of this Agreement.

            (c)   The Servicer shall not be required to institute or join in
litigation with respect to collection of any payment (whether under a Mortgage,
Mortgage Note or otherwise or against any public or governmental authority with
respect to a taking or condemnation) if it reasonably believes that enforcing
the provision of the Mortgage or other instrument pursuant to which such payment
is required is prohibited by applicable law.

                                      -58-
<PAGE>

            (d)   The Servicer shall establish and initially maintain, on behalf
of the Certificateholders, the Collection Account. The Servicer shall deposit
into the Collection Account daily, within two Business Days of receipt thereof,
in immediately available funds, the following payments and collections received
or made by it on and after the Cut-Off Date with respect to the Mortgage Loans:

                  (i)   all payments on account of principal, including
Principal Prepayments, on the Mortgage Loans, other than principal due on the
Mortgage Loans on or prior to the Cut-off Date;

                  (ii)  all payments on account of interest on the Mortgage
Loans net of the related Servicing Fee permitted under Section 3.15, other than
(x) interest due on the Mortgage Loans on or prior to the Cut-off Date and (y)
Prepayment Interest Excess;

                  (iii) all Liquidation Proceeds, other than proceeds to be
applied to the restoration or repair of the Mortgaged Property or released to
the Mortgagor in accordance with the Servicer's normal servicing procedures;

                  (iv)  all Subsequent Recoveries;

                  (v)   all Compensating Interest;

                  (vi)  any amount required to be deposited by the Servicer
pursuant to Section 3.05(g) in connection with any losses on Permitted
Investments;

                  (vii) any amounts required to be deposited by the Servicer
pursuant to Section 3.10 hereof;

                  (viii) all Advances made by the Servicer pursuant to Section
4.01;

                  (ix)  all Prepayment Charges; and

                  (x)   any other amounts required to be deposited hereunder.

      The foregoing requirements for remittance by the Servicer into the
Collection Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, late payment charges,
insufficient funds charges and payments in the nature of assumption fees (i.e.
fees related to the assumption of a Mortgage Loan upon the purchase of the
related Mortgaged Property and other similar ancillary fees (other than
Prepayment Charges) if collected, and any Prepayment Interest Excess need not be
remitted by the Servicer. Rather, such fees and charges may be retained by the
Servicer as additional servicing compensation. In the event that the Servicer
shall remit any amount not required to be remitted and not otherwise subject to
withdrawal pursuant to Section 3.08 hereof, it may at any time withdraw or
direct the Trustee, or such other institution maintaining the Collection
Account, to withdraw such amount from the Collection Account, any provision
herein to the contrary notwithstanding. The Servicer shall maintain adequate
records with respect to all withdrawals made pursuant to this Section. All funds
deposited in the Collection Account shall be held in trust for the
Certificateholders until withdrawn in accordance with Section 3.08. In no event
shall the Trustee incur liability for withdrawals from the Collection Account at
the direction of the Servicer.

      The Servicer shall give notice to the Trustee of the location of the
Collection Account maintained by it when established and prior to any change
thereof. Not later than twenty days after each Distribution Date, the Servicer
shall forward to the Trustee and the Depositor the most current available bank
statement for the Collection Account. Copies of such statement shall be provided
by the Trustee to any Certificateholder and to any Person identified to the
Trustee as a prospective transferee of a Certificate,

                                      -59-
<PAGE>

upon request at the expense of the requesting party, provided such statement is
delivered by the Servicer to the Trustee.

            (e)   The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Certificate Account. The Trustee shall, promptly upon
receipt, deposit or cause to be deposited in the Certificate Account and retain
therein the following:

                  (i)   the aggregate amount withdrawn by the Servicer from the
Collection Account and required to be deposited in the Certificate Account;

                  (ii)  the Purchase Price and any Substitution Adjustment
Amount;

                  (iii) any amount required to be deposited by the Trustee
pursuant to Section 3.05(g) in connection with any losses on Permitted
Investments; and

                  (iv)  the Optional Termination Amount paid by the winning
bidder at the Auction or by the Servicer pursuant to Section 9.01.

      Any amounts received by the Trustee prior to 1:00 p.m. New York City time
(or such earlier deadline for investment in the Permitted Investments designated
by the Trustee) which are required to be deposited in the Certificate Account by
the Servicer shall be invested in Permitted Investments on the Business Day on
which they were received. The foregoing requirements for remittance by the
Servicer and deposit by the Servicer into the Certificate Account shall be
exclusive. In the event that the Servicer shall remit any amount not required to
be remitted and not otherwise subject to withdrawal pursuant to Section 3.08
hereof, it may at any time withdraw such amount from the Certificate Account,
any provision herein to the contrary notwithstanding. All funds deposited in the
Certificate Account shall be held by the Trustee in trust for the
Certificateholders until disbursed in accordance with this Agreement or
withdrawn in accordance with Section 3.08. In no event shall the Trustee incur
liability for withdrawals from the Certificate Account at the direction of the
Servicer. The Trustee shall give notice to the Servicer of the location of the
Certificate Account maintained by it when established and prior to any change
thereof.

            (f)   Each institution that maintains the Collection Account, or the
Certificate Account shall invest the funds in each such account, as directed by
the Servicer or the Trustee, as applicable, in writing, in Permitted
Investments, which shall mature not later than (i) in the case of the Collection
Account the Business Day preceding the related Servicer Remittance Date (except
that if such Permitted Investment is an obligation of the institution that
maintains such Collection Account or is otherwise immediately available, then
such Permitted Investment shall mature not later than the Servicer Remittance
Date) and (ii) in the case of the Certificate Account, the Business Day
immediately preceding the first Distribution Date that follows the date of such
investment (except that if such Permitted Investment is an obligation of the
institution that maintains such Certificate Account or is otherwise immediately
available, then such Permitted Investment shall mature not later than such
Distribution Date) and, in each case, shall not be sold or disposed of prior to
its maturity. All such Permitted Investments shall be made in the name of the
Servicer or the Trustee, as applicable, for the benefit of the
Certificateholders. All income and gain net of any losses realized from amounts
on deposit in the Collection Account shall be for the benefit of the Servicer as
servicing compensation and shall be remitted to it monthly as provided herein.
The amount of any losses incurred in the Collection Account in respect of any
such investments shall be deposited by the Servicer in the Collection Account
out of the Servicer's own funds immediately as realized. All income and gain net
of any losses realized from amounts on deposit in the Certificate Account shall
be for the benefit of the Trustee and shall be remitted to or withdrawn by it
monthly as provided herein. The amount of any losses incurred in the Certificate
Account in respect of any such

                                      -60-
<PAGE>

investments shall be deposited by the Trustee, in the Certificate Account out of
the Trustee's own funds immediately as realized.

      SECTION 3.06. Collection of Taxes, Assessments and Similar Items; Escrow
Accounts.

      To the extent required by the related Mortgage Note, the Servicer shall
establish and maintain one or more accounts (each, an "Escrow Account") and
deposit and retain therein all collections from the Mortgagors (or advances by
the Servicer) for the payment of taxes, assessments, hazard insurance premiums
or comparable items for the account of the Mortgagors. Nothing herein shall
require the Servicer to compel a Mortgagor to establish an Escrow Account in
violation of applicable law.

      Withdrawals of amounts so collected from the Escrow Accounts may be made
only to effect timely payment of taxes, assessments, hazard insurance premiums,
condominium or PUD association dues, or comparable items, to reimburse the
Servicer out of related collections for any payments made pursuant to Sections
3.01 hereof (with respect to taxes and assessments and insurance premiums) and
3.10 hereof (with respect to hazard insurance), to refund to any Mortgagors any
sums as may be determined to be overages, to pay interest, if required by law or
the terms of the related Mortgage or Mortgage Note, to Mortgagors on balances in
the Escrow Account or to clear and terminate the Escrow Account at the
termination of this Agreement in accordance with Section 9.01 hereof. The Escrow
Accounts shall not be a part of the Trust Fund.

      SECTION 3.07. Access to Certain Documentation and Information Regarding
the Mortgage Loans.

      Upon reasonable advance notice in writing if required by federal
regulation, the Servicer will provide to each Certificateholder that is a
savings and loan association, bank or insurance company certain reports and
reasonable access to information and documentation regarding the Mortgage Loans
sufficient to permit such Certificateholder to comply with applicable
regulations of the OTS or other regulatory authorities with respect to
investment in the Certificates; provided, that the Servicer shall be entitled to
be reimbursed by each such Certificateholder for actual expenses incurred by the
Servicer in providing such reports and access.

      SECTION 3.08. Permitted Withdrawals from the Collection Account and
Certificate Account.

            (a)   The Servicer may from time to time, make withdrawals from the
Collection Account for the following purposes:

                  (i)   to pay to the Servicer (to the extent not previously
paid to or withheld by the Servicer), as servicing compensation in accordance
with Section 3.15, that portion of any payment of interest that equals the
Servicing Fee for the period with respect to which such interest payment was
made, and, as additional servicing compensation, those other amounts set forth
in Section 3.15;

                  (ii)  to reimburse the Servicer for Advances made by it (or to
reimburse the Advance Financing Person for Advances made by it) with respect to
the Mortgage Loans, such right of reimbursement pursuant to this subclause (ii)
being limited to amounts received on particular Mortgage Loan(s) (including, for
this purpose, Liquidation Proceeds) that represent late recoveries of payments
of principal and/or interest on such particular Mortgage Loan(s) in respect of
which any such Advance was made;

                  (iii) to reimburse the Servicer for any Non-Recoverable
Advance previously made and any Non-Recoverable Servicing Advances previously
made to the extent that, in the case of

                                      -61-
<PAGE>

Non-Recoverable Servicing Advances, reimbursement therefor constitutes
"unanticipated expenses" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii);

                  (iv)  to pay to the Servicer earnings on or investment income
with respect to funds in or credited to the Collection Account;

                  (v)   to reimburse the Servicer from Insurance Proceeds for
Insured Expenses covered by the related Insurance Policy;

                  (vi)  reserved;

                  (vii) to pay the Servicer any unpaid Servicing Fees and to
reimburse it for any unreimbursed Servicing Advances, the Servicer's right to
reimbursement of Servicing Advances pursuant to this subclause (vi) with respect
to any Mortgage Loan being limited to amounts received on particular Mortgage
Loan(s)(including, for this purpose, Liquidation Proceeds and purchase and
repurchase proceeds) that represent late recoveries of the payments for which
such advances were made pursuant to Section 3.01 or Section 3.06;

                  (viii) to pay to the Depositor or the Servicer, as applicable,
with respect to each Mortgage Loan or property acquired in respect thereof that
has been purchased pursuant to Section 2.02, 2.03 or 3.12, all amounts received
thereon and not taken into account in determining the related Stated Principal
Balance of such repurchased Mortgage Loan;

                  (ix)  to reimburse the Servicer or the Depositor for expenses
incurred by any of them in connection with the Mortgage Loans or Certificates
and reimbursable pursuant to Section 3.25 or Section 6.03 hereof provided that
reimbursement therefor would constitute "unanticipated" expenses within the
meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii);

                  (x)   to reimburse the Trustee for enforcement expenses
reasonably incurred in respect of a breach of defect giving rise to the purchase
obligation in Section 2.03 that were incurred in the Purchase Price of the
Mortgage Loans including any expenses arising out of the enforcement of the
purchase obligation; provided that any such expenses will be reimbursable under
this subclause (x) only to the that such expenses would constitute
"unanticipated expenses" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii) if paid by one of the REMICs provided for herein;

                  (xi)  [RESERVED]

                  (xii) to withdraw pursuant to Section 3.05 any amount
deposited in the Collection Account and not required to be deposited therein;
and

                  (xiii) to clear and terminate the Collection Account upon
termination of this Agreement pursuant to Section 9.01 hereof.

      In addition, no later than 1:00 p.m. Eastern Time on the Servicer
Remittance Date, the Servicer shall cause to be withdrawn from the Collection
Account the Interest Funds and the Principal Funds (other that amounts payable
to the Trustee), to the extent on deposit, and such amount shall be deposited in
the Certificate Account; provided, however, if the Trustee does not receive such
Interest Funds and Principal Funds by 4:00 p.m. Eastern Time, such Interest
Funds and Principal Funds shall be deposited in the Certificate Account by 1:00
p.m. Eastern Time on the next Business Day. In the event such funds are not
deposited by 1:00 p.m. Eastern Time, the Servicer shall pay, out of its own
funds, interest on such amount at a rate equal to the "prime rate" as published
by Wells Fargo Bank, N.A. at such time for each date or part thereof.

                                      -62-
<PAGE>

      The Servicer shall keep and maintain separate accounting, on a Mortgage
Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from
the Collection Account.

      The Servicer shall provide written notification to the Trustee on or prior
to the next succeeding Servicer Remittance Date upon making any withdrawals from
the Collection Account pursuant to subclauses (iii) and (vii) above.

      Unless otherwise specified, any amounts reimbursable to the Servicer or
the Trustee from amounts on deposit in the Collection Account or the Certificate
Accounts shall be deemed to come from first, Interest Funds, and thereafter,
Principal Funds for the related Distribution Date.

            (b)   The Trustee shall withdraw funds from the Certificate Account
for distribution to the Certificateholders in the manner specified in this
Agreement (and to withhold from the amounts so withdrawn, the amount of any
taxes that it is authorized to retain pursuant to this Agreement). In addition,
the Trustee may from time to time make withdrawals from the Certificate Account
for the following purposes:

                  (i)   to withdraw pursuant to Section 3.05 any amount
deposited in the Certificate Account and not required to be deposited therein;

                  (ii)  to clear and terminate the Certificate Account upon
termination of the Agreement pursuant to Section 9.01 hereof (after paying all
amounts necessary to the Trustee or the Servicer in connection with any such
termination);

                  (iii) to reimburse the Trustee for fees pursuant to Sections
6.03 hereof, and to reimburse the Trustee for expenses and indemnification
reimbursable pursuant to this Agreement, including without limitation Sections
3.04, 6.03, 8.05 and 8.06 hereof; and

                  (iv)  to pay to the Trustee earnings on or investment income
with respect to funds in or credited to the Certificate Account.

      SECTION 3.09. [RESERVED]

      SECTION 3.10. [RESERVED]

      SECTION 3.11. Enforcement of Due-On-Sale Clauses; Assumption Agreements.

      When a Mortgaged Property has been or is about to be conveyed by the
Mortgagor, the Servicer shall, except as set forth below, to the extent it has
knowledge of such conveyance or prospective conveyance, exercise its rights to
accelerate the maturity of the related Mortgage Loan under any "due-on-sale"
clause contained in the related Mortgage or Mortgage Note; provided, however,
that the Servicer shall not exercise any such right if the "due-on-sale" clause,
in the reasonable belief of the Servicer, is not enforceable under applicable
law; provided, further, that the Servicer shall not take any action in relation
to the enforcement of any "due-on-sale" clause which would adversely affect or
jeopardize coverage under any Required Insurance Policy. An Opinion of Counsel
at the expense of the Servicer (which the expense shall constitute a Servicing
Advance) delivered to the Trustee and the Depositor shall conclusively establish
the reasonableness of the Servicer's belief that any "due-on-sale" clause is not
enforceable under applicable law. In such event, the Servicer shall make
reasonable efforts to enter into an assumption and modification agreement with
the Person to whom such property has been or is about to be conveyed, pursuant
to which such Person becomes liable under the Mortgage Note and, unless
prohibited by applicable law or the Mortgage, the Mortgagor remains liable
thereon. If the foregoing is not permitted under applicable law, the Servicer is
authorized to enter into a substitution of liability

                                      -63-
<PAGE>

agreement with such Person, pursuant to which the original Mortgagor is released
from liability and such Person is substituted as Mortgagor and becomes liable
under the Note. In addition to the foregoing, the Servicer shall not be required
to enforce any "due-on-sale" clause if in the reasonable judgment of the
Servicer, entering into an assumption and modification agreement with a Person
to whom such property shall be conveyed and releasing the original Mortgagor
from liability would be in the best interests of the Certificateholders. The
Mortgage Loan, as assumed, shall conform in all respects to the requirements,
representations and warranties of this Agreement. The Servicer shall notify the
Trustee that any such assumption or substitution agreement has been completed by
forwarding to the Trustee the original copy of such assumption or substitution
agreement (indicating the Mortgage File to which it relates) which copy shall be
added by the Trustee to the related Mortgage File and which 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. The Servicer shall
be responsible for recording any such assumption or substitution agreements. In
connection with any such assumption or substitution agreement, the Monthly
Payment on the related Mortgage Loan shall not be changed but shall remain as in
effect immediately prior to the assumption or substitution, the stated maturity
or outstanding principal amount of such Mortgage Loan shall not be changed nor
shall any required monthly payments of principal or interest be deferred or
forgiven. Any fee collected by the Servicer for consenting to any such
conveyance or entering into an assumption or substitution agreement shall be
retained by or paid to the Servicer as additional servicing compensation.

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

      SECTION 3.12. Realization Upon Defaulted Mortgage Loans; Determination of
Excess Proceeds; Special Loss Mitigation.

            (a)   The Servicer shall use reasonable efforts consistent with the
servicing standard set forth in Section 3.01 to foreclose upon or otherwise
comparably convert the ownership of properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of Delinquent payments. In connection
with such foreclosure or other conversion, the Servicer shall follow such
practices and procedures as it shall deem necessary or advisable and as shall be
normal and usual in its general mortgage servicing activities and the
requirements of the insurer under any Required Insurance Policy; provided,
however, that the Servicer shall not be required to expend its own funds in
connection with the restoration of any property that shall have suffered damage
due to an uninsured cause unless it shall determine (i) that such restoration
increase the proceeds of liquidation of the Mortgage Loan after reimbursement to
itself of such expenses and (ii) that such expenses will be recoverable to it
through Liquidation Proceeds (respecting which it shall have priority for
purposes of withdrawals from the Collection Account pursuant to Section 3.08
hereof). The Servicer shall be responsible for all other costs and expenses
incurred by it in any such proceedings; provided, however, that it shall be
entitled to reimbursement thereof from the proceeds of liquidation of the
related Mortgaged Property, as contemplated in Section 3.08 hereof. Any Mortgage
Loan that is charged off may be sold to the majority Certificateholder of the
Class C Certificates, at its option, at its fair market value after the time
period specified in (e) below. If the Servicer has knowledge that a Mortgaged
Property that the Servicer is contemplating acquiring in foreclosure or by
deed-in-lieu of foreclosure is located within a one-mile radius of any site with
environmental or hazardous waste risks known to the Servicer, the Servicer will,
prior to acquiring the Mortgaged Property, consider such risks and only take
action in accordance with Accepted Servicing Practices.

                                      -64-
<PAGE>

      With respect to any REO Property, the deed or certificate of sale shall be
taken in the name of the Trustee or its nominee. Pursuant to its efforts to sell
such REO Property, the Servicer shall either itself or through an agent selected
by the Servicer protect and conserve such REO Property in the same manner and to
such extent as is customary in the locality where such REO Property is located
and may, incident to its conservation and protection of the interests of the
Certificateholders, rent the same, or any part thereof, as the Servicer deems to
be in the best interest of the Servicer and the Certificateholders for the
period prior to the sale of such REO Property. The Servicer or an affiliate may
receive usual and customary real estate referral fees for real estate brokers in
connection with the listing and disposition of REO Property. The Servicer shall
prepare a statement with respect to each 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 Servicer to comply with the reporting
requirements of the REMIC Provisions. The net monthly rental income, if any,
from such REO Property shall be deposited in the Collection Account no later
than the close of business on each Determination Date. The Servicer shall
perform 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 Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Servicer shall dispose of such Mortgaged Property prior to
the expiration of three years from the end of the year of its acquisition by the
Trust Fund or, at the expense of the Trust Fund, request, in accordance with
applicable procedures for obtaining an automatic extension of the grace period,
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, in which case
such property must be disposed of prior to the end of such extension, unless the
Trustee shall have been supplied with an Opinion of Counsel (such Opinion of
Counsel not to be an expense of the Trustee), to the effect that the holding by
the Trust Fund of such Mortgaged Property subsequent to such three-year period
or extension will not result in the imposition of taxes on "prohibited
transactions" of the Trust Fund or any of the REMICs provided for herein as
defined in section 860F of the Code or cause any of the REMICs provided for
herein to fail to qualify as a REMIC at any time that any Certificates are
outstanding, in which case the Trust Fund may continue to hold such Mortgaged
Property (subject to any conditions contained in such Opinion of Counsel).
Notwithstanding any other provision of this Agreement, no Mortgaged Property
acquired by the Trust Fund shall be rented (or allowed to continue to be rented)
or otherwise used for the production of income by or on behalf of the Trust Fund
in such a manner or pursuant to any terms that would (i) cause such Mortgaged
Property to fail to qualify as "foreclosure property" within the meaning of
section 860G(a)(8) of the Code or (ii) subject the Trust Fund or any REMIC
provided for herein to the imposition of any federal, state or local income
taxes on the income earned from such Mortgaged under section 860G(c) of the Code
or otherwise, unless the Servicer or the Depositor has agreed to indemnify and
hold harmless the Trust Fund with respect to the imposition of any such taxes.

      The decision of the Servicer to foreclose on a defaulted Mortgage Loan
shall be subject to a determination by the Servicer that the proceeds of such
foreclosure would exceed the costs and expenses of bringing such a proceeding.
The income earned from the management of any Mortgaged Properties acquired
through foreclosure or other judicial proceeding, net of reimbursement to the
Servicer for expenses incurred (including any property or other taxes) in
connection with such management and net of unreimbursed Servicing Fees,
Advances, Servicing Advances and any management fee paid or to be paid with
respect to the management of such Mortgaged Property, shall be applied to the
payment of principal of, and interest on, the related defaulted Mortgage Loans
(with interest accruing as though such Mortgage Loans were still current) and
all such income shall be deemed, for all purposes in this Agreement, to be
payments on account of principal and interest on the related Mortgage Notes and
shall be deposited into

                                      -65-
<PAGE>

the Collection Account. To the extent the income received during a Prepayment
Period is in excess of the amount attributable to amortizing principal and
accrued interest at the related Mortgage Rate on the related Mortgage Loan, such
excess shall be considered to be a partial Principal Prepayment for all purposes
hereof.

      The Liquidation Proceeds from any liquidation of a Mortgage Loan, net of
any payment to the Servicer as provided above, shall be deposited in the
Collection Account on the next succeeding Determination Date following receipt
thereof for distribution on the related Distribution Date.

      The proceeds of any Liquidated Loan, as well as any recovery resulting
from a partial collection of Liquidation Proceeds or any income from an REO
Property, will be applied in the following order of priority: first, to
reimburse the Servicer for any related unreimbursed Servicing Advances and
Servicing Fees, pursuant to Section 3.08(a)(vi) or this Section 3.12; second, to
reimburse the Servicer for any unreimbursed Advances, pursuant to Section
3.08(a)(ii) or this Section 3.12; third, to any Prepayment Charges and then to
accrued and unpaid interest (to the extent no Advance has been made for such
amount) on the Mortgage Loan or related REO Property, at the Net Mortgage Rate
to the Due Date occurring in the month in which such amounts are required to be
distributed; and fourth, as a recovery of principal of the Mortgage Loan.

            (b)   On each Determination Date, the Servicer shall determine the
respective aggregate amounts of Excess Proceeds, if any, that occurred in the
related Prepayment Period.

            (c)   The Servicer, in its sole discretion, shall have the right to
elect (by written notice sent to the Trustee) to purchase for its own account
from the Trust Fund any Mortgage Loan that is 91 days or more Delinquent at a
price equal to the Purchase Price. The Purchase Price for any Mortgage Loan
purchased hereunder shall be delivered to the Trustee for deposit to the
Certificate Account and the Trustee, upon receipt of such confirmation of
deposit and a Request for Release from the Servicer in the form of Exhibit I
hereto, shall release or cause to be released to the Servicer the related
Mortgage File and shall execute and deliver such instruments of transfer or
assignment prepared by the Servicer, in each case without recourse, as shall be
necessary to vest in the Servicer any Mortgage Loan released pursuant hereto and
the Servicer shall succeed to all the Trustee's right, title and interest in and
to such Mortgage Loan and all security and documents related thereto. Such
assignment shall be an assignment outright and not for security. The Servicer
shall thereupon own such Mortgage Loan, and all security and documents, free of
any further obligation to the Trustee or the Certificateholders with respect
thereto.

            (d)   With respect to such of the Mortgage Loans as come into and
continue in default, the Servicer will decide, in its reasonable business
judgment, whether to (i) foreclose upon the Mortgaged Properties securing those
Mortgage Loans pursuant to Section 3.12(a), (ii) write off the unpaid principal
balance of the Mortgage Loans as bad debt (provided that the Servicer has
determined that no net recovery is possible through foreclosure proceedings or
other liquidation of the related Mortgaged Property), (iii) take a deed in lieu
of foreclosure, (iv) accept a short sale or short refinance; (v) arrange for a
repayment plan, or (vi) agree to a modification of such Mortgage Loan. As to any
Mortgage Loan that becomes 120 days delinquent, the Servicer will be required to
obtain a broker's price opinion, the cost of which will be reimbursable as a
Servicing Advance. After obtaining the broker's price opinion, the Servicer will
determine, in its reasonable business judgment, whether a net recovery is
possible through foreclosure proceedings or other liquidation of the related
Mortgage Property. If the Servicer determines that no such recovery is possible,
it must charge off the related Mortgage Loan at the time it becomes 180 days
delinquent. Once a Mortgage Loan has been charged off, the Servicer will
discontinue making Advances, the Servicer will not be entitled to Servicing Fees
(except as provided below) with respect to such Mortgage Loan, and the Mortgage
Loan will be treated as a Liquidated Mortgage Loan. If the Servicer determines
that such net recovery is possible through foreclosure proceedings or other

                                      -66-
<PAGE>

liquidation of the related Mortgaged Property on a Mortgage Loan that becomes
180 days delinquent, the Servicer may continue making Advances, and the Servicer
will be required to notify the Trustee of such decision.

            (e)   Any Mortgage Loan that is charged off, pursuant to (d) above,
may continue to be serviced by the Servicer for the Certificateholders using
specialized collection procedures (including foreclosure, if appropriate). The
Servicer will be entitled to Servicing Fees and reimbursement of expenses in
connection with such Mortgage Loans after the date of charge off, only to the
extent of funds available from any recoveries on any such Mortgage Loans. Any
such Mortgage Loans serviced in accordance with the specialized collection
procedures shall be serviced for approximately six months. Any net recoveries
received on such Mortgage Loans during such six month period will be treated as
Subsequent Recoveries. On the date which is six months after the date on which
the Servicer begins servicing such Mortgage Loans using the specialized
collection procedures, unless specific net recoveries are anticipated by the
Servicer on a particular Mortgage Loan, such charged off loan will be released
to the majority holder of the Class C Certificates and thereafter, (i) the
majority holder of the Class C Certificates will be entitled to any amounts
subsequently received in respect of any such released loans, (ii) the majority
holder of the Class C Certificates may designate any servicer to service any
such released loan and (iii) the majority holder of the Class C Certificates may
sell any such released loan to a third party.

      SECTION 3.13. Trustee to Cooperate; Release of Mortgage Files.

      Upon the payment in full of any Mortgage Loan, or the receipt by the
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Servicer will promptly notify the Trustee or
its designee by delivering a Request for Release substantially in the form of
Exhibit I. Upon receipt of a copy of such request, the Trustee or its designee
shall promptly release the related Mortgage File to the Servicer, and the
Servicer is authorized to cause the removal from the registration on the MERS
System of any such Mortgage if applicable, and the Servicer, on behalf of the
Trustee shall execute and deliver the request for reconveyance, deed of
reconveyance or release or satisfaction of mortgage or such instrument releasing
the lien of the Mortgage together with the Mortgage Note with written evidence
of cancellation thereon. Expenses incurred in connection with any instrument of
satisfaction or deed of reconveyance shall be chargeable to the Mortgagor to the
extent permitted by law, and otherwise to the Trust Fund to the extent such
expenses constitute "unanticipated expenses" within the meaning of Treasury
Regulations Section 1.860G-(1)(b)(3)(ii). From time to time and as shall be
appropriate for the servicing or foreclosure of any Mortgage Loan, including for
such purpose, collection under any policy of flood insurance, any fidelity bond
or errors or omissions policy, or for the purposes of effecting a partial
release of any Mortgaged Property from the lien of the Mortgage or the making of
any corrections to the Mortgage Note or the Mortgage or any of the other
documents included in the Mortgage File, the Trustee or its designee shall, upon
delivery to the Trustee or its designee of a Request for Release in the form of
Exhibit I signed by a Servicing Officer, release the Mortgage File to the
Servicer. Subject to the further limitations set forth below, the Servicer shall
cause the Mortgage File or documents so released to be returned to the Trustee
or its designee when the need therefor by the Servicer no longer exists, unless
the Mortgage Loan is liquidated and the proceeds thereof are deposited in the
Collection Account.

      Each Request for Release may be delivered to the Trustee or its designee
(i) via mail or courier, (ii) via facsimile or (iii) by such other means,
including, without limitation, electronic or computer readable medium, as the
Servicer and the Trustee or its designee shall mutually agree. The Trustee or
its designee shall promptly release the related Mortgage File(s) within five (5)
Business Days of receipt of a properly completed Request for Release pursuant to
clauses (i), (ii) or (iii) above. Receipt of a properly completed Request for
Release shall be authorization to the Trustee or its designee to release such

                                      -67-
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Mortgage Files, provided the Trustee or its designee has determined that such
Request for Release has been executed, with respect to clauses (i) or (ii)
above, or approved, with respect to clause (iii) above, by an authorized
Servicing Officer of the Servicer, and so long as the Trustee or its designee
complies with its duties and obligations under the agreement. If the Trustee or
its designee is unable to release the Mortgage Files within the period
previously specified, the Trustee or its designee shall immediately notify the
Servicer indicating the reason for such delay. If the Servicer is required to
pay penalties or damages due to the Trustee or its designee's negligent failure
to release the related Mortgage File or the Trustee or its designee's negligent
failure to execute and release documents in a timely manner, the Trustee or its
designee, shall be liable for such penalties or damages respectively caused by
it.

      On each day that the Servicer remits to the Trustee or its designee
Requests for Releases pursuant to clauses (ii) or (iii) above, the Servicer
shall also submit to the Trustee or its designee a summary of the total number
of such Requests for Releases requested on such day by the same method as
described in such clauses (ii) and (iii).

      If the Servicer at any time seeks to initiate a foreclosure proceeding in
respect of any Mortgaged Property as authorized by this Agreement, the Servicer
may deliver or cause to be delivered to the Trustee or its designee, for
signature, as appropriate or on behalf of the Trustee, execute any court
pleadings, requests for trustee's sale or other documents necessary to
effectuate such foreclosure or any legal action brought to obtain judgment
against the Mortgagor on the Mortgage Note or the Mortgage or to obtain a
deficiency judgment or to enforce any other remedies or rights provided by the
Mortgage Note or the Mortgage or otherwise available at law or in equity.
Notwithstanding the foregoing, the Servicer shall cause possession of any
Mortgage File or of the documents therein that shall have been released by the
Trustee or its designee to be returned to the Trustee promptly after possession
thereof shall have been released by the Trustee or its designee unless (i) the
Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the
Mortgage Loan have been deposited in the Collection Account, and the Servicer
shall have delivered to the Trustee or its designee a Request for Release in the
form of Exhibit I or (ii) the Mortgage File or document shall 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 and the Servicer shall
have delivered to the Trustee or its designee an Officer's Certificate of a
Servicing Officer certifying as to the name and address of the Person to which
the Mortgage File or the documents therein were delivered and the purpose or
purposes of such delivery.

      SECTION 3.14. Documents, Records and Funds in Possession of Servicer to be
Held for the Trustee.

      All Mortgage Files and funds collected or held by, or under the control
of, the Servicer in respect of any Mortgage Loans, whether from the collection
of principal and interest payments or from Liquidation Proceeds, including but
not limited to, any funds on deposit in the Collection Account, shall be held by
the Servicer for and on behalf of the Trustee and shall be and remain the sole
and exclusive property of the Trust Fund, subject to the applicable provisions
of this Agreement. The Servicer also agrees that it shall not create, incur or
subject any Mortgage File or any funds that are deposited in the Collection
Account or Certificate Account or in any Escrow Account, or any funds that
otherwise are or may become due or payable to the Trustee for the benefit of the
Certificateholders, to any claim, lien, security interest, judgment, levy, writ
of attachment or other encumbrance, or assert by legal action or otherwise any
claim or right of set off against any Mortgage File or any funds collected on,
or in connection with, a Mortgage Loan, except, however, that the Servicer shall
be entitled to set off against and deduct from any such funds any amounts that
are properly due and payable to the Servicer under this Agreement.

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      SECTION 3.15. Servicing Compensation.

      As compensation for its activities hereunder, the Servicer shall be
entitled to retain or withdraw from the Collection Account out of each payment
of interest on a Mortgage Loan included in the Trust Fund an amount equal to
interest at the applicable Servicing Fee Rate on the Stated Principal Balance of
the related Mortgage Loan as of the immediately preceding Distribution Date.

      Additional servicing compensation in the form of any Excess Proceeds, late
payment fees, assumption fees (i.e. fees related to the assumption of a Mortgage
Loan upon the purchase of the related Mortgaged Property) and similar fees
payable by the Mortgagor, Prepayment Interest Excess, and all income and gain
net of any losses realized from Permitted Investments in the Collection Account
shall be retained by the Servicer to the extent not required to be deposited in
the Collection Account pursuant to Sections 3.05, or 3.12(a) hereof. 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 in this Agreement. In no event shall
the Trustee be liable for any Servicing Fee or for any differential between the
Servicing Fee and the amount necessary to induce a successor servicer to act as
successor servicer under this Agreement.

      SECTION 3.16. Access to Certain Documentation.

      The Servicer shall provide to the OTS and the FDIC and to comparable
regulatory authorities supervising Holders of the Certificates and the examiners
and supervisory agents of the OTS, the FDIC and such other authorities, access
to the documentation regarding the Mortgage Loans required by applicable
regulations of the OTS and the FDIC. Such access shall be afforded without
charge, but only upon reasonable and prior written request and during normal
business hours at the offices of the Servicer designated by it provided, that
the Servicer shall be entitled to be reimbursed by each such Certificateholder
for actual expenses incurred by the Servicer in providing such reports and
access. Nothing in this Section shall limit the obligation of the Servicer to
observe any applicable law prohibiting disclosure of information regarding the
Mortgagors and the failure of the Servicer to provide access as provided in this
Section as a result of such obligation shall not constitute a breach of this
Section.

      SECTION 3.17. Annual Statement as to Compliance.

      Pursuant to this Agreement, the Servicer shall deliver to the Depositor
and the Trustee on or before March 15 of each year beginning in 2005, (or such
other date that the Depositor gives the Servicer at least 30 days prior notice
of) in order to remain in compliance with the Section 302 Requirements, an
Officer's Certificate 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 a similar agreement has been made under such
officer's supervision, and (ii) to the best of such officers' knowledge, based
on such review, the Servicer has fulfilled all of its obligations under this
Agreement throughout such year, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
officers and the nature and status thereof. The Trustee shall forward a copy of
each such statement received by it to each Rating Agency. Copies of such
statement shall be provided by the Trustee to any Certificateholder upon written
request at the Certificateholder's expense, provided such statement has been
delivered by the Servicer to the Trustee.

      SECTION 3.18. Annual Independent Public Accountants' Servicing Statement;
Financial Statements.

      On or before March 15 of each year, beginning in 2005 or such other date
in order to remain in compliance with the Section 302 Requirements, the Servicer
at its expense shall cause a nationally

                                      -69-
<PAGE>

recognized firm of independent public accountants (who may also render other
services to the Servicer or any Affiliate thereof) that is a member of the
American Institute of Certified Public Accountants to furnish a USAP Report to
the Trustee and the Depositor. Copies of the USAP Report shall be provided by
the Trustee to any Certificateholder upon request at the Certificateholder's
expense, provided such report has been delivered by the Servicer to the Trustee.

      SECTION 3.19. [RESERVED]

      SECTION 3.20. Periodic Filings.

            (a)   As part of the Form 10-K required to be filed pursuant to the
terms of this Agreement, the Trustee shall include the accountants report
required pursuant to Section 3.18 as well as the Officer's Certificate delivered
by the Servicer pursuant to Section 3.17 relating to the Servicer's performance
of its obligations under this Agreement.

            (b)   The Trustee shall prepare for filing, and execute (other than
the initial filings, the Form 10-Ks and the Certification), on behalf of the
Trust Fund, and file with the Securities and Exchange Commission, (i) within 15
days after each Distribution Date in each month, each Monthly Statement on Form
8-K under the Exchange Act executed by the Trustee, (ii) on or before March 31
of each year beginning in 2005 or such other date in order to remain in
compliance with the Section 302 Requirements, a Form 10-K under the Exchange Act
executed by the Depositor, including any certification (the "Certification")
required by the Section 302 Requirements, and (iii) any and all reports,
statements and information respecting the Trust Fund and/or the Certificates
required to be filed on behalf of the Trust Fund under the Exchange Act. The
Certification and Form 10-K shall be executed by a senior officer of the
Depositor. Upon such filing with the Securities and Exchange Commission, the
Trustee shall promptly deliver to the Depositor a copy of any such executed
report, statement or information. Prior to making any such filings and
certifications, the Trustee shall comply with the provisions set forth in this
Section. Unless the Depositor otherwise directs, the Trustee shall not file a
Form 15 under the Exchange Act. The Depositor hereby grants to the Trustee a
limited power of attorney to execute (other than the Form 10-Ks, Form 15 and the
Certification) and file each such document on behalf of the Depositor. Such
power of attorney shall continue until either the earlier of (i) receipt by the
Trustee from the Depositor of written termination of such power of attorney and
(ii) the termination of the Trust Fund. 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
and 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.

            (c)   [RESERVED].

            (d)   The obligations set forth in paragraphs (a) through (c) of
this Section shall only apply with respect to periods for which the Trustee is
obligated to file Form 8-Ks and 10-Ks pursuant to paragraph (b) of this Section.
In the event a Form 15 is properly filed pursuant to paragraph (b) of this
Section, there shall be no further obligations under paragraphs (a) through (c)
of this Section commencing with the fiscal year in which the Form 15 is filed
(other than the obligations in paragraphs (a) and (b) of this Section to be
performed in such fiscal year that relate back to the prior fiscal year);
provided, however, that the Trustee shall not file a Form 15 without receiving
the prior written instructions of the Depositor to do so.

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<PAGE>

      SECTION 3.21. Annual Certificate by Trustee.

            (a)   On or before March 15 of each year (commencing in 2005), an
officer of the Trustee shall execute and deliver an Officer's Certificate,
signed by a Responsible Officer of the Trustee or any officer to whom that
officer reports, to the Depositor for the benefit of such Depositor and its
officers, directors and affiliates, certifying as to the matters described in
the Officer's Certificate attached hereto as Exhibit K.

            (b)   The Trustee shall indemnify and hold harmless the Depositor
its respective officers, directors, agents and affiliates from and against any
losses, damages, penalties, fines, forfeitures, reasonable legal fees and
related costs, judgments and other costs and expenses arising out of or based
upon a breach by the Trustee or any of its officers, directors, agents or
affiliates of its obligations under this Section 3.21 any material misstatement
or omission in the Officer's Certificate required under this Section or the
negligence, bad faith or willful misconduct of the Trustee in connection
therewith. If the indemnification provided for herein is unavailable or
insufficient to hold harmless the Depositor, then the Trustee agrees that it
shall contribute to the amount paid or payable by the Depositor as a result of
the losses, claims, damages or liabilities of the Depositor in such proportion
as is appropriate to reflect the relative fault of the Trustee on the one had
and the Depositor on the other in connection with a breach of the Trustee's
obligations under this Section 3.21, any material misstatement or omission in
the Officer's Certificate required under this Section or the Trustee's
negligence, bad faith or willful misconduct in connection therewith.

      SECTION 3.22. Annual Certificate by Servicer.

            (a)   Within 15 days prior to the date on which a Form 10-K is
required to be filed with a Certification by the Depositor, the Servicer shall
execute and deliver an Officer's Certificate in the form of Exhibit L attached
hereto, signed by the senior officer in charge of servicing of the Servicer or
any officer to whom that officer reports, to the Trustee and Depositor for the
benefit of the Trustee and Depositor and their respective officers, directors
and affiliates, certifying as to the following matters:

                  (i)   I have reviewed the information required to be delivered
to the Trustee pursuant to the Pooling and Servicing Agreement (the "Servicing
Information").

                  (ii)  Based on my knowledge, the information in the Annual
Statement of Compliance, and all servicing reports, officer's certificates and
other information relating to the servicing of the Mortgage Loans submitted to
the Trustee by the 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
any such reports, certificates or other information, in light of the
circumstances under which such statements were made, not misleading as of the
last day of the period covered by the Annual Statement of Compliance;

                  (iii) Based on my knowledge, the Servicing Information
required to be provided to the Trustee by the Servicer under this Agreement has
been provided to the Trustee; and

                  (iv)  I am responsible for reviewing the activities performed
by the Servicer under this Agreement and based upon the review required
hereunder, and except as disclosed in the Annual Statement of Compliance, the
Annual Independent Certified Public Accountant's Servicing Report and all
servicing reports, officer's certificates and other information relating to the
servicing of the Mortgage Loans submitted to the Trustee by the Servicer, the
Servicer has, as of the last day of the period covered by the Annual Statement
of Compliance fulfilled its obligations under this Agreement.

            (b)   The Servicer shall indemnify and hold harmless the Trustee and
the Depositor and their respective officers, directors, agents and affiliates
from and against any losses, damages,

                                      -71-
<PAGE>

penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments and other costs and expenses arising out of or based upon a breach by
the Servicer or any of its officers, directors, agents or affiliates of its
obligations under this Section 3.22, any material misstatement or omission in
the Officer's Certificate required under this Section or the negligence, bad
faith or willful misconduct of the Servicer in connection therewith. If the
indemnification provided for herein is unavailable or insufficient to hold
harmless the Trustee and the Depositor, then the Servicer agrees that it shall
contribute to the amount paid or payable by the Trustee and the Depositor as a
result of the losses, claims, damages or liabilities of the Depositor in such
proportion as is appropriate to reflect the relative fault of the Depositor on
the one hand and the Servicer on the other in connection with a breach of the
Servicer's obligations under this Section 3.22, any material misstatement or
omission in the Officer's Certificate required under this Section or the
Servicer's negligence, bad faith or willful misconduct in connection therewith.

      SECTION 3.23. Prepayment Charge Reporting Requirements.

                  Promptly after each Distribution Date, the Servicer shall
provide to the Depositor and the Trustee the following information with regard
to each Mortgage Loan that has prepaid during the related Prepayment Period:

                  (i)   loan number;

                  (ii)  current Mortgage Rate;

                  (iii) current principal balance;

                  (iv)  original principal balance;

                  (v)   Prepayment Charge amount due; and

                  (vi)  Prepayment Charge amount collected.

      SECTION 3.24. Information to the Trustee and the Transaction Oversight
Manager.

            (a)   Not later than the 18th day of each month, the Servicer shall
furnish to the Trustee and the Transaction Oversight Manager, the Remittance
Report for the period ending on the last Business Day of the preceding month in
the format mutually agreed upon between the Servicer and the Trustee.

            (b)   The Servicer shall provide the Transaction Oversight Manager
with full, continuous access to the Servicer's "Investor Insight Website".

            (c)   On the fifth Business Day of each month the Servicer shall
deliver to the Transaction Oversight Manager a data file incorporating the
fields set forth in the data file layout set forth on Exhibit M hereto.

      SECTION 3.25. Indemnification.

            The Servicer shall indemnify the Seller, the Trust Fund, the
Trustee, the Depositor and their officers, directors, employees and agents and
hold each of them harmless against any and all claims, losses, damages,
penalties, fines, forfeitures, reasonable and necessary legal fees and related
costs, judgments, and any other costs, fees and expenses that any of such
parties may sustain in any way related to the failure of the Servicer to perform
its duties and service the Mortgage Loans in compliance with the terms of this
Agreement. The Servicer immediately shall notify the Seller, the Trustee, and
the Depositor or any other relevant party if a claim is made by a third party
with respect to this Agreement or the Mortgage Loans, assume (with the prior
written consent of the indemnified party, which consent shall not

                                      -72-
<PAGE>

be unreasonably withheld or delayed) 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
any of such parties in respect of such claim. The Servicer shall follow any
reasonable written instructions received from the Trustee in connection with
such claim, it being understood that the Trustee shall have no duty to monitor
or give instructions with respect to such claims. The Servicer shall provide the
Depositor and the Trustee with a written report of all expenses and advances
incurred by the Servicer pursuant to this Section 3.25(a), and the Servicer
shall promptly reimburse itself from the assets of the Trust Fund in the
Collection Account for all amounts advanced by it pursuant to the preceding
sentence except when and to the extent a determination has been made that the
claim in any way relates to the failure of the Servicer to service and
administer the Mortgage Loans in material compliance with the terms of this
Agreement or the gross negligence, bad faith or willful misconduct of the
Servicer. The provisions of this paragraph shall survive the termination of this
Agreement and the payment of the outstanding Certificates.

      SECTION 3.26. Nonsolicitation.

      For as long as the Servicer services the Mortgage Loans, the Servicer
covenants that it will not, and that it will ensure that its affiliates and
agents, will not, directly solicit or provide information for any other party to
solicit for prepayment or refinancing of any of the Mortgage Loans by the
related Mortgagors. It is understood that the promotions undertaken by the
Servicer which are directed to the general public at large, or certain segments
thereof, shall not constitute solicitation as that term is used in this Section
3.26.

      SECTION 3.27. High Cost Mortgage Loans

      In the event that the Servicer reasonably determines that a Mortgage Loan
may be a "high cost mortgage loan", "high cost home", "covered", "high cost",
"high risk home", "predatory" or similarly classified loan under any applicable
state, federal or local law, the Servicer may notify the Depositor and Trustee
thereof; the Servicer may terminate its servicing thereof; and such
determination shall be deemed to materially and adversely affect the interests
of the Certificateholders in such Mortgage Loan and the related Transferor, or
the Seller, in event the Transferor does not do so, will repurchase the Mortgage
Loan within a 30 day period from the date of the notice in the manner described
in Section 2.05.

                                   ARTICLE II

                                  DISTRIBUTIONS

      SECTION 4.01. Advances.

            (a)   Subject to the conditions of this Article IV, the Servicer, as
required below, shall make an Advance and deposit such Advance in the Collection
Account. Each such Advance shall be remitted to the Collection Account no later
than 1:00 p.m. Eastern time on the Servicer Advance Date in immediately
available funds. The Servicer shall be obligated to make any such Advance only
to the extent that such advance would not be a Non-Recoverable Advance. If the
Servicer shall have determined that it has made a Non-Recoverable Advance or
that a proposed Advance or a lesser portion of such Advance would constitute a
Non-Recoverable Advance, the 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 Depositor, each Rating Agency and
the Trustee an Officer's Certificate setting forth the basis for such
determination. The Servicer may, in its sole discretion, make an Advance with
respect to the principal portion of the final Scheduled Payment on a Balloon
Loan, but the Servicer is under no obligation to do so; provided, however, that
nothing in this sentence shall affect the Servicer's

                                      -73-
<PAGE>

obligation under this Section 4.01 to Advance the interest portion of the final
Scheduled Payment with respect to a Balloon Loan as if such Balloon Loan were a
fully amortizing Mortgage Loan. If a Mortgagor does not pay its final Scheduled
Payment on a Balloon Loan when due, the Servicer shall Advance (unless it
determines in its good faith judgment that such amounts would constitute a
Non-Recoverable Advance) a full month of interest (net of the Servicing Fee) on
the Stated Principal Balance thereof each month until its Stated Principal
Balance is reduced to zero.

      In lieu of making all or a portion of such Advance from its own funds, the
Servicer may (i) cause to be made an appropriate entry in its records relating
to the Collection Account that any amount held for future distribution has been
used by the Servicer in discharge of its obligation to make any such Advance and
(ii) transfer such funds from the Collection Account to the Certificate Account.
In addition, the Servicer shall have the right to reimburse itself for any such
Advance from amounts held from time to time in the Collection Account to the
extent such amounts are not then required to be distributed. Any funds so
applied and transferred pursuant to the previous two sentences shall be replaced
by the Servicer by deposit in the Collection Account no later than the close of
business on the Servicer Advance Date on which such funds are required to be
distributed pursuant to this Agreement. The Servicer shall be entitled to be
reimbursed from the Collection Account for all Advances of its own funds made
pursuant to this Section as provided in Section 3.08. The obligation to make
Advances with respect to any Mortgage Loan shall continue until the earlier of
(i) such Mortgage Loan is paid in full, (ii) the related Mortgaged Property or
related REO Property has been liquidated or until the purchase or repurchase
thereof (or substitution therefor) from the Trust Fund pursuant to any
applicable provision of this Agreement, except as otherwise provided in this
Section 4.01, (iii) the Servicer determines in its good faith judgment that such
amounts would constitute a Non-Recoverable Advance as provided in the preceding
paragraph or (iv) the date on which such Mortgage Loan becomes 150 days
delinquent as set forth below.

      (b)   Notwithstanding anything in this Agreement to the contrary
(including, but not limited to, Sections 3.01 and 4.01(a) hereof), no Advance or
Servicing Advance shall be required to be made hereunder by the Servicer if such
Advance or Servicing Advance would, if made, constitute a Non-Recoverable
Advance or a Non-Recoverable Servicing Advance. The determination by the
Servicer that it has made a Non-Recoverable Advance or a Non-Recoverable
Servicing Advance or that any proposed Advance or Servicing Advance, if made,
would constitute a Non-Recoverable Advance or a Non-Recoverable Servicing
Advance, respectively, shall be evidenced by an Officer's Certificate of the
Servicer delivered to the Depositor and the Trustee. In addition, the Servicer
shall not be required to advance any Relief Act Shortfalls.

      (c)   Notwithstanding the foregoing, the Servicer shall not be required to
make any Advances for any Mortgage Loan after such Mortgage Loan becomes 150
days delinquent. The Servicer shall identify such delinquent Mortgage Loans in
the Servicer Statement referenced in Section 3.24. In addition, the Servicer
shall provide the Trustee with an Officer's Certificate listing such delinquent
Mortgage Loans and certifying that such loans are 150 days or more delinquent.

      SECTION 4.02. Reduction of Servicing Compensation in Connection with
Prepayment Interest Shortfalls.

      In the event that any Mortgage Loan is the subject of a Prepayment
Interest Shortfall, beginning on the related Servicing Transfer Date, the
Servicer shall, from amounts in respect of the Servicing Fee for such
Distribution Date, deposit into the Collection Account, as a reduction of the
Servicing Fee for such Distribution Date, no later than the Servicer Advance
Date immediately preceding such Distribution Date, an amount up to the
Prepayment Interest Shortfall. In case of such deposit, the Servicer shall not
be entitled to any recovery or reimbursement from the Depositor, the Trustee,
the Trust Fund or the Certificateholders. With respect to any Distribution Date,
to the extent that the Prepayment Interest

                                      -74-
<PAGE>

Shortfall exceeds Compensating Interest (such excess, a "Non-Supported Interest
Shortfall"), such Non-Supported Interest Shortfall shall reduce the Current
Interest with respect to each Class of Certificates, pro rata based upon the
amount of interest each such Class would otherwise be entitled to receive on
such Distribution Date.

      SECTION 4.03. Distributions on the REMIC Interests.

      On each Distribution Date, amounts on deposit in the Certificate Account
shall be treated for federal income tax purposes as applied to distributions on
the interests in the Lower Tier REMIC, Middle Tier REMIC 1, Middle Tier REMIC 2,
Middle Tier REMIC 3 and the Upper Tier REMIC in an amount sufficient to make the
distributions on the respective Certificates on such Distribution Date in
accordance with the provisions of Section 4.04.

      SECTION 4.04. Distributions.

            (a)   Reserved.

            (b)   On each Distribution Date, the Trustee shall make the
following distributions from the Certificate Account of an amount equal to the
Interest Funds in the following order of priority:

                  (i)   to the Class P Certificates, an amount equal to any
Prepayment Charges collected on the Mortgage Loans during the related Prepayment
Period and all amounts paid by the Servicer, the Seller or the Transferor in
respect of Prepayment Charges pursuant to this Agreement or the Transfer
Agreement, as applicable, and all amounts received in respect of any
indemnification paid as a result of a Prepayment Charge being unenforceable in
breach of the representations and warranties set forth in the Sale Agreement or
the related Transfer Agreement, in each case for the related Prepayment Period;

                  (ii)  to the Class A, Class R, Class S and Class X
Certificates, the Current Interest and any Interest Carry Forward Amount with
respect to such Class; provided, however, if such amount is not sufficient to
make a full distribution of the Current Interest and any Interest Carry Forward
Amount with respect to the Class A, Class R, Class S and Class X Certificates,
such amount will be distributed pro rata among each Class of the Class A, Class
R, Class S and Class X Certificates based on the ratio of (x) the Current
Interest and Interest Carry Forward Amount for each Class A, Class R, Class S
and Class X Certificates to (y) the total amount of Current Interest and any
Interest Carry Forward Amount for the Class A, Class R, Class S and Class X
Certificates;

                  (iii) to the Class M-1 Certificates, the Class M-1 Current
Interest and any Class M-1 Interest Carry Forward Amount;

(iv) to the Class M-2 Certificates, the Class M-2 Current Interest and any Class
M-2 Interest Carry Forward Amount;

                  (v)   to the Class B-1 Certificates, the Class B-1 Current
Interest and any Class B-1 Interest Carry Forward Amount;

                  (vi)  to the Class B-2 Certificates, the Class B-2 Current
Interest and any Class B-2 Interest Carry Forward Amount;

                  (vii) to the Class B-3 Certificates, the Class B-3 Current
Interest and any Class B-3 Interest Carry Forward Amount; and

                                      -75-
<PAGE>

                  (viii) any remainder pursuant to Section 4.04(f) hereof.

            (c)   [Reserved]

            (d)   On each Distribution Date, the Trustee shall make the
following distributions from the Certificate Account of an amount equal to the
Principal Distribution Amount in the following order of priority, and each such
distribution shall be made only after all distributions pursuant to Section
4.04(b) above shall have been made until such amount shall have been fully
distributed for such Distribution Date:

                  (i)   to the Class R Certificate and the Class A Certificates,
sequentially, the Class A Principal Distribution Amount, until the Certificate
Principal Balances thereof have been reduced to zero;

                  (ii)  to the Class M-1 Certificates, the Class M-1 Principal
Distribution Amount;

                  (iii) to the Class M-2 Certificates, the Class M-2 Principal
Distribution Amount;

                  (iv)  to the Class B-1 Certificates, the Class B-1 Principal
Distribution Amount;

                  (v)   to the Class B-2 Certificates, the Class B-2 Principal
Distribution Amount;

                  (vi)  to the Class B-3 Certificates, the Class B-3 Principal
Distribution Amount; and

                  (vii) any remainder pursuant to Section 4.04(f) hereof.

            (e)   [Reserved].

            (f)   On each Distribution Date, the Trustee shall make the
following distributions up to the following amounts from the Certificate Account
of the remainders pursuant to Section 4.04(b)(viii) and (d)(vii) hereof and, to
the extent required to make the distributions set forth below in clauses (i)
through (viii) of this Section 4.04(f), and each such distribution shall be made
only after all distributions pursuant to Sections 4.04(b) and (d) above shall
have been made until such remainders shall have been fully distributed for such
Distribution Date:

                  (i)   for distribution as part of the Principal Distribution
Amount, the Extra Principal Distribution Amount;

                  (ii)  to the Class M-1 Certificates, the Class M-1 Unpaid
Realized Loss Amount;

                  (iii) to the Class M-2 Certificates, the Class M-2 Unpaid
Realized Loss Amount;

                  (iv)  to the Class B-1 Certificates, the Class B-1 Unpaid
Realized Loss Amount;

                                      -76-
<PAGE>

                  (v)   to the Class B-2 Certificates, the Class B-2 Unpaid
Realized Loss Amount;

                  (vi)  to the Class B-3 Certificates, the Class B-3 Unpaid
Realized Loss Amount;

                  (vii) to the Class A, Class R, Class M and Class B
Certificates, on a pro rata basis, based upon outstanding Floating Rate
Certificate Carryover, the Floating Rate Certificate Carryover for each Class;

                  (viii) if a Class B-3 Turbo Event is in effect with respect to
such Distribution Date, any remainder to the Class B-3 Certificates as principal
in reduction of the Certificate Principal Balance of the Class B-3 Certificates,
until Certificate Principal Balance is reduced to zero; and

                  (ix)  the remainder pursuant to Section 4.04(g) hereof.

            (g)   on each Distribution Date, the Trustee shall allocate the
remainders pursuant to Section 4.04(f)(ix) as follows:

                  (i)   to the Class C Certificates in the following order of
priority, (I) the Class C Current Interest, (II) the Class C Interest Carry
Forward Amount, (III) as principal on the Class C Certificate until the
Certificate Principal Balance of the Class C Certificates has been reduced to
zero and (IV) the Class C Unpaid Realized Loss Amount; and

                  (ii)  the remainder pursuant to Section 4.04(h) hereof.

            (h)   On each Distribution Date, the Trustee shall allocate the
remainder pursuant to Section 4.04(g)(ii) hereof (i) to the Trustee to reimburse
amounts or pay indemnification amounts owing to the Trustee from the Trust Fund
pursuant to Section 8.05 and (ii) to the Class R Certificate and such
distributions shall be made only after all preceding distributions shall have
been made until such remainder shall have been fully distributed.

            (i)   On each Distribution Date, after giving effect to
distributions on such Distribution Date, the Trustee shall allocate the Applied
Realized Loss Amount for the Certificates to reduce the Certificate Principal
Balances of the Class C Certificates and the Subordinated Certificates in the
following order of priority:

                  (i)   to the Class C Certificates, until the Class C
Certificate Principal Balance is reduced to zero;

                  (ii)  to the Class B-3 Certificates until the Class B-3
Certificate Principal Balance is reduced to zero;

                  (iii) to the Class B-2 Certificate until the Class B-2
Principal Balance is reduced to zero;

                  (iv)  to the Class B-1 Certificate until the Class B-1
Principal Balance is reduced to zero;

                  (v)   to the Class M-2 Certificates until the Class M-2
Certificate Principal Balance is reduced to zero; and

                                      -77-
<PAGE>

                  (vi)  to the Class M-1 Certificates until the Class M-1
Certificate Principal Balance is reduced to zero.

            (j)   Subject to Section 9.02 hereof respecting the final
distribution, on each Distribution Date the Trustee shall make distributions to
each Certificateholder of record on the preceding Record Date either by wire
transfer in immediately available funds to the account of such holder at a bank
or other entity having appropriate facilities therefor, if such Holder has so
notified the Trustee at least five (5) Business Days prior to the related Record
Date or, if not, by check mailed by first class mail to such Certificateholder
at the address of such holder appearing in the Certificate Register.
Notwithstanding the foregoing, but subject to Section 9.02 hereof respecting the
final distribution, distributions with respect to Certificates registered in the
name of a Depository shall be made to such Depository in immediately available
funds.

      In accordance with this Agreement, the Servicer shall prepare and deliver
a report (the "Remittance Report") to the Trustee and the Transaction Oversight
Manager in the form of a computer readable magnetic tape (or by such other means
as the Servicer and the Trustee, as applicable, may agree from time to time)
containing such data and information such as to permit the Trustee to prepare
the Monthly Statement to Certificateholders and make the required distributions
for the related Distribution Date. The Trustee will prepare the Monthly Report
based solely upon the information received from the Servicer.

      SECTION 4.05. Monthly Statements to Certificateholders.

            (a)   Not later than each Distribution Date based on information
provided by the Servicer, the Trustee shall prepare and make available on its
website located at www.ctslink.com to each Holder of a Class of Certificates of
the Trust Fund, the Servicer, the Transaction Oversight Manager, the Rating
Agencies and the Depositor a statement setting forth for the Certificates:

                  (i)   the amount of the related distribution to Holders of
each Class allocable to principal, separately identifying (A) the aggregate
amount of any Principal Prepayments included therein, (B) the aggregate of all
scheduled payments of principal included therein, (C) the Extra Principal
Distribution Amount, if any, and (D) the aggregate amount of Prepayment Charges,
if any;

                  (ii)  the amount of such distribution to Holders of each Class
allocable to interest, together with any Non-Supported Interest Shortfalls
allocated to each Class;

                  (iii) any Interest Carryforward Amount for each Class of the
Offered Certificates;

                  (iv)  the Class Certificate Principal Balance of each Class
after giving effect (i) to all distributions allocable to principal on such
Distribution Date and (ii) the allocation of any Applied Realized Loss Amounts
for such Distribution Date;

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

                  (vi)  the related amount of the Servicing Fee paid to or
retained by the Servicer;

                  (vii) the Pass-Through Rate for each Class of Certificates for
such Distribution Date;

                                      -78-
<PAGE>

                  (viii) the amount of Advances included in the distribution on
such Distribution Date;

                  (ix)  the cumulative amount of (A) Realized Losses and (B)
Applied Realized Loss Amounts to date;

                  (x)   the amount of (A) Realized Losses and (B) Applied
Realized Loss Amounts with respect to such Distribution Date;

                  (xi)  the number and aggregate principal amounts of Mortgage
Loans (A) Delinquent (exclusive of Mortgage Loans in foreclosure) (1) 31 to 60
days, (2) 61 to 90 days and (3) 91 or more days, and (B) in foreclosure and
Delinquent (1) 31 to 60 days, (2) 61 to 90 days and (3) 91 or more days, in each
case as of the close of business on the last day of the calendar month preceding
such Distribution Date;

                  (xii) the total number and principal balance of any REO
Properties as of the close of business on the last day of the calendar month
preceding such Distribution Date;

                  (xiii) the aggregate Stated Principal Balance of all
Liquidated Loans as of the preceding Distribution Date;

                  (xiv) whether a Trigger Event has occurred;

                  (xv)  with respect to each Class of Certificates, any Interest
Carry Forward Amount with respect to such Distribution Date for each such Class,
any Interest Carry Forward Amount paid for each such Class and any remaining
Interest Carry Forward Amount for each such Class;

                  (xvi) with respect to each Class of Certificates, any Floating
Rate Certificate Carryover with respect to such Distribution Date for each such
Class, any Floating Rate Certificate Carryover paid for each such Class and any
remaining Floating Rate Certificate Carryover for each such Class;

                  (xvii) the number and Stated Principal Balance (as of the
preceding Distribution Date) of any Mortgage Loans which were purchased or
repurchased during the preceding Due Period and since the Cut-off Date;

                  (xviii) the number of Mortgage Loans for which Prepayment
Charges were received during the related Prepayment Period and, for each such
Mortgage Loan, the amount of Prepayment Charges received during the related
Prepayment Period and in the aggregate of such amounts for all such Mortgage
Loans since the Cut-off Date;

                  (xix) [RESERVED];

                  (xx)  the amount and purpose of any withdrawal from the
Collection Account pursuant to Section 3.08(a)(v); and

                  (xxi) the amount of any payments to each Class of Certificates
that are treated as payments received in respect of a REMIC Regular Interest and
the amount of any payments to each Class of Certificates that are not treated as
payments received in respect of a REMIC Regular Interest.

            (b)   The Trustee will make the Monthly Statement (and, at its
option, any additional files containing the same information in an alternative
format) available each month to Certificateholders, other parties to this
Agreement and any other interested parties via the Trustee's Internet website.
The

                                      -79-
<PAGE>

Trustee's Internet website shall initially be located at "www.ctslink.com".
Assistance in using the website can be obtained by calling the Trustee's
customer service desk at (301) 815-6600. Parties that are unable to use the
website are entitled to have a paper copy mailed to them via first class mail by
calling the customer service desk and indicating such. The Trustee shall have
the right to change the way the monthly statements to Certificateholders are
distributed in order to make such distribution more convenient and/or more
accessible to the above parties and the Trustee shall provide timely and
adequate notification to all above parties regarding any such changes.

      The Trustee shall also be entitled to rely on but shall not be responsible
for the content or accuracy of any information provided by third parties for
purposes of preparing the monthly statement and may affix thereto any disclaimer
it deems appropriate in its reasonable discretion (without suggesting liability
on the part of any other party hereto).

      As a condition to access the Trustee's internet website, the Trustee may
require registration and the acceptance of a disclaimer. The Trustee will not be
liable for the dissemination of information in accordance with this Agreement.

            (c)   If so requested in writing within a reasonable period of time
after the end of each calendar year, the Trustee shall make available on its
website or cause to be furnished to each Person who at any time during the
calendar year was a Certificateholder of record, a statement containing the
information set forth in clauses (a)(i) and (a)(ii) of this Section 4.05
aggregated for such calendar year or applicable portion thereof during which
such Person was a Certificateholder. Such obligation of the Trustee shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Trustee pursuant to any requirements of the
Code as from time to time in effect.

            (d)   Upon filing with the Internal Revenue Service, the Trustee
shall furnish to the Holders of the Class R Certificate the Form 1066 and each
Form 1066Q and shall respond promptly to written requests made not more
frequently than quarterly by any Holder of Class R Certificate with respect to
the following matters: The original projected principal and interest cash flows
on the Closing Date on each Class of regular and residual interests created
hereunder and on the Mortgage Loans, based on the Prepayment Assumption;

                  (i)   The projected remaining principal and interest cash
flows as of the end of any calendar quarter with respect to each Class of
regular and residual interests created hereunder and the Mortgage Loans, based
on the Prepayment Assumption;

                  (ii)  The Prepayment Assumption and any interest rate
assumptions used in determining the projected principal and interest cash flows
described above;

                  (iii) The original issue discount (or, in the case of the
Mortgage Loans, market discount) or premium accrued or amortized through the end
of such calendar quarter with respect to each Class of regular or residual
interests created hereunder and to the Mortgage Loans, together with each
constant yield to maturity used in computing the same;

                  (iv)  The treatment of losses realized with respect to the
Mortgage Loans or the regular interests created hereunder, including the timing
and amount of any cancellation of indebtedness income of the REMICs with respect
to such regular interests or bad debt deductions claimed with respect to the
Mortgage Loans;

                  (v)   The amount and timing of any non-interest expenses of
the REMICs; and

                                      -80-
<PAGE>

                  (vi)  Any taxes (including penalties and interest) imposed on
the REMICs, including, without limitation, taxes on "prohibited transactions,"
"contributions" or "net income from foreclosure property" or state or local
income or franchise taxes.

      The information pursuant to clauses (i), (ii), (iii) and (iv) above shall
be provided by the Depositor pursuant to Section 8.12.

                                  ARTICLE III

                                THE CERTIFICATES

      SECTION 5.01. The Certificates.

      The Certificates shall be substantially in the forms attached hereto as
exhibits. The Certificates shall be issuable in registered form, in the minimum
dollar denominations, integral dollar multiples in excess thereof (except that
one Certificate of each Class may be issued in a different amount which must be
in excess of the applicable minimum dollar denomination) and aggregate dollar
denominations as set forth in the following table:

<TABLE>
<CAPTION>
                                                                     Original Certificate
                      Minimum            Integral Multiples in       Principal Balance or
Class               Denomination           Excess of Minimum            Notional Amount
-----               ------------         ---------------------       --------------------
<S>                 <C>                  <C>                         <C>
 A                   $25,000.00                 $1.00                   $138,390,000.00
 M-1                 $25,000.00                 $1.00                   $20,502,000.00
 M-2                 $25,000.00                 $1.00                   $16,504,000.00
 B-1                 $25,000.00                 $1.00                   $13,839,000.00
 B-2                 $25,000.00                 $1.00                   $3,588,000.00
 B-3                 $25,000.00                 $1.00                   $12,198,000.00
 C                   (1)                        (1)                     100%
 P                   (2)                        (2)                     (2)
 S                   $100,000.00                $1.00                   $205,021,100.00
 R                   $100.00                     N/A                    $100.00
 X                   $100,000.00                $1.00                   $71,757,350.00
</TABLE>

----------
(1)   The Class C Certificates shall not have minimum dollar denominations or
certificate notional amount and shall be issued in a minimum percentage interest
of 25%. The initial Overcollateralization Amount is $758.50.

(2)   The Class P Certificates shall not have a minimum dollar denomination or
Certificate Principal Balance and shall be issued in a minimum percentage
interest of 100%.

      The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer. Certificates bearing the manual
or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Trust Fund, notwithstanding that such individuals or any of them have ceased
to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such authentication and
delivery. No Certificate shall be entitled to any benefit under this Agreement,
or be valid for any purpose, unless there appears on such Certificate a
certificate of authentication substantially in the form set forth as attached
hereto executed by the Authenticating Agent by manual signature, and

                                      -81-
<PAGE>

such certificate of authentication upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication. On the Closing Date, the Authenticating Agent shall
authenticate the Certificates to be issued at the written direction of the
Depositor, or any Affiliate thereof.

      SECTION 5.02. Certificate Register; Registration of Transfer and Exchange
of Certificates.

            (a)   The Trustee shall maintain, or cause to be maintained in
accordance with the provisions of Section 5.09 hereof, a Certificate Register
for the Trust Fund in which, subject to the provisions of subsections (b) and
(c) below and to such reasonable regulations as it may prescribe, the Trustee
shall provide for the registration of Certificates and of Transfers and
exchanges of Certificates as herein provided. Upon surrender for registration of
Transfer of any Certificate, the Authenticating Agent shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Certificates of the same Class and of like aggregate Percentage Interest.

      At the option of a Certificateholder, Certificates may be exchanged for
other Certificates of the same Class in authorized denominations and evidencing
the same aggregate Percentage Interest upon surrender of the Certificates to be
exchanged at the office or agency of the Trustee. Whenever any Certificates are
so surrendered for exchange, the Trustee shall execute and the Authenticating
Agent shall authenticate and deliver the Certificates that the Certificateholder
making the exchange is entitled to receive. Every Certificate presented or
surrendered for registration of Transfer or exchange shall be accompanied by a
written instrument of Transfer in form satisfactory to the Trustee duly executed
by the holder thereof or his attorney duly authorized in writing.

      No service charge to the Certificateholders shall be made for any
registration of Transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any Transfer or exchange of Certificates may be required. All
Certificates surrendered for registration of Transfer or exchange shall be
canceled and subsequently destroyed by a Trustee in accordance with such
Trustee's customary procedures.

      No transfer of an ERISA Restricted Certificate that is a Class R
Certificate may be made to any Person that is an employee benefit plan subject
to Title I of ERISA, a plan subject to Section 4975 of the Code or a plan
subject to any state, local or other federal law substantively similar to the
foregoing provisions of ERISA or the Code ("Similar Law"), or to any Person
directly or indirectly acquiring such Certificate by, or on behalf of, or with
any assets of any such plan (collectively, "Plan"). Each Person to whom a Class
R Certificate is to be transferred shall be required or deemed to represent that
it is not a Plan.

      No transfer of an ERISA-Restricted Certificate that is a Class B-3, Class
C or Class P Certificate shall be made to any Person unless the Trustee has
received (A) a representation that such transferee is not a Plan, or (B) if the
Certificate has been the subject of an ERISA-Qualifying Underwriting, a
representation that such transferee is an insurance company that is acquiring
the Certificate with funds contained in an "insurance company general account,"
as defined in Section V(e) of Prohibited Transaction Class Exemption ("PTCE")
95-60, and the acquisition and holding of the Certificate are covered and exempt
under Sections I and III of PTCE 95-60, or (C) solely in the case of any such
Certificate that is a Definitive Certificate, an Opinion of Counsel satisfactory
to the Trustee to the effect that the acquisition and holding of such
Certificate will not constitute or result in a nonexempt prohibited transaction
under ERISA or the Code, or a violation of Similar Law, and will not subject the
Trustee, the Servicer or the Depositor to any obligation in addition to those
expressly undertaken in this Agreement, which Opinion of Counsel shall not be an
expense of the Trustee, the Servicer or the Depositor.

                                      -82-
<PAGE>

      For purposes of the two immediately preceding paragraphs of this
Subsection 5.02(a), other than clause (C) in the immediately preceding
paragraph, the representations as set forth therein shall be deemed to have been
made to the Trustee by the transferee's acceptance of an ERISA Restricted
Certificate (or the acceptance by a Certificate Owner of the beneficial interest
in any Class of ERISA Restricted Certificates). Notwithstanding any other
provision herein to the contrary, any purported transfer of an ERISA Restricted
Certificate to or on behalf of a Plan without the delivery to the Trustee of a
representation or an Opinion of Counsel satisfactory to the Trustee as described
above shall be void and of no effect. The Trustee shall not be under any
liability to any Person for any registration or transfer of any ERISA Restricted
Certificate that is in fact not permitted by this Section 5.02(a), nor shall the
Trustee be under any liability for making any payments due on such Certificate
to the Holder thereof or taking any other action with respect to such Holder
under the provisions of this Agreement so long as the transfer was registered by
the Trustee in accordance with the foregoing requirements. The Trustee shall be
entitled, but not obligated, to recover from any Holder of any ERISA Restricted
Certificate that was in fact a Plan and that held such Certificate in violation
of this Section 5.02(a) all payments made on such ERISA Restricted Certificate
at and after the time it commenced such holding. Any such payments so recovered
shall be paid and delivered to the last preceding Holder of such Certificate
that is not a Plan.

            (b)   Each Person who has or who acquires any Ownership Interest in
a Class R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Class R
Certificate are expressly subject to the following provisions:

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

                  (ii)  No Ownership Interest in a Class R Certificate may be
purchased, transferred or sold, directly or indirectly, except in accordance
with the provisions hereof. No Ownership Interest in a Class R Certificate may
be registered on the Closing Date or thereafter transferred, and the Trustee
shall not register the Transfer of any Class R Certificate unless, in addition
to the certificates required to be delivered to the Trustee under subparagraph
(a) above, the Trustee shall have been furnished with an affidavit (a "Transfer
Affidavit") of the initial owner or the proposed transferee in the form attached
hereto as Exhibit E-1 and an affidavit of the proposed transferor in the form
attached hereto as Exhibit E-2. In the absence of a contrary instruction from
the transferor of a Class R Certificate, declaration (11) in Appendix A of the
Transfer Affidavit may be left blank. If the transferor requests by written
notice to the Trustee prior to the date of the proposed transfer that one of the
two other forms of declaration (11) in Appendix A of the Transfer Affidavit be
used, then the requirements of this Section 5.02(c)(ii) shall not have been
satisfied unless the Transfer Affidavit includes such other form of declaration.

                  (iii) Each Person holding or acquiring any Ownership Interest
in a Class R Certificate shall agree (A) to obtain a Transfer Affidavit from any
other Person to whom such Person attempts to Transfer its Ownership Interest in
a Class R Certificate, (B) to obtain a Transfer Affidavit from any Person for
whom such Person is acting as nominee, trustee or agent in connection with any
Transfer of a Class R Certificate and (C) not to Transfer its Ownership Interest
in a Class R Certificate or to cause the Transfer of an Ownership Interest in a
Class R Certificate to any other Person if it has actual knowledge that such
Person is not a Permitted Transferee. Further, no transfer, sale or other
disposition of any Ownership Interest in a Class R Certificate may be made to a
person who is not a U.S. Person (within the meaning of section 7701 of the Code)
unless such person furnishes the transferor, the Trustee with a duly completed
and effective Internal Revenue Service Form W-8ECI (or any successor thereto)
and the Trustee consents to such transfer, sale or other disposition in writing.

                                      -83-
<PAGE>

                  (iv)  Any attempted or purported Transfer of any Ownership
Interest in a Class R Certificate in violation of the provisions of this Section
5.02(b) shall be absolutely null and void and shall vest no rights in the
purported Transferee. If any purported transferee shall become a Holder of a
Class R Certificate in violation of the provisions of this Section 5.02(b), then
the last preceding Permitted Transferee shall be restored to all rights as
Holder thereof retroactive to the date of registration of Transfer of such Class
R Certificate. The Trustee shall be under no liability to any Person for any
registration of Transfer of a Class R Certificate that is in fact not permitted
by Section 5.02(a) and this Section 5.02(b) or for making any payments due on
such Certificate to the Holder thereof or taking any other action with respect
to such Holder under the provisions of this Agreement so long as the Transfer
was registered after receipt of the related Transfer Affidavit. The Trustee
shall be entitled but not obligated to recover from any Holder of a Class R
Certificate that was in fact not a Permitted Transferee at the time it became a
Holder or, at such subsequent time as it became other than a Permitted
Transferee, all payments made on such Class R Certificate at and after either
such time. Any such payments so recovered by the Trustee shall be paid and
delivered by the Trustee to the last preceding Permitted Transferee of such
Certificate.

                  (v)   At the option of the Holder of the Class R Certificate,
the Class LTR Interest, the Class MT1R Interest, the Class MT2R Interest, the
Class MT3R Interest and the Residual Interest in the Upper Tier REMIC may be
severed and represented by separate certificates (with the separate certificate
that represents the Residual Interest also representing all rights of the Class
R Certificate to distributions attributable to a Pass-Through Rate on the Class
R Certificate in excess of the Adjusted Net Rate); provided, however, that such
separate certification may not occur until the Trustee receives an Opinion of
Counsel to the effect that separate certification in the form and manner
proposed would not result in the imposition of federal tax upon the Trust Fund
or any of the REMICs provided for herein or cause any of the REMICs provided for
herein to fail to qualify as a REMIC; and provided further, that the provisions
of Sections 5.02(a) and (b) will apply to each such separate certificate as if
the separate certificate were a Class R Certificate. If, as evidenced by an
Opinion of Counsel, it is necessary to preserve the REMIC status of any of the
REMICs provided for herein, the Class LTR Interest , the Class MT1R Interest,
the Class MT2R Interest and the Residual Interest in the Upper Tier REMIC shall
be severed and represented by separate certificates (with the separate
certificate that represents the Residual Interest also representing all rights
of the Class R Certificate to distributions attributable to a Pass-Through Rate
on the Class R Certificate in excess of the Adjusted Net Rate).

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

            (c)   The transferor of the Class R Certificate shall notify the
Trustee in writing upon the transfer of the Class R Certificate.

                                      -84-
<PAGE>

            (d)   The preparation and delivery of all certificates, opinions and
other writings referred to above in this Section 5.02 shall not be an expense of
the Trust Fund, the Depositor, or the Trustee.

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

      If (a) 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 of the ownership thereof and (b) there is delivered to
the Trustee such security or indemnity as may be required by them to save each
of them harmless, then, in the absence of notice to the Trustee that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute, authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
Class, tenor and Percentage Interest. In connection with 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 and their counsel) connected therewith. Any replacement 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. All
Certificates surrendered to the Trustee under the terms of this Section 5.03
shall be canceled and destroyed by the Trustee in accordance with its standard
procedures without liability on its part.

      SECTION 5.04. Persons Deemed Owners.

      The Trustee and any agent of the Trustee or the may treat the Person in
whose name any Certificate is registered as the owner of such Certificate for
the purpose of receiving distributions as provided in this Agreement and for all
other purposes whatsoever, and neither the Trustee, nor any agent of the Trustee
shall be affected by any notice to the contrary.

      SECTION 5.05. Access to List of Certificateholders' Names and Addresses.

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

      SECTION 5.06. Book-Entry Certificates.

      The Regular Certificates, upon original issuance, shall be issued in the
form of one or more typewritten Certificates representing the Book-Entry
Certificates, to be delivered to the Depository by or on behalf of the
Depositor. The Class C, Class P and Class R Certificates shall be definitive
certificates. The Book-Entry Certificates shall initially be registered on the
Certificate Register in the name of the Depository or its nominee, and no
Certificate Owner of a Book-Entry Certificate will receive a definitive
certificate representing such Certificate Owner's interest in such Certificates,
except as provided in Section 5.08. Unless and until definitive, fully
registered Certificates ("Definitive Certificates") have been issued to the
Certificate Owners of the Book-Entry Certificates pursuant to Section 5.08:

                                      -85-
<PAGE>

            (a)   the provisions of this Section shall be in full force and
effect;

            (b)   the Depositor and the Trustee may deal with the Depository and
the Depository Participants for all purposes (including the making of
distributions) as the authorized representative of the respective Certificate
Owners of the Book-Entry Certificates;

            (c)   registration of the Book-Entry Certificates may not be
transferred by the Trustee except to another Depository;

            (d)   the rights of the respective Certificate Owners of the
Book-Entry Certificates shall be exercised only through the Depository and the
Depository Participants and shall be limited to those established by law and
agreements between the Owners of the Book-Entry Certificates and the Depository
and/or the Depository Participants. Pursuant to the Depository Agreement, unless
and until Definitive Certificates are issued pursuant to Section 5.08, the
Depository will make book-entry transfers among the Depository Participants and
receive and transmit distributions of principal and interest on the related
Certificates to such Depository Participants;

            (e)   the Depository may collect its usual and customary fees,
charges and expenses from its Depository Participants;

            (f)   the Trustee may rely and shall be fully protected in relying
upon information furnished by the Depository with respect to its Depository
Participants; and

            (g)   to the extent that the provisions of this Section conflict
with any other provisions of this Agreement, the provisions of this Section
shall control.

      For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Certificateholders
evidencing a specified percentage of the aggregate unpaid principal amount of
any Class of Certificates, such direction or consent may be given by Certificate
Owners (acting through the Depository and the Depository Participants) owning
Book-Entry Certificates evidencing the requisite percentage of principal amount
of such Class of Certificates.

      SECTION 5.07. Notices to Depository.

      Whenever any notice or other communication is required to be given to
Certificateholders of the Class with respect to which Book-Entry Certificates
have been issued, unless and until Definitive Certificates shall have been
issued to the related Certificate Owners, the Trustee shall give all such
notices and communications to the Depository.

      SECTION 5.08. Definitive Certificates.

      If, after Book-Entry Certificates have been issued with respect to any
Certificates, (a) the Depository or the Depositor advises the Trustee that the
Depository is no longer willing, qualified or able to discharge properly its
responsibilities under the Depository Agreement with respect to such
Certificates and the Trustee or the Depositor is unable to locate a qualified
successor, (b) the Depositor, at its sole option, advises the Trustee that it
elects to terminate the book-entry system with respect to such Certificates
through the Depository or (c) after the occurrence and continuation of an Event
of Default, Certificate Owners of such Book-Entry Certificates having not less
than 51% of the Voting Rights evidenced by any Class of Book-Entry Certificates
advise the Trustee and the Depository in writing through the Depository
Participants that the continuation of a book-entry system with respect to
Certificates of such Class through the Depository (or its successor) is no
longer in the best interests of the Certificate Owners of such Class, then the
Trustee shall notify all Certificate Owners of such Book-Entry

                                      -86-
<PAGE>

Certificates, through the Depository, of the occurrence of any such event and of
the availability of Definitive Certificates to Certificate Owners of such Class
requesting the same. The Depositor shall provide the Trustee with an adequate
inventory of certificates to facilitate the issuance and transfer of Definitive
Certificates. Upon surrender to the Trustee of any such Certificates by the
Depository, accompanied by registration instructions from the Depository for
registration, the Authenticating Agent shall authenticate and the Trustee shall
deliver such Definitive Certificates. Neither the Depositor nor the Trustee
shall be liable for any delay in delivery of such instructions and each may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of such Definitive Certificates, all references herein to
obligations imposed upon or to be performed by the Depository shall be deemed to
be imposed upon and performed by the Trustee, to the extent applicable with
respect to such Definitive Certificates and the Trustee shall recognize the
Holders of such Definitive Certificates as Certificateholders hereunder.

      SECTION 5.09. Maintenance of Office or Agency.

      The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies where Certificates may be surrendered
for registration of transfer or exchange. The Trustee initially designates its
offices at Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479,
Attention: Client Services Manager - Merrill Lynch Mortgage Investors Trust,
Series 2004-SL1 as offices for such purposes. The Trustee will give prompt
written notice to the Certificateholders of any change in such location of any
such office or agency.

                                   ARTICLE IV

                         THE DEPOSITOR AND THE SERVICER

      SECTION 6.01. Respective Liabilities of the Depositor and the Servicer

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

      SECTION 6.02. Merger or Consolidation of the Depositor or the Servicer

      Except as provided in the next paragraph, the Depositor and the Servicer
will each keep in full effect its existence, rights and franchises as a
corporation or banking association under the laws of the United States or under
the laws of one of the States thereof and will each obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform
its respective duties under this Agreement.

      Any Person into which the Depositor or the Servicer may be merged or
consolidated, or any Person resulting from any merger or consolidation to which
the Depositor or the Servicer shall be a party, or any Person succeeding to the
business of the Depositor, or the Servicer, shall be the successor of the
Depositor or Servicer, as the case may be, hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding (except for the execution of an
assumption agreement where such succession is not effected by operation of law);
provided, however, that the successor or surviving Person to the Servicer shall
be qualified to sell mortgage loans to, and to service mortgage loans on behalf
of, Fannie Mae or Freddie Mac.

                                      -87-
<PAGE>

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

      None of the Depositor, the Servicer, nor any of the directors, officers,
employees or agents of the Depositor or the Servicer shall be under any
liability to the Trust Fund or the Certificateholders for any action taken or
for refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Depositor, the Servicer or any such Person against any
breach of representations or warranties made by it herein or protect the
Depositor, the Servicer or any such Person from any liability that would
otherwise be imposed by reasons of willful misfeasance, bad faith or negligence
in the performance of duties or by reason of reckless disregard of obligations
and duties hereunder. The Depositor or the Servicer and any director, officer,
employee or agent of the Depositor or the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. The Depositor or the Servicer and any
director, officer, employee or agent of the Depositor, or the Servicer shall be
indemnified by the Trust Fund and held harmless against any loss, liability or
expense, incurred in connection with the performance of their duties under this
agreement or incurred in connection with any audit, controversy or judicial
proceeding relating to a governmental taxing authority or any legal action
relating to this Agreement or the Certificates, other than any loss, liability
or expense incurred by reason of willful misfeasance, bad faith or negligence in
the performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder. Neither of the Depositor nor the Servicer
shall be under any obligation to appear in, prosecute or defend any legal action
that is not incidental to its respective duties hereunder and that in its
opinion may involve it in any expense or liability; provided, however, that
either the Depositor or the Servicer in its discretion may undertake any such
action that it may deem necessary or desirable in respect of this Agreement and
the rights and duties of the parties hereto and interests of the Trustee and the
Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be, expenses, costs and
liabilities of the Trust Fund, and the Depositor and the Servicer shall be
entitled to be reimbursed therefor out of the Collection Account as provided by
Section 3.08 hereof.

      SECTION 6.04. Limitation on Resignation of Servicer.

      The Servicer shall not resign from the obligations and duties hereby
imposed on it except upon determination that its duties hereunder are no longer
permissible under applicable law. Any such determination permitting the
resignation of the Servicer shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee. No such resignation shall become effective
until the Trustee or a successor servicer reasonably acceptable to the Trustee
is appointed and has assumed the Servicer's responsibilities, duties,
liabilities and obligations hereunder. Any such resignation shall not relieve
the Servicer of any of the obligations specified in Section 7.01 and 7.02 as
obligations that survive the resignation or termination of the Servicer.

      SECTION 6.05. Errors and Omissions Insurance; Fidelity Bonds.

      The Servicer shall, for so long as it acts as servicer under this
Agreement, obtain and maintain in force (a) a policy or policies of insurance
covering errors and omissions in the performance of its obligations as servicer
hereunder, and (b) a fidelity bond in respect of its officers, employees and
agents. Each such policy or policies and bond shall, together, comply with the
requirements from time to time of Fannie Mae or Freddie Mac for Persons
performing servicing for mortgage loans purchased by Fannie Mae or Freddie Mac.
The Servicer shall provide the Trustee, upon request, with copies of such
policies and fidelity bond or a certification from the insurance provider
evidencing such policies and fidelity bond. In the event that any such policy or
bond ceases to be in effect, the Servicer shall use its reasonable best efforts
to obtain a comparable replacement policy or bond from an insurer or issuer
meeting the

                                      -88-
<PAGE>

requirements set forth above as of the date of such replacement. Any such policy
or fidelity bond shall by its terms not be cancelable without thirty days' prior
written notice to the Trustee.

                                   ARTICLE V

                        DEFAULT; TERMINATION OF SERVICER

      SECTION 7.01. Events of Default.

      "Event of Default," wherever used herein, means any one of the following
events:

                  (i)   any failure by the Servicer to make any Advance, to
deposit in the Collection Account or the Certificate Account or remit to the
Trustee any payment (excluding a payment required to be made under Section 4.01
hereof) required to be made under the terms of this Agreement, which failure
shall continue unremedied for three Business Days and, with respect to a payment
required to be made under Section 4.01 hereof, for one Business Day, after the
date on which written notice of such failure shall have been given to the
Servicer by the Trustee or the Depositor, or to the Trustee and the 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 Servicer to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Servicer contained in this Agreement or any representation or warranty shall
prove to be untrue, which failure or breach shall continue unremedied for a
period of 60 days after the date on which written notice of such failure shall
have been given to the Servicer by the Trustee or the Depositor, or to the
Trustee by the Holders of Certificates evidencing not less than 25% of the
Voting Rights evidenced by the Certificates; or

                  (iii) a decree or order of a court or agency or supervisory
authority having jurisdiction for the appointment of a 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, shall
have been entered against the Servicer and such decree or order shall have
remained in force undischarged or unstayed for a period of 60 consecutive days;
or

                  (iv)  consent by the Servicer to the appointment of a receiver
or liquidator in any insolvency, readjustment of debt, marshaling of assets and
liabilities or similar proceedings of or relating to the Servicer or all or
substantially all of the property of the Servicer; or

                  (v)   admission by a Servicer in writing of its inability to
pay its debts generally as they become due, file a petition to take advantage
of, or commence a voluntary case under, any applicable insolvency or
reorganization statute, make an assignment for the benefit of its creditors, or
voluntarily suspend payment of its obligations.

      If an Event of Default shall occur with respect to the Servicer, then, and
in each and every such case, so long as such Event of Default shall not have
been remedied within the applicable grace period, or solely with respect to
clause (i) above by 5:00 p.m. on the Servicer Remittance Date, the Trustee may,
or at the direction of the Holders of Certificates evidencing not less than 25%
of the Voting Rights evidenced by the Certificates, shall, by notice in writing
to the Servicer (with a copy to each Rating Agency), terminate all of the rights
and obligations of the Servicer under this Agreement and in and to the Mortgage
Loans and the proceeds thereof, other than its rights as a Certificateholder
hereunder. On or after the receipt by the Servicer of such written notice, all
authority and power of the Servicer hereunder, whether with respect to the
Mortgage Loans or otherwise, shall pass to and be vested in the Trustee. To the
extent the Event of Default resulted from the failure of the Servicer to make a
required Advance, the

                                      -89-
<PAGE>

Trustee shall thereupon make any Advance described in Section 4.01 hereof
subject to Section 3.04 hereof. The Trustee is hereby authorized and empowered
to execute and deliver, on behalf of the Servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and endorsement or
assignment of the Mortgage Loans and related documents, or otherwise. Unless
expressly provided in such written notice, no such termination shall affect any
obligation of the Servicer to pay amounts owed pursuant to Article VIII. The
Servicer agrees to cooperate with the Trustee in effecting the termination of
the Servicer's responsibilities and rights hereunder, including, without
limitation, the transfer to the Trustee of all cash amounts which shall at the
time be credited to the Collection Account, or thereafter be received with
respect to the Mortgage Loans. The Servicer and the Trustee shall promptly
notify the Rating Agencies of the occurrence of an Event of Default or an event
that, with notice, passage of time, other action or any combination of the
foregoing would be an Event of Default, such notice to be provided in any event
within two Business Days of such occurrence.

      Notwithstanding any termination of the activities of the Servicer
hereunder, the Servicer shall be entitled to receive, out of any late collection
of a Scheduled Payment on a Mortgage Loan that was due prior to the notice
terminating the Servicer's rights and obligations as Servicer hereunder and
received after such notice, that portion thereof to which the Servicer would
have been entitled pursuant to Sections 3.08(a)(i) through (viii), and any other
amounts payable to the Servicer hereunder the entitlement to which arose prior
to the termination of its activities hereunder. Notwithstanding anything herein
to the contrary, upon termination of the Servicer hereunder, any liabilities of
the Servicer which accrued prior to such termination shall survive such
termination.

      SECTION 7.02. Trustee to Act; Appointment of Successor.

      On and after the time the Servicer receives a notice of termination
pursuant to Section 7.01 hereof, the Trustee shall, to the extent provided in
Section 3.04, be the successor to the Servicer in its capacity as servicer under
this Agreement and the transactions set forth or provided for herein and shall
be subject to all the responsibilities, duties and liabilities relating thereto
placed on the Servicer by the terms and provisions hereof and applicable law
including the obligation to make advances pursuant to Section 4.01. As
compensation therefor, subject to the last paragraph of Section 7.01, the
Trustee shall be entitled to all fees, compensation and reimbursement for costs
and expenses that the Servicer would have been entitled to hereunder if the
Servicer had continued to act hereunder. Notwithstanding the foregoing, if the
Trustee has become the successor to the Servicer in accordance with Section 7.01
hereof, the Trustee may, if it shall be unwilling to so act, or shall, if it is
prohibited by applicable law from making Advances pursuant to Section 4.01
hereof or if it is otherwise unable to so act, appoint, or petition a court of
competent jurisdiction to appoint, any established mortgage loan servicing
institution the appointment of which successor shall not adversely affect the
then current rating of the Certificates by each Rating Agency as the successor
to the Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer hereunder. Any successor
Servicer shall be an institution that is a Fannie Mae and Freddie Mac approved
seller/servicer in good standing, that has a net worth of at least $15,000,000,
and that is willing to service the Mortgage Loans and executes and delivers to
the Depositor and the Trustee an agreement accepting such delegation and
assignment, that contains an assumption by such Person of the rights, powers,
duties, responsibilities, obligations and liabilities of the Servicer (other
than liabilities of the Servicer under Section 6.03 hereof incurred prior to
termination of the Servicer under Section 7.01), with like effect as if
originally named as a party to this Agreement; and provided further that each
Rating Agency acknowledges that its rating of the Certificates in effect
immediately prior to such assignment and delegation will not be qualified or
reduced as a result of such assignment and delegation. No appointment of a
successor to the Servicer hereunder shall be effective until the Trustee shall
have consented thereto and written notice of such proposed appointment shall
have been provided

                                      -90-
<PAGE>

by the Trustee to each Certificateholder. The Trustee shall not resign as
servicer until a successor servicer has been appointed and has accepted such
appointment. Pending appointment of a successor to the Servicer hereunder, the
Trustee, unless the Trustee is prohibited by law from so acting, shall, subject
to Section 3.04 hereof, 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 Mortgage
Loans as it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted the Servicer hereunder. The
Trustee and such successor shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession. Neither the
Trustee nor any other successor servicer shall be deemed to be in default
hereunder by reason of any failure to make, or any delay in making, any
distribution hereunder or any portion thereof or any failure to perform, or any
delay in performing, any duties or responsibilities hereunder, in either case
caused by the failure of the Servicer to deliver or provide, or any delay in
delivering or providing, any cash, information, documents or records to it.

      Any successor to the Servicer as servicer shall give notice to the
Mortgagors of such change of servicer and shall, during the term of its service
as servicer maintain in force the policy or policies that the Servicer is
required to maintain pursuant to Section 6.05.

      SECTION 7.03. Notification to Certificateholders.

            (a)   Upon any termination of or appointment of a successor to the
Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders, the Trustee and to each Rating Agency.

            (b)   Within 60 days after the occurrence of any Event of Default,
the Trustee shall transmit by mail to all Certificateholders notice of each such
Event of Default hereunder known to the Trustee, unless such Event of Default
shall have been cured or waived.

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

      SECTION 8.01. Duties of the Trustees.

      The Trustee prior to the occurrence of an Event of Default and after the
curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred and remains uncured, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs. In case an Event of Default or other default by the
Servicer or the Depositor hereunder shall occur and be continuing, the Trustee,
shall, at the written direction of the majority of the Certificateholders, or
may, proceed to protect and enforce its rights and the rights of the
Certificateholders under this Agreement by a suit, action or proceeding in
equity or at law or otherwise, whether for the specific performance of any
covenant or agreement contained in this agreement or in aid of the execution of
any power granted in this Agreement or for the enforcement of any other legal,
equitable or other remedy, as the Trustee, being advised by counsel, and subject
to the foregoing, shall deem most effectual to protect and enforce any of the
rights of the Trustee and the Certificateholders.

      The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement shall examine them to determine whether they conform on their
face

                                      -91-
<PAGE>

to the requirements of this Agreement. If any such instrument is found not to
conform on its face to the requirements of this Agreement in a material manner,
the Trustee shall notify the person providing such Agreement of such
non-conformance, and if the instrument is not corrected to the its satisfaction,
the Trustee will provide notice thereof to the Certificateholders and take such
further action as directed by the Certificateholders.

      No provision of this Agreement shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own misconduct, its negligent failure to perform its obligations in
compliance with this Agreement, or any liability that would be imposed by reason
of its willful misfeasance or bad faith; provided, however, that:

                  (i)   prior to the occurrence of an Event of Default, and
after the curing of all such Events of Default that 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, individually or
as Trustee except for the performance of such duties and obligations as are
specifically set forth in this Agreement, no implied covenants or obligations
shall be read into this Agreement against the Trustee and, 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 that it reasonably
believed in good faith to be genuine and to have been duly executed by the
proper authorities respecting any matters arising hereunder;

                  (ii)  the Trustee shall not individually or as Trustee be
liable for an error of judgment made in good faith by a Responsible Officer or
Responsible Officers of the Trustee unless the Trustee was negligent or acted in
bad faith or with willful misfeasance; and

                  (iii) the Trustee shall not be liable, individually or as
Trustee, with respect to any action taken, suffered or omitted to be taken by it
in good faith in accordance with the direction of the Holders in accordance with
this Agreement relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee under this Agreement.

      SECTION 8.02. Certain Matters Affecting the Trustee.

            (a)   Except as otherwise provided in Section 8.01:

                  (i)   the Trustee may request and conclusively rely upon and
shall be fully protected in acting or refraining from acting upon any
resolution, Officer's Certificate, certificate of auditors or any other
certificate, statement, instrument, opinion, report, notice, request, consent,
order, appraisal, bond or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;

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

                  (iii) 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;

                  (iv)  prior to the occurrence of an Event of Default hereunder
and after the curing of all Events of Default that may have occurred, the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion,

                                      -92-
<PAGE>

report, notice, request, consent, order, approval, bond or other paper or
document, unless requested in writing so to do by the Holders of each Class of
Certificates evidencing not less than 25% of the Voting Rights of such Class;

                  (v)   the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents, custodians, accountants or attorneys or independent contractors and the
Trustee will not be responsible for any misconduct or negligence on the part of
any agent, custodian, accountant, attorney or independent contractor appointed
with due care by it hereunder;

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

                  (vii) the Trustee shall not be liable, individually or as
Trustee, for any loss on any investment of funds pursuant to this Agreement
(other than as issuer of the investment security);

                  (viii) the Trustee shall not be deemed to have knowledge of an
Event of Default until a Responsible Officer of the Trustee shall have received
written notice thereof;

                  (ix)  the Trustee shall be under no obligation to exercise any
of the trusts or powers vested in it by this Agreement or to make any
investigation of matters arising hereunder 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
security or indemnity satisfactory to it against the costs, expenses and
liabilities that may be incurred therein or thereby; and

                  (x)   if requested by the Servicer, the Trustee may appoint
the Servicer as the trustee's attorney-in-fact in order to carry out and perform
certain activities that are necessary or appropriate for the servicing and
administration of the Mortgage Loans pursuant to this Agreement. Such
appointment shall be evidenced by a power of attorney in such form as may be
agreed to by the Trustee and the Servicer. The Trustee shall have no liability
for any action or inaction of the Servicer in connection with such power of
attorney and the Trustee shall be indemnified by the Servicer for all
liabilities, costs and expenses incurred by the Trustee in connection with the
Servicer's use or misuse of such powers of attorney; and

            (b)   All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee without
the possession of any of the Certificates, or the production thereof at the
trial or other proceeding relating thereto, and any such suit, action or
proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates, subject to the provisions of
this Agreement. The Trustee shall have no duty (A) to see to any recording,
filing, or depositing of this Agreement or any agreement referred to herein or
any financing statement or continuation statement evidencing a security
interest, or to see to the maintenance of any rerecording, refiling or
redepositing, as applicable, thereof, (B) to see to any insurance or (C) to see
to the payment or discharge of any tax, assessment, or other governmental charge
or any lien or encumbrance of any kind owing with respect to, assessed or levied
against, any part of the Trust Fund.

                                      -93-
<PAGE>

      SECTION 8.03. Trustee Not Liable for Certificates or Mortgage Loans.

      The recitals contained herein shall be taken as the statements of the
Depositor or the Servicer, as the case may be, and the Trustee assumes no
responsibility for their correctness. The Trustee does not make any
representations as to the validity or sufficiency of this Agreement, of any
Mortgage Loan, or any related document other than with respect to the execution
and authentication of the Certificates, if it so executed or authorized the
Certificates. The Trustee shall not be accountable for the use or application by
the Depositor or the Servicer of any funds paid to the Depositor, or the
Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the
Collection Account or the Certificate Account by the Depositor or the Servicer.

      SECTION 8.04. Trustee May Own Certificates.

      The Trustee in its individual or any other capacity may become the owner
or pledgee of Certificates with the same rights as it would have if it was not
the Trustee.

      SECTION 8.05. Trustee's Fees and Expenses.

      The Trustee shall be entitled to earnings on or investment income with
respect to funds in or credited to the Certificate Account.

      SECTION 8.06. Indemnification and Expenses of Trustee.

            (a)   The Trustee and its respective directors, officers, employees
and agents shall be entitled to indemnification from the Trust Fund for any
loss, liability or expense incurred in connection with (i) any audit,
controversy or judicial proceeding relating to a governmental authority or any
legal proceeding incurred without negligence or willful misconduct on their
part, arising out of, or in connection with the acceptance or administration of
the trusts created hereunder and (ii) the performance of their duties hereunder,
including any applicable fees and expenses payable hereunder, and the costs and
expenses of defending themselves against any claim in connection with the
exercise or performance of any of their powers or duties hereunder, provided
that:

                  (i)   with respect to any such claim, the Trustee shall have
given the Depositor written notice thereof promptly after the Trustee shall have
knowledge thereof; provided that failure to so notify shall not relieve the
Trust Fund of the obligation to indemnify the Trustee; however, any reasonable
delay by the Trustee to provide written notice to the Depositor and the Holders
promptly after the Trustee shall have obtained knowledge of a claim shall not
relieve the Trust Fund of the obligation to indemnify the Trustee under this
Section 8.06;

                  (ii)  while maintaining control over its own defense, the
Trustee shall reasonably cooperate and consult with the Depositor in preparing
such defense;

                  (iii) notwithstanding anything to the contrary in this Section
8.06, the Trust Fund shall not be liable for settlement of any such claim by the
Trustee entered into without the prior consent of the Depositor, which consent
shall not be unreasonably withheld or delayed; and

                  (iv)  indemnification therefor would constitute "unanticipated
expenses" within the meaning of Treasury Regulation Section 1.860G-1(b)(ii).

      The provisions of this Section 8.06 shall survive any termination of this
Agreement and the resignation or removal of the Trustee and shall be construed
to include, but not be limited to any loss, liability or expense under any
environmental law.

                                      -94-
<PAGE>

            (b)   The Trustee shall be entitled to all reasonable expenses,
disbursements and advancements incurred or made by the Trustee in accordance
with this Agreement (including fees and expenses of its counsel and all persons
not regularly in its employment), except any such expenses, disbursements and
advancements that either (i) arise from its negligence, bad faith or willful
misconduct or (ii) do not constitute "unanticipated expenses" within the meaning
of Treasury Regulations Section 1.860G-1(b)(3)(ii).

      SECTION 8.07. Eligibility Requirements for Trustee.

      The Trustee hereunder shall, at all times, be a corporation or association
organized and doing business under the laws of a state or the United States of
America, authorized under such laws to exercise corporate trust powers having a
combined capital and surplus of at least $50,000,000, subject to supervision or
examination by federal or state authority and with a credit rating that would
not cause any of the Rating Agencies to reduce their respective ratings of any
Class of Certificates below the ratings issued on the Closing Date (or having
provided such security from time to time as is sufficient to avoid such
reduction). If such corporation or association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section 8.07
the combined capital and surplus of such corporation or association shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trustee shall cease to
be eligible in accordance with the provisions of this Section 8.07, the Trustee
shall resign immediately in the manner and with the effect specified in Section
8.08 hereof. The corporation or national banking association serving as Trustee
may have normal banking and trust relationships with the Depositor and its
respective Affiliates; provided, however, that such corporation cannot be an
Affiliate of the Servicer other than the Trustee in its role as successor to the
Servicer.

      SECTION 8.08. Resignation and Removal of Trustee.

      The Trustee may at any time resign and be discharged from the trusts
hereby created by (1) giving written notice of resignation to the Depositor by
mailing notice of resignation by first class mail, postage prepaid, to the
Certificateholders at their addresses appearing on the Certificate Register and
each Rating Agency, not less than 60 days before the date specified in such
notice when, subject to Section 8.09, such resignation is to take effect, and
(2) acceptance of appointment by a successor trustee in accordance with Section
8.09 and meeting the qualifications set forth in Section 8.07. If no successor
trustee shall have been so appointed and have accepted appointment within 30
days after the giving of such notice or resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee.

      If at any time (i) the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.07 hereof and shall fail to resign after
written request thereto by the Depositor or (ii) the Trustee shall become
incapable of acting, or shall be adjudged as bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor may remove the Trustee and shall promptly appoint a successor trustee
by written instrument, in triplicate, one copy of which instrument shall be
delivered to the Trustee, one copy of which shall be delivered to the Servicer
and one copy of which shall be delivered to the successor trustee.

      The Holders evidencing at least 51% of the Voting Rights of all Classes of
Certificates may at any time remove the Trustee and the Depositor shall appoint
a successor trustee by written instrument or instruments, in triplicate, signed
by such Holders or their attorneys-in-fact duly authorized, one complete set of
which instruments shall be delivered by the successor trustee to the Trustee so
removed and one

                                      -95-
<PAGE>

complete set to the successor so appointed. Notice of any removal of the Trustee
shall be given to each Rating Agency by the successor trustee.

      Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 8.08 shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.09 hereof.

      SECTION 8.09. Successor Trustee.

      Any successor trustee appointed as provided in Section 8.08 hereof shall
execute, acknowledge and deliver to the Depositor and to its predecessor trustee
an instrument accepting such appointment hereunder and thereupon the resignation
or removal of the predecessor trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become fully vested
with all the rights, powers, duties and obligations of its predecessor
hereunder, with the like effect as if originally named as trustee herein.

      No successor trustee shall accept appointment as provided in this Section
8.09 unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 8.07 hereof and its appointment shall
not adversely affect the then current rating of the Certificates.

      Upon acceptance of appointment by a successor trustee as provided in this
Section 8.09, the Depositor shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates. If the Depositor fails to mail such
notice within ten days after acceptance of appointment by the successor trustee,
the successor trustee shall cause such notice to be mailed at the expense of the
Depositor.

      SECTION 8.10. Merger or Consolidation of Trustee.

      Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be eligible under the provisions of Section
8.07 hereof without the execution or filing of any paper or further act on the
part of any of the parties hereto, anything herein to the contrary
notwithstanding (except for the execution of an assumption agreement where such
succession is not effected by operation of law).

      SECTION 8.11. Appointment of Co-Trustee or Separate Trustee.

      Notwithstanding any other provisions of this Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Trust Fund or property securing any Mortgage Note may at the time be
located, the Trustee shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Trustee to act as
co-trustee or co-trustees jointly with the Trustee, or separate trustee or
separate trustees, of all or any part of the Trust Fund, and to vest in such
Person or Persons, in such capacity and for the benefit of the
Certificateholders, such title to the Trust Fund or any part thereof, whichever
is applicable, and, subject to the other provisions of this Section 8.11, such
powers, duties, obligations, rights and trusts as the Trustee may consider
necessary or desirable. Any such co-trustee or separate trustee shall be
compensated by the Trust Fund and subject to the written approval of the
Servicer. The Trustee shall not be liable for the actions of any co-trustee
appointed with due care; provided that the appointment of a co-trustee shall not
relieve the Trustee of its obligations hereunder. If the Servicer shall not have
joined in such appointment within 15 days after the receipt by it of a request
to do so, or in the case an Event of Default shall have occurred and be
continuing,

                                      -96-
<PAGE>

the Trustee alone shall have the power to make such appointment. No co-trustee
or separate trustee hereunder shall be required to meet the terms of eligibility
as a successor trustee under Section 8.07 and no notice to Certificateholders of
the appointment of any co-trustee or separate trustee shall be required under
Section 8.09.

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

                  (i)   All rights, powers, duties and obligations conferred or
imposed upon the Trustee shall be conferred or imposed upon and exercised or
performed by the Trustee and such separate trustee or co-trustee jointly (it
being understood that such separate trustee or co-trustee is not authorized to
act separately without the Trustee joining in such act), except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed (whether as Trustee hereunder or as successor to the Servicer
hereunder), the Trustee shall be incompetent or unqualified to perform such act
or acts, in which event such rights, powers, duties and obligations (including
the holding of title to the Trust Fund or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee
or co-trustee, but solely at the direction of the Trustee;

                  (ii)  No trustee hereunder shall be held personally liable by
reason of any act or omission of any other trustee hereunder; and

                  (iii) The Trustee may at any time accept the resignation of or
remove any separate trustee or co-trustee.

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

      Any separate trustee or co-trustee may, at any time, constitute the
Trustee its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.

      SECTION 8.12. Tax Matters.

            (a)   It is intended that each of the REMICs provided for herein
REMIC shall constitute, and that the affairs of the Trust Fund shall be
conducted so as to allow each such REMIC to qualify as, a "real estate mortgage
investment conduit" as defined in and in accordance with the REMIC Provisions.
It is also intended that each of the grantor trusts provided for in Section 2.07
hereof shall constitute, and that the affairs of the Trust Fund shall be
conducted so as to allow each such grantor trust to qualify as, a grantor trust
under the provisions of Subpart E, Part I of Subchapter J of the Code. In
furtherance of such intention, the Trustee covenants and agrees that it shall
act as agent (and the Trustee is hereby appointed to act as agent) on behalf of
each of the REMICs and grantor trusts provided for herein

                                      -97-
<PAGE>

and that in such capacity it shall: (a) prepare and file, or cause to be
prepared and filed, in a timely manner, a U.S. Real Estate Mortgage Investment
Conduit Income Tax Return (Form 1066 or any successor form adopted by the
Internal Revenue Service) and prepare and file or cause to be prepared and filed
with the Internal Revenue Service and applicable state or local tax authorities
income tax or information returns for each taxable year with respect to each of
the REMICs and grantor trusts provided for herein, containing such information
and at the times and in the manner as may be required by the Code or state or
local tax laws, regulations, or rules, and furnish or cause to be furnished to
Certificateholders the schedules, statements or information at such times and in
such manner as may be required thereby; (b) within thirty days of the Closing
Date, furnish or cause to be furnished to the Internal Revenue Service, on Forms
8811 or SS-4 or as otherwise may be required by the Code, the name, title,
address, and telephone number of the person that the holders of the Certificates
may contact for tax information relating thereto, together with such additional
information as may be required by such Form, and update such information at the
time or times in the manner required by the Code for each of the REMICs provided
for herein; (c) make or cause to be made elections, on behalf of each of the
REMICs provided for herein to be treated as a REMIC on the federal tax return of
such REMICs for their first taxable years (and, if necessary, under applicable
state law); (d) prepare and forward, or cause to be prepared and forwarded, to
the Certificateholders and to the Internal Revenue Service and, if necessary,
state tax authorities, all information returns and reports as and when required
to be provided to them in accordance with the REMIC Provisions or other
applicable tax law or with respect to the grantor trusts provided for herein,
including without limitation, the calculation of any original issue discount
using the Prepayment Assumption; (e) provide information necessary for the
computation of tax imposed on the transfer of a Class R Certificate to a Person
that is not a Permitted Transferee, or an agent (including a broker, nominee or
other middleman) of a Person that is not a Permitted Transferee, or a
pass-through entity in which a Person that is not a Permitted Transferee is the
record holder of an interest (the reasonable cost of computing and furnishing
such information may be charged to the Person liable for such tax); (f) to the
extent that they are under its control conduct the affairs of each of the REMICs
and grantor trusts provided for herein at all times that any Certificates are
outstanding so as to maintain the status of each of the REMICs provided for
herein as a REMIC under the REMIC Provisions and the status of each of the
grantor trusts provided for herein as a grantor trust under Subpart E, Part I of
subchapter J of the Code; (g) not knowingly or intentionally take any action or
omit to take any action that would cause the termination of the REMIC status of
any of the REMICs provided for herein or result in the imposition of tax upon
any such REMIC; (h) not knowingly or intentionally take any action or omit to
take any action that would cause the termination of the grantor trust status
under Subpart E, Part I of Subchapter J of the Code of any of the grantor trusts
provided to herein or result in the imposition of tax upon any such grantor
trusts; (i) pay, from the sources specified in the last paragraph of this
Section 8.12, the amount of any federal, state and local taxes, including
prohibited transaction taxes as described below, imposed on each of the REMICs
or grantor trusts provided for herein prior to the termination of the Trust Fund
when and as the same shall be due and payable (but such obligation shall not
prevent the Trustee or any other appropriate Person from contesting any such tax
in appropriate proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of such
proceedings); (j) sign or cause to be signed by the required person federal,
state or local income tax or information returns; (k) maintain records relating
to each of the REMICs and grantor trusts provided for herein, including but not
limited to the income, expenses, assets and liabilities of each of the REMICs
and grantor trusts provided for herein, and the fair market value and adjusted
basis of the Trust Fund property determined at such intervals as may be required
by the Code, as may be necessary to prepare the foregoing returns, schedules,
statements or information, in each instance, to the extent provided by the
Servicer; and (l) as and when necessary and appropriate, represent each of the
REMICs and grantor trusts provided for herein in any administrative or judicial
proceedings relating to an examination or audit by any governmental taxing
authority, request an administrative adjustment as to any taxable year of any of
the REMICs provided for herein, enter into settlement agreements with any
governmental taxing agency, extend any statute of limitations relating to any
tax item of any of the REMICs provided for herein, and

                                      -98-
<PAGE>

otherwise act on behalf of each of the REMICs and grantor trusts provided for
herein in relation to any tax matter involving any of such REMICs or any
controversy involving the Trust Fund.

      In order to enable the Trustee to perform its duties as set forth herein,
the Depositor shall provide, or cause to be provided, to the Trustee within 10
days after the Closing Date all information or data that the Trustee requests in
writing and determines to be relevant for tax purposes to the valuations and
offering prices of the Certificates, including, without limitation, the price,
yield, prepayment assumption and projected cash flows of the Certificates and
the Mortgage Loans. Thereafter, the Depositor shall provide to the Trustee
promptly upon written request therefor, any such additional information or data
that the Trustee may, from time to time, request in order to enable the Trustee
to perform its duties as set forth herein. The Depositor hereby agrees to
indemnify the Trustee for any losses, liabilities, damages, claims or expenses
of the Trustee arising from any errors or miscalculations of the Trustee that
result from any failure of the Depositor to provide, or to cause to be provided,
accurate information or data to the Trustee on a timely basis.

      In the event that any tax is imposed on "prohibited transactions" of any
of the REMICs provided for herein as defined in Section 860F(a)(2) of the Code,
on the "net income from foreclosure property" of the any of such REMICs as
defined in Section 860G(c) of the Code, on any contribution to the Trust Fund
after the Startup Day pursuant to Section 860G(d) of the Code, or any other tax
is imposed including any minimum tax imposed on any REMIC created hereunder
pursuant to sections 23153 and 24874 of the California Revenue and Taxation
Code, if not paid as otherwise provided for herein, such tax shall be paid by
(i) the Trustee, if any such other tax arises out of or results from a breach by
the Trustee of any of its obligations under this Agreement or as a result of the
location of the Trustee, (ii) any party hereto (other than the Trustee) to the
extent any such other tax arises out of or results from a breach by such other
party of any of its obligations under this Agreement or (iii) in all other
cases, or in the event that any liable party here fails to honor its obligations
under the preceding clauses (i) or (ii), any such tax will be paid first with
amounts otherwise to be distributed to the Class R Certificateholders (pro rata)
pursuant to Section 4.04, and second with amounts otherwise to be distributed to
all other Certificateholders in the following order of priority: first, to the
Class C Certificates (pro rata), second to the Class B-3 Certificates (pro
rata), third to the Class B-2 Certificates (pro rata), fourth to the Class B-1
Certificates (pro rata), fifth, to the Class M-2 Certificates (pro rata), sixth,
to the Class M-1 Certificates (pro rata) and seventh to the Class A Certificates
and Class R Certificate (pro rata). Notwithstanding anything to the contrary
contained herein, to the extent that such tax is payable by the Class R
Certificate, the Trustee is hereby authorized pursuant to such instruction to
retain on any Distribution Date, from the Holders of the Class R Certificate
(and, if necessary, from the Holders of all other 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 agrees to promptly
notify in writing the party liable for any such tax of the amount thereof and
the due date for the payment thereof.

            (b)   Each of the Depositor and the Trustee agrees not to knowingly
or intentionally take any action or omit to take any action that would (i) cause
the termination of the REMIC status of any of the REMICs provided for herein or
result in the imposition of a tax upon any of the REMICs provided for herein or
(ii) cause the termination of the grantor trust status of any of the grantor
trusts provided for herein or result in the imposition of a tax upon any of the
grantor trusts provided for herein.

                                      -99-
<PAGE>

                                  ARTICLE VII

                                  TERMINATION

      SECTION 9.01. Termination upon Liquidation or Repurchase of all Mortgage
Loans.

      Subject to Section 9.03, the obligations and responsibilities of the
Depositor, the Servicer, and the Trustee created hereby with respect to the
Trust Fund shall terminate upon the earlier of

      (a)   an Optional Termination and (b) the later of (i) the maturity or
other liquidation (or any Advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and the disposition of all REO Property and
(ii) the distribution to Certificateholders of all amounts required to be
distributed to them pursuant to this Agreement, as applicable. In no event shall
the trusts created hereby continue beyond the earlier of (i) the expiration of
21 years from the death of the last survivor of the descendants of Joseph P.
Kennedy, the late Ambassador of the United States to the Court of St. James's,
living on the date hereof and (ii) the Latest Possible Maturity Date.

      (b)   On or before the Determination Date following the Initial Optional
Termination Date, the Trustee shall attempt to terminate the Trust Fund by
conducting an auction of all of the Mortgage Loans and REO Properties via a
solicitation of bids from at least three (3) bidders, each of which shall be a
nationally recognized participant in mortgage finance (the "Auction"). The
Depositor and the Trustee agree to work in good faith to develop bid procedures
in advance of the Initial Optional Termination Date to govern the operation of
the Auction. The Trustee shall be entitled to retain an investment banking firm
and/or other agents in connection with the Auction, the cost of which shall be
included in the Optional Termination Price (unless an Optional Termination does
not occur in which case such costs shall be an expense of the Trust Fund). The
Trustee shall accept the highest bid received at the Auction; provided that the
amount of such bid equals or exceeds the Optional Termination Price. The Trustee
shall determine the Optional Termination Price based upon information provided
by (i) the Servicer with respect to the amounts described in clauses (A) and (B)
of the definition of "Optional Termination Price" (other than Trustee expenses),
(ii) the Depositor with respect to the information described in clause (C) of
the definition of "Optional Termination Price." The Trustee may conclusively
rely upon the information provided to it in accordance with the immediately
preceding sentence and shall not have any liability for the failure of any party
to provide such information.

      If an Optional Termination does not occur as a result of the Auction's
failure to achieve the Optional Termination Price, the Servicer may, on any
Distribution Date following such Auction, at its option, terminate the Trust
Fund by purchasing all of the Mortgage Loans and REO Properties at a price equal
to the Optional Termination Price. In connection with such termination, the
Optional Termination Price shall be delivered to the Trustee no later than the
Business Day immediately preceding the related Distribution Date.
Notwithstanding anything to the contrary herein, the Optional Termination Amount
paid to the Trustee by the winning bidder at the Auction or by the Servicer
shall be deposited by the Trustee directly into the Certificate Account
immediately upon receipt. Upon any termination as a result of an Auction, the
Trustee shall, out of the Optional Termination Amount deposited into the
Certificate Account, (x) retain for its own account, its costs and expenses
necessary to conduct the Auction and any other unreimbursed amounts owing to it
and (y) pay to the Servicer, the aggregate amount of any unreimbursed
out-of-pocket costs and expenses owed to the servicer and any unpaid or
unreimbursed Servicing Fees, Advances and Servicing Advances.

      (c)   Notwithstanding anything to the contrary in clause (b) above, in the
event that the Trustee receives the written opinion of a nationally recognized
participant in mortgage finance acceptable to the Seller that the Mortgage Loans
and REO Properties to be included in the Auction will not be saleable at a price
sufficient to achieve the Optional Termination Price, the Trustee need not
conduct the Auction. In

                                     -100-
<PAGE>

such event, the Servicer shall have the option to purchase the Mortgage Loans
and REO Properties at the Optional Termination Price as of the Initial Optional
Termination Date.

      SECTION 9.02. Final Distribution on the Certificates.

      If on any Determination Date, (i) the Trustee determines that there are no
Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
than the funds in the Collection Account, the Trustee shall send a final
distribution notice promptly to each Certificateholder or (ii) the Trustee
determines that a Class of Certificates shall be retired after a final
distribution on such Class, the Trustee shall notify the Certificateholders
within seven (7) Business Days after such Determination Date that the final
distribution in retirement of such Class of Certificates is scheduled to be made
on the immediately following Distribution Date. Any final distribution made
pursuant to the immediately preceding sentence will be made only upon
presentation and surrender of the Certificates at the office of the Trustee
specified in such notice.

      Notice of any termination of the Trust Fund, specifying the Distribution
Date on which Certificateholders may surrender their Certificates for payment of
the final distribution and cancellation, shall be given promptly by the Trustee
by letter to Certificateholders mailed no later than the last calendar day of
the month immediately preceding the month of such final distribution (or with
respect to an Auction, mailed no later than one Business Day following
completion of such Auction). Any such notice shall specify (a) the Distribution
Date upon which final distribution on the Certificates will be made upon
presentation and surrender of Certificates at the office therein designated, (b)
the location of the office or agency at which such presentation and surrender
must be made, and (c) that the Record Date otherwise applicable to such
Distribution Date is not applicable, distributions being made only upon
presentation and surrender of the Certificates at the office therein specified.
The Trustee will give such notice to each Rating Agency at the time such notice
is given to Certificateholders.

      In the event such notice is given, the Servicer shall cause all funds in
the Collection Account to be deposited in the Certificate Account on the
Business Day prior to the applicable Distribution Date in an amount equal to the
final distribution in respect of the Certificates. Upon such final deposit with
respect to the Trust Fund, certification to the Trustee that such required
amount has been deposited in the Trust Fund and the receipt by the Trustee of a
Request for Release therefor, the Trustee shall promptly release to the Mortgage
Files for the Mortgage Loans.

      Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to Certificateholders of each Class the amounts
allocable to such Certificates held in the Certificate Account in the order and
priority set forth in Section 4.04 hereof on the final Distribution Date and in
proportion to their respective Percentage Interests.

      In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six months after the date specified in the
above mentioned written notice, the Trustee shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice all the applicable Certificates shall not
have been surrendered for cancellation, the Trustee may take appropriate steps,
or may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets that remain a part of
the Trust Fund. If within one year after the second notice all Certificates
shall not have been surrendered for cancellation, the Class R Certificateholders
shall be entitled to all unclaimed funds and other assets of the Trust Fund that
remain subject hereto. Upon payment to the Class R Certificateholders of such
funds and assets, the Trustee shall not have any further duties or obligations
with respect thereto.

                                     -101-
<PAGE>

      SECTION 9.03. Additional Termination Requirements.

            (a)   In the event the Trustee [or the Servicer] completes an
Optional Termination as provided in Section 9.01, the Trust Fund shall be
terminated in accordance with the following additional requirements, unless the
Trustee has been supplied with an Opinion of Counsel, at the expense of the
Trustee [or Servicer, as applicable] to the effect that the failure of the Trust
Fund to comply with the requirements of this Section 9.03 will not (i) result in
the imposition of taxes on "prohibited transactions" of any of the REMICs
provided for herein as defined in section 860F of the Code, or (ii) cause any of
the REMICs provided for herein 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, which shall in turn specify the first day
of such period in a statement attached to the final tax returns of each of the
REMICs provided for herein 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 obtained at the expense of the Servicer;

                  (ii)  During such 90-day liquidation period, and at or prior
to the time of making the final payment on the Certificates, the Depositor as
agent of the Trustee shall sell all of the assets of the Trust Fund 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 Class R Certificateholders all cash on hand (other than cash
retained to meet outstanding claims), and the Trust Fund shall terminate at that
time, whereupon the Trustee shall not have any further duties or obligations
with respect to sums distributed or credited to the Class R Certificateholders.

            (b)   By their acceptance of the Certificates, the Holders thereof
hereby authorize the Depositor to specify the 90-day liquidation period for the
Trust Fund, which authorization shall be binding upon all successor
Certificateholders.

            (c)   The Trustee as agent for each REMIC hereby agrees to adopt and
sign such a plan of complete liquidation prepared and delivered to it by
Depositor upon the written request of the Depositor, and the receipt of the
Opinion of Counsel referred to in Section 9.03(a) and to take such other action
in connection therewith as may be reasonably requested by the Depositor.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

      SECTION 10.01. Amendment.

      This Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, without the consent of any of the Certificateholders
to,

                  (i)   to cure any ambiguity or correct any mistake,

                  (ii)  to correct, modify or supplement any provision therein
which may be inconsistent with any other provision herein,

                                     -102-
<PAGE>

                  (iii) to add any other provisions with respect to matters or
questions arising under this Agreement, or

                  (iv)  to modify, alter, amend, add to or rescind any of the
terms or provisions contained in this Agreement, provided, however, that, in the
case of clauses (iii) and (iv), such amendment will not, as evidenced by an
Opinion of Counsel to such effect, adversely affect in any material respect the
interests of any Holder; provided, further, however, that such amendment will be
deemed to not adversely affect in any material respect the interest of any
Holder if the Person requesting such amendment obtains a letter from each Rating
Agency stating that such amendment will not result in a reduction or withdrawal
of its rating of any Class of the Certificates, it being understood and agreed
that any such letter in and of itself will not represent a determination as to
the materiality of any such amendment and will represent a determination only as
to the credit issues affecting any such rating.

      Notwithstanding the foregoing, without the consent of the
Certificateholders, the Depositor, the Servicer and the Trustee may at any time
and from time to time amend this Agreement to modify, eliminate or add to any of
its provisions to such extent as shall be necessary or appropriate to maintain
the qualification of any of the REMICs provided for herein as REMICs under the
Code or to avoid or minimize the risk of the imposition of any tax on the Trust
Fund or any of the REMICs provided for herein pursuant to the Code that would be
a claim against the Trust Fund at any time prior to the final redemption of the
Certificates, provided that the Trustee shall have been provided an Opinion of
Counsel, which opinion shall be an expense of the party requesting such
amendment but in any case shall not be an expense of the Trustee, to the effect
that such action is necessary or appropriate to maintain such qualification or
to avoid or minimize the risk of the imposition of such a tax.

      This Agreement may also be amended from time to time by the Depositor, the
Servicer, the Trustee and the Holders of the Certificates affected thereby
evidencing not less than 66 2/3% of the Voting Rights for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions
of this Agreement or of modifying in any manner the rights of the Holders of
Certificates; provided, however, that no such amendment shall (i) reduce in any
manner the amount of, or delay the timing of, payments required to be
distributed on any Certificate without the consent of the Holder of such
Certificate, (ii) adversely affect in any material respect the interests of the
Holders of any Class of Certificates in a manner other than as described in (i),
without the consent of the Holders of Certificates of such Class evidencing
66 2/3% or more of the Voting Rights of such Class or (iii) reduce the aforesaid
percentages of Certificates the Holders of which are required to consent to any
such amendment without the consent of the Holders of all such Certificates then
outstanding.

      Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel, which opinion shall be an expense of the party
requesting such amendment but in any case shall not be an expense of the
Trustee, to the effect that such amendment will not cause the imposition of any
tax on the Trust Fund, any of the REMICs provided for herein or the
Certificateholders or cause any of the REMICs provided for herein to fail to
qualify as a REMIC at any time that any Certificates are outstanding.

      Promptly after the execution of any amendment to this Agreement requiring
the consent of Certificateholders, the Trustee shall furnish written
notification of the substance of such amendment to each Certificateholder and
each Rating Agency.

      It shall not be necessary for the consent of Certificateholders under this
Section to approve the particular form of any proposed amendment, but it shall
be sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents and of evidencing the authorization of the

                                     -103-
<PAGE>

execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

      Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel, satisfactory to the Trustee
that (i) such amendment is permitted and is not prohibited by this Agreement and
that all requirements for amending this Agreement have been complied with; and
(ii) either (A) the amendment does not adversely affect in any material respect
the interests of any Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 10.01.

      The Trustee may, but shall not be obligated to, enter into any supplement,
modification or waiver which affects its rights, duties or obligations
hereunder.

      SECTION 10.02. Counterparts.

      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 10.03. Governing Law.

      THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO
BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF.

      SECTION 10.04. Intention of Parties.

      It is the express intent of the parties hereto that the conveyance of the
Mortgage Notes, Mortgages, assignments of Mortgages, title insurance policies
and any modifications, extensions and/or assumption agreements and private
mortgage insurance policies relating to the Mortgage Loans by the Depositor to
the Trustee be, and be construed as, an absolute sale thereof to the Trustee. It
is, further, not the intention of the parties that such conveyance be deemed a
pledge thereof by the Depositor to the Trustee. However, in the event that,
notwithstanding the intent of the parties, such assets are held to be the
property of the Depositor, or if for any other reason this Agreement is held or
deemed to create a security interest in such assets, then (i) this Agreement
shall be deemed to be a security agreement within the meaning of the Uniform
Commercial Code of the State of New York and (ii) the conveyance provided for in
this Agreement shall be deemed to be an assignment and a grant by the Depositor
to the Trustee, for the benefit of the Certificateholders, of a security
interest in all of the assets that constitute the Trust Fund, whether now owned
or hereafter acquired.

      The Depositor for the benefit of the Certificateholders shall, to the
extent consistent with this Agreement, take such actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the
assets of the Trust Fund, 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 Agreement. The Depositor shall
arrange for filing any Uniform Commercial Code continuation statements in
connection with any security interest granted or assigned to the Trustee for the
benefit of the Certificateholders.

                                     -104-
<PAGE>

      SECTION 10.05. Notices.

            (a)   The Trustee shall use its best efforts to promptly provide
notice to each Rating Agency with respect to each of the following of which it
has actual knowledge:

                  (i)   Any material change or amendment to this Agreement;

                  (ii)  The occurrence of any Event of Default that has not been
cured;

                  (iii) The resignation or termination of the Trustee or the
Servicer and the appointment of any successor;

                  (iv)  The repurchase or substitution of Mortgage Loans
pursuant to Sections 2.02, 2.03 and 3.12;

                  (v)   The final payment to Certificateholders; and

                  (vi)  Any change in the location of the Certificate Account.

      The Trustee shall promptly furnish or make available to each Rating Agency
copies of the following:

                  (i)   Each report to Certificateholders described in Section
4.05;

                  (ii)  Each annual statement as to compliance described in
Section 3.17; and

                  (iii) Each annual independent public accountants' servicing
report described in Section 3.18.

All directions, demands and notices hereunder shall be in writing and shall be
deemed to have been duly given when delivered to (a) in the case of the
Depositor, Merrill Lynch Mortgage Investors, Inc. 250 Vesey Street, 4 World
Financial Center, 10th Floor, New York, New York 10080, Attention: Asset-Backed
Finance; (b) in the case of the Rating Agencies, (i) Standard & Poor's Ratings
Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New
York, New York 10041; and (ii) Moody's Investors Service, Inc., 99 Church
Street, 4th Floor, New York, New York 10007; (c) in the case of the Servicer,
Wilshire Credit Corporation, 14523 S.W. Milikan Way, Suite 200, Beaverton,
Oregon 97005; (d) in the case of the Trustee, Wells Fargo Bank, N.A., 9062 Old
Annapolis Road, Columbia, Maryland 21045, Attention: Client Services Manager -
Merrill Lynch Mortgage Investors Trust, Series 2004-SL1; (e) in the case of the
Transaction Oversight Manager, Clayton Portfolio Reconnaissance Services, Inc.,
2 Corporate Drive, Shelton, Connecticut 06484, Attention: James Aronoff, and in
the case of any of the foregoing persons, such other addresses as may hereafter
be furnished by any such persons to the other parties to this Agreement. Notices
to Certificateholders shall be deemed given when mailed, first class postage
prepaid, to their respective addresses appearing in the Certificate Register.

      SECTION 10.06. Severability of Provisions.

      If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

                                     -105-
<PAGE>

      SECTION 10.07. Assignment.

      Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 6.02, this Agreement may not be assigned by the
Servicer without the prior written consent of the Trustee and Depositor;
provided, however, the Servicer is hereby authorized to enter into an Advance
Facility under which (l) the Servicer sells, assigns or pledges to an Advancing
Person the Servicer's rights under this Agreement to be reimbursed for any
Advances or Servicing Advances and/or (2) an Advancing Person agrees to fund
some or all Advances or Servicing Advances required to be made by the Servicer
pursuant to this Agreement. No consent of the Trustee, Certificateholders or any
other party is required before the Servicer may enter into an Advance Facility.
Notwithstanding the existence of any Advance Facility under which an Advancing
Person agrees to fund Advances and/or Servicing Advances on the Servicer's
behalf, the Servicer shall remain obligated pursuant to this Agreement to make
Advances and Servicing Advances pursuant to and as required by this Agreement,
and shall not be relieved of such obligations by virtue of such Advance
Facility.

      Reimbursement amounts shall consist solely of amounts in respect of
Advances and/or Servicing Advances made with respect to the Mortgage Loans for
which the Servicer would be permitted to reimburse itself in accordance with
this Agreement, assuming the Servicer had made the related Advance(s) and/or
Servicing Advance(s).

      The Servicer shall maintain and provide to any successor Servicer a
detailed accounting on a loan by loan basis as to amounts advanced by, pledged
or assigned to, and reimbursed to any Advancing Person. The successor Servicer
shall be entitled to rely on any such information provided by the predecessor
Servicer, and the successor Servicer shall not be liable for any errors in such
information.

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

      The documentation establishing any Advance Facility shall require that
such reimbursement amounts distributed with respect to each Mortgage Loan be
allocated to outstanding unreimbursed Advances or Servicing Advances (as the
case may be) made with respect to that Mortgage Loan on a "first in, first out"
(FIFO) basis. Such documentation shall also require the Servicer to provide to
the related Advancing Person or its designee loan by loan information with
respect to each such reimbursement amount distributed to such Advancing Person
or Advance Facility trustee on each Distribution Date, to enable the Advancing
Person or Advance Facility trustee to make the FIFO allocation of each such
reimbursement amount with respect to each Mortgage Loan. The Servicer shall
remain entitled to be reimbursed by the Advancing Person or Advance Facility
trustee for all Advances and Servicing Advances funded by the Servicer to the
extent the related rights to be reimbursed therefor have not been sold, assigned
or pledged to an Advancing Person.

      Any amendment to this Section 10.07 or to any other provision of this
Agreement that may be necessary or appropriate to effect the terms of an Advance
Facility as described generally in this Section 10.07, including amendments to
add provisions relating to a successor Servicer, may be entered into by the
Trustee and the Servicer, without the consent of any Certificateholder
notwithstanding anything to the contrary in this Agreement, upon receipt by the
Trustee of an Opinion of Counsel that such amendment has no material adverse
effect on the Certificateholders or written confirmation from the Rating
Agencies that such amendment will not adversely affect the ratings on the
Certificates. Prior to entering into an Advance Facility, the applicable
Servicer shall notify the lender under such facility in writing that: (a) the
Advances financed by and/or pledged to the lender are obligations owed to the
Servicer on a non recourse

                                     -106-
<PAGE>

basis payable only from the cash flows and proceeds received under this
Agreement for reimbursement of Advances only to the extent provided herein, and
the Trustee and the Trust Fund are not otherwise obligated or liable to repay
any Advances financed by the lender; (b) the Servicer will be responsible for
remitting to the lender the applicable amounts collected by it as reimbursement
for Advances funded by the lender, subject to the restrictions and priorities
created in this Agreement; and (c) the Trustee shall not have any responsibility
to track or monitor the administration of the financing arrangement between the
Servicer and the lender.

      SECTION 10.08. Limitation on Rights of Certificateholders.

      The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's
legal representative or heirs to claim an accounting or to take any action or
commence any proceeding in any court for a petition or winding up of the Trust
Fund, or otherwise affect the rights, obligations and liabilities of the parties
hereto or any of them.

      No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything herein
set forth or contained in the terms of the Certificates be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability to any third
party by reason of any action taken by the parties to this Agreement pursuant to
any provision hereof.

      No Certificateholder shall have any right by virtue or by availing itself
of any provisions of this Agreement to institute any suit, action or proceeding
in equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of an Event
of Default and of the continuance thereof, as hereinbefore provided, the Holders
of Certificates evidencing not less than 25% of the Voting Rights evidenced by
the Certificates shall also have made written request to the Trustee to
institute such action, suit or proceeding in its own name as Trustee hereunder
and shall have offered to the Trustee such indemnity satisfactory to it as it
may require against the costs, expenses, and liabilities to be incurred therein
or thereby, and the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity shall have neglected or refused to institute any
such action, suit or proceeding; it being understood and intended, and being
expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of Certificates
shall have any right in any manner whatever by virtue or by availing itself or
themselves of any provisions of this Agreement to affect, disturb or prejudice
the rights of the Holders of any other of the Certificates, or to obtain or seek
to obtain priority over or preference to any other such Holder or to enforce any
right under this Agreement, except in the manner herein provided and for the
common benefit of all Certificateholders. For the protection and enforcement of
the provisions of this Section 10.08, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

      SECTION 10.09. Inspection and Audit Rights.

      The Servicer agrees that, on reasonable prior notice, it will permit any
representative of the Depositor or the Trustee during the Servicer's normal
business hours, to examine all the books of account, records, reports and other
papers of the Servicer relating to the Mortgage Loans, to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants selected by the Depositor or the Trustee and to discuss its
affairs, finances and accounts relating to the Mortgage Loans with its officers,
employees, agents, counsel and independent public accountants (and by this
provision the Servicer hereby authorizes such accountants to discuss with such
representative such affairs, finances and accounts), all at such reasonable
times and as often as may be reasonably requested. Any

                                     -107-
<PAGE>

out-of-pocket expense incident to the exercise by the Depositor or the Trustee
of any right under this Section 10.09 shall be borne by the party requesting
such inspection (except in the case of the Trustee in which case such expenses
shall be borne by the requesting Certificateholder(s)); all other such expenses
shall be borne by the Servicer.

      SECTION 10.10. Certificates Nonassessable and Fully Paid.

      It is the intention of the Depositor that Certificateholders shall not be
personally liable for obligations of the Trust Fund, that the interests in the
Trust Fund represented by the Certificates shall be nonassessable for any reason
whatsoever, and that the Certificates, upon due authentication thereof by the
Trustee pursuant to this Agreement, are and shall be deemed fully paid.

                                     -108-
<PAGE>

      IN WITNESS WHEREOF, the Depositor, the Servicer, and the Trustee have
caused their names to be signed hereto by their respective officers thereunto
duly authorized as of the day and year first above written.

                                      MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                            as Depositor
                                      By:
                                          ______________________________________
                                      Name: Matthew Whalen
                                      Title: President

                                      WELLS FARGO BANK, N.A.,
                                            as Trustee
                                      By:
                                          ______________________________________
                                      Name: Sandra Whalen
                                      Title: Vice President

                                      WILSHIRE CREDIT CORPORATION,
                                            as Servicer
                                      By:
                                          ______________________________________
                                      Name: Russell T. Campbell
                                      Title: Senior Vice President

<PAGE>

                                    EXHIBIT A

                              FORMS OF CERTIFICATES

                             [INTENTIONALLY OMITTED]

                                      A-1
<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

                                      B-1
<PAGE>

                                    EXHIBIT C

                                   [RESERVED]

                                       C-1
<PAGE>

                                    EXHIBIT D

                          FORM OF TRUSTEE CERTIFICATION

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wilshire Credit Corporation
14523 S.W. Milikan Way,
Suite 200
Beaverton, Oregon 97005

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045

Re:   Pooling and Servicing Agreement dated as of June 1, 2004 among Merrill
      Lynch Mortgage Investors, Inc., as depositor, Wells Fargo Bank, N.A., as
      trustee and Wilshire Credit Corporation, as servicer, relating to Merill
      Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed Certificates,
      Series 2004-SL1

Ladies and Gentlemen:

      In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee, hereby certifies that [,
except as set forth in Schedule A hereto,] as to each Mortgage Loan listed in
the Mortgage Loan Schedule attached hereto (other than any Mortgage Loan paid in
full or listed on the attachment hereto) it has reviewed the Mortgage File and
the Mortgage Loan Schedule and has determined that:

      (i)   All documents in the Mortgage File required to be delivered to the
Trustee pursuant to Section 2.01 of the Pooling and Servicing Agreement are in
its possession;

      (ii)  In connection with each Mortgage Loan or Assignment thereof as to
which documentary evidence of recording was not received on the Closing Date, it
has received evidence of such recording; and

      (iii) Such documents have been reviewed by it and appear regular on their
face and relate to such Mortgage Loan.

      The Trustee has made no independent examination of any documents contained
in each Mortgage File beyond confirming (i) that the Mortgage Loan number, the
name of the Mortgagor, the street address (excluding zip code), the mortgage
interest rate at origination, the gross margin (if applicable), the lifetime
rate cap (if applicable), the periodic rate cap (if applicable), the original
principal balance, the first payment due date and the original maturity date in
each Mortgage File conform to the respective

                                      D-1
<PAGE>

Mortgage Loan number and name listed on the Mortgage Loan Schedule and (ii) the
existence in each Mortgage File of each of the documents listed in subparagraphs
(i)(A) through (G), inclusive, of Section 2.01 in the Agreement. The Trustee
makes no representations or warranties as to the validity, legality,
recordability, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage Loan or the collectibility, insurability,
effectiveness or suitability of any such Mortgage Loan.

      Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.

                                      WELLS FARGO BANK, N.A., as Trustee

                                      By: ______________________________________
                                      Name: ____________________________________
                                      Title: ___________________________________

                                      D-2
<PAGE>

                                   EXHIBIT E-1

                           FORM OF TRANSFEREE'S LETTER
                     MERRILL LYNCH MORTGAGE INVESTORS TRUST,
            MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2004-SL1

                                     [DATE]

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045
Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors Trust,
Series 2004-SL1

Ladies and Gentlemen:

      We propose to purchase Merrill Lynch Mortgage Investors Trust, Mortgage
Loan Asset-Backed Certificates, Series 2004-SL1, Class R, described in the
Prospectus Supplement, dated July 2, 2004, and Prospectus, dated June 18, 2004.

      1.    We certify that (a) we are not a disqualified organization and (b)
we are not purchasing such Class R Certificate on behalf of a disqualified
organization; for this purpose the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable
for an excise tax imposed upon transfers to disqualified organizations.

      2.    We certify that (a) we have historically paid our debts as they
became due, (b) we intend, and believe that we will be able, to continue to pay
our debts as they become due in the future, (c) we understand that, as
beneficial owner of the Class R Certificate, we may incur tax liabilities in
excess of any cash flows generated by the Class R Certificate, and (d) we intend
to pay any taxes associated with holding the Class R Certificate as they become
due and (e) we will not cause income from the Class R Certificate to be
attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of ours or another U.S. taxpayer.

      3.    We acknowledge that we will be the beneficial owner of the Class R
Certificate and:(1)

            ______ The Class R Certificate will be registered in our name.

----------
(1) Check appropriate box and if necessary fill in the name of the Transferee's
nominee.

<PAGE>

            ______ The Class R Certificate will be held in the name of our
                   nominee, _________________, which is not a disqualified
                   organization.

      4.    We certify that we are not an employee benefit plan subject to Title
I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
or a plan within the meaning of Section 4975 of the Code or a plan subject to
federal, state or local law substantively similar to the foregoing provisions of
ERISA or the Code (each, a "Plan"), and are not directly or indirectly acquiring
the Class R Certificate on behalf of or with any assets of a Plan.

      5.    We certify that (i) we are a U.S. person or (ii) we will hold the
Class R Certificate in connection with the conduct of a trade or business within
the United States and have furnished the transferor and the Trustee with a duly
completed and effective Internal Revenue Service Form W-8ECI or successor form
at the time and in the manner required by the Code; for this purpose the term
"U.S. person" means a citizen or resident of the United States, a corporation,
or partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any State thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to United States federal income tax regardless
of the source of its income, 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 U.S. persons have the authority to control all substantial
decisions of the trust (or, to the extent provided in applicable Treasury
regulations, certain trusts in existence on August 20, 1996 which are eligible
to elect to be treated as U.S. Persons. We agree that any breach by us of this
certification shall render the transfer of any interest in the Class R
Certificate to us absolutely null and void and shall cause no rights in the
Class R Certificate to vest in us.

      6.    We agree that in the event that at some future time we wish to
transfer any interest in the Class R Certificate, we will transfer such interest
in the Class R Certificate only (a) to a transferee that (i) is not a
disqualified organization and is not purchasing such interest in the Class R
Certificate on behalf of a disqualified organization, (ii) is a U.S. person or
will hold the Class R Certificate in connection with the conduct of a trade or
business within the United States and will furnish us and the Trustee with a
duly completed and effective Internal Revenue Service Form W-8ECI or successor
form at the time and in the manner required by the Code and (iii) has delivered
to the Trustee a letter in the form of this letter (including the affidavit
appended hereto) and, we will provide the Trustee a written statement
substantially in the form of Exhibit E-2 to the Agreement.

                                      E-1-2
<PAGE>

      7.    We hereby designate _______________________ as our fiduciary to act
as the tax matters person for each of the REMICs provided for in the Agreement.

                                          Very truly yours,

                                          [PURCHASER]

                                          By: __________________________________
                                               Name:
                                               Title:

Accepted as of __________ __, 200__

MERRILL LYNCH MORTGAGE INVESTORS, INC.

By: _______________________________
     Name:
     Title:

                                      E-1-3
<PAGE>

                                   APPENDIX A

                                      Affidavit pursuant to (i) Section 860E
                                      (e)(4) of the Internal Revenue Code of
                                      1986, as amended, and (ii) certain
                                      provisions of the Pooling and Servicing
                                      Agreement

Under penalties of perjury, the undersigned declares that the following is true:

            1.    He or she is an officer of _________________________ (the
                  "Transferee"),

            2.    the Transferee's Employer Identification number is __________,

            3.    the Transferee is not a "disqualified organization" (as
                  defined below), has no plan or intention of becoming a
                  disqualified organization, and is not acquiring any of its
                  interest in the Merrill Lynch Mortgage Investors Trust,
                  Mortgage Loan Asset-Backed Certificates, Series 2004-SL1,
                  Class R on behalf of a disqualified organization or any other
                  entity,

            4.    unless Merrill Lynch Mortgage Investors, Inc.("MLMI") has
                  consented to the transfer to the Transferee by executing the
                  form of Consent affixed as Appendix B to the Transferee's
                  Letter to which this Certificate is affixed as Appendix A, the
                  Transferee is a "U.S. person" (as defined below),

            5.    that no purpose of the transfer is to avoid or impede the
                  assessment or collection of tax,

            6.    the Transferee has historically paid its debts as they became
                  due,

            7.    the Transferee intends, and believes that it will be able, to
                  continue to pay its debts as they become due in the future,

            8.    the Transferee understands that, as beneficial owner of the
                  Class R Certificate, it may incur tax liabilities in excess of
                  any cash flows generated by the Class R Certificate,

            9.    the Transferee intends to pay any taxes associated with
                  holding the Class R Certificate as they become due,

            10.   the Transferee consents to any amendment of the Pooling and
                  Servicing Agreement that shall be deemed necessary by MLMI
                  (upon advice of counsel) to constitute a reasonable
                  arrangement to ensure that the Class R Certificate will not be
                  owned directly or indirectly by a disqualified organization,
                  and

            11.   IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE
                  [the transfer is not a direct or indirect transfer of the
                  Class R Certificate to a foreign permanent establishment or
                  fixed base (within the meaning of an applicable income tax
                  treaty) of the Transferee, and as to each of the residual
                  interests represented by the Class R Certificate, the present
                  value of the anticipated tax liabilities associated with
                  holding such residual interest does not exceed the sum of:

                                     E-1-4
<PAGE>

            12.   the present value of any consideration given to the Transferee
                  to acquire such residual interest;

            13.   the present value of the expected future distributions on such
                  residual interest; and

            14.   the present value of the anticipated tax savings associated
                  with holding such residual interest as the related REMIC
                  generates losses.

      For purposes of this declaration, (i) the Transferee is assumed to pay tax
      at a rate equal to the highest rate of tax specified in Section 11(b)(1)
      of the Code, but the tax rate specified 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 Transferee has been subject to the alternative minimum tax
      under Section 55 of the Code in the preceding two years and will compute
      its taxable income in the current taxable year using the alternative
      minimum tax rate, and (ii) present values are computed using a discount
      rate equal to the Federal short-term rate prescribed by Section 1274(d) of
      the Code for the month of the transfer and the compounding period used by
      the Transferee;]

[(11) (A)   at the time of the transfer, and at the close of each of the
            Transferee's two fiscal years preceding the Transferee's fiscal year
            of transfer, the Transferee's gross assets for financial reporting
            purposes exceed $100 million and its net assets for financial
            reporting purposes exceed $10 million; and

      (B)   the Transferee is an eligible corporation as defined in Treasury
            regulations Section 1.860E-1(c)(6)(i) and has agreed in writing that
            any subsequent transfer of the Class R Certificate will be to
            another eligible corporation in a transaction that satisfies
            Treasury regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
            1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be
            a direct or indirect transfer to a foreign permanent establishment
            (within the meaning of an applicable income tax treaty) of a
            domestic corporation.

For purposes of this declaration, the gross and net assets of the Transferee do
not include any obligation of any related person as defined in Treasury
regulation Section 1.860E-1(c)(6)(ii) or any other asset if a principal purpose
for holding or acquiring the other asset is to permit the Transferee to make
this declaration or to satisfy the requirements of Treasury regulation Section
1.860E-1(c)(5)(i).]

(12)  The Transferee will not cause income from the Class R Certificate to be
attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of the Transferee or another U.S.
taxpayer.

                                     E-1-5
<PAGE>

For purpose of this affidavit, the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code and the term
"U.S. Person" means a citizen or resident of the United States, a corporation or
partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any state thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to Unites 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 such trust, and one or
more such U.S. Persons have the authority to control all substantial decisions
of such trust, (or, to the extent provided in applicable Treasury regulations,
certain trusts in existence on August 20, 1996 which are eligible to elect to be
treated as U.S. Persons).

______________________________________

By: __________________________________
    __________________________________

      Address of Investor for receipt of distribution:

      Address of Investor for receipt of tax information:

      (Corporate Seal)

      Attest:

      ________________________________

      ________________________________, Secretary

                                     E-1-6
<PAGE>

      Personally appeared before me the above-named ______________, known or
      proved to me to be the same person who executed the foregoing instrument
      and to be the _______ of the Investor, and acknowledged to me that he
      executed the same as his free act and deed and the free act and deed of
      the Investor.

      Subscribed and sworn before me this
      day of                     , 200_ .

      ________________________________
      Notary Public

      County of ______________________
      State of _______________________
      My commission expires the ________ day of ______________

                                      By: ______________________________________
                                            Name: ______________________________
                                            Title: _____________________________

      Dated: _____________

                                     E-1-7
<PAGE>

                                  EXHIBIT E - 2

                         FORM OF TRANSFEROR'S AFFIDAVIT
                     MERRILL LYNCH MORTGAGE INVESTORS TRUST,
            MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2004-SL1

                                     [DATE]

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045
Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors Trust,
Series 2004-SL1

Re:   Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
      Certificates, Series 2004-SL1

      _______________________ (the "Transferor") has reviewed the attached
affidavit of _____________________________ (the "Transferee"), and has no actual
knowledge that such affidavit is not true, and has no reason to believe that the
Transferee has the intention to impede the assessment or collection of any
federal, state or local taxes legally required to be paid with respect to the
Class R Certificate referred to in the attached affidavit. In addition, the
Transferor has conducted a reasonable investigation at the time of the transfer
and found that the Transferee had historically paid its debts as they came due
and found no significant evidence to indicate that the Transferee will not
continue to pay its debts as they become due.

                                            Very truly yours,

                                            ____________________________________
                                            Name:
                                            Title:

                                     E-2-1
<PAGE>

                                    EXHIBIT F

                         FORM OF TRANSFEROR CERTIFICATE

                                     [DATE]

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045
Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors Trust,
Series 2004-SL1

RE:   Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
      Certificates, Series 2004-SL1

Ladies and Gentlemen:

      In connection with our disposition of the Class [____] Certificate, we
certify that (a) we understand that the Certificates have not been registered
under the Securities Act of 1933, as amended (the "Act"), and are being disposed
by us in a transaction that is exempt from the registration requirements of the
Act and (b) we have not offered or sold any Certificates to, or solicited offers
to buy any Certificates from, any person, or otherwise approached or negotiated
with any person with respect thereto, in a manner that would be deemed, or taken
any other action that would result in, a violation of Section 5 of the Act. All
capitalized terms used herein but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement dated as of June 1,
2004, among Merrill Lynch Mortgage Investors, Inc., as depositor, Wells Fargo
Bank, N.A., as trustee and Wilshire Credit Corporation, as servicer.

                                            Very truly yours,

                                            ____________________________________
                                            Name of Transferor

                                            By: ________________________________
                                            Name:
                                            Title

                                       F-1
<PAGE>

                                    EXHIBIT G

                            FORM OF INVESTMENT LETTER
                              (ACCREDITED INVESTOR)

                                     [DATE]

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045
Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors Trust,
Series 2004-SL1

Re:   Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
      Certificates, Series 2004-SL1

Ladies and Gentlemen:

      ______________ (the "Purchaser") intends to purchase from ________________
(the "Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Merrill Lynch Mortgage Investors Trust, Mortgage Loan
Asset-Backed Certificates, Series 2004-SL1, Class [____] (the "Certificates"),
issued pursuant to a Pooling and Servicing Agreement, dated as of June 1, 2004
(the "Pooling and Servicing Agreement"), among Merrill Lynch Mortgage Investors,
Inc., as depositor (the "Depositor"), Wells Fargo Bank, N.A. as trustee (the
"Trustee"), Wilshire Credit Corporation, as servicer (the "Servicer"). [THE
PURCHASER INTENDS TO REGISTER THE TRANSFERRED CERTIFICATE IN THE NAME OF
____________________, AS NOMINEE FOR _________________.] All terms used and not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

      For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

      1.    The Purchaser understands that (a) the Certificates have not been
registered or qualified under the Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state, (b) neither the
Depositor nor the Trustee is required, and neither of them intends, to so
register or qualify the Certificates, (c) the Certificates cannot be resold
unless (i) they are registered and qualified under the Securities Act and the
applicable state securities laws or (ii) an exemption from registration and
qualification is available and (d) the Pooling and Servicing Agreement contains
restrictions regarding the transfer of the Certificates.

      2.    The Certificates will bear a legend to the following effect:

      THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED
      (THE "1940 ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT,
      DIRECTLY OR INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR
      SALE, UNLESS SUCH TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE ACT,
      THE 1940 ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER
      ALSO COMPLIES WITH THE OTHER PROVISIONS OF SECTION 5.02 OF THE POOLING AND
      SERVICING AGREEMENT. NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS
      THE TRUSTEE SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE
      SERVICER (A)

                                       G-1
<PAGE>

      AN INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B)
      REPRESENTATIONS FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE
      CERTIFICATES.

      3.    The Class B-3, Class C and Class P Certificates will bear a legend
      to the following effect:

      NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE HAS
      RECEIVED (A) A REPRESENTATION THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
      BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY
      ACT OF 1974, AS AMENDED ("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE
      INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR A PLAN SUBJECT
      TO STATE, LOCAL OR OTHER FEDERAL LAW SUBSTANTIVELY SIMILAR TO THE
      FOREGOING PROVISIONS OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT
      DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE BY, ON BEHALF OF, OR
      WITH ANY ASSETS OF ANY SUCH PLAN, (B) IF THE CERTIFICATE HAS BEEN THE
      SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT SUCH
      TRANSFEREE IS AN INSURANCE COMPANY THAT IS ACQUIRING THE CERTIFICATE WITH
      ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" AS DEFINED IN SECTION
      V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 95-60 AND THE
      ACQUISITION AND HOLDING OF THE CERTIFICATE ARE COVERED AND EXEMPT UNDER
      SECTIONS I AND III OF PTCE 95-60, OR (C) SOLELY IN THE CASE OF A
      DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE,
      AND UPON WHICH THE TRUSTEE SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT
      THE ACQUISITION AND HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE
      TRANSFEREE WILL NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED
      TRANSACTION UNDER ERISA OR THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL
      NOT SUBJECT THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO ANY OBLIGATION
      IN ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE TRUST AGREEMENT,
      WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE
      SERVICER OR THE DEPOSITOR.

      4.    The Class R Certificate will bear a legend to the following effect:

      NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
      TRANSFEREE PROVIDES THE TRUSTEE WITH A REPRESENTATION THAT SUCH TRANSFEREE
      IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE
      RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR A PLAN
      SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO STATE, LOCAL OR
      OTHER FEDERAL LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF
      ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY
      ACQUIRING THIS CERTIFICATE BY, ON BEHALF OF, OR WITH ANY ASSETS OF ANY
      SUCH PLAN.

      5.    The Purchaser is acquiring the Transferred Certificates for its own
account [FOR INVESTMENT ONLY]**/ and not with a view to or for sale or other
transfer in connection with any distribution of the Transferred Certificates in
any manner that would violate the Securities Act or any applicable state
securities laws, subject, nevertheless, to the understanding that disposition of
the Purchaser's property shall at all times be and remain within its control.

----------
**/   Not required of a broker/dealer purchaser.

                                      G-2
<PAGE>

      6.    The Purchaser (a) is a substantial, sophisticated institutional
investor having such knowledge and experience in financial and business matters,
and in particular in such matters related to securities similar to the
Certificates, such that it is capable of evaluating the merits and risks of
investment in the Certificates, (b) is able to bear the economic risks of such
an investment and (c) is an "accredited investor" within the meaning of Rule
501(a) promulgated pursuant to the Securities Act.

      7.    The Purchaser will not nor has it authorized nor will it authorize
any person to (a) offer, pledge, sell, dispose of or otherwise transfer any
Certificate, any interest in any Certificate or any other similar security to
any person in any manner, (b) solicit any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c)
otherwise approach or negotiate with respect to any Certificate, any interest in
any Certificate or any other similar security with any person in any manner, (d)
make any general solicitation by means of general advertising or in any other
manner, or (e) take any other action, that would constitute a distribution of
any Certificate under the Securities Act or the Investment Company Act of 1940,
as amended (the "1940 Act"), that would render the disposition of any
Certificate a violation of Section 5 of the Securities Act or any state
securities law, or that would require registration or qualification pursuant
thereto. Neither the Purchaser nor anyone acting on its behalf has offered the
Certificates for sale or made any general solicitation by means of general
advertising or in any other manner with respect to the Certificates. The
Purchaser will not sell or otherwise transfer any of the Certificates, except in
compliance with the provisions of the Pooling and Servicing Agreement.

      8.    The Purchaser of a Class B-3, Class C or Class P Certificate (A) is
not an employee benefit plan subject to Title I of ERISA, a plan subject to
Section 4975 of the Code, a plan subject to any state, local or other federal
law substantively similar to the foregoing provisions of ERISA or the Code
("Similar Law") and is not directly or indirectly acquiring such Certificates
by, on behalf of, or with any assets of any such plan, or (B) if the Certificate
has been the subject of an ERISA-Qualifying Underwriting, is an insurance
company that is acquiring the Certificate with funds contained in an "insurance
company general account," as defined in Section V(e) of Prohibited Transaction
Class Exemption ("PTCE") 95-60, and the acquisition and holding of the
Certificate are covered and exempt under Sections I and III of PTCE 95-60, or
(C) solely in the event the Certificate is a Definitive Certificate, herewith
delivers an Opinion of Counsel satisfactory to the Trustee, and upon which the
Trustee shall be entitled to rely, to the effect that the acquisition and
holding of the Certificate will not constitute or result in a nonexempt
prohibited transaction under ERISA or the Code, or a violation of Similar Law,
and will not subject the Trustee, the Servicer or the Depositor to any
obligation in addition to those expressly undertaken in the Pooling and
Servicing Agreement, which Opinion of Counsel shall not be an expense of the
Trustee, the Servicer or the Depositor.

      9.    The Purchaser of a Class R Certificate is not an employee benefit
plan subject to Title I of ERISA, a plan subject to Section 4975 of the Code, a
plan subject to any state, local or other federal law substantively similar to
the foregoing provisions of ERISA and the Code ("Similar Law"), or a Person
directly or indirectly acquiring such Certificate by, on behalf of, or with any
assets of any such plan.

      10.   Prior to the sale or transfer by the Purchaser of any of the
Certificates, the Purchaser will obtain from any subsequent purchaser
substantially the same certifications, representations, warranties and covenants
contained in the foregoing paragraphs and in this letter or a letter
substantially in the form of Exhibit H to the Pooling and Servicing Agreement.

                                       G-3
<PAGE>

      11.   The Purchaser agrees to indemnify the Trustee, the Servicer and the
Depositor against any liability that may result from any misrepresentation made
herein.

                                            Very truly yours,

                                            [PURCHASER]

                                            By: ________________________________
                                                Name:
                                                Title:

                                       G-4
<PAGE>

                                    EXHIBIT H

                       FORM OF RULE 144A INVESTMENT LETTER
                         (QUALIFIED INSTITUTIONAL BUYER)

                                     [DATE]

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045
Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors Trust,
Series 2004-SL1

Re:   Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
      Certificates, Series 2004-SL1

Ladies and Gentlemen:

      ______________ (the "Purchaser") intends to purchase from ________________
(the "Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Merrill Lynch Mortgage Investors Trust, Mortgage Loan
Asset-Backed Certificates, Series 2004-SL1, Class [____] (the "Certificates"),
issued pursuant to a Pooling and Servicing Agreement, dated as of June 1, 2004
(the "Pooling and Servicing Agreement"), among Merrill Lynch Mortgage Investors,
Inc., as depositor (the "Depositor"), Wells Fargo Bank, N.A. as trustee (the
"Trustee"), Wilshire Credit Corporation, as servicer (the "Servicer"). [THE
PURCHASER INTENDS TO REGISTER THE TRANSFERRED CERTIFICATE IN THE NAME OF
____________________, AS NOMINEE FOR _________________.] All terms used and not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

      For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

      In connection with our acquisition of the above Transferred Certificates
we certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Transferred Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Transferred Certificates, (d)(A) we are not an employee
benefit plan subject to Title I of the Employee Retirement Income Security Act
of 1974, as amended ("ERISA"), a plan subject to Section 4975 of the Internal
Revenue Code of 1986, as amended (the "Code"), a plan subject to any state,
local or other federal law substantively similar to the foregoing provisions of
ERISA or the Code ("Similar Law"), or Persons directly or indirectly acting on
behalf of or using any assets of any such plan, or (B) solely with respect to
Class B-3, Class C and Class P Certificates, if the Certificate has been the
subject of an ERISA-Qualifying Underwriting, we are an insurance company that is
acquiring the Certificate with funds contained in an "insurance company general
account," as defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60, and the acquisition and holding of the Certificate are covered
and exempt under Sections I and III of PTCE 95-60,

                                       H-1
<PAGE>

or (C) solely in the event the Certificate is a Class B-3, Class C or Class P
Certificate and also a Definitive Certificate, we will herewith deliver an
Opinion of Counsel satisfactory to the Trustee, and upon which the Trustee shall
be entitled to rely, to the effect that the acquisition and holding of the
Certificate will not constitute or result in a nonexempt prohibited transaction
under ERISA or the Code, or a violation of Similar Law, and will not subject the
Trustee, the Servicer or the Depositor to any obligation in addition to those
expressly undertaken in the Pooling and Servicing Agreement, which Opinion of
Counsel shall not be an expense of the Trustee, the Servicer or the Depositor,
(e) we have not, nor has anyone acting on our behalf offered, transferred,
pledged, sold or otherwise disposed of the Certificates, any interest in the
Certificates or any other similar security to, or solicited any offer to buy or
accept a transfer, pledge or other disposition of the Certificates, any interest
in the Certificates or any other similar security from, or otherwise approached
or negotiated with respect to the Certificates, any interest in the Certificates
or any other similar security with, any person in any manner, or made any
general solicitation by means of general advertising or in any other manner, or
taken any other action, that would constitute a distribution of the Certificates
under the Securities Act or that would render the disposition of the
Certificates a violation of Section 5 of the Securities Act or require
registration pursuant thereto, nor will act, nor has authorized or will
authorize any person to act, in such manner with respect to the Certificates,
(f) we are a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act and have completed one of the forms of
certification to that effect attached hereto as Annex 1 or Annex 2. We are aware
that the sale of the Transferred Certificates to us is being made in reliance on
Rule 144A. We are acquiring the Transferred Certificates for our own account or
for resale pursuant to Rule 144A and further understand that such Certificates
may be resold, pledged or transferred only (i) to a person reasonably believed
by us, based upon certifications of such purchaser or information we have in our
possession, to be a qualified institutional buyer that purchases for its own
account or for the account of a qualified institutional buyer to whom notice is
given that the resale, pledge or transfer is being made in reliance on Rule
144A, or (ii) pursuant to another exemption from registration under the
Securities Act.

      We agree to indemnify the Trustee, the Servicer and the Depositor against
any liability that may result from any misrepresentation made herein.

                                            Very truly yours,

                                            [PURCHASER]

                                            By: ________________________________
                                                Name:
                                                Title:

                                       H-2
<PAGE>

                                                                         ANNEX 1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [FOR TRANSFEREES OTHER THAN REGISTERED INVESTMENT COMPANIES]

      The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

      1.    As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

      2.    In connection with the purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis $____________* in securities (except
for the excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule 144A)
and (ii) the Buyer satisfies the criteria in the category marked below.

            ____  Corporation, etc. The Buyer is a corporation (other than a
                  bank, savings and loan association or similar institution),
                  Massachusetts or similar business trust, partnership, or
                  charitable organization described in Section 501(c)(3) of the
                  Internal Revenue Code of 1986, as amended.

            ____  Bank. The Buyer (a) is a national bank or banking institution
                  organized under the laws of any State, territory or the
                  District of Columbia, the business of which is substantially
                  confined to banking and is supervised by Federal, State or
                  territorial banking commission or similar official or is a
                  foreign bank or equivalent institution, and (b) has an audited
                  net worth of at least $25,000,000 as demonstrated in its
                  latest annual financial statements, a copy of which is
                  attached hereto.

            ____  Savings and Loan. The Buyer (a) is a savings and loan
                  association, building and loan association, cooperative bank,
                  homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over such institution or is a foreign savings and
                  loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

            ____  Broker-dealer. The Buyer is a dealer registered pursuant to
                  Section 15 of the Securities Exchange Act of 1934, as amended.

            ____  Insurance Company. The Buyer is an insurance company whose
                  primary and predominant business activity is the writing of
                  insurance or the reinsuring of risks underwritten by insurance
                  companies and which is subject to supervision by the

----------
* Buyer must own and/or invest on a discretionary basis at least $100,000,000 in
securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

                                       H-3
<PAGE>

                  insurance commissioner or a similar official or agency of the
                  State, territory or the District of Columbia.

            ____  State or Local Plan. The Buyer is a plan established and
                  maintained by a State, its political subdivisions, or any
                  agency or instrumentality of the State or its political
                  subdivisions, for the benefit of its employees.

            ____  ERISA Plan. The Buyer is an employee benefit plan subject to
                  Title I of the Employee Retirement Income Security Act of
                  1974, as amended.

            ____  Investment Advisor. The Buyer is an investment advisor
                  registered under the Investment Advisors Act of 1940, as
                  amended.

            ____  Small Business Investment Company. Buyer is a small business
                  investment company licensed by the U.S. Small Business
                  Administration under Section 301(c) or (d) of the Small
                  Business Investment Act of 1958, as amended.

            ____  Business Development Company. Buyer is a business development
                  company as defined in Section 202(a)(22) of the Investment
                  Advisors Act of 1940, as amended.

      3.    The term "securities" as used for purposes of the calculation of the
dollar amount in paragraph 2 excludes: (i) securities of issuers that are
affiliated with the Buyer, (ii) securities that are part of an unsold allotment
to or subscription by the Buyer, if the Buyer is a dealer, (iii) securities
issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank
deposit notes and certificates of deposit, (v) loan participations, (vi)
repurchase agreements, (vii) securities owned but subject to a repurchase
agreement and (viii) currency, interest rate and commodity swaps.

      4.    For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

      5.    The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

                                       H-4
<PAGE>

      6.    Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                            By:_________________________________
                                                Name:
                                                Title:

                                            Date:_______________________________

                                      H-5
<PAGE>

                                                                         ANNEX 2

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [FOR TRANSFEREES THAT ARE REGISTERED INVESTMENT COMPANIES]

      The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

      1.    As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A"), because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
Adviser.

      2.    In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

            ____  The Buyer owned $___________ in securities (other than the
                  excluded securities referred to below) as of the end of the
                  Buyer's most recent fiscal year (such amount being calculated
                  in accordance with Rule 144A).

            ____  The Buyer is part of a Family of Investment Companies which
                  owned in the aggregate $__________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

      3.    The term "Family of Investment Companies" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

      4.    The term "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer or are part of the Buyer's Family
of Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

      5.    The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.

                                      H-6
<PAGE>

      6.    Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                            By:_________________________________
                                                 Name:
                                                 Title:

                                            IF AN ADVISER:

                                            ____________________________________
                                            Print Name of Buyer

                                            Date:_______________________________

                                      H-7
<PAGE>

                                    EXHIBIT I

                        REQUEST FOR RELEASE OF DOCUMENTS

                                     [DATE]

To:   Wells Fargo Bank, N.A.
      1015 10th Avenue SE
      Minneapolis, MN 55414

Re:   Pooling and Servicing Agreement dated as of June 1, 2004 among Merrill
      Lynch Mortgage Investors, Inc., as depositor, Wells Fargo Bank, N.A., as
      trustee and Wilshire Credit Corporation, as servicer, relating to Merrill
      Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed Certificates,
      Series 2004-SL1

      In connection with the administration of the Mortgage Loans held by you,
as Trustee, pursuant to the above-captioned Pooling and Servicing Agreement, we
request the release, and hereby acknowledge receipt, of the 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

_______ 6.   Other Reason:     __________________________

Address to which the Trustee should deliver the Mortgage File:

                                            By:_________________________________
                                                     (authorized signer)

                                            Address:____________________________

                                            Date:_______________________________

                                      I-1
<PAGE>

If box 1 or 2 above is checked, and if all or part of the Mortgage File was
previously released to us, please release to us our previous receipt on file
with you, as well as any additional documents in your possession relating to the
above specified Mortgage Loan.

If box 3, 4, 5 or 6 above is checked, upon our return of all of the above
documents to you as Trustee, please acknowledge your receipt by signing in the
space indicated below, and returning this form.

Please acknowledge the execution of the above request by your signature and date
below:

Wells Fargo Bank, N.A.,
as Trustee

By:___________________________________      ____________________________________
   Signature                                Date

Documents returned to Trustee:

By:___________________________________      ____________________________________
   Signature                                Date

                                      I-2
<PAGE>

                                    EXHIBIT J

               LIST OF TRANSFER AGREEMENTS AND BRING DOWN LETTERS

1.    Master Mortgage Loan Purchase and Interim Servicing Agreement, dated as of
March 1, 2004, as amended, between Merrill Lynch Mortgage Capital Inc., as
Purchaser and Accredited Home Lenders, Inc., as Seller, as supplemented by that
certain Bring Down Letter, dated as of July 7, 2004, from Accredited Home
Lenders, Inc. to Merrill Lynch Mortgage Capital Inc.

2.    Master Mortgage Loan Purchase and Interim Servicing Agreement, dated as of
January 1, 2004, between Merrill Lynch Mortgage Capital Inc., as Purchaser and
Decision One Mortgage Company, LLC, as Seller, as supplemented by that certain
Bring Down Letter, dated as of July 7, 2004, from Decision One Mortgage Company,
LLC to Merrill Lynch Mortgage Capital Inc.

3.    Master Mortgage Loan Purchase and Interim Servicing Agreement, dated as of
March 1, 2004, as amended, between Merrill Lynch Mortgage Capital Inc., as
Purchaser and Fieldstone Mortgage Company, as Seller, as supplemented by that
certain Bring Down Letter, dated as of July 7, 2004, from Fieldstone Mortgage
Company to Merrill Lynch Mortgage Capital Inc.

4.    Master Mortgage Loan Purchase and Interim Servicing Agreement, dated as of
March 1, 2004, as amended, between Merrill Lynch Mortgage Capital Inc., as
Purchaser and First NLC Financial Services, LLC, as Seller, as supplemented by
that certain Bring Down Letter, dated as of July 7, 2004, from First NLC
Financial Services, LLC to Merrill Lynch Mortgage Capital Inc.

5.    Master Mortgage Loan Purchase and Interim Servicing Agreement, dated as of
December 1, 2003, between Merrill Lynch Mortgage Capital Inc., as Purchaser and
Fremont Investment & Loan, as Seller, as supplemented by that certain Bring Down
Letter, dated as of July 7, 2004, from Fremont Investment & Loan to Merrill
Lynch Mortgage Capital Inc.

6.    Master Mortgage Loan Purchase and Interim Servicing Agreement, dated as of
January 1, 2004, as amended, between Merrill Lynch Mortgage Capital Inc., as
Purchaser and Home Loan Corporation as Seller, as supplemented by that certain
Bring Down Letter, dated as of July 7, 2004, Home Loan Corporation to Merrill
Lynch Mortgage Capital Inc.

7.    Master Mortgage Loan Purchase and Interim Servicing Agreement, dated as of
January 1, 2004, as amended, between Merrill Lynch Mortgage Capital Inc., as
Purchaser and Mortgage Investment Lending Associates, as Seller, as supplemented
by that certain Bring Down Letter, dated as of July 7, 2004, from Mortgage
Investment Lending Associates to Merrill Lynch Mortgage Capital Inc.

                                      J-1
<PAGE>

                                    EXHIBIT K

                        OFFICER'S CERTIFICATE OF TRUSTEE

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Re:   Pooling and Servicing Agreement dated as of June 1, 2004 among Merrill
      Lynch Mortgage Investors, Inc., as depositor, Wells Fargo Bank, N.A., as
      trustee and Wilshire Credit Corporation, as servicer (the "Agreement),
      relating to, Merrill Lynch Mortgage Investors Trust, Mortgage Loan
      Asset-Backed Certificates, Series 2004-SL1

      I, [identify the certifying individual], a [title] of the Trustee hereby
certify 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 Monthly Statements delivered pursuant to the Agreement
      since the last Officer's Certificate executed pursuant to Section 3.21 of
      the Agreement [or in the case of the first certification, since the
      Cut-off Date] (the "Trustee Information").

2.    Based on my knowledge, the information in the Monthly Statement, taken as
      a whole, does not contain any untrue statement of a material fact or omit
      to state a material fact necessary to make the statements made, in light
      of the circumstances under which such statements were made, not misleading
      as of the date hereof;

3.    Based on my knowledge, the Monthly Statements required to be prepared by
      the Trustee under the Agreement has been prepared and provided in
      accordance with the Agreement; and

4.    I am responsible for reviewing the activities performed by the Trustee
      under the Agreement and the Trustee has, as of the date hereof fulfilled
      its obligations under the Agreement and there are no significant
      deficiencies relating to the Trustee's compliance with the Agreement.

Date:

                                            Wells Fargo Bank, N.A.,
                                            as Trustee
                                            By: ________________________________
                                            Name: ______________________________
                                            Title:  ____________________________

                                      K-1
<PAGE>

                                    EXHIBIT L

                        OFFICER'S CERTIFICATE OF SERVICER

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, Maryland 21045
Attention: Corporate Trust Services - Merrill Lynch Mortgage Investors Trust,
Series 2004-SL1

Re:   Pooling and Servicing Agreement dated as of June 1, 2004 among Merrill
      Lynch Mortgage Investors, Inc., as depositor, Wells Fargo Bank, N.A., as
      trustee and Wilshire Credit Corporation, as servicer (the "Agreement),
      relating to, Merrill Lynch Mortgage Investors Trust, Mortgage Loan
      Asset-Backed Certificates, Series 2004-SL1

      I, [identify the certifying individual], an authorized representative of
the Servicer hereby certify to the Trustee and the Depositor, and each of their
respective officers, directors and affiliates, and with the knowledge and intent
that they will rely upon this certification, that:

1.    I have reviewed the information required to be delivered to the Trustee
      pursuant to the Agreement (the "Servicing Information").

2.    Based on my knowledge, the information in the Annual Statement of
      Compliance, and all servicing reports, officer's certificates and other
      information relating to the servicing of the Mortgage Loans submitted to
      the Trustee by the 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 the Annual Statement of Compliance;

3.    Based on my knowledge, the Servicing Information required to be provided
      to the Trustee by the Servicer under the Agreement has been provided to
      the Trustee; and

<PAGE>

4.    I am responsible for reviewing the activities performed by the Servicer
      under the Agreement and based upon the review required hereunder, and
      except as disclosed in the Annual Statement of Compliance, the Annual
      Independent Certified Public Accountant's Servicing Report and all
      servicing reports, officer's certificates and other information relating
      to the servicing of the Mortgage Loans submitted to the Trustee by the
      Servicer, the Servicer has, as of the last day of the period covered by
      the Annual Statement of Compliance fulfilled its obligations under this
      Agreement.

Date:

                                        Wilshire Credit Corporation, as Servicer
                                        By: ________________________________
                                        Name: ______________________________
                                        Title: _____________________________<PAGE>

                                                                     EXHIBIT 4.1

                         POOLING AND SERVICING AGREEMENT

                                      among

                       ORIGEN RESIDENTIAL SECURITIES, INC.
                                  as Depositor

                            ORIGEN FINANCIAL L.L.C.,
                                  as Originator

                             ORIGEN SERVICING, INC.,
                             as Seller and Servicer

                         [______________________________]
                               as Backup Servicer

                                       and
                         [______________________________]

                                   as Trustee

      ORIGEN RESIDENTIAL PASS-THROUGH CERTIFICATES], SERIES 200[__] - [__]

                         Dated as of [_________________]

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                           Page
                                                                                                           ----
                                               ARTICLE I
                                              DEFINITIONS
<S>                                                                                                        <C>
SECTION 1.01.  General.................................................................................      3
SECTION 1.02.  Specific Terms..........................................................................      3
SECTION 1.03.  Calculations............................................................................     37

                                              ARTICLE II
                              ESTABLISHMENT OF TRUST; TRANSFER OF ASSETS

SECTION 2.01.  Closing.................................................................................     38
SECTION 2.02.  Conditions to the Closing...............................................................     39
SECTION 2.03.  [Conveyance of the Subsequent Assets....................................................     40
SECTION 2.04.  Acceptance by Trustee...................................................................     42
SECTION 2.05.  REMIC Provisions........................................................................     43

                                              ARTICLE III
                                    REPRESENTATIONS AND WARRANTIES

SECTION 3.01.  Representations and Warranties Regarding the Originator and the Seller..................     45
SECTION 3.02.  Representations and Warranties Regarding Each Contract..................................     48
SECTION 3.03.  Representations and Warranties Regarding Each Mortgage Loan.............................     52
SECTION 3.04.  Representations and Warranties Regarding the Assets in the Aggregate....................     57
SECTION 3.05.  Representations and Warranties Regarding the Asset Files................................     60
SECTION 3.06.  Repurchase of Assets or Substitution of Assets for Breach of Representations and
         Warranties....................................................................................     60
SECTION 3.07.  No Repurchase or Substitution Under Certain Circumstances...............................     62

                                              ARTICLE IV
                      PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS

SECTION 4.01.  Custody of Assets.......................................................................     63
SECTION 4.02.  Filings.................................................................................     65
SECTION 4.03.  Name Change or Relocation...............................................................     65
SECTION 4.04.  Chief Executive Office and Place of Formation...........................................     65
SECTION 4.05.  Costs and Expenses......................................................................     65

                                               ARTICLE V
                                          SERVICING OF ASSETS

SECTION 5.01.  Responsibility for Asset Administration.................................................     66
SECTION 5.02.  Standard of Care........................................................................     66
SECTION 5.03.  Records.................................................................................     66
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                          <C>
SECTION 5.04.  Inspection; Electronic File..............................................................     67
SECTION 5.05.  Collection Account.......................................................................     67
SECTION 5.06.  Enforcement..............................................................................     68
SECTION 5.07.  Trustee to Cooperate.....................................................................     69
SECTION 5.08.  Costs and Expenses.......................................................................     70
SECTION 5.09.  Maintenance of Insurance.................................................................     70
SECTION 5.10.  Repossession.............................................................................     73
SECTION 5.11.  Title, Conservation, and Disposition of Repo Property and REO Property...................     74
SECTION 5.12.  Retitling; Security Interests............................................................     77
SECTION 5.13.  Covenants, Representations and Warranties of Servicer....................................     77
SECTION 5.14.  Payment of Taxes.........................................................................     78
SECTION 5.15.  Subservicing Arrangements................................................................     79

                                               ARTICLE VI
                                        REPORTS AND TAX MATTERS

SECTION 6.01.  Monthly Reports..........................................................................     80
SECTION 6.02.  Certificate of Servicing Officer.........................................................     80
SECTION 6.03.  Other Data...............................................................................     80
SECTION 6.04.  Annual Report of Accountants; Annual Statement of Compliance.............................     80
SECTION 6.05.  Statements to Certificateholders.........................................................     81
SECTION 6.06.  Payment of Taxes.........................................................................     83
SECTION 6.07.  Reports to the Commission; Annual Certification of Commission Filing.....................     84

                                              ARTICLE VII
                                            SERVICE TRANSFER

SECTION 7.01.  Event of Termination.....................................................................     86
SECTION 7.02.  Transfer.................................................................................     87
SECTION 7.03.  Backup Servicer to Act, Appointment of Successor.........................................     88
SECTION 7.04.  Notification to Certificateholders.......................................................     89
SECTION 7.05.  Effect of Transfer.......................................................................     89
SECTION 7.06.  Transfer of Collection Account...........................................................     90

                                              ARTICLE VIII
                                                PAYMENTS

SECTION 8.01.  Monthly Payments.........................................................................     90
SECTION 8.02.  Permitted Withdrawals from the Collection Account........................................     91
SECTION 8.03.  Payments.................................................................................     92
SECTION 8.04.  [Reserved]...............................................................................     95
SECTION 8.05.  The Servicer's Purchase Option; Auction Sale; Additional Principal Distribution Amount...     95
SECTION 8.06.  [Reserved]...............................................................................     98
SECTION 8.07.  [Pre-Funding Account.]...................................................................     98
SECTION 8.08.  The Distribution Account.................................................................     99
SECTION 8.09.  Trustee Reimbursement Account............................................................     99
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                          <C>
                                               ARTICLE IX
                                            THE CERTIFICATES

SECTION 9.01.  The Certificates.........................................................................     100
SECTION 9.02.  Registration of Transfer and Exchange of Certificates....................................     101
SECTION 9.03.  No Charge; Disposition of Void Certificates..............................................     106
SECTION 9.04.  Mutilated, Destroyed, Lost or Stolen Certificates........................................     106
SECTION 9.05.  Persons Deemed Owners....................................................................     106
SECTION 9.06.  Access to List of Certificateholders' Names and Addresses................................     106
SECTION 9.07.  Authenticating Agents....................................................................     107

                                               ARTICLE X
                  INDEMNITIES; CERTAIN MATTERS RELATING TO THE ORIGINATOR, THE SELLER,
                                     THE SERVICER AND THE DEPOSITOR

SECTION 10.01.  Seller's Indemnities....................................................................     107
SECTION 10.02.  Liabilities to Obligors.................................................................     107
SECTION 10.03.  Tax Indemnification.....................................................................     108
SECTION 10.04.  Servicer's Indemnities..................................................................     108
SECTION 10.05.  Operation of Indemnities................................................................     108
SECTION 10.06.  Liability of the Originator, the Seller, the Servicer, the Backup Servicer and the
         Depositor......................................................................................     108
SECTION 10.07.  Merger or Consolidation of, or Assumption of the Obligations of, the Originator, the
         Seller, the Servicer, the Backup Servicer or the Depositor.....................................     109
SECTION 10.08.  Limitation on Liability of Servicer, the Backup Servicer, Others........................     109
SECTION 10.09.  Servicer and Backup Servicer Not to Resign..............................................     110

                                               ARTICLE XI
                                              THE TRUSTEE

SECTION 11.01.  Duties of Trustee.......................................................................     111
SECTION 11.02.  Certain Matters Affecting the Trustee...................................................     112
SECTION 11.03.  Trustee Not Liable for Certificates or Assets...........................................     113
SECTION 11.04.  Rights of Certificateholders to Direct Trustee and to Waive Event of Termination........     113
SECTION 11.05.  Trustee's Fees and Expenses.............................................................     114
SECTION 11.06.  Eligibility Requirements for Trustee....................................................     115
SECTION 11.07.  Resignation or Removal of Trustee.......................................................     115
SECTION 11.08.  Successor Trustee.......................................................................     116
SECTION 11.09.  Merger or Consolidation of Trustee......................................................     117
SECTION 11.10.  Tax Returns.............................................................................     117
SECTION 11.11.  Obligor Claims..........................................................................     117
SECTION 11.12.  Appointment of Co-Trustee or Separate Trustee...........................................     118
SECTION 11.13.  Agents of Trustee.......................................................................     119
SECTION 11.14.  Representations and Warranties of the Trustee...........................................     119
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>                                                                                                             <C>
                                              ARTICLE XII
                                             MISCELLANEOUS

SECTION 12.01.  Servicer and Backup Servicer Not to Assign Duties or Resign; Delegation of Servicing
         Functions........................................................................................      120
SECTION 12.02.  Maintenance of Office or Agency...........................................................      120
SECTION 12.03.  Termination...............................................................................      120
SECTION 12.04.  Acts of Certificateholders................................................................      122
SECTION 12.05.  Calculations..............................................................................      123
SECTION 12.06.  Assignment or Delegation by Seller or the Originator......................................      123
SECTION 12.07.  Amendment.................................................................................      123
SECTION 12.08.  Notices...................................................................................      125
SECTION 12.09.  Merger and Integration....................................................................      127
SECTION 12.10.  Headings..................................................................................      127
SECTION 12.11.  Governing Law.............................................................................      127
SECTION 12.12.  Recordation of Agreement..................................................................      127
SECTION 12.13.  Limitation on Rights of Certificateholders................................................      127
SECTION 12.14.  Severability of Provisions................................................................      128
SECTION 12.15.  Certificates Nonassessable and Fully Paid.................................................      128
SECTION 12.16.  Third-Party Beneficiaries.................................................................      128
SECTION 12.17.  Counterparts..............................................................................      128
SECTION 12.18.  Effect of Headings and Table of Contents..................................................      129
</TABLE>

                                       iv
<PAGE>

      POOLING AND SERVICING AGREEMENT, dated as of [_________________], among
Origen Residential Securities, Inc., a corporation formed and existing under the
laws of the State of Delaware, as Depositor, (the "Depositor"), Origen Financial
L.L.C., a limited liability company formed and existing under the laws of the
State of Delaware as originator (the "Originator") and Origen Servicing, Inc.
("Origen Servicing"), a corporation organized and existing under the laws of the
State of Delaware, as servicer (the "Servicer") and as the seller (the
"Seller"), [______________________________], as the backup servicer (the "Backup
Servicer") and [________________________], [_____________________], not in its
individual capacity but solely as Trustee (the "Trustee").

                              PRELIMINARY STATEMENT

      The Depositor is the owner of the Trust that is hereby conveyed to the
Trustee in return for the Certificates. The Trust [(exclusive of the Pre-Funding
Account)] for federal income tax purposes will consist of two REMICs (the
"Subsidiary REMIC" and the "Master REMIC"). The Certificates will represent the
entire beneficial ownership interest in the Trust. The assets of the Trust
[(exclusive of the Pre-Funding Account)] will constitute the assets of the
Subsidiary REMIC and the Subsidiary REMIC will issue eleven uncertificated
regular interests that will be held as the sole assets of the Master REMIC. The
Class R-1 and Class R-2 Interests will be the residual interests in each of the
Subsidiary REMIC and the Master REMIC, respectively. The Class A, Class M, Class
B and Class X Certificates will represent the "regular interests" in the Master
REMIC and the Class R Certificates will represent the single "residual interest"
in each of the Subsidiary REMIC and the Master REMIC. All interests created
hereby will be retired on or before the Latest Possible Maturity Date, which
shall be the Distribution Date in [___________].

      The Subsidiary REMIC will be evidenced by the Class 1-Accrual Interest
(the "REMIC 1 Accrual Class"), and the Class 1-A-1, Class 1-A-2, Class 1-A-3,
Class 1-A-4, Class 1-A-5, Class 1-A-6, Class 1-A-7, Class 1-M-1, Class 1-M-2,
Class 1-B-1 Interests (the "REMIC 1 Accretion Directed Classes"), which will be
uncertificated and non-transferable and are hereby designated as the "regular
interests" in the Subsidiary REMIC. The REMIC 1 Accrual Class and each REMIC 1
Accretion Directed Class are each hereby designated regular interests in the
Subsidiary REMIC for federal income tax purposes and will have the following
designations, initial principal balances, pass-through rates, and Corresponding
Classes of the Master REMIC Certificates ("Corresponding Classes"):

<TABLE>
<CAPTION>
 REMIC 1 Interests                    Initial Balance              Pass-Through Rate       Corresponding Class
--------------------             ---------------------------       -----------------       -------------------
<S>                              <C>                               <C>                     <C>
Class 1-A-1 Interest             (1/2 initial Corresponding        Weighted Average               A-1
                                 Class Certificate Balance)        Net Asset Rate

Class 1-A-2 Interest             (1/2 initial Corresponding        Weighted Average               A-2
                                 Class Certificate Balance)        Net Asset Rate

Class 1-A-3 Interest             (1/2 initial Corresponding        Weighted Average               A-3
                                 Class Certificate Balance)        Net Asset Rate

Class 1-A-4 Interest             (1/2 initial Corresponding        Weighted Average               A-4
                                 Class Certificate Balance)        Net Asset Rate

Class 1-A-5 Interest             (1/2 initial Corresponding        Weighted Average               A-5
                                 Class Certificate Balance)        Net Asset Rate
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
 REMIC 1 Interests                    Initial Balance              Pass-Through Rate       Corresponding Class
--------------------             ---------------------------       -----------------       -------------------
<S>                              <C>                               <C>                     <C>
Class 1-A-6 Interest             (1/2 initial Corresponding        Weighted Average               A-6
                                 Class Certificate Balance)        Net Asset Rate

Class 1-A-7 Interest             (1/2 initial Corresponding        Weighted Average               A-7
                                 Class Certificate Balance)        Net Asset Rate

Class 1-M-1 Interest             (1/2 initial Corresponding        Weighted Average               M-1
                                 Class Certificate Balance)        Net Asset Rate

Class 1-M-2 Interest             (1/2 initial Corresponding        Weighted Average               M-2
                                 Class Certificate Balance)        Net Asset Rate

Class 1-B-1 Interest             (1/2 initial Corresponding        Weighted Average               B-1
                                 Class Certificate Balance)        Net Asset Rate

Class 1 Accrual Interest         (1/2 (the sum of the Pool         Weighted Average               N/A
                                 Principal Balance and the         Net Asset Rate
                                 Pre-Funded Amount)
                                 plus 1/2 Closing Date
                                 Overcollateralization Amount)
</TABLE>

      On each Distribution Date, 50% of the increase in the
Overcollateralization Amount will be payable as a reduction of the principal
balances of the REMIC 1 Accretion Directed Classes (each such Class will be
reduced by an amount equal to 50% of any increase in the Overcollateralization
Amount that is attributable to a reduction in the Class Principal Balance of its
Corresponding Class) and will be accrued and added to the principal balance of
the REMIC 1 Accrual Class. All payments of scheduled principal and prepayments
of principal generated by the Assets shall be allocated 50% to the REMIC 1
Accrual Class, and 50% to the REMIC 1 Accretion Directed Classes (principal
payments shall be allocated among such REMIC 1 Accretion Directed Classes in an
amount equal to 50% of the principal amounts allocated to their respective
Corresponding Classes), until paid in full. Notwithstanding the above, principal
payments that are attributable to an Overcollateralization Release Amount shall
be allocated to the REMIC 1 Accrual Class (until paid in full) and payable to
the Class X Certificates. Realized losses shall be applied such that after all
distributions have been made on each Distribution Date (i) the principal
balances of each of the REMIC 1 Accretion Directed Classes is equal to 50% of
the Class Principal Balance of its respective Corresponding Class, and the REMIC
1 Accrual Class is equal to 50% of the aggregate principal balance of the Assets
plus 50% of the Overcollateralization Amount.

      The following table sets forth characteristics of the Certificates, each
of which, except for the Class R Certificates, is hereby designated a "regular
interest" in the Master REMIC, together with the minimum denominations and
integral multiples in excess thereof in which such Classes shall be issuable
(except that one Certificate of each Class of Certificates may be issued in a
different amount and, in addition, one Class R Certificate representing the Tax
Matters Person Certificate may be issued in a different amount):

<TABLE>
<CAPTION>
                      Initial Class                                 Minimum       Integral Multiples in
                   Certificate Balance     Pass-Through Rate     Denomination       Excess of Minimum
                   -------------------     -----------------     ------------     ----------------------
<S>                <C>                     <C>                   <C>              <C>
Class A-1                                                          $1,000                   $1
Class A-2                                                          $1,000                   $1
Class A-3                                                          $1,000                   $1
</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>
                      Initial Class                                 Minimum       Integral Multiples in
                   Certificate Balance     Pass-Through Rate     Denomination       Excess of Minimum
                   -------------------     -----------------     ------------     ----------------------
<S>                <C>                     <C>                   <C>              <C>
Class A-4                                                          $1,000                $1
Class A-5                                                          $1,000                $1
Class A-6                                                          $1,000                $1
Class A-7                                                          $1,000                $1
Class M-1                                                          $1,000                $1
Class M-2                                                          $1,000                $1
Class B-1                                                          $1,000                $1
Class X                (3)                      (4)                N/A                   N/A
Class R                $0                      N/A                 20%                   N/A
</TABLE>

(1)   As to any Distribution Date, this rate shall equal the lesser of (x) the
fixed rate per annum set forth above and (y) the Weighted Average Net Asset
Rate.

(2)   After the Optional Termination Date, the Pass-Through Rate on the
Class A-6 Certificates shall increase to the lesser of (a) [_______]% per annum
and (b) the Weighted Average Net Asset Rate. After the Optional Termination
Date, the Pass-Through Rate on the Class A-7 Certificates will increase to the
lesser of (a) [_______]% per annum and (b) the Weighted Average Net Asset Rate.

(3)   On each Distribution Date, the Class X Certificates will have a notional
balance equal to the Pool Principal Balance.

(4)   As to any Distribution Date, the Pass-Through Rate for the Class X
Certificates shall equal the excess of: (i) the Weighted Average Adjusted Net
Contract Rate, less with respect to each of the first three Distribution Dates,
[________]% over (ii) the product of: (A) two and (B) the weighted average
Pass-Through Rate of the REMIC 1 Regular Interests, where the REMIC 1 Accrual
Class is subject to a cap equal to zero and each REMIC 1 Accretion Directed
Class is subject to a cap equal to the Pass-Through Rate on its Corresponding
Class.

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

                                   ARTICLE I

                                  DEFINITIONS

      SECTION 1.01. General.

      For the purpose of this Agreement, except as otherwise expressly provided
or unless the context otherwise requires, the terms defined in this Article
include the plural as well as the singular, the words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section or other subdivision, and Section
references refer to Sections of the Agreement.

      SECTION 1.02. Specific Terms.

      "Accrual Period": With respect to any Distribution Date and Class of
Certificates, the period from the preceding Distribution Date (or the Closing
Date for the first Distribution Date) through and including the day preceding
the current Distribution Date.

      "Additional Asset" means an Additional Contract or an Additional Mortgage
Loan.

                                       3
<PAGE>

      "Additional Contract" means a Contract identified in the List of Contracts
that is not an Initial Contract or a Subsequent Contract.

      "Additional Mortgage Loan" means a Mortgage Loan identified in the
Mortgage Loan Schedule that is not an Initial Mortgage Loan or a Subsequent
Mortgage Loan.

      "Addition Notice" means, with respect to each transfer of Subsequent
Assets to the Trust pursuant to Section 2.03 of this Agreement, a notice,
substantially in the form of Exhibit O, which shall be given not less than five
Business Days prior to the related Subsequent Transfer Date, of the Seller's
designation of Subsequent Assets to be sold to the Trust and the aggregate
Cut-off Date Principal Balances of such Subsequent Assets.

      "Additional Principal Distribution Amount" means, as to any Distribution
Date, the lesser of (1) the Distributable Excess Spread and (2) the
Overcollateralization Deficiency Amount.

      ["Adjusted Amount Available" means, as to any Distribution Date, the sum
of the Amount Available and any amount withdrawn from the Pre-Funding Account
and deposited in the Distribution Account on such Distribution Date.]

      "Adjusted Certificate Principal Balance" means, as of any Distribution
Date, the sum of the Class A Principal Balance, the Class M-1 Adjusted Principal
Balance, the Class M-2 Adjusted Principal Balance and the Class B-1 Adjusted
Principal Balance as of that Distribution Date.

      "Advance Payment" means any payment by an Obligor in advance of the
related Due Period in which it would be due under such Contract and which
payment is not a Principal Prepayment.

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

      "Agreement" means this Pooling and Servicing Agreement, as the same may be
amended or supplemented from time to time.

      "Amount Available" means, as to any Distribution Date, an amount equal to

      (a)   the sum of

            (i)   the amount on deposit in the Collection Account as of the
                  close of business on the last day of the related Due Period,
                  and

            (ii)  any amounts deposited into the Distribution Account on the
                  Business Day immediately preceding such Distribution Date
                  pursuant to Section 5.09, minus

                                       4
<PAGE>

      (b) amounts permitted to be withdrawn by the Servicer from the Collection
Account pursuant to clauses (b) - (f), inclusive, of Section 8.02 as of the
close of business on the Business Day preceding such Distribution Date.

      "Applicants" has the meaning assigned in Section 9.06.

      "Appraised Value" means, with respect to any Manufactured Home, the value
of such Manufactured Home as determined by a professional appraiser (who may be
an employee of the Servicer).

      "Asset" means a Contract or Mortgage Loan.

      "Asset Documents" mean, collectively, the documents contained in the
Contract Files, Land-and-Home Contract Files and the Mortgage Loan Files.

      "Asset File" means with respect to any Contract, Land-and-Home Contract
and Mortgage Loan, the related Contract File, the Land-and-Home Contract File
and the Mortgage Loan File, respectively.

      "Asset Purchase Agreement" means the asset purchase agreement, dated as of
__________, 20__, among the Seller, the Depositor and the Originator.

      "Asset Rate" As to any Asset, the related Contract Rate or Mortgage Rate,
as applicable.

      "Asset Schedule" means the list or lists attached to this Agreement
consisting of the related List of Contracts, if any and the related Mortgage
Loan Schedule, if any.

      "Assignment" means an assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form (excepting therefrom, if applicable,
the mortgage recordation information which has not been required pursuant to the
definition of "Land-and Home Contract File" or "Trustee Mortgage Loan File," as
applicable, or returned by the appropriate recorder's office) which is
sufficient under the laws of the jurisdiction wherein the related Mortgaged
Property is located to reflect of record the sale of the Mortgage, which may be
in the form of one or more blanket assignments covering Mortgages secured by
Mortgaged Properties located in the same county, if permitted by law.

      "Assumption Fee" means any assumption or other similar fee paid by the
Obligor on a Contract.

      "Auction Date" has the meaning assigned in Section 8.05(e).

      "Authenticating Agent" means any authenticating agent appointed pursuant
to Section 9.07.

      ["Backup Servicer" means [__________________________________] its
successors in interest or any successor servicer appointed as herein provided.]

                                       5
<PAGE>

      ["Backup Servicing Fee" means with respect to any Distribution Date, an
amount equal to [_______________________________________________]. The Backup
Servicing Fee shall be payable by the Servicer pursuant to Section 8.03(a). Upon
the occurrence of a Service Transfer as contemplated by Section 7.01, payment of
the Backup Servicing Fee shall cease and the Backup Servicer, in its role as
Servicer hereunder, shall be paid the Monthly Servicing Fee. [In addition, the
Backup Servicer shall be entitled to an initial commitment fee of $[______].]]

      ["Backup Servicing Fee Rate" means for any Distribution Date a per annum
rate expressed as the product of 12 and a fraction the numerator of which is the
Backup Servicing Fee for that Distribution Date and the denominator of which is
the Pool Principal Balance as of the first day of the related Due Period.]

      "Book-Entry Certificate" means any Certificate registered in the name of
the Depository or its nominee ownership of which is 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).

      "Business Day" means any day other than (a) a Saturday or a Sunday, or (b)
a day on which banking institutions in the States of New York, Virginia,
Michigan, Texas or the state in which the Corporate Trust Office is located are
authorized or obligated by law, executive order or governmental decree to be
closed.

      "Certificate Owner" means the person who is the beneficial owner of a
Book-Entry Certificate.

      "Certificate Register" means the register maintained pursuant to Section
9.02.

      "Certificate Registrar" or "Registrar" means the registrar appointed
pursuant to Section 9.02.

      "Certificateholder" or "Holder" means the person in whose name a
Certificate is registered on the Certificate Register, except that, solely for
the purposes of giving any consent, waiver, request or demand pursuant to this
Agreement, any Regular Certificate registered in the name of the Depositor, the
Seller, the Servicer or any of their Affiliates shall be deemed not to be
outstanding and the Percentage Interest evidenced thereby shall not be taken
into account in determining whether the requisite Percentage Interest necessary
to effect any such consent, request, waiver or demand has been obtained;
provided, however, that, solely for the purpose of determining whether the
Trustee is entitled to rely upon any such consent, waiver, request or demand,
only Regular Certificates which the Trustee knows to be so owned shall be so
disregarded.

      "Certificates" means the Origen Residential Pass-Through Certificates,
Series 20___-___, Class A, Class M, Class B, Class X and Class R Certificates,
collectively.

      "Class A," "Class M," "Class B," or "Class X" means pertaining to each
Class of Class A Certificates, Class M Certificates, Class B and/or Class X
Certificates, as the case may be.

                                       6
<PAGE>

      "Class A Certificate" means any one of the Class A-1, Class A-2, Class
A-3, Class A-4, Class A-5, Class A-6 and Class A-7 Certificates executed and
delivered by the Trustee substantially in the form set forth in Exhibit A and
evidencing an interest designated as a "regular interest" in the Master REMIC
for purposes of the REMIC Provisions.

      "Class A Distribution Amount" means, as to any Distribution Date, the
lesser of (a) the [Adjusted] Amount Available for such Distribution Date (less
any amounts paid to the Trustee, the Servicer or the Backup Servicer pursuant to
Section 8.03(a)(1) through (2)) and (b) the Class A Formula Distribution Amount
for such Distribution Date; provided, that after the Class A-6 Cross-Over Date
the Class A Distribution Amount shall be zero.

      "Class A Formula Distribution Amount" means, as to any Distribution Date,
an amount equal to the sum of (a) interest (calculated in the manner specified
in Section 1.03) at (i) the Class A-1 Pass-Through Rate on the Class A-1
Principal Balance, (ii) the Class A-2 Pass-Through Rate on the Class A-2
Principal Balance, (iii) the Class A-3 Pass-Through Rate on the Class A-3
Principal Balance, (iv) the Class A-4 Pass-Through Rate on the Class A-4
Principal Balance, (v) the Class A-5 Pass-Through Rate on the Class A-5
Principal Balance, (vi) the Class A-6 Pass-Through Rate on the Class A-6
Principal Balance, and (vii) the Class A-7 Pass-Through Rate on the Class A-7
Principal Balance, in each case calculated immediately prior to such
Distribution Date, (b) the aggregate Unpaid Class A Interest Shortfall, if any,
(c) the Class A Percentage of the Formula Principal Distribution Amount, (d) any
Unpaid Class A Principal Shortfall and (e) any Additional Principal Distribution
Amount to be distributed to the Class A Certificates pursuant to Section
8.03(a)(12); provided, however, that the aggregate of all amounts distributed
for all Distribution Dates pursuant to clauses (c), (d) and (e) shall not exceed
the sum of the Original Class A-l Principal Balance, the Original Class A-2
Principal Balance, the Original Class A-3 Principal Balance, the Original Class
A-4 Principal Balance, the Original Class A-5 Principal Balance, the Original
Class A-6 Principal Balance and the Original Class A-7 Principal Balance.

      "Class A Interest Distribution Amount" means, as to each Class of Class A
Certificates and any Distribution Date, the sum of the amounts specified in
clause (a)(i), (a)(ii), (a)(iii), (a)(iv), (a)(v), (a)(vi) and (a)(vii), as
applicable, of the definition of the term "Class A Formula Distribution Amount"
plus the Unpaid Class A Interest Shortfall, if any, with respect to such Class.

      "Class A Interest Shortfall" means, as to any Distribution Date and with
respect to each Class of Class A Certificates, the amount, if any, by which the
amount distributed to Holders of such Class of Class A Certificates on such
Distribution Date pursuant to Section 8.03(a)(3) is less than the Class A
Interest Distribution Amount for such Class.

      "Class A Percentage" means, as to any Distribution Date, a fraction,
expressed as a percentage, the numerator of which is the Class A Principal
Balance and the denominator of which is the sum of (a) the Class A Principal
Balance, (b) if the Class M-1 Distribution Test is satisfied, the Class M-1
Principal Balance, otherwise zero, (c) if the Class M-2 Distribution Test is
satisfied, the Class M-2 Principal Balance, otherwise zero, and (d) if the Class
B Distribution Test is satisfied, the Class B Principal Balance, otherwise zero.

                                       7
<PAGE>

      "Class A Principal Balance" means, as to any Distribution Date, the sum of
the Class Principal Balances of the Class A Certificates.

      "Class A Principal Deficiency Amount" means, as to any Distribution Date,
the amount, if any, by which the Pool Principal Balance [plus any Pre-Funded
Amount] is less than the Class A Principal Balance.

      "Class A Principal Shortfall" means, as to any Distribution Date, the
amount, if any, by which the amount distributed to Holders of Class A
Certificates on such Distribution Date pursuant to Sections 8.03(a)(8)(i) and
(iii) is less than the Class A Percentage of the Formula Principal Distribution
Amount for such Distribution Date.

      "Class A-1 Pass-Through Rate" means [_________]% per annum.

      "Class A-1/A-6 Pro Rata Percentage" means the fraction, expressed as a
percentage, the numerator of which is the sum of the Class Principal Balances on
the Closing Date of each of the Class A-1 Certificates, Class A-2 Certificates,
Class A-3 Certificates, Class A-4 Certificates, Class A-5 Certificates and Class
A-6 Certificates and the denominator of which is the Class A Principal Balance
on the Closing Date.

      "Class A-2 Pass-Through Rate" means [________]% per annum.

      "Class A-3 Pass-Through Rate" means [________]% per annum.

      "Class A-4 Pass-Through Rate" means [________]% per annum.

      "Class A-5 Pass-Through Rate" means the lesser of (a) [________]% per
annum and (b) the Weighted Average Net Asset Rate.

      "Class A-6 Cross-Over Date" means the Distribution Date on which the Class
A-6 Principal Balance (after giving effect to the distributions of principal on
the Class A-6 Certificates on such Distribution Date) is reduced to zero.

      "Class A-6 Pass-Through Rate" means on every Distribution Date on or prior
to the Optional Termination Date, the lesser of (a) [________]% per annum and
(b) the Weighted Average Net Asset Rate. On every Distribution Date after the
Optional Termination Date, the lesser of (a) [________]% per annum and (b) the
Weighted Average Net Asset Rate.

      "Class A-7 Pass-Through Rate" means on every Distribution Date on or prior
to the Optional Termination Date, the lesser of (a) [________]% per annum and
(b) the Weighted Average Net Asset Rate. On every Distribution Date after the
Optional Termination Date, the lesser of (a) [________]% per annum and (b) the
Weighted Average Net Asset Rate.

      "Class A-7 Pro Rata Percentage" means the fraction, expressed as a
percentage, the numerator of which is the Class Principal Balance on the Closing
Date of the Class A-7 Certificates and the denominator of which is the Class A
Principal Balance on the Closing Date.

      "Class B Certificate" means any one of the Class B-1 Certificates.

                                       8
<PAGE>

      "Class B Distribution Test" means, to be considered "satisfied" for any
Distribution Date, that (i) such Distribution Date occurs in or after
[________]; (ii) the Pool Performance Test is satisfied and (iii) the fraction,
expressed as a percentage, the numerator of which is the sum of the Class B
Principal Balance and the Overcollateralization Amount as of such Distribution
Date and the denominator of which is the Pool Principal Balance as of the
immediately preceding Distribution Date, is equal to or greater than
[________]%.

      "Class B Percentage" means:

            (i)   as to any Distribution Date on which the Class B Distribution
                  Test is not satisfied and the Class A Principal Balance, the
                  Class M-1 Principal Balance and the Class M-2 Principal
                  Balance have not been reduced to zero, 0%, and

            (ii)  as to any other Distribution Date, a fraction, expressed as a
                  percentage, the numerator of which is the Class B Principal
                  Balance and the denominator of which is the sum of (a) the
                  Class A Principal Balance, (b) the Class M-1 Principal
                  Balance, (c) the Class M-2 Principal Balance and (d) the Class
                  B Principal Balance.

      "Class B-1 Adjusted Principal Balance" means, as of any Distribution Date,
the Class B-1 Principal Balance as of that Distribution Date minus the Class B-1
Liquidation Loss Amount (if any) as of the prior Distribution Date.

      "Class B-1 Certificate" means any one of the Class B-1 Certificates
executed and delivered by the Trustee substantially in the form set forth in
Exhibit C-1 hereto and evidencing an interest designated as a "regular interest"
in the Master REMIC for purposes of the REMIC Provisions.

      "Class B-1 Cross-Over Date" means the Distribution Date on which the Class
B-1 Principal Balance (after giving effect to the distributions of principal on
the Class B-1 Certificates on such Distribution Date) is reduced to zero.

      "Class B-1 Distribution Amount" means, as to any Distribution Date, the
lesser of (a) the Adjusted Amount Available less the sum of (i) any amounts paid
to the Trustee, the Backup Servicer or the Servicer pursuant to Section
8.03(a)(1) through (2), (ii) the Class A Distribution Amount, (iii) the Class
M-1 Distribution Amount, and (iv) the Class M-2 Distribution Amount and (b) the
Class B-1 Formula Distribution Amount for such Distribution Date; provided, that
after the Class B-1 Cross-Over Date the Class B-1 Distribution Amount shall be
zero.

      "Class B-1 Formula Distribution Amount" means, as to any Distribution
Date, an amount equal to the sum of (a) interest (calculated in the manner
specified in Section 1.03) at the Class B-1 Pass-Through Rate on the Class B-1
Adjusted Principal Balance as of such Distribution Date, (b) any Unpaid Class
B-1 Interest Shortfall, (c) the Class B Percentage of the Formula Principal
Distribution Amount, (d) any Unpaid Class B-1 Principal Shortfall, (e) any
Additional Principal Distribution Amount to be distributed to the Class B-1
Certificates pursuant to Section 8.03(a)(13), (f) any Class B-1 Liquidation Loss
Interest Amount, and (g) any Unpaid Class B-1 Liquidation Loss Interest
Shortfall; provided, however, that on the Class M-2 Cross-Over Date,

                                       9
<PAGE>

the balance of any amounts that would have been distributable on such date
pursuant to clauses (c), (d) and (e) of the term "Class M-2 Formula Distribution
Amount" (assuming a sufficient Amount Available) but for the operation of the
second proviso to such term shall instead be included in clause (c), (d) or (e)
of this definition, as applicable; provided, further, that the aggregate of all
amounts distributed pursuant to clauses (c), (d) and (e) of this definition
shall not exceed the Original Class B-1 Principal Balance.

      "Class B-1 Interest Deficiency Amount" means, as to the Class B-1
Certificates and any Distribution Date, the difference, if any, between (i) the
sum of the amounts described in clauses (a), (b), (f) and (g) of the definition
of the term "Class B-1 Formula Distribution Amount" and (ii) the amount
available for distribution to the Class B-1 Certificateholders pursuant to
Section 8.03(a)(6)(i) and (ii) and Section 8.03(a)(11)(iii) and (iv) on such
Distribution Date.

      "Class B-1 Interest Distribution Amount" means, as to any Distribution
Date, the amount specified in clause (a) of the definition of "Class B-1 Formula
Distribution Amount" plus the Unpaid Class B-1 Interest Shortfall, if any.

      "Class B-1 Interest Shortfall" means, as to any Distribution Date, the
difference, if any, between (A) the sum of (i) the amount distributed to Holders
of the Class B-1 Certificates on such Distribution Date pursuant to Sections
8.03(a)(6)(i) and (ii), and (ii) any amount distributed to the Holders of the
Class B-1 Certificates pursuant to Section 8.03(d) on such Distribution Date,
and (B) the Class B-1 Interest Distribution Amount for such Distribution Date.

      "Class B-1 Liquidation Loss Amount" means, as of any Distribution Date,
the lesser of (x) the amount, if any, by which the sum of the Class A Principal
Balance, the Class M-1 Principal Balance, the Class M-2 Principal Balance and
the Class B-1 Principal Balance for such Distribution Date exceeds the sum of
the Pre-Funded Amount plus the Pool Principal Balance for such Distribution Date
(after giving effect to all distributions of principal on the Class A, Class
M-1, Class M-2 and Class B-1 Certificates on such Distribution Date) and (y) the
Class B-1 Principal Balance (after giving effect to all distributions of
principal on the Class B-1 Certificates on such Distribution Date).

      "Class B-1 Liquidation Loss Interest Amount" means, as to any Distribution
Date, an amount equal to interest (calculated in the manner specified in Section
1.03) at the Class B-1 Pass-Through Rate on the Class B-1 Liquidation Loss
Amount (if any) for the immediately preceding Distribution Date.

      "Class B-1 Liquidation Loss Interest Shortfall" means, as to any
Distribution Date, the amount, if any, by which the amount distributed to
Holders of the Class B-1 Certificates on such Distribution Date pursuant to
Section 8.03(a)(11)(iii) is less than the Class B-1 Liquidation Loss Interest
Amount for such Distribution Date.

      "Class B-1 Pass-Through Rate" means, with respect to any Distribution
Date, the lesser of (a) [________]% per annum and (b) the Weighted Average Net
Asset Rate.

      "Class B-1 Principal Balance" means, as to any Distribution Date, the
Original Class B-1 Principal Balance less all amounts previously distributed to
Holders of Class B-1 Certificates on account of principal.

                                       10
<PAGE>

      "Class B-1 Principal Shortfall" means, as to any Distribution Date, the
amount, if any, by which the amount distributed to Holders of Class B-1
Certificates on such Distribution Date pursuant to Section 8.03(a)(11)(ii) is
less than the amount described in clause (c) of the definition of the term
"Class B-1 Formula Distribution Amount."

      "Class M Certificate" means any one of the Class M-1 or M-2 Certificates
executed and delivered by the Trustee.

      "Class M-1 Adjusted Principal Balance" means, as to any Distribution Date,
the Class M-1 Principal Balance as of that Distribution Date minus the Class M-1
Liquidation Loss Amount (if any) as of the prior Distribution Date.

      "Class M-1 Certificate" means any one of the Class M-1 Certificates
executed and delivered by the Trustee substantially in the form set forth in
Exhibit B and evidencing an interest designated as a "regular interest" in the
Trust for the purposes of the REMIC Provisions.

      "Class M-1 Cross-Over Date" means the Distribution Date on which the Class
M-1 Principal Balance (after giving effect to the distributions of principal on
the Class M-1 Certificates on such Distribution Date) is reduced to zero.

      "Class M-1 Distribution Amount" means, as to any Distribution Date, the
lesser of (a) the Adjusted Amount Available less the sum of (i) any amounts paid
to the Trustee, the Backup Servicer and the Servicer pursuant to Section
8.03(a)(1) through (2) and (ii) the Class A Distribution Amount and (b) the
Class M-1 Formula Distribution Amount for such Distribution Date; provided, that
after the Class M-1 Cross-Over Date the Class M-1 Distribution Amount shall be
zero.

      "Class M-1 Distribution Test" means, to be considered "satisfied" for any
Distribution Date, that (i) such Distribution Date occurs in or after
[_____________]; (ii) the Pool Performance Test is satisfied; and (iii) the
fraction, expressed as a percentage, the numerator of which is the sum of the
Class M-1 Principal Balance, the Class M-2 Principal Balance, the Class B
Principal Balance and the Overcollateralization Amount as of such Distribution
Date and the denominator of which is the Pool Principal Balance as of the
immediately preceding Distribution Date, is equal to or greater than
[_________]%.

      "Class M-1 Formula Distribution Amount" means, as to any Distribution
Date, an amount equal to the sum of (a) interest (calculated in the manner
specified in Section 1.03) at the Class M-1 Pass-Through Rate on the Class M-1
Adjusted Principal Balance as of such Distribution Date, (b) the aggregate
Unpaid Class M-1 Interest Shortfall, if any, (c) the Class M-1 Percentage of the
Formula Principal Distribution Amount, (d) any Unpaid Class M-1 Principal
Shortfall, (e) any Additional Principal Distribution Amount to be distributed to
the Class M-1 Certificates pursuant to Section 8.03(a)(13), (f) any Class M-1
Liquidation Loss Interest Amount, and (g) any Unpaid Class M-1 Liquidation Loss
Interest Shortfall; provided, however, that on the Class A-6 Cross-Over Date,
the balance of any amounts that would have been distributable on such date
pursuant to clauses (c), (d) and (e) of the term "Class A Formula Distribution
Amount" (assuming a sufficient Amount Available) but for the operation of the
proviso to such term shall instead be included in clause (c), (d) or (e) of this
definition, as

                                       11
<PAGE>

applicable; provided, further, that the aggregate of all amounts distributed for
all Distribution Dates pursuant to clauses (c), (d) and (e) shall not exceed the
Original Class M-1 Principal Balance.

      "Class M-1 Interest Deficiency Amount" means, as to the Class M-1
Certificates and any Distribution Date, the difference, if any, between (i) the
sum of the amounts described in clauses (a), (b), (f) and (g) of the definition
of the term "Class M-1 Formula Distribution Amount" and (ii) the amount
available for distribution to the Class M-1 Certificateholders pursuant to
Section 8.03(a)(4)(i) and (ii) and Section 8.03(a)(9)(iii) and (iv) on such
Distribution Date.

      "Class M-1 Interest Distribution Amount" means, as to any Distribution
Date, the amount specified in clause (a) of the definition of the term "Class
M-1 Formula Distribution Amount" plus the Unpaid Class M-1 Interest Shortfall,
if any.

      "Class M-1 Interest Shortfall" means, as to any Distribution Date, the
difference, if any, between (A) the sum of (i) the amount distributed to Holders
of the Class M-1 Certificates on such Distribution Date pursuant to Section
8.03(a)(4)(i) and (ii), and (ii) any amount distributed to the Holders of the
Class M-1 Certificates pursuant to Section 8.03(c) on such Distribution Date,
and (B) the Class M-1 Interest Distribution Amount for such Distribution Date.

      "Class M-1 Liquidation Loss Amount" means, as to any Distribution Date,
the lesser of (x) the amount, if any, by which the sum of the Class A Principal
Balance and the Class M-1 Principal Balance for such Distribution Date exceeds
the sum of the Pre-Funded Amount plus the Pool Principal Balance for such
Distribution Date (after giving effect to all distributions of principal on the
Class A and Class M-1 Certificates on such Distribution Date) and (y) the Class
M-1 Principal Balance (after giving effect to all distributions of principal on
the Class M-1 Certificates on such Distribution Date).

      "Class M-1 Liquidation Loss Interest Amount" means, as to any Distribution
Date, an amount equal to interest (calculated in the manner specified in Section
1.03) at the Class M-1 Pass-Through Rate on the Class M-1 Liquidation Loss
Amount (if any) for the immediately preceding Distribution Date.

      "Class M-1 Liquidation Loss Interest Shortfall" means, as to any
Distribution Date, the amount, if any, by which the amount distributed to
Holders of the Class M-1 Certificates on such Distribution Date pursuant to
Section 8.03(a)(9)(iii) is less than the Class M-1 Liquidation Loss Interest
Amount for such Distribution Date.

      "Class M-1 Pass-Through Rate" means the lesser of (a) [______]% per annum
and (b) the Weighted Average Net Asset Rate.

      "Class M-1 Percentage" means:

            (i)   as to any Distribution Date prior to the Class A-6 Cross-Over
                  Date and on which the Class M-1 Distribution Test is not
                  satisfied, 0%, and

            (ii)  as to any Distribution Date after the Class A-6 Cross-Over
                  Date or on which the Class M-1 Distribution Test is satisfied,
                  a fraction, expressed as

                                       12
<PAGE>

                  a percentage, the numerator of which is the Class M-1
                  Principal Balance and the denominator of which is the sum of
                  (a) the Class A Principal Balance, (b) the Class M-1 Principal
                  Balance, (c) if the Class M-2 Distribution Test is satisfied,
                  the Class M-2 Principal Balance, otherwise zero, and (d) if
                  the Class B Distribution Test is satisfied, the Class B
                  Principal Balance, otherwise zero.

      "Class M-1 Principal Balance" means, as to any Distribution Date, the
Original Class M-1 Principal Balance less all amounts previously distributed to
Holders of Class M-1 Certificates on account of principal.

      "Class M-1 Principal Shortfall" means, as to any Distribution Date, the
amount, if any, by which the amount distributed to Holders of Class M-1
Certificates on such Distribution Date pursuant to Sections 8.03(a)(9)(ii) is
less than the Class M-1 Percentage of the Formula Principal Distribution Amount
for such Distribution Date.

      "Class M-2 Adjusted Principal Balance" means, as to any Distribution Date,
the Class M-2 Principal Balance as of that Distribution Date minus the Class M-2
Liquidation Loss Amount (if any) as of the prior Distribution Date.

      "Class M-2 Certificate" means any one of the Class M-2 Certificates
executed and delivered by the Trustee substantially in the form set forth in
Exhibit B and evidencing an interest designated as a "regular interest" in the
Trust for the purposes of the REMIC Provisions.

      "Class M-2 Cross-Over Date" means the Distribution Date on which the Class
M-2 Principal Balance (after giving effect to the distributions of principal on
the Class M-2 Certificates on such Distribution Date) is reduced to zero.

      "Class M-2 Distribution Amount" means, as to any Distribution Date, the
lesser of (a) the Adjusted Amount Available less the sum of (i) any amounts paid
to the Trustee, the Backup Servicer and the Servicer pursuant to Section
8.03(a)(1) through (2), (ii) the Class A Distribution Amount, and (iii) the
Class M-1 Distribution Amount and (b) the Class M-2 Formula Distribution Amount
for such Distribution Date; provided, that after the Class M-2 Cross-Over Date
the Class M-2 Distribution Amount shall be zero.

      "Class M-2 Distribution Test" means, to be considered "satisfied" for any
Distribution Date, that (i) such Distribution Date occurs in or after
[_____________]; (ii) the Pool Performance Test is satisfied and (iii) the
fraction, expressed as a percentage, the numerator of which is the sum of the
Class M-2 Principal Balance, the Class B Principal Balance and the
Overcollateralization Amount as of such Distribution Date and the denominator of
which is the Pool Principal Balance as of the immediately preceding Distribution
Date, is equal to or greater than [________]%.

      "Class M-2 Formula Distribution Amount" means, as to any Distribution
Date, an amount equal to the sum of (a) interest (calculated in the manner
specified in Section 1.03) at the Class M-2 Pass-Through Rate on the Class M-2
Adjusted Principal Balance as of such Distribution Date, (b) the aggregate
Unpaid Class M-2 Interest Shortfall, if any, (c) the Class M-2 Percentage of the
Formula Principal Distribution Amount, (d) any Unpaid Class M-2

                                       13
<PAGE>

Principal Shortfall, (e) any Additional Principal Distribution Amount to be
distributed to the Class M-2 Certificates pursuant to Section 8.03(a)(13), (f)
any Class M-2 Liquidation Loss Interest Amount, and (g) any Unpaid Class M-2
Liquidation Loss Interest Shortfall; provided, however, that on the Class M-1
Cross-Over Date, the balance of any amounts that would have been distributable
on such date pursuant to clauses (c), (d) and (e) of the term "Class M-1 Formula
Distribution Amount" (assuming a sufficient Amount Available) but for the
operation of the proviso to such term shall instead be included in clause (c),
(d) or (e) of this definition, as applicable; provided, further, that the
aggregate of all amounts distributed for all Distribution Dates pursuant to
clauses (c), (d) and (e) shall not exceed the Original Class M-2 Principal
Balance.

      "Class M-2 Interest Deficiency Amount" means, as to the Class M-2
Certificates and any Distribution Date, the difference, if any, between (i) the
sum of the amounts described in clauses (a), (b), (f) and (g) of the definition
of the term "Class M-2 Formula Distribution Amount" and (ii) the amount
available for distribution to the Class M-2 Certificateholders pursuant to
Section 8.03(a)(5)(i) and (ii) and Section 8.03(a)(10)(iii) and (iv) on such
Distribution Date.

      "Class M-2 Interest Distribution Amount" means, as to any Distribution
Date, the amount specified in clause (a) of the definition of the term "Class
M-2 Formula Distribution Amount" plus the Unpaid Class M-2 Interest Shortfall,
if any.

      "Class M-2 Interest Shortfall" means, as to any Distribution Date, the
difference, if any, between (A) the sum of (i) the amount distributed to Holders
of the Class M-2 Certificates on such Distribution Date pursuant to Section
8.03(a)(5)(i) and (ii), and (ii) any amount distributed to the Holders of the
Class M-2 Certificates pursuant to Section 8.03(c) on such Distribution Date,
and (B) the Class M-2 Interest Distribution Amount for such Distribution Date.

      "Class M-2 Liquidation Loss Amount" means, as to any Distribution Date,
the lesser of (x) the amount, if any, by which the sum of the Class A Principal
Balance, the Class M-1 Principal Balance and the Class M-2 Principal Balance for
such Distribution Date exceeds the sum of the Pre-Funded Amount plus the Pool
Principal Balance for such Distribution Date (after giving effect to all
distributions of principal on the Class A, Class M-1 and Class M-2 Certificates
on such Distribution Date) and (y) the Class M-2 Principal Balance (after giving
effect to all distributions of principal on the Class M-2 Certificates on such
Distribution Date).

      "Class M-2 Liquidation Loss Interest Amount" means, as to any Distribution
Date, an amount equal to interest (calculated in the manner specified in Section
1.03) at the Class M-2 Pass-Through Rate on the Class M-2 Liquidation Loss
Amount (if any) for the immediately preceding Distribution Date.

      "Class M-2 Liquidation Loss Interest Shortfall" means, as to any
Distribution Date, the amount, if any, by which the amount distributed to
Holders of the Class M-2 Certificates on such Distribution Date pursuant to
Section 8.03(a)(10)(iii) is less than the Class M-2 Liquidation Loss Interest
Amount for such Distribution Date.

      "Class M-2 Pass-Through Rate" means, with respect to any Distribution
Date, the lesser of (a) [________]% per annum and (b) the Weighted Average Net
Asset Rate.

                                       14
<PAGE>

      "Class M-2 Percentage" means:

            (i)   as to any Distribution Date prior to the Class M-1 Cross-Over
                  Date and on which the Class M-2 Distribution Test is not
                  satisfied, 0%, and

            (ii)  as to any Distribution Date after the Class M-1 Cross-Over
                  Date or on which the Class M-2 Distribution Test is satisfied,
                  a fraction, expressed as a percentage, the numerator of which
                  is the Class M-2 Principal Balance and the denominator of
                  which is the sum of (a) the Class A Principal Balance, (b) the
                  Class M-1 Principal Balance, (c) the Class M-2 Principal
                  Balance, and (d) if the Class B Distribution Test is
                  satisfied, the Class B Principal Balance, otherwise zero.

      "Class M-2 Principal Balance" means, as to any Distribution Date, the
Original Class M-2 Principal Balance less all amounts previously distributed to
Holders of Class M-2 Certificates on account of principal.

      "Class M-2 Principal Shortfall" means, as to any Distribution Date, the
amount, if any, by which the amount distributed to Holders of Class M-2
Certificates on such Distribution Date pursuant to Section 8.03(a)(10)(ii) is
less than the Class M-2 Percentage of the Formula Principal Distribution Amount
for such Distribution Date.

      "Class Principal Balance" means, as to any Distribution Date and each
Class of Certificates, the Original Principal Balance of such Class less all
amounts previously distributed to Holders of such Class of Certificates on
account of principal.

      "Class R Certificate" means any one of the Class R Certificates executed
and delivered by the Trustee substantially in the form of Exhibit C-3 and
evidencing the "residual interest" in each of the Subsidiary REMIC and the
Master REMIC.

      "Class X Certificate" means any one of the Class X Certificates executed
and delivered by the Trustee substantially in the form set forth in Exhibit C-2
and evidencing an interest designated as a "regular interest" in the Trust for
the purposes of the REMIC provisions.

      "Class X Distribution Amount" means, with respect to any Distribution
Date, the sum of (a) (i) the product of the notional balance of the Class X
Certificates and its Pass-Through Rate as provided in the Preliminary Statement
plus (ii) any accrued but unpaid interest from prior Distribution Dates and, (b)
the amount, if any, of any Overcollateralization Release Amount for such
Distribution Date.

      "Closing Date" means [________].

      "Code" means the Internal Revenue Code of 1986, as amended.

      "Collateral Security" means, with respect to any Contract, (i) the
security interests granted by or on behalf of the related Obligor with respect
thereto, including a first priority perfected security interest in the related
Manufactured Home, (ii) all other security interests or liens and property
subject thereto from time to time purporting to secure payment of such

                                       15
<PAGE>

Contract, whether pursuant to the agreement giving rise to such Contract or
otherwise, together with all financing statements signed by the Obligor
describing any collateral securing such Contract, (iii) all guarantees,
insurance and other agreements or arrangements of whatever character from time
to time supporting or securing payment of such Contract whether pursuant to the
agreement giving rise to such Contract or otherwise, and (iv) all records in
respect of such Contract.

      "Collection Account" means the account established and maintained pursuant
to Section 5.05.

      "Computer Tape" means the computer tape generated by the Seller which
provides information relating to the Assets and which was used by the Seller in
selecting the Assets, and includes the master file and the history file.

      "Contract File" means, as to each Contract, other than a Land-and-Home
Contract, (a) the fully executed original copy of the Contract and security
agreement (if separate), and all modifications thereto, executed by the Obligor
evidencing indebtedness in connection with the purchase of a Manufactured Home,
assigned in blank by the Seller or the Originator (which may be by blanket
assignment), (b) the assignment of the Contract to the Seller or the Originator,
(c) the originals of all assumptions, modifications, consolidation or extension
agreements, if any, signed by the Obligor, with evidence of recording thereon,
if applicable, or copies thereof with a certification that such copy represents
a true and correct copy of the original and that such original has been
submitted for recordation, if applicable, in the appropriate governmental
recording office of the jurisdiction in which the Manufactured Home is located,
(d) either (i) the original title document for the related Manufactured Home or
(ii) a duplicate certified by the appropriate governmental authority which
issued the original thereof or the application for such title document, (e)
evidence of one or more of the following types of perfection of the security
interest in the related Manufactured Home granted by such Contract, as
appropriate: (i) notation of such security interest on the title document, (ii)
an original or copy of the UCC1 financing statements, certified as true and
correct by the Seller or the Originator and all necessary UCC3 continuation
statements with evidence of filing thereon or copies thereof certified by the
Seller or the Originator to have been sent for filing, and UCC3 assignments
executed by the Seller or the Originator in blank, which UCC3 assignments shall
be in form and substance acceptable for filing, or (iii) such other evidence of
perfection of a security interest in a manufactured housing unit as is
customarily relied upon in the jurisdiction in which the related Manufactured
Home is located, (f) an original notarized Obligor's power of attorney for each
Contract, signed by the Obligor, (g) insurance certificates or other evidence of
the issuance of insurance, (h) the original of any guarantee executed in
connection with the promissory note or Contract, if any, (i) the loan transfer
agreement, if any, and (j) evidence of any other collateral security, including
with respect to a Land-in-Lieu Contract, the mortgage or deed of trust, if any.

      "Contract Loan-to-Value Ratio" means, as to each Contract including retail
contracts sourced through dealers or brokers, Land-and-Home Contracts sourced
through dealers and correspondents, direct private sales and bulk purchases, a
fraction, the numerator of which is the principal balance of the contract (total
amount financed), and the denominator of which is the sum of the down payment
(the sum of cash, trade-in and land value) plus the principal balance of the
contract (amount financed).

                                       16
<PAGE>

      "Contract Rate" means, with respect to any particular Contract, the rate
of interest specified in that Contract and computed either on a "simple
interest" basis or a precomputed basis, as specified in the related Contract.

      "Contracts" means the manufactured housing installment sales contracts and
installment loan agreements, including any Land-and-Home Contracts, described in
the List of Contracts and constituting part of the corpus of the Trust, which
Contracts are to be assigned and conveyed by the Seller to the Depositor and by
the Depositor to the Trust, and includes, without limitation, all related
security interests and any and all rights to receive payments which are due
pursuant thereto after the applicable Cut-off Date, but excluding any rights to
receive payments which are due pursuant thereto on or before the applicable
Cut-off Date.

      "Corporate Trust Office" means the office of the Trustee at which at any
particular time its corporate trust business shall be principally administered,
which office at the date of the execution of this Agreement is located at the
address set forth in Section 12.08.

      "Custodian" means at any time the Trustee or a financial institution
organized under the laws of the United States or any State, which is subject to
supervision and examination by Federal or State authorities and which is not the
Seller or an Affiliate of the Seller, that is acting at such time as Custodian
of the Asset Files pursuant to Section 4.01.

      "Cut-off Date" means with respect to the Initial Assets, [______], and for
the Additional Assets, [______] and for the Subsequent Assets, the date
specified as such in the related Subsequent Transfer Instrument.

      "Cut-off Date Pool Principal Balance" means the aggregate of the Cut-off
Date Principal Balances of the Assets.

      "Cut-off Date Principal Balance" means, as to any Contract, the unpaid
principal balance thereof at the Cut-off Date, or Subsequent Cut-off Date if a
Subsequent Contract, after giving effect to all installments of principal
actually received by the Servicer during or prior to the related Due Period.

      "Defaulted Contract" means a Contract with respect to which the Servicer
commenced repossession or foreclosure procedures, made a sale of such Contract
to a third party for repossession, foreclosure or other enforcement, or as to
which there was a payment delinquent 180 or more days (excluding any Contract
deemed delinquent solely because the Obligor's required monthly payment was
reduced as a result of bankruptcy or similar proceedings).

      "Depositor" means Origen Residential Securities, Inc., a Delaware
corporation.

      "Depository" means the initial Depository, The Depository Trust Company,
the nominee of which is CEDE & CO., and any permitted successor depository. The
Depository shall at all times be a "clearing corporation" as defined in the
Uniform Commercial Code of the State of New York.

                                       17
<PAGE>

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

      "Determination Date" means the fourth Business Day preceding each
Distribution Date during the term of this Agreement.

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

      "Distributable Excess Spread" means, with respect to any Distribution
Date, the Amount Available remaining after payment of the amounts described in
clauses (1) through (11) of Section 8.03(a).

      "Distribution Account" means the account established and maintained
pursuant to Section 8.08.

      "Distribution Date" means the fifteenth day of each month during the term
of this Agreement, or if such day is not a Business Day, the next succeeding
Business Day, commencing [_________].

      "Due Date" means, as to any Asset, the date of the month on which the
scheduled monthly payment for such Asset is due.

      "Due Period" means with respect to any Distribution Date other than the
Distribution Date in [_________], the calendar month preceding such Distribution
Date, and with respect to the Distribution Date in [_________], the period from
and including the related Cut-off Date for the related Asset to and including
[_________].

      "Electronic Ledger" means the electronic master record of installment sale
contracts of the Seller.

      "Eligible Account" means, at any time, an account which is any of the
following: (i) an account maintained with an Eligible Institution; (ii) a trust
account (which shall be a "segregated trust account") maintained with the
corporate trust department of a federal or state chartered depository
institution or trust company with trust powers and acting in its fiduciary
capacity for the benefit of the Trustee hereunder, which depository institution
or trust company shall have capital and surplus (or, if such depository
institution or trust company is a subsidiary of a bank holding company system,
the bank holding company shall have capital and surplus) of not less than
$50,000,000 and the securities of such depository institution or trust company
(or, if such depository institution or trust company is a subsidiary of a bank
holding company system and

                                       18
<PAGE>

such depository institution's or trust company's securities are not rated, the
securities of the bank holding company) shall have a credit rating from each
Rating Agency in one of its generic credit rating categories which signifies
investment grade; or (iii) an account that will not cause either Rating Agency
to downgrade or withdraw their then-current ratings assigned to the
Certificates, as confirmed in writing by each Rating Agency.

      "Eligible Institution" means any depository institution (which may be the
Trustee or an Affiliate of the Trustee) organized under the laws of the United
States or any State, the deposits of which are insured to the full extent
permitted by law by the Bank Insurance Fund (currently administered by the
Federal Deposit Insurance Corporation), which is subject to supervision and
examination by federal or state authorities and whose short-term deposits have
been rated P-1 by Moody's (if rated by Moody's) A-1+ by S&P (if rated by S&P)
and F-1+ by Fitch (if rated by Fitch), or whose unsecured long-term debt has
been rated in one of the two highest rating categories by each Rating Agency in
the case of unsecured long-term debt.

      "Eligible Investments" are any of the following:

            (i)   direct obligations of, and obligations fully guaranteed by,
                  the United States of America, the Federal Home Loan Mortgage
                  Corporation, the Federal National Mortgage Association, 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 which are noncallable;

            (ii)  (A) demand and time deposits in, certificates of deposit of,
                  bankers' acceptances issued by, or federal funds sold by any
                  depository institution or trust company (including the Trustee
                  or any Affiliate of the Trustee, acting in its commercial
                  capacity) incorporated under the laws of the United States of
                  America or any State thereof and subject to supervision and
                  examination by federal and/or state authorities, so long as,
                  at the time of such investment or contractual commitment
                  providing for such investment, the commercial paper or other
                  short-term deposits of such depository institution or trust
                  company (or, in the case of a depository institution which is
                  the principal subsidiary of a holding company, the commercial
                  paper or other short-term debt obligations of such holding
                  company) are rated at least P-1 by Moody's, A-1 by S&P and at
                  least F-1 by Fitch (if rated by Fitch) and (B) any other
                  demand or time deposit or certificate of deposit which is
                  fully insured by the Federal Deposit Insurance Corporation;

            (iii) shares of an investment company registered under the
                  Investment Company Act of 1940, whose shares are registered
                  under the Securities Act of 1933 and have the highest credit
                  rating then available from each Rating Agency and whose only
                  investments are in securities described in clauses (i), (ii)
                  above and (iv) below;

                                       19
<PAGE>

           (iv)   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, in either case entered into with a
                  depository institution or trust company (acting as principal)
                  described in clause (ii)(A) above;

           (v)    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 which have a credit
                  rating at least in one of the two highest rating categories
                  from each Rating Agency at the time of such investment;
                  provided, however, that securities issued by any particular
                  corporation will not be Eligible Investments to the extent
                  that investment therein will cause the then outstanding
                  principal amount of securities issued by such corporation and
                  held as part of the corpus of the Trust to exceed 10% of
                  amounts held in the Collection Account;

           (vi)   commercial paper having a rating of at least P-1 from Moody's
                  (if rated by Moody's) at the time of such investment or pledge
                  as a security;

           (vii)  any other demand, money market or time deposit, demand
                  obligation or any other obligation, security or investment;
                  provided, that such obligation is rated by each Rating Agency
                  in its highest short-term unsecured debt ratings category and
                  such Rating Agency has confirmed in writing to the Servicer or
                  Trustee, as applicable, that such investment would not, in and
                  of itself, result in a downgrade, qualification or withdrawal
                  of the then current ratings assigned to the Certificates;

           (viii) units of money market funds rated in the highest applicable
                  rating category by each of the Rating Agencies, including any
                  such funds for which the Trustee, in its individual capacity,
                  or any of its affiliates receives compensation as
                  administrator, sponsor, agent or the like; and

           (ix)   such other investments the investment in which will not, as
                  evidenced by a letter from each of the Rating Agencies, result
                  in the downgrading or withdrawal of the Ratings of the
                  Certificates;

provided, that any such investment must constitute a "cash flow investment"
within the meaning of the REMIC Provisions.

      Notwithstanding the foregoing, securities that represent the right to
receive payments only of interest due on underlying obligations shall not be
included as Eligible Investments, whether or not such securities otherwise fall
within (i) through (ix) above.

      "Eligible Servicer" means Origen Servicing, Inc., Origen Financial L.L.C.,
[_________] or any Person qualified to act as Servicer of the Assets under
applicable federal and state laws and regulations, which Person services not
less than an aggregate of $50,000,000 in outstanding principal amount of
manufactured housing conditional sales contracts and installment loan
agreements.

                                       20
<PAGE>

      "Eligible Substitute Asset" means, as to any Replaced Asset for which such
Eligible Substitute Asset is being substituted pursuant to Section 3.06(b), an
Asset that (a) as of the date of its substitution, satisfies all of the
representations and warranties (which, except when expressly stated to be as of
origination, shall be deemed to be determined as of the date of its substitution
rather than as of the Cut-off Date or the Closing Date) in Sections 3.02 and
3.03 and does not cause any of the representations and warranties in Section
3.04, after giving effect to such substitution, to be incorrect, (b) after
giving effect to the scheduled payment due in the month of such substitution,
has a Principal Balance that is not greater than the Principal Balance of such
Replaced Asset, (c) has an Asset Rate that is at least equal to the Asset Rate
of such Replaced Asset, (d) has a remaining term to scheduled maturity that is
not greater than the remaining term to scheduled maturity of the Replaced Asset,
(e) is not an Ineligible Foreclosure Property Asset, and (f) is a Land-and-Home
Contract if the Replaced Asset is a Land-and-Home Contract and is otherwise
secured by a Manufactured Home that is similar in type and value to the
collateral serving the Replaced Asset. If more than one Asset is being
substituted pursuant to Section 3.06(b) for more than one Replaced Asset on a
particular date, then the conditions specified above shall be applied to the
Assets being substituted, in the aggregate, and the Replaced Assets, in the
aggregate.

      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

      "ERISA-Qualifying Underwriting" means a best efforts or firm commitment
underwriting or private placement that meets the requirements of an
Underwriter's Exemption.

      "ERISA-Restricted Certificate" means the Class X Certificates, the Class R
Certificates and any certificate that does not satisfy the applicable rating
requirement of the Underwriter's Exemption.

      "Errors and Omissions Protection Policy" means the employee errors and
omissions policy maintained by the Servicer or any similar replacement policy
covering errors and omissions by the Servicer's employees, and meeting the
requirements of Section 5.09, all as such policy relates to Assets comprising a
portion of the corpus of the Trust.

      "Event of Termination" has the meaning assigned in Section 7.01.

      "Excess Asset Payment" means with respect to any Asset, any portion of a
payment of principal and interest on such Asset, that (a) is in excess of the
Scheduled Payment (or is an integral multiple thereof and has not been
identified by the Obligor as a Principal Prepayment), (b) is not a Principal
Prepayment and (c) is not part of the Liquidation Proceeds of such Asset or the
Repurchase Price of such Asset paid pursuant to Section 3.06.

      "Fannie Mae" or "FNMA" means Fannie Mae a/k/a Federal National Mortgage
Association.

      "Fidelity Bond" means the fidelity bond maintained by the Servicer or any
similar replacement bond, meeting the requirements of Section 5.09, as such bond
relates to Assets comprising a portion of the corpus of the Trust.

                                       21
<PAGE>

      "Final Distribution Date" means the Distribution Date on which the final
distribution in respect of the Certificates will be made pursuant to Section
12.03.

      "Fitch" means Fitch, Inc., or any successor thereto; provided, that if
Fitch does not then have a rating outstanding on any of the Class A, Class M-1,
Class M-2 or Class B Certificates, then references herein to "Fitch" shall be
deemed to refer to the NRSRO then rating any Class of the Certificates (or, if
more than one such NRSRO is then rating any Class of the Certificates, to such
NRSRO as may be designated by the Servicer), and references herein to ratings by
or requirements of Fitch shall be deemed to have the equivalent meanings with
respect to ratings by or requirements of such NRSRO.

      "Formula Principal Distribution Amount" means, as of any Distribution
Date, the sum of:

            (i)   all scheduled payments of principal due and received on each
                  outstanding Contract during the related Due Period; plus

            (ii)  all Partial Principal Prepayments applied and all Principal
                  Prepayments in Full received during the related Due Period;
                  plus

            (iii) the aggregate Principal Balance of all Assets that became
                  Liquidated Assets during the related Due Period plus the
                  amount of any reduction in principal balance of any Contract
                  during the related Due Period pursuant to bankruptcy
                  proceedings involving the related Obligor; plus

            (iv)  the aggregate Principal Balance of all Assets repurchased
                  during the month preceding the related Due Period pursuant to
                  Section 3.06.

      "Freddie Mac" or FHLMC" means Federal Home Loan Mortgage Corporation.

      "Hazard Insurance Policy" means, with respect to each Asset, the policy of
fire and extended coverage insurance required to be maintained for the related
Manufactured Home or the related Mortgaged Property, as provided in Section
5.09, and which, as provided in said Section 5.09, may be a blanket mortgage
impairment policy maintained by the Servicer in accordance with the terms and
conditions of said Section 5.09.

      "Independent" means, when used with respect to any specified Person, any
Person who (i) is in fact independent of the Servicer and the Seller, (ii) does
not have any direct financial interest or any material indirect financial
interest in the Servicer, the Seller or in an Affiliate of either and (iii) is
not connected with the Servicer or the Seller as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions.
Whenever it is provided herein that any Independent Person's opinion or
certificate shall be furnished to the Trustee, such opinion or certificate shall
state that the signatory has read this definition and is Independent within the
meaning set forth herein.

      "Independent Contractor": Either (a) any Person (other than the Servicer)
that would be an "independent contractor" with respect to the Trust within the
meaning of Section 856(d)(3) of the Code if the Trust were a real estate
investment trust (except that, in applying that Section, more than 35% of the
outstanding principal balance of any Class shall be deemed to be more

                                       22
<PAGE>

than 35% of the certificates of beneficial interest of the Trust), so long as
the Trust does not receive or derive any income from such Person, the
relationship between such Person and the Trust is at arm's length and such
Person is not an employee of the REMIC, the Trustee or the Servicer, all within
the meaning of Treasury Regulation Section 1.856-4(b)(5), or (b) any other
Person (including the Servicer) upon receipt by the Trustee of an Opinion of
Counsel, the expense of which shall constitute a Servicing Advance if borne by
the Servicer, to the effect that the taking of any action in respect of any REO
Property by such Person, subject to any conditions therein specified, that is
otherwise herein contemplated to be taken by an Independent Contractor will not
cause such REO Property to cease to qualify as "foreclosure property" within the
meaning of Section 860G(a)(8) of the Code (determined without regard to the
exception applicable for purposes of Section 860D(a) of the Code), or cause any
income realized in respect of such REO Property to fail to qualify as Rents from
Real Property.

      "Ineligible Foreclosure Property Asset" means any Asset listed on the
Ineligible Foreclosure Property Asset Schedule as of the Closing Date and for
which there is no written agreement modifying such Obligor's obligation to make
payments under the Asset.

      "Ineligible Foreclosure Property Asset Schedule" means a schedule,
attached hereto as Exhibit U of Ineligible Foreclosure Property Assets to be
prepared by Origen Financial L.L.C. within 15 days of the Closing Date.

      "Initial Assets" means Initial Contracts or Initial Mortgage Loans.

      "Initial Contracts" means certain Contracts identified in the List of
Contracts delivered pursuant to Section 2.02(a), all of which were originated on
or before [______________], and which have an aggregate principal balance as of
the Cut-off Date of approximately $[____________].

      "Initial Mortgage Loans" means certain Mortgage Loans identified in the
Mortgage Loan Schedule pursuant to Section 2.02(a), all of which were originated
on or before [__________], and which have an aggregate principal balance of the
Cut-off Date of approximately [__________].

      "Insurance Proceeds" means proceeds paid by any insurer pursuant to any
insurance policy or contract.

      "Land-and-Home Contract" means a Contract that is secured by a Mortgage on
real estate on which the related Manufactured Home is situated, and which
Manufactured Home is considered or classified as part of the real estate under
the laws of the jurisdiction in which it is located.

      "Land-and-Home Contract File" means, as to each Land-and-Home Contract,
(a) the fully executed original copy of the Land-and-Home Contract and security
agreement (if separate), and all modifications thereto, executed by the Obligor
evidencing indebtedness in connection with the purchase of a Manufactured Home,
assigned in blank by the Seller or the Originator; (b) the original related
Mortgage with evidence of recording thereon (or, if the original Mortgage has
not yet been returned by the applicable recording office, a copy thereof,
certified by such recording office, which will be replaced by the original
Mortgage when it is so

                                       23
<PAGE>

returned) and any title policy, commitment or other title document for the
related Manufactured Home; (c) the assignment of the Land-and-Home Contract and
the related Mortgage from the originator to the Seller or the Originator; (d) an
endorsement of such Land-and-Home Contract by the Seller or the Originator to
the Trustee or in blank; (e) an Assignment of the related Mortgage to the
Trustee or in blank; and (f) the originals of all assumptions, modifications,
consolidation or extension agreements, if any, signed by the Obligor, with
evidence of recording thereon, if applicable, or copies thereof with a
certification that such copy represents a true and correct copy of the original
and that such original has been submitted for recordation in the appropriate
governmental recording office of the jurisdiction in which the Manufactured Home
is located.

      "Land-in-Lieu Contract" means a Contract that is secured by (i) a security
interest in a Manufactured Home and (ii) a mortgage or deed of trust on real
estate on which such Manufactured Home is situated, but such Manufactured Home
is not considered or classified as part of the real estate under the laws of the
jurisdiction in which it is located.

      "Liquidated Asset" means any Defaulted Contract or defaulted Mortgage Loan
as to which the Servicer has determined that all amounts which it expects to
recover from or on account of such Asset have been recovered; provided, that any
Defaulted Asset or defaulted Mortgage Loan in respect of which the related
Manufactured Home, Mortgaged Property, have been realized upon and disposed of
and the proceeds of such disposition have been received shall be deemed to be a
Liquidated Asset.

      "Liquidation Expenses" means out-of-pocket expenses (exclusive of any
overhead expenses) which are incurred by the Servicer in connection with the
liquidation of any defaulted Contract or defaulted Mortgage Loan or disposition
of any related Repo Property or REO Property and any unreimbursed Monthly
Advances with respect thereto, on or prior to the date on which the related
Manufactured Home and, in the case of Land-and-Home Contracts, Mortgaged
Property, are disposed of, including, without limitation, legal fees and
bankruptcy expenses, and any related and unreimbursed expenditures for property
taxes, property preservation or restoration of the property to marketable
condition or preparation of the related REO Property for sale and sales
commissions paid in connection with the related Manufactured Home or Mortgaged
Property.

      "Liquidation Proceeds" means cash (including Insurance Proceeds) received
in connection with the liquidation of Defaulted Contracts or defaulted Mortgage
Loans, whether through repossession, foreclosure sale or otherwise, including
any rental income realized from the repossessed Manufactured Home.

      "List of Contracts" means the lists identifying each Contract constituting
part of the corpus of the Trust, and which lists are either delivered pursuant
to Section 2.02(a) of this Agreement or attached to a Subsequent Transfer
Instrument as Exhibit A, as such lists may be amended from time to time pursuant
to Section 3.06(b) to add Eligible Substitute Assets and delete Replaced Assets.
Each List of Contracts shall set forth as to each Contract identified on it (i)
the Cut-off Date Principal Balance, (ii) the amount of monthly payments due from
the Obligor, (iii) the Contract Rate and (iv) the maturity date.

                                       24
<PAGE>

      "Loan-to-Value Ratio" means the Contract Loan-to-Value Ratio or the
Mortgage Loan-to Value Ratio.

      "Manufactured Home" means a unit of manufactured housing, including all
accessions thereto, securing the indebtedness of the Obligor under the related
Contract or constituting a portion of the Mortgaged Property in incurring the
indebtedness of the Obligor under any Mortgage Loan.

      "Master REMIC" has the definition set forth in the Preliminary Statement.

      "Maturity Date" means, as to any Certificate, other than a Class R
Certificate, the latest possible maturity date for purposes of complying with
the REMIC Provisions governing "regular interests."

      "Monthly Advance" means, as to any Distribution Date, with respect to any
Scheduled Payment due during the related Due Period and not received by the
related Determination Date, an amount equal to (i) for simple interest Assets,
30 days interest on the outstanding principal balance on the related Due Date
and (ii) for actuarial Assets, the interest portion of such Scheduled Payment,
exclusive of any portion thereof that the Servicer has determined would be a
Nonrecoverable Advance if an advance in respect to such amount were made.

      "Monthly Report" has the meaning assigned in Section 6.01.

      "Monthly Servicing Fee" means, as of any Distribution Date, one-twelfth of
the product of [1.25]% and the Pool Principal Balance for the immediately
preceding Distribution Date (or, with respect to the first Distribution Date,
the Cut-off Date Pool Principal Balance as of the Closing Date).

      "Moody's" means Moody's Investors Service, Inc., or any successor thereto;
provided, that, if Moody's provided a rating on any of the Certificates, as
required by Section 2.02, and does not as of any subsequent date have a rating
outstanding on any of the Class A, Class M-1, Class M-2 or Class B Certificates,
then references herein to "Moody's" shall be deemed to refer to the NRSRO then
rating any Class of the Certificates (or, if more than one such NRSRO is then
rating any Class of the Certificates, to such NRSRO as may be designated by the
Servicer), and references herein to ratings by or requirements of Moody's shall
be deemed to have the equivalent meanings with respect to ratings by or
requirements of such NRSRO.

      "Mortgage" means the mortgage, deed of trust, security deed or similar
evidence of lien, creating a first lien on an estate in fee simple in the real
property securing a Land-and-Home Contract or a Mortgage Loan, as applicable.

      "Mortgage Insurer": The insurance company or companies which issue any
Primary Mortgage Insurance Policies with respect to any Mortgage Loans.

      "Mortgage Loan": A mortgage loan (not including any Land-and-Home
Contract) secured by a first lien on a one-to-four-family residential real
property.

                                       25
<PAGE>

      "Mortgage Loan Documents": With respect to each Mortgage Loan, the
following documents:

      (a)   the original Mortgage Note bearing a complete chain of endorsements,
if necessary, from the initial payee thereunder to the Seller or the Originator,
with a further endorsement without recourse from the Seller or the Originator in
blank or to the Trustee or its Custodian, in a form specified in the related
Asset Purchase Agreement, together with all related riders and addenda and any
related surety or guaranty agreement, power of attorney and buydown agreement;

      (b)   the original recorded Mortgage (or a copy thereof certified to be a
true and correct reproduction of the original thereof by the appropriate public
recording office) with evidence of recordation noted thereon or attached
thereto, or, if the Mortgage is in the process of being recorded, a photocopy of
the Mortgage, certified by an officer of the related Seller, the Originator or
the loan originator, the related title insurance company, the related
closing/settlement/escrow agent or the related closing attorney to be a true and
correct copy of the Mortgage submitted for recordation;

      (c)   the original recorded Assignment of the Mortgage from the related
Seller or the Originator to the Trustee or its Custodian, in a form specified in
the related Asset Purchase Agreement (or a copy thereof certified to be a true
and correct reproduction of the original thereof by the appropriate public
recording office) with evidence of recordation noted thereon or attached
thereto, or, if the Assignment is in the process of being recorded, a photocopy
of the Assignment, certified by an officer of the Seller or the Originator to be
a true and correct copy of the Assignment submitted for recordation;

      (d)   each original recorded intervening Assignment of the Mortgage as is
necessary to show a complete chain of title from the initial mortgagee (or
beneficiary, in the case of a deed of trust) to the related Seller or the
Originator (or a copy of each such assignment certified to be a true and correct
reproduction of the original thereof by the appropriate public recording office)
with evidence of recordation noted thereon or attached thereto, or, if an
assignment is in the process of being recorded, a photocopy of the assignment,
certified by an officer of the Seller or the Originator to be a true and correct
copy of the assignment submitted for recordation;

      (e)   an original Title Insurance Policy or, if such policy has not yet
been issued or is otherwise not available, (1) a written commitment to issue
such policy issued by the applicable title insurance company and an officer's
certificate of the related Seller or the Originator certifying that all of the
requirements specified in such commitment have been satisfied, (2) a preliminary
title report if the related Mortgaged Property is located in a state in which
preliminary title reports are acceptable evidence of title insurance, (3) a
certificate of an officer of the Seller or the Originator certifying that a
Title Insurance Policy is in full force and effect as to the related Mortgage
and that such Title Insurance Policy is freely assignable to and will inure to
the benefit of the Trustee (subject to recordation of the related Assignment of
Mortgage) or (4) an Opinion of Counsel with respect to the title of the related
Mortgaged Property;

      (f)   for each Mortgage Loan identified in the related Agreement as having
in place a Primary Mortgage Insurance Policy, a Primary Mortgage Insurance
Policy or a certificate of

                                       26
<PAGE>

primary mortgage insurance issued by the related Mortgage Insurer or its agent
indicating that such a policy is in effect as to such Mortgage Loan or, if
neither a policy nor a certificate of insurance from the related Mortgage
Insurer is available, a certificate of an officer of the related Seller or the
Originator certifying that a Primary Mortgage Insurance Policy is in effect as
to such Mortgage Loan;

      (g)   each related assumption agreement, modification, written assurance
or substitution agreement, if any; and

      (c)   proof of the maintenance of a Hazard Insurance Policy (and a flood
insurance policy, if applicable) as to the related Mortgaged Property.

      "Mortgage Loan-to-Value Ratio" means, as to a Mortgage Loan, the ratio,
expressed as a percentage, of the principal amount of such Mortgage Loan at the
time of determination, to either (i) the sum of the appraised value of the land
and improvements, and the amount of any prepaid finance charges or closing costs
that are financed or (ii) the sum of the purchase price of the home (including
taxes, insurance and any land improvements), the appraised value of the land and
the amount of any prepaid finance charges or closing costs that are financed.

      "Mortgage Loan Schedule" means the list attached to the Agreement
identifying each Mortgage Loan assigned thereunder (which may be presented
together with any related List of Contracts in a single Asset Schedule), which
list shall (a) identify each Mortgage Loan and (b) set forth (or describe the
method of determining) as to each such Mortgage loan (1) the Cut-off Date
Principal Balance thereof, (2) the amount of each Monthly Payment, (3) the
Mortgage Rate thereof, (4) the original term to maturity thereof, (5) the date
of origination thereof, (6) the original Mortgage Loan-to-Value Ratio thereof,
(7) the state in which the related Mortgaged Property is located, and (8) any
other information as may be reasonably requested by the Trustee prior to the
Closing Date.

      "Mortgage Note" means a manually executed written instrument evidencing a
Obligor's promise to repay a stated sum of money, plus interest, to the holder
of such instrument on or before a specific date according to a schedule of
principal and interest payments.

      "Mortgage Rate" means, with respect to each Mortgage Loan, the interest
rate specified in the related Mortgage Note.

      "Mortgaged Property" means the property subject to the lien of a Mortgage.

      "Net Liquidation Loss" means, as to a Liquidated Contract, the amount, if
any, by which (a) the outstanding principal balance of such Liquidated Contract
plus accrued and unpaid interest thereon to the date on which such Liquidated
Contract became a Liquidated Contract exceeds (b) the Net Liquidation Proceeds
for such Liquidated Contract.

      "Net Liquidation Proceeds" means, as to a Liquidated Contract, all
Liquidation Proceeds received on or prior to the last day of the month in which
such Contract became a Liquidated Contract, net of Liquidation Expenses.

                                       27
<PAGE>

      "New Lease" means any lease of REO Property entered into on behalf of the
Trust, including any lease renewed, modified or extended on behalf of the Trust
(if the Trustee, or the Servicer or its agent, has the right to renegotiate the
terms of such lease).

      "Nonrecoverable Advance" means any Servicing Advance which is not
recovered, or which the Servicer reasonably believes will not be recovered, by
the Servicer from late collections from the Obligor of the items advanced, or
from Liquidation Proceeds on the related Asset, and any Servicing Advances
incurred by the Servicer in connection with a delinquent or defaulted Asset
which is subsequently reinstated, worked out, or otherwise cured. In determining
whether an advance is or will be nonrecoverable, the Servicer need not take into
account that it might receive any amounts in a deficiency judgment. The
determination by the Servicer that any advance is, or if made would constitute,
a Nonrecoverable Advance, shall be evidenced by a certificate of a Servicing
Officer of the Servicer delivered to the Trustee stating the reasons for such
determination.

      "NRSRO" means any nationally recognized statistical rating organization.

      "Obligor" means each Person who is indebted under a Contract or a Mortgage
Loan.

      "Officer's Certificate" means a certificate signed by the Chairman of the
Board, President, Treasurer, Assistant Treasurer, Secretary, any Assistant
Secretary, or any Vice President of the Seller and delivered to the Trustee.

      "Opinion of Counsel" means a written opinion of counsel, who may, except
as expressly provided herein, be salaried counsel for the Seller, acceptable to
the Trustee and the Seller; provided, that any opinion of counsel relating to
the qualification of the Subsidiary REMIC or the Master REMIC as a REMIC or
compliance with the REMIC Provisions must be an opinion of Independent counsel.

      "Optional Termination Date" means the first Distribution Date on which the
Pool Principal Balance is equal to or less than 10% of the sum of the Cut-off
Date Pool Principal Balance and the Original Pre-Funded Amount.

      "Original Class A Principal Balance" means the Original Principal Balance
of the Class A Certificates.

      "Original Pre-Funded Amount" means $[_________________] (the excess of the
aggregate Class Principal Balance of the Certificates on the Closing Date over
the Cut-Off Date Pool Principal Balance).

      "Original Principal Balance" means as to each Class of Regular
Certificates, the amount set forth with respect to such Class in Section
2.05(b).

      "Outstanding" means with respect to any Asset as to the time of reference
thereto, an Asset that has not been fully prepaid, has not become a Liquidated
Asset and has not been purchased pursuant to Section 3.06 prior to the time of
reference.

                                       28
<PAGE>

      "Outstanding Amount Advanced" means as to any Distribution Date, the
aggregate of all Servicing Advances less the aggregate of all amounts actually
received by the Servicer prior to such Distribution Date in reimbursement for
any Servicing Advances.

      "Overcollateralization Amount" means, as of any Distribution Date, the
excess, if any, of the sum of the Pool Principal Balance [and the Pre-Funded
Amount, if any], at the end of the related Due Period over the aggregate Class
Principal Balance of the Certificates for such Distribution Date after giving
effect to distributions pursuant to Section 8.03(a)(1) through (11) on such
Distribution Date. For purposes of the Electronic File only, the term
Overcollateralization Amount shall be the excess, if any, of the sum of the Pool
Principal Balance and the Pre-Funded Amount, if any, at the end of the related
Due Period over the aggregate Class Principal Balance of the Certificates for
such Distribution Date after giving effect to distributions to
Certificateholders on such Distribution Date.

      "Overcollateralization Deficiency Amount" means, with respect to any
Distribution Date, the amount by which the Targeted Overcollateralization Amount
exceeds the Overcollateralization Amount, in each case, for such Distribution
Date.

      "Overcollateralization Release Amount" means the amount, if any, by which
the Overcollateralization Amount exceeds the Targeted Overcollateralization
Amount for that Distribution Date.

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

      "Partial Principal Prepayment" means (a) any Principal Prepayment other
than a Principal Prepayment in Full and (b) any cash amount deposited in the
Collection Account pursuant to the provision in Section 3.06(a) or pursuant to
Section 3.06(b).

      "Pass-Through Rate" means with respect to each Class of Certificates, the
rate set forth for such Class in Section 2.05(b).

      "Paying Agent" has the meaning assigned in Section 8.01(c).

      "Percentage Interest" means, as to any Certificate, the percentage
interest evidenced thereby in distributions made on the related Class, such
percentage interest being equal to, in the case of the Class A, Class M-1, Class
M-2, and Class B Certificates, the percentage (carried to eight places) obtained
from dividing the denomination of such Certificate by the Original Principal
Balance of the related Class; and in the case of the Class R and Class X
Certificates, the percentage specified on the face of such Certificate. The
aggregate Percentage Interests for each Class of Certificates shall equal 100%,
respectively.

      "Permitted Transferee" means any Person other than (i) the United States,
any State or any political subdivision thereof or any agency or instrumentality
of any of the foregoing, (ii) a foreign government, international organization
or any agency or instrumentality of either of the foregoing, (iii) an
organization which is exempt from tax imposed by Chapter 1 of the Code
(including the tax imposed by section 511 of the Code on unrelated business
taxable income)

                                       29
<PAGE>

(except certain farmers' cooperatives described in Code section 521) on any
excess inclusions (as defined in Section 860E(c)(1)) with respect to any Class R
Certificate, (iv) rural electric and telephone cooperatives described in Code
section 1381(a)(2)(C), (v) a Person that is not a citizen or resident of the
United States, a corporation, partnership or other entity created or organized
in or under the laws of the United States, any state thereof or the District of
Columbia, or an estate whose income from sources without the United States is
includible in gross income for United States federal income tax purposes
regardless of its connection with the conduct of a trade or business within the
United States, or a trust if a court within the United States is able to
exercise primary supervision over the administration of the trust and one or
more United States Persons have the authority to control all substantial
decisions of the trust, (vi) an "electing large partnership" within the meaning
of Section 775 of the Code, and (vii) any other Person so designated by the
Trustee based on an Opinion of Counsel to the effect that any transfer to such
Person may cause the Trust to fail to qualify as a REMIC at any time the
Certificates are outstanding. The terms "United States", "State" and
"international organization" shall have the meanings set forth in Code section
7701 or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof if all of its activities are subject to tax and, with the exception of
the Freddie Mac, a majority of its board of directors is not selected by such
governmental unit.

      "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.

      "Pool Factor" means, at any time, the percentage derived from a fraction,
the numerator of which is the aggregate Principal Balance of each Class of
Certificates at such time and the denominator of which is the sum of the Cut-off
Date Pool Principal Balance [and the Original Pre-Funded Amount], less the
initial Overcollateralization Amount.

      "Pool Principal Balance" means, as of any Distribution Date, the aggregate
Principal Balance of all Assets that were outstanding during the related Due
Period.

      ["Post-Funding Distribution Date" means the first Distribution Date after
the last day of the Pre-Funding Period.

      "Pre-Funded Amount" means with respect to any date of determination, the
amount then on deposit in the Pre-Funding Account, after giving effect to any
sale of Subsequent Assets to the Trust on such date, excluding any investment
earnings.

      "Pre-Funding Account" means the account so designated, established and
maintained pursuant to Section 8.07.

      "Pre-Funding Period" means the period beginning on the Closing Date and
ending on the earliest of (a) the date on which the amount on deposit in the
Pre-Funding Account is less than $10,000 or (b) the date on which an Event of
Termination occurs or (c) [___________].

      "Pre-Funding Subaccount" means the subaccount, if any, so designated,
established and maintained pursuant to Section 8.07.]

                                       30
<PAGE>

      "Primary Mortgage Insurance": The insurance provided under any Primary
Mortgage Insurance Policy.

      "Primary Mortgage Insurance Policy": A primary mortgage insurance policy,
if applicable, covering certain conventional Mortgage Loans for which the
initial Mortgage Loan-to-Value Ratios exceeded 80%.

      "Principal Balance" means, as to any Asset and any Distribution Date, or
the Cut-off Date or the Subsequent Cut-off Date, as applicable, the related
Cut-off Date Principal Balance, minus all collections credited against the
Principal Balance of such Asset. For purposes of this definition, a Liquidated
Asset shall be deemed to have a Principal Balance equal to the Principal Balance
of the related Asset immediately prior to the final recovery of related
Liquidation Proceeds and a Principal Balance of zero thereafter.

      "Principal Prepayment" means a payment or other recovery of principal
which is received in advance of its Due Date and applied upon receipt (or, in
the case of a Partial Principal Prepayment, upon the next scheduled payment date
on such Asset) to reduce the outstanding principal amount due on such Asset
prior to the date or dates on which such principal amount is due.

      "Principal Prepayment in Full" means any Principal Prepayment of the
entire principal balance of an Asset.

      "Rating Agencies" means ____________________________________.

      "Realized Losses" means, as to any Distribution Date, the aggregate Net
Liquidation Losses of all Assets that became Liquidated Assets during the
immediately preceding month.

      "Record Date" means the Business Day immediately preceding the related
Distribution Date; provided, however, that for any Class of Certificates not
held through the Depository, the Record Date will be the last Business Day of
the month immediately preceding the related Distribution Date.

      "Regular Certificate" means a Class A, Class M, Class B or Class X
Certificate.

      "REMIC" means a "real estate mortgage investment conduit" as defined in
Section 860D of the Code.

      "REMIC 1" as defined in the Preliminary Statement.

      "REMIC 2" as defined in the Preliminary Statement.

      "REMIC Change of Law" means any proposed, temporary or final regulation,
revenue ruling, revenue procedure or other official announcement or
interpretation relating to REMICs and the REMIC Provisions issued after the
Closing Date.

      "REMIC Loan-to-Value Ratio" means the quotient, expressed as a percentage,
obtained by dividing (a) the original unpaid principal balance of an Asset, by
(b) the fair market value of

                                       31
<PAGE>

the Manufactured Home or Mortgaged Property that secures such Asset minus the
full amount of any other indebtedness secured by the related Manufactured Home
or Mortgaged Property which is senior to such Asset or a pro rata portion of any
other indebtedness secured by the related Manufactured Home or Mortgaged
Property that is in parity with such Asset.

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

      "Rents From Real Property" means with respect to any REO Property, gross
income of the character described in Code section 856(d) and Treasury
regulations thereunder.

      "REO Property" means a Mortgaged Property acquired by the Servicer on
behalf of the Certificateholders through foreclosure or deed-in-lieu of
foreclosure, as further described in Section 5.11 hereof.

      "REO Property Disposition": The receipt by the Servicer of Insurance
Proceeds and other payments and recoveries (including Liquidation Proceeds)
which the Servicer recovers from the sale or other disposition of an REO
Property.

      "Replaced Asset" has the meaning assigned in Section 3.06(b).

      "Repo Property": A Manufactured Home (and any related Real Property)
acquired by the Servicer on behalf of the Trust pursuant to a repossession,
foreclosure, or similar proceeding in connection with a Defaulted Contract.

      "Repurchase Price" means, with respect to an Asset to be repurchased
pursuant to Section 3.06, an amount equal to (a) the remaining principal amount
outstanding on such Asset, plus (b) interest at the Asset Rate on such Contract
from the end of the Due Period with respect to which the Obligor last made a
payment through the end of the immediately preceding Due Period.

      "RESPA" means the Real Estate Settlement Procedures Act of 1974, as
amended.

      "Responsible Officer" means, with respect to the Trustee, the chairman and
any vice chairman of the board of directors, the president, the chairman and
vice chairman of any executive committee of the board of directors, every vice
president, assistant vice president, the secretary, every assistant secretary,
cashier or any assistant cashier, controller or assistant controller, the
treasurer, every assistant treasurer, every trust officer, assistant trust
officer and every other officer or assistant officer of the Trustee customarily
performing functions similar to those performed by persons who at the time shall
be such officers, respectively, or to whom a corporate trust matter is referred
because of knowledge of, familiarity with, and authority to act with respect to
a particular matter.

      "Responsible Party" has the meaning assigned to such term in Section
3.06(a).

                                       32
<PAGE>

      "Sarbanes-Oxley Certification" has the meaning assigned in Section
6.07(b).

      "Scheduled Payment" means, as to any Due Period and each Asset, the
scheduled monthly payment of principal and/or interest required to be made by an
Obligor on the related Asset.

      "Servicer" means Origen Servicing, Inc. until any Service Transfer
hereunder and thereafter means the new servicer appointed pursuant to Article
VII.

      "Servicer Certification" has the meaning assigned in Section 6.07(c)
hereof.

      "Servicer Mortgage Loan File" means as to each Mortgage Loan, a file
maintained by the Servicer that contains (1) an original Hazard Insurance Policy
(and flood insurance policy, if required pursuant to this Agreement) relating to
the underlying Mortgaged Property or a certificate of insurance issued by the
insurer or its agent indicating that a Hazard Insurance Policy (and a flood
insurance policy, if required pursuant to this Agreement) is in effect with
respect to such Mortgaged Property, (2) originals or copies of all documents
submitted to a Mortgage Insurer for credit and property underwriting approval,
(3) the originals of all RESPA and Regulation Z disclosure statements executed
by the related Obligors, (4) the appraisal report made in connection with the
origination of the Mortgage Loan, (5) the settlement statement for the purchase
and/or refinancing of the underlying Mortgaged Property by the related Obligor
under the related Mortgage Note and Mortgage, (6) the originals of any tax
service contracts, (7) documentation relating to any approvals by the Servicer
of any modifications of the original related Mortgage Loan Documents and any
releases of collateral supporting the related Mortgage Loan, together with
copies of the documentation effecting any such modifications or releases, (8)
collection notices or form notices sent to the related Obligor, (9) foreclosure
correspondence and legal notifications, if applicable, (10) water and irrigation
company stock certificates, if applicable, and (11) all other documents relating
to such Mortgage Loan which would customarily be maintained in a mortgage loan
file by the Servicer in order to service the mortgage loan properly, as well as
any other documents relating to such Mortgage Loan (other than Mortgage Loan
Documents) that come into the Servicer's possession.

      "Service Transfer" has the meaning assigned in Section 7.02.

      "Servicing Advance" means advances made by the Servicer as liquidation
expenses, delinquent tax and insurance advances, property protection expenses
and similar items required under this Agreement.

      "Servicing Officer" means any officer of the Servicer involved in, or
responsible for, the administration and servicing of Assets whose name appears
on a list of servicing officers appearing in an Officer's Certificate furnished
to the Trustee by the Servicer, as the same may be amended from time to time.

         "Shortfall" means any Due Date Interest Shortfall and Soldiers' and
Sailors Shortfall.

      "Soldiers' and Sailors' Shortfall" means interest losses on a Contract or
Mortgage Loan resulting from application of the Soldiers' and Sailors' Civil
Relief Act of 1940.

                                       33
<PAGE>

      "Staged Funded Loan" means a Land-and-Home Contract or Mortgage Loan that
has not been fully funded and for which the unfunded amount of the original
Principal Balance is scheduled to be funded at interim periods during the
acquisition of the related real estate and Manufactured Home or Mortgaged
Property and the conversion of the interim funding to a permanent loan.

      "Startup Day" means the Startup Day (within the meaning of Code section
860G(a)(9)) is the Closing Date.

      "Subsequent Asset" means a Subsequent Contract or Subsequent Mortgage
Loan.

      "Subsequent Contract" means a Contract sold by the Seller to the Trust
pursuant to Section 2.03, such Contract being identified on Exhibit A attached
to a Subsequent Transfer Instrument.

      "Subsequent Cut-off Date" means, with respect to a Subsequent Asset, day
specified as such in the related Subsequent Transfer Instrument.

      "Subsequent Mortgage Loan" means a Mortgage Loan sold by the Seller to the
Trust pursuant to Section 2.03, such Mortgage Loan being identified on Exhibit A
attached to a Subsequent Transfer Instrument.

      "Subsequent Transfer Date" means, with respect to each Subsequent Transfer
Instrument, the date on which the related Subsequent Assets are sold to the
Trust.

      "Subsequent Transfer Instrument" means each Subsequent Transfer Instrument
dated as of a Subsequent Transfer Date executed by the Seller substantially in
the form of Exhibit P, by which the Seller sells Subsequent Assets to the Trust.

      "Subsidiary REMIC" has the meaning set forth in the Preliminary Statement.

      "Targeted Overcollateralization Amount" means, with respect to any
Distribution Date, the product of (a) [_______]% and (b) the sum of the Cut-off
Date Pool Principal Balance and the Original Pre-Funded Amount.

      "Tax Matters Person" means the person designated as "tax matters person"
in the manner provided under Treasury regulation Section 1.860F-4(d) and
temporary Treasury regulation Section 301.6231(a)(7)1T. Initially, the Tax
Matters Person shall be the Class R Certificateholder.

      "Tax Matters Person Certificate" means the Class R Certificate with a
Denomination of .00001%.

      "Title Insurance Policy" means, as to any Mortgage Loan, an American Land
Title Association mortgagee's mortgage loan title policy form 1970, or other
form of mortgagee's title insurance acceptable to FNMA or FHLMC for the
jurisdiction in which the subject property is located, including all riders and
endorsements thereto, insuring that the related Mortgage creates a valid first
lien on the underlying Mortgaged Property subject only to Permitted
Encumbrances.

                                       34
<PAGE>

      "Transfer Agreement" means that certain Asset Purchase Agreement between
the Depositor, as purchaser, and the Seller, as seller, dated as of
[____________].

      "Trust" means the trust created by this Agreement, known as Origen
Residential Pass-Through Certificates Trust, Series 200[__] - [__], the corpus
of which consists of (1) all the right, title and interest of the Depositor in
and to the Assets, including without limitation, all right, title and interest
in and to the Collateral Security, all rights receive payments on or with
respect to the Assets and all rights of the Depositor under the Transfer
Agreement, (2) all rights under any Hazard Insurance Policy relating to a
Manufactured Home or Mortgaged Property securing an Asset for the benefit of the
creditor of such Asset, (3) proceeds from the Errors and Omissions Protection
Policy and all rights under any blanket hazard insurance policy to the extent
such proceeds relate to any Manufactured Home or Mortgaged Property, (4) all
documents contained in the Mortgage Loan Files, Contract Files or the
Land-and-Home Contract Files subject to the exceptions set forth on Schedule A
to Exhibit H or this Agreement, and (5) the Pre-Funding Account and (6) all
proceeds and products in any way derived from any of the foregoing.

      "Trust Estate" means the assets of the Trust.

      "Trustee Fee" means an amount payable monthly from payments on the Assets
allocable to interest which will accrue at the Trustee Fee Rate, calculated on
the basis of a 360-day year consisting of twelve 30-day months, and computed on
the basis of the same principal amount for the same period as any related
interest payment on the Assets is computed.

      "Trustee Fee Rate" means [___________]% per annum.

      "Trustee Mortgage Loan File": means, with respect to any Mortgage Loan, a
file containing all of the related Mortgage Loan Documents.

      "Trustee Reimbursement Account" means the account established pursuant to
Section 8.09 hereof.

      "Undelivered Asset" means as of any date of determination an Initial or
Additional Contract identified, on the exception report attached to the
Acknowledgment delivered by the Trustee under Section 2.04, as a Land-and-Home
Contract as to which the Trustee did not receive the related Land-and-Home
Contract File as of the Closing Date and has not received the related
Land-and-Home Contract File and remitted payment to the Seller pursuant to
Section 8.07(d).

      "Undelivered Asset Subaccount" means the subaccount so designated and
established and maintained pursuant to Section 8.07.

      "Underwriter" means [_______________________].

      "Underwriter's Exemption" means Prohibited Transaction Exemption
[_________________], as amended (or any successor thereto), or any substantially
similar administrative exemption granted by the U.S. Department of Labor.

                                       35
<PAGE>

      "Underwriting Agreement" means the Underwriting Agreement, dated
[_______________], between the Depositor and the Underwriter.

      "Unpaid Class A Interest Shortfall" means, as to each class of Class A
Certificates and any Distribution Date, the amount, if any, of the Class A
Interest Shortfall applicable to such Class for the prior Distribution Date,
plus accrued interest (to the extent payment thereof is legally permissible) at
the related Pass-Through Rate on the amount thereof from such prior Distribution
Date to such current Distribution Date (calculated in the manner specified in
Section 1.03).

      "Unpaid Class A Principal Shortfall" means, as to each Class of Class A
Certificates and any Distribution Date, the amount, if any, by which the
aggregate of the Class A Principal Shortfalls for prior Distribution Dates is in
excess of the amounts distributed on prior Distribution Dates to Holders of
Class A Certificates pursuant to Section 8.03(a)(8)(ii).

      "Unpaid Class B-1 Interest Shortfall" means, as to any Distribution Date,
the amount, if any, of the Class B-1 Interest Shortfall for the prior
Distribution Date, plus accrued interest (to the extent payment thereof is
legally permissible) at the Class B-1 Pass-Through Rate on the amount thereof
from such prior Distribution Date to such current Distribution Date (calculated
in the manner specified in Section 1.03).

      "Unpaid Class B-1 Liquidation Loss Interest Shortfall" means, as to any
Distribution Date, the sum of (i) the amount, if any, of the remainder of (x)
the Class B-1 Liquidation Loss Interest Amount, if any, for the immediately
prior Distribution Date, plus (y) the Unpaid Class B-1 Liquidation Loss Interest
Shortfall determined as of such immediately prior Distribution Date, minus (z)
all amounts distributed to the Holders of the Class B-1 Certificates on account
of any Unpaid Class B-1 Liquidation Loss Interest Shortfall pursuant to Section
8.03(a)(11)(iv) on such immediately prior Distribution Date, plus (ii) accrued
interest (to the extent payment thereof is legally permissible) at the Class B-1
Pass-Through Rate on the amount specified in clause (i) from such prior
Distribution Date to such current Distribution Date (calculated in the manner
specified in Section 1.03).

      "Unpaid Class B-1 Principal Shortfall" means, as to any Distribution Date,
the amount, if any, by which the aggregate of the Class B-1 Principal Shortfalls
for prior Distribution Dates is in excess of the amounts distributed on prior
Distribution Dates to Holders of Class B-1 Certificates pursuant to Section
8.03(a)(11)(i).

      "Unpaid Class M-1 Interest Shortfall" means, as to any Distribution Date,
the amount, if any, of the Class M-1 Interest Shortfall for the prior
Distribution Date, plus accrued interest (to the extent payment thereof is
legally permissible) at the Class M-1 Pass-Through Rate on the amount thereof
from such prior Distribution Date to such current Distribution Date (calculated
in the manner specified in Section 1.03).

      "Unpaid Class M-1 Liquidation Loss Interest Shortfall" means, as to any
Distribution Date, the sum of (i) the amount, if any, of the remainder of (x)
the Class M-1 Liquidation Loss Interest Amount, if any, for the immediately
prior Distribution Date, plus (y) the Unpaid Class M-1 Liquidation Loss Interest
Shortfall determined as of such immediately prior Distribution

                                       36
<PAGE>

Date, minus (z) all amounts distributed to the Holders of the Class M-1
Certificates on account of any Unpaid Class M-1 Liquidation Loss Interest
Shortfall pursuant to Section 8.03(a)(9)(iv) on such immediately prior
Distribution Date, plus (ii) accrued interest (to the extent payment thereof is
legally permissible) at the Class M-1 Pass-Through Rate on the amount specified
in clause (i) from such prior Distribution Date to such current Distribution
Date (calculated in the manner specified in Section 1.03).

      "Unpaid Class M-1 Principal Shortfall" means, as to any Distribution Date,
the amount, if any, by which the aggregate of the Class M-1 Principal Shortfalls
for prior Distribution Dates is in excess of the amounts distributed on prior
Distribution Dates to Holders of Class M-1 Certificates pursuant to Section
8.03(a)(9)(i).

      "Unpaid Class M-2 Interest Shortfall" means, as to any Distribution Date,
the amount, if any, of the Class M-2 Interest Shortfall for the prior
Distribution Date, plus accrued interest (to the extent payment thereof is
legally permissible) at the Class M-2 Pass-Through Rate on the amount thereof
from such prior Distribution Date to such current Distribution Date (calculated
in the manner specified in Section 1.03).

      "Unpaid Class M-2 Liquidation Loss Interest Shortfall" means, as to any
Distribution Date, the sum of (i) the amount, if any, of the remainder of (x)
the Class M-2 Liquidation Loss Interest Amount, if any, for the immediately
prior Distribution Date, plus (y) the Unpaid Class M-2 Liquidation Loss Interest
Shortfall determined as of such immediately prior Distribution Date, minus (z)
all amounts distributed to the Holders of the Class M-2 Certificates on account
of any Unpaid Class M-2 Liquidation Loss Interest Shortfall pursuant to Section
8.03(a)(10)(iv) on such immediately prior Distribution Date, plus (ii) accrued
interest (to the extent payment thereof is legally permissible) at the Class M-2
Pass-Through Rate on the amount specified in clause (i) from such prior
Distribution Date to such current Distribution Date (calculated in the manner
specified in Section 1.03).

      "Unpaid Class M-2 Principal Shortfall" means, as to any Distribution Date,
the amount, if any, by which the aggregate of the Class M-2 Principal Shortfalls
for prior Distribution Dates is in excess of the amounts distributed on prior
Distribution Dates to Holders of Class M-2 Certificates pursuant to Section
8.03(a)(10)(i).

      "Weighted Average Net Asset Rate" means, as to any Distribution Date, the
weighted average (determined by Principal Balance) of the Asset Rates of all
Assets that were outstanding on the first day of the prior related Due Period
net of the sum of the rate at which the Monthly Servicing Fee is calculated, the
Trustee Fee Rate and the Backup Servicing Fee Rate.

      SECTION 1.03. Calculations.

      All calculations of the amount of interest accrued on the Certificates
with respect to any Distribution Date (other than with respect to the first
Distribution Date) shall be during the related Accrual Period calculated on the
basis of a 360-day year of twelve 30-day months. For the first Distribution
Date, the calculations of interest accrued on the Certificates shall be
calculated on the basis of the actual number of days elapsed during the first
Accrual Period and a 360-day year.

                                       37
<PAGE>

                                   ARTICLE II

                   ESTABLISHMENT OF TRUST; TRANSFER OF ASSETS

      SECTION 2.01. Closing.

      (a)   There is hereby created, by the Depositor as settlor, a separate
trust which shall be known as Origen [Manufactured Housing Contract
Senior/Subordinate Asset-Backed Certificate] Trust, Series 200[__] - [__]. By
the execution and delivery of this Agreement, the Depositor has agreed that it
will elect or will cause an election to be made to treat the pool of assets
comprising each of the Subsidiary REMIC and the Master REMIC[, excluding the
Pre-Funding Account], as a REMIC. The Trust shall be administered pursuant to
the provisions of this Agreement for the benefit of the Certificateholders.

      (b)   The Depositor hereby transfers, assigns, delivers, sells, sets over
and otherwise conveys to the Trustee or the Custodian on behalf of the Trust,
(1) all the right, title and interest of the Depositor in and to the Assets,
including, without limitation, all right, title and interest in and to the
Collateral Security, all rights to receive payments on or with respect to the
Assets and all rights of the Depositor under the Transfer Agreement, (2) all
rights under every Hazard Insurance Policy relating to a Manufactured Home
securing an Asset for the benefit of the creditor of such Asset, (3) the
proceeds from the Errors and Omissions Protection Policy and all rights under
any blanket hazard insurance policy to the extent they relate to the Assets, (4)
all documents contained in the Asset Files and the Land-and-Home Contract Files,
subject to the exceptions set forth on Schedule A to Exhibit H of this
Agreement, [(5) amounts on deposit in the Pre-Funding Account] and (6) all
proceeds and products in any way derived from any of the foregoing.

      (c)   Reserved.

      (d)   Although the parties intend that the conveyance of the Depositor's
right, title and interest in and to the Assets and the Collateral Security
pursuant to this Agreement and each Subsequent Transfer Instrument shall
constitute a purchase and sale and not a pledge of security for loans from the
Certificateholders, it is the intent of this Agreement that if such conveyances
are deemed to be a pledge of security for loans from the Certificateholders or
any other Persons (the "Secured Obligations"), the parties intend that the
rights and obligations of the parties to the Secured Obligations shall be
established pursuant to the terms of this Agreement. The parties also intend and
agree that the Depositor shall be deemed to have granted to the Trustee, and the
Depositor does hereby grant to the Trustee, a perfected first-priority security
interest in the items designated in Section 2.01(b)(1) through 2.01(b)(6) above
and in each Subsequent Transfer Instrument, and all proceeds thereof, to secure
the Secured Obligations, and that this Agreement shall constitute a security
agreement under applicable law. If the trust created by this Agreement
terminates prior to the satisfaction of the claims of any Person under any
Certificates or the Secured Obligations, the security interest created hereby
shall continue in full force and effect and the Trustee shall be deemed to be
the collateral agent for the benefit of such Person.

                                       38
<PAGE>

      SECTION 2.02. Conditions to the Closing.

      On or before the Closing Date, unless a condition is waived by the
Depositor and the Underwriter, the Seller and the Depositor, as applicable,
shall deliver or cause to be delivered the following documents to the Trustee:

                  (1)   The List of Contracts identifying all Initial and
            Additional Contracts.

                  (2)   The Mortgage Loan Schedule identifying all Initial and
            Additional Mortgage Loans.

                  (3)   A certificate of an officer of the Seller substantially
            in the form of Exhibit E hereto. A certificate of an officer of the
            Depositor in form and substance satisfactory to the Underwriter.

                  (4)   An Opinion of Counsel for the Seller. An Opinion of
            Counsel for the Depositor

                  (5)   A letter acceptable to the Underwriter from Deloitte &
            Touche or another nationally recognized accounting firm, stating
            that such firm has reviewed the Initial Assets on a statistical
            sampling basis and setting forth the results of such review.

                  (6)   Copies of resolutions of the board of directors of the
            Seller or of the executive committee of the board of directors of
            the Seller approving the execution, delivery and performance of this
            Agreement, the creation of the Trust and the transactions
            contemplated hereunder, certified in each case by the secretary or
            an assistant secretary of the Seller.

                  (7)   Officially certified recent evidence of due formation
            and good standing of the Seller under the laws of the State of
            Delaware. Officially certified recent evidence of due formation and
            good standing of the Depositor under the laws of the State of
            Delaware.

                  (8)   Copies of UCC1 financing statements, naming the Seller
            as debtor and naming the Depositor as secured party and listing the
            Assets collateral, to be filed with the Secretary of State of
            Delaware.

                  (9)   The Mortgage Loan File for each Initial and Additional
            Mortgage Loan.

                  (10)  The Land-and-Home Contract File for each Initial and
            Additional Contract that is a Land-and-Home Contract.

                  (11)  An executed copy of the Assignment of the Seller
            substantially in the form of Exhibit D hereto.

                                       39
<PAGE>

                  (12)  An Officer's Certificate listing the Servicer's
            Servicing Officers.

                  (13)  Evidence of deposit in the Collection Account of all
            funds received with respect to the Initial and Additional Assets
            after the Cut-off Date and prior to the Closing Date.

                  (14)  [Reserved].

                  (15)  A letter from ______________ confirming that it has
            assigned the Class A Certificates a rating of Aaa, the Class M-1
            Certificates a rating of "Aa2", the Class M-2 Certificates a rating
            of "A2," the Class B-1 Certificates a rating of "Baa2".

                  (16)  A letter from _______________ confirming that it has
            assigned the Class A Certificates a rating of AAA, the Class M-1
            Certificates a rating of "AA," the Class M-2 Certificates a rating
            of "A", the Class B-1 Certificates a rating of "BBB".

                  (17)  An executed copy of the Transfer Agreement.

      SECTION 2.03. [Conveyance of the Subsequent Assets.

      (a)   Subject to the conditions set forth in paragraph (b) below, in
consideration of the Trustee's delivery on the related Subsequent Transfer Dates
to or upon the order of the Seller of all or a portion of the balance of funds
in the Pre-Funding Account, the Seller shall on any Subsequent Transfer Date
sell, transfer, assign, set over and convey to the Trust (as the designee of the
Depositor) by execution and delivery of a Subsequent Transfer Instrument, all
the right, title and interest of the Seller in and to the Subsequent Assets
identified on the List of Contracts attached to the Subsequent Transfer
Instrument, including all rights to receive payments on or with respect to the
Subsequent Assets due after the related Subsequent Cut-off Date, and all items
with respect to such Subsequent Assets in the related Mortgage Loan Files,
Contract Files and Land-and-Home Contract Files. The transfer to the Trustee by
the Seller of the Subsequent Assets shall be absolute and is intended by the
Seller, the Trustee and the Certificateholders to constitute and to be treated
as a sale of the Subsequent Assets by the Seller to the Trust.

      The purchase price paid by the Trustee shall be one hundred percent (100%)
of the aggregate Cut-off Date Principal Balances of such Subsequent Assets. The
purchase price of Subsequent Assets shall be paid solely with amounts in the
Pre-Funding Account. This Agreement shall constitute a fixed price contract in
accordance with Section 860G(a)(3)(A)(ii) of the Code.

      (b)   The Seller shall transfer the Subsequent Assets to the Trustee, and
the Trustee shall release funds from the Pre-Funding Account, only upon the
satisfaction of each of the following conditions on or prior to the related
Subsequent Transfer Date:

            (i)   the Seller shall have provided the Trustee with an Addition
                  Notice at least five Business Days prior to the Subsequent
                  Transfer Date and shall have

                                       40
<PAGE>

                  provided any information reasonably requested by the Trustee
                  with respect to the Subsequent Assets;

           (ii)   the Seller shall have delivered the related Mortgage Loan
                  File, Contract File and Land-and-Home Contract File for each
                  Subsequent Asset to the Custodian at least two Business Days
                  prior to the Subsequent Transfer Date;

           (iii)  the Seller shall have delivered to the Trustee a duly executed
                  Subsequent Transfer Instrument substantially in the form of
                  Exhibit P, which shall include a List of Contracts identifying
                  the related Subsequent Contracts and a Mortgage Loan Schedule
                  identifying the related Mortgage Loans;

           (iv)   as of each Subsequent Transfer Date, as evidenced by delivery
                  of the Subsequent Transfer Instrument, the Seller shall not be
                  insolvent nor shall it have been made insolvent by such
                  transfer nor shall it be aware of any pending insolvency;

           (v)    such sale and transfer shall not result in a material adverse
                  tax consequence to the Trust (including the Master REMIC and
                  the Subsidiary REMIC) or the Certificateholders;

           (vi)   the Pre-Funding Period shall not have ended;

           (vii)  the Seller shall have delivered to the Trustee an Officer's
                  Certificate, substantially in the form attached hereto as
                  Exhibit Q, confirming the satisfaction of each condition
                  precedent and the representations specified in this Section
                  2.03 and in Sections 3.01 and 3.03; and

           (viii) the Seller shall have delivered to the Trustee Opinions of
                  Counsel addressed to Fitch, Moody's and the Trustee with
                  respect to the transfer of the Subsequent Assets substantially
                  in the form of the Opinions of Counsel delivered to the
                  Trustee on the Closing Date regarding certain bankruptcy,
                  corporate and tax matters, unless such matters are covered in
                  the opinions delivered on the Closing Date.

           (ix)   the Seller shall have delivered to the Trustee a copy of the
                  executed Subsequent Transfer Instrument between the Seller and
                  the Trustee, substantially in the form of Exhibit A to the
                  Transfer Agreement and dated as of the Subsequent Transfer
                  Date.

      (c)   Before the last day of the Pre-Funding Period, the Seller shall
deliver to the Trustee a letter from Deloitte & Touche or another nationally
recognized accounting firm retained by the Seller (with copies provided to the
Rating Agencies, the Underwriter and the Depositor) that is in form, substance
and methodology the same as that delivered under Section 2.02(5) of this
Agreement, except that it shall address the Subsequent Assets and their
conformity in all material respects to the characteristics described in Section
3.04(3) of this Agreement.]

                                       41
<PAGE>

      SECTION 2.04. Acceptance by Trustee.

      (a)   On the Closing Date and each Subsequent Transfer Date, if the
conditions set forth in Sections 2.01, 2.02 and 2.03, respectively, have been
satisfied, the Trustee shall deliver a certificate to the Depositor
substantially in the form of Exhibit G hereto acknowledging conveyance of the
Assets, identified on the applicable Asset Schedule and the related Contract
Files, Land-and-Home Contract Files and the Mortgage Loans, identified on the
applicable Mortgage Loan Schedule and the related Trustee Mortgage Loan Files to
the Trustee, subject to the Custodian's review below, and declaring that the
Trustee, directly or through the Custodian, will hold all the Assets that have
been delivered in trust, upon the terms herein set forth, for the use and
benefit of all Certificateholders and on the Closing Date the Trustee shall
issue upon the order of the Depositor Certificates representing ownership of a
beneficial interest in 100% of the Trust.

      (b)   (i)   On or prior to the Closing Date, the Trustee will review each
                  Contract File to ascertain that the documents delivered
                  pursuant to Section 2.01 appear on their face to contain the
                  requisite signatures by or on behalf of the respective parties
                  thereto, and shall deliver to the Depositor (with a complete
                  copy thereof to the Servicer) the acknowledgement and
                  certification in the form attached hereto as Exhibit H,
                  subject to any exceptions noted in an exceptions schedule
                  attached thereto, to the effect that, as to each Contract set
                  forth on the List of Contracts: (A) all of the following
                  documents are in its possession or have been delivered for
                  recording or filing: (I) all documents specified in clauses
                  (a), (b), (d), (f) and (g) of the definition of "Contract
                  File" and (II) documents specified in clauses (c), (e), (h),
                  (i) and (j) of the definition of "Contract File" for those
                  Contracts which the Seller or Depositor has notified the
                  Trustee or the Custodian, with respect to clause (c), as
                  having an assumption, modification, consolidation or extension
                  agreement, with respect to clause (e), which type of
                  perfection of security interest in the related Manufactured
                  Home granted by the Contract should be in the Contract File,
                  with respect to clause (h), as having a guarantee executed in
                  connection with the promissory note, with respect to clause
                  (i), as having a loan transfer agreement, and with respect to
                  clause (j), identifying any other collateral security and (B)
                  such documents have been reviewed by it and appear to relate
                  to such Contract.

            (ii)  On or prior to the Closing Date, the Trustee will review each
                  Land-and-Home Contract File to ascertain that the documents
                  delivered pursuant to Section 2.01 appear on their face to
                  contain the requisite signatures by or on behalf of the
                  respective parties thereto, and shall deliver to the Depositor
                  (with a complete copy thereof to the Servicer) the
                  acknowledgement and certification in the form attached hereto
                  as Exhibit H, subject to any exceptions noted in an exceptions
                  schedule attached thereto, to the effect that, as to each
                  Land-and-Home Contract set forth on the List of Contracts: (A)
                  all of the following documents are in its possession or have
                  been delivered for recording or filing: (I) all documents

                                       42
<PAGE>

                  specified in clauses (a), (b), (c), (d) and (e) of the
                  definition of "Land-and-Home Contract File" and (II) documents
                  specified in clause (f) of the definition of "Land-and-Home
                  Contract File" for those Contracts which the Seller or
                  Depositor has notified the Trustee or the Custodian as having
                  an assumption, modification, consolidation or extension
                  agreement and (B) such documents have been reviewed by it and
                  appear to relate to such Contract.

            (iii) On or prior to the Closing Date, the Trustee will review each
                  Trustee Mortgage Loan File to ascertain that the documents
                  delivered pursuant to Section 2.01 appear on their face to
                  contain the requisite signatures by or on behalf of the
                  respective parties thereto, and shall deliver to the Depositor
                  (with a complete copy thereof to the Servicer) the
                  acknowledgement and certification in the form attached hereto
                  as Exhibit H, subject to any exceptions noted in an exceptions
                  schedule attached thereto, to the effect that, as to each
                  Mortgage Loan set forth on the Mortgage Loan Schedule: (A) all
                  documents required to be included in the Trustee Mortgage Loan
                  File are included therein and (B) such documents have been
                  reviewed by it and appear to relate to such Mortgage Loan.

            (iv)  With respect to Sections 2.04(b)(i), (ii) and (iii) above, the
                  Trustee will update the exceptions set forth on Schedule A of
                  Exhibit H hereto every 90 days until the 2nd anniversary of
                  the Closing Date and distribute such updated schedules to the
                  Depositor, Servicer and the Seller. In performing the review
                  set forth in Sections 2.04(b)(i), (ii) and (iii) above, the
                  Trustee shall make sure that the documents are executed and
                  endorsed, but shall be under no duty or obligation to inspect,
                  review or examine any such documents, instruments,
                  certificates or other papers to determine that the same are
                  valid, binding, legally effective, properly endorsed, genuine,
                  enforceable or appropriate for the represented purpose or that
                  they have actually been recorded or are in recordable form or
                  that they are other than what they purport to be on their
                  face. The Trustee shall have no responsibility for verifying
                  the genuineness or the legal effectiveness of or authority for
                  any signatures of or on behalf of any party or endorser.

      (c)   If, in its review of the Trustee Mortgage Loan Files, the Contract
Files and the Land-and-Home Contract Files as described in Exhibit G, the
Trustee or its Custodian discovers a breach of the representations or warranties
set forth in Sections 3.02, 3.03, 3.04 or 3.05, the Seller shall promptly cure
such breach or repurchase or replace such Asset pursuant to Section 3.06.

      SECTION 2.05. REMIC Provisions.

      The Preliminary Statement sets forth the designations and "latest possible
maturity date" for federal income tax purposes of all interests created hereby.
The "Startup Day" for purposes of the REMIC Provisions shall be the Closing
Date. The "tax matters person" with respect to

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<PAGE>

each REMIC created hereunder shall be the Class R Certificateholder and the
Class R Certificateholder shall hold the Tax Matters Person Certificate. The
Trustee shall act as agent for the Tax Matters Person. The Trust's fiscal year
shall be the calendar year and, for the purposes of Section 860C of the Code,
the taxable income of each REMIC created hereunder shall be computed under an
accrual method of accounting.

      It is intended that the assets with respect to which any REMIC election is
to be made, as set forth in the Preliminary Statement, shall constitute, and
that the conduct of matters relating to such assets shall be such as to qualify
such assets as, a "real estate mortgage investment conduit" as defined in and in
accordance with the REMIC Provisions. In furtherance of such intention, the
Trustee covenants and agrees that it shall act as agent (and the Trustee is
hereby appointed to act as agent) on behalf of each REMIC created hereunder and
that in such capacity it shall: (a) prepare and file, or cause to be prepared
and filed, in a timely manner, U.S. Real Estate Mortgage Investment Conduit
Income Tax Returns (Forms 1066 or any successor form adopted by the Internal
Revenue Service) and prepare and file or cause to be prepared and filed with the
Internal Revenue Service and applicable state or local tax authorities income
tax or information returns for each taxable year with respect to each REMIC
created hereunder, containing such information and at the times and in the
manner as may be required by the Code or state or local tax laws, regulations,
or rules, and furnish or cause to be furnished to Certificateholders the
schedules, statements or information at such times and in such manner as may be
required thereby; (b) within thirty days of the Closing Date, furnish or cause
to be furnished to the Internal Revenue Service, on Forms 8811 or as otherwise
may be required by the Code, the name, title, address, and telephone number of
the person that the holders of the Certificates may contact for tax information
relating thereto, together with such additional information as may be required
by such Form, and update such information at the time or times in the manner
required by the Code; (c) make or cause to be made elections that such assets be
treated as a REMIC on the federal tax return for its first taxable year (and, if
necessary, under applicable state law); (d) prepare and forward, or cause to be
prepared and forwarded, to the Certificateholders and to the Internal Revenue
Service and, if necessary, state tax authorities, all information returns and
reports as and when required to be provided to them in accordance with the REMIC
Provisions, including without limitation, the calculation of any original issue
discount using the prepayment assumption described in the Prospectus Supplement;
(e) provide information necessary for the computation of tax imposed on the
transfer of a Class R Certificate to a Person that is not a Permitted
Transferee, or an agent (including a broker, nominee or other middleman) of a
non-Permitted Transferee, or a pass-through entity in which a non-Permitted
Transferee is the record holder of an interest (the reasonable cost of computing
and furnishing such information may be charged to the Person liable for such
tax); (f) to the extent that they are under its control, conduct matters
relating to such assets at all times that any Certificates are outstanding so as
to maintain the REMIC status of each REMIC created hereunder under the REMIC
Provisions; (g) not knowingly or intentionally take any action or omit to take
any action that would cause the termination of the REMIC status of either of the
REMICs created hereunder; (h) pay, from the sources specified in the last
paragraph of this Section 2.05, the amount of any federal or state tax,
including prohibited transaction taxes as described below, imposed on each REMIC
created hereunder prior to its termination when and as the same shall be due and
payable (but such obligation shall not prevent the Trustee or any other
appropriate Person from contesting any such tax in appropriate proceedings and
shall not prevent the Trustee from withholding payment of such tax, if permitted
by law, pending the outcome of such proceedings); (i) ensure that federal,

                                       44
<PAGE>

state or local income tax or information returns shall be signed by the Trustee
or such other person as may be required to sign such returns by the Code or
state or local laws, regulations or rules; (j) maintain records relating to each
REMIC created hereunder, including, but not limited to, the income, expenses,
assets and liabilities thereof and the fair market value and adjusted basis of
the assets determined at such intervals as may be required by the Code, as may
be necessary to prepare the foregoing returns, schedules, statements or
information; and (k) as and when necessary and appropriate, represent at the
expense of the Trust each REMIC created hereunder in any administrative or
judicial proceedings relating to an examination or audit by any governmental
taxing authority, request an administrative adjustment as to any taxable year of
each REMIC created hereunder, enter into settlement agreements with any
governmental taxing agency, extend any statute of limitations relating to any
tax item of each REMIC created hereunder, and otherwise act on behalf of each
REMIC created hereunder in relation to any tax matter or controversy involving
it.

      In order to enable the Trustee to perform its duties as set forth herein,
the Seller shall provide, or cause to be provided, to the Trustee within ten
(10) days after the Closing Date all information or data that the Trustee
requests in writing and determines to be relevant for tax purposes to the
valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Loans. Thereafter, the Seller shall provide to the
Trustee promptly upon written request therefor, any such additional information
or data that the Trustee may, from time to time, reasonably request in order to
enable the Trustee to perform its duties as set forth herein. The Seller hereby
indemnifies the Trustee for any losses, liabilities, damages, claims or expenses
of the Trustee arising from any errors or miscalculations of the Trustee that
result from any failure of the Seller to provide, or to cause to be provided,
accurate information or data to the Trustee on a timely basis.

      In the event that any tax is imposed on "prohibited transactions" of any
REMIC created hereunder as defined in Section 860F(a)(2) of the Code, on the
"net income from foreclosure property" of any REMIC created hereunder as defined
in Section 860G(c) of the Code, on any contribution to any REMIC created
hereunder after the Startup Day pursuant to Section 860G(d) of the Code, or any
other tax is imposed, such tax shall be paid from the Trust or as otherwise
provided for herein; provided, that such tax shall be paid by (i) the Trustee,
if such tax arises out of or results from a breach by the Trustee of any of its
obligations under this Agreement, (ii) the Servicer, or if such tax arises out
of or results from a breach by the Servicer or Seller of any of their
obligations under this Agreement, (iii) the Seller, if any tax arises out of or
results from the Seller's obligation to repurchase a Mortgage Loan pursuant to
Section 3.06.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

      SECTION 3.01. Representations and Warranties Regarding the Originator and
                    the Seller.

      (a)   The Originator represents and warrants, effective on the Closing
Date and each Subsequent Transfer Date, that:

                                       45
<PAGE>

                  (1)   Formation and Good Standing. The Originator is a limited
            liability company duly formed, validly existing and in good standing
            under the laws of the jurisdiction of its formation and has the
            organizational power to own its assets and to transact the business
            in which it is currently engaged. The Originator is duly qualified
            to do business as a foreign limited liability company and is in good
            standing in each jurisdiction in which the character of the business
            transacted by it or properties owned or leased by it requires such
            qualification and in which the failure so to qualify would have a
            material adverse effect on the business, properties, assets, or
            condition (financial or other) of the Originator.

                  (2)   Authorization; Binding Obligations. The Originator has
            the power and authority to make, execute, deliver and perform this
            Agreement and all of the transactions contemplated under this
            Agreement, and cause the Trust to make, execute, deliver and perform
            its obligations under this Agreement and has taken all necessary
            corporate action to authorize the execution, delivery and
            performance of this Agreement. When executed and delivered, this
            Agreement will constitute the legal, valid and binding obligation of
            the Originator enforceable in accordance with its terms, except as
            enforcement of such terms may be limited by bankruptcy, insolvency
            or similar laws affecting the enforcement of creditors' rights
            generally and by the availability of equitable remedies.

                  (3)   No Consent Required. The Originator is not required to
            obtain the consent of any other party or any consent, license,
            approval or authorization from, or registration or declaration with,
            any governmental authority, bureau or agency in connection with the
            execution, delivery, performance, validity or enforceability of this
            Agreement.

                  (4)   No Violations. The execution, delivery and performance
            of this Agreement by the Originator will not violate any provision
            of any existing law or regulation or any order or decree of any
            court or the Articles of Incorporation or Bylaws of the Originator,
            or constitute a material breach of any mortgage, indenture, contract
            or other agreement to which the Originator is a party or by which
            the Originator may be bound.

                  (5)   Litigation. No litigation or administrative proceeding
            of or before any court, tribunal or governmental body is currently
            pending, or to the knowledge of the Originator threatened, against
            the Originator or any of its properties or with respect to this
            Agreement or the Certificates which, if adversely determined, would
            in the opinion of the Originator have a material adverse effect on
            the transactions contemplated by this Agreement.

                  (6)   Licensing. The Originator is duly registered as a
            finance company in each state in which Assets were originated, to
            the extent such registration is required by applicable law.

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<PAGE>

      (b)   The Seller represents and warrants, effective on the Closing Date
and each Subsequent Transfer Date, that:

                  (1)   Formation and Good Standing. The Seller is a limited
            liability company duly formed, validly existing and in good standing
            under the laws of the jurisdiction of its formation and has the
            organizational power to own its assets and to transact the business
            in which it is currently engaged. The Seller is duly qualified to do
            business as a foreign limited liability company and is in good
            standing in each jurisdiction in which the character of the business
            transacted by it or properties owned or leased by it requires such
            qualification and in which the failure so to qualify would have a
            material adverse effect on the business, properties, assets, or
            condition (financial or other) of the Seller.

                  (2)   Authorization; Binding Obligations. The Seller has the
            power and authority to make, execute, deliver and perform this
            Agreement and all of the transactions contemplated under this
            Agreement, and cause the Trust to make, execute, deliver and perform
            its obligations under this Agreement and has taken all necessary
            corporate action to authorize the execution, delivery and
            performance of this Agreement. When executed and delivered, this
            Agreement will constitute the legal, valid and binding obligation of
            the Seller enforceable in accordance with its terms, except as
            enforcement of such terms may be limited by bankruptcy, insolvency
            or similar laws affecting the enforcement of creditors' rights
            generally and by the availability of equitable remedies.

                  (3)   No Consent Required. The Seller is not required to
            obtain the consent of any other party or any consent, license,
            approval or authorization from, or registration or declaration with,
            any governmental authority, bureau or agency in connection with the
            execution, delivery, performance, validity or enforceability of this
            Agreement.

                  (4)   No Violations. The execution, delivery and performance
            of this Agreement by the Seller will not violate any provision of
            any existing law or regulation or any order or decree of any court
            or the Articles of Incorporation or Bylaws of the Seller, or
            constitute a material breach of any mortgage, indenture, contract or
            other agreement to which the Seller is a party or by which the
            Seller may be bound.

                  (5)   Litigation. No litigation or administrative proceeding
            of or before any court, tribunal or governmental body is currently
            pending, or to the knowledge of the Seller threatened, against the
            Seller or any of its properties or with respect to this Agreement or
            the Certificates which, if adversely determined, would in the
            opinion of the Seller have a material adverse effect on the
            transactions contemplated by this Agreement.

                  (6)   Licensing. The Seller is duly registered as a finance
            company in each state in which Assets were originated, to the extent
            such registration is required by applicable law.

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<PAGE>

      SECTION 3.02. Representations and Warranties Regarding Each Contract.

      The Seller and Originator represent and warrant, jointly and severally, as
of the Closing Date with respect to each Initial and Additional Contract, and as
of the applicable Subsequent Transfer Date with respect to each Subsequent
Contract identified on the List of Contracts attached to the related Subsequent
Transfer Instrument:

                  (1)   List of Contracts. The information set forth in the
            applicable List of Contracts is true and correct as of its date.

                  (2)   Payments. As of the Cut-off Date, the most recent
            scheduled payment was made by or on behalf of the Obligor (without
            any advance from the Originator, the Seller or any Person acting at
            the request of the Seller) or was not past due for more than [59]
            days (in the case of an Initial or Additional Contract) or [30] days
            (in the case of a Subsequent Contract).

                  (3)   No Waivers. The terms of the Contract have not been
            waived, altered or modified in any respect, except by instruments or
            documents identified in the Contract File or Land-and-Home Contract
            File, as applicable.

                  (4)   Binding Obligation. The Contract is the legal, valid and
            binding obligation of the Obligor thereunder and is enforceable in
            accordance with its terms, except as such enforceability may be
            limited by laws affecting the enforcement of creditors' rights
            generally.

                  (5)   No Defenses. The Contract is not subject to any right of
            rescission, setoff, counterclaim or defense, including the defense
            of usury, and the operation of any of the terms of the Contract or
            the exercise of any right thereunder will not render the Contract
            unenforceable in whole or in part or subject to any right of
            rescission, setoff, counterclaim or defense, including the defense
            of usury, and no such right of rescission, setoff, counterclaim or
            defense has been asserted with respect thereto.

                  (6)   Insurance Coverage. The Manufactured Home securing the
            Contract is covered by a Hazard Insurance Policy in the amount
            required by Section 5.09. With respect to any Contract, either the
            Seller or the Originator has obtained: (a) a statement from the
            Obligor's insurance agent that the Manufactured Home was, at the
            time of origination of the Contract, not in a federally designated
            special flood hazard area; or (b) evidence that, at the time of
            origination, flood insurance was in effect, which coverage is at
            least equal to that required by Section 5.09 or such lesser coverage
            as may be available under the federal flood insurance program. All
            premiums due as of the Closing Date on such insurance have been paid
            in full.

                  (7)   Origination. The Contract was originated by the
            Originator or a manufactured housing dealer and purchased by the
            Seller or originated or acquired by the Seller directly, in the
            regular course of its business.

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<PAGE>

                  (8)   Lawful Assignment. The Contract was not originated in
            and is not subject to the laws of any jurisdiction whose laws would
            make the transfer of the Contract pursuant to this Agreement or
            pursuant to transfers of Certificates, or the ownership of the
            Contract by the Trust, unlawful or render the Contract
            unenforceable.

                  (9)   Compliance with Law. At the date of origination of the
            Contract, all requirements of any federal and state laws, rules and
            regulations applicable to the Contract, including, without
            limitation, usury, truth in lending and equal credit opportunity
            laws, have been complied with, and the Originator and the Seller
            shall for at least the period of this Agreement, maintain in its
            possession, available for the Trustee's inspection, and shall
            deliver to the Trustee upon demand, evidence of compliance with all
            such requirements. Such compliance is not affected by the Trust's
            ownership of the Contract.

                  (10)  Contract in Force. The Contract has not been satisfied
            or subordinated in whole or in part or rescinded, and the
            Manufactured Home securing the Contract has not been released from
            the lien of the Contract in whole or in part.

                  (11)  Valid Security Interest. Each Contract (other than the
            Land-and-Home Contracts) creates a valid and enforceable perfected
            first priority security interest in favor of the Originator in the
            Manufactured Home covered thereby as security for payment of the
            Cut-off Date Principal Balance of such Contract. The Originator has
            assigned all of its right, title and interest in such Contract,
            including the security interest in the Manufactured Home covered
            thereby, to the Seller, and the Seller has assigned all of its
            right, title and interest in such Contract, including the security
            interest in the Manufactured Home covered thereby, to the Depositor.
            The Depositor has assigned all of its right, title and interest in
            such Contract, including the security interest in the Manufactured
            Home covered thereby, to the Trustee. The Trustee has and will have
            a valid and perfected and enforceable first priority security
            interest in such Contract and Manufactured Home.

                  (12)  Each Mortgage is a valid first lien in favor of the
            Seller on real property securing the amount owed by the Obligor
            under the related Land-and-Home Contract subject only to (a) the
            lien of current real property taxes and assessments, (b) 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 appearing of record being acceptable to
            mortgage lending institutions generally in the area wherein the
            property subject to the Mortgage is located or specifically
            reflected in the appraisal obtained in connection with the
            origination of the related Land-and-Home Contract obtained by the
            Seller and (c) 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. As of the Closing
            Date, with respect to each Initial and Additional Contract, and as
            of the Subsequent Transfer Date, the Originator will

                                       49
<PAGE>

            have assigned all of its right, title and interest in such
            Land-and-Home Contract and related Mortgage, including the security
            interest in the Manufactured Home covered thereby, to the Seller who
            has assigned it to the Depositor. The Depositor in turn will have
            assigned all of its right, title and interest in such Contract,
            including the security interest in the Manufactured Home covered
            thereby, to the Trustee. The Trustee has and will have a valid and
            perfected and enforceable first priority security interest in the
            related Mortgaged Property subject to the exceptions set forth
            above.

                  (13)  Capacity of Parties. The signature(s) of the Obligor(s)
            on the Contract are genuine and all parties to the Contract had full
            legal capacity to execute the Contract.

                  (14)  Good Title. In the case of a Contract purchased from the
            Originator or a manufactured housing dealer, the Seller purchased
            the Contract for fair value and took possession thereof in the
            ordinary course of its business, without knowledge that the Contract
            was subject to a security interest. Immediately prior to the
            transfer of the Contract by the Seller to the Depositor under the
            terms of the Transfer Agreement, the Seller had good and marketable
            title thereto free and clear of any encumbrance, equity, loan,
            pledge, charge, claim or security interest and was the sole owner
            thereof with full right to transfer the Contract to the Seller. With
            respect to any Contract bearing a stamp indicating that such
            Contract has been sold to another party, such other party's interest
            in such Contract has been released.

                  (15)  No Defaults. As of the Cut-off Date or Subsequent
            Cut-off Date, as applicable, there was no default, breach, violation
            or event permitting acceleration existing under the Contract and no
            event which, with notice and the expiration of any grace or cure
            period, would constitute such a default, breach, violation or event
            permitting acceleration under such Contract (except payment
            delinquencies permitted by clause (2) above). Neither the Originator
            nor the Seller has waived any such default, breach, violation or
            event permitting acceleration except payment delinquencies permitted
            by clause (2) above. As of the Closing Date or the Subsequent
            Transfer Date, as applicable, the related Manufactured Home is, to
            the best of the Originator's and the Seller's knowledge, free of
            damage and in good repair. No Manufactured Home has suffered damage
            that is not covered by a Hazard Insurance Policy, including, but not
            limited to, hurricanes, earthquakes, floods, tornadoes,
            straight-line winds, sinkholes, mudslides, volcanic eruptions and
            other natural disasters.

                  (16)  No Liens. As of the Closing Date or the Subsequent
            Transfer Date, as applicable, there are no liens or claims which
            have been filed for work, labor or materials affecting the
            Manufactured Home or any related Mortgaged Property securing the
            Contract which are or may be liens prior to, or equal or coordinate
            with, the lien of the Contract.

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<PAGE>

                  (17)  Equal Installments. Each Contract with a fixed Contract
            Rate provides for level monthly payments which, if paid on each Due
            Date, fully amortize the loan over its term.

                  (18)  Enforceability. The Contract contains customary and
            enforceable provisions so as to render the rights and remedies of
            the holder thereof adequate for the realization against the
            collateral of the benefits of the security provided thereby.

                  (19)  One Original. There is only one original executed
            Contract (other than the original executed copy retained by the
            Obligor), which Contract has been delivered to the Trustee or the
            Custodian on or before the Closing Date or the Subsequent Transfer
            Date, as applicable

                  (20)  Loan-to-Value Ratio. At the time of their origination
            all of the Contracts had Loan-to-Value Ratios not greater than 100%.

                  (21)  Primary Resident. At the time of origination of the
            Contract the Obligor was the primary resident of the related
            Manufactured Home. In the case of the "Buy For" program, the Obligor
            has purchased the Manufactured Home for the primary resident. The
            "Buy For" program loans represent [___] Initial Contracts and [___]%
            of the Cut-off Date Principal Balance of the Initial Contracts as of
            the Cut-off Date.

                  (22)  Not Real Estate. With respect to each Contract other
            than a Land-and-Home Contract, the related Manufactured Home is not
            generally considered or classified as part of the real estate on
            which it is located under the laws of the jurisdiction in which it
            is located.

                  (23)  Notation of Security Interest. With respect to each
            Contract other than a Land-and-Home Contract, if the related
            Manufactured Home is located in a state in which notation of a
            security interest on the title document is required or permitted to
            perfect such security interest, the title document shows, or if a
            new or replacement title document with respect to such Manufactured
            Home is being applied for such title document will be issued within
            180 days and will show, the Seller or its assignee as the holder of
            a first priority security interest in such Manufactured Home; if the
            related Manufactured Home is located in a state in which the filing
            of a financing statement under the UCC is required to perfect a
            security interest in manufactured housing, such filings or
            recordings have been duly made and show the Seller or its assignee
            as secured party. If the related Manufactured Home secures a
            Land-and-Home Contract, such Manufactured Home is subject to a
            Mortgage properly filed in the appropriate public recording office
            or such Mortgage will be properly filed in the appropriate public
            recording office within 180 days, naming either the Originator or
            the Seller as mortgagee. In either case, the Trustee has the same
            rights as the secured party of record would have (if such secured
            party were still the owner of the Contract) against all

                                       51
<PAGE>

            Persons (including the Originator, the Seller and any trustee in
            bankruptcy of the Originator or the Seller) claiming an interest in
            such Manufactured Home.

                  (24)  Secondary Mortgage Market Enhancement Act. The related
            Manufactured Home is a "manufactured home" within the meaning of 42
            United States Code, Section 5402(6). Each manufactured housing
            dealer from whom the Seller purchased such Contract, if any, was
            then approved by the Seller in accordance with the requirements of
            the Secretary of Housing and Urban Development set forth in 24 CFR
            Section 201.27. At the origination of each Contract, the Originator
            was approved for insurance by the Secretary of Housing and Urban
            Development pursuant to Section 2 of the National Housing Act.

                  (25)  Qualified Mortgage. The Contract represents a "qualified
            mortgage" within the meaning of Section 860G(a)(3) of the Code. The
            Originator and the Seller represent and warrant, jointly and
            severally, that, either as of the date of origination or Closing
            Date, the fair market value of the property securing each Contract
            was not less than 80% of the "adjusted issue price" (within the
            meaning of the REMIC Provisions) of such Contract.

                  (26)  Simple Interest and Actuarial Contracts. No more than
            [___]% of the Initial Contracts are "simple interest" manufactured
            housing installment loan agreements or manufactured housing
            installment sales contracts and the remaining Initial Contracts are
            actuarial manufactured housing installment loan agreements or
            manufactured housing installment sales contracts.

                  (27)  Land-and-Home Contracts: No Contract other than a
            Land-and-Home Contract is secured, or intended to be secured, in
            whole or in part by the lien of a mortgage or deed of trust creating
            a first lien on an estate in fee simple in the real property.

                  (28)  Financing of Real Property: No Contract other than a
            Land-and-Home Contract has financed any amount in respect of real
            property.

      SECTION 3.03. Representations and Warranties Regarding Each Mortgage Loan.

      The Seller and the Originator represent and warrant, jointly and
severally, as of the Closing Date with respect to each Initial and Additional
Asset, and as of the applicable Subsequent Transfer Date with respect to each
Subsequent Asset identified in the Mortgage Loan Schedule attached to the
related Subsequent Transfer Instrument:

                  (1)   The information pertaining to each Mortgage Loan set
            forth in the Mortgage Loan Schedule was true and correct at the date
            or dates as of which such information was furnished.

                  (2)   Neither the Seller nor the Originator has assigned any
            interest or participation in any Mortgage Loan other than as
            contemplated in this Agreement (or if any such interest or
            participation has been assigned it has been released or will be
            released prior to or concurrently with the transfer of such Mortgage
            Loan

                                       52
<PAGE>

            pursuant to the Transfer Agreement, any Subsequent Transfer
            Agreement or this Agreement). Neither the Seller nor the Originator
            has acted to (i) modify any Mortgage Note or Mortgage relating to
            any Mortgage Loan in any material respect, (ii) satisfy, cancel or
            subordinate any Mortgage Loan in whole or in part, (iii) release the
            related Mortgaged Property in whole or in part from the lien of any
            Mortgage Loan or (iv) execute any instrument effecting the release,
            cancellation, modification or satisfaction of any Mortgage Loan.

                  (3)   The Mortgage Note for each Mortgage Loan delivered to
            the Seller, the Depositor or the Trustee is the original Mortgage
            Note and is the only Mortgage Note evidencing the Mortgage Loan that
            has been manually signed by the related Obligor. As of the Cut-off
            Date, there is no default, breach, violation or event of
            acceleration existing under any of the Mortgage Loan Documents
            transferred to the Trustee or any event that with notice and
            expiration of any grace or cure period would result in such a
            default, breach, violation or event of acceleration.

                  (4)   As of the applicable Cut-off Date, no Monthly Payment on
            any Mortgage Loan was more than [59] days delinquent.

                  (5)   Each Mortgage Note and Mortgage executed and delivered
            by an Obligor in connection with a Mortgage Loan has been duly
            executed and delivered by the related Obligor and constitutes a
            legal, valid and binding obligation of such Obligor, enforceable
            against such Obligor in accordance with its terms, subject, as to
            enforcement of remedies, to applicable bankruptcy, reorganization,
            insolvency or other similar laws affecting the enforcement of
            creditors' rights generally and to general principles of equity
            (whether considered in a proceeding at law or in equity).

                  (6)   Each Mortgage securing a Mortgage Loan has been duly
            recorded in the appropriate governmental recording office in the
            jurisdiction where the related Mortgaged Property is located or has
            been submitted to such recording office for recordation.

                  (7)   If the Mortgage securing a Mortgage Loan does not name
            the Originator or the Seller as the beneficiary or mortgagee, then a
            valid assignment, in recordable form, assigning the Mortgage to the
            Originator or the Seller, has been duly recorded (or has been sent
            for recordation) in the appropriate records depository for the
            jurisdiction in which the related Mortgaged Property is located, and
            the Originator or the Seller has delivered to the Seller the
            original of such assignment accompanied by appropriate evidence that
            such assignment has been duly recorded (or a copy thereof certified
            by the appropriate records depository to be a true and complete copy
            of the recorded assignment) or a copy of the original assignment
            together with a certificate from an officer of the Originator or the
            Seller certifying that such assignment has been sent for recordation
            in the appropriate records depository, but that such recorded
            assignment has not been returned to the Originator or the Seller.

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<PAGE>

                  (8)   No Mortgage Loan has been modified in any material
            respect since the date of its origination and no Mortgage Loan is
            presently subordinated in whole or in part to any other lien, nor
            has the Mortgaged Property securing any Mortgage Loan been released
            in whole or in part from the lien of the related Mortgage.

                  (9)   Each Mortgage contains customary and enforceable
            provisions which render the rights and remedies of the holder
            thereof adequate for the realization of the holder's rights against
            the related Mortgaged Property in the event of a foreclosure or
            trustee's sale of such property. Upon default by an Obligor on a
            Mortgage Loan and foreclosure on, or trustee's sale of, the related
            Mortgaged Property pursuant to proper procedures, the holder of the
            Mortgage Loan will be able to deliver good and merchantable title to
            the Mortgaged Property underlying that Mortgage Loan, except to the
            extent that the enforceability of remedies against such Obligor may
            be subject to applicable bankruptcy, insolvency or other similar
            laws affecting creditors' rights generally, and to general
            principles of equity (whether considered in a proceeding at law or
            in equity).

                  (10)  In connection with the origination of each Mortgage
            Loan, the originator complied with all applicable federal, state and
            local laws and regulations, including but not limited to those
            related to consumer credit, equal credit opportunity, real estate
            settlement procedures, truth-in-lending and usury.

                  (11)  Any appraisal of the Mortgaged Property underlying each
            Mortgage Loan was made at the time the Mortgage Loan was originated
            by an appraiser who met the minimum qualifications of Fannie Mae or
            Freddie Mac for appraisers of conventional residential mortgage
            loans.

                  (12)  The assignment of each Mortgage to the Trustee
            constitutes a legal, valid and binding assignment of the Mortgage
            and creates, or upon recordation will create, a valid first priority
            security interest in favor of the Trustee in such Mortgage or vests
            ownership of such Mortgage in the Trustee.

                  (13)  The Mortgage securing each Mortgage Loan creates a valid
            and enforceable first lien on the related Mortgaged Property subject
            only to Permitted Encumbrances. "Permitted Encumbrances" consist of
            the following in respect of any Mortgage Loan:

                        (A)   the lien of current real property taxes and
                              assessments not yet due and payable;

                        (B)   covenants, conditions and restrictions, rights of
                              way, easements and other matters of public record
                              as of the date of recording acceptable to prudent
                              mortgage lending institutions generally and
                              specifically referred to in either the title
                              opinion or the lender's title insurance policy

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<PAGE>

                              delivered to the related originator and referred
                              to or otherwise considered in the appraisal made
                              for the originator; and

                        (C)   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.

                  (14)  There are no mechanic's or other liens against the
            related Mortgaged Property which are superior to or equal to the
            first lien of the related Mortgage Loan, except such liens that are
            expressly insured against by a Title Insurance Policy.

                  (15)  There are no delinquent taxes, governmental assessments
            or municipal charges due and owing as to any Mortgaged Property.

                  (16)  Each Mortgaged Property is free of material damage and,
            to the best of the Servicer's knowledge, is in good repair. The
            Servicer is not aware of any condemnation proceedings with respect
            to any Mortgaged Property.

                  (17)  All improvements located on a Mortgaged Property that
            were considered in determining the appraised value of such Mortgaged
            Property lie within the boundary lines of, and comply with building
            restrictions applicable to, the Mortgaged Property. There is no
            violation of applicable zoning laws or regulations with respect to
            any Mortgaged Property. No improvements on adjoining properties
            encroach upon any Mortgaged Property in any respect so as to affect
            adversely the value or marketability of the Mortgaged Property.

                  (18)  Except with respect to Staged Funded Loans, the full
            principal amount of each Mortgage Loan has been paid to the related
            Obligor or according to the direction of the Obligor. The Obligor
            has no option under the related Mortgage to borrow additional funds
            secured by the related Mortgage from the applicable Servicer or any
            other person. The principal balance of each Mortgage Loan as of the
            Cut-off Date, as set forth in the Mortgage Loan Schedule, is correct
            and is secured solely by the related Mortgage.

                  (19)  Except with respect to any funds held in a temporary
            buy-down fund for a buy-down loan, no Mortgage Loan is 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 related Mortgage Note or 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.

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<PAGE>

                  (20)  Pursuant to the terms of each Mortgage, the Mortgaged
            Property is insured by an insurer acceptable to Fannie Mae against
            loss by fire and such other risks as are usually insured against by
            the broad form of extended coverage hazard insurance policy as is
            from time to time available. Such Mortgaged Property also is insured
            against flood hazards if the Mortgaged Property is in an area
            identified by the Secretary of Housing and Urban Development or the
            Director of the Federal Emergency Management Agency as subject to
            special flood hazards (and if flood insurance is available for real
            properties located in the area in which such Mortgaged Property is
            located). All such insurance policies (collectively, the "hazard
            insurance policy") meet the requirements of the current guidelines
            of the Federal Insurance Administration, conform to the Fannie Mae
            Sellers' Guide and the Fannie Mae Servicers' Guide, and collectively
            constitute a standard policy of insurance for the locale where the
            Mortgaged Property is located. The coverage provided by such a
            hazard insurance policy is in the amount of the lesser of (i) the
            full insurable value of the related Mortgaged Property on a
            replacement cost basis or (ii) the unpaid balance of the Mortgage
            Loan, and in any event must at least be sufficient to avoid
            application of any co-insurance clause contained in such hazard
            insurance policy. The hazard insurance policy names (and will name)
            the present owner of the Mortgaged Property as the insured and
            contains a standard mortgagee loss payable clause in favor of the
            originator (or another initial payee under the related Mortgage
            Note) and its successors and assigns, including the Seller, the
            Depositor and its successors and assigns. 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 holder'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.

                  (21)  Each Mortgage Loan is secured by a fee simple estate
            (or, if the Mortgaged Property is located in Hawaii or Maryland, a
            leasehold estate) and the related Mortgaged Property consists of a
            parcel of real property with a single family residence or a two- to
            four-family dwelling erected thereon.

                  (22)  Each 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 Fannie Mae or (ii) a Title
            Insurance Policy or other generally acceptable form of policy of
            insurance for the jurisdiction in which the related Mortgaged
            Property is located, issued by a title insurer qualified to do
            business in the jurisdiction where the related Mortgaged Property is
            located, insuring the initial mortgagee (or beneficiary in the case
            of a deed of trust) and its successors and assigns (including the
            Trustee) as to the first priority status of the lien created by the
            related Mortgage, subject only to Permitted Encumbrances (as defined
            above in paragraph (13), providing coverage in the amount of at
            least 95% of the outstanding principal amount of the Mortgage Loan
            and providing coverage against any loss by reason of the invalidity
            or unenforceability of the lien

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<PAGE>

            resulting from any provisions of the Mortgage providing for
            adjustment to the Mortgage Rate and Monthly Payment.

                  (23)  The Mortgage Loan was originated by a savings and loan
            association, savings bank, commercial bank, credit union, insurance
            company, or similar institution which is supervised and examined by
            a federal or state authority, or by a mortgagee approved by the
            Secretary of Housing and Urban Development pursuant to Sections 203
            and 211 of the National Housing Act.

                  (24)  For any Mortgage that constitutes a deed of trust, a
            trustee, authorized and duly qualified under applicable law to serve
            as such, has been properly designated and currently serves as such
            trustee and is named in the Mortgage, and no fees or expenses are or
            will become payable by the Seller, the Depositor or its assignees
            (including the Trustee) to the trustee under the deed of trust,
            except in connection with a trustee's sale after default by the
            Obligor.

                  (25)  Each Mortgage Loan is a "qualified mortgage" within the
            meaning specified for such term in section 860G of the Code and does
            not contain any provision requiring action that would render it not
            such a "qualified mortgage."

                  (26)  As of the date hereof, no property securing a Mortgage
            Loan is subject to foreclosure, litigation, bankruptcy or insolvency
            proceedings or any workout or foreclosure agreement, and, to the
            best of the Seller's and the Originator's knowledge, the filing of a
            bankruptcy or insolvency proceeding that would result in any
            Mortgage Loan becoming subject to bankruptcy or insolvency
            proceedings is not imminent.

                  (27)  If one or more REMIC elections are to be made with
            respect to all or part of the Trust, the REMIC Loan-to-Value Ratio
            of each Mortgage Loan is 125% or less either (i) at the time of its
            origination or as of the Startup Day or (ii) if such Mortgage Loan
            has been modified other than as a result of a default or reasonably
            foreseeable default, as of the Startup Day.

      The Mortgage Loan-to-Value Ratio is 100% or less either (i) at the time of
its origination or as of the Startup Day or (ii) if such Mortgage Loan has been
modified other than as a result of a default or reasonably foreseeable default,
as of the Startup Day.

      SECTION 3.04. Representations and Warranties Regarding the Assets in the
                    Aggregate.

      The Seller represents and warrants, as of the Closing Date with respect to
the Initial and Additional Assets, and as of each Subsequent Transfer Date with
respect to the related Subsequent Assets, that:

                  (1)   Amounts. The aggregate principal amounts payable by
            Obligors under the Assets as of the Cut-off Date equal the Cut-off
            Date Pool Principal Balance. The aggregate principal amounts payable
            by Obligors under the Initial Assets as of the Cut-off Date equal
            $[__________]. The aggregate principal

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<PAGE>

            amounts payable by Obligors under the Initial and Additional Assets
            as of the Cut-off Date equal $[_____________].

                  (2)   Characteristics of Initial and Additional Assets. The
            Initial and Additional Assets have the following characteristics as
            of the Cut-off Date:

                  (A)   the Obligors on not more than [_____]% of the Initial
                        and Additional Assets by Cut-off Date Pool Principal
                        Balance are located in any one state, the Obligors on
                        not more than [_____]% of the Assets by Cut-off Date
                        Pool Principal Balance are located in an area with the
                        same zip code and the Obligors on not more than [_____]%
                        of the Assets by Cut-off Date Pool Principal Balance are
                        located in California in an area with the same zip code;

                  (B)   no Initial or Additional Asset has a remaining maturity
                        of fewer than [_____] months or more than [_____]
                        months;

                  (C)   the final scheduled payment date on the Initial or
                        Additional Asset with the latest maturity is in
                        [___________];

                  (D)   [_____]% of the Initial and Additional Assets by Cut-off
                        Date Pool Principal Balance is attributable to loans for
                        purchases of new Manufactured Homes and approximately
                        [____]% is attributable to loans for purchases of used
                        Manufactured Homes;

                  (E)   [____]% of the Initial and Additional Assets by Cut-off
                        Date Pool Principal Balance is attributable to
                        Land-and-Home Assets;

                  (F)   the Weighted Average Net Asset Rate of the Initial and
                        Additional Assets as of the Cut-off Date is [_____]% per
                        annum;

                  (G)   [____]% of the Initial and Additional Assets by Cut-off
                        Date Pool Principal Balance is attributable to loans for
                        the purchase of multi-section Manufactured Homes;

                  (H)   the weighted average (by Cut-off Date Pool Principal
                        Balance) loan to value ratio of the Initial and
                        Additional Assets is [____]%;

                  (I)   no Initial or Additional Asset was originated before
                        [____________]; and

                  (J)   [____]% of the Initial and Additional Assets by Cut-off
                        Date Pool Principal Balance are secured by Manufactured
                        Homes located in a mobile home park.

                  (3)   Characteristics of All Assets. The Assets have the
            following characteristics as of the end of the Pre-Funding Period:

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<PAGE>

                  (A)   the Weighted Average Net Asset Rate is not less than
                        [___]%, and not more than [__]% of the Cut-off Date Pool
                        Principal Balance is attributable to Assets with an
                        Asset Rate of less than [__]%;

                  (B)   the weighted average (by Cut-off Date Pool Principal
                        Balance) Loan-to-Value Ratio of the Assets is not more
                        than [___]%;

                  (C)   not less than [___]% of the Cut-off Date Pool Principal
                        Balance is attributable to loans for purchases of new
                        Manufactured Homes;

                  (D)   not more than [___]% of the Cut-off Date Pool Principal
                        Balance is attributable to loans for the purchase of
                        single-section Manufactured Homes, and not less than
                        [___]% of the Cut-off Date Pool Principal Balance is
                        attributable to loans for the purchase of multi-section
                        Manufactured Homes;

                  (E)   not less than 1% of the Cut-off Date Pool Principal
                        Balance is attributable to Land-and-Home Assets;

                  (F)   not more than [___]% of the Cut-off Date Pool Principal
                        Balance is attributable to loans secured by Manufactured
                        Homes located in parks;

                  (G)   the final scheduled payment date on the Asset with the
                        latest maturity will not be later than the end of
                        [_______________];

                  (H)   the weighted average FICO score of the obligors is not
                        less than [___];

                  (I)   the number of refinancings relating to repossessions is
                        not greater than [___]%; and

                  (J)   no more than [___]% of the Assets will be secured by
                        Manufactured Homes located in the State of Texas.

                  (4)   Computer Tape. The Computer Tape made available by the
            Seller and the Originator was complete and accurate as of its date
            and includes a description of the same Assets that are described in
            the List of Assets, excluding any Assets subject to Principal
            Prepayments in Full.

                  (5)   Marking Records. By the Closing Date or Subsequent
            Transfer Date, as applicable, the Seller and the Originator have
            caused the portions of the Electronic Ledger relating to the Assets
            to be clearly and unambiguously marked to indicate that such Assets
            constitute part of the Trust and are owned by the Trust in
            accordance with the terms of the trust created hereunder.

                  (6)   No Adverse Selection. No adverse selection procedures
            have been employed in selecting the Assets.

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<PAGE>

      SECTION 3.05. Representations and Warranties Regarding the Asset Files.

      The Seller has represented and warranted to the Depositor in the Transfer
Agreement, which representations and warranties the Seller hereby assigns to the
Trustee for the benefit of the Certificateholders, as of the Closing Date with
respect to the Initial and Additional Assets, and as of each Subsequent Transfer
Date with respect to the related Subsequent Assets, that:

                  (1)   Bulk Transfer Laws. The transfer, assignment and
            conveyance of the Mortgage Loans, the Trustee Mortgage Loan Files,
            the Contracts, the Contract Files and Land-and-Home Contract Files
            by the Seller pursuant to the Transfer Agreement is not subject to
            the bulk transfer or any similar statutory provisions in effect in
            any applicable jurisdiction.

      SECTION 3.06.     Repurchase of Assets or Substitution of Assets for
                        Breach of Representations and Warranties.

      (a)   Either the Originator or the Seller (the "Responsible Party") shall
repurchase an Asset, at its Repurchase Price, not later than the last day of the
month prior to the month that is 90 days after the day on which the Originator,
the Seller, the Servicer or the Trustee first discovers a breach of a
representation or warranty of the Originator or the Seller set forth in Sections
3.01, 3.02, 3.03, 3.04 or 3.05 of this Agreement that materially adversely
affects the Trust's or the Certificateholders' interest in such Asset and which
breach has not been cured; provided, however, that (i) in the event that a party
other than the Seller or the Originator first becomes aware of such breach, such
discovering party shall notify the Seller in writing within five Business Days
of the date of such discovery and (ii) with respect to any Asset incorrectly
described on the Asset Schedule with respect to unpaid principal balance, which
either the Seller or the Originator would otherwise be required to repurchase
pursuant to this Section, either the Seller or the Originator may, in lieu of
repurchasing such Asset, deliver to the Servicer for deposit in the Collection
Account no later than the first Determination Date that is 90 or more days from
the date of such discovery cash in an amount sufficient to cure such deficiency
or discrepancy. Any such cash so deposited shall be distributed to
Certificateholders on the immediately following Distribution Date as a
collection of principal on such Asset. Notwithstanding any other provision of
this Agreement, the obligation of the Seller and the Originator under this
Section shall not terminate upon a Service Transfer pursuant to Article VII.
Notwithstanding the foregoing, the Responsible Party shall repurchase any
Land-and-Home Contract, at such Asset's Repurchase Price, or substitute for it
an Eligible Substitute Asset as described in Section 3.06(b), if the Seller has
failed to deliver the related Land-and-Home Contract File to the Trustee within
30 days of the Closing Date. Each of the parties to this Agreement acknowledge
that the provisions of this Section 3.06 are an obligation solely of the Seller
and the Originator and not of any other party to this Agreement.

      (b)   On or prior to the date that is the second anniversary of the
Closing Date, either the Seller or the Originator, at its election, may
substitute one or more Eligible Substitute Assets for any Assets that it is
obligated to repurchase pursuant to Section 3.06(a) (such Assets being referred
to as the "Replaced Assets") upon satisfaction of the following conditions:

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<PAGE>

            (i)   the Responsible Party shall have conveyed to the Trustee the
                  Assets to be substituted for the Replaced Assets and the Asset
                  Files related to such Assets and the Seller shall have marked
                  the Electronic Ledger indicating that such Assets constitute
                  part of the Trust;

            (ii)  the Assets to be substituted for the Replaced Assets are
                  Eligible Substitute Assets and the Responsible Party delivers
                  an Officers' Certificate, substantially in the form of Exhibit
                  L-2 hereto, to the Trustee certifying that such Assets are
                  Eligible Substitute Assets;

            (iii) the Responsible Party shall have delivered to the Trustee
                  evidence of filing of a UCC1 financing statement executed by
                  the Responsible Party as debtor, naming the Trustee as secured
                  party filed in the jurisdiction of formation of such
                  Responsible Party, listing such Assets as collateral, or shall
                  have delivered to the Depositor or the Trustee, as the case
                  may be, an amended Asset Schedule;

            (iv)  in respect of Eligible Substitute Assets that are
                  Land-and-Home Contracts:

                  (x)   the Responsible Party shall have delivered to the
            Depositor, the related Land-and-Home Contract Files; and

                  (y)   the Responsible Party shall have delivered to the
            Trustee an Opinion of Counsel satisfactory to the Trustee to the
            effect that the Trustee holds a perfected first priority lien in the
            real estate securing such Eligible Substitute Assets, or evidence of
            recordation of the assignment to the Trustee on behalf of the Trust
            of each Mortgage securing such Eligible Contracts;

            (v)   the Seller shall have delivered to the Trustee an Opinion of
                  Counsel to the effect that the substitution of such Assets for
                  such Replaced Assets will not cause the Subsidiary REMIC or
                  Master REMIC to fail to qualify as a REMIC at any time under
                  then applicable REMIC Provisions or cause any "prohibited
                  transaction" that will result in the imposition of a tax under
                  such REMIC Provisions; and

            (vi)  if the aggregate Principal Balance of such Replaced Assets is
                  greater than the aggregate Principal Balance of the Assets
                  being substituted, the Responsible Party shall have delivered
                  to the Servicer for deposit in the Collection Account the
                  amount of such excess and shall have included in the Officers'
                  Certificate required by clause (ii) above a certification that
                  such deposit has been made.

      Upon satisfaction of such conditions, the Trustee shall add such Assets
to, and delete such Replaced Assets from, the Asset Schedule. Such substitution
shall be effected prior to the first Determination Date that occurs more than 90
days after the Responsible Party becomes aware, or receives written notice from
the Trustee, of the breach referred to in Section 3.06(a). Promptly after any
substitution of an Asset, the Seller shall give written notice of such
substitution to Fitch and Moody's.

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<PAGE>

      (c)   Upon receipt by the Trust by deposit in the Collection Account of
the Repurchase Price under subsection (a) above, or the delivery of an Eligible
Substitute Asset pursuant to subsection (b) above, and upon receipt of a
certificate of a Servicing Officer in the form attached hereto as Exhibit L-1 or
L-2, the Trustee shall convey and assign to the Responsible Party all of the
Trust's right, title and interest in the repurchased Asset or Replaced Asset
without recourse, representation or warranty, except as to the absence of liens,
charges or encumbrances created by or arising as a result of actions of the
Trustee.

      (d)   The Responsible Party shall defend and indemnify the Trustee, its
officers, directors, employees and agents and the Certificateholders against all
costs, expenses, losses, damages, claims and liabilities, including reasonable
fees and expenses of counsel, arising out of any claims which may be asserted
against or incurred by any of them as a result of any third-party action arising
out of any breach of any representation and warranty.

      SECTION 3.07. No Repurchase or Substitution Under Certain Circumstances.

      Notwithstanding any provision of this Agreement to the contrary, no
repurchase or substitution pursuant to Section 3.06 shall be made unless the
Responsible Party obtains for the Trustee an Opinion of Counsel addressed to the
Trustee that any such repurchase or substitution would not, under the REMIC
Provisions, (i) cause the Subsidiary REMIC or the Master REMIC to fail to
qualify as a REMIC while any regular interest in the Subsidiary REMIC or the
Master REMIC, respectively, is outstanding, (ii) result in a tax on prohibited
transactions within the meaning of Section 860F(a)(2) of the Code or (iii)
constitute a contribution after the startup day subject to tax under Section
860G(d) of the Code. The Servicer shall attempt to obtain such Opinion of
Counsel. In the case of a repurchase or deposit pursuant to Section 3.06(a), the
Responsible Party shall, notwithstanding the absence of such opinion as to the
imposition of any tax as the result of such purchase or deposit, repurchase such
Asset or make such deposit and shall guarantee the payment of such tax by paying
to the Trustee the amount of such tax not later than five Business Days before
such tax shall be due and payable to the extent that amounts previously paid
over to and then held by the Trustee pursuant to Section 6.06 hereof are
insufficient to pay such tax and all other taxes chargeable under Section 6.06.
Pursuant to Section 6.06, the Trustee is hereby directed to withhold, and shall
withhold, an amount sufficient to pay such tax and any other taxes imposed on
"prohibited transactions" under Section 860F(a)(1) of the Code or imposed on
"contributions after start up date" under Section 860G(d) of the Code from
amounts otherwise distributable to Class R Certificateholders. The Servicer
shall give notice to the Trustee at the time of such repurchase of the amounts
due from the Responsible Party pursuant to the guarantee of the Responsible
Party described above and notice as to who should receive such payment.

      The Trustee shall have no obligation to pay any such amounts pursuant to
this Section other than from moneys provided to it by the Responsible Party or
from moneys held in the funds and accounts created under this Agreement. The
Trustee shall be deemed conclusively to have complied with this Section if it
follows the directions of the Responsible Party.

      In the event any tax that is guaranteed by the Responsible Party pursuant
to this Section 3.07 is refunded to the Trust or otherwise is determined not to
be payable, the

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<PAGE>

Responsible Party shall be repaid the amount of such refund or that portion of
any guarantee payment made by the Responsible Party that is not applied to the
payment of such tax.

                                   ARTICLE IV

      PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS

      SECTION 4.01. Custody of Assets.

      (a)   The Custodian on behalf of the Trustee shall maintain custody of the
Asset Files for the benefit of the Certificateholders. In the event that the
Trustee is no longer acting as Custodian of the Asset Files, upon execution and
delivery of an agreement between the Trustee and the Person assuming the duties
of the Trustee hereunder as Custodian with respect to the Asset Files, the
replacement Custodian shall concurrently execute an acknowledgment of receipt of
the Asset Files substantially in the form of Exhibit H hereto.

      (b)   The Custodian on behalf of the Trustee agrees to maintain the
related Asset Files at its office where they are currently maintained, or at
such other offices of the Custodian in the State of [_____________] as shall
from time to time be identified to the Trustee by written notice. The Custodian
may temporarily move individual Asset Files or any portion thereof without
notice as necessary to conduct collection and other servicing activities in
accordance with its customary practices and procedures.

      (c)   As Custodian, the Trustee shall have and perform the following
powers and duties:

            (i)   hold the Asset Files on behalf of the Certificateholders,
                  maintain accurate records pertaining to each Asset to enable
                  it to comply with the terms and conditions of this Agreement,
                  maintain a current inventory thereof and conduct annual
                  physical inspections of Asset Files held by it under this
                  Agreement;

            (ii)  implement policies and procedures, in writing and signed by an
                  Officer of the Custodian on behalf of the Trustee, with
                  respect to persons authorized to have access to the Asset
                  Files on the Custodian's premises and the receipting for Asset
                  Files taken from their storage area by an employee of the
                  Custodian for purposes of servicing or any other purposes; and

            (iii) attend to all details in connection with maintaining custody
                  of the Asset Files on behalf of the Certificateholders.

      (d)   In performing its duties under this Section, the Custodian on behalf
of the Trustee agrees to act with reasonable care, using that degree of skill
and care that it exercises with respect to similar Assets or files for which it
performs custodial duties. In acting as Custodian of the Asset Files, the
Trustee agrees further not to assert any beneficial ownership interests in the
Assets or the Asset Files.

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<PAGE>

      (e)   If any Mortgage or an Assignment of a Mortgage to the Trustee or any
prior Assignment is in the process of being recorded on the Closing Date, the
Seller shall cause each such original recorded document or certified copy
thereof, to be delivered to the Trustee or its Custodian promptly following its
recordation. The Seller shall also cause to be delivered to the Trustee any
other original Mortgage Loan Document to be included in the Trustee Mortgage
Loan File if a copy thereof initially was delivered.

      (f)   For administrative convenience and facilitation of servicing and to
reduce closing costs, the Assignments of Mortgage for each Land-and-Home
Contract shall not be required to be submitted for recording; provided, however,
that each Assignment of Mortgage for each Land-and-Home Contract shall be
submitted for recording by the Seller, at its expense and at the direction of
the Servicer, in the name of the Trustee, at no expense to the Issuer or the
Trustee, upon the occurrence of a bankruptcy or insolvency proceeding instituted
by the Servicer, or the continuance of such a proceeding against the Servicer
instituted by another party, unstayed, for 60 days. Upon receipt of written
notice that recording of the Assignments of Mortgage is required pursuant to the
condition set forth in the preceding sentence, the Seller shall be required to
deliver such Assignments of Mortgage within 60 days following receipt of such
notice.

      The Seller promptly shall (within 60 Business Days following the date it
becomes required to submit Assignments of Mortgage for each Land-and-Home
Contract for recording pursuant to this Section 4.01(f)) submit or cause to be
submitted for recording, at no expense to the Purchaser (or the Trust Estate or
the Trustee), in the appropriate public office for real property records, each
Assignment of Mortgage for each Land-and-Home Contract and shall execute each
original Assignment of Mortgage in the following form: "[_________________], as
Trustee under the applicable agreement." In the event that any such Assignment
of Mortgage is lost or returned unrecorded because of a defect therein, the
Seller promptly shall prepare a substitute Assignment of Mortgage or cure such
defect, as the case may be, and thereafter cause each such Assignment of
Mortgage to be duly recorded.

      (g)   In lieu of recording an Assignment of any Mortgage for any Mortgage
Loan, the Seller may deliver or cause to be delivered to the Trustee the
Assignment of the Mortgage from the Seller to the Trustee in a form suitable for
recordation, together with an Opinion of Counsel to the effect that recording is
not required to protect the Trustee's right, title and interest in and to the
related Mortgage Loan or, in case a court should recharacterize the sale of the
Mortgage Loans as a financing, to perfect a first priority security interest in
favor of the Trustee in the related Mortgage Loan. In the event that the
Servicer receives notice that recording is required to protect the right, title
and interest of the Trustee in and to any such Mortgage Loan for which
recordation of an Assignment has not previously been required, the Servicer
shall promptly notify the Trustee and the Trustee shall within five Business
Days of its receipt of such notice deliver, or cause to be delivered, each
previously unrecorded Assignment to the Servicer for recordation.

      (h)   [The Servicer shall maintain custody of the Servicer Mortgage Loan
Files for the benefit of the Trustee on behalf of the Certificateholders.] [The
Servicer shall maintain custody of the Contract Files for the benefit of the
Certificateholders. The Servicer, by its execution of the Pooling and Servicing
Agreement, agrees to, and shall, retain possession of the Contract File
pertaining to each of the Contracts on behalf of the Certificateholders and the
Trustee. Without

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limiting the foregoing, the Trustee acknowledges that, with respect to each
Contract secured by a Manufactured Home located in Virginia as to which the
Trustee is identified as first lienor on the related certificate of title, for
purposes of Section 46.2-641 of the Virginia Code (as currently in effect), the
Servicer is holding such Contract and the related certificate of title as the
bailee and agent for the Trustee as such first lienor.]

      SECTION 4.02. Filings.

      Within 7 days following the Closing Date, the Seller shall cause the UCC1
financing statement referred to in Section 2.02(8) to be filed. The initial
Servicer shall cause to be filed all necessary continuation statements of the
UCC1 financing statement to be filed by the Depositor with the Depositor as
Debtor and the Trustee as Secured Party. From time to time the initial Servicer
shall take and cause to be taken such actions and execute such documents as are
necessary to perfect and protect the Certificateholders' interest in the Assets
and their proceeds and the Manufactured Homes and Mortgaged Property against all
other persons, including, without limitation, the filing of financing
statements, amendments thereto and continuation statements, the execution of
transfer instruments and the making of notations on or taking possession of all
records or documents of title. The initial Servicer will maintain the Trustee's
first priority perfected security interest in each Manufactured Home and a first
lien on each Mortgaged Property so long as the related Asset is property of the
Trust.

      SECTION 4.03. Name Change or Relocation.

      (a)   During the term of this Agreement, the Seller shall not change its
name, identity or structure or relocate its chief executive office or its place
of formation without first giving notice thereof to the Trustee and the
Servicer. In addition, following any such change in the name, identity,
structure or location of the chief executive office or its place of
incorporation of the Seller, the Seller shall give written notice of any such
change to Fitch and Moody's.

      (b)   If any change in the Seller's name, identity or structure or the
relocation of its chief executive office or its place of formation would make
any financing or continuation statement or notice of lien filed under this
Agreement seriously misleading within the meaning of applicable provisions of
the UCC or any title statute or would cause any such financing or continuation
statement or notice of lien to become unperfected (whether immediately or with
lapse of time), the Seller, no later than five days after the effective date of
such change, shall file, or cause to be filed, such amendments or financing
statements as may be required to preserve, perfect and protect the
Certificateholders' interest in the Assets and proceeds thereof and in the
Manufactured Homes and Mortgaged Property.

      SECTION 4.04. Chief Executive Office and Place of Formation.

      During the term of this Agreement, the Seller will maintain its chief
executive office and its place of formation in one of the States of the United
States.

      SECTION 4.05. Costs and Expenses.

      The initial Servicer agrees to pay all reasonable costs and disbursements
in connection with the perfection and the maintenance of perfection, as against
all third parties, of the

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Certificateholders' right, title and interest in and to the Assets (including,
without limitation, the security interests in the Manufactured Homes and
Mortgaged Property granted thereby).

                                   ARTICLE V

                               SERVICING OF ASSETS

      SECTION 5.01. Responsibility for Asset Administration.

      The Servicer will have the sole obligation to manage, administer, service
and make collections on the Assets and perform or cause to be performed all
contractual and customary undertakings of the holder of the Assets to the
Obligor. At the written request of the Servicer, accompanied by the form of
power of attorney or other documents being requested, the Trustee shall furnish
to the Servicer any powers of attorney and other documents necessary or
appropriate to enable the Servicer to carry out its servicing and administrative
duties hereunder, and the Trustee shall not be held responsible for any acts by
the Servicer in its uses of any such powers of attorney or other document. The
Servicer shall indemnify the Trustee for any reasonable costs, liabilities and
expenses (including reasonable attorneys' fees) incurred by the Trustee in
connection with the intentional or negligent misuse of such power of attorney by
the Servicer, as applicable. Notwithstanding anything contained herein to the
contrary, the Servicer shall not without the Trustee's written consent (i)
initiate any action, suit or proceeding solely under the Trustee's name without
indicating the Servicer's representative capacity or (ii) knowingly cause the
Trustee to be registered to do business in any state, provided, however, that
the preceding clause (i) shall not apply to the initiation of actions relating
to Assets that the Servicer is servicing pursuant to its respective duties
herein. The limitations of the preceding clause shall not be construed to limit
any duty or obligation imposed on the Trustee under any other provision of this
Agreement. Origen Servicing, Inc. is hereby appointed the Servicer until such
time as any Service Transfer shall be effected under Article VII.

      SECTION 5.02. Standard of Care.

      In managing, administering, servicing and making collections on the Assets
pursuant to this Agreement, the Servicer will exercise that degree of skill and
care consistent with the highest degree of skill and care that the Servicer
exercises with respect to similar Assets serviced by the Servicer; provided,
however, that (i) such degree of skill and care shall be at least as favorable
as the degree of skill and care generally applied by servicers of manufactured
housing installment sales contracts for institutional investors and (ii)
notwithstanding the foregoing, the Servicer shall not release or waive the right
to collect the unpaid balance on any Asset unless it makes the determination
that acceptance of the Liquidation Proceeds from the related Obligor would
result in the Trust receiving a greater amount of collections that the Net
Liquidation Proceeds that would result from repossessing and liquidating the
related Manufactured Home or from foreclosure upon the related Mortgaged
Property.

      SECTION 5.03. Records.

      The Servicer shall, during the period it is servicer hereunder, maintain
such books of account and other records as will enable the Trustee to determine
the status of each Asset.

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      SECTION 5.04. Inspection; Electronic File.

      (a)   At all times during the term hereof, the Servicer shall afford the
Trustee and its authorized agents reasonable access during normal business hours
to the Servicer's records, which have not previously been provided to the Trust,
relating to the Assets and will cause its personnel to assist in any examination
of such records by the Trustee or its authorized agents. The examination
referred to in this Section will be conducted in a manner which does not
unreasonably interfere with the Servicer's normal operations or customer or
employee relations. Without otherwise limiting the scope of the examination the
Trustee may make, the Trustee may, using generally accepted audit procedures,
verify the status of each Asset and review the Electronic Ledger and records
relating thereto for conformity to Monthly Reports prepared pursuant to Article
VI and compliance with the standards represented to exist as to each Asset in
this Agreement.

      (b)   At all times during the term hereof, the Servicer shall keep
available a copy of the Asset Schedule at its principal executive office for
inspection by Certificateholders.

      (c)   On or before the fourth Business Day prior to each Distribution
Date, the Servicer will determine the amount available to be remitted to the
Distribution Account for the applicable Distribution Date and will provide to
the Trustee and the Backup Servicer an electronic file (the "Electronic File")
setting forth such amount and any other information necessary for the Trustee to
perform the calculations required hereunder and prepare the Monthly Report. The
Trustee will be entitled to rely on information supplied by the Servicer without
independent verification.

      SECTION 5.05. Collection Account.

      (a)   On or before the Closing Date, the Servicer shall establish the
Collection Account on behalf of the Trust, which must be an Eligible Account and
notify the Trustee and the Backup Servicer of the location of the Collection
Account. The Collection Account shall be entitled "Origen Servicing, Inc., for
the benefit of [_____________________________________] as Trustee for the
benefit of holders of [Origen [______] Residential Pass-Through Certificates,
Series 200[_] - [__]]. The Servicer shall pay into the Collection Account as
promptly as practicable (not later than the second Business Day) following
receipt thereof:

            (i)   all payments received after the Cut-Off Date on account of
                  principal on the Assets and all Principal Prepayments
                  collected after the Cut-Off Date;

            (ii)  all payments received or advanced after the Cut-Off Date on
                  account of interest on the Assets;

            (iii) all Net Liquidation Proceeds;

            (iv)  all Insurance Proceeds unless to be used to directly offset
                  the cost of repairing the related property;

            (v)   any amounts payable in connection with the repurchase of any
                  Asset pursuant to Section 3.06; and

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<PAGE>

            (vi)  any other amount required to be deposited in the Collection
                  Account pursuant to this Agreement;

      provided, however, that with respect to each Due Period, the Servicer
shall be permitted to retain the Monthly Servicing Fee for such Due Period from
payments in respect of interest on the Assets in accordance with Section 8.02
hereof. The foregoing requirements respecting deposits to the Collection Account
are exclusive, it being understood that, without limiting the generality of the
foregoing, the Servicer need not deposit in the Collection Account amounts
representing late payment fees, assumption fees, extension fees or escrow
deposits payable by Obligors, which amounts shall be property of the Servicer.
All amounts paid into the Collection Account under this Agreement shall be held
in trust for the Trustee and the Certificateholders until payment or withdrawal
of any such amounts is authorized under this Agreement.

      If the Servicer so directs, the institution maintaining the Collection
Account shall, in the name of the Trustee in its capacity as such, invest the
amounts in the Collection Account in Eligible Investments that mature not later
than one Business Day prior to the next succeeding Distribution Date. All income
and gain from such investments shall be payable to the Servicer. An amount equal
to any net loss on such investments shall be deposited in the Collection Account
by the Servicer out of its own funds immediately as realized [provided that if
the Backup Servicer succeeds to the servicing rights and responsibilities, it
shall have no obligation or responsibility for any losses occasioned by or
arising from the prior Servicer's investments.] The Trustee shall in no way be
liable for losses on amounts invested in accordance with the provisions hereof.
Funds in the Collection Account not so invested must be insured to the extent
permitted by law by the Federal Deposit Insurance Corporation.

      (b)   If at any time the Servicer receives notice (from a Rating Agency or
the Trustee or otherwise) that the Collection Account has ceased to be an
Eligible Account, the Servicer must, as soon as practicable but in no event
later than 5 Business Days of the Servicer's receipt of such notice, transfer
the Collection Account and all funds and Eligible Investments therein to an
Eligible Account. Following any such transfer, the Servicer must notify each
Rating Agency and the Trustee of the location of the Collection Account.

      SECTION 5.06. Enforcement.

      (a)   The Servicer shall, consistent with customary servicing procedures
and the terms of this Agreement, act with respect to the Assets in such manner
as, in the Servicer's reasonable judgment, will maximize the receipt of
principal and interest on such Assets and Liquidation Proceeds with respect to
Liquidated Assets.

      (b)   The Servicer may sue to enforce, initiate a replevin action, or
collect upon Assets, in its own name, if possible, or as agent for the Trust.

      (c)   The Servicer shall exercise any rights of recourse against third
persons that exist with respect to any Asset in accordance with the Servicer's
usual practice. In exercising recourse rights, the Servicer is authorized on the
Trustee's behalf to reassign the Asset or to resell the related Manufactured
Home or Mortgaged Property to the person against whom recourse exists at the
price set forth in the document creating the recourse.

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      (d)   The Servicer may grant to the Obligor on any Asset any rebate,
refund or adjustment out of the Collection Account that the Servicer in good
faith believes is required because of prepayment in full of the Asset. The
Servicer will not permit any rescission or cancellation of any Asset, except as
required by applicable law or regulation or upon the order of any court or other
governmental authority asserting jurisdiction in a suit, claim or complaint
involving the Asset.

      (e)   The Servicer may, consistent with its customary servicing procedures
and consistent with Section 5.02, grant to the Obligor on any Asset an extension
of payments due under such Asset; provided, that Obligors may not be solicited
for extensions, no such extension may extend beyond the final scheduled payment
date of the Asset with the latest maturity, as specified in Section 3.04(2)(c),
and no more than three one-month extensions for any one Asset of payments under
an Asset may be granted in any twelve-month period. Notwithstanding the
foregoing, in connection with an Asset that is in default or for which default
is imminent, the Servicer may, consistent with the servicing standard described
in Section 5.01, waive, modify or vary any term of that Asset (including
modifications that change the Asset Rate, forgive the payment of principal or
interest or extend the final maturity date of that Asset), accept payment from
the related Obligor of an amount less than the Principal Balance in final
satisfaction of that Asset, or consent to the postponement of strict compliance
with any such term or otherwise grant the indulgence to any Obligor if in the
Servicer's determination such waiver, modification, postponement or indulgence
is not materially adverse to the interests of the Certificateholders (taking
into account any estimated loss that might result absent such action). However,
the Servicer cannot extend the maturity of any Asset past the date on which the
final payment is due on the latest maturing Asset as of the related Cut-off
Date. In the event of any such arrangement, the Servicer shall make Advances on
the related Asset in accordance with Section 8.04 during the scheduled period in
accordance with the amortization schedule of the Asset without modification
thereof because of the arrangements.

      (f)   The Servicer may enforce any due-on-sale clause in an Asset if such
enforcement is called for under its then current servicing policies for
obligations similar to the Assets; provided, that such enforcement is permitted
by applicable law and will not adversely affect any applicable insurance policy.
If an assumption of an Asset is permitted by the Servicer upon conveyance of the
related Manufactured Home, the Servicer shall use its best efforts to obtain an
assumption agreement in connection therewith and add such assumption agreement
to the related Mortgage Loan File, Contract File or Land-and-Home Contract File.

      (g)   Any provision of this Agreement to the contrary notwithstanding, the
Servicer shall not agree to the modification or waiver of any provision of an
Asset if such modification or waiver would be treated as a taxable exchange
under the REMIC Provisions.

      SECTION 5.07. Trustee to Cooperate.

      (a)   Upon payment in full on any Asset, the Servicer will notify the
Trustee and the Seller on the next succeeding Distribution Date by certification
of a Servicing Officer (which certification shall include a statement to the
effect that all amounts received in connection with such payments which are
required to be deposited in the Collection Account pursuant to Section 5.05 have
been so deposited). The Servicer is authorized to execute an instrument in
satisfaction

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<PAGE>

of such Asset and to do such other acts and execute such other documents as the
Servicer deems necessary to discharge the Obligor thereunder and eliminate the
lien on the related real estate and collateral. The Servicer shall determine
when an Asset has been paid in full; to the extent that insufficient payments
are received on an Asset credited by the Servicer as prepaid or paid in full and
satisfied, the shortfall shall be paid by the Servicer out of its own funds;
provided, that the Servicer may reimburse itself for such shortfall payment from
the Collection Account if the Servicer corrects the error and receives amounts
in respect of such shortfall payment from future collections with respect to
such Asset.

      (b)   From time to time as appropriate for servicing and foreclosure in
connection with any Land-and-Home Contract, the Trustee shall, upon written
request of a Servicing Officer and delivery to the Trustee of a receipt signed
by such Servicing Officer, at the expense of the Servicer, cause the original
Land-and-Home Contract and the related Land-and-Home Contract File to be
released to the Servicer and shall execute such documents as the Servicer shall
deem necessary to the prosecution of any such proceedings. The Trustee shall
stamp the face of each such Land-and-Home Contract to be released to the
Servicer with a notation that the Land-and-Home Contract has been assigned to
the Trustee. Upon request of a Servicing Officer, the Trustee shall perform such
other acts as reasonably requested by the Servicer and otherwise cooperate with
the Servicer in enforcement of the Certificateholders' rights and remedies with
respect to Assets. The Trustee shall not be liable for the performance of any
such acts at the request of the Servicer.

      (c)   The Servicer's receipt of a Land-and-Home Contract and/or
Land-and-Home Contract File shall obligate the Servicer to return the original
Land-and-Home Contract and the related Land-and-Home Contract File to the
Trustee when its need by the Servicer has ceased unless the Asset shall be
liquidated or repurchased or replaced as described in Section 3.06.

      SECTION 5.08. Costs and Expenses.

      All costs and expenses incurred by the Servicer in carrying out its duties
hereunder, including all fees and expenses incurred in connection with the
enforcement of Assets (including enforcement of defaulted Assets and
repossessions of Manufactured Homes or Mortgaged Property securing such Assets)
shall be paid by the Servicer and the Servicer shall not be entitled to
reimbursement hereunder, except to the extent specifically provided herein.
Furthermore, the Servicer shall be reimbursed out of the Liquidation Proceeds of
a Liquidated Asset for Liquidation Expenses incurred by it. The Servicer shall
not incur such Liquidation Expenses unless it determines in its good faith
business judgment that incurring such expenses will increase the Net Liquidation
Proceeds on the related Asset.

      SECTION 5.09. Maintenance of Insurance.

      (a)   Except as otherwise provided in subsection (b) of this Section 5.09,
the Servicer shall cause to be maintained with respect to each Asset one or more
Hazard Insurance Policies which provide, at a minimum, the same coverage as a
standard form fire and extended coverage insurance policy that is customary for
manufactured housing or residential real property, as applicable, issued by a
company authorized to issue such policies in the state in which the related
Manufactured Home or Mortgaged Property is located and in an amount which is not
less than

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the maximum insurable value of such Manufactured Home or Mortgaged Property or
the principal balance due from the Obligor on the related Asset, whichever is
less; provided, however, that the amount of coverage provided by each Hazard
Insurance Policy shall be sufficient to avoid the application of any
co-insurance clause contained therein; and provided, further, that such Hazard
Insurance Policies may provide for customary deductible amounts. With respect to
any Asset, the Seller shall obtain (i) a statement from the Obligor's insurance
agent that the Manufactured Home or Mortgaged Property was, at the time of
origination of the Contract or the Mortgage Loan, not in a federally designated
special flood hazard area, or (ii) evidence that, at the time of origination,
flood insurance was in effect, which coverage was at least equal to the minimum
amount specified in the preceding sentence or such lesser amount as may be
available under the federal flood insurance program. Each Hazard Insurance
Policy caused to be maintained by the Servicer shall contain a standard loss
payee clause in favor of the Servicer and its successors and assigns. If any
Obligor is in default in the payment of premiums on its Hazard Insurance Policy
or Policies, the Servicer shall force place coverage and pay such premiums out
of its own funds and may separately add such premium to the Obligor's obligation
as provided by the Asset, but shall not add such premium to the remaining
principal balance of the Contract. If the Obligor does not reimburse the
Servicer for payment of such premiums and the related Contract or Mortgage Loan
is liquidated after a default, the Servicer shall be reimbursed for its payment
of such premiums out of the related Liquidation Proceeds, and if such advance
for insurance premiums is deemed by the Servicer to be nonrecoverable in its
reasonable opinion, the Servicer may reimburse itself from the Collection
Account for such Nonrecoverable Advance.

      (b)   The Servicer may, in lieu of causing individual Hazard Insurance
Policies to be maintained with respect to each Manufactured Home or Mortgaged
Property pursuant to subsection (a) of this Section 5.09, and shall, to the
extent that the related Contract does not require the Obligor to maintain a
Hazard Insurance Policy with respect to the related Manufactured Home, maintain
one or more blanket insurance policies covering losses on the Obligor's interest
in the Contracts or Mortgage Loans resulting from the absence or insufficiency
of individual Hazard Insurance Policies. Any such blanket policy shall be
substantially in the form and in the amount carried by the Servicer as of the
date of this Agreement. The Servicer shall pay the premium for such policy on
the basis described therein and shall deposit into the Collection Account from
its own funds any deductible amount with respect to claims under such blanket
insurance policy relating to the Contracts or the Mortgage Loans. The Servicer
shall not, however, be required to deposit any deductible amount with respect to
claims under individual Hazard Insurance Policies maintained pursuant to
subsection (a) of this Section. If the insurer under such blanket insurance
policy shall cease to be acceptable to the Servicer, the Servicer shall exercise
its best reasonable efforts to obtain from another insurer a replacement policy
comparable to such policy.

      (c)   With respect to each Manufactured Home that has been repossessed in
connection with a defaulted Contract, the Servicer shall either (i) maintain one
or more Hazard Insurance Policies thereon or (ii) self-insure such Manufactured
Homes and deposit into the Collection Account from its own funds any losses
caused by damage to such Manufactured Home that would have been covered by a
Hazard Insurance Policy.

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<PAGE>

      (d)   The Servicer shall keep in force throughout the term of this
Agreement (i) a policy or policies of insurance covering errors and omissions
for failure to maintain insurance as required by this Agreement and (ii) a
fidelity bond. Such policy or policies and such fidelity bond shall be in such
form and amount as is generally customary among Persons which service a
portfolio of manufactured housing installment sales Assets and installment loan
agreements having an aggregate principal amount of $100,000,000 or more and
which are generally regarded as servicers acceptable to institutional investors.

      (e)   [The Servicer must maintain a Primary Mortgage Insurance Policy in
full force and effect on each Mortgage Loan, if any, which is identified in the
related Transfer Agreement as being covered by a Primary Mortgage Insurance
Policy. Any such Primary Mortgage Insurance Policy must insure the portion of
the Unpaid Principal Balance of the related Mortgage Loan that exceeds 75% of
the value of the related Mortgaged Property (as set forth in the appraisal
obtained in connection with origination of the Mortgage Loan) (the Mortgaged
Property's "Initial Value") unless such Primary Mortgage Insurance coverage has
been waived in writing by the Depositor at the time it purchases the Mortgage
Loan or such Primary Mortgage Insurance is canceled under the circumstances
described below. If a covered Mortgage Loan provides for negative amortization
or the potential for negative amortization, the Primary Mortgage Insurance
Policy must also insure any increase in the Unpaid Principal Balance of the
Mortgage Loan from the original principal balance of the related Mortgage Note.
In the event that the rating assigned by any Rating Agency for any of the
Certificates to the claims-paying ability of any related Mortgage Insurer is
reduced subsequent to the issuance of the Certificates, the Servicer will use
its best efforts to replace each Primary Mortgage Insurance Policy issued by the
downgraded Mortgage Insurer with a new Primary Mortgage Insurance Policy issued
by an insurer whose claims-paying ability is acceptable to the Depositor. The
premium for any replacement policy shall not exceed the premium for any replaced
policy.

      The Servicer may cancel the Primary Mortgage Insurance Policy maintained
with respect to any Mortgage Loan at the related Mortgagor's request if the
following conditions are met:

                  (1)   The current Mortgage Loan-to-Value Ratio of the mortgage
            Loan must be 80% or less. The current Mortgage Loan-to-Value Ratio
            must be calculated by dividing the Unpaid Principal Balance of the
            Mortgage Loan by the Initial Value of the related Mortgaged
            Property;

                  (2)   The Mortgage Loan may not have been 30 days or more
            delinquent at any time within the preceding twelve months; and

                  (3)   There may not have been any other default under the
            terms of the Mortgage Loan at any time during the preceding twelve
            months; provided, however, that the Servicer shall cancel or release
            any Primary Mortgage Insurance Policy maintained with respect to any
            Mortgage Loan to the extent required under applicable law.]

      (f)   [The Servicer must take all steps necessary to ensure the payment by
each Mortgage Insurer of the maximum benefits available under the terms of the
related Primary Mortgage Insurance Policy. The Servicer must work diligently
with the Mortgage Insurer to

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determine whether such insurer will settle a claim under a Primary Mortgage
Insurance Policy by taking title to the related Mortgaged Property or in some
other manner. Upon receipt of any proceeds of a Primary Mortgage Insurance
Policy, the Servicer must deposit such proceeds into the Collection Account in
accordance with Section 5.05.]

      SECTION 5.10. Repossession.

      Notwithstanding the standard of care specified in Section 5.02, the
Servicer shall commence procedures for the repossession of, the foreclosure upon
or other comparable conversion of the ownership of any Manufactured Home or
Mortgaged Property or take such other steps that in the Servicer's reasonable
judgment will maximize the receipt of principal and interest or Net Liquidation
Proceeds with respect to the Asset secured by such Manufactured Home or
Mortgaged Property (which may include retitling or filing a recorded assignment
of the Mortgage) subject to the requirements of the applicable state and federal
law, promptly after the time when such Asset becomes a Defaulted Contract or
defaulted Mortgage Loan and may do so sooner; provided, that if the Servicer has
actual knowledge that a Mortgaged Property is affected by hazardous waste, then
the Servicer shall not cause the Trustee to acquire title to such Mortgaged
Property in a repossession, foreclosure or similar proceeding. For purposes of
the proviso in the preceding sentence, the Servicer shall not be deemed to have
actual knowledge that the site on which the Manufactured Home is situated or a
Mortgage Property is affected by hazardous waste unless it shall have received
written notice that hazardous waste is present on such property. In connection
with such foreclosure or other conversion, the Servicer shall follow such
practices and procedures as it shall deem necessary or advisable and as shall be
consistent with Section 5.02. 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 issued to the Trustee, as Trustee, or, at its
election, to its nominee on behalf of the Trustee, as Trustee.

      The Servicer shall not complete, or allow to be completed, a repossession
or foreclosure with respect to any Ineligible Foreclosure Property Asset if it
would cause the Trust to hold such repossessed property from Ineligible
Foreclosure Property Assets with an aggregate value in excess of 0.75% of the
aggregate outstanding balance of the Assets as of the end of the prior Due
Period unless the Trustee has been supplied with an Opinion of Counsel, at the
expense of the Trust, to the effect that if the related property is acquired by
the Trust, such property will qualify as "foreclosure property" within the
meaning of Section 860G(a)(8) of the Code. If the value of properties from
Ineligible Foreclosure Property Assets equals or exceeds 1% of the outstanding
principal balance of the Assets as of the end of the prior Due Period, the
initial Servicer shall purchase at the Purchase Price on or prior to the
Distribution Date for such Due Period sufficient property from Ineligible
Foreclosure Property Assets to cause the Trust Fund to hold property from
Ineligible Foreclosure Property Assets with a value of less than 1% of the
outstanding principal balance of the Assets and such proceeds shall be treated
as received during the Due Period. For purposes of this paragraph the value of
property from an Ineligible Foreclosure Property Asset shall be treated as equal
to the principal balance of the related Ineligible Foreclosure Property Asset
plus interest that had accrued on such Asset as of the date of acquisition of
the property by the Trust Fund.

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      SECTION 5.11. Title, Conservation, and Disposition of Repo Property and
                    REO Property.

      (a)   The Servicer shall maintain, protect, and insure any Repo Property
or REO Property acquired pursuant to Sections 5.06 or 5.10 hereof, on behalf of
the Trust, in accordance with standard industry practice solely for the purpose
of its prompt disposition and sale and with a view toward maximizing the amount
of principal and interest recovered on the Assets. During any period in which
the Trust holds a Repo Property or REO Property, the Servicer shall not (1)
lease the Repo Property or REO Property, (2) authorize or permit any
construction on the Repo Property or REO Property, other than the completion of
a building or improvement thereon, and then only if more than 10% of the
construction of such building or other improvement was completed before default
on the related Asset became imminent, all within the meaning of section
856(e)(4)(B) of the Code, or (3) allow the Repo Property or REO Property to be
used in any trade or business conducted by the Trust. If one or more REMIC
elections are made with respect to the assets of the Trust, the Servicer shall
use its best efforts to dispose of such Repo Property or REO Property for its
fair market value by the end of the tenth month of the third calendar year
following the end of the calendar year in which the Repo Property or REO
Property was acquired by the Trust (the "REO Holding Period"), pursuant to the
Servicer's ordinary commercial practices. If the Servicer is unable to sell such
Repo Property or REO Property in the course of its ordinary commercial practices
within the REO Holding Period, the Servicer shall (a) purchase such Repo
Property or REO Property at a price equal to such Repo Property's or REO
Property's fair market value or (b) auction such Repo Property or REO Property
to the highest bidder in an auction reasonably designed to produce a fair price
(an "Auction") that takes place within one month after the end of the REO
Holding Period. If the Servicer and the Trustee either (1) receive an Opinion of
Counsel indicating that, under then-current law, the REMIC may hold Repo
Property or REO Property associated with a REMIC Asset for a period longer than
the REO Holding Period without threatening the REMIC status of any related REMIC
or causing the imposition of a tax upon any such REMIC or (2) the Servicer
applies for and is granted an extension of the REO Holding Period pursuant to
Code sections 860G(a)(8) and 856(e)(3) (the applicable period provided pursuant
to such Opinion of Counsel or such Code section being referred to herein as an
"Extended Holding Period"), upon the direction of the Depositor or the Trustee,
the Servicer shall continue to attempt to sell such Repo Property or REO
Property pursuant to its ordinary commercial practices until the date two months
prior to the expiration of the Extended Holding Period. If no REMIC election has
been made or is to be made with respect to the assets of the Trust, the REO
Holding Period for disposing of any Repo Property or REO Property as described
in the preceding two sentences shall be an eleven-month period. The Servicer
shall either sell any Repo Property or REO Property remaining after such date in
an Auction or purchase such Repo Property or REO Property (at the price set
forth in this paragraph) before the end of the Extended Holding Period. In the
event of any such sale of a Repo Property or REO Property, the Trustee shall, at
the written request of the Servicer and upon being supplied with appropriate
forms therefor, within five Business Days after its receipt of the proceeds of
such sale or auction, instruct the Servicer to release to the purchaser the
related Contract File, Land-and-Home Contract File and Servicer Contract File
(in the case of a Repo Property), and the Trustee shall release to the purchaser
the related Trustee Mortgage Loan File and shall instruct the Servicer to
release to the purchaser the related Servicer Mortgage Loan File (in the case of
a Mortgage Loan), and in any event the Trustee shall execute and deliver such
instruments of transfer or assignment, in each case

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without recourse, as shall be necessary to vest in the auction purchaser title
to the Repo Property or REO Property, and shall deliver to such purchaser any
Asset Documents relating to such Asset that are in the Trustee's possession,
whereupon the Trustee shall have no further responsibility with regard to any
related Asset File or Servicer File. Neither the Trustee nor the Servicer,
acting on behalf of the Trust, shall provide financing from such Trust to any
purchaser of a Repo Property or REO Property.

      (b)   In the event that title to any Mortgaged Property or REO Property is
acquired, the deed or certificate of sale shall be issued to the Trustee for the
benefit of the Certificateholders. The Servicer shall, in accordance with
Section 5.11(a), use its reasonable efforts to sell any Repo Property or REO
Property as expeditiously as possible, but in all events within the time period,
and subject to the conditions set forth in Section 5.11(a) hereof. Pursuant to
its efforts to sell such Repo Property or REO Property, the Servicer shall
either itself or through an agent selected by the Servicer protect and conserve
such Repo Property or REO Property in the same manner and to such extent as it
customarily does in connection with its own repossessed manufactured homes or
mortgaged properties (as applicable), incident to its conservation and
protection of the interests of the Certificateholders.

      (c)   The Servicer shall deposit all net funds collected and received in
connection with the operation of any Repo Property or REO Property in the
Collection Account no later than the second Business Day following receipt of
such funds.

      (d)   The Servicer, upon the final disposition of any Repo Property or REO
Property, shall be entitled to reimbursement of any related unreimbursed
Advances related to the Asset for such Repo Property or REO Property as well as
any unpaid Servicing Fees from Liquidation Proceeds received in connection with
the final disposition of such Repo Property or REO Property, the latter in
accordance with the Sections 8.02 and 8.03 of this Agreement.

      (e)   The final disposition of any Repo Property or REO Property shall be
carried out by the Servicer at the Repo Property's or REO Property's fair market
value under the circumstances existing at the time of disposition and upon such
terms and conditions as the Servicer shall deem necessary or advisable, and as
are in accordance with accepted servicing practices and in accordance with
Section 5.11(a) above.

      (f)   The Liquidation Proceeds from the final disposition of any Repo
Property or REO Property shall be deposited into the Collection Account promptly
following receipt of such Liquidation Proceeds and, subject to such withdrawals
as may be permitted by Section 8.02 hereof, shall be transferred to the
Distribution Account pursuant to Section 8.02 hereof.

      (g)   The Servicer shall prepare and file reports of foreclosure and
abandonment in accordance with section 6050J of the Code.

      (h)   Notwithstanding any other provision of this Agreement, the Servicer,
acting on behalf of the Trustee hereunder, shall not rent, lease, or otherwise
earn income or take any action on behalf of the Trust with respect to any REO
Property that might (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) result in the receipt by any related REMIC of any "income from
non-permitted assets"

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within the meaning of section 860F(a)(2) of the Code or any "net income from
foreclosure property" within the meaning of section 860G(c)(2) of the Code, both
of which types of income are subject to tax under the REMIC Provisions, unless
the Trustee has received an Opinion of Counsel at the Trust's expense (the costs
of which shall be recoverable out of the applicable Collection Account), to the
effect that, under the REMIC Provisions and any relevant proposed legislation,
any income generated for any related REMIC by the REO Property would not result
in the imposition of a tax upon such REMIC.

      Without limiting the generality of the foregoing, the Servicer shall not:

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

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

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

                  (4)   Directly Operate, or allow any other Person (other than
            an Independent Contractor) to Directly Operate, any REO Property on
            any date more than 90 days after its acquisition date;

      unless, in any such case, the Servicer has requested and received the
Opinion of Counsel described in the preceding sentence, in which case the
Servicer may take such actions as are specified in such Opinion of Counsel.

      (i)   The Servicer shall not acquire any personal property relating to any
Asset (other than the related Manufactured Home in connection with a Contract)
pursuant to this Section 5.11 unless either:

                  (1)   such personal property is incident to real property (or
            to the related Manufactured Home, in the case of a Contract) (within
            the meaning of section 856(e)(1) of the Code) so acquired by the
            Servicer; or

                  (2)   the Servicer shall have requested and received an
            Opinion of Counsel, at the expense of the Trust (recoverable out of
            the Collection Account), to the effect that the holding of such
            personal property by the related REMIC will not cause the imposition
            of a tax under the REMIC Provisions on any REMIC related to the
            Trust or cause any such REMIC to fail to qualify as a REMIC at any
            time that any Certificate is outstanding.

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      SECTION 5.12. Retitling; Security Interests.

      (a)   If, at any time, a Service Transfer has occurred and the new
Servicer is unable to foreclose upon a Manufactured Home because the title
document for such Manufactured Home does not show such Servicer or the Trustee
as the holder of the first priority security interest in the Manufactured Home,
such Servicer shall take all necessary steps to apply for a replacement title
document showing it or the Trustee as the secured party; provided, that the new
Servicer shall be reimbursed by the Trust for all reasonable expenses in
connection with its responsibilities under this Section 5.12.

      (b)   In order to facilitate the Servicer's actions, as described in
subsection (a) of this section, the Seller will provide the Servicer with any
necessary power of attorney permitting it to retitle the Manufactured Home.

      (c)   If the Servicer is still unable to retitle the Manufactured Home,
the Seller will take all actions necessary to act with the Servicer to initiate
replevin action upon the Manufactured Home, including, as appropriate, the
filing of any UCC1 or UCC3 financing statements necessary to perfect the
security interest in any Manufactured Home that constitutes a fixture under the
laws of the jurisdiction in which it is located and all actions necessary to
perfect the security interest in any Manufactured Home that is considered or
classified as part of the real estate on which it is located under the laws of
the jurisdiction in which it is located.

      SECTION 5.13. Covenants, Representations and Warranties of Servicer.

      By its execution and delivery of this Agreement, Origen Servicing, Inc.,
as initial Servicer, makes the following representations, warranties and
covenants on which the Trust relies in accepting the Assets and issuing the
Certificates.

      (A)   Organization and Good Standing. The Servicer is a corporation duly
            organized, validly existing and in good standing under the laws of
            the jurisdiction of its organization and has the corporate power to
            own its assets and to transact the business in which it is currently
            engaged. The Servicer is duly qualified to do business as a foreign
            corporation and is in good standing in each jurisdiction in which
            the character of the business transacted by it or properties owned
            or leased by it requires such qualification and in which the failure
            so to qualify would have a material adverse effect on the business,
            properties, assets, or condition (financial or other) of the
            Servicer.

      (B)   Authorization; Binding Obligations. The Servicer has the power and
            authority to make, execute, deliver and perform this Agreement and
            all of the transactions contemplated under this Agreement and has
            taken all necessary corporate action to authorize the execution,
            delivery and performance of this Agreement. When executed and
            delivered, this Agreement will constitute the legal, valid and
            binding obligation of the Servicer enforceable in accordance with
            its terms, except as enforcement of such terms may be limited by
            bankruptcy, insolvency or similar laws affecting the enforcement of
            creditors' rights generally and by the availability of equitable
            remedies.

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      (C)   No Consent Required. The Servicer is not required to obtain the
            consent of any other party or any consent, license, approval or
            authorization from, or registration or declaration with, any
            governmental authority, bureau or agency in connection with the
            execution, delivery, performance, validity or enforceability of this
            Agreement, except for such consents, licenses, approvals and
            authorizations as have been obtained.

      (D)   No Violations. The execution, delivery and performance by the
            Servicer of this Agreement and the fulfillment of its terms will not
            violate any provision of any existing law or regulation or any order
            or decree of any court or the related Certificate of Incorporation
            or Bylaws of the Servicer, or constitute a material breach of any
            mortgage, indenture, contract or other agreement to which the
            Servicer is a party or by which the Servicer may be bound.

      (E)   Litigation. No litigation or administrative proceeding of or before
            any court, tribunal or governmental body is currently pending, or to
            the knowledge of the Servicer threatened, against the Servicer or
            any of its properties or with respect to this Agreement or the
            Certificates which, if adversely determined, would in the opinion of
            the Servicer have a material adverse effect on the transactions
            contemplated by this Agreement.

      (F)   Chief Executive Office. The chief executive office of the Servicer
            is at 27777 South Franklin Road, Suite 1700, Southfield, Michigan
            48034.

      (G)   No Default. The Servicer is not in default with respect to any order
            or decree of any court or any order, regulation or demand of any
            federal, state, municipal or governmental agency, which default
            would materially and adversely affect its condition (financial or
            other) or operations or its properties or the consequences of which
            would materially and adversely affect its performance hereunder. The
            Servicer is not in default under any agreement involving financial
            obligations or on any outstanding obligation which would materially
            adversely impact its financial condition or operations or legal
            documents associated with the transaction contemplated by this
            Agreement.

      (H)   No Amendments. The Servicer shall not extend or otherwise amend the
            terms of any Asset, except in accordance with Section 5.06.

      SECTION 5.14. Payment of Taxes.

      If the Servicer becomes aware of the nonpayment by an Obligor of a real or
personal property tax or other tax or charge which may result in a lien upon a
Manufactured Home or Mortgaged Property prior to, or equal to or coordinate
with, the lien of the related Asset, the Servicer, consistent with Section 5.02,
shall take action, including the advancing, but only to the extent that the
Servicer deems, in its sole judgment, such advance recoverable, of such taxes or
charges to avoid the attachment of any such lien. If the Servicer shall have
paid any such real or personal property tax or other tax or charge directly on
behalf of an Obligor, the Servicer may separately add such amount to the
Obligor's obligation as provided by the Asset, but, for the

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purposes of this Agreement, may not add such amount to the remaining principal
balance of the Asset. If the Servicer shall have repossessed a Manufactured Home
or Mortgaged Property on behalf of the Certificateholders and the Trustee, the
Servicer shall advance, but only to the extent that the Servicer, in its sole
judgment, deems such advance recoverable, the amount of any such tax or charge
arising during the time such Manufactured Home is in the Servicer's possession
or title to the Mortgaged Property is in the name of the Servicer (or any Person
acting on behalf of the Servicer), unless the Servicer is contesting in good
faith such tax or charge or the validity of the claimed lien on such
Manufactured Home or Mortgaged Property. If the Obligor does not reimburse the
Servicer for payment of such taxes or charges pursuant to this Section 5.14 and
the related Asset is liquidated after a default, the Servicer shall be
reimbursed for its payment of such taxes or charges out of the related
Liquidation Proceeds. If Liquidation Proceeds are insufficient to reimburse the
Servicer for any such premiums, the amount of such insufficiency shall
constitute, and be reimbursable to the Servicer as, a Nonrecoverable Advance.

      SECTION 5.15. Subservicing Arrangements.

      The Servicer may arrange for the subservicing of any Asset by a
Subservicer pursuant to a subservicing agreement; provided, however, that such
subservicing arrangement and the terms of the related subservicing agreement
must provide for the servicing of such Assets in a manner consistent with the
servicing arrangements contemplated hereunder. Unless the context otherwise
requires, references in this Agreement to actions taken or to be taken by the
Servicer in servicing the Assets include actions taken or to be taken by a
Subservicer on behalf of the Servicer. Notwithstanding the provisions of any
subservicing agreement, any of the provisions of this Agreement relating to
agreements or arrangements between the Servicer and a Subservicer or reference
to actions taken through a Subservicer or otherwise, the Servicer shall remain
obligated and liable to the Depositor, the Trustee, the Seller, the Originator
and the Certificateholders for the servicing and administration of the Assets in
accordance with the provisions of this Agreement without diminution of such
obligation or liability by virtue of such subservicing agreements or
arrangements or by virtue of indemnification from the Subservicer and to the
same extent and under the same terms and conditions as if the Servicer alone
were servicing and administering the Assets. All actions of each Subservicer
performed pursuant to the related subservicing agreement shall be performed as
an agent of the Servicer with the same force and effect as if performed directly
by the Servicer. Origen Servicing, Inc. is hereby deemed an acceptable
Subservicer for purposes of this Agreement.

      For purposes of this Agreement, the Servicer shall be deemed to have
received any collections, recoveries or payments with respect to the Assets that
are received by a Subservicer regardless of whether such payments are remitted
by the Subservicer to the Servicer.

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                                   ARTICLE VI

                             REPORTS AND TAX MATTERS

      SECTION 6.01. Monthly Reports.

      (a)   No later than 1:00 p.m. on the fourth Business Day prior to each
Distribution Date, the Servicer shall deliver to the Trustee and the Backup
Servicer, the Electronic File referred to in Section 5.04(c).

      (b)   Reserved.

      SECTION 6.02. Certificate of Servicing Officer.

      Each Electronic File pursuant to Section 6.01 shall be accompanied by a
certificate of a Servicing Officer substantially in the form of Exhibit I,
certifying the accuracy of the Electronic File and that no Event of Termination
or event that with notice or lapse of time or both would become an Event of
Termination has occurred, or if such event has occurred and is continuing,
specifying the event and its status.

      SECTION 6.03. Other Data.

      In addition, the Seller and (if different from the Seller) the Servicer
shall, on request of the Trustee, each Rating Agency, furnish the Trustee and/or
each Rating Agency such underlying data as may be reasonably requested.

      SECTION 6.04. Annual Report of Accountants; Annual Statement of
                    Compliance.

      On or before the fifteenth day of the third month following the end of the
Servicer's fiscal year, commencing in [______________], the Servicer at its
expense shall cause a firm of independent public accountants which is a member
of the American Institute of Certified Public Accountants to issue to the
Servicer a report that such firm has examined selected documents, records and
management's assertions relating to loans serviced by the Servicer and stating
that, on the basis of such examination, such servicing has been conducted in
compliance with the minimum servicing standards identified in the Mortgage
Bankers Association of America's Uniform Single Attestation Program for Mortgage
Bankers, or any successor uniform program, except for such significant
exceptions or errors in records that, in the opinion of such firm, generally
accepted attestation standards requires it to report. The Servicer shall deliver
a copy of such report to the Trustee, the Depositor and the Rating Agencies.

      The Servicer shall deliver to the Depositor, the Rating Agencies and the
Trustee on or before the fifteenth day of the third month following the end of
the Servicer's fiscal year, commencing in [________________], an Officer's
Certificate stating, as to the signer thereof, that (i) a review of the
activities of the Servicer during the preceding fiscal year and of the
performance of the Servicer 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 Servicer has fulfilled all its obligations under this Agreement
throughout such year, or, if there has been a

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default in the fulfillment of any such obligation, specifying each such default
known to such officer and the nature and status thereof.

      SECTION 6.05. Statements to Certificateholders.

      (a)   Based on the information set forth in the Electronic File, the
Trustee will prepare and make available the Monthly Report substantially in the
form of Exhibit N for each Distribution Date to each Certificateholder, the
Underwriter and the parties hereto.

      (b)   Each Monthly Report shall set forth the following:

           (i)    the amount of such distribution to Holders of each Class of
                  Certificates allocable to interest, separately identifying any
                  related Unpaid Class Interest Shortfall included in such
                  distribution and any remaining Unpaid Class Interest Shortfall
                  after giving effect to such distribution;

           (ii)   the amount of such distribution to Holders of each Class of
                  Certificates allocable to principal, separately identifying
                  the aggregate amount of any Principal Prepayments included
                  therein, and any remaining related Unpaid Class Principal
                  Shortfall after giving effect to such distribution;

           (iii)  the Class Principal Balance for each Class of Certificates,
                  after giving effect to the distribution of principal on such
                  Distribution Date; the Class M-1 Principal Balance and the
                  Class M-1 Adjusted Principal Balance (if different) after
                  giving effect to the distribution of principal on such
                  Distribution Date; the Class M-2 Principal Balance and the
                  Class M-2 Adjusted Principal Balance (if different) after
                  giving effect to the distribution of principal on such
                  Distribution Date; the Class B-1 Principal Balance and the
                  Class B-1 Adjusted Principal Balance (if different) after
                  giving effect to the distribution of principal on such
                  Distribution Date;

           (iv)   the Class A Percentage, Class M-1 Percentage, Class M-2
                  Percentage and Class B Percentage for such Distribution Date
                  and the following Distribution Date;

           (v)    the Pool Principal Balance of the Assets for such Distribution
                  Date;

           (vi)   the Pool Factor;

           (vii)  the number and aggregate principal balances of Assets
                  delinquent (a) 30-59 days and (b) 60 or more days;

           (viii) the number of Manufactured Homes that were repossessed during
                  the month ending immediately prior to such Distribution Date,
                  the number of repossessed Manufactured Homes that remain in
                  inventory as of the last day of the related Due Period and
                  repossessed Manufactured Homes purchased by the Seller or a
                  subsidiary of the Seller from the Trust (during the related
                  Due Period and cumulatively) by number of Contracts,

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<PAGE>

                  aggregate Principal Balance of such Contracts and aggregate
                  purchase price;

          (ix)    the number of Mortgaged Properties that were foreclosed upon
                  during the month ending immediately prior to such Distribution
                  Date and the Aggregate Principal Balance of the related
                  Mortgage Loan;

          (x)     number of Assets and aggregate Principal Balance of Assets
                  extended or otherwise amended during the Due Period preceding
                  current Distribution Date;

          (xi)    the Class M-1 Distribution Test;

          (xii)   the Class M-2 Distribution Test;

          (xiii)  the Class B Distribution Test;

          (xiv)   the Weighted Average Net Asset Rate of all outstanding Assets;

          (xv)    the Class M-1 Interest Deficiency Amount, if any, for such
                  Distribution Date;

          (xvi)   the Class M-2 Interest Deficiency Amount, if any, for such
                  Distribution Date;

          (xvii)  the Class B-1 Interest Deficiency Amount, if any, for such
                  Distribution Date;

         (xviii)  the Targeted Overcollateralization Amount,
                  Overcollateralization Amount, Overcollateralization Deficiency
                  Amount and Overcollateralization Release Amount, if any, for
                  such Distribution Date;

          (xix)   the Additional Principal Distribution Amount, if any, to be
                  distributed on such Distribution Date pursuant to Section
                  8.03(a)(12) or Section 8.03(a)(13);

          (xx)    Cumulative Realized Losses; and

          (xxi)   Current Realized Losses.

      In the case of information furnished pursuant to clauses (i) through (iii)
above, the amounts shall be expressed as a dollar amount per Class of
Certificates with a $1,000 denomination.

      The Trustee will make available each month to any Holder or beneficial
owner of offered Certificates, the Monthly Report via the Trustee's internet web
site, initially located at [__________________]. The Trustee will make no
representations or warranties as to the accuracy or completeness of, and may
attach a reasonable and customary disclaimer to, any

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information made available by it on its web site. The Trustee may require
registration and the acceptance of a disclaimer in connection with providing
access to its internet web site. The Trustee will cooperate with the Seller to
make information available to other information sources, including Bloomberg and
Intex. The Trustee will not be liable for the dissemination of information in
accordance with this Agreement.

      Within a reasonable period of time after the end of each calendar year,
the Trustee shall furnish or cause to be furnished to each Person who at any
time during the calendar year was the Holder of a Certificate a statement
containing the information with respect to interest accrued and principal paid
on its Certificates during such calendar year. Such obligation of the Trustee
shall be deemed to have been satisfied to the extent that substantially
comparable information shall be provided by the Trustee pursuant to any
requirements of the Code as from time to time in force.

      SECTION 6.06. Payment of Taxes.

      The Trustee shall be responsible for and agrees to prepare, make and file
all federal, state, local or other tax returns, information statements and other
returns and documents of every kind and nature whatsoever required to be made or
filed by or on behalf of the Subsidiary REMIC or Master REMIC pursuant to the
Code and other applicable tax laws and regulations. Each such return, statement
and document shall, to the extent required by the Code or other applicable law
and at the request of the Servicer, be signed on behalf of the Subsidiary REMIC
or Master REMIC by the Trustee. The Servicer, if and for so long as it is a
Class R Certificateholder, shall be designated the "tax matters person" on
behalf of the Subsidiary REMIC and the Master REMIC, respectively, in the same
manner as a partnership may designate a "tax matters partner," as such term is
defined in Section 6231(a)(7) of the Code. To the extent permitted by the REMIC
Provisions, the Servicer and any subsequent holder of a Class R Certificate, by
acceptance thereof, irrevocably designates and appoints the Trustee as its agent
to perform the responsibilities of the "tax matters person" on behalf of the
Subsidiary REMIC and the Master REMIC, respectively, if, and during such time
as, the Servicer is not the holder of a Class R Certificate. The Trustee may, at
its expense, retain such outside assistance as it deems necessary in the
performance of its obligations under this paragraph.

      Each of the Holders of the Certificates, by acceptance thereof, agrees to
file tax returns consistent with and in accordance with any elections, decisions
or other reports made or filed with regard to federal, state or local taxes on
behalf of the Subsidiary REMIC or the Master REMIC. The Trustee, as agent for
the tax matters person, shall represent the Subsidiary REMIC or the Master REMIC
in connection with all examinations of the Subsidiary REMIC's or the Master
REMIC's affairs by tax authorities, including resulting administrative and
judicial proceedings. Each of the holders of the Certificates, by acceptance
thereof, agrees to cooperate with the Trustee in such matters and to do or
refrain from doing any or all things reasonably required by the Trustee to
conduct such proceedings; provided, that no such action shall be required by the
Trustee of any Certificateholder that would entail unnecessary or unreasonable
expenses for such Certificateholder in the performance of such action.

      The Class R Certificateholders shall pay, on behalf of the Subsidiary
REMIC or the Master REMIC, any foreign, federal, state or local income,
property, excise, sales, receipts or

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any other similar or related taxes or charges which may be imposed upon the
Subsidiary REMIC or the Master REMIC as a REMIC or otherwise and shall, to the
extent provided in Section 10.06, be entitled to be reimbursed out of the
Collection Account or, if such tax or charge results from a failure by the
Trustee, the Seller or the Servicer to comply with the provisions of Section
2.04 or 3.07, the Trustee, the Seller or such Servicer, as the case may be,
shall indemnify the Class R Certificateholders for the payment of any such tax
or charge. The Trustee shall be entitled to withhold from amounts otherwise
distributable to the Class R Certificateholders any taxes or charges payable by
the Class R Certificateholders hereunder.

      In the event a Class R Certificate is transferred to a "disqualified
organization," within the meaning of Section 860E(e)(5) of the Code, pursuant to
Section 860D(a)(6)(B) of the Code the Seller shall provide to the Internal
Revenue Service and the persons specified in Sections 860E(e)(3) and (6) of the
Code all information necessary for the application of Section 860E(e) and any
other applicable provision of the Code with respect to the transfer of such
Class R Certificate to such a disqualified organization including, without
limitation, a computation showing the present value of the total anticipated
excess inclusions with respect to such Class R Certificate for periods after the
transfer as defined in the REMIC Provisions. In addition, to the extent required
by the REMIC Provisions, the Seller shall, upon the written request of persons
designated in Section 860E(e)(3) of the Code, furnish to such requesting party
and the Internal Revenue Service information sufficient to compute the present
value of anticipated excess inclusions within 60 days of the receipt of such
written request.

      SECTION 6.07. Reports to the Commission; Annual Certification of
                    Commission Filing.

      (a)   The Servicer shall reasonably cooperate with the Depositor in
connection with the Trust's satisfying the reporting requirements under the
Exchange Act. The Servicer shall prepare on behalf of the Trust any Forms 8-K
and 10-K customary for similar securities as required by the Exchange Act and
the Rules and Regulations of the Securities and Exchange Commission thereunder,
and the Servicer shall sign and file (via the Securities and Exchange
Commission's Electronic Data Gathering and Retrieval System) such Forms on
behalf of the Depositor. The Depositor hereby grants to the Servicer a limited
power of attorney to execute and file each such document on behalf of the
Depositor. Such power of attorney shall continue until either the earlier of (i)
receipt by the Servicer from the Depositor of written termination of such power
of attorney and (ii) the termination of the Trust. Notwithstanding the
foregoing, the Depositor shall sign any Form 10-K with respect to which the
Depositor signs a Sarbanes-Oxley Certification.

      (b)   The Servicer shall file a Form 8-K within 15 days after each
Distribution Date, including a Form 8-K with a copy of the Monthly Report
substantially in the form of Exhibit N hereto. Prior to March 15th of each year
(or such earlier date as may be required by the Exchange Act and the Rules and
Regulations of the Commission), the Servicer shall file a Form 10-K, in
substance as required by applicable law or applicable Commission staff
interpretations. Such Form 10-K shall include as exhibits the Servicer's annual
statement of compliance described and the accountant's report described under
Section 6.04. The Servicer shall have no liability with respect to any failure
to properly prepare or file such periodic reports resulting from or relating to
the Servicer's inability or failure to obtain any information not resulting from
its own negligence or willful misconduct. The Form 10-K shall also include a
certification of the

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Depositor ("Sarbanes-Oxley Certification") required pursuant to Rule 13a-14
under the Exchange Act, which shall be signed by the senior officer of the
Depositor in charge of its securitizations, and which the Depositor shall
deliver to the Servicer prior to March 15th of each year in which a Form 10-K is
to be filed with respect to the Trust. The Depositor and the Servicer shall
cooperate reasonably to enable the Commission requirements with respect to the
Trust to be met in the event the Commission issues additional interpretative
guidance or promulgates rules or regulations, or in the event of any other
change of law, that would require the reporting arrangements, or the allocation
of responsibilities with respect thereto, described in this Section 6.07 to be
conducted in a different manner than as described herein.

      (c)   Not later than 15 calendar days before the date on which the
Depositor's annual report on Form 10-K is required to be filed in accordance
with the Exchange Act and the rules and regulations of the Commission (or, if
such day is not a Business Day, the immediately preceding Business Day), an
officer of the Servicer shall execute and deliver an Officer's Certificate
(each, a "Servicer Certification") to the Depositor and their 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 accountant's report and all
                  servicing reports, officer's certificates and other
                  information relating to the servicing of the Assets submitted
                  to the Depositor, taken as a whole, does not contain any
                  untrue statement of a material fact or omit to state a
                  material fact necessary to make the statements made, in light
                  of the circumstances under which such statements were made,
                  not misleading as of the date of this certification;

            (ii)  The servicing information required to be provided to the
                  Depositor by the Servicer under the Agreement has been
                  provided to the Depositor;

            (iii) I am responsible for reviewing the activities performed by the
                  Servicer under the Agreement and based upon the review
                  required by the Agreement, and except as disclosed in the
                  annual statement of compliance or the annual accountant's
                  report, the Servicer has, as of the date of this certification
                  fulfilled its obligations under the Agreement; and

            (iv)  I have disclosed to the Depositor all significant deficiencies
                  relating to the Servicer's compliance with the minimum
                  servicing standards in accordance with a review conducted in
                  compliance with the Uniform Single Attestation Program for
                  Mortgage Bankers or similar standard as set forth in the
                  Agreement.

      (d)   The Servicer agrees to indemnify and hold harmless each of the
Depositor and each Person, if any, who "controls" the Depositor within the
meaning of the Securities Act and their respective officers, directors and
Affiliates against any and all losses, penalties, fines, forfeitures, reasonable
legal fees and related costs, judgments and any other costs and expenses that
such Person may sustain arising out of or based on the failure of the Servicer
to deliver or

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cause to be delivered when required any Officer's Certificate required pursuant
to this Section 6.07(c), or any material misstatement or omission contained in
any Officer's Certificate provided pursuant to this Section 6.07(c), or the
Servicer's negligence, bad faith or willful misconduct of the Servicer in
connection therewith. If an event occurs that would otherwise result in an
indemnification obligation under this Section 6.07(c), but the indemnification
provided for in this Section 6.07(c) by the Servicer is unavailable or
insufficient to hold harmless such Persons, then the Servicer shall contribute
to the amount paid or payable by such Persons as a result of the losses, claims,
damages or liabilities of such Persons in such proportion as is appropriate to
reflect the relative fault of the Depositor on the one hand and the Servicer on
the other. The Servicer acknowledges that the Depositor is relying on the
Servicer's performance of its obligations under this Agreement in order to
perform their respective obligations under this Section 6.07.

      (e)   Upon any filing with the Commission, the Servicer shall promptly
deliver to the Depositor a copy of any such executed report, statement or
information.

      (f)   If the Commission issues additional interpretative guidance or
promulgates additional rules or regulations, or if other changes in applicable
law occur, which would require the reporting arrangements, or the allocation of
responsibilities with respect thereto, described in this Section 6.07, to be
conducted differently than as described, the Depositor and the Servicer will
reasonably cooperate to amend the provisions of this Section 6.07 in order to
comply with such amended reporting requirements and such amendment of this
Section 6.07. Any such amendment shall be made in accordance with Section 12.07
without the consent of the Certificateholders, and may result in a change in the
reports filed by the Servicer on behalf of the Trust under the Exchange Act.
Notwithstanding the foregoing, none of the Depositor or the Servicer shall be
obligated to enter into any amendment pursuant to this Section 6.07 that
adversely affects its obligations and immunities under this Agreement.

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

                                  ARTICLE VII

                                SERVICE TRANSFER

      SECTION 7.01. Event of Termination.

      "Event of Termination" means the occurrence of any of the following:

      (a)   (1)   The failure by the Servicer to make by the Business Day
preceding the related Distribution Date any required Monthly Advance (other than
a Nonrecoverable Advance); or (2) any other failure by the Servicer to deposit
in the Collection Account any deposit required to be made under the terms of
this Agreement which continues unremedied for a period of two Business Days
after the date upon which written notice of such failure shall have been given
to the Servicer by the Trustee or to the Servicer and the Trustee by any holders
of Regular

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Certificates evidencing an aggregate undivided interest in the Trust of a
Percentage Interest of at least 25%;

      (b)   Failure on the Servicer's part to observe or perform in any material
respect any covenant or agreement in this Agreement (other than a covenant or
agreement which is elsewhere in this Section specifically dealt with) which
continues unremedied for 30 days 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 Trustee or to the Servicer and the Trustee by any holders of
Regular Certificates evidencing an aggregate interest in the Trust of a
Percentage Interest of at least 25%;

      (c)   A court or other governmental authority having jurisdiction in the
premises shall have entered a decree or order for relief in respect of the
Servicer in an involuntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Servicer, as the case may be, or for any substantial liquidation of its
affairs, and such order remains undischarged and unstayed for at least 60 days;

      (d)   The Servicer shall have commenced a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or shall have consented to the entry of an order for relief in an
involuntary case under any such law, or shall have consented to the appointment
of or taking possession by a receiver, liquidator, assignee, trustee, custodian
or sequestrator (or other similar official) of the Servicer or for any
substantial part of its property, or shall have made any general assignment for
the benefit of its creditors, or shall have failed to, or admitted in writing
its inability to, pay its debts as they become due, or shall have taken any
corporate action in furtherance of the foregoing; or

      (e)   So long as the Seller or the Originator is an affiliate of the
Servicer, any failure of the Seller or the Originator, to repurchase, or
substitute an Eligible Substitute Asset for, any Asset as required by Sections
3.06.

      SECTION 7.02. Transfer.

      If an Event of Termination has occurred and is continuing, either the
Trustee or Certificateholders with aggregate Percentage Interests representing
51% or more of the Trust, by notice in writing to the Servicer (and to the
Trustee if given by the Certificateholders) may terminate all (but not less than
all) of the Servicer's management, administrative, servicing and collection
functions (such termination being herein called a "Service Transfer"). On
receipt of such notice (or, if later, on a date designated therein), or upon
resignation of the Servicer in accordance with Section 12.01, all authority and
power of the Servicer under this Agreement, whether with respect to the Mortgage
Loans, Contracts, the Servicer Mortgage Loan Files, the Contract Files, the
Land-and-Home Contract Files or otherwise (except with respect to the Collection
Account, the transfer of which shall be governed by Section 7.06), shall pass to
and be vested in the Backup Servicer pursuant to and under this Section 7.02;
and, without limitation, the Backup Servicer is authorized and empowered to
execute and deliver on behalf of the Servicer, as attorney-in-fact or otherwise,
any and all documents and other instruments (including, without limitation,
documents required to make the Backup Servicer or any successor

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servicer the sole lienholder or legal title holder of record of each
Manufactured Home or Mortgaged Property (as applicable)) and to do any and all
acts or things necessary or appropriate to effect the purposes of such notice of
termination. Each of the Seller and the Servicer agrees to cooperate with the
Backup Servicer in effecting the termination of the responsibilities and rights
of the Servicer hereunder, including, without limitation, the transfer to the
Backup Servicer for administration by it of all cash amounts which shall at the
time be held by the Servicer for deposit, or have been deposited by the
Servicer, in the Collection Account, or for its own account in connection with
its services hereafter or thereafter received with respect to the Contracts and
the execution of any documents required to make the Backup Servicer or a
successor servicer the sole lienholder or legal title holder of record in
respect of each Manufactured Home. The Servicer shall be entitled to receive any
other amounts which are payable to the Servicer under the Agreement, at the time
of the termination of its activities as Servicer. The Servicer shall transfer to
the new servicer (i) the Servicer's records relating to the Assets in such
electronic form as the new servicer may reasonably request and (ii) any
Contracts, Mortgage Loans, Servicer Mortgage Loan Files, Contract Files and
Land-and-Home Contract Files in the Servicer's possession. Any and all costs and
expenses incurred by the Backup Servicer in connection with the transfer of
servicing functions as provided herein, including, without limitation, the cost
of delivering the Assets and related files to the Backup Servicer, shall be paid
by the initial Servicer within 10 days following invoice therefor, and to the
extent not paid in a timely manner, the Backup Servicer may reimburse itself for
such costs and expenses from the Collection Account. The Backup Servicer shall
not be liable to and shall be held harmless by the Trust, the
Certificateholders, the Seller, the Depositor and the initial Servicer for any
and all claims arising from or related to (i) any missing of lost Mortgage
Loans, Contracts, Servicer Mortgage Loan Files, Contract Files or related
documents or (ii) any inaccurate, incomplete or missing information reasonably
necessary for the servicing of the Contracts, which is not the direct result of
the willful misfeasance or negligence of the Backup Servicer.

      SECTION 7.03. Backup Servicer to Act, Appointment of Successor.

      On and after the time the Servicer receives a notice of termination
pursuant to Section 7.02 or the resignation of the Servicer in accordance with
Section 12.01, the Backup Servicer , upon two (2) Business Days' written notice
from the Trustee of such Service Transfer to the Backup Servicer, shall be the
successor in all respects to the servicing rights, duties and responsibilities
of the Servicer (in its capacity as servicer under this Agreement) which arise
after the effective date of such Service Transfer and the Servicer (except as
provided herein) shall be relieved of such responsibilities, duties and
liabilities arising after such Service Transfer; provided, however, that (i) the
Backup Servicer will not assume any obligations of the Seller pursuant to
Section 3.06, and (ii) the Backup Servicer shall not be liable for any acts or
omissions of the initial or any prior Servicer accruing prior to such Service
Transfer or for any breach or default by the initial or any prior Servicer of
any of its obligations contained herein or in any related document or agreement,
and (iii) the initial or any prior Servicer shall remain liable for any acts or
omissions of such initial or prior Servicer occurring prior to such Service
Transfer or for any breach by the Servicer of any of its obligations contained
herein or in any related document or agreement. As compensation therefor, the
Backup Servicer shall be entitled to receive the Monthly Servicing Fee.
Furthermore, the Backup Servicer shall be entitled to all rights of the Servicer
in connection with its responsibilities under this Agreement, including
reimbursement rights for advances as provided herein. If the Backup Servicer is
legally unable

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so to act, the Trustee may appoint, or petition a court of competent
jurisdiction to appoint, an Eligible Servicer as the successor to the Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Servicer hereunder. Pending appointment of a successor to
the Servicer hereunder, the Servicer shall act in such capacity until a
successor servicer assumes such responsibilities, duties or liabilities. In
connection with such appointment and assumption, the Backup Servicer may make
such arrangements for the compensation of such successor out of payments on
Contracts as it and such successor shall agree; provided, however, that no such
monthly compensation shall, without the written consent of 100% of the
Certificateholders, exceed the Monthly Servicing Fee. The Trustee and the Backup
Servicer and such successor shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession as provided
herein. The Backup Servicer shall be entitled to rely upon the representations,
warranties and covenants made by the Seller and the initial Servicer set forth
in this Agreement and any related document, and the Backup Servicer shall be
held harmless by the Trust, the Certificateholders, the Seller and the initial
Servicer, for any and all claims, liabilities, obligations, losses damages,
payments costs or expenses (including reasonable attorneys' fees) of any kind
whatsoever arising from or related to any breach, inaccuracy, default or
nonperformance of such representations, warranties or covenants of the Seller or
the initial Servicer as set forth herein.

      SECTION 7.04. Notification to Certificateholders.

      (a)   Promptly following the occurrence of any Event of Termination, the
Servicer shall give written notice thereof to the Trustee, the Backup Servicer,
the Rating Agencies and the Certificateholders at their respective addresses
appearing on the Certificate Register.

      (b)   Within ten days following any termination or appointment of a
successor to the Servicer pursuant to this Article VII, the Trustee shall give
written notice thereof to the Rating Agencies and the Certificateholders at
their respective addresses appearing on the Certificate Register.

      (c)   The Trustee shall give written notice to the Rating Agencies prior
to the date upon which any Eligible Servicer (other than the Trustee) is to
assume the responsibilities of Servicer pursuant to Section 7.03, naming such
successor Servicer.

      SECTION 7.05. Effect of Transfer.

      (a)   After the Service Transfer, the Backup Servicer or new Servicer may
notify Obligors to make payments directly to the new Servicer that are due under
the Contracts after the effective date of the Service Transfer.

      (b)   After the Service Transfer, the replaced Servicer shall have no
further obligations with respect to the management, administration, servicing or
collection of the Contracts and the Backup Servicer shall have all of such
obligations except as provided herein and the replaced Servicer will transmit or
cause to be transmitted directly to the Backup Servicer for its own account,
promptly on receipt and in the same form in which received, any amounts
(properly endorsed where required for the Backup Servicer to collect them)
received as payments upon or otherwise in connection with the Contracts.

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      (c)   A Service Transfer shall not affect the rights and duties of the
parties hereunder (including but not limited to the indemnities of the Servicer
and the Seller pursuant to Article X and Sections 3.06, 11.06 and 11.11(f))
other than those relating to the management, administration, servicing or
collection of the Contracts following the effective Service Transfer. Upon and
following a Servicer Transfer, the initial Servicer shall have no further rights
to the Monthly Servicing Fee, other than any accrued and unpaid Monthly
Servicing Fee due to the initial Servicer as of such date.

      SECTION 7.06. Transfer of Collection Account.

      Notwithstanding the provisions of Section 7.02, if the Collection Account
shall be maintained with the Servicer and an Event of Termination shall occur
and be continuing, the Servicer shall, after five days' written notice from the
Trustee, or in any event within ten days after the occurrence of the Event of
Termination, establish an Eligible Account with an institution other than the
Servicer and promptly transfer all funds in the Collection Account to such new
account, which shall thereafter be deemed the Collection Account for the
purposes hereof. Upon a Service Transfer, the Collection Account shall be
transferred to an Eligible Account as directed by the successor Servicer.

                                  ARTICLE VIII

                                    PAYMENTS

      SECTION 8.01. Monthly Payments.

      (a)   Subject to the terms of this Article VIII, each Holder of a
Certificate as of a Record Date shall be paid the sum equal to such
Certificateholder's Percentage Interest of all amounts distributed on the
applicable Class of Certificates on the next succeeding Distribution Date by
check mailed on such Distribution Date to such Certificateholder at the address
for such Certificateholder appearing on the Certificate Register (or by wire
transfer pursuant to instructions delivered to the Trustee at least ten days
prior to such Distribution Date). Final payment of any Certificate shall be made
only upon presentation of such Certificate at the office or agency of the Paying
Agent.

      (b)   Each distribution with respect to a Book-Entry Certificate shall be
paid to the Depository, which shall credit the amount of such distribution to
the accounts of its Depository Participants in accordance with its normal
procedures. Each Depository Participant shall be responsible for disbursing such
distribution to the Certificate Owners that it represents and to each indirect
participating brokerage firm (a "brokerage firm" or "indirect participating
firm") for which it acts as agent. Each brokerage firm shall be responsible for
disbursing funds to the Certificate Owners that it represents. All such credits
and disbursements with respect to a Book-Entry Certificate are to be made by the
Depository and the Depository Participants in accordance with the provisions of
the Book Entry Certificates. Neither the Trustee, the Certificate Registrar, the
Seller nor the Servicer shall have any responsibility therefor except as
otherwise provided by applicable law. To the extent applicable and not contrary
to the rules of the Depository, the Trustee shall comply with the provisions of
the forms of the Class A, Class M, and Class B Certificates as set forth in
Exhibits A, B and C hereto.

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      (c)   The Trustee shall either act as the paying agent or shall appoint an
institution meeting the eligibility requirements set forth in Section 11.06 to
be the paying agent (in either case, the "Paying Agent") and cause it to make
the payments to the Certificateholders required hereunder. The Paying Agent
shall initially be located at the Trustee's Corporate Trust Office at
[_____________________________________________________________], shall initially
act as Paying Agent. The Trustee shall require the Paying Agent (if other than
the Trustee) to agree in writing that all amounts held by the Paying Agent for
payment hereunder will be held in trust for the benefit of the
Certificateholders and that it will notify the Trustee of any failure by the
Servicer to make funds available to the Paying Agent for the payment of amounts
due on the Certificates.

      SECTION 8.02. Permitted Withdrawals from the Collection Account.

      The Servicer may, from time to time as provided herein, make withdrawals
from the Collection Account of amounts deposited in said account pursuant to
Section 5.05 that are attributable to the Contracts for the following purposes:

      (a)   to remit the Amount Available to the Trustee for deposit in the
Distribution Account to make payments in the amounts and in the manner provided
for in Section 8.03;

      (b)   to pay to the Seller with respect to each Asset or property acquired
in respect thereof that has been repurchased or replaced pursuant to Section
3.06, all amounts received thereon and not required to be distributed to
Certificateholders as of the date on which the related Principal Balance or
Repurchase Price is determined;

      (c)   to reimburse the Servicer out of Liquidation Proceeds for
Liquidation Expenses incurred by it, to the extent such reimbursement is
permitted pursuant to Section 5.08;

      (d)   to withdraw any amount deposited in the Collection Account that was
not required to be deposited therein;

      (e)   to make any rebates or adjustments deemed necessary by the Servicer
pursuant to Section 5.06(d); or

      (f)   to reimburse the Servicer for any accrued unpaid Monthly Servicing
Fees, to the extent not otherwise retained. The Servicer's right to
reimbursement for unpaid Servicing Fees shall be limited to late collections on
the related Asset, including Liquidation Proceeds, Insurance Proceeds and such
other amounts as may be collected by the Servicer from the related Obligor or
otherwise relating to the Asset in respect of which such reimbursed amounts are
owed. Except with respect to Nonrecoverable Advances, the Servicer's right to
reimbursement for unreimbursed Monthly Advances shall be limited to late
collections of interest on any Asset and to Liquidation Proceeds and Insurance
Proceeds on related Obligors.

      Since, in connection with withdrawals pursuant to clause (b), the Seller's
entitlement thereto is limited to collections or other recoveries on the related
Asset, the Servicer shall keep and maintain separate accounting, on a Asset by
Asset basis, for the purpose of justifying any withdrawal from the Collection
Account pursuant to such clause.

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      One Business Day before each Distribution Date, no later than 1:00 p.m.
New York time, the Servicer will remit to the Trustee for deposit into the
Distribution Account the Amount Available.

      SECTION 8.03. Payments.

      (a)   On each Distribution Date the Trustee shall withdraw from the
Distribution Account the Amount Available (as determined by the Servicer on the
immediately preceding Determination Date), plus on the Post-Funding Distribution
Date any Pre-Funded Amount, and apply such funds to make payment in the
following order of priority, subject to Section 8.03(d):

            1.    to the Trustee, the Trustee Fee for such Distribution Date;

            2.    (a) to the Servicer, the Monthly Servicing Fee (to the extent
      not withdrawn from the Collection Account pursuant to Section 8.02) and
      any other compensation owed to the Servicer pursuant to Section 7.03 and
      [(b)] to the Backup Servicer, the Backup Servicing Fee, if any, and any
      other compensation owed to the Backup Servicer pursuant to Section 7.03;

            3.    to the Class A Certificateholders as follows:

                  (i)   the amount in clause (a)(i) of the definition of Class A
                        Formula Distribution Amount to the Class A-1
                        Certificateholders; the amount in clause (a)(ii) to the
                        Class A-2 Certificateholders; the amount in clause
                        (a)(iii) to the Class A-3 Certificateholders; the amount
                        in clause (a)(iv) to the Class A-4 Certificateholders;
                        the amount in clause (a)(v) to the Class A-5
                        Certificateholders, the amount in clause (a)(vi) to the
                        Class A-6 Certificateholders, the amount in clause
                        (a)(vii) to the Class A-7 Certificateholders or, if the
                        available amount is less than the sum of the amounts
                        specified in this clause (i), pro rata to each Class of
                        Class A Certificates based on the amount of interest
                        payable pursuant to this clause;

                  (ii)  the aggregate Unpaid Class A Interest Shortfall pro rata
                        to each Class of Class A Certificates based on the
                        Unpaid Class A Interest Shortfall of each such Class;

            4.    to the Class M-1 Certificateholders as follows:

                  (i)   the amount in clause (a) of the definition of Class M-1
                        Formula Distribution Amount;

                  (ii)  any Unpaid Class M-1 Interest Shortfall;

            5.    to the Class M-2 Certificateholders as follows:

                  (i)   the amount in clause (a) of the definition of Class M-2
                        Formula Distribution Amount;

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                  (ii)  any Unpaid Class M-2 Interest Shortfall;

            6.    to the Class B-1 Certificateholders as follows:

                  (i)   the amount in clause (a) of the definition of Class B-1
                        Formula Distribution Amount;

                  (ii)  any Unpaid Class B-1 Interest Shortfall;

            7.    to the Class A Certificateholders as follows:

                  (i)   if there is a Class A Principal Deficiency Amount as of
                        such Distribution Date, the remaining Amount Available,
                        pro rata to each Class of Class A Certificates based on
                        the related Class Principal Balance (but in no event
                        shall such amount exceed the related Class Principal
                        Balance);

                  (ii)  the Unpaid Class A Principal Shortfall to the Class A-1,
                        Class A-2, Class A-3, Class A-4, Class A-5, Class A-6
                        and Class A-7 Certificateholders in the order of
                        priority set forth in clause (iii) below, but to each
                        Class of Class A Certificates no more than the Unpaid
                        Class A Principal Shortfall attributable to such Class;

                  (iii) if such Distribution Date is on or prior to the Class
                        A-6 Cross-Over Date, the Class A Percentage of the
                        Formula Principal Distribution Amount to the Class A
                        Certificateholders as follows:

                        (x)   the Class A-1/A-6 Pro Rata Percentage to the
                        following Classes of Certificates, sequentially, as
                        follows:

                        (a)   to the Class A-1 Certificateholders, but in no
                              event more than the Class A-1 Principal Balance;

                        (b)   to the Class A-2 Certificateholders, but in no
                              event more than the Class A-2 Principal Balance;

                        (c)   to the Class A-3 Certificateholders, but in no
                              event more than the Class A-3 Principal Balance;

                        (d)   to the Class A-4 Certificateholders, but in no
                              event more than the Class A-4 Principal Balance;

                        (e)   to the Class A-5 Certificateholders, but in no
                              event more than the Class A-5 Principal Balance;

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                        (f)   to the Class A-6 Certificateholders, but in no
                              event more than the Class A-6 Principal Balance;

                        (y)   the Class A-7 Pro Rata Percentage to the Class A-7
                              Certificates but in no event more than the Class
                              A-7 Principal Balance.

            8.    to the Class M-1 Certificateholders as follows:

                  (i)   any Unpaid Class M-1 Principal Shortfall;

                  (ii)  the Class M-1 Percentage of the Formula Principal
                        Distribution Amount (plus, if such Distribution Date is
                        on the Class A-6 Cross-Over Date, the amount by which
                        the Class A Percentage of the Formula Principal
                        Distribution Amount exceeds the Class A Principal
                        Balance on such date), but in no event more than the
                        Class M-1 Principal Balance;

                  (iii) any Class M-1 Liquidation Loss Interest Amount;

                  (iv)  any Unpaid Class M-1 Liquidation Loss Interest
                        Shortfall;

            9.    to the Class M-2 Certificateholders as follows:

                  (i)   any Unpaid Class M-2 Principal Shortfall;

                  (ii)  the Class M-2 Percentage of the Formula Principal
                        Distribution Amount (plus, if such Distribution Date is
                        on the Class M-1 Cross-Over Date, the amount, if any, by
                        which the sum of the Class A Percentage and the Class
                        M-1 Percentage of the Formula Principal Distribution
                        Amount exceeds the sum of the Class A and Class M-1
                        Principal Balances on such date), but in no event more
                        than the Class M-2 Principal Balance;

                  (iii) any Class M-2 Liquidation Loss Interest Amount;

                  (iv)  any Unpaid Class M-2 Liquidation Loss Interest
                        Shortfall;

            10.   to the Class B-1 Certificateholders as follows:

                  (i)   any Unpaid Class B-1 Principal Shortfall;

                  (ii)  the Class B Percentage of the Formula Principal
                        Distribution Amount (plus, if such Distribution Date is
                        on the Class M-2 Cross-Over Date, the amount, if any, by
                        which the sum of the Class A, Class M-1 and Class M-2
                        Percentages of the Formula Principal Distribution Amount
                        exceeds the sum of the Class A, Class M-1

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                        and Class M-2 Principal Balances on such date), but in
                        no event more than the Class B-1 Principal Balance;

                  (iii) any Class B-1 Liquidation Loss Interest Amount;

                  (iv)  any Unpaid Class B-1 Liquidation Loss Interest
                        Shortfall;

            11.   to the Holders of Offered Certificates any Additional
      Principal Distribution Amount, in the order of priority described in
      clauses (8)[(9)], (9)[(10)], (10)[(11)] and (11)[(12)] above.

            12.   on each Additional Principal Payment Date (as defined in
      Section 8.05(f)), first, to the Class M-1, Class M-2 and Class B-1
      Certificateholders any Distributable Excess Spread, pro rata based upon
      the Class Principal Balance of each Class (after giving effect to
      distributions on principal on that date), until each such Class'
      respective Class Principal Balances are reduced to zero and then to the
      Class A Certificateholders then outstanding any Distributable Excess
      Spread, pro rata based upon the Class Principal Balance of each Class
      (after giving effect to distributions of principal on that date) until
      each such Class' respective Class Principal Balances are reduced to zero;

            13.   to the Servicer and the Backup Servicer, amounts in respect of
      indemnification or other amounts to which it is entitled under this
      Agreement, including under Section 10.08;

            14.   the Class X Distribution Amount to the Class X
      Certificateholders; and

            15.   any remaining funds to the Class R Certificateholders.

      (b)   On any Distribution Date on which the aggregate Class A Principal
Balance is greater than the Pool Principal Balance for such Distribution Date,
any distribution of the Formula Principal Distribution Amount pursuant to
Section 8.03(a)8(iii) above shall be distributed to each class of Class A
Certificates pro rata.

      (c)   Notwithstanding the priorities set forth above, any Pre-Funded
Amount deposited in the Collection Account shall be applied solely to pay
principal of the Class A Certificates as specified in Section 8.03(a)(8) above.

      SECTION 8.04. [Reserved]

      SECTION 8.05. The Servicer's Purchase Option; Auction Sale; Additional
                    Principal Distribution Amount.

      (a)   Subject to the conditions in subsection (b) below, the Servicer
shall have the option to purchase all of the Assets and all property acquired in
respect of any Asset remaining in the Trust (including REO Property and Repo
Property) at a price (such price being referred to as the "Minimum Purchase
Price") equal to the greater of:

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            A.    the sum of (x) 100% of the Principal Balance of each Asset
                  (other than any Asset as to which title to the underlying
                  property has been acquired and whose fair market value is
                  included pursuant to clause (y) below), plus (y) the fair
                  market value of such acquired property (as determined by the
                  Servicer of the close of business on the third Business Day
                  next preceding the date upon which notice of any such
                  termination is furnished to Certificateholders pursuant to
                  Section 12.03) or

            B.    the aggregate fair market value (as determined by the Servicer
                  as of the close of business on such third Business Day) of all
                  of the assets of the Trust,

      plus, in either case, any outstanding amounts owed to the Trustee, any
Unpaid Class A Interest Shortfall, any Unpaid Class M-1 Interest Shortfall, any
Unpaid Class M-1 Liquidation Loss Interest Shortfall, any Unpaid Class M-2
Interest Shortfall, any Unpaid Class M-2 Liquidation Loss Interest Shortfall,
any Unpaid Class B-1 Interest Shortfall and any Unpaid Class B-1 Liquidation
Loss Interest Shortfall.

      (b) The purchase by the Servicer of all of the Assets pursuant to Section
8.05(a) above shall be at the option of the Servicer, but shall be conditioned
upon (1) the Pool Principal Balance, at the time of any such purchase,
aggregating not more than 10% of the sum of the Cut-off Date Pool Principal
Balance and the Original Pre-Funded Amount, (2) such purchase being made
pursuant to a plan of complete liquidation of each of the Subsidiary REMIC and
the Master REMIC in accordance with Section 860F of the Code, as provided in
Section 12.03, and (3) the Servicer having provided the Trustee and the
Depository (if any) with at least 30 days' written notice. If such option is
exercised, the Servicer, shall provide to the Trustee the certification required
by Section 12.03, which certificate shall constitute a plan of complete
liquidation of each of the Subsidiary REMIC and the Master REMIC within the
meaning of Section 860F of the Code, and the Trustee shall promptly sign such
certification and release to the Servicer, the Mortgage Loan Files, the Contract
Files and Land-and-Home Contract Files pertaining to the Contracts being
repurchased.

      (c) Reserved

      (d) The Servicer shall notify the Trustee no later than two Business Days
after the Determination Date following the first Due Period which includes the
date on which the Pool Principal Balance first becomes less than or equal to 10%
of the sum of the Cut-off Date Pool Principal Balance and the Original
Pre-Funded Amount, to the effect that the Pool Principal Balance is then less
than or equal to 10% of the sum of the Cut-off Date Pool Principal Balance and
the Original Pre-Funded Amount.

      (e) If the Servicer has not delivered to the Trustee the notice of
exercise of its purchase option described in subsection (b) by the Distribution
Date occurring in the month following the Determination Date specified in
subsection (d), then promptly after the following Distribution Date the Trustee
shall begin a process for soliciting bids in connection with an auction for the
Assets. The Trustee shall provide the Servicer written notice of such auction at

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least 10 Business Days prior to the date bids must be received in such auction
(the "Auction Date").

      If at least three bids are received, the Trustee shall solicit and
resolicit new bids from all participating bidders until only one bid remains or
the remaining bidders decline to resubmit bids. The Trustee shall accept the
highest of such remaining bids if it is equal to or in excess of the greater of
(i) the Minimum Purchase Price and (ii) the fair market value of the Assets and
related property (such amount being referred to as the "Minimum Auction Price").
If less than three bids are received or the highest bid after the resolicitation
process is completed is not equal to or in excess of the Minimum Auction Price,
the Trustee shall not consummate such sale. If at least three bids are not
received, the Seller, at the Trustee's request, shall supply the Trustee will
the names of parties from whom to solicit such bids; provided, that the Trustee
shall not be responsible if less than three or no bidders submit bids for the
Assets and the other trust assets. If a bid meeting the Minimum Purchase Price
is received, then the Trustee may, and if so requested by the Servicer shall, at
the expense of the Trust, consult with a financial advisor, which may be an
underwriter of the Certificates, to determine if the fair market value of the
Assets and related property has been offered. The Trustee may hire an agent at
the expense of the Trust to conduct such Auction.

      If the first auction conducted by the Trustee does not produce any bid at
least equal to the Minimum Auction Price, then the Trustee shall, beginning on
the Distribution Date occurring approximately three months after the Auction
Date for the failed first auction, commence another auction in accordance with
the requirement of this subsection (e). If such second auction does not produce
any bid at least equal to the Minimum Auction Price, then the Trustee shall,
beginning on the Distribution Date occurring approximately three months after
the Auction Date for the failed second auction, commence another auction in
accordance with the requirements of this subsection (e), and shall continue to
conduct similar auctions approximately every three months thereafter until the
earliest of (i) delivery by the Servicer of notice of exercise of its purchase
option under subsection (a), (ii) receipt by the Trustee of a bid meeting the
conditions specified in the preceding paragraph, or (iii) the Distribution Date
on which the principal balance of all the Assets is reduced to zero.

      If the Trustee receives a bid meeting the conditions specified in this
subsection (e), then the Trustee's written acceptance of such bid shall
constitute a plan of complete liquidation within the meaning of Section 860F of
the Code, and the Trustee shall release to the winning bidder, upon payment of
the bid purchase price, the Asset Files pertaining to the Assets being
purchased.

      (f) If the Servicer has not delivered to the Trustee the notice of
exercise of its purchase option described in subsection (b) by the Distribution
Date occurring in the month following the Determination Date specified in
subsection (d), then on the following Distribution Date and each Distribution
Date thereafter (each, an "Additional Principal Payment Date") the Class M-1,
Class M-2 and Class B-1 Certificates shall be entitled to receive the
Distributable Excess Spread, allocated among such classes pro rata based upon
the outstanding Principal Balance of each such Class on each such Distribution
Date until each such Principal Balance is reduced to zero and thereafter the
Class A Certificates then outstanding shall be entitled to receive the
Distributable Excess Spread, allocated among such classes pro rata based upon
the

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outstanding Principal Balance of each such Class on each such Distribution Date
until each such Principal Balance is reduced to zero.

      SECTION 8.06. [Reserved]

      SECTION 8.07. [Pre-Funding Account.]

      (a) [On or before the Closing Date, the Trustee shall establish the
Pre-Funding Account on behalf of the Trust, which must be an Eligible Account.
The Pre-Funding Account shall be entitled "Pre-Funding Account,
[_____________________________] as Trustee for the benefit of holders of Origen
Residential Pass-Through Certificates, Series 200[__] - [__]]." The Trustee
shall maintain within the Pre-Funding Account two subaccounts, the Pre-Funding
Subaccount and the Undelivered Asset Subaccount. The Undelivered Asset
Subaccount pertains to those Land-and-Home Contracts transferred to the Trust on
the Closing Date that are Undelivered Assets. Funds deposited in the Pre-Funding
Account shall be held in trust by the Trustee for the Holders of the
Certificates for the uses and purposes set forth herein.

      (b) The Trustee shall deposit in the Pre-Funding Subaccount the amount
received from the Seller pursuant to Section 2.02(19). Amounts on deposit in the
Pre-Funding Subaccount shall be withdrawn by the Trustee as follows:

            (i)   On any Subsequent Transfer Date, the Trustee shall withdraw an
                  amount equal to 100% of the Cut-off Date Principal Balance of
                  each Subsequent Asset transferred and assigned to the Trustee
                  on such Subsequent Transfer Date and pay such amount to or
                  upon the order of the Seller upon satisfaction of the
                  conditions set forth in Section 2.03(b) with respect to such
                  transfer and assignment.

            (ii)  On the Business Day immediately preceding the Post-Funding
                  Distribution Date, the Trustee shall deposit into the
                  Distribution Account any amounts remaining in the Pre-Funding
                  Subaccount, net of investment earnings.

      (c) The Trustee shall deposit in the Undelivered Asset Subaccount the
amount received from the Seller pursuant to Section 2.02(20). Amounts on deposit
in the Undelivered Asset Subaccount shall be withdrawn by the Trustee as
follows:

            (i)   If the Seller delivers the related Land-and-Home Contract File
                  for an Undelivered Asset to the Trustee at least two Business
                  Days before the last day of the Pre-Funding Period, the
                  Trustee shall withdraw an amount equal to 100% of the Cut-off
                  Date Principal Balance of such Contract and pay such amount to
                  or upon the order of the Seller.

            (ii)  [Reserved]

            (iii) The Seller shall give the Trustee telephonic notice of its
                  intended delivery of Land-and-Home Contract Files. The Trustee
                  will use reasonable efforts

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                  to process the Land-and-Home Contract Files and remit any
                  amount payable for them to the Seller in a timely manner.

            (iv)  On the Business Day immediately preceding the Post-Funding
                  Distribution Date, the Trustee shall deposit into the
                  Distribution Account any amounts remaining in the Undelivered
                  Asset Subaccount, net of investment earnings.

      (d) The Pre-Funding Account shall be part of the Trust but not part of the
Master REMIC or Subsidiary REMIC. The Trustee on behalf of the Trust shall be
the legal owner of the Pre-Funding Account. The Seller shall be the beneficial
owner of the Pre-Funding Account, subject to the foregoing power of the Trustee
to transfer amounts in the Pre-Funding Account to the Distribution Account.
Funds in the Pre-Funding Account shall, at the direction of the Servicer, be
invested in Eligible Investments of the kind described in clauses (i) and
(ii)(A) of the definition of "Eligible Investment" and that mature no later than
the Business Day prior to the next succeeding Distribution Date. All amounts
earned on deposits in the Pre-Funding Account shall be taxable to the Seller.
The Trustee shall release to the Seller all investment earnings in the
Pre-Funding Account.]

      SECTION 8.08. The Distribution Account.

      (a) On or before the Closing Date, the Trustee shall establish the
Distribution Account on behalf of the Trust, which must be an Eligible Account.
The Distribution Account shall be entitled "Distribution Account,
[___________________________] as Trustee for the benefit of holders of Origen
Residential Pass-Through Certificates, Series 200[__] - [__]].

      (b) Withdrawals from the Distribution Account shall be made on the
Distribution Date for the purpose of making the payments described in Section
8.03(a). Funds in the Distribution Account shall remain uninvested.

      (c) If at any time the Trustee receives notice (from Fitch, Moody's or the
Servicer or otherwise) that the Distribution Account has ceased to be an
Eligible Account, the Trustee must, as soon as practicable but in no event later
than 5 Business Days of the Trustee's receipt of such notice, transfer the
Distribution Account and all funds therein to an Eligible Account. Following any
such transfer, the Trustee must notify each of Fitch, Moody's and the Servicer
of the location of the Distribution Account.

      SECTION 8.09. Trustee Reimbursement Account.

      (a) On or before the Closing Date, the Trustee shall establish the Trustee
Reimbursement Account, which must be an Eligible Account. The Trustee
Reimbursement Account shall be entitled "Trustee Reimbursement Account, Bank
One, National Association." The Trustee Reimbursement Account will not be a part
of the Trust or any REMIC created hereunder. The Certificateholders and the
Depositor shall have no rights to the amounts on deposit in the Trustee
Reimbursement Account.

      (b) On the Closing Date, the Seller shall deposit $50,000 to the Trustee
Reimbursement Account. The amounts on deposit in the Trustee Reimbursement
Account shall,

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upon direction from the Seller, be invested in Eligible Investments and any
income realized on those amounts shall be payable to the Seller and the Seller
shall reimburse the Trustee Reimbursement Account for any losses incurred on
such investments. If the Seller fails to give direction to the Trustee, the
Trustee shall invest such amounts pursuant to clause (viii) of the definition of
"Eligible Investments." Upon termination of the Trust, any amounts remaining in
the Trustee Reimbursement Account, to the extent not otherwise required to
reimburse the Trustee for amounts due and owing to it hereunder, shall be paid
to the Seller.

                                   ARTICLE IX

                                THE CERTIFICATES

      SECTION 9.01. The Certificates.

      (a) The Class A, the Class M, the Class B, the Class X and the Class R
Certificates shall be substantially in the forms set forth in Exhibits A, B,
C-1, C-2, and C-3, respectively, and shall, on original issue, be executed by
the Trustee on behalf of the Trust to or upon the order of the Seller. The Class
A, the Class M, and the Class B Certificates shall be evidenced by (i) one or
more Class A-1 Certificates representing $[__________] initial aggregate
principal balance, (ii) one or more Class A-2 Certificates representing
$[__________] initial aggregate principal balance, (iii) one or more Class A-3
Certificates representing $[__________] initial aggregate principal balance,
(iv) one or more Class A-4 Certificates representing $[_________] initial
aggregate principal balance, (v) one or more Class A-5 Certificates representing
$[_________] initial aggregate principal balance, (vi) one or more Class A-6
Certificates representing $[___________] initial aggregate principal balance,
(vii) one or more Class A-7 Certificates, representing $[___________] initial
aggregate principal balance, (viii) one or more Class M-1 Certificates
representing $[___________] initial aggregate principal balance, (ix) one or
more Class M-2 Certificates representing $[___________] initial aggregate
principal balance, (x) one or more Class B-1 Certificates representing
$[___________] initial aggregate principal balance, beneficial ownership of such
Classes of Certificates to be held through Book-Entry Certificates in minimum
dollar denominations of $1,000 and integral dollar multiples of $1 in excess
thereof. The Class X, and Class R Certificates shall be issuable in Percentage
Interests and shall each be evidenced by a single certificate.

      (b) The Certificates shall be executed on behalf of the Trust by manual or
facsimile signature on behalf of the Trustee by a Responsible Officer.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures were affixed, authorized to sign on behalf of
the Trustee shall bind the Trust, notwithstanding that such individuals or any
of them have ceased to be so authorized prior to the authentication and delivery
of such Certificates or did not hold such offices at the date of such
Certificate. No Certificate shall be entitled to any benefit under this
Agreement or be valid for any purpose, unless such Certificate shall have been
manually authenticated by an authorized officer of the Trustee substantially in
the form provided for herein, and such authentication upon any Certificate shall
be conclusive evidence, and the only evidence, that such Certificate has been
duly authenticated and delivered hereunder. All Certificates shall be dated the
date of their authentication. Subject to Section 9.02(c), the Regular
Certificates shall be Book-Entry Certificates. The Class R Certificates shall
not be Book-Entry Certificates.

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      The Trustee on behalf of the Trust shall cause to be executed,
authenticated and delivered on the Closing Date to or upon the order of the
Depositor, in exchange for the Mortgage Loans, concurrently with the sale,
assignment and conveyance to the Trustee of the Mortgage Loans, each Class of
Regular Certificates in authorized denominations and the Class R Certificates,
together evidencing the ownership of the entire Trust.

      SECTION 9.02. Registration of Transfer and Exchange of Certificates.

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

      Upon surrender for registration of transfer of any Certificate at any
office or agency of the Certificate Registrar maintained for such purpose
pursuant to the foregoing paragraph and, in the case of a Class R Certificate,
upon satisfaction of the conditions set forth below, the Trustee on behalf of
the Trust shall execute, authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Certificates of the same aggregate
Percentage Interest.

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

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

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hereby authorized to execute a Letter of Representations with the Depository or
take such other action as may be necessary or desirable to register a Book-Entry
Certificate to the Depository. In the event of any conflict between the terms of
any such Letter of Representation and this Agreement the terms of this Agreement
shall control.

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

      (d) Except with respect to the initial transfer of the Class X and Class R
Certificates (together, the "Private Certificates") by the Depositor to the
Seller (or an affiliate thereof), no transfer, sale, pledge or other disposition
of any Private Certificate shall be made unless (x) except to the extent such
transfer is made to an entity the equity of which is owned by the Seller or an
affiliate of the Seller, and (y) such disposition is exempt from the
registration requirements of the Securities Act of 1933, as amended (the "1933
Act"), and any applicable state securities laws or is made in accordance with
the 1933 Act and laws. In the event of any such transfer, other than the
transfer of the Tax Matters Person Residual Interest (i) unless such transfer is
made in reliance upon Rule 144A (as evidenced by the investment letter delivered
to the Trustee, in substantially the form attached hereto as Exhibit J) under
the 1933 Act, the Trustee and the Depositor shall require a written Opinion of
Counsel (which may be in-house counsel) acceptable to and in form reasonably
satisfactory to the Trustee and the Depositor that such transfer may be made
pursuant to an exemption, describing the applicable exemption and the basis
therefor, from the 1933 Act or is being made pursuant to the 1933 Act, which
Opinion of Counsel shall not be an expense of the Trustee or the Depositor or
(ii) the Trustee shall require the transferor to execute a transferor
certificate (in substantially the form attached hereto as Exhibit K) and the
transferee to execute an investment letter (in substantially the form attached
hereto as Exhibit J) acceptable to and in form reasonably satisfactory to the
Depositor and the Trustee certifying to the Depositor and the Trustee the facts
surrounding such transfer, which investment letter shall not be an expense of
the Trustee or the Depositor. The Holder of a Private Certificate desiring to
effect such transfer shall, and does hereby agree to, indemnify the Trustee

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and the Depositor against any liability that may result if the transfer is not
so exempt or is not made in accordance with such federal and state laws.

      Except with respect to the initial transfer of the ERISA-Restricted
Certificates by the Depositor to the Seller (or an affiliate thereof), no
transfer of an ERISA-Restricted Certificate shall be made unless the Trustee
shall have received a representation from the transferee of such Certificate,
acceptable to and in form satisfactory to the Trustee and the Depositor, (such
requirement is satisfied by the Trustee's receipt of a representation letter
from the transferee substantially in the form of Exhibit S hereto, as
appropriate), to the effect that either (i) such transferee is not an employee
benefit plan or arrangement subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code, nor a person acting on behalf of any such plan or
arrangement or using the assets of any such plan or arrangement to effect such
transfer or (ii) in the case of an ERISA-Restricted Certificate that has been
the subject of an ERISA-Qualifying Underwriting, other than a Class R
Certificate, a representation that the purchaser is an insurance company which
is purchasing such Certificates with funds contained in an "insurance company
general account" (as such term is defined in Section V(e) of Prohibited
Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the purchase and
holding of such Certificates are covered under Sections I and III of PTCE 95-60
or (iii) in the case of any such ERISA-Restricted Certificate presented for
registration in the name of an employee benefit plan subject to ERISA or a plan
or arrangement subject to Section 4975 of the Code (or comparable provisions of
any subsequent enactments), or a trustee of any such plan or any other person
acting on behalf of any such plan or arrangement or using such plan's or
arrangement's assets, an Opinion of Counsel in form and substance satisfactory
to the Trustee which Opinion of Counsel shall not be an expense of either the
Trustee or the Trust, addressed to the Trustee, to the effect that the purchase
or holding of such ERISA-Restricted Certificate will not result in the assets of
the Trust being deemed to be "plan assets" and subject to the prohibited
transaction provisions of ERISA and the Code and will not subject the Trustee to
any obligation in addition to those expressly undertaken in this Agreement or to
any liability. For purposes of clause (i) and (ii) of the preceding sentence,
such representation shall be deemed to have been made to the Trustee by the
transferee's acceptance of an ERISA-Restricted Certificate (or the acceptance by
a Certificate Owner of the beneficial interest in any such Class of
ERISA-Restricted Certificates) in book-entry form unless the Trustee shall have
received from the transferee an alternative representation acceptable in form
and substance to the Depositor or an Opinion of Counsel described in clause
(iii). Notwithstanding anything else to the contrary herein, any purported
transfer of an ERISA-Restricted Certificate to or on behalf of an employee
benefit plan subject to Section 406 of ERISA or a plan subject to Section 4975
of the Code without the delivery to the Trustee of an Opinion of Counsel in form
and substance satisfactory to the Trustee as described above shall be void and
of no effect. The Trustee shall be under no liability to any Person for any
registration of transfer of any ERISA-Restricted Certificate that is in fact not
permitted by this Section 9.02(d) or for making any payments due on such
Certificate to the Holder thereof or taking any other action with respect to
such Holder under the provisions of this Agreement so long as the transfer was
registered by the Trustee in accordance with the foregoing requirements. The
Trustee shall be entitled, but not obligated, to recover from any Holder of any
ERISA-Restricted Certificate that was in fact an employee benefit plan subject
to Section 406 of ERISA or a plan subject to Section 4975 of the Code or a
Person acting on behalf of any such plan at the time it became a Holder or, at
such subsequent time as it became such a plan or Person acting on behalf of such
a plan, all payments made on such ERISA-Restricted Certificate at and after
either

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such time. Any such payments so recovered by the Trustee shall be paid and
delivered by the Trustee to the last preceding Holder of such Certificate that
is not such a plan or Person acting on behalf of a plan.

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

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

            (ii)  No Person shall acquire an Ownership Interest in a Class R
                  Certificate unless such Ownership Interest is a pro rata
                  undivided interest.

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

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

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

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

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                  such Holder under the provisions of this Agreement so long as
                  the Trustee received the documents specified in clause (iii).
                  The Trustee shall be entitled to recover from any Holder of a
                  Class R Certificate that was in fact not a Permitted
                  Transferee at the time such distributions were made all
                  distributions made on such Class R Certificate. Any such
                  distributions so recovered by the Trustee shall be distributed
                  and delivered by the Trustee to the prior Holder of such Class
                  R Certificate that is a Permitted Transferee.

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

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

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

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

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

      SECTION 9.03. No Charge; Disposition of Void Certificates.

      No service charge shall be made to a Certificateholder for any transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates. All Certificates
surrendered for transfer and exchange shall be disposed of in a manner approved
by the Trustee.

      SECTION 9.04. Mutilated, Destroyed, Lost or Stolen Certificates.

      If (a) any mutilated Certificate is surrendered to the Certificate
Registrar, or the Certificate Registrar receives evidence to its satisfaction of
the destruction, loss or theft of any Certificate, and (b) there is delivered to
the Certificate Registrar and the Trustee such security or indemnity as may be
required by each to save it harmless, then in the absence of notice to the
Certificate Registrar or the Trustee that such Certificate has been acquired by
a bona fide purchaser, the Trustee shall execute and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like tenor and original denomination. Upon the issuance of any
new Certificate under this Section 9.04, 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 connected therewith. Any
duplicate Certificate issued pursuant to this Section 9.04 shall constitute
complete and indefeasible evidence of ownership of the Percentage Interest, as
if originally issued, whether or not the mutilated, destroyed, lost or stolen
Certificate shall be found at any time.

      SECTION 9.05. Persons Deemed Owners.

      Prior to due presentation of a Certificate for registration of transfer,
the Servicer, the Seller, the Trustee, the Paying Agent and the Certificate
Registrar may treat the person in whose name any Certificate is registered as
the owner of such Certificate for the purpose of receiving remittances pursuant
to Section 8.01 and for all other purposes whatsoever, and none of the Servicer,
the Seller, the Trustee, the Certificate Registrar, the Paying Agent or any
agent of the Servicer, the Seller, the Trustee, the Paying Agent or the
Certificate Registrar shall be affected by notice to the contrary.

      SECTION 9.06. Access to List of Certificateholders' Names and Addresses.

      The Certificate Registrar will furnish to the Trustee and the Servicer,
within five days after receipt by the Certificate Registrar of a request
therefor from the Trustee in writing, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Certificateholders as of
the most recent Record Date. If Holders of Certificates evidencing, as to any
Class, Percentage Interests representing 25% or more (hereinafter referred to as
"Applicants") apply in writing to the Trustee, and such application states that
the Applicants desire to communicate with other Certificateholders with respect
to their rights under this Agreement or under the Certificates and is
accompanied by a copy of the communication which such Applicants propose to
transmit, then the Trustee shall, within five Business Days after the

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receipt of such application, afford such Applicants access during normal
business hours to the most recent list of Certificateholders held by the
Trustee. If such list is as of a date more than 90 days prior to the date of
receipt of such Applicants' request, the Trustee shall promptly request from the
Certificate Registrar a current list as provided above, and shall afford such
Applicants access to such list promptly upon receipt. Every Certificateholder,
by receiving and holding a Certificate, agrees with the Certificate Registrar
and the Trustee that none of the Seller, the Certificate Registrar or the
Trustee shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Certificateholders hereunder,
regardless of the source from which such information was derived.

      SECTION 9.07. Authenticating Agents.

      The Trustee may appoint one or more Authenticating Agents with power to
act on its behalf and subject to its direction in the execution and delivery of
the Certificates. For all purposes of this Agreement, the execution and delivery
of Certificates by the Authenticating Agent pursuant to this Section shall be
deemed to be the execution and delivery of Certificates "by the Trustee."

                                   ARTICLE X

            INDEMNITIES; CERTAIN MATTERS RELATING to the ORIGINATOR,
                   THE SELLER, THE SERVICER AND THE DEPOSITOR

      SECTION 10.01. Seller's Indemnities.

      The Seller will defend and indemnify the Trust, the Trustee, its officers,
directors, employees and agents (including the Custodian, the Paying Agent and
any other agents of the Trustee), the Backup Servicer and the Certificateholders
against any and all costs, expenses, losses, damages, claims and liabilities,
including reasonable fees and expenses of counsel and expenses of litigation of
any third-party claims (i) arising out of or resulting from the origination of
any Asset (including but not limited to truth in lending requirements) or the
servicing of such Asset prior to its transfer to the Trust (but only to the
extent such cost, expense, loss, damage, claim or liability is not provided for
by the Seller repurchase of such Asset pursuant to Section 3.06) or (ii) arising
out of or resulting from the use or ownership of any Manufactured Homes or any
Mortgaged Property by the Seller or the Servicer or any Affiliate of either.
Notwithstanding any other provision of this Agreement, the obligation of the
Seller under this Section shall not terminate upon a Service Transfer pursuant
to Article VII, except that the obligation of the Seller under this Section
shall not relate to the actions of any subsequent Servicer after a Service
Transfer.

      SECTION 10.02. Liabilities to Obligors.

      No obligation or liability to any Obligor under any of the Assets is
intended to be assumed by the Trust, the Trustee, or the Certificateholders
under or as a result of this Agreement and the transactions contemplated hereby
and, to the maximum extent permitted and valid under mandatory provisions of
law, the Trust, the Trustee and the Certificateholders expressly disclaim such
assumption.

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      SECTION 10.03. Tax Indemnification.

      The Seller agrees to pay, and to indemnify, defend and hold harmless the
Trust, the Trustee (including the Custodian, the Paying Agent and any other
agents of the Trustee) and the Certificateholders from, any taxes which may at
any time be asserted with respect to, and as of the date of, the transfer of the
Assets to the Trust, including, without limitation, any sales, gross receipts,
general corporation, personal property, privilege or license taxes (but not
including any federal, state or other taxes arising out of the creation of the
Trust and the issuance of the Certificates), and costs, expenses and reasonable
counsel fees in defending against the same, whether arising by reason of the
acts to be performed by the Seller or the Servicer under this Agreement.

      SECTION 10.04. Servicer's Indemnities.

      The Servicer shall indemnify and hold harmless the Trust, the Backup
Servicer and the Trustee and its officers, directors, agents and employees from
and against any loss, liability, expense, damage or injury suffered or sustained
by reason of such Servicer's willful misfeasance, bad faith or negligence in the
performance of its activities in servicing or administering the Assets pursuant
to this Agreement, including, but not limited to, any judgment, award,
settlement, reasonable fees of counsel of its selection and other costs or
expenses incurred in connection with the defense of any actual or threatened
action, proceeding or claim related to the Servicer's willful misfeasance, bad
faith or negligence. Any such indemnification shall not be payable from the
assets of the Trust. The provisions of this indemnity shall run directly to and
be enforceable by an injured party subject to the limitations hereof. The
provisions of this Section 10.04 shall survive termination of the Agreement.

      SECTION 10.05. Operation of Indemnities.

      Indemnification under this Article shall include, without limitation,
reasonable fees and expenses of counsel and expenses of litigation. If the
Seller or the Servicer has made any indemnity payments to the Trustee pursuant
to this Article and the Trustee thereafter collects any of such amounts from
others, the Trust will repay such amounts collected to the Seller or the
Servicer, as the case may be, without interest.

      SECTION 10.06. Liability of the Originator, the Seller, the Servicer, the
                     Backup Servicer and the Depositor.

      The Originator, the Seller and the Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically imposed upon and
undertaken by the Originator, the Seller or the Servicer, as the case may be,
herein. The Depositor and the Backup Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically imposed upon and
undertaken herein by the Depositor or the Backup Servicer.

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      SECTION 10.07. Merger or Consolidation of, or Assumption of the
                     Obligations of, the Originator, the Seller, the Servicer,
                     the Backup Servicer or the Depositor.

      Any Person into which the Originator, the Seller, the Servicer, the Backup
Servicer or Depositor may be merged or consolidated, or any Person resulting
from any merger, conversion or consolidation to which the Originator, the
Seller, the Servicer, the Backup Servicer or the Depositor shall be a party, or
any Person succeeding to the business of the Originator, the Seller, the
Servicer, the Backup Servicer or the Depositor, shall be the successor of the
Originator, the Seller, the Servicer, the Backup Servicer or the Depositor, as
the case may be, hereunder, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding; provided, however, that the successor Servicer shall
satisfy all the requirements of an Eligible Servicer.

      SECTION 10.08. Limitation on Liability of Servicer, the Backup Servicer,
                     Others.

      Neither the Servicer, the Backup Servicer nor any of the directors or
officers or employees or agents of the Servicer or the Backup Servicer shall be
under any liability to the Trust or the Certificateholders for any action taken
or for refraining from the taking of any action by the Servicer or the Backup
Servicer in good faith pursuant to this Agreement, or for errors in judgment;
provided, however, that this provision shall not protect the Servicer or the
Backup Servicer or any such Person against any liability which would otherwise
be imposed by reason of its willful misfeasance, bad faith or negligence in the
performance of duties of the Servicer or the Backup Servicer or by reason of its
reckless disregard of its obligations and duties of the Servicer or the Backup
Servicer hereunder; provided, further, that this provision shall not be
construed to entitle the Servicer or the Backup Servicer to indemnity in the
event that amounts advanced by the Servicer or the Backup Servicer to retire any
senior lien exceed Net Liquidation Proceeds realized with respect to the related
Asset. The Servicer, the Backup Servicer and any director or officer or employee
or agent of the Servicer or the Backup Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. The Servicer, the Backup Servicer and
any director or officer or employee or agent of the Servicer or the Backup
Servicer shall be indemnified by the Trust and held harmless against any loss,
liability or expense incurred in connection with any legal action relating to
this Agreement or the Certificates, other than any loss, liability or expense
related to any specific Asset or Assets (except as any such loss, liability or
expense shall be otherwise reimbursable pursuant to this Agreement) and any
loss, liability or expense incurred by reason of its willful misfeasance, bad
faith or negligence in the performance of duties hereunder or by reason of its
reckless disregard of obligations and duties hereunder; and such amounts shall
be payable only pursuant to Section 8.03(a)(15) after payments to the Regular
Certificateholders for the related Distribution Date. The Servicer or the Backup
Servicer may undertake any such action which it may deem necessary or desirable
in respect of this Agreement, and the rights and duties of the parties hereto
and the interests of the Certificateholders hereunder. In such event, the
reasonable legal expenses and costs of such action and any liability resulting
therefrom shall be expenses, costs and liabilities of the Trust and the Servicer
shall be entitled to be reimbursed therefor only after payments to the Regular
Certificates for the related Distribution Date. The Servicer's or the Backup
Servicer's right to indemnity or reimbursement pursuant to this Section shall
survive any resignation or termination of the Servicer or the Backup Servicer
pursuant to

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Section 10.09 or 7.01 with respect to any losses, expenses, costs or liabilities
arising prior to such resignation or termination (or arising from events that
occurred prior to such resignation or termination). This paragraph shall apply
to the Servicer or the Backup Servicer solely in its capacity as Servicer or the
Backup Servicer hereunder and in no other capacities.

      Notwithstanding any provision to the contrary contained in this Agreement,
the parties hereto and the Certificateholders acknowledge and agree that the
Backup Servicer is not assuming and shall not be responsible or liable for any
liabilities, obligations, losses, damages or expenses (including reasonable
attorneys' fees) arising from or related to (i) any act or omission of the
initial Servicer or any prior servicer in its capacity as Servicer on or prior
to the effective Service Transfer Date, (ii) any act or omission of the Trustee,
the initial Servicer, the Seller or the Depositor or any other party to the
Agreement prior to, on or following the Servicer Transfer Date, or (iii) any
breach or default by the initial Servicer, the Seller, the Originator or the
Trustee of their respective duties, obligations, covenants, representations and
warranties contained in this Agreement or in any related document or agreement,
whether such breach or default occurs or occurred prior to, on or following the
Service Transfer Date.

      The parties hereto and the Certificateholders acknowledge that the Backup
Servicer has agreed to be Backup Servicer for the limited purpose of servicing
the Assets, and that neither the Backup Servicer nor any of its Affiliates
provides any guarantee or assurance whatsoever regarding the payment of the
Certificates in full, the timing of payment of the Certificates or the
enforceability or collectability of the Assets.

      SECTION 10.09. Servicer and Backup Servicer Not to Resign.

      Subject to the provisions of Section 10.07, neither the Servicer nor the
Backup Servicer shall resign from the obligations and duties hereby imposed on
it except (i) upon determination that the performance of its obligations or
duties hereunder are no longer permissible under applicable law or are in
material conflict by reason of applicable law with any other activities carried
on by it or its subsidiaries or Affiliates, the other activities of the Servicer
so causing such a conflict being of a type and nature carried on by the
Servicer, the Backup Servicer or its subsidiaries or Affiliates at the date of
this Agreement, or (ii) in the case of the Backup Servicer, upon a default in
payment of the fees and other amounts due and payable to the Backup Servicer as
provided in this Agreement, which default is not cured within 15 days following
written notice thereof to the Trustee or (iii) upon satisfaction of the
following conditions: (a) the Servicer or the Backup Servicer, as applicable,
has proposed a successor servicer to the Trustee in writing and such proposed
successor servicer is reasonably acceptable to the Trustee; and (b) each Rating
Agency shall have delivered a letter to the Trustee prior to the appointment of
the successor servicer stating that the proposed appointment of such successor
servicer as Servicer or Backup Servicer, as applicable, hereunder will not
result in the reduction or withdrawal of the then current rating of the Regular
Certificates; provided, however, that no such resignation by the Servicer or the
Backup Servicer under (i) or (iii) above shall become effective until such
successor servicer or Backup Servicer or, in the case of (i) above with respect
to the Servicer, the Backup Servicer shall have assumed the Servicer's
responsibilities and obligations hereunder in accordance with this Agreement or
the Trustee shall have designated a successor servicer in accordance with
Section 7.02. Any such resignation shall not relieve the Servicer or Backup
Servicer of responsibility for any of the obligations specified in Sections
7.01, 7.02, 7.03 and

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7.05(c) or this Article X as specified as obligations that survive the
resignation or termination of the Servicer or the Backup Servicer. Any such
determination permitting the resignation of the Servicer or Backup Servicer
pursuant to clause (i) above shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee.

                                   ARTICLE XI

                                  THE TRUSTEE

      SECTION 11.01. Duties of Trustee.

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

      The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform as to form to the requirements of this Agreement. If any such instrument
is found not to conform to the requirements of this Agreement in a material
manner, the Trustee shall take such action as it deems appropriate to have the
instrument corrected, and if the instrument is not corrected to its
satisfaction, it will provide notice thereof to the Certificateholders.

      Subject to Section 11.03, no provision of this Agreement shall be
construed to relieve the Trustee from liability for its own negligent action,
its own negligent failure to act or its own misconduct; provided, however, that:

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

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

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                  (3)   The Trustee shall not be personally liable with respect
            to any action taken, suffered or omitted to be taken by it in good
            faith in accordance with the direction of the Certificateholders
            with aggregate Percentage Interests representing 25% or more of the
            Trust relating to the time, method and place of conducting any
            proceeding for any remedy available to the Trustee, or exercising
            any trust or power conferred upon the Trustee, under this Agreement;
            and

                  (4)   The Trustee shall not be charged with knowledge of any
            event referred to in Section 7.01 unless a Responsible Officer of
            the Trustee at the Corporate Trust Office obtains actual knowledge
            of such event or the Trustee receives written notice of such event
            from the Servicer or the Holders of Certificates evidencing, as to
            any Class, Percentage Interests representing 25% or more.

      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 Seller or the Servicer under this Agreement.
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.

      SECTION 11.02. Certain Matters Affecting the Trustee.

      Except as otherwise provided in Section 11.01:

      (a) The Trustee may rely and shall be protected in acting or refraining
from acting upon any resolution, Officer's Certificate, certificate of a
Servicing Officer, 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;

      (b) The Trustee may consult with its own counsel and any opinion of any
such counsel or counsel for the Seller or the Servicer shall be full and
complete authorization and protection in respect of any action taken or suffered
or omitted by it hereunder in good faith and in accordance with such Opinion of
Counsel;

      (c) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Agreement, or to institute, conduct or defend any
litigation hereunder or in relation hereto, at the request, order or direction
of any of the Certificateholders, pursuant to the provisions of this Agreement,
unless such Certificateholders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which may be
incurred therein or thereby; provided, however, that nothing contained herein
shall relieve the Trustee of the obligations, upon the occurrence of an Event of
Termination (which has not been cured or waived), to exercise such of the rights
and powers vested in it by this Agreement, and to use the same degree of care
and skill in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs;

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      (d) Prior to the occurrence of an Event of Termination and after the
curing of all Events of Termination which may have occurred, the Trustee shall
not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document, unless
requested in writing so to do by Holders of Certificates evidencing, as to any
Class, Percentage Interests representing 25% or more; provided, however, that if
the payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee, not reasonably assured to the Trustee by the
security afforded to it by the terms of this Agreement, the Trustee may require
reasonable indemnity against such cost, expense or liability as a condition to
so proceeding. The reasonable expense of every such examination shall be paid by
the Servicer or, if paid by the Trustee, shall be reimbursed by the Servicer
upon demand; and

      (e) The Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys or a custodian and shall not be liable for any acts or omissions of
such agents, attorneys or custodians if appointed by it with due care hereunder.

      SECTION 11.03. Trustee Not Liable for Certificates or Assets.

      The recitals contained herein and in the Certificates (other than the
signature of the Trustee on the Certificates, the acknowledgments of the Trustee
contained in Article II and the representations and warranties of the Trustee in
Section 11.14) shall be taken as the statements of the Depositor and the Trustee
does not assume any responsibility for their correctness. The Trustee makes no
representations or warranties as to the validity or sufficiency of this
Agreement (other than as specifically set forth in Section 11.14) or of the
Certificates (other than the signature of the Trustee on the Certificates) or of
any Asset or related document or any information provided by the Servicer. The
Trustee shall not be accountable for the use or application by the Depositor of
any of the Certificates or of the proceeds of such Certificates, or for the use
or application of any funds paid to the Depositor or the Servicer in respect of
the Assets or deposited in or withdrawn from the Collection Account by the
Servicer.

      SECTION 11.04. Rights of Certificateholders to Direct Trustee and to Waive
                     Event of Termination.

      Holders of Class A Certificates, Holders of Class M Certificates and
Holders of Class B-1 Certificates evidencing, as to each such Class, Percentage
Interests representing 25% or more shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee; provided,
however, that, subject to Section 11.01, the Trustee shall have the right to
decline to follow any such direction if the Trustee being advised by counsel
determines that the action so directed may not lawfully be taken, or if the
Trustee in good faith shall, by a Responsible Officer or Officers of the
Trustee, determine that the proceedings so directed would be illegal or involve
it in personal liability or be unduly prejudicial to the rights of
Certificateholders not parties to such direction; and provided further that
nothing in this Agreement shall impair the right of the Trustee to take any
action deemed proper by the Trustee and which is not inconsistent with such
direction by the Certificateholders; and provided further that the Trustee shall
instead follow the

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directions of Holders of Class A Certificates, Holders of Class M Certificates
and Holders of Class B-1 Certificates evidencing, as to each such Class,
Percentage Interests aggregating 51% or more whenever it receives conflicting
directions from Class A Certificateholders, Class M Certificateholders and Class
B-1 Certificateholders. Holders of Class A Certificates, Holders of Class M
Certificates and Holders of Class B-1 Certificates evidencing, as to each such
Class, Percentage Interests representing 51% or more may on behalf of
Certificateholders waive any past Event of Termination hereunder and its
consequences, except a default in respect of a covenant or provision hereof
which under Section 12.07 cannot be modified or amended without the consent of
all Certificateholders, and upon any such waiver, such Event of Termination
shall cease to exist and shall be deemed to have been cured for every purpose of
this Agreement; but no such waiver shall extend to any subsequent or other Event
of Termination or impair any right consequent thereon. Following the Class M-2
Cross-Over Date, if all distributions payable to the Class A Certificateholders
and the Class M Certificateholders have either been made or provided for in
accordance with this Agreement, then the Holders of Class B-1 Certificates may
exercise the rights given to the Class A Certificateholders, the Class M
Certificateholders and Class B-1 Certificateholders under this Section.

      SECTION 11.05. Trustee's Fees and Expenses.

      In accordance with Section 8.03(a) the Trustee shall be paid and
reimbursed:

                  (1) from the Trust for the amount of the Trustee Fee for all
            services rendered by it hereunder (which compensation shall not be
            limited by any provision of law in regard to the compensation of a
            trustee of an express trust) including the services provided in
            connection with any auctions pursuant to Section 8.05(e);

                  (2) from amounts on deposit in the Trustee Reimbursement
            Expense Account for the amount of all reasonable expenses and
            disbursements incurred or made by the Trustee in accordance with any
            provision of this Agreement (including the reasonable compensation
            and the expenses and disbursements of its agents and counsel, and
            reasonable compensation expenses and disbursements in connection
            with any auctions pursuant to Section 8.05(e)), except any such
            expense or disbursement as may be attributable to its negligence or
            bad faith; and

                  (3) from amounts on deposit in the Trustee Reimbursement
            Expense Account for the amount of any indemnification owed to the
            Trustee or any of its directors, officers, employees, affiliates or
            agents pursuant to Section 11.05(b) below.

      The covenants in this Section 11.05 shall be for the benefit of the
Trustee in its capacities as Trustee, Paying Agent, Custodian and Certificate
Registrar hereunder, and shall survive the termination of this Agreement.

      (b) The Trustee will be entitled to indemnification from amounts on
deposit in the Trustee Reimbursement Expense Account and will be held harmless
by the Trust against any loss, liability, claim, demand, or expense relating to
this Agreement, the Assets or the

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Certificates other than any loss, liability, or expense incurred by reason of
willful misfeasance, bad faith, or negligence in the performance of duties or by
reason of negligent disregard of obligations and duties.

      Neither the Trustee nor any of its respective directors, officers,
employees, affiliates, or agents, will be under any liability to the Trust or
the Certificateholders for any action taken or for refraining from the taking of
any action in good faith pursuant to this Agreement, or for errors in judgment;
provided, however, that the Trustee will not be protected against any breach of
representations or warranties made herein or any liability which would otherwise
be imposed by reason of willful misfeasance, bad faith, or negligence in the
performance of duties herein or by reason of negligent disregard of obligations
and duties hereunder.

      (c) The Trustee shall deliver to the Depositor, the Seller and the
Servicer a report detailing all payments from the Trust made with respect to
legal fees on account of third-party claims. The report shall be delivered
monthly, promptly following any month in which such payments were made.

      (d) If, but only if, the Seller fails to pay any amounts due from it to
the Trustee under this Section 11.05 promptly after demand therefor by the
Trustee, the Trustee may reimburse itself for such amounts from funds on deposit
in the Trustee Reimbursement Account. Upon such reimbursement, the reimbursed
amounts shall be paid for all purposes.

      SECTION 11.06. Eligibility Requirements for Trustee.

      The Trustee hereunder shall at all times be a financial institution
organized and doing business under the laws of the United States of America or
any State, authorized under such laws to exercise corporate trust powers and a
Title I approved lender pursuant to FHA Regulations, shall not be an Affiliate
of the Seller, and shall have a combined capital and surplus of at least
$50,000,000 or shall be a member of a bank holding system the aggregate combined
capital and surplus of which is $50,000,000; provided, that the Trustee's
separate capital and surplus shall at all times be at least the amount required
by Section 310(a)(2) of the Trust Indenture Act of 1939, as amended. If such
Person publishes reports of condition at least annually, pursuant to law or to
the requirements of a supervising or examining authority, then for the purposes
of this Section 11.06, the combined capital and surplus of such Person shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In addition, the Trustee shall at all times
have a long-term deposit rating (or, if the Trustee is a wholly owned subsidiary
of a bank holding company system and not rated, the bank holding company shall
have a rating from each Rating Agency in one of its four highest rating
categories, or as shall be otherwise acceptable to each Rating Agency. In case
at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 11.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 11.07.

      SECTION 11.07. Resignation or Removal of Trustee.

      The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice thereof to the Depositor, the Servicer
and the Seller. A copy of any such notice shall be sent to each Rating Agency.
Upon receiving such notice of resignation, the Seller

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shall promptly appoint a successor Trustee by written instrument, in duplicate,
one copy of which instrument shall be delivered to each of the Servicer and the
Seller and one copy to the successor Trustee. If no successor Trustee shall have
been so appointed and shall have accepted appointment within 30 days after the
giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

      If at any time the Trustee shall cease to be eligible in accordance with
the provisions of Section 11.06 and shall fail to resign after written request
therefor by the Depositor, or if at any time the Trustee shall be legally unable
to act, or shall be adjudged a bankrupt or insolvent, or a receiver of the
Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation, then the Depositor may remove
the Trustee. If the Depositor shall have removed the Trustee under the authority
of the immediately preceding sentence, the Depositor shall promptly appoint a
successor Trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor Trustee.

      Holders of Class A Certificates, Holders of Class M Certificates and
Holders of Class B-1 Certificates evidencing, as to each such Class, Percentage
Interests aggregating 51% or more may at any time remove the Trustee and appoint
a successor by written instrument or instruments, in triplicate, signed by such
Holders or their attorneys-in-fact duly authorized, one complete set of such
instruments shall be delivered to the Depositor, one complete set to the Trustee
so removed and one complete set to the successor so appointed. A copy of such
instrument shall be delivered to the Certificateholders, the Seller and the
Servicer by the Depositor.

      Any resignation or removal of the Trustee and appointment of a successor
Trustee pursuant to any of the provisions of this Section 11.07 shall not become
effective until acceptance of appointment by the successor Trustee as provided
in Section 11.08.

      SECTION 11.08. Successor Trustee.

      Any successor Trustee appointed as provided in Section 11.07 shall
execute, acknowledge and deliver to the Servicer, the Seller and to its
predecessor Trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as Trustee. The predecessor Trustee shall deliver or cause to be delivered
to the successor Trustee the Assets and Asset Files and any related documents
and statements held by it hereunder; and, if the Land-and-Home Contract Files
are then held by a custodian pursuant to a custodial agreement, the predecessor
Trustee and the custodian shall amend such custodial agreement to make the
successor Trustee the successor to the predecessor Trustee thereunder; and the
Servicer, the Seller and the predecessor Trustee shall execute and deliver such
instruments and do such other things as may reasonably be required for fully and
certainly vesting and confirming in the successor Trustee all such rights,
powers, duties and obligations.

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      No successor Trustee shall accept appointment as provided in this Section
11.08 unless at the time of such acceptance such successor Trustee shall be
eligible under the provisions of Section 11.06.

      Upon acceptance of appointment by a successor Trustee as provided in this
Section 11.08, the Servicer shall cause notice of the succession of such Trustee
hereunder to be mailed to each Certificateholder at their addresses as shown in
the Certificate Register. If the Servicer fails to mail such notice within ten
days after acceptance of appointment by the successor Trustee, the successor
Trustee shall cause such notice to be mailed at the expense of the Servicer.

      SECTION 11.09. Merger or Consolidation of Trustee.

      Any Person into which the Trustee 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 Trustee shall be a party, or any Person succeeding to
the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, provided such Person shall be eligible under the provisions
of Section 11.06, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. The Trustee shall promptly notify each Rating Agency in the
event it is a party to any merger, conversion or consolidation.

      SECTION 11.10. Tax Returns.

      Upon the Trustee's request, the Servicer will furnish the Trustee with all
such information as the Trustee may reasonably require in connection with
preparing all tax returns of the Subsidiary REMIC and the Master REMIC and the
Trustee shall execute such returns.

      SECTION 11.11. Obligor Claims.

      In connection with any offset defenses, or affirmative claims for
recovery, asserted in legal actions brought by Obligors under one or more
Contract based upon provisions therein complying with, or upon other rights or
remedies arising from, any legal requirements applicable to the Assets,
including, without limitation, the Federal Trade Commission's Trade Regulation
Rule Concerning Preservation of Consumers' Claims and Defenses (16 C.F.R.
Section 433) as amended from time to time:

                  (1)   The Trustee is not, and shall not be deemed to be,
            either in any individual capacity, as trustee hereunder or
            otherwise, a creditor, or a joint venturer with or an Affiliate of,
            or acting in concert or cooperation with, any seller of home
            improvements, in the arrangement, origination or making of Assets.
            The Trustee is the holder of the Assets only as trustee on behalf of
            the Certificateholders, and not as a principal or in any individual
            or personal capacity;

                  (2)   The Trustee shall not be personally liable for or
            obligated to pay Obligors any affirmative claims asserted thereby,
            or responsible to Certificateholders for any offset defense amounts
            applied against Asset payments, pursuant to such legal actions;

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                  (3)   The Trustee will pay, solely from available Trust
            monies, affirmative claims for recovery by Obligors only pursuant to
            final judicial orders or judgments, or judicially approved
            settlement agreements, resulting from such legal actions;

                  (4)   The Trustee will comply with judicial orders and
            judgments which require its actions or cooperation in connection
            with Obligors' legal actions to recover affirmative claims against
            Certificateholders.

                  (5)   The Trustee will cooperate with and assist
            Certificateholders in their defense of legal actions by Obligors to
            recover affirmative claims if such cooperation and assistance is not
            contrary to the interests of the Trustee as a party to such legal
            actions and if the Trustee is satisfactorily indemnified for all
            liability, costs and expenses arising therefrom; and

      SECTION 11.12. Appointment of Co-Trustee or Separate Trustee.

      Notwithstanding any other provisions hereof, at any time, for the purpose
of meeting any legal requirements of any jurisdiction in which any part of the
Trust or property securing the same may at the time be located, the Servicer and
the Trustee, acting jointly shall have the power and shall execute and deliver
all instruments to appoint one or more Persons approved by the Trustee to act as
co-trustee or co-trustees, jointly with the Trustee, or separate trustee or
separate trustees, of all or any part of the Trust, and to vest in such Person
or Persons, in such capacity, such title to the Trust, or any part thereof, and,
subject to the other provisions of this Section , such powers, duties,
obligations, rights and trusts as the Servicer and the Trustee ay consider
necessary or desirable. If the Servicer shall not have joined in such
appointment within 15 days after the receipt by it of a request so to do, or in
case an Event of Termination shall have occurred and be continuing, the Trustee
alone shall have the power to make such appointment. No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 11.06 hereunder and no notice to Holders of
Certificates of the appointment of co-trustee(s) or separate trustee(s) shall be
required under Section 11.08 hereof. Any reasonable and necessary expense of the
Trustee related to the appointment of a co-trustee or a separate trustee for the
limited purpose of performing the Trustee's duties pursuant to this Section
11.12 shall be reimbursable from the Trust.

      In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 11.12 all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed by the Trustee (whether as
Trustee hereunder or as successor to the defaulting Servicer hereunder), the
Trustee shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties and obligations (including the holding
of title to 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.

      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

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them. Every instrument appointing any separate trustee or co-trustee shall refer
to this Agreement and the conditions of this Article XI. Each separate trustee
and co-trustee, upon its acceptance of the trust conferred, shall be vested with
the estates or property specified in its instrument of appointment, either
jointly with the Trustee or separately, as may be provided therein, subject to
all the provisions of this Agreement, specifically including every provision of
this Agreement relating to the conduct of, affecting the liability of, or
affording protection to, the Trustee. Every such instrument shall be filed with
the Trustee.

      Any separate trustee or co-trustee may, at any time, constitute the
Trustee, its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.

      SECTION 11.13. Agents of Trustee.

      To the extent not prohibited by law and not inconsistent with the terms of
this Agreement (including, without limitation, Section 11.12), the Trustee may
appoint one or more agents to carry out ministerial matters on behalf of the
Trustee under this Agreement.

      SECTION 11.14. Representations and Warranties of the Trustee.

      The Trustee hereby represents and warrants to the Servicer and the
Depositor, as of the Closing Date, that:

      (a) It is a [ ] duly organized, validly existing and in good standing
under the laws of the United States.

      (b) The execution and delivery of this Agreement by it, and the
performance and compliance with the terms of this Agreement by it, will not
violate its charter or articles of association or bylaws or to its best
knowledge constitute a default (or an event which, with notice or lapse of time,
or both, would constitute a default) under, or result in the breach of, any
material agreement or other instrument to which it is a party or which is
applicable to it or any of its assets.

      (c) It has the full power and authority to enter into and consummate all
transactions contemplated by this Agreement, has duly authorized the execution,
delivery and performance of this Agreement, and has duly executed and delivered
this Agreement.

      (d) This Agreement, assuming due authorization, execution and delivery by
the other parties, constitutes a valid, legal and binding obligation of it,
enforceable against it in accordance with the terms hereof, subject to (A)
applicable bankruptcy, insolvency, receivership, reorganization, moratorium and
other laws affecting the enforcement of creditors' rights generally, and (B)
general principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law.

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                                  ARTICLE XII

                                 MISCELLANEOUS

      SECTION 12.01. Servicer and Backup Servicer Not to Assign Duties or
                     Resign; Delegation of Servicing Functions.

      Neither the Servicer nor the Backup Servicer may sell or assign its rights
and duties as Servicer or Backup Servicer, as applicable, hereunder, except as
expressly provided for herein; provided, that the Servicer may pledge or assign
the right to receive all or any portion of the Monthly Servicing Fee payable to
it and/or reimbursements for Outstanding Advance Amounts and Nonrecoverable
Advances.

      SECTION 12.02. Maintenance of Office or Agency.

      The Trustee will maintain in [______________, ___________], an office or
agency where Certificates may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Trustee in respect of the
Certificates and this Agreement may be served. On the date hereof the Trustee's
office for such purposes is located at [______________________________________].
The Trustee will give prompt written notice to Certificateholders of any change
in the location of the Certificate Register or any such office or agency.

      SECTION 12.03. Termination.

      (a) This Agreement shall terminate (after distribution of all amounts due
to Certificateholders pursuant to Sections 8.01 and 8.03) on the earlier of (a)
the Distribution Date on which the Pool Principal Balance is reduced to zero and
all amounts payable to Certificateholders on such Distribution Date have been
distributed to Certificateholders and (b) the Distribution Date on which the
Servicer purchases the Assets pursuant to Section 8.05; provided, that in no
event shall the trust created hereby continue beyond the expiration of 21 years
from the death of the last survivor of the descendants of Joseph P. Kennedy, the
late Ambassador of the United States to the Court of St. James, living on the
date hereof; and provided further, that the Servicer's, the Originator's, and
the Seller's representations and warranties and indemnities by the Seller, the
Originator and the Servicer shall survive termination.

      (b) Notice of any termination, specifying the Final Distribution Date
(which shall be a date that would otherwise be a Distribution Date) upon which
all Certificateholders may surrender their Certificates to the Trustee for
payment of the final distribution and cancellation, shall be given promptly by
the Trustee if the termination is the result of an Auction Sale or by the
Trustee (upon direction by the Servicer ten days prior to the date such notice
is to be mailed) if the termination is the result of a purchase by the Servicer
by letter to Fitch, Moody's and the Certificateholders mailed no later than the
fifth Business Day of the month of the Final Distribution Date specifying (1)
the Final Distribution Date upon which final payment on the Certificates will be
made upon presentation and surrender of Certificates at the office or agency of
the Trustee therein designated; (2) the amount of any such final payment; and
(3) that the

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Record Date otherwise applicable to such Distribution Date is not applicable,
payments being made only upon presentation and surrender of the Certificates at
the office or agency of the Trustee therein specified. Any notice of purchase of
Assets by the Seller or the Servicer pursuant to Section 8.05 shall constitute
the adoption by the Trustee on behalf of the Certificateholders of a plan of
complete liquidation of the Subsidiary REMIC and the Master REMIC within the
meaning of Section 860F of the Code on the date such notice is given when signed
by the Trustee. Each liquidation shall be a qualified liquidation as evidenced
by an Opinion of Counsel provided at the expense of the Servicer. Each such
notice shall, to the extent required by the REMIC Provisions or other applicable
law, be signed on behalf of the Subsidiary REMIC and the Master REMIC by the
Trustee. The Trustee shall give such notice to the Certificate Registrar at the
time such notice is given to the Certificateholders. In the event such notice is
given in connection with the sale of the Contracts pursuant to Section 8.05, the
Servicer or the Trustee, as applicable, shall deposit in the Collection Account
on the Final Distribution Date in immediately available funds an amount equal to
the above-described purchase price and upon such deposit Certificateholders will
be entitled to the amount of such purchase price but not amounts in excess
thereof, all as provided herein. Upon certification to the Trustee by a
Servicing Officer, following such final deposit the Trustee shall promptly
release to the purchaser of the Assets pursuant to Section 8.05 hereof the Asset
Files for the remaining Contracts, and the Trustee shall execute all
assignments, endorsements and other instruments necessary to effectuate such
transfer.

      (c) Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed from the Distribution Account, in the following order of
priority, to Certificateholders on the Final Distribution Date in proportion to
their respective Percentage Interests an amount equal to (i) as to Class A
Certificates, the Class A-1 Principal Balance, the Class A-2 Principal Balance,
the Class A-3 Principal Balance, the Class A-4 Principal Balance, the Class A-5
Principal Balance, the Class A-6 Principal Balance and the Class A-7 Principal
Balance together with any Unpaid Class A Interest Shortfall and one month's
interest at the related Pass-Through Rate on the related Class, respectively
(calculated in the manner specified in Section 1.03), (ii) as to Class M-1
Certificates, the Class M-1 Principal Balance together with any Unpaid Class M-1
Interest Shortfall, any Unpaid Class M-1 Liquidation Loss Interest Shortfall and
one month's interest at the Class M-1 Pass-Through Rate on the Class M-1
Principal Balance, (iii) as to Class M-2 Certificates, the Class M-2 Principal
Balance together with any Unpaid Class M-2 Interest Shortfall, any Unpaid Class
M-2 Liquidation Loss Interest Shortfall and one month's interest at the Class
M-2 Pass-Through Rate on the Class M-2 Principal Balance, (iv) as to Class B-1
Certificates, the Class B-1 Principal Balance together with any Unpaid Class B-1
Interest Shortfall, any Unpaid Class B-1 Liquidation Loss Interest Shortfall and
one month's interest at the Class B-1 Pass-Through Rate on the Class B-1
Principal Balance and (v) as to Class X Certificates, the amount which remains
on deposit in the Distribution Account (other than amounts retained to meet
claims) after application pursuant to clauses (i)-(iv) above. The distribution
on the Final Distribution Date shall be in lieu of the distribution otherwise
required to be made on such Distribution Date in respect of each Class of
Certificates.

      (d) In the event that all of the Certificateholders do not surrender their
Certificates for cancellation within three months after the time specified in
the above-mentioned written notice, the Trustee shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within

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three months after the second notice all the Certificates shall not have been
surrendered for cancellation, the Servicer shall transfer to the Trustee all
amounts remaining on deposit in the Collection Account, to hold in trust for
Certificateholders who have not surrendered their Certificates for cancellation,
together with the final record list of Certificateholders, and the Trustee shall
take appropriate steps, or may appoint an agent to take appropriate steps, to
contact the remaining Certificateholders concerning surrender of their
Certificates, and the cost thereof shall be paid out of the funds and other
assets which remain in trust hereunder.

      (e) Each Certificateholder hereby irrevocably approves and appoints the
Trustee as its attorney-in-fact for the purposes of adoption of the plan of
complete liquidation.

      SECTION 12.04. Acts of Certificateholders.

      (a) Except as otherwise specifically provided herein, whenever
Certificateholder approval, authorization, direction, notice, consent, waiver or
other action is required hereunder, such approval, authorization, direction,
notice, consent, waiver or other action shall be deemed to have been given or
taken on behalf of, and shall be binding upon, all Certificateholders if agreed
to by Holders of Certificates of the specified Class or Classes evidencing, as
to each such Class, Percentage Interests aggregating 51% or more.

      (b) 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
agent duly appointed in writing; and except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee and, where required, to the Servicer. 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 (subject to Section 11.01)
conclusive in favor of the Trustee, the Servicer and the Seller if made in the
manner provided in this Section.

      (c) The fact and date of the execution by any Certificateholder of any
such instrument or writing may be proved in any reasonable manner which the
Trustee deems sufficient.

      (d) The ownership of Certificates shall be proved by the Certificate
Register.

      (e) Any request, demand, authorization, direction, notice, consent, waiver
or other act by a Certificateholder shall bind every holder of every Certificate
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, in respect of anything done, or omitted to be done by the Trustee,
the Servicer or the Seller in reliance thereon, whether or not notation of such
action is made upon such Security.

      (f) The Trustee may require such additional proof of any matter referred
to in this Section as it shall deem necessary.

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      SECTION 12.05. Calculations.

      Except as otherwise provided in this Agreement, all interest rate and
basis point calculations under this Agreement will be made on the basis of a
360-day year and twelve 30-day months and will be carried out to at least three
decimal places.

      SECTION 12.06. Assignment or Delegation by Seller or the Originator.

      Except as specifically authorized hereunder, and except for its
obligations as Servicer which are dealt with under Article V and Article VII,
neither the Seller nor the Originator may convey and assign or delegate its
obligations hereunder absent the prior written consent of Holders of
Certificates of each Class evidencing, as to each such Class, Percentage
Interests aggregating 66 2/3% or more, and any attempt to do so without such
consent shall be void; provided, that the Servicer may in any event assign its
rights to be reimbursed for Servicing Advances. It is understood that the
foregoing does not prohibit the pledge or assignment by the Seller of any right
to payment pursuant to Article VIII.

      Notwithstanding the foregoing, any person into which the Originator or the
Seller may be merged or consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Originator or the Seller shall
be a party, or any Person succeeding to the business of the Originator or the
Seller, shall be the successor of the Originator or the Seller 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. Each
of the Seller and the Originator shall promptly notify Fitch and Moody's of any
such merger to which it is a party.

      SECTION 12.07. Amendment.

      (a) This Agreement may be amended from time to time by the Depositor, the
Seller, the Originator, the Servicer, the Backup Servicer and the Trustee,
without the consent of any of the Certificateholders, to correct manifest error
or to give effect to the expectations of investors, to cure any ambiguity, to
correct or supplement any provisions herein which may be inconsistent with any
other provisions herein, as the case may be, to make such changes as are
necessary to maintain the status of each of the Subsidiary REMIC and the Master
REMIC as a "real estate mortgage investment conduit" under the REMIC Provisions
of the Code or to otherwise effectuate the benefits of such status to the
Subsidiary REMIC, the Master REMIC and the Certificateholders, including,
without limitation, to implement any provision permitted by law that would
enable a REMIC to avoid the imposition of any tax, to add or amend any provision
as required by Fitch, Moody's, or any other nationally recognized statistical
rating organization in order to improve or maintain the rating of any Class of
Class A Certificates, Class M Certificates or Class B Certificates (it being
understood that no party has any obligation to do so), or to make any other
provisions with respect to matters or questions arising under this Agreement
that shall not be inconsistent with the provisions of this Agreement; provided,
however, that such action shall not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Certificateholder;
and provided, further, that the amendment shall not be deemed to adversely
affect in any material respect the interests of the Certificateholders and no
Opinion of Counsel to that effect shall be required if the Person requesting the
amendment obtains a letter

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from each Rating Agency stating that the amendment would not result in the
downgrading or withdrawal of the respective ratings then assigned to the Regular
Certificates.

      (b) This Agreement may also be amended from time to time by the Servicer,
the Seller, the Originator, the Backup Servicer and the Trustee, with the
consent of Holders of Certificates of each Class affected thereby evidencing, as
to each such Class, Percentage Interests aggregating 51% or more, 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 Certificateholders; provided, however, that no such amendment shall (a)
reduce in any manner the amount of, or delay the timing of, collections of
payments on the Assets or distributions which are required to be made on any
Certificate, (b) reduce the aforesaid percentage required to consent to any such
amendment, without the consent of the holders of all Certificates then
outstanding, (c) result in the disqualification of either the Subsidiary REMIC
or the Master REMIC as a REMIC under the Code, (d) adversely affect the status
of either the Subsidiary REMIC or the Master REMIC as a REMIC or the status of
the Regular Certificates as "regular interests" in the Master REMIC or (e) cause
any tax (other than any tax imposed on "net income from foreclosure property"
under Section 860G(c)(1) of the Code that would be imposed without regard to
such amendment) to be imposed on the Trust, including, without limitation, any
tax imposed on "prohibited transactions" under Section 860F(a)(1) of the Code or
on "contributions after the startup date" under Section 860G(d)(1) of the Code.

      (c) This Agreement shall not be amended under this Section without the
consent of 100% of Certificateholders if such amendment would result in the
disqualification of either the Subsidiary REMIC or the Master REMIC as a REMIC
under the Code.

      (d) Concurrently with the solicitation of any consent pursuant to this
Section 12.07, the Trustee shall furnish written notification to each Rating
Agency of such solicitation. Promptly after the execution of any amendment
pursuant to this Section 12.07, the Trustee shall furnish written notification
of the substance of such amendment to each Rating Agency.

      (e) It shall not be necessary for the consent of Certificateholders under
this Section 12.07 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
requirements as the Trustee may prescribe.

      (f) 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 or otherwise.

      (g) In connection with any amendment pursuant to this Section, the Trustee
shall be entitled to receive an Opinion of Counsel to the effect that such
amendment is authorized or permitted by the Agreement and that all conditions
precedent have been met.

      (h) In the absence of the consent described in subsection (c) of this
Section, in connection with any amendment pursuant to this Section, the Trustee
shall have received an Opinion of Counsel, the expense of which shall not be an
expense of the Trust, stating that any such amendment (i) will not adversely
affect the status of the Subsidiary REMIC or the Master

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REMIC as a REMIC or the status of the Regular Certificates as "regular
interests" in the Master REMIC, and (ii) will not cause any tax (other than any
tax imposed on "net income from foreclosure property" under Section 860G(c)(1)
of the Code that would be imposed without regard to such amendment) to be
imposed on the Trust, including, without limitation, any tax imposed on
"prohibited transactions" under Section 860F(a)(1) of the Code or on
"contributions after the startup date" under Section 860G(d)(1) of the Code.

      (i) Upon the execution of any amendment or consent pursuant to this
Section 12.07, this Agreement shall be modified in accordance therewith, and
such amendment or consent shall form a part of this Agreement for all purposes,
and every Certificateholder hereunder shall be bound thereby.

      SECTION 12.08. Notices.

      All communications and notices pursuant hereto to the Depositor, the
Servicer, the Seller, the Originator, the Backup Servicer and the Trustee shall
be in writing and delivered or mailed to it at the appropriate following
address:

      If to the Depositor:

                  Origen Residential Securities, Inc.
                  27777 South Franklin Road
                  Suite 1700
                  Southfield, Michigan  48034
                  Attention:  Ron Klein, Mark Landschulz and W. Anderson Geater
                  Telecopier Number:(248)644-5595

      If to the Originator:

                  Origen Financial L.L.C.
                  27777 South Franklin Road
                  Suite 1700
                  Southfield, Michigan  48034
                  Attention:  Ron Klein, Mark Landschulz and W. Anderson Geater
                  Telecopier Number:(248)644-5595

                                      125
<PAGE>

      If to the Servicer or the Seller:

                  Origen Servicing, Inc.
                  27777 South Franklin Road
                  Suite 1700
                  Southfield, Michigan  48034
                  Attention:  Ron Klein, Mark Landschulz and W. Anderson Geater
                  Telecopier Number: (248) 644-5595

      If to the Trustee:

                  [______________________]
                  [Address]

                  Attn:
                  Telecopier Number:

      If to the Rating Agencies:

      [If to the Backup Servicer:

                  Attention:  _________________
                  Telecopier Number: ______________]

      or at such other address as the party may designate by notice to the other
parties hereto, which notice shall be effective when received.

      All communications and notices pursuant hereto to a Certificateholder
shall be in writing and delivered or mailed at the address shown in the
Certificate Register.

                                      126
<PAGE>

      SECTION 12.09. Merger and Integration.

      Except as specifically stated otherwise herein, this Agreement sets forth
the entire understanding of the parties relating to the subject matter hereof,
and all prior understandings, written or oral, are superseded by this Agreement.
This Agreement may not be modified, amended, waived or supplemented except as
provided herein.

      SECTION 12.10. Headings.

      The headings herein are for purposes of reference only and shall not
otherwise affect the meaning or interpretation of any provision hereof.

      SECTION 12.11. Governing Law.

      THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK (WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF, 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.

      SECTION 12.12. Recordation of Agreement.

      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 Assets are situated, and in
any other appropriate public recording office or elsewhere, such recordation to
be effected by the Trustee, but only upon written direction of Holders of
Certificates evidencing Percentage Interests aggregating at least 51%
accompanied by an Opinion of Counsel to the effect that such recordation
materially and beneficially affects the interests of Certificateholders. The
Certificateholders requesting such recordation shall bear all costs and expenses
of such recordation. The Trustee shall have no obligation to ascertain whether
such recordation so affects the interests of the Certificateholders.

      SECTION 12.13. Limitation on Rights of Certificateholders.

      The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust, nor entitle such Certificateholder's
legal representatives or heirs to claim an accounting or to take any action or
commence any 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.

      No Certificateholder shall have any right to vote (except as provided in
Sections 7.01, 7.02, 11.01 and 12.07) or in any manner otherwise control the
operation and management of the Trust, or the obligations of the parties hereto,
nor shall anything herein set forth, or contained in the terms of the
Certificates, be construed so as to constitute the Certificateholders from time
to time as partners or members of an association; nor shall any
Certificateholder be under any liability to any third person by reason of any
action taken by the parties to this Agreement pursuant to any provision hereof.

                                      127
<PAGE>

      No Certificateholder shall have any right by virtue or by availing itself
of any provisions of this Agreement to institute any suit, action or proceeding
in equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of default
and of the continuance thereof, as hereinbefore provided, and unless also the
Holders of Regular Certificates evidencing Percentage Interests aggregating not
less than 51% shall have made written request upon the Trustee to institute such
action, suit or proceeding in its own name as Trustee hereunder and shall have
offered to the Trustee such reasonable indemnity as it may require against the
costs, expenses and liabilities to be incurred therein or thereby, and the
Trustee, for 60 days after its receipt of such notice, request and offer of
indemnity, shall have neglected or refused to institute any such action, suit or
proceeding; it being understood and intended, and being expressly covenanted by
each Certificateholder with every other Certificateholder and the Trustee, that
no one or more Holders of Certificates shall have any right in any manner
whatever by virtue or by availing itself or themselves of any provisions of this
Agreement to affect, disturb or prejudice the rights of the Holders of any other
of the Certificates, or to obtain or seek to obtain priority over or preference
to any other such Holder, or to enforce any right under this Agreement, except
in the manner herein provided and for the equal, ratable and common benefit of
all Certificateholders. For the protection and enforcement of the provisions of
this Section, each and every Certificateholder and the Trustee shall be entitled
to such relief as can be given either at law or in equity.

      SECTION 12.14. Severability of Provisions.

      If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

      SECTION 12.15. Certificates Nonassessable and Fully Paid.

      The parties agree that the Certificateholders shall not be personally
liable for obligations of the Trust, that the beneficial ownership interests
represented by the Certificates shall be nonassessable for any losses or
expenses of the Trust or for any reason whatsoever, and that the Certificates
upon execution, authentication and delivery thereof by the Trustee pursuant to
Section 9.01 and 9.02 are and shall be deemed fully paid.

      SECTION 12.16. Third-Party Beneficiaries.

      This Agreement will inure to the benefit of and be binding upon the
parties hereto, the Certificateholders, the Certificate Owners, and their
respective successors and permitted assigns. Except as otherwise provided in
this Agreement, no other person will have any right or obligation hereunder.

      SECTION 12.17. Counterparts.

      This Agreement may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

                                      128
<PAGE>

      SECTION 12.18. Effect of Headings and Table of Contents.

      The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

                                      129
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers all as of the day and year first
above written.

ORIGEN RESIDENTIAL SECURITIES, INC.,        ORIGEN FINANCIAL L.L.C.,
as Depositor                                as Originator

By ______________________________           By _____________________________
Name:                                       Name:
Title:                                      Title:

ORIGEN SERVICING, INC.,                     [____________________],
as Servicer and Seller                      as Backup Servicer

By ______________________________           By _____________________________
Name:                                       Name:
Title:                                      Title:
[___________________],
not in its individual capacity but
solely as Trustee

By ______________________________
Name:
Title:

               [Signature Page to Pooling and Servicing Agreement]

<PAGE>

                                   EXHIBIT A

                          FORM OF CLASS A CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" AS THOSE TERMS
ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
CODE.

Class A-[1][2][3][4][5][6][7]               No.
(Senior)

Cut-off Date:  as defined in the            Pass-Through Rate: _______%
Pooling and Servicing Agreement
dated as of __________, 20__

First Distribution Date:                    Denomination: $___________
__________, 20__

                                            Aggregate Denomination of
                                            All Class A-[1][2][3][4][5][6][7]
Servicer:                                   Certificates: $___________
Origen Servicing, Inc.

                                            Maturity Date: [__________]
                                            (or if such day is not a Business
                                            Day, then the next succeeding
                                            Business Day)

                                            CUSIP: _________

                  ORIGEN RESIDENTIAL PASS-THROUGH CERTIFICATES,
              SERIES 2001-A, CLASS A-[1][2][3][4][5][6][7](SENIOR)

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN THE
DEPOSITOR, THE ORIGINATOR, THE SELLER, THE TRUSTEE OR ANY AFFILIATE THEREOF,
EXCEPT TO THE EXTENT SET FORTH IN THE AGREEMENT.

This certifies that Cede & Co. is the registered owner of the undivided
Percentage Interest represented by the original principal amount set forth above
in Origen Residential Pass-Through Certificates Trust, Series 20__-_ (the
"Trust"), which includes among its assets a pool of manufactured housing
installment sale contracts and installment loan agreements (including, without
limitation, all related security interests and any and all rights to receive
payments which are received pursuant thereto after the applicable Cut-off Date
or Subsequent Cut-off Date). The Trust has been created pursuant to a Pooling
and Servicing Agreement (the "Agreement"), dated

                                      A-1
<PAGE>

as of ________________, 20__, among Origen Residential Securities, Inc., as
depositor, Origen Financial L.L.C., as originator (the "Originator"), Origen
Servicing, Inc., as seller and servicer (in such capacities, the "Seller" and
the "Servicer"), [___________________________], as backup servicer (the "Backup
Servicer"), and [_______________________________], as Trustee of the Trust (the
"Trustee"). This Certificate is one of the Certificates described in the
Agreement and is issued pursuant and subject to the Agreement. By acceptance of
this Certificate the holder assents to and becomes bound by the Agreement. To
the extent not defined herein, all capitalized terms have the meanings assigned
to such terms in the Agreement.

The Agreement contemplates, subject to its terms, payment on the fifteenth day
(or if such day is not a Business Day, the next succeeding Business Day) (the
"Distribution Date") of each month commencing in _________, 20__, so long as the
Agreement has not been terminated, by check (or by wire transfer pursuant to
instructions delivered to the Trustee at least 10 days prior to such
Distribution Date) to the registered Certificateholder at the address appearing
on the Certificate Register as of the last Business Day of the calendar month
immediately preceding such Distribution Date, in an amount equal to the
Certificateholder's Percentage Interest of the portion of the Class A
Distribution Amount to be distributed to such Class of Class A Certificates. The
Maturity Date is the date listed as such on the first page hereof.

The Certificateholder, by its acceptance of this Certificate, agrees that it
will look solely to the funds in the Distribution Account to the extent
available for distribution to the Certificateholder as provided in the Agreement
for payment hereunder and that the Trustee is not personally liable to the
Certificateholder for any amounts payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement. By acceptance of this Certificate, the
Certificateholder agrees to disclosure of his, her or its name and address to
other Certificateholders under the conditions specified in the Agreement.

This Certificate does not purport to summarize the Agreement and reference is
made to the Agreement for information with respect to the interests, rights,
benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and immunities of the Trustee. Copies of the Agreement and all amendments
thereto will be provided to any Certificateholder free of charge upon a written
request to the Trustee.

As provided in the Agreement and subject to the limitations set forth therein,
the transfer of this Certificate is registrable in the Certificate Register of
the Certificate Registrar upon surrender of this Certificate for registration of
transfer at the Corporate Trust Office, accompanied by a written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly
executed by the holder thereof or his or her attorney duly authorized in
writing, and thereupon one or more new Certificates evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC") to Issuer or its agent
for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY

                                      A-2
<PAGE>

OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

The Depositor, the Originator, the Seller, the Servicer, the Trustee, the Paying
Agent, the Backup Servicer and the Certificate Registrar and any agent of the
Depositor, the Originator, the Seller, the Servicer, the Trustee, the Paying
Agent, the Backup Servicer or the Certificate Registrar may treat the person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Depositor, the Originator, the Seller, the Servicer, the
Trustee, the Paying Agent, the Certificate Registrar, the Backup Servicer nor
any such agent shall be affected by any notice to the contrary.

                                      A-3
<PAGE>

IN WITNESS WHEREOF, Origen Residential Pass-Through Certificates Trust, Series
20__-_ has caused this Certificate to be duly executed by the manual signature
of a duly authorized officer of the Trustee.

Dated:                              ORIGEN RESIDENTIAL PASS-THROUGH
                                    CERTIFICATES TRUST, SERIES 20__-_
                                    By ________________________, as Trustee

                                    By _________________________________________
                                                  Authorized Signatory

This is one of the Class A-[] Certificates
referenced in the within-mentioned Agreement

By ________________________________
         Authorized Officer of
        ________________________________, as Trustee

                                      A-4
<PAGE>

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
______________________________ the within Origen Residential Pass-Through
Certificate and does hereby irrevocably constitute and appoint
______________________________ Attorney to transfer the said certificate on the
Certificate Register maintained by the Trustee, with full power of substitution
in the premises.

Dated:                              By _________________________________________
                                          Signature

                                      A-5
<PAGE>

                                   EXHIBIT B

                       FORM OF CLASS M-[1][2] CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" AS THOSE TERMS
ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
CODE.

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
CERTIFICATES [AND THE CLASS M-1 CERTIFICATES] AS DESCRIBED IN THE POOLING AND
SERVICING AGREEMENT REFERRED TO HEREIN.

Class M-[1][2]                              No.
(Subordinate)

Cut-off Date: as defined in the             Pass-Through Rate: Lesser of __% per
Pooling and Servicing Agreement             annum and the Weighted Average Net
dated as of _____________, 20__             Contract Rate

                                            Denomination: $_______

First Distribution Date:
____________, 20__                          Aggregate Denomination of
                                            All Class M-[1][2] Certificates:
                                            $_______________

Servicer:
Origen Servicing, Inc.                      Maturity Date:
                                            [_________]
                                            (or if such day is not a Business
                                            Day, then the next succeeding
                                            Business Day)

                                            CUSIP: ___________

                  ORIGEN RESIDENTIAL PASS-THROUGH CERTIFICATES,
                   SERIES 20_-_, CLASS M-[1][2] (SUBORDINATE)

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN THE
DEPOSITOR, THE ORIGINATOR, THE SELLER, THE TRUSTEE OR ANY AFFILIATE THEREOF,
EXCEPT TO THE EXTENT SET FORTH IN THE AGREEMENT.

This certifies that Cede & Co. is the registered owner of the undivided
Percentage Interest represented by the original principal amount set forth above
in Origen Residential Pass-Through

                                      B-1
<PAGE>

Certificates Trust, Series 20__-_ (the "Trust"), which includes among its assets
a pool of manufactured housing installment sale contracts and installment loan
agreements (including, without limitation, all related security interests and
any and all rights to receive payments which are due pursuant thereto after the
applicable Cut-off Date or Subsequent Cut-off Date). The Trust has been created
pursuant to a Pooling and Servicing Agreement (the "Agreement"), dated as of
________________, 20__, among Origen Residential Securities, Inc., as depositor,
Origen Financial, L.L.C., as originator (the "Originator"), Origen Servicing,
Inc., as seller and servicer (in such capacities, the "Seller" and the
"Servicer"), _______________________________, as backup servicer (the "Backup
Servicer") and _______________________________, as Trustee of the Trust (the
"Trustee"). This Certificate is one of the Certificates described in the
Agreement and is issued pursuant and subject to the Agreement. By acceptance of
this Certificate the holder assents to and becomes bound by the Agreement. To
the extent not defined herein, all capitalized terms have the meanings assigned
to such terms in the Agreement.

The Agreement contemplates, subject to its terms, payment on the fifteenth day
(or if such day is not a Business Day, the next succeeding Business Day) (the
"Distribution Date") of each month commencing in _____________ 20__, so long as
the Agreement has not been terminated, by check (or by wire transfer pursuant to
instructions delivered to the Trustee at least 10 days prior to such
Distribution Date) to the registered Certificateholder at the address appearing
on the Certificate Register as of the last Business Day of the calendar month
immediately preceding such Distribution Date, in an amount equal to the
Certificateholder's Percentage Interest of the Class [M-1/M-2] Distribution
Amount for such Distribution Date. The Maturity Date of this Certificate is the
date listed as such on the first page hereof.

The Certificateholder, by its acceptance of this Certificate, agrees that it
will look solely to the funds in the Distribution Account to the extent
available for distribution to the Certificateholder as provided in the Agreement
for payment hereunder and that the Trustee is not personally liable to the
Certificateholder for any amounts payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement. By acceptance of this Certificate, the
Certificateholder agrees to disclosure of his, her or its name and address to
other Certificateholders under the conditions specified in the Agreement.

This Certificate does not purport to summarize the Agreement and reference is
made to the Agreement for information with respect to the interests, rights,
benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and immunities of the Trustee. Copies of the Agreement and all amendments
thereto will be provided to any Certificateholder free of charge upon a written
request to the Trustee.

As provided in the Agreement and subject to the limitations set forth therein,
the transfer of this Certificate is registrable in the Certificate Register of
the Certificate Registrar upon surrender of this Certificate for registration of
transfer at the Corporate Trust Office, accompanied by a written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly
executed by the holder thereof or his or her attorney duly authorized in
writing, and thereupon one or more new Certificates evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                                      B-2

<PAGE>

Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC") to Issuer or its agent
for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

The Depositor, the Originator, the Servicer, the Trustee, the Paying Agent, the
Backup Servicer and the Certificate Registrar and any agent of the Depositor,
the Originator, the Seller, the Servicer, the Trustee, the Paying Agent or the
Certificate Registrar may treat the person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Originator, the Seller, the Servicer, the Trustee, the Paying Agent, the
Certificate Registrar, the Backup Servicer nor any such agent shall be affected
by any notice to the contrary.

                                      B-3

<PAGE>

         IN WITNESS WHEREOF, Origen Residential Pass-Through Certificates Trust,
Series 20__-_ has caused this Certificate to be duly executed by the manual
signature of a duly authorized officer of the Trustee.

                                    Dated:
                                    ORIGEN RESIDENTIAL PASS-THROUGH
                                    CERTIFICATES TRUST, SERIES 20__-_
                                    By ______________________, as Trustee

                                    By _________________________________________
                                                 Authorized Signatory

This is one of the Class M-[] Certificates
referenced in the within-mentioned Agreement

By _________________________________
         Authorized Officer of
        _________________________, as Trustee

                                      B-4

<PAGE>

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
_____________________________ the within Origen Residential Pass-Through
Certificate and does hereby irrevocably constitute and appoint
_____________________________ Attorney to transfer the said certificate on the
Certificate Register maintained by the Trustee, with full power of substitution
in the premises.

Dated:                              By _________________________________________
                                          Signature

                                      B-5

<PAGE>

                                   EXHIBIT C-1

                          FORM OF CLASS B-1 CERTIFICATE

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE.

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
CERTIFICATES, THE CLASS M-1 CERTIFICATES AND THE CLASS M-2 CERTIFICATES AS
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE MAY NOT BE RESOLD OR TRANSFERRED EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 9.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN.

Class B-1                                   No.
(Subordinate)

Cut-off Date:  as defined in the            Pass-Through Rate: Lesser of __% per
Pooling and Servicing Agreement             annum and the Weighted Average Net
dated as of _____________, 20__             Contract Rate

                                            Denomination: $_______

First Distribution Date:
__________, 20__                            Aggregate Denomination of
                                            All Class B-1 Certificates:
                                            $_____________

Servicer:
Origen Servicing, Inc.                      Maturity Date: [_________]
                                            (or if such day is not a Business
                                            Day, then the next succeeding
                                            Business Day)

                                            CUSIP: ________

ORIGEN RESIDENTIAL PASS-THROUGH CERTIFICATES, SERIES 20__-_, CLASS B-1
(SUBORDINATE)

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR AN INTEREST IN THE
DEPOSITOR, THE ORIGINATOR, THE SELLER, THE TRUSTEE OR ANY AFFILIATE THEREOF,
EXCEPT TO THE EXTENT SET FORTH IN THE AGREEMENT.

                                      C-1

<PAGE>

This certifies that Cede & Co. is the registered owner of the undivided
Percentage Interest represented by the original principal amount set forth above
in Origen Residential Pass-Through Certificates Trust, Series 20__-_ (the
"Trust"), which includes among its assets a pool of manufactured housing
installment sale contracts and installment loan agreements (including, without
limitation, all related security interests and any and all rights to receive
payments which are due pursuant thereto after the applicable Cut-off Date or
Subsequent Cut-off Date). The Trust has been created pursuant to a Pooling and
Servicing Agreement (the "Agreement"), dated as of _______________, 20__, among
Origen Residential Securities, Inc., as depositor, Origen Financial, L.L.C., as
originator (the "Originator"), Origen Servicing, Inc., as seller and servicer
(in such capacities, the "Seller" and the "Servicer"),
____________________________, as backup servicer (the "Backup Servicer") and
_______________________________, as Trustee of the Trust (the "Trustee"). This
Certificate is one of the Certificates described in the Agreement and is issued
pursuant and subject to the Agreement. By acceptance of this Certificate the
holder assents to and becomes bound by the Agreement. To the extent not defined
herein, all capitalized terms have the meanings assigned to such terms in the
Agreement.

The Agreement contemplates, subject to its terms, payment on the fifteenth day
(or if such day is not a Business Day, the next succeeding Business Day) (the
"Distribution Date") of each month commencing in __________ 20__ so long as the
Agreement has not been terminated, by check (or by wire transfer pursuant to
instructions delivered to the Trustee at least 10 days prior to such
Distribution Date) to the registered Certificateholder at the address appearing
on the Certificate Register as of the last Business Day of the calendar month
immediately preceding such Distribution Date, in an amount equal to the
Certificateholder's Percentage Interest of the Class B-1 Distribution Amount for
such Distribution Date. The Maturity Date of this Certificate is date listed as
such on the first page hereof.

The Certificateholder, by its acceptance of this Certificate, agrees that it
will look solely to the funds in the Distribution Account to the extent
available for distribution to the Certificateholder as provided in the Agreement
for payment hereunder and that the Trustee is not personally liable to the
Certificateholder for any amounts payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement. By acceptance of this Certificate, the
Certificateholder agrees to disclosure of his, her or its name and address to
other Certificateholders under the conditions specified in the Agreement.

This Certificate does not purport to summarize the Agreement and reference is
made to the Agreement for information with respect to the interests, rights,
benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and immunities of the Trustee. Copies of the Agreement and all amendments
thereto will be provided to any Certificateholder free of charge upon a written
request to the Trustee.

                                      C-2

<PAGE>

As provided in the Agreement and subject to the limitations set forth therein,
the transfer of this Certificate is registrable in the Certificate Register of
the Certificate Registrar upon surrender of this Certificate for registration of
transfer at the Corporate Trust Office, accompanied by a written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly
executed by the holder thereof or his or her attorney duly authorized in
writing, and thereupon one or more new Certificates evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC") to Issuer or its agent
for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

The Depositor, the Originator, the Servicer, the Trustee, the Paying Agent and
the Certificate Registrar and any agent of the Depositor, the Originator, the
Seller, the Servicer, the Trustee, the Paying Agent, the Backup Servicer or the
Certificate Registrar may treat the person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Originator, the Seller, the Servicer, the Trustee, the Paying Agent, the
Certificate Registrar, the Backup Servicer nor any such agent shall be affected
by any notice to the contrary.

                                      C-3

<PAGE>

IN WITNESS WHEREOF, Origen Residential Pass-Through Certificates Trust, Series
20__-_ has caused this Certificate to be duly executed by the manual signature
of a duly authorized officer of the Trustee.

                                    Dated:
                                    ORIGEN RESIDENTIAL PASS-THROUGH
                                    CERTIFICATES TRUST, SERIES 20__-_
                                    By ________________________, as Trustee

                                    By _________________________________________
                                                   Authorized Officer

This is one of the Class B-1 Certificates
referenced in the within-mentioned Agreement

By ________________________________
         Authorized Officer of
         ______________________________, as Trustee

                                      C-4

<PAGE>

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
______________________________ the within Origen Residential Pass-Through
Certificate and does hereby irrevocably constitute and appoint
______________________________ Attorney to transfer the said certificate on the
Certificate Register maintained by the Trustee, with full power of substitution
in the premises.

Dated:                              By _________________________________________
                                          Signature

                                      C-5
<PAGE>

                                   EXHIBIT C-2

                           FORM OF CLASS X CERTIFICATE

                                   [RESERVED]

                                      C-2-1
<PAGE>

                                   EXHIBIT C-3

                           FORM OF CLASS R CERTIFICATE

                                   [RESERVED]

                                      C-3-1
<PAGE>

                                    EXHIBIT D

                               FORM OF ASSIGNMENT

      In accordance with the Pooling and Servicing Agreement (the "Agreement"),
dated as of [______________], among Origen Residential Securities, Inc., as
depositor, Origen Financial L.L.C., as Originator, Origen Servicing, Inc., as
servicer and seller, [[______________], as backup servicer], and
[________________], as Trustee of the Trust (the "Trustee"), the Seller does
hereby transfer, assign, set over and otherwise convey to the Trustee (i) all
the right, title and interest of the Seller in and to the Assets, including,
without limitation, all right, title and interest in and to the Collateral
Security and all rights to receive payments on or with respect to the Assets,
(ii) all rights under every Hazard Insurance Policy relating to a Manufactured
Home or a Mortgaged Property securing an Asset for the benefit of the creditor
of such Asset, (iii) all rights of the Seller under the Transfer Agreement, (iv)
the proceeds from the Errors and Omissions Protection Policy and all rights
under any blanket hazard insurance policy to the extent they relate to the
Assets, (v) all documents contained in the Asset Files, (vi) amounts on deposit
in the Pre-Funding Account, and (vii) all proceeds and products in any way
derived from any of the foregoing. Capitalized terms used herein but not defined
herein have the meanings assigned to them in the Agreement.

      This Assignment is made pursuant to and upon the representation and
warranties on the part of the undersigned contained in Article III of the
Agreement and no others.

      IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly
executed this ___ day of [______________].

                                             ORIGEN LOAN SALES COMPANY, LLC

                                             By ____________________________
                                                [Name]
                                                [Title]

                                      D-1
<PAGE>

                                    EXHIBIT E

                                   [RESERVED]

                                       E-1
<PAGE>

                                    EXHIBIT F

                                   [RESERVED]

                                      F-1
<PAGE>

                                    EXHIBIT G

                        FORM OF TRUSTEE'S ACKNOWLEDGMENT

      [____________________________], a [_____________________], acting as
trustee (the "Trustee") of the trust created pursuant to the Pooling and
Servicing Agreement (the "Agreement"), dated as of [__________________], among
Origen Residential Securities, Inc., as depositor, Origen Financial L.L.C., as
Originator, Origen Servicing, Inc., as servicer and seller,
[__________________], as backup servicer, and the Trustee (the "Pooling and
Servicing Agreement") (all capitalized terms used herein without definition
having the respective meanings specified in the Pooling and Servicing
Agreement), acknowledges, pursuant to Section 2.01 of the Pooling and Servicing
Agreement, that the Trustee has received and holds in trust thereunder the
following (i) all right, title and interest in and to the manufactured housing
contracts identified on the List of Contracts the Mortgage Loans identified on
and the Mortgage Loan Schedule [delivered pursuant to Sections 2.02(1) and (2)
of the Pooling and Servicing Agreement] [delivered with the Subsequent Transfer
Instrument of even date herewith] (the "Assets"), including, without limitation,
all right, title and interest in and to the Collateral Security and all rights
to receive payments on or with respect to the Assets, (ii) all rights of the
Seller under the Transfer Agreement, (iii) all documents contained in the Asset
Files, subject to any exceptions noted on Schedule A to Exhibit H to the Pooling
and Servicing Agreement, (iv) amounts on deposit in the Pre-Funding Account and
(v) all proceeds and products in any way derived from any of the foregoing.

      The Trustee further acknowledges that the Trustee, directly or through a
custodian, will hold said rights, interests and proceeds in trust for the use
and benefit of all Certificateholders.

      IN WITNESS WHEREOF, [__________________], as Trustee, has caused this
acknowledgment to be executed by its duly authorized officer as of the ___ day
of [__________________].

                                        [____________________],
                                        as Trustee

                                        By __________________________
                                           Name:
                                           Title:

                                      G-1
<PAGE>

                                    EXHIBIT H

                       FORM OF CUSTODIAN'S ACKNOWLEDGMENT

      [__________________], a [__________________] (the "Custodian") acting as
Custodian under the Pooling and Servicing Agreement (the "Agreement"), dated as
of [__________________], among Origen Residential Securities, Inc., as
depositor, Origen Financial L.L.C., as Originator, Origen Servicing Inc., as
servicer and seller, [__________________], as backup servicer, and the Trustee,
pursuant to which the Custodian holds on behalf of the Trustee the "Asset
Files," as described in the Pooling and Servicing Agreement, hereby acknowledges
receipt of such Asset Files, except as noted on the exception list attached
hereto as Schedule A. The Custodian has reviewed the Mortgage Loan Files, the
Contract Files, the Land-and-Home Contract Files in accordance with the
provisions of Section 2.04(b) of the Pooling and Servicing Agreement and hereby
certifies that the Mortgage Loan Files, the Contract Files, the Land-and-Home
Contract Files contain the documents described in the definitions of the
"Mortgage Loan File," "Contract File" and "Land-and-Home Contract File", subject
to the exceptions set forth on the attached Schedule A. The Custodian will not
otherwise review the Assets and Asset Files for compliance with the terms of the
Pooling and Servicing Agreement.

      IN WITNESS WHEREOF, [__________________] has caused this acknowledgment to
be executed by its duly authorized officer as of the ___ day of
[__________________].

                                        [____________________],
                                        as Custodian

                                        By __________________________
                                           Its ______________________

                                       H-1
<PAGE>

                                    EXHIBIT I

                    FORM OF CERTIFICATE OF SERVICING OFFICER

                             ORIGEN SERVICING, INC.

      The undersigned certifies that he is a [title] of Origen Servicing, Inc.,
a Delaware corporation (the "Company"), and that as such he is duly authorized
to execute and deliver this certificate on behalf of the Company pursuant to
Section 6.02 of the Pooling and Servicing Agreement (the "Agreement"), dated as
of [__________________], among Origen Residential Securities, Inc., as
depositor, Origen Financial L.L.C., as Originator, Origen Servicing, Inc., as
servicer and seller (in such capacities, the "Servicer" and the "Seller,"
respectively), [__________________], as backup servicer, and
[__________________], as trustee (the "Trustee") (all capitalized terms used
herein without definition having the respective meanings specified in the
Agreement), and further certifies that:

      1. The Monthly Report for the period from _____________ to ____________
attached to this certificate is complete and accurate in accordance with the
requirements of Sections 6.01 and 6.02 of the Agreement; and

      2. As of the date hereof, no Event of Termination or event that with
notice or lapse of time or both would become an Event of Termination has
occurred.

      IN WITNESS WHEREOF, I have affixed hereunto my signature the ___ day of
_________, ____.

                                    ORIGEN SERVICING, INC.

                                    By _______________________
                                       [Name]
                                       [Title]

                                       I-1
<PAGE>

                                    EXHIBIT J

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                      DATE

Origen Residential Securities, Inc.
27777 South Franklin Road
Southfield, Michigan  48034

[Trustee]
[Trustee Address]

              Re: Origen Residential Pass-Trough Certificates, Series 200[ ]-[ ]

Ladies and Gentlemen:

      In connection with our acquisition of the above-captioned Certificates, we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor and the Seller concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificates, (d) we are not an employee benefit plan
that is subject to the Employee Retirement Income Security Act of 1974, as
amended, or a plan that is subject to Section 4975 of the Internal Revenue Code
of 1986, as amended, nor are we acting on behalf of or investing plan assets of
any such plan, (e) we are acquiring the Certificates for investment for our own
account and not with a view to any distribution of such Certificates (but
without prejudice to our right at all times to sell or otherwise dispose of the
Certificates in accordance with clause (g) below), (f) we have not offered or
sold any Certificates to, or solicited offers to buy any Certificates from, any
person, or otherwise approached or negotiated with any person with respect
thereto, or taken any other action which would result in a violation of Section
5 of the Act, and (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt from
such registration requirements, and if requested, we will at our expense provide
an opinion of counsel satisfactory to the addressees of this Certificate that
such sale, transfer or other disposition may be made pursuant to an exemption
from the Act, (2) the purchaser or transferee of such Certificate has executed
and delivered to you a certificate to substantially the same effect as this
certificate, and (3) the purchaser or transferee has otherwise complied with any
conditions for transfer set forth in the Pooling Agreement.

                                                        Very truly yours,

                                       J-1
<PAGE>

                                       [NAME OF TRANSFEREE]

                                       By: ______________________________
                                             Authorized Officer

                                      J-2
<PAGE>

                            FORM OF RULE 144A LETTER

                                     [DATE]

Origen Residential Securities, Inc.
27777 South Franklin Road
Southfield, Michigan  48034

[Trustee]
[Trustee Address]

                      Re: Origen Residential Pass-Through Certificates,
                          Series 200[ ]-[ ]

Ladies and Gentlemen:

      In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have had the
opportunity to ask questions of and receive answers from the Depositor and the
Seller concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (c) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as
amended, nor are we acting on behalf of or investing plan assets of any such
plan, (d) we have not, nor has anyone acting on our behalf offered, transferred,
pledged, sold or otherwise disposed of the Certificates, any interest in the
Certificates or any other similar security to, or solicited any offer to buy or
accept a transfer, pledge or other disposition of the Certificates, any interest
in the Certificates or any other similar security from, or otherwise approached
or negotiated with respect to the Certificates, any interest in the Certificates
or any other similar security with, any person in any manner, or made any
general solicitation by means of general advertising or in any other manner, or
taken any other action, that would constitute a distribution of the Certificates
under the Securities Act or that would render the disposition of the
Certificates a violation of Section 5 of the Securities Act or require
registration pursuant thereto, nor will act, nor has authorized or will
authorize any person to act, in such manner with respect to the Certificates,
(e) we are a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act and have completed either of the forms of
certification to that effect attached hereto as Annex 1 or Annex 2. We are aware
that the sale to us is being made in reliance on Rule 144A. We are acquiring the
Certificates for our own account or for resale pursuant to Rule 144A and
further, understand that such Certificates may be resold, pledged or transferred
only (i) to a person reasonably believed to be a qualified institutional buyer
that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that the

                                      J-3
<PAGE>

resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the Securities Act.

                                        Very truly yours,

                                        [NAME OF TRANSFEREE]

                                        By: ________________________
                                             Authorized Officer

                                      J-4
<PAGE>

                                                            ANNEX 1 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

      The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

      i. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

      ii. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $_______ 1 in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A and (ii)
the Buyer satisfies the criteria in the category marked below.

                  ___   Corporation, etc. The Buyer is a corporation (other than
            a bank, savings and loan association or similar institution),
            Massachusetts or similar business trust, partnership, or charitable
            organization described in Section 501(c)(3) of the InternalRevenue
            Code of 1986, as amended.

                  ___   Bank. The Buyer (a) is a national bank or banking
            institution organized under the laws of any State, territory or the
            District of Columbia, the business of which is substantially
            confined to banking and is supervised by the State or territorial
            banking commission or similar official or is a foreign bank or
            equivalent institution, and (b) has an audited net worth of at least
            $25,000,000 as demonstrated in its latest annual financial
            statements, a copy of which is attached hereto.

                  ___   Savings and Loan. The Buyer (a) is a savings and loan
            association, building and loan association, cooperative bank,
            homestead association or similar institution, which is supervised
            and examined by a State or Federal authority having supervision over
            any such institutions or is a foreign savings and loan association
            or equivalent institution and (b) has an audited net worth of at
            least $25,000,000 as demonstrated in its latest annual financial
            statements, a copy of which is attached hereto.

---------------------
      1 Buyer must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Buyer is a dealer, and, in that case, Buyer
must own and/or invest on a discretionary basis at least $10,000,000 in
securities

                                      J-5
<PAGE>

                  ___   Broker-dealer. The Buyer is a dealer registered pursuant
            to Section 15 of the Securities Exchange Act of 1934.

                  ___   Insurance Company. The Buyer is an insurance company
            whose primary and predominant business activity is the writing of
            insurance or the reinsuring of risks underwritten by insurance
            companies and which is subject to supervision by the insurance
            commissioner or a similar official or agency of a State, territory
            or the District of Columbia.

                  ___   State or Local Plan. The Buyer is a plan established and
            maintained by a State, its political subdivisions, or any agency or
            instrumentality of the State or its political subdivisions, for the
            benefit of its employees.

                  ___   ERISA Plan. The Buyer is an employee benefit plan within
            the meaning of Title I of the Employee Retirement Income Security
            Act of 1974.

                  ___   Investment Advisor. The Buyer is an investment advisor
            registered under the Investment Advisors Act of 1940.

                  ___   Small Business Investment Company. Buyer is a small
            business investment company licensed by the U.S. Small Business
            Administration under Section 301(c) or (d) of the Small Business
            Investment Act of 1958.

                  ___   Business Development Company. Buyer is a business
            development company as defined in Section 202(a)(22) of the
            Investment Advisors Act of 1940.

      iii. The term "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit, (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) currency, interest rate and commodity
swaps.

      iv. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

      v. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

                                       J-6
<PAGE>

      vi. Until the date of purchase of the Rule 144A Securities, the Buyer will
notify each of the parties to which this certification is made of any changes in
the information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                                ________________________________
                                                Print Name of Buyer

                                                By:_____________________________
                                                    Name:
                                                    Title:

                                                Date:___________________________

                                       J-7
<PAGE>

                                                            ANNEX 2 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That are Registered Investment Companies]

      The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

      1. As indicated below, the undersigned is the President, Chief Financial
Officer or Senior Vice President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

      2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

            ___ The Buyer owned $______ in securities (other than the excluded
            securities referred to below) as of the end of the Buyer's most
            recent fiscal year (such amount being calculated in accordance with
            Rule 144A).

            ___ The Buyer is part of a Family of Investment Companies which
            owned in the aggregate $______ in securities (other than the
            excluded securities referred to below) as of the end of the Buyer's
            most recent fiscal year (such amount being calculated in accordance
            with Rule 144A).

      3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

      4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities

                                       J-8
<PAGE>

owned but subject to a repurchase agreement and (vii) currency, interest rate
and commodity swaps.

      5. The Buyer is familiar with Rule 144A and under-stands that the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates are relying and will continue to rely on the statements made herein
because one or more sales to the Buyer will be in reliance on Rule 144A. In
addition, the Buyer will only purchase for the Buyer's own account.

      6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                           ______________________________
                                           Print Name of Buyer or Adviser

                                           By: __________________________
                                                Name:
                                                Title:

                                           IF AN ADVISER:

                                           ______________________________
                                           Print Name of Buyer

                                           Date: _________________________

                                       J-9
<PAGE>

                                    EXHIBIT K

                         Form of Transferor Certificate

                                                              __________________
                                                                            Date

Origen Residential Securities, Inc.
27777 South Franklin Road
Southfield, Michigan  48034

[Trustee]
[Trustee Address]

                        Re:   Origen Residential Pass-Trough Certificates,
                              Series 200[ ]-[ ]

Ladies and Gentlemen:

      In connection with our disposition of the above Certificates we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act and (c)
to the extent we are disposing of a Class R Certificate, we have no knowledge
the Transferee is not a Permitted Transferee.

                                                   Very truly yours,

                                                   _________________________
                                                   Print Name of Transferor

                                                   By: _____________________
                                                        Authorized Officer

                                       K-1
<PAGE>

                                   EXHIBIT L-1

                                   [RESERVED]

                                      L-1-1
<PAGE>
                                   EXHIBIT L-2

                                   [RESERVED]

                                      L-2-1
<PAGE>

                                    EXHIBIT M

                       FORM OF ERISA REPRESENTATION LETTER

[___________________]
[Address]

            Re:   Origen Residential Pass-Through Certificates, Series
                  200[__]-[__] Class [R][X] Certificates

Ladies and Gentlemen:

      Reference is made to the pooling and servicing agreement, dated as of
February 1, 2001 (the "Pooling and Servicing Agreement") by and among Origen
Residential Securities, Inc., as Depositor, Origen Financial L.L.C., as
Originator, and Origen Servicing, Inc., as servicer and seller,
[____________________], as backup servicer, and [_____________________], as
trustee (the "Trustee"), pursuant to which the [Origen ___________ Residential
Pass-Through Certificates, Series 200[__]-[__], Class [R][X] (the
"ERISA-Restricted Certificates") were issued. Capitalized terms used herein but
not defined shall have the meanings given them in the Pooling and Servicing
Agreement.

      The undersigned intends to acquire the ERISA-Restricted Certificates
referenced above. The undersigned acknowledges that the ERISA-Restricted
Certificates may not be transferred except in accordance with the transfer
provisions of the Pooling and Servicing Agreement.

      Pursuant to Section 9.02 of the Pooling and Servicing Agreement, the
undersigned hereby represents and warrants:

            [ ] that it is not an employee benefit plan or arrangement subject
      to Section 406 of ERISA, or a plan subject to Section 4975 of the Code,
      nor a person acting on behalf of any such plan or arrangement nor using
      the assets of any such plan or arrangement to effect the transfer of the
      ERISA-Restricted Certificates.

            [ ] that it is an employee benefit plan subject to ERISA, or a plan
      or arrangement subject to Section 4975 of the Code, or a trustee of any
      such plan or any other person acting on behalf of any such plan or
      arrangement or using such plan's or arrangement's assets; however, the
      undersigned has provided an Opinion of Counsel satisfactory to the Trustee
      to the effect that the purchase or holding of the ERISA-Restricted
      Certificates by the undersigned will not result in the assets of the Trust
      being deemed to be "plan assets" and subject to the prohibited transaction
      provisions of ERISA and the Code and will not subject the Trustee to any
      obligation or liability (including obligations or liabilities under ERISA
      or Section 4975 of the Code) in addition to those undertaken in the
      Pooling and Servicing Agreement.

                                       M-1
<PAGE>

                                             ______________________________

                                             By: __________________________
                                                   Name:
                                                   Title:

                                      M-2
<PAGE>

                                    EXHIBIT N

                 AFFIDAVIT OF TRANSFER OF RESIDUAL CERTIFICATES
                           PURSUANT TO SECTION 9.02(d)

            ORIGEN ___________ RESIDENTIAL PASS-THROUGH CERTIFICATES
                               SERIES 200[__]-[__]

STATE OF   )
           )ss.:
COUNTY OF  )

      The undersigned, being first duly sworn, deposes and says as follows:

      1. The undersigned is an officer of _______, the proposed Transferee of an
Ownership Interest in a Class R Certificate (the "Certificate") issued pursuant
to the Pooling Agreement, (the "Agreement"), relating to the above-referenced
Series, among Origen Residential Securities, Inc., as Depositor (the
"Depositor"), Origen Financial L.L.C., as Originator, Origen Servicing, Inc., as
Servicer and as Seller, [_______________], as backup servicer, and
[_________________], as Trustee (the "Trustee"). Capitalized terms used, but not
defined herein or in Exhibit 1 hereto, shall have the meanings ascribed to such
terms in the Agreement. The Transferee has authorized the undersigned to make
this affidavit on behalf of the Transferee.

      2. The Transferee is, as of the date hereof, and will be, as of the date
of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate for its own account.

      3. The Transferee has been advised of, and understands that (i) a tax will
be imposed on Transfers of the Certificate to Persons that are not Permitted
Transferees; (ii) such tax will be imposed on the transferor; and (iii) the
Person otherwise liable for the tax shall be relieved of liability for the tax
if the subsequent Transferee furnished to such Person an affidavit that such
subsequent Transferee is a Permitted Transferee and, at the time of Transfer,
such Person does not have actual knowledge that the affidavit is false.

      4. The Transferee has been advised of, and understands that a tax will be
imposed on a "pass-through entity" holding the Certificate if at any time during
the taxable year of the pass-through entity a Person that is not a Permitted
Transferee is the record holder of an interest in such entity. The Transferee
understands that such tax will not be imposed for any period with respect to
which the record holder furnishes to the pass-through entity an affidavit that
such record holder is a Permitted Transferee and the pass-through entity does
not have actual knowledge that such affidavit is false. (For this purpose, a
"pass-through entity" includes a regulated investment company, a real estate
investment trust or common 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.)

                                       N-1
<PAGE>

      5. The Transferee has reviewed the provisions of Section 9.02(d) of the
Agreement (attached hereto as Exhibit 2 and incorporated herein by reference)
and understands the legal consequences of the acquisition of an Ownership
Interest in the Certificate including, without limitation, the restrictions on
subsequent Transfers and the provisions regarding voiding the Transfer and
mandatory sales. The Transferee expressly agrees to be bound by and to abide by
the provisions of Section 9.02(d) of the Agreement and the restrictions noted on
the face of the Certificate. The Transferee understands and agrees that any
breach of any of the representations included herein shall render the Transfer
to the Transferee contemplated hereby null and void.

      6. The Transferee agrees to require a Transfer Affidavit from any Person
to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit K to the Agreement (a "Transferor Certificate") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

      7. The Transferee does not have the intention to impede the assessment or
collection of any tax legally required to be paid with respect to the
Certificate.

      8. The Transferee's taxpayer identification number is .

      9. The Transferee is a U.S. Person as defined in Code Section 7701(a)(30).

      10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of proposed Treasury regulations
promulgated pursuant to the Code and that the transferor of a noneconomic
residual interest will remain liable for any taxes due with respect to the
income on such residual interest, unless no significant purpose of the transfer
was to impede the assessment or collection of tax.

      The Transferee is not an employee benefit plan that is subject to ERISA or
a plan that is subject to Section 4975 of the Code, nor is it acting on behalf
of or investing plan assets of such a plan.

      The Transferee has provided financial statements or other financial
information requested by the Transferor in connection with the transfer of the
Class R Certificates to permit the Transferor to assess the financial capability
of the Transferee to pay such taxes.

                                      * * *

                                      N-2
<PAGE>

      IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this_______ day of ________, 20 ___.

                                           [NAME OF TRANSFEREE]

                                           By: _____________________________
                                                Name:
                                                Title:

[Corporate Seal]

ATTEST:

______________________________
[Assistant] Secretary

      Personally appeared before me the above-named_________ , known or proved
to me to be the same person who executed the foregoing instrument and to be
the___________ of the Transferee, and acknowledged that he executed the same as
his free act and deed and the free act and deed of the Transferee.

      Subscribed and sworn before me this___ day of_____ ,20__ .

                                           _________________________________
                                                  NOTARY PUBLIC

                                           My Commission expires the____day
                                           of________, 20__ .

                                       N-3
<PAGE>

                             EXHIBIT 1 to EXHIBIT N

                               Certain Definitions

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

      "Permitted Transferee" means any Person other than (i) the United States,
any State or any political subdivision thereof or any agency or instrumentality
of any of the foregoing, (ii) a foreign government, international organization
or any agency or instrumentality of either of the foregoing, (iii) an
organization which is exempt from tax imposed by Chapter 1 of the Code
(including the tax imposed by section 511 of the Code on unrelated business
taxable income) (except certain farmers' cooperatives described in Code section
521) on any excess inclusions (as defined in Section 860E(c)(1)) with respect to
any Class R Certificate, (iv) rural electric and telephone cooperatives
described in Code section 1381(a)(2)(C), (v) a Person that is not a citizen or
resident of the United States, a corporation, partnership or other entity
created or organized in or under the laws of the United States, any state
thereof or the District of Columbia, or an estate whose income from sources
without the United States is includible in gross income for United States
federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States, or a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States Persons have the authority to control
all substantial decisions of the trust, (vi) an "electing large partnership"
within the meaning of Section 775 of the Code, and (vii) any other Person so
designated by the Trustee based on an Opinion of Counsel to the effect that any
transfer to such Person may cause the Trust to fail to qualify as a REMIC at any
time the Certificates are outstanding. The terms "United States", "State" and
"international organization" shall have the meanings set forth in Code section
7701 or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof if all of its activities are subject to tax and, with the exception of
the Freddie Mac, a majority of its board of directors is not selected by such
governmental unit.

      "Person" means 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.

<PAGE>

                             EXHIBIT 2 to EXHIBIT N

                        Section 9.02(d) of the Agreement

      (d)   Except with respect to the initial transfer of the Class X and Class
            R Certificates (together, the "Private Certificates") by the
            Depositor to the Seller, no transfer, sale, pledge or other
            disposition of any Private Certificate shall be made unless (x)
            except to the extent such transfer is made to an entity the equity
            of which is owned by the Seller or an affiliate of the Seller, and
            (y) such disposition is exempt from the registration requirements of
            the Securities Act of 1933, as amended (the "1933 Act"), and any
            applicable state securities laws or is made in accordance with the
            1933 Act and laws. In the event of any such transfer, other than the
            transfer of the Tax Matters Person Residual Interest (i) unless such
            transfer is made in reliance upon Rule 144A (as evidenced by the
            investment letter delivered to the Trustee, in substantially the
            form attached hereto as Exhibit J) under the 1933 Act, the Trustee
            and the Depositor shall require a written Opinion of Counsel (which
            may be in-house counsel) acceptable to and in form reasonably
            satisfactory to the Trustee and the Depositor that such transfer may
            be made pursuant to an exemption, describing the applicable
            exemption and the basis therefor, from the 1933 Act or is being made
            pursuant to the 1933 Act, which Opinion of Counsel shall not be an
            expense of the Trustee or the Depositor or (ii) the Trustee shall
            require the transferor to execute a transferor certificate (in
            substantially the form attached hereto as Exhibit K) and the
            transferee to execute an investment letter (in substantially the
            form attached hereto as Exhibit J) acceptable to and in form
            reasonably satisfactory to the Depositor and the Trustee certifying
            to the Depositor and the Trustee the facts surrounding such
            transfer, which investment letter shall not be an expense of the
            Trustee or the Depositor. The Holder of a Private Certificate
            desiring to effect such transfer shall, and does hereby agree to,
            indemnify the Trustee and the Depositor against any liability that
            may result if the transfer is not so exempt or is not made in
            accordance with such federal and state laws.

      No transfer of an ERISA-Restricted Certificate shall be made unless the
Trustee shall have received either (i) a representation from the transferee of
such Certificate, acceptable to and in form satisfactory to the Trustee and the
Depositor, (such requirement is satisfied by the Trustee's receipt of a
representation letter from the transferee substantially in the form of Exhibit S
hereto, as appropriate), to the effect that such transferee is not an employee
benefit plan or arrangement subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code, nor a person acting on behalf of any such plan or
arrangement nor using the assets of any such plan or arrangement to effect such
transfer or (ii) in the case of an ERISA Restricted Certificate that has been
the subject of an ERISA-Qualifying Underwriting, if the purchaser is an
insurance company, a representation that the purchaser is an insurance company
which is purchasing such Certificates with funds contained in an "insurance
company general account" (as such term is defined in Section V(e) of Prohibited
Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the purchase and
holding of such Certificates are covered under Sections I and III of PTCE

<PAGE>

95-60 or (iii) in the case of any such ERISA-Restricted Certificate presented
for registration in the name of an employee benefit plan subject to ERISA or a
plan or arrangement subject to Section 4975 of the Code (or comparable
provisions of any subsequent enactments), or a trustee of any such plan or any
other person acting on behalf of any such plan or arrangement or using such
plan's or arrangement's assets, an Opinion of Counsel in form and substance
satisfactory to the Trustee which Opinion of Counsel shall not be an expense of
either the Trustee or the Trust, addressed to the Trustee, to the effect that
the purchase or holding of such ERISA-Restricted Certificate will not result in
the assets of the Trust being deemed to be "plan assets" and subject to the
prohibited transaction provisions of ERISA and the Code and will not subject the
Trustee to any obligation in addition to those expressly undertaken in this
Agreement or to any liability. For purposes of clause (i) and (ii) of the
preceding sentence, such representation shall be deemed to have been made to the
Trustee by the transferee's acceptance of an ERISA-Restricted Certificate (or
the acceptance by a Certificate Owner of the beneficial interest in any such
Class of ERISA-Restricted Certificates) in book-entry form unless the Trustee
shall have received from the transferee an alternative representation acceptable
in form and substance to the Depositor or an Opinion of Counsel described in
clause (iii). Notwithstanding anything else to the contrary herein, any
purported transfer of an ERISA-Restricted Certificate to or on behalf of an
employee benefit plan subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code without the delivery to the Trustee of an Opinion of
Counsel in form and substance satisfactory to the Trustee as described above
shall be void and of no effect. The Trustee shall be under no liability to any
Person for any registration of transfer of any ERISA-Restricted Certificate that
is in fact not permitted by this Section 9.02(d) or for making any payments due
on such Certificate to the Holder thereof or taking any other action with
respect to such Holder under the provisions of this Agreement so long as the
transfer was registered by the Trustee in accordance with the foregoing
requirements. The Trustee shall be entitled, but not obligated, to recover from
any Holder of any ERISA-Restricted Certificate that was in fact an employee
benefit plan subject to Section 406 of ERISA or a plan subject to Section 4975
of the Code or a Person acting on behalf of any such plan at the time it became
a Holder or, at such subsequent time as it became such a plan or Person acting
on behalf of such a plan, all payments made on such ERISA-Restricted Certificate
at and after either such time. Any such payments so recovered by the Trustee
shall be paid and delivered by the Trustee to the last preceding Holder of such
Certificate that is not such a plan or Person acting on behalf of a plan.

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

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

            (ii) No Person shall acquire an Ownership Interest in a Class R
      Certificate unless such Ownership Interest is a pro rata undivided
      interest.

<PAGE>

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

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

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

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

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

<PAGE>

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

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

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